Hemant Kashyap, Author at Inc42 Media News & Analysis on India’s Tech & Startup Economy Thu, 07 Sep 2023 08:16:00 +0000 en hourly 1 https://wordpress.org/?v=6.0.1 https://inc42.com/wp-content/uploads/2021/09/cropped-inc42-favicon-1-32x32.png Hemant Kashyap, Author at Inc42 Media 32 32 Biomaterials Startup altM Raises Funding To Cut Carbon Footprints In Industrial Supply Chains https://inc42.com/buzz/biomaterials-startup-altm-funding-cut-carbon-footprints-industrial-supply-chains/ Thu, 07 Sep 2023 08:16:00 +0000 https://inc42.com/?p=414543 Biomaterials startup altM has secured a $3.5 Mn seed funding round led by Omnivore, with participation from Theia Ventures, Thai…]]>

Biomaterials startup altM has secured a $3.5 Mn seed funding round led by Omnivore, with participation from Theia Ventures, Thai Wah Ventures, Sanjiv Rangrass, Neha Mudaliar, Maninder Gulati (OYO), Mirik Gogri (Spectrum Impact) and Paula Mariwala (Aureolis Ventures).

altM is Omnivore’s fourth investment under its OmniX Bio initiative, which was set up in 2021 to back early stage agrifood life science startups.

The startup, founded in 2022 by Apoorv Garg and Yugal Raj Jain, both ex-Tesla employees, aims to develop and manufacture sustainable materials from agricultural residue to help companies reduce their carbon footprints and increase circularity in their supply chains.

Apoorv Garg, CEO and cofounder at altM, said, “The scale-up of technology from a laboratory bench to commercial production is not a trivial undertaking. Production scale-up is often the death valley for biotech startups. Our focus on go-to-market strategy, execution, and production scale-up will be the differentiator to most endeavours we see in the world of biomaterials today.”

altM uses lignocellulosic agricultural residues as their raw material to produce advanced materials as alternatives to unsustainable incumbents. Lignocellulosic residue refers to dry plant residue and includes wheat, rice, barley straw, corn stover, sorghum stalks, coconut husks, sugarcane bagasse and banana leaves, among others.

Given its sustainability potential and functional properties, lignocellulosic residue can be used to develop materials such as paper, biofuels and polymers, among other classes of usable chemicals.

Mark Kahn, managing partner at Omnivore, said, “With Apoorv and Yugal’s background in manufacturing excellence, altM’s entry into industrial alternative materials will hasten the global shift towards sustainability and circularity. Omnivore is very excited to be a part of their journey as we kick off our new fund.”

According to government statistics, India has more than 6,000 biotech startups. Earlier this year, Minister of State for Science and Technology Jitendra Singh termed biotech startups crucial to shaping India’s future economy. 

Singh added that the country’s bioeconomy has witnessed significant growth in the past few years, increasing from $8 Bn in 2014 to $100 Bn currently. He also expressed confidence that the sector will continue to flourish and will reach the $150 Bn mark by 2025.

The Centre has also undertaken a slew of measures to strengthen India’s biotech sector and promote biotech startups.

Last year, the government launched a single-window national portal for startups and researchers seeking regulatory clearance for biological research. In August 2022, the government also announced 75 ‘Amrit’ grants for collaborative biotech initiatives involving startups and academia. 

Besides, BIRAC also offers grants of up to INR 50 Lakhs, under the BIG Scheme, for budding biotech startups to validate their ideas, develop prototypes and establish proof of concept. 

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AI/ML Will Deliver Value Across Insurance Value Chain: Debasish Panda https://inc42.com/buzz/ai-ml-deliver-value-insurance-value-chain-debasish-panda/ Thu, 07 Sep 2023 04:59:15 +0000 https://inc42.com/?p=414502 According to the Insurance Regulatory and Development Authority of India (IRDAI) chairperson Debasish Panda, technologies such as artificial intelligence (AI)…]]>

According to the Insurance Regulatory and Development Authority of India (IRDAI) chairperson Debasish Panda, technologies such as artificial intelligence (AI) and machine learning (ML) within the insurtech sector will be harnessed throughout the insurance value chain.

“AI algorithms combined with machine learning models and predictive analysis will be leveraged to make underwriting an essential process in the insurance industry. Process automation will help increase the speed of traditional processes that require manual intervention. Further, conversational AI will be harnessed in the insurance industry throughout the value chain and will help customers by assisting them during various stages of insurance procurement,” said Panda.

Panda was speaking during a session at the Global Fintech Festival, 2023.

The IRDAI chairperson also noted that products such as smart contracts, parametric triggers and decentralised insurance would be the future of insurtech in India. 

“Accessibility, availability, awareness, choiceness, healthy competition all led by technology is the way forward,” he added.

Panda also said that the sector regulator was anticipating a future where insurers can manage significant data sources, harnessing quantum computing to revolutionise risk assessment and decision-making, thereby significantly improving the lifecycle.

India’s insurtech segment has minted unicorns such as Policybazaar, Acko and Digit, alongside soonicorns such as Turtlemint and is set to reach a market opportunity of $307 Bn by 2030, growing at a CAGR of 17% between 2022 and 2030, according to an Inc42 report.

The sector regulator also is working to improve the sector’s adaptability and responsiveness to ultimately improve the insurance life cycle.

“IRDAI is actively pursuing reforms in the sector to enhance its adaptability and responsiveness. We are currently at a juncture marked by personalised offerings and shifting consumer preferences,” Panda said, adding that the regulator is exploring flexible, do-it-yourself insurance products, leveraging advisory technologies and digital assistants.

Panda’s comments come as India has witnessed a sharp increase recently in adoption across multiple products in the country. For instance, ever since the COVID-19 pandemic, there has been a rise in health-related policies in India. 

The year 2020 alone witnessed a 40% increase in health insurance premium collections during the year, per a Forbes report. Further, a report by Mordor Intelligence indicated that while the health insurance market in India was growing at a CAGR of 24%, the growth rate reached 34% during the pandemic.

Despite this, penetration in India stands at around 5% of the population, comparable to other financial products such as credit cards.

To improve the situation, the IRDAI launched the ‘Insuring India by 2047’ scheme in November 2022, “where every citizen has an appropriate life, health and property insurance cover and every enterprise is supported by appropriate insurance solutions and to make Indian insurance sector globally attractive.”

The plan includes introductions of a regulatory sandbox, solvency norms for general and life insurers and an increase in tie-up limits for intermediaries, among other initiatives.

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Blow For Gameskraft: SC Stays K’taka HC Order Quashing INR 21,000 Cr GST Notice https://inc42.com/buzz/blow-gameskraft-sc-stays-ktaka-hc-order-quashing-inr-21000-cr-gst-notice/ Wed, 06 Sep 2023 10:14:28 +0000 https://inc42.com/?p=414292 In a major blow to online gaming startup Gameskraft, the Supreme Court on Wednesday reportedly stayed the Karnataka High Court…]]>

In a major blow to online gaming startup Gameskraft, the Supreme Court on Wednesday reportedly stayed the Karnataka High Court order quashing the GST department’s show cause notice for an alleged evasion of INR 21,000 Cr.

A bench of Chief Justice of India (CJI) DY Chandrachud and Justices JB Pardiwala and Manoj Misra sought a response from Gameskraft and listed the matter for hearing after three weeks. “Do not worry…nothing is going to happen in three weeks,” the CJI orally remarked, as per a report by Bar and Bench.

CJI Chandrachud also permitted the Directorate of Revenue Intelligence of GST to file a rejoinder to the same. 

During today’s hearing, the Additional Solicitor General (ASG) N Venkatraman argued that the government approached the Supreme Court in the case as the High Court relied heavily on a judgment of a two-judge bench of the same court. 

According to the ASG, the observations made by the HC in the judgment have put a pause on other show cause notices leading to a problem for the GST department. He argued that the department has had to hold back at least 35 different show cause notices owing to the HC’s judgment.

The Gameskraft Case

In September 2022, the Directorate General of GST Intelligence (DGGI) issued a show cause notice to Gameskraft, alleging that the online gaming startup failed to pay INR 21,000 Cr in GST, the biggest such claim in the history of indirect taxation. The notice was for the period between 2017 and June 30, 2022.

Gameskraft was also accused of promoting online betting through cards and casual and fantasy games such as Rummy Culture, Gamezy and Rummy Time. Gameskraft was not issuing invoices to customers, the officials alleged at the time.

GST officials slapped a 28% tax on betting amounts of nearly INR 77,000 Cr. “GTPL (Gameskraft) was engaged in the betting by allowing its players/gamers to place bets in the form of money stakes on the outcome of card games played online,” the authorities said.

The authorities alleged that the gaming platform submitted fake/back-dated invoices and added that it was inducing its customers to bet as there was no way of returning the money once it was added to the wallet.

The company approached the Karnataka High Court challenging the show cause notice. In May 2023, the High Court quashed the show cause notice and observed that the department was picking and choosing its arguments. Following this, the GST department appealed against the judgment in the Supreme Court.

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Google To Allow Real Money Games On Play Store https://inc42.com/buzz/google-allow-real-money-games-play-store/ Wed, 06 Sep 2023 06:57:10 +0000 https://inc42.com/?p=414234 Google plans to continue permitting real-money games on its Play Store, pending approval from self-regulatory bodies, once the government introduces…]]>

Google plans to continue permitting real-money games on its Play Store, pending approval from self-regulatory bodies, once the government introduces a new regulatory framework for gaming platforms.

These apps will remain available for download via Google Play due to them being part of a pilot project by the tech giant. Google started a year-long pilot to offer daily fantasy sports and rummy apps to users in India in September 2022. The pilot is set to end later this month.

The tech giant’s stance would likely be a shot in the arm for skill-based gaming companies that are currently under immense pressure following the government’s recent move to implement a 28% GST on real money games.

“We intend to enable distribution on Google Play for all Self Regulatory Bodies (SRB) verified online real money games that comply with our policies. We are closely tracking all developments in this regard to determine next steps and timelines,” a Google spokesperson said.

For now, the tech giant has updated its support page to mention that it will no longer accept new apps into the pilot programme after the pilot ends. Google will still provide a grace period for existing apps that are already a part of the pilot programme to remain on Google Play till January 15, 2024.

In April, MeitY notified new gaming-related amendments to the IT Act 2021, allowing multiple self-regulatory organisations (SROs) to determine whether a real money game is permitted to operate in India.

Real money games are still awaiting more clarity from the GST Council on the exact GST norms and which companies will come under the ambit of the move. However, this is still being perceived as a black swan event for online gaming in India.

Since the introduction, several gaming startups have trimmed their workforce, while few even decided to halt operations temporarily. Gaming unicorn Mobile Premier League (MPL) slashed 350 jobs, Hike slashed its workforce by 25% and online gaming platform Spartan Poker fired 125 employees in recent weeks. 

At the same time, the likes of Fantok suspended operations temporarily, while many small real-money gaming companies are looking to get acquired amid the increased tax burden.

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Zoho Becomes 1st Bootstrapped SaaS Company To Cross 100 Mn Users https://inc42.com/buzz/zoho-1st-bootstrapped-saas-company-cross-100-mn-users/ Wed, 06 Sep 2023 06:18:24 +0000 https://inc42.com/?p=414227 Chennai-based SaaS unicorn Zoho has surpassed 100 Mn users across its various business applications, making it the first self-funded SaaS…]]>

Chennai-based SaaS unicorn Zoho has surpassed 100 Mn users across its various business applications, making it the first self-funded SaaS company to achieve this landmark. The company now serves over 700K businesses across 150 countries.

The SaaS unicorn saw its user base grow from 1 Mn in 2008 to 100 Mn in 2023. The company crossed $1 Bn in annual revenue last year. 

“This is an impressive milestone for any organisation, but it’s particularly sweet for us as a bootstrapped company that has never raised external capital. And we are not done yet. We have an impressive innovation pipeline covering the next 10 years and are investing in deep technologies to serve billions of users around the world. We’re working towards it, and we want to thank all of you for your continued support,” said Sridhar Vembu, cofounder and CEO of Zoho.

Best known for its online office suite applications, Zoho provides tools for customer relationship management (CRM), project management, social media management and so on.

Some of Zoho’s customers include startups like BYJU’S, MakeMyTrip, BigBasket, Paper Boat, Zomato and brands like PUMA, Axis Finance, Samsonite, Tata Play Fiber, Star Health & Allied Insurance, Mercedes-Benz India, SpiceJet, IIFL Finance, Meril Life Sciences, Blue Star, Bosch, Saint-Gobain, Deloitte and McDonald’s.

In addition to its core services, Zoho recently launched ‘Ulaa,’ a privacy-focused web browser designed to protect user data by blocking trackers and website surveillance.

Founded in 1996 by Vembu and Tony Thomas, Zoho has more than 12,000 employees globally. Despite a business slowdown, the bootstrapped unicorn posted a net profit of INR 2,749 Cr in FY22, registering a 43% jump from INR 1,917 Cr in FY21. 

The SaaS giant competes with the likes of Freshworks, Hubspot, Salesforce, Microsoft and many other Indian and international tech majors. Globally, Salesforce is the largest CRM by user base, with more than 150K companies served, including Walmart, Amazon, AWS and Spotify, among others. The company has also captured nearly 40% of the global cloud-based sales software.

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SEBI Chief Urges Finfluencers To Register If They Wish To Work With Regulated Entities https://inc42.com/buzz/sebi-chief-finfluencers-register-wish-work-regulated-entities/ Wed, 06 Sep 2023 05:00:19 +0000 https://inc42.com/?p=414215 SEBI chief Madhabi Puri Buch has urged finfluencers looking to deal with securities or partner with regulated entities must register…]]>

SEBI chief Madhabi Puri Buch has urged finfluencers looking to deal with securities or partner with regulated entities must register with the Securities and Exchange Board of India (SEBI).

“We are very clear. If you wish to stay outside the purview of SEBI, we don’t have any problem because we respect your freedom of speech. But if you wish to deal with securities, or wish to partner with regulated entities, then you need to come and register with us,” Buch said at the Global Fintech Festival.

Buch’s comments come just days after SEBI floated a consultation paper on August 25, which introduced a proposal to limit interactions between regulated entities and unregistered finfluencers. The market regulator has invited public comments on the proposals which can be submitted by September 15.

Buch emphasised that while SEBI respects freedom of speech, registration is necessary for those wanting to deal with securities or partner with regulated firms. “If your actions cross into enticement, entrapment, or fraud, that’s unacceptable,” she added.

Financial influencers or ‘finfluencers’ have come on SEBI’s radar amid growing cases of misinformation, and in many cases, outright fraud. The registered entities are expected to not have any direct or indirect association, whether monetary or non-monetary, with finfluencers, while such influencers are required to register with the regulator.

According to the market regulator, ‘finfluencers’ are persons who provide information and/or advice on various financial topics such as investing in securities, personal finance, banking products, insurance, and real estate investment, among other channels, through social or digital media platforms and can influence the financial decisions of their followers.

Buch further said at the fintech event that the markets regulator would like to see fintechs further democratising the market. 

“If what you do will democratise the market further, then we have all the time in the world for you, because that is our objective. We would like to see fintechs take the markets to more and more people across the country and do it at a low cost, which makes it inclusive,” added Buch.

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Unicorn India Ventures Announces First Close Of Fund III At INR 225 Cr https://inc42.com/buzz/unicorn-india-ventures-first-close-fund-iii-inr-225-cr/ Tue, 05 Sep 2023 07:24:36 +0000 https://inc42.com/?p=413934 Early stage venture capital fund Unicorn India Ventures (UIV) has announced the first close of its INR 1,000 Cr Fund…]]>

Early stage venture capital fund Unicorn India Ventures (UIV) has announced the first close of its INR 1,000 Cr Fund III at INR 225 Cr. The VC firm is looking to close the fund by March 2024.

Unicorn India Ventures plans to back 25 startups focused on global SaaS and digital platforms through this fund. Fund III is looking at newer sectors of climate tech, agritech, spacetech and the semiconductor ecosystem. 

Fund III would look at investing a first cheque of around $1 Mn – $2 Mn and would then look to invest in the follow-on round. As a part of its investment thesis, UIV invests only 20% of its investible corpus to create the portfolio and the rest to back the winners of the portfolio.

Started in 2016 by Bhaskar Majumdar and Anil Joshi, Unicorn India Ventures launched Fund II, an INR 300 Cr fund in 2020, with its first fund coming in 2019. With two funds under management, Unicorn India Ventures has an active portfolio of over 35 startups. According to the firm, the internal rate of return (IRR) was more than 60% year over year for its first fund.

Bhaskar Majumdar, managing partner of Unicorn India Ventures, said, “Being the first institutional investors, before making any investment we spend considerable time with the founders to understand their vision, team’s capabilities, growth plans and leadership style. Our focus is to invest in companies that are enablers of India’s digitisation across sectors. We avoid high cash burn businesses like D2C, Consumer Internet and content businesses.”

Unicorn India Ventures has also announced senior hiring for Fund III. Former Aavishkaar Group partner Bikram Mahajan is joining as a partner, while former Edelweiss AVP Kamlesh Ahuja is joining as VP (fund operations).

Anil Joshi, managing partner of Unicorn India Ventures, added, “Our key differentiator is that we are present across India and believe that India’s startup landscape has changed immensely over the past couple of years. With this third fund, our commitment to nurture Indian startups will be unwavering and we will keep scouting for highly innovative companies whose disruptive solutions can address real-life problems of users by leveraging technology.”

Joshi added that more than 60% of the VC firm’s portfolio startups come from emerging regional hubs like Kochi, Jaipur, Ahmedabad, Pune and Hyderabad. “Unicorn is perhaps the only fund that has worked tirelessly with the state governments in Kerala, Orissa, and Madhya Pradesh to roll out a startup policy to find high-potential startups from Tier II and III cities,” Joshi added.

Through its first and second fund, Unicorn India Ventures has backed startups such as neobanking unicorn SmartCoin, Open Bank, Sequretek, Pharmarack, Genrobotics, Clootrack, Probus and Gamerji.

The VC firm’s first close of its third fund comes as investors active in India have been stockpiling dry powder to invest in Indian startups. According to data compiled by Inc42, funds worth nearly $4 Bn have been launched or announced in India since the start of 2023.

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Fintech Giant BharatPe In Talks To Raise $100 Mn From Existing Investors https://inc42.com/buzz/fintech-giant-bharatpe-talks-raise-100-mn-existing-investors/ Tue, 05 Sep 2023 06:35:50 +0000 https://inc42.com/?p=413913 Fintech unicorn BharatPe is in talks with existing investors to raise $100 Mn in a new round of funding.  The…]]>

Fintech unicorn BharatPe is in talks with existing investors to raise $100 Mn in a new round of funding. 

The fintech giant is also looking to rope in a new investor in the funding round, ET reported, citing sources. BharatPe had last raised a major funding round in 2021 when it raised $370 Mn at a valuation of $2.9 Bn.

However, the publication reported that the fintech giant might have to settle for a $2 Bn valuation at the latest round, given current market conditions.

BharatPe is planning to raise the round amid an ongoing leadership exodus. CBO Nishant Jain, VP of organised trade (mid-sized retailers), Prashant Gagneja, VP of user growth, Ashish Aggarwal, VP of products Anurag Rathor and head of product design Rahul Chauhan have all moved on.

“There have been talks for new capital at BharatPe, but the contours are not finalised yet and valuation will be tricky because of its troubles as well as the broader correction in valuation,” a person aware of the goings-on at BharatPe told ET, adding it is still a couple of months away.

Post-Ashneer BharatPe

Ever since cofounder and ex-MD Ashneer Grover’s unceremonious exit in 2022, BharatPe has seen a complete reshuffle at the top. Cofounder Bhavik Koladiya also left the fintech last year, leaving only Shashvat Nakrani as the only cofounder to be still at BharatPe.

In January this year, CEO Suhail Sameer also stepped down, which led the fintech to appoint Nalin Negi as CFO and elevate him to interim CEO after Sameer’s departure. Further, former Razorpay senior executive Pankaj Goel joined as CTO and former ICICI Bank executive Kohinoor Biswas joined as head of consumer lending. 

Before that, BharatPe got Aparna Kuppuswamy as chief risk officer and Sandeep Indurkar as CBO for banking and other alliances.

The fintech giant set a target of hitting EBITDA profitability by March 2023, leading up to an IPO in the next two years. These plans have been the backbone for BharatPe to raise fresh money and scale up its business operations. However, the fintech posted a net loss of INR 5,610 Cr for FY22, with a revenue of INR 321 Cr.

The new funding round might also be significant given BharatPe’s commitment towards Unity Small Finance Bank, where it is a significant shareholder. The company also completed the acquisition of Trillion Loans earlier this year, another non-banking financial company (NBFC) to shore up its lending operations.

In a recent press statement, the fintech said it has around 200K devices deployed across more than 400 locations in India. It intends to double its network of terminals over the next year with the launch of its new Android-based PoS terminal.

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Vijay Shekhar Sharma Open To Upping Stake As Paytm Inches Closer To Profitability https://inc42.com/buzz/vijay-shekhar-sharma-upping-stake-paytm-inches-closer-profitability/ Tue, 05 Sep 2023 05:31:34 +0000 https://inc42.com/?p=413901 Vijay Shekhar Sharma, the founder and CEO of Paytm, said he’ll look to raise his stake as Paytm edges closer…]]>

Vijay Shekhar Sharma, the founder and CEO of Paytm, said he’ll look to raise his stake as Paytm edges closer to profitability.

“There is never a day that I would not buy more equity in Paytm,” Sharma told Bloomberg News in an interview on Monday. “The single largest shareholder of Paytm is now an Indian, that is myself, and I believe this is definitely a key milestone.”

Paytm reduced its losses by 44.5% year-on-year (YoY) to INR 358.4 Cr in Q1 FY24. The fintech giant reported a third consecutive EBITDA positive quarter but before the employee stock option (ESOP) cost. EBITDA, sans ESOP costs, stood at INR 84 Cr during the quarter under review versus an EBITDA loss of INR 275 Cr in Q1 FY23. 

Sharma’s comments come on the heels of his becoming Paytm’s Significant Beneficial Owner (SBO) and its largest shareholder after Anfin reduced its stake in the company. In a regulatory filing on Monday (September 4), the listed fintech giant disclosed that Antfin had reduced its ownership from 23.79% to 9.90%.

Antfin, a Netherlands-based affiliate of China’s Ant Group, trimmed its stake over two separate transactions.

Firstly, it transferred a 10.3% stake, along with voting rights (excluding economic rights) to Resilient Asset Management, a Sharma-owned company. Valued at approximately $628 Mn (around INR 5,200 Cr), this move elevated Sharma’s cumulative shareholding in Paytm to 19.42% o 19.42%.

It also sold a 3.6% stake through open market transactions last week for INR 2,037 Cr.

This ownership reshuffle also comes months after Alibaba, another subsidiary of Ant Group, offloaded a 3.31% stake in Paytm this February.

Vijay Shekhar Sharma also said that while Antfin has not indicated that they want to sell a further stake at the moment, he remains ready to ‘jump at any opportunity’ to buy more equity in the fintech giant.

The company’s shares, which have made a sharp recovery over the past eight months or so, opened at INR 863.05 apiece on Tuesday (September 5), less than 1% higher than Monday’s close of INR 856.80. While the share price has improved by nearly 60% since the start of the year, it remains some ways off from its listing price of INR 2,150.

On Monday, the fintech giant launched another soundbox, which also features contactless payments via credit or debit cards. Paytm also approved the allotment of 48,495 equity shares on Tuesday as part of its ESOP plans from 2008 and 2019, exchange filings showed.

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B2B SaaS Focused Pentathlon Ventures Launches INR 450 Cr Fund https://inc42.com/buzz/b2b-saas-focused-pentathlon-ventures-inr-450-cr-fund/ Tue, 05 Sep 2023 04:13:01 +0000 https://inc42.com/?p=413895 Early stage B2B SaaS-focused venture capital firm Pentathlon Ventures has announced the launch of its second fund, Fund II, with…]]>

Early stage B2B SaaS-focused venture capital firm Pentathlon Ventures has announced the launch of its second fund, Fund II, with a target corpus of INR 450 Cr.

The fund aims to invest in 25 B2B SaaS startups across sectors, including enterprise digital transformation, ecommerce enablement, fintech, vertical SaaS, applied AI, sustainable tech and healthtech.

Founded in 2020, Pentathlon Ventures has backed 23 startups, including Deeptek, Rezolve, Spyne, Dista, TurboHire and ShopSe, among others, through its first fund. It had launched its first fund in 2021 with a corpus of INR 76 Cr.

Commenting on the fund’s investment thesis, Pentathlon Ventures’ managing partner Sandeep Chawda said, “The revenues coming from India-based B2B startups are expected to grow 25X in the next 8 years. With an impressive 50% faster time to revenue, better revenue predictability, and solid gross margins ranging between 70-80%, it presents extraordinary prospects of building sustainable businesses. In addition to these aspects, with our core expertise being in this space, early stage B2B SaaS companies built in India continue to be our primary investment thesis.”

For Fund II, Pentathlon Ventures is raising capital from a mix of domestic and global limited partners.

Speaking on Fund II, Pentathlon Ventures managing partner Gireendra Kasmalkar said, “A couple of decades back, India was known for offshore IT services. Later, B2C startups gained prominence because of India’s population/consumption story. Today, Indian B2B startups are on their way to becoming global leaders within this decade. Add to this the tailwinds from the global focus moving to India. We are truly on the cusp of a huge virtuous cycle.”

The VC firm’s fund launch comes when Indian startups have been struggling with a funding shortfall for the past 18 months or so, and not for a lack of funds available to investors. Per an Inc42 survey, which surveyed 70+ active VC firms in India, Indian VCs have only invested 26% of the capital they have accumulated and allocated for FY24, holding on to the rest.

To be sure, investors in India have launched or announced funds worth nearly $4 Bn since the start of 2023. Some of the latest fund announcements include MIXI’s $50 Mn CVC fund, CapFort Ventures’ INR 400 Cr fund and Good Capital’s $50 Mn fund, among others.

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Jio Looking To Raise $2 Bn In Debt To Fund Nationwide 5G Rollout https://inc42.com/buzz/jio-looking-raise-2-bn-debt-fund-nationwide-5g-rollout/ Mon, 04 Sep 2023 12:31:02 +0000 https://inc42.com/?p=413797 Reliance Industries Ltd’s telecom arm Jio is reportedly in talks to raise up to $2 Bn in offshore loans, with…]]>

Reliance Industries Ltd’s telecom arm Jio is reportedly in talks to raise up to $2 Bn in offshore loans, with BNP Paribas acting as lead arranger, to fund its 5G network expansion in the country.

The telecom giant is likely to purchase 5G gear from Swedish telecom giant Ericsson and the loans would be used to fund this purchase, ET reported citing sources. 

Ericsson, in October last year, said its 5G Radio Access Network (RAN) products and solutions will be deployed for Jio’s 5G rollout in India.

BNP Paribas will provide $1.9 Bn-$2 Bn over a nine-month period, during which Akash Ambani-led Jio will pay back Ericsson, BNP and some other banks, the publication said citing a person familiar with the matter.

The report added that the fundraise is happening through a discounted process and the implicit interest rate will be arrived at over the nine-month period.

The development comes after Jio tied up with Swedish export credit agency EKN for a $2.2 Bn loan to finance the equipment and services for its 5G expansion. “The $2.2 Bn cover from EKN will likely reduce Jio’s overall 5G gear funding costs as global lenders and 5G equipment suppliers involved in such a large deal will be more comfortable,” another source was quoted as saying. 

As per reports, Jio has also signed a deal with Nokia worth $1.7 Bn to purchase 5G gear.

Jio is the largest telecom operator in the country, with a market share of 38.35% in the Indian wireless market as of June 30, 2023.

During Reliance’s 46th annual general meeting (AGM), CMD Mukesh Ambani said Jio has surpassed the 450 Mn subscribers mark.

Jio’s 5G rollout is in its advanced stages and the company aims to achieve the nationwide rollout by the end of 2023. The telco’s 5G services are already available in 96% of census towns, Mukesh Ambani said at the AGM last month.

“Today, nearly 85% of the total 5G cells operational in India are in Jio’s Network. At our current pace, we are adding one 5G cell to our network every 10 seconds,” he said, adding that 1 Mn 5G cells are expected to be operational in Jio’s network by December. 

Jio reported a consolidated net profit of INR 5,098 Cr in the Q1 FY24, up 12.5% year-on-year.

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Rebright Partners GP Brij Bhasin Quits; Launches New Startup https://inc42.com/buzz/rebright-partners-gp-brij-bhasin-quits-launches-new-startup/ Mon, 04 Sep 2023 09:32:37 +0000 https://inc42.com/?p=413760 Brij Singh Bhasin, a general partner (GP) at the early stage venture capital firm Rebright Partners, has stepped down to…]]>

Brij Singh Bhasin, a general partner (GP) at the early stage venture capital firm Rebright Partners, has stepped down to launch Snow Mountain AI, a generative AI-focused startup.

“Today, I step down as a General Partner from Rebright Partners and start a new chapter as Founder of Snowmountain.ai, a tech startup building next-gen software using Gen AI,” said Bhasin in an X post.

The outgoing GP added that he will be a part-time partner with Rebright and transition day-to-day portfolio support, new investments and fund management to new and existing team members. “I’ll continue to provide strategic support to our portfolio founders and refer new investment opportunities to the firm & our LPs,” Bhasin added.

Snow Mountain AI will also receive investment from some of Rebright’s LPs and ‘will continue to collaborate closely in the future as well’, Bhasin said.

Founded by Takeshi Ehibara, Rebright Partners has invested in 23 Indian startups so far, including Medikabazaar, InShorts, LetsTransport and MediBuddy. The VC firm invests at seed to Series A stages and has a ticket size of $200K-$1.5 Mn. 

Brij Bhasin used to lead India investments at Rebright Partners. He was a part of the founding team of GSF Accelerator before joining Rebright. His new venture, Snow Mountain AI, will be working in generative AI. 

“We use advanced AI agents to streamline and automate complex business processes in Finance, Compliance, Legal and Operations. These “agents” act as digital teammates to review documents, extract data, make decisions, and complete workflows end-to-end,” the company’s website reads.

Snow Mountain AI is Bhasin’s second shot at entrepreneurship. Earlier, he founded the mobile app development startup Boost Tech in 2011. He exited the startup in 2012 to join Little Eye Labs, which was later acquired by Facebook, as an advisor. 

In an environment where startup founders are turning investors, with many of them either launching funds to back startups or working as angel investors, Bhasin is taking the reverse route, going from investor to entrepreneur. 

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Foodtech Giant Zomato Shutters Czech Subsidiary Lunchtime https://inc42.com/buzz/foodtech-giant-zomato-shutters-czech-subsidiary-lunchtime/ Mon, 04 Sep 2023 08:04:06 +0000 https://inc42.com/?p=413746 Zomato will be liquidating its Czech Republic-based subsidiary, Lunchtime, the listed foodtech giant said in an exchange filing. “Pursuant to…]]>

Zomato will be liquidating its Czech Republic-based subsidiary, Lunchtime, the listed foodtech giant said in an exchange filing.

“Pursuant to Regulation 30 of the Listing Regulations, we wish to submit that Lunchtime.cz s.r.o. (“Lunchtime”), step down subsidiary of Zomato Limited (“the Company”) situated in Czech Republic has initiated the process of liquidation on September 01, 2023,” said Zomato.

According to the foodtech giant, Lunchtime had no active business operations. The subsidiary is valued at INR 28.2 Lakhs and has zero turnover or contribution to Zomato’s net worth.

Zomato has been shuttering non-performing subsidiaries across the world to focus more on the Indian market.

This year, Zomato has already closed subsidiaries in Indonesia, Portugal, and Jordan, as well as announcing a planned exit from the Philippines. Most of these subsidiaries were non-operational.

Currently, Zomato only has active operations in India and the UAE. In November 2022, Kuwait-based foodtech startup Talabat shut down Zomato’s food delivery unit in the UAE, which it acquired for a reported $172 Mn in 2019.

The Indian foodtech continues to offer restaurant discovery and dining-out services in the UAE.

At the start of the year, Zomato said it pulled out of 225 cities in the country owing to poor performance. In a shareholder letter, Zomato CFO Akshant Goyal said the foodtech exited around 225 smaller cities in January, which contributed 0.3% of our GOV (gross order value) in Q3FY23 (October-December).

The foodtech major also introduced a platform fee ranging from INR 1 to INR 3 per order to better monetise and sustain operations in smaller cities. Zomato’s monetisation and cost-cutting efforts saw it post a profit of INR 2 Cr for the June quarter of FY24, a feat it achieved for the first time. 

Last week, Tiger Global and SoftBank sold shares they held in the foodtech giant, with the former completely exiting the startup, prompting a jump in Zomato’s share price.

Zomato shares have been buoyant on the bourses over the past few months, hitting a 52-week high of INR 102.85 apiece last month. At 1:15 PM on Monday (September 4), the foodtech’s shares were trading at INR 98.05 on the BSE, slightly higher than Friday’s close.

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Fintech Unicorn Pine Labs Launches Mini — A QR-First Device With Card Support https://inc42.com/buzz/fintech-unicorn-pine-labs-mini-qr-first-device-card-support/ Mon, 04 Sep 2023 06:54:51 +0000 https://inc42.com/?p=413732 Fintech unicorn Pine Labs has launched Mini, a digital payments device with both QR code and card support. The fintech…]]>

Fintech unicorn Pine Labs has launched Mini, a digital payments device with both QR code and card support. The fintech giant claimed that the device will be available at one-third of the price of a regular PoS device, targeting small merchants. 

The device comes with a display that can show the UPI-linked QR code of a merchant and can also accept contactless payments via credit and debit cards. 

Though unconfirmed, the QR code might also be customisable on a payment-to-payment basis, given that the Mini also has a keypad. The device might also be capable of announcing transactions, much like a soundbox, given that it also features a speaker.

Commenting on the launch, Navnit Nakra, chief revenue officer (CRO) of Pine Labs, said, “QR-based and card tap payments are a perfect solution for Indian consumers on the go. On the merchant side, an absolute must is a fast checkout experience and the elimination of the cost barrier in point-of-sale digitisation. Addressing these needs, we are delighted to launch a QR-first, card-accepting, cost-effective PoS solution called Pine Labs Mini.”

Incidentally, this is Nakra’s first product launch since he joined Pine Labs from OnePlus India last month. Nakra was the smartphone brand’s CEO in India before joining the fintech giant as the CRO.

The fintech giant already has a range of four PoS devices, including three handheld devices to enable merchant payments via credit/debit cards and UPI. Per media reports, Pine Labs has sold nearly 1 Mn PoS devices in India.

Recently, other fintech companies in India have also launched PoS devices, including PhonePe and Paytm to compete with Pine Labs, BharatPe, Mswipe and Innoviti, among others. While Paytm introduced its PoS device back in 2020, PhonePe introduced its Android-powered device in July this year.

Last week, US-based Fidelity marked up Pine Labs valuation, pinning the value of its stake at $34.77 Mn as of July 31, 2023, up 4.6% from $33.24 Mn as of June 30, 2023.

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iPhone 15 Could Hit Indian Shelves Simultaneously With Global Launch https://inc42.com/buzz/iphone-15-hit-indian-shelves-simultaneously-global-launch/ Mon, 04 Sep 2023 06:11:24 +0000 https://inc42.com/?p=413720 Apple is contemplating unveiling the iPhone 15 around the same time (September 12th) in India as its global launch, reducing…]]>

Apple is contemplating unveiling the iPhone 15 around the same time (September 12th) in India as its global launch, reducing the lag significantly.

According to sources cited by the ET, Apple is set to launch the latest iPhone in India in mid-September, cutting the delay short by several days. The Cupertino-based tech giant also launched the iPhone 14 in India at the same time as the world, though the Pro models were introduced to India almost three weeks later.

With India emerging as a key manufacturing hub for iPhones, Apple might launch its latest model in the country simultaneously with the rest of the world. Media reports from last month also suggested that Foxconn has already started manufacturing the iPhone 15 in its Chennai plant.

Foxconn had also begun producing the iPhone 14 within ten days of the global launch, though it took a month for made-in-India iPhones to reach the local market. 

This year, since Foxconn has already started manufacturing the iPhone 15, the delay, if any, will be only a few days, per the people cited above.

Apple’s PLI-Boosted Manufacturing In India

The manufacturing boost in India comes as the country already accounts for 7% of Apple’s global production, up from less than 1% before 2021 and the start of the production-linked incentive (PLI) scheme for smartphones.

Even though it is a carrot-and-stick situation, Apple has become the largest smartphone exporter in India. In 2022-23, Apple manufactured over $7.5 Bn of iPhones in India, of which around $5 Bn were exported, making Apple the country’s single largest mobile phone exporter.

Apple’s bullishness also pushed India’s mobile phone exports to over $11.1 Bn, a 91% increase over the last financial year.

Foxconn, Wistron and Pegatron, three of Apple’s contract manufacturers active in India, have also committed exports of INR 61,000 Cr in FY24 for the third year of the PLI scheme for smartphones. The companies are also well on their way to achieving the milestone –  the June quarter of FY24 saw iPhone exports cross INR 20,000 Cr, nearly five times higher on-year.

The iPhone has become the single largest contributor to electronics exports from India; 35% of all electronics exports and 66% of total mobile exports in the first quarter of FY24 were iPhones.

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Vijay Shekhar Sharma Becomes Paytm’s Significant Beneficial Owner After Antfin Reduces Stake https://inc42.com/buzz/vijay-shekhar-sharma-paytm-significant-beneficial-owner-antfin-reduces-stake/ Mon, 04 Sep 2023 04:34:54 +0000 https://inc42.com/?p=413711 Paytm founder and CEO Vijay Shekhar Sharma has emerged as the significant beneficial owner (SBO) of the fintech giant after…]]>

Paytm founder and CEO Vijay Shekhar Sharma has emerged as the significant beneficial owner (SBO) of the fintech giant after Antfin reduced its stake last month.

In a regulatory filing, Paytm disclosed that Antfin had reduced its ownership from 23.79% to 9.90%. “Accordingly, no person affiliated with Antfin will qualify as a Significant Beneficial Owner (“SBO”) of the Company,” Paytm said.

Simultaneously, the company also informed the bourses that Sharma’s Resilient Asset Management, now holds a 10.3% stake in Paytm, elevating his overall shareholding (direct and indirect) to 19.42% and thus making him the company’s only SBO.

This shift comes as China’s Ant Group has been reducing its stake in the fintech giant over the past few months. The Netherlands-based Antfin is an affiliate of the Chinese conglomerate, and so is the Alibaba Group. 

Antfin recently sold a 3.6% stake through open market transactions for INR 2,037 Cr. The company sold 2.27 Cr shares of One97 Communications, the parent of Paytm, for INR 895.2 per share, as per bulk and block deal data of the BSE. 

Earlier in February, Alibaba.Com Singapore E-Commerce Private Limited, another affiliate of Ant Group, exited Paytm by selling a 3.31% stake. In the same month, Ant Group’s senior vice-president Douglas Feagin also resigned from the Paytm board.

Paytm’s net loss declined nearly 45% year-on-year to INR 358 Cr in the quarter ended June 2023. Operating revenue surged 39% to INR 2,342 Cr on strong growth in payments and lending business.

Several brokerages, including Goldman Sachs, Citi, and CLSA, gave a thumbs up to the company’s Q1 performance and a ‘Buy’ rating to the stock. They have also increased their target price. During the early hours of trading on Monday (September 4), Paytm’s shares were trading at INR 860 apiece, slightly higher than the last close and nearly 62% higher year to date.

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Flush With Funds, No IPO Plans For At Least A Couple Of Years: Aman Gupta https://inc42.com/buzz/flush-funds-no-ipo-plans-at-least-couple-years-boat-cmo-aman-gupta/ Sat, 02 Sep 2023 11:19:38 +0000 https://inc42.com/?p=413561 Having secured INR 500 Cr from Warburg Pincus and Malabar Investments last October, Indian D2C electronics giant boAt is not…]]>

Having secured INR 500 Cr from Warburg Pincus and Malabar Investments last October, Indian D2C electronics giant boAt is not in a rush to go for an initial public offer (IPO), according to cofounder and chief marketing officer (CMO) Aman Gupta.

Gupta said that while the D2C electronics brand will go for a public listing in India, the company does not have any plans to do so in the next couple of years, given that it has already secured the funding.

“There is no urgency [for the IPO]… [Earlier] we had decided to go for an IPO next year, but then we raised funds. We had thought of raising INR 500-900 Cr via the primary [part of the IPO] but then we raised funds from Warburg. So, we have no need for additional funds for the next two to three years,” Gupta said, speaking at Inc42’s ‘The D2C Summit 4.0’.

“We may think about the IPO next year,” Gupta added.

Incidentally, boAt filed its draft red herring prospectus (DRHP) in January last year for an INR 2,000 Cr public issue. The IPO received SEBI’s green light in May 2022 and everyone expected the Aman Gupta and Sameer Mehta-led brand to go public by the end of the year.

At the time, according to the IPO documents, both founders held 28.26% of the equity share capital on a fully diluted basis, giving them control of the company. However, the shareholding pattern in the company might have changed with the entry of Warburg and Malabar Investments.

Notably, 2022 was a difficult year for tech startup stocks on the bourses, as companies listed in 2021 saw an absolute routing during the year. The likes of Paytm, Zomato and many others recorded all-time lows on the stock market, prompting several startups, including boAt, to defer their IPO plans.

Sharing his long-term ambitions, the Shark Tank judge said the D2C brand is planning to take its revenue to INR 10,000 Cr in the next two to three years and is currently in the process of building a roadmap for the same.

“We did INR 4,000 Cr in revenue this year (FY23), we will do INR 5,000 Cr next year (FY24). While we haven’t planned what we’ll do the year after that, we will become an INR 10,000 Cr company in the next two to three years,” Gupta said at The D2C Summit 4.0.

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Walmart Spent $3.5 Bn To Buy Flipkart Shares From Tiger Global, Others This Year https://inc42.com/buzz/walmart-spent-3-5-bn-buy-flipkart-shares-tiger-global-others-year/ Sat, 02 Sep 2023 08:41:13 +0000 https://inc42.com/?p=413515 Walmart spent $3.5 Bn during the six months ended July 31, 2023, to acquire Flipkart shares from non-controlling stakeholders, its…]]>

Walmart spent $3.5 Bn during the six months ended July 31, 2023, to acquire Flipkart shares from non-controlling stakeholders, its regulatory filings with the SEC said.

Walmart acquired Flipkart shares from some non-controlling interest holders, which likely included Tiger Global and Accel. Walmart reportedly also bought the remaining stake of Flipkart cofounder Binny Bansal earlier this year.

As per the filing, Walmart also spent a part of the $3.5 Bn to settle the liability to former shareholders of PhonePe.

“During the six months ended July 31, 2023, the company paid $3.5 Bn to acquire shares from certain Flipkart noncontrolling interest holders and settle the liability to former noncontrolling interest holders of PhonePe,” Walmart’s filing said.

Tiger Global, the US-based investment giant, had sold a stake worth $1.4 Bn in Flipkart to Walmart, valuing the ecommerce giant at a whopping $38 Bn.

“We value Tiger Global’s involvement and support over the last several years. We remain confident in the future of Flipkart and are even more positive about the opportunity in India today than when we first invested,” a Walmart spokesperson said at the time.

Walmart also said in the filing that it received $700 Mn related to new rounds of equity funding for PhonePe. To be sure, the retailing giant also invested $200 Mn in the payments decacorn during the latter’s ongoing $1 Bn fundraising round as well.

In July, Flipkart also paid $700 Mn of cash compensation to employees as part of the separation of PhonePe from the ecommerce giant

Walmart’s international business reported net sales of $27.6 Bn during the quarter ended July 31, 2023. Around $5.8 Bn of sales of its international business came from ecommerce. However, Walmart did not specify Flipkart’s share in ecommerce sales in the segment.

Walmart has been investing heavily in India in both Flipkart and PhonePe. While it continues to raise its stake in Flipkart, Walmart is also working on a potential PhonePe IPO in 2024.

The US-headquartered retailer also spent nearly $1 Bn to pay taxes in India  due to PhonePe’s move to shift its headquarters to India.

On Flipkart, Walmart has reiterated on multiple occasions that the ecommerce company’s IPO remains a ‘long-term ambition’. 

India has been a battleground for Walmart and Amazon, as the two US-based retailing giants continue to fight to establish their dominance in the ecommerce space. While Amazon chose the organic route for India, developing the Amazon India business, Walmart acquired Flipkart in 2018 to enter the Indian ecommerce industry.

The two companies, as such, control India’s ecommerce landscape, with Flipkart and Amazon accounting for more than 90% of the market share.

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70% Of boAt Products Are Now Made In India: Cofounder Aman Gupta https://inc42.com/buzz/70-boat-products-made-india-cofounder-aman-gupta/ Sat, 02 Sep 2023 08:07:59 +0000 https://inc42.com/?p=413506 At a time when companies and the Indian government are looking at ramping up domestic manufacturing, boAt cofounder and chief…]]>

At a time when companies and the Indian government are looking at ramping up domestic manufacturing, boAt cofounder and chief marketing officer Aman Gupta has said that 70% of the audio device giant’s products are made in India as of 2023.

“Pre-Covid, 0% of our products were made in India. Cut to 2023, and 70% of our products are now made in India,” said Gupta during Inc42’s ‘The D2C Summit 4.0’.

The cofounder was in a conversation with The Moms Co cofounder Mohit Sadaani during a session titled ‘The Rhythm Of Success – How boAt Scaled To Become A $1.4 Bn Audio & Wearable Brand’.

Talking about the manufacturing ecosystem when boAt was in its initial stages, Gupta said there was no support for building audio products in India at that time. Consequently, boAt founders Gupta and Sameer Mehta had to set up a product team based in China to manufacture and import products.

However, Gupta said that the situation is rapidly changing now.

“If you look at how the government is opening up the semiconductor industry in India, how it is pushing efforts on separate parts… Right now, not everything is made in India but, like I always say, Rome was not built in a day. India will take time and everyone’s making efforts,” said Gupta on the outlook for manufacturing in India.

Following the Covid-19 pandemic and the border faceoff between India and China since 2020, boAt has been working on setting up manufacturing facilities in India to bring speed and agility to its supply chain, Gupta said.

Earlier this year, the boAt CMO took to X (then Twitter) to announce that the wearables unicorn manufactured 1 Cr products in India in 2022. This number has reached 1.5 Cr as of June 2023, Gupta said. 

boAt manufactures its products in India in partnership with players like Dixon.

In June this year, the D2C electronics brand said its net sales rose to around INR 4,000 Cr (about $500 Mn) during the financial year 2022-23 (FY23), representing a growth of about 39% from INR 2,872.9 Cr in FY22.

Founded in 2015 by Gupta and Mehta, boAt operates in the larger audio and wearables markets and sells products such as headphones, smart watches and speakers. Last year, the startup put its proposed INR 2,000 Cr initial public offering (IPO) on hold and raised INR 500 Cr in funding.

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Never Lent Any Money To BYJU’S, Claims IIFL Finance https://inc42.com/buzz/never-lent-any-money-to-byjus-claims-iifl-finance/ Sat, 02 Sep 2023 05:33:51 +0000 https://inc42.com/?p=413473 Financial services major IIFL Finance has claimed that it has never lent any money to edtech giant BYJU’s, despite the…]]>

Financial services major IIFL Finance has claimed that it has never lent any money to edtech giant BYJU’s, despite the latter stating so in its financials for the fiscal year 2020-21 (FY21). IIFL issued a clarification calling the mention an error on BYJU’S part.

“It has come to our notice that Think & Learn Private Limited (“BYJU’S”) has erroneously stated IIFL Finance Limited as Lender in their Audited Standalone and Consolidated Financial Statements for the period ended March 31, 2021,” said IIFL Finance in a filing with the BSE.

According to IIFL Finance, the edtech giant has mentioned it as a lender to the tune of INR 440.77 Cr in its audited financial statements for FY21. For its part, BYJU’S has admitted that the inclusion of IIFL was ‘inadvertent’ and has sent a letter dated August 23, 2023, to the lending company.

“We further confirm that IIFL Finance Limited has not lent any money to BYJU’S and this was an error in their audited financial statements,” the company added.

The edtech giant is struggling with two different sets of lenders – the Term Loan B (TLB) lenders and Davidson Kempner – for settlements on a cumulative lending amount of $1.45 Bn.

In some relief to BYJU’S, the company’s TLB lenders have agreed to delay their ongoing legal battle in US courts until October 6. This postponement is likely to allow both parties time to negotiate an out-of-court settlement.

BYJU’S had filed a lawsuit in the New York Supreme Court to stop the TLB lenders from accelerating the closure of its $1.2 Bn loan. The lenders contended that BYJU’S had violated multiple covenants, including submitting financial statements for FY22, which have been delayed for several quarters. The lenders consequently demanded expedited loan repayment.

Over the past few months, both parties have been locked in negotiations regarding new repayment terms and a restructuring of the loan, including upfront payments of $200 Mn and 12-13% interest, with a restructured tenure of 3-5 years.

Besides this, the edtech giant is locked in battle with Davidson Kempner, another of its lenders. BYJU’s and DK are in negotiations to settle a dispute over the breach of a loan covenant by Aakash Educational Services Limited (AESL), the edtech giant’s offline test prep arm.

BYJU’S has offered to repay this loan along with the full interest, but the lender is seeking interest on the entire amount for one to two years. BYJU’S cofounder and CEO Byju Raveendran has instead proposed interest pertaining to one quarter.

Talks between the two companies are centred on the exact payout and a formal proposal is expected this week by the two parties.

On the sidelines, Manipal Group chairman Ranjan Pai is said to have finalised an $80 Mn investment in Aakash, which could be utilised to repay Davidson Kempner, with Pai receiving shares in Aakash in exchange.

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Tier II and III Cities Account For 40% Of International Brand Orders On Myntra: CEO Nandita Sinha https://inc42.com/buzz/tier-ii-iii-cities-40-international-brand-orders-myntra-ceo-nandita-sinha/ Sat, 02 Sep 2023 04:20:54 +0000 https://inc42.com/?p=413463 According to the CEO of Myntra, Nandita Sinha, the Flipkart-owned ecommerce major receives nearly 40% of orders of its international…]]>

According to the CEO of Myntra, Nandita Sinha, the Flipkart-owned ecommerce major receives nearly 40% of orders of its international brands from Tier II cities and beyond.

“I think Tier II today is one of the fastest-growing geographies. One of the interesting parts about Tier II and Tier III cities is that 40% of our international brands business comes from these cities. So, customers from Tier II and III cities are buying across brands,” Sinha said, speaking at a session during Inc42’s fourth edition of The D2C Summit 2023.

The ecommerce major has been busy launching several products and services over the past few months, including FWD and Myntra Minis, to attract GenZ customers and improve user experience on its platform.

Myntra aims to attract 10 Mn GenZ users and expand its customer base over the next two years. As of 2022, Myntra has a customer base of 8.6 Mn GenZ users. Further, the platform plans to increase the number of styles available on FWD to over 100K by 2023-end.

“So, I think the more we personalise our experience for each customer, it’s increasingly easy for us to cater to different customer types. Tier II and III cities have been a very important part of our strategy over the last few years and will continue to do so as we go forward,” Sahni said.

Talking about the larger fashion opportunity in India for D2C brands, the Myntra CEO noted that only around 30-35% of the $100 Bn industry is branded, with the rest being unbranded. 

“New brands will emerge in this country. They will, of course, be international brands, which will come. But a lot of the brands in the country will be homegrown,” Sinha added. She said that over the last few years, the Indian consumer has become far more tech-savvy, due to which the adoption of fashion brands has seen a hockey stick growth.

Myntra also has a considerable contingent of in-house private labels, including names such as Roadster, HRX, Mast & Harbour and more. Over the past few years, Myntra has launched more than 20 so-called ‘master brands’.

While the platform is yet to publish its financials for the financial year 2023 (FY23), it posted a 40.5% YoY increase in its loss to INR 597 Cr in FY22. The bottom line took a hit despite a 45% year-on-year (YoY) increase in operating revenue to INR 3,501.2 Cr in FY22.

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Fintech Startup Khatabook Fires Over 40 Employees In A Restructuring Exercise https://inc42.com/buzz/khatabook-fires-over-40-employees-restructuring-exercise/ Fri, 01 Sep 2023 13:35:13 +0000 https://inc42.com/?p=413411 Peak XV Partners-backed fintech startup Khatabook has seen layoffs that impacted over 40 employees in its bid to cut costs…]]>

Peak XV Partners-backed fintech startup Khatabook has seen layoffs that impacted over 40 employees in its bid to cut costs and turn profitable.

The impacted employees were informed about the move in a town hall meeting earlier this week. The startup has offered a three-month salary as a severance package to the impacted employees.

Entrackr was the first to report this development. The impacted employees were from sales, marketing, analytics and tech teams, the publication reported citing sources.

A Khatabook spokesperson confirmed the layoffs with Inc42. “In line with our profitability goals, we are reorienting some parts of our business which requires us to operate with a leaner team on certain business lines. This restructuring has impacted 6% of our 700 employees. All impacted employees have been provided with a separation package which covers 3 months of pay, stock option vesting & health insurance extension and other job search-related support,” the spokesperson said.

Khatabook, founded by Vaibhav Kalpe and later acquired by Kyte Technologies in 2018, is a bookkeeping platform that helps kirana store owners manage their accounts through a digital ledger. The startup shut down its ecommerce enablement product MyStore in November 2021 to focus on its core bookkeeping and lending businesses.

Khatabook has raised $187 Mn to date, including $100 Mn from Tribe Capital and Moore Strategic Ventures in its Series C round. It counts B Capital, Peak XV Partners and Better Capital among its investors.

The startup’s net loss widened over 3X to INR 111.1 Cr in the financial year 2021-22 (FY22) from INR 32.5 Cr in the previous year. Revenue from operations quadrupled to INR 71.1 Cr from INR 16.9 Cr in FY21, while total expenses grew 74% to INR 189.3 Cr in FY22 from INR 108.6 Cr in FY21.

The startup currently offers business management applications for MSMEs in multiple languages. It claims that its app has been downloaded by over 50 Mn users.

Khatabook competes against the likes of OkCredit, Pagarbook and Paytm’s Business Khata.

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BYJU’S Skips INR 45-50 Cr Payment To Salesforce, Other Data Management Tool Providers https://inc42.com/buzz/byjus-skips-inr-45-50-cr-payment-salesforce-data-management-tool-providers/ Fri, 01 Sep 2023 09:38:23 +0000 https://inc42.com/?p=413348 BYJU’S employees have lost access to many data management tools, including Salesforce after the edtech giant reportedly didn’t clear monthly…]]>

BYJU’S employees have lost access to many data management tools, including Salesforce after the edtech giant reportedly didn’t clear monthly payments of these platforms.

The edtech major uses tools such as Leadsquared, Orderhive and Salesforce, alongside data visualisation software such as Tableau and Tooljet. On August 31, all employees lost access to Salesforce, Tableau and Tooljet, Moneycontrol reported citing sources.

BYJU’S has not cleared dues to Salesforce, Tableau and Tooljet for about two months, raking up total vendor payments between INR 45 Cr and INR 50 Cr. Leadsquared has scaled back its services, while Orderhive will suspend access to its services starting from September 1 due to non-payment of dues since December last year, the people added.

However, Salesforce access was restored earlier today (September 1).

A spokesperson for BYJU’S said that the edtech firm has been transitioning out third-party software tools. 

“BYJU’S has a high calibre tech team that has been building a robust and cost-efficient tech backbone and progressively transitioning out third-party software tools and platforms. The purpose of building a single platform for all content management, classroom and CRM solutions is to ensure a secure and seamless transition of information for all stakeholders within and outside the company’s ecosystem,” the spokesperson said. 

The spokesperson added that much of the software was transitioned out several quarters ago.

The move to discontinue third-party solutions and transition to internal systems highlight the startup’s efforts to cut costs. BYJU’S also vacated its biggest office space in Bengaluru in July, while also laying off hundreds of employees. The edtech company has also gone conservative on marketing efforts as it looks to achieve profitability next financial year.

Earlier this week, four senior executives departed from the edtech, including BYJU’S CBO Prathyusha Agarwal and WhiteHat Jr CEO Ananya Tripathi.

BYJU’S has been fighting wars on multiple fronts for some time now. In June, the company faced a significant setback when three crucial members of its board decided to step down. Further, its longtime auditor, Deloitte, also resigned in June.

The edtech giant is currently in negotiations with creditors, including term loan B lenders and Davidson Kempner, for restructuring. It has been getting closer to a settlement with both lenders

Amid the controversies, the edtech giant also constituted a board advisory council, appointing industry veterans such as TV Mohandas Pai and Rajnish Kumar as advisors. Recently, BYJU’S also onboarded Richard Lobo to lead its human resources department.

The post BYJU’S Skips INR 45-50 Cr Payment To Salesforce, Other Data Management Tool Providers appeared first on Inc42 Media.

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Use Data To Predict Trends, Plan Ahead To Cash In On Festive Fervour: CaratLane CEO Avnish Anand https://inc42.com/buzz/data-predict-trends-plan-ahead-leverage-festive-fervour-caratlane-ceo-avnish-anand/ Fri, 01 Sep 2023 09:31:34 +0000 https://inc42.com/?p=413343 According to Avnish Anand, the newly appointed CEO of the jewellery startup CaratLane, data collected from customers over the past…]]>

According to Avnish Anand, the newly appointed CEO of the jewellery startup CaratLane, data collected from customers over the past 15 years has helped the company prepare effectively during festive seasons over the years.

“We have collected a lot of data for the last 15 years. This gives us advantage and control on how we can plan for the festive season,” Anand said while speaking at the fourth edition of Inc42’s ‘The D2C Summit 2023’.

Anand added that CaratLane is a digital brand and collects customer data across all its platforms, including its stores. The CEO added that the data collection allows the startup to manage inventory effectively, given the slow-moving nature of CaratLane’s product line.

In a similar vein, Amit Dutta, the CEO of Le Marche, and Prashant Parameswaran, the MD & CEO of Tata Consumer Soulfull, outlined the importance of data in managing the unexpected demand during India’s festive season, which starts around Rakshabandhan (late August-early September) and ends after Diwali (late October-early November).

Dutta also highlighted the fact that a data-driven business can have enough guardrails to ensure profitability. “Data can help brands predict and plan ahead of time, paving the way for profitable D2C businesses,” Dutta said, speaking at a session — ‘The Great Indian Festive Rush: A Brand’s Playbook To Capitalise On High Demand’.

Anand was recently appointed the CEO of the brand after his former boss and CEO Mithun Sacheti moved on from the company, selling his stake to Titan for a massive INR 4,621 Cr, valuing CaratLane at $2 Bn (INR 17,000 Cr).

Founded in 2008, CaratLane is an omnichannel brand that manufactures and sells jewellery items in India and the US. The startup competes with other homegrown startups in the jewellery space such as GIVA, BlueStone and Melorra.

The fourth edition of Inc42’s D2C summit has brought together 70-plus leading minds in the ecommerce space, including D2C founders, ecommerce enablers and investors, to discuss the latest trends, growth drivers and challenges in the D2C ecosystem.

The post Use Data To Predict Trends, Plan Ahead To Cash In On Festive Fervour: CaratLane CEO Avnish Anand appeared first on Inc42 Media.

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