Gurugram-based fintech startup Arthmate is in complete disarray following the arrest of its cofounder and former chief executive officer Vihaan Kumar, with employees reportedly leaving the company in droves, including a top executive.

Renu Satti, the chief operating officer of Arthmate, has stepped down from her role and several other employees have quit the company since Kumar’s arrest, Entrackr reported, citing sources.

However, Satti’s LinkedIn profile shows her as still being the COO of Arthmate. Prior to joining Arthmate in February, Satti served as the chief executive officer of Paytm Payments Bank.

Troubles started when Ramesh Prabhu, cofounder and chief financial officer of online gaming firm Gameskraft, filed a complaint with the Gurugram Police against Kumar in September 2022, accusing him of fraud, as per the report.

Gameskraft declined to comment on Inc42’s queries, saying “the matter is sub-judice”.

Five months later, a First Information Report (FIR) was reportedly lodged in connection with the case and Kumar was consequently arrested in June.

The complaint against Kumar purportedly alleged that he signed a deal with Gameskraft to invest in the company but later manoeuvred its board in his attempt to take control of its operations.

Kumar allegedly hired service providers and contractors such as Fly Tech, Ginni Tech, Skytech, Synx for Gameskraft without obtaining the promoters’ consent. These companies apparently threw Gameskraft into a financial turmoil, reporting losses on account of undelivered or over-invoiced services.

According to the FIR details cited by Entrackr, Gameskraft absorbed losses to the tune of INR 12.15 Cr due to Kumar’s actions, including unpaid GST dues which had already been funnelled to fraudulent service providers.

In the wake of these allegations, the Gurugram Police and Economic Offence Wing (EoW) lodged an FIR against Kumar on charges of criminal breach of trust, cheating, forgery, using forged documents, and criminal conspiracy.

While Kumar moved the Chandigarh High Court challenging his arrest, the court refused to grant him any relief and quashed his claims last month. Kumar is currently in prison until the court grants him bail.

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Shares of Fino Payments Bank touched a fresh 52 week high of INR 448 during intraday trading today (September 5), a couple of days after the company released its annual report for the financial year 2023-24 (FY24). 

Its market cap also zoomed to $442.4 Mn (INR 3,715.52 Cr). Pertinent to note that the year high is still lower than the stocks all time high of INR 582.95.

In its annual report, Fino’s managing director and CEO Rishi Gupta shared that the company’s plans to deepen its competitiveness in the Indian payments ecosystem through business strengthening initiatives. 

In the near future, Gupta said that the bank bids to sustain its “transaction-acquisition-monetisation (TAM)” approach. Further, it plans to graduate transactions towards accounts creation and engagement leading to enhanced revenue visibility, thus it will seek to widen its CMS clientele base, increase mandates and explore UPI opportunities in the B2B space.

“To deepen customer engagement and stickiness, the Bank is expanding its product bouquet by offering referral loans through partnerships that validate the creditworthiness of customers and their needs,” Gupta said. 

Founded in 2007, Fino commenced its operations as a payments bank with effect from June 2017. Its shares were listed at INR 577 on BSE on November 12, 2021. 

The payments bank posted a PAT of INR 24.27 Cr in the first quarter of financial year 2024-25 (Q1 FY25), up 29.7% from INR 18.7 Cr in the year-ago quarter. Revenue from operations grew 25.4% YoY to INR 436.86 Cr in Q1. 

In the quarter, Fino said that over 68,000 new digital accounts were opened on its platform which facilitated 57 Cr UPI transactions. Besides, the payments bank also saw its merchant network rise 25% YoY to 18.1 Lakh.

For the prior fiscal year, the bank’s revenue jumped 20% YoY to touch INR 1,478.4 Cr. It said that this growth came in due to a 40.6% increase in its total transactions to INR 3.58 Cr for the fiscal.  

Digital transactions significantly contributed to this growth in total transactions, surging by 170.8% year-on-year and accounting for nearly 37.0% of the total throughput in FY24. 

“Our new vertical ‘digital payment services’ is growing on a profitable basis and giving the necessary impetus to our TAM (transaction, acquisition and monetisation) strategy,” Gupta said. 

For FY24, the company said that its fastest growing segments were CASA and CMS, which together represented 31% of the total revenue. 

“Looking ahead to FY25, the company anticipates continued growth in the CASA and CMS segments. The other mature businesses like DMT, Micro-ATM, and AEPS are expected to grow between 10-15%. Across the blended portfolio, we project growth rates of approximately 20- 25%. Net revenue margins are expected to remain stable within the current range,” the bank said. 

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Tata’s BigBasket is set to merge its BBdaily subscription service into its main app in the coming months as part of a strategy to strengthen its position in the growing quick commerce market.

Currently, BigBasket operates two separate apps—BigBasket for general grocery deliveries and BBdaily for subscriptions. Within the main app, users can access both slotted 2-3 hour deliveries through BigBasket Supersaver and 10-20 minute deliveries via BBnow.

BigBasket is streamlining its services by consolidating all offerings into a single app, eliminating the fragmented approach of separate divisions.

In the coming months, the company plans to transition away from its slotted two-three hour deliveries and focus exclusively on the 10-20 minute delivery model, Moneycontrol reported.

“We’re putting two pieces of our business together. BBdaily is currently a separate app and by December, we’ll bring that also into the main app, into one single interface, and call it subscription,” Hari Menon, CEO of BigBasket said.

BBdaily plays a key role in BigBasket’s overall business, contributing approximately INR 150 Cr out of the company’s INR 1,100-1,200 Cr revenue, making it the third-largest unit. BigBasket Supersaver, the slotted delivery model, generates the largest share at INR 700 Cr, while BBnow, the quick commerce division, accounts for INR 350 Cr. A

Although the other units are profitable, BigBasket is currently investing in its quick commerce segment to stay competitive with rivals like Blinkit, Swiggy Instamart, Zepto, and newer players such as Flipkart Minutes, according to CEO Hari Menon.

BigBasket entered instant delivery service with BBNow in 2022, joining the qcommerce segment alongside the existing players such as Swiggy, Blinkit, Zepto and Dunzo.

As per a report by brokerage CLSA , the gross order value of major quick commerce players is expected to reach $10 Bn by the financial year 2025-26 (FY26).

The brokerage added that Zomato-owned Blinkit stands to benefit the most from this quick commerce boom. It expects Blinkit’s EBITDA and net profit to turn positive by FY25.

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Online travel aggregator (OTA) EaseMyTrip has incorporated a wholly owned subsidiary Easy Green Mobility to foray into the electric bus manufacturing market.

The traveltech major said it will invest INR 200 Cr for R&D, product development, and setting up a manufacturing plant over the next 2-3 years. Easy Green Mobility will manufacture ebuses and operate via EaseMyTrip’s other subsidiary YoloBus.

EaseMyTrip acquired the inter-city travel platform YoloBus in 2021. Currently, the platform has a network covering over 250 routes across the country. Easy Green Mobility plans to build a plant with a capacity of producing 4,000-5,000 ebuses in the initial phase. The production capacity will be ramped up going forward.

Following the announcement, shares of EaseMyTrip jumped over 12% to touch an intraday high of INR 44.3 on the BSE.

It is pertinent to note that the development comes when the country’s EV industry is expanding rapidly. After the surge in adoption of electric two-wheelers over the last few years, the government is now focusing more towards electrification of public vehicles.

With the foray in the ebus manufacturing segment, EasyMyTrip will lock horns with its OTA competitor ixigo. While ixigo is not in the business of manufacturing ebuses, it is one of the backers of ebus operator Fresh Bus.

EasyMyTrip’s newest subsidiary Easy Green Mobility will also compete with publicly listed players Olectra Greentech, Ashok Leyland’s subsidiary Switch Mobility, Tata Motors, and a few other automotive giants.

Commenting on the new launch, Rikant Pittie, cofounder of EaseMyTrip, said that the demand for ebuses will grow to 1,25,000 to 1,50,000 units per annum in a decade. 

“The current market dynamics present a significant opportunity to enhance supply and meet the growing demand for electric buses by localising production and creating a fully ‘Make-In-India’ product,” he said. “Through the FAME scheme, state-level policies and PLI schemes, the government is encouraging the adoption of electric buses across the country.” 

It is worth noting that the FAME-III subsidy scheme, which is still under discussion at the central government level, is expected to have a heightened focus on subsidies ebuses and etrucks.

Pittie said that the move to enter ebus manufacturing space aligns with the startup’s plans to expand the non-air business and will help EaseMyTrip establish a strong foothold in the growing EV and emobility sector.

Easy Green Mobility will leverage EaseMyTrip’s brand presence and industry expertise to play a role in the dynamic EV market. The company aims to integrate cutting-edge technology with robust manufacturing practices to produce high-performance ebuses to enhance efficiency, safety, and passenger comfort.

By 2027-28, the company targets to operate over 2,000 ebuses across the country.

EaseMyTrip posted a net profit of INR 33.9 Cr in the June quarter (Q1) of FY25 on an operating revenue of INR 152.6 Cr.

Recently, the startup also acquired a 5% stake in B2B travel Portal E-Trav Tech Limited as part of its aim to diversify its portfolio in the non-air segments. 

Earlier this year, EaseMyTrip also launched a new insurance broking subsidiary, EaseMyTrip Insurance Broker Private Limited.

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When we looked at the state of exits for venture capital funds in India last week, several fund managers — former and active — texted me about how many of these funds on the exit path are acting out of desperation. To add context, my sources pointed to SEBI’s changes released in April around the one-year extension for funds to begin their liquidation process.

The extension itself is not a new development, as funds have typically received a 1+1 year extension for some time now. However, SEBI also changed its rules related to liquidation in April this year after several limited partners approached the regulator about funds delaying fund closures beyond these extensions.

Before we get to these rules, it’s important to understand that all AIF schemes in India or venture capital funds in common parlance have a fixed tenure. This depends on the fund itself and what kind of exit horizon it has set for its limited partners i.e. the investors that infuse the capital which is eventually invested in startups.

Some LPs want to invest in short horizon funds that commit to returning the capital and a profit in five to six years, but on average AIF schemes have a tenure of seven years. Over and above this, there is an extension from SEBI to close the fund. So a fund or AIF scheme that was announced in 2015 is more or less nearing its expiration in 2024 and 2025.

In recent times, SEBI has stepped up its scrutiny of AIFs that are seeking to extend tenures, because in many cases these funds were simply buying time and did not have a plan to liquidate their funds. Given the explosion of startups in the years following 2015, we can surmise that plenty of AIFs are currently either in their liquidation period or have already exhausted the extension from SEBI.

Many of these funds are some of the oldest in the country and were set up between 2015 and 2017, at a time when startups were just emerging as an asset class. This vintage of AIFs has seen plenty of upheaval too with the global economic slowdown in 2018 as well as the pandemic in 2020 and 2021. But through these cycles, the likes of Orios VP, IndiaQuotient, Kalaari Capital, Chiratae (formerly IDG), Blume and other VCs have closed funds and returned capital to investors.

These and other noted VCs from the Indian ecosystem will be close to their fund expiry dates in 2025 and 2026 as well. And as such SEBI’s rules for liquidation are most applicable for these funds, as well as their LPs and portfolio companies.

Why AIF Liquidation Rules Matter

In this context, the liquidation period refers to the one-year period following the completion of an AIF’s tenure, during which the fund manager has to liquidate all the fund’s unliquidated assets and distribute the proceeds to limited partners.

This is followed by a dissolution period and this can be opted by funds to deal with unliquidated investments, as long as there is LP consent.

This is undoubtedly one of the most challenging positions for a VC fund, where it has to look for buyers for assets that may not be all that attractive for the market even at a discount.

In the past, SEBI had allowed funds the flexibility to roll over unliquidated assets to a new scheme or fund, but this was not a route that limited partners were happy about. LPs would not only have to bear the risk of the asset remaining unattractive even under a separate AIF scheme, but also would have to bear tax expenses out-of-pocket with no other recourse under tax and foreign exchange laws. This option has been rescinded because of the tax implications for LPs and the fact that AIFs can exploit this loophole to keep limited partners on the hook for their returns.

The other option, i.e. pro-rata distribution of the asset to limited partners, was also a no-go as this would put private companies in a tricky position regulation wise.

Pro-rata distribution also known as in-kind distribution means LPs will get equivalent securities to avoid capital gains tax on liquidated holdings. LPs will have access to all information on the available bids prior to choosing between an in-kind distribution or a dissolution period, during which the assets will be opened for bids to the open market.

As per the Companies Act, 2013, a private unlisted company cannot have more than 200 shareholders and the number of LPs in any fund can go as high as 150. If each fund allocated shares from unliquidated assets to individual LPs, then the company would have to convert into a public limited company, which is simply not possible for most of the startups.

Given these challenges, SEBI brought in the new rules earlier this year, which give AIFs some leeway and flexibility in terms of closing their funds and giving returns to LPs.

Is SEBI Simplifying Fund Liquidation?

As we were told by a number of fund managers, closing a fund at one time was a major headache, but the new rules do make it simpler for VCs to manage this process if not get the best outcomes.

Under this, AIFs can avail a dissolution period with the consent of 75% of its LPs by the value of their investment in the scheme being liquidated. Such consent has to be sought only during the AIF’s liquidation period and cannot be secured ahead of time.

This consent procedure mandates that AIF managers obtain bids, on a consolidated basis for all unliquidated assets of the AIF, from the market and offer proportionate exits to investors who do not wish to continue under the dissolution period.

If an AIF manager is unable to obtain bids from the market but has obtained the 75% consent of its LPs, then the dissolution period can still go ahead. But as a penalty, such fund managers are required to report their performance to benchmarking agencies, with unliquidated assets to be reported at a value equivalent to INR 1, regardless of finally realised value.

This move by itself does not devalue the asset but is seen as a benchmarking exercise that can be used to certify and rate fund managers in the future. This is a crucial exercise to be seen along with the NISM certification requirement, which we wrote about last month.

With these two barometers — the certification to operate a fund and the benchmarking to map its performance — SEBI is making it extremely clear that it will not accept fly-by-night AIF operations or funds that are falling foul of their responsibility in terms of due diligence and portfolio governance. That’s been one of the key concerns raised by limited partners in the past two years.

Besides clarifying some of the rules pertaining to liquidation and dissolution of funds, SEBI has sought information reporting from AIFs that want to avail of the year-long extension to initiate liquidation.

AIF managers need to submit details of the AIF, the unliquidated portfolio and its value, and pending investor complaints. Those AIFs entering into a dissolution period after the liquidation period are required to file an information memorandum with SEBI, accompanied by a due diligence certificate from a merchant banker.

Are VC Funds Relieved? 

SEBI’s requirements do increase the potential compliance burden for VC funds, but fund managers have welcomed these rules, especially given the reputational damage to some VCs in light of the value erosion in their portfolios.

However, in practice, most AIFs in India have not yet adopted the new regulations since they are so new, and as per experienced fund managers that we spoke to, there’s still a lot of uncertainty about how this might play out in the long run.

“Nobody knows whether the new regulations are better for funds because they are new to everyone. Even experienced fund managers don’t yet know whether the new regulations are better since the adoption is ongoing,” according to a veteran fund manager who has invested in startups through AIFs since 2013.

The fund manager quoted above closed their first fund in 2021-22 after availing the 1+1 year extension offered by SEBI. That particular fund delivered 5X-6X returns for LPs, an outcome that funds today might welcome with open arms.

On the flip side, some startup founders might find themselves at the wrong end of secondary deal structures as funds push to get bids for unliquidated assets.

As per one Bengaluru-based early stage and growth stage AIF founder, even in good times and at the peak of market liquidity during the pandemic, the discount for secondaries was 10% on average.

In the run-up to 2021, for instance, we saw several secondary deals led by PE funds as half a dozen startups lined up for IPOs, including the likes of Paytm and Zomato. It’s possible that many of these institutional funds were nearing end of life in 2021.

Plus, in July 2021, Tiger Global, Matrix Partners (now known as Z47) and others sold some of their stake in Ola Cabs parent ANI Technologies to Temasek and Warburg Pincus for $500 Mn. This is one of the biggest secondary deals in the Indian startup ecosystem, which also gave an exit to some investors who had backed startups acquired by Ola such as TaxiForSure.

For the above Ola example, Matrix launched its ‘Matrix Partners India II’ fund in 2011, and it invested in the likes of Ola and OfBusiness through this second fund. According to Pitchbook, the fund has been closed, and it was very likely up for liquidation by 2022. Besides Ola, Matrix saw a partial exit from OfBusiness via a secondary sale to Alpha Wave and Tiger Global in 2022.

Some of those secondaries in 2021 came at a discount even though the market had high liquidity, and now, with the future uncertain, those in the market for secondaries in 2024 enjoy the advantage of getting an even bigger discount. “In the VC world, this discount is called the liquidity discount. Even in good times when the market is pretty good, it is generally considered to be 10%. If the asset does not have super demand, the secondary buyer will always get a discount and this depends on the asset.”

Prominent examples of discounted secondaries in 2024 include the likes of SoftBank-backed Eruditus, Insight Partners-backed Postman, and SaaS startup MoEngage, among others. Bengaluru-based ecommerce unicorn Meesho is also reportedly in talks for a primary infusion and secondary deal at a discount of 20%.

But for every unicorn and scaled up startup, there are assets that have seen deep value erosion. Offloading these assets or finding bids for them in the open market might become a steep uphill battle for inexperienced fund managers and even some experienced ones.

Buyer’s Market For VC Assets AKA ‘Caveat Venditor’

Like 2021, and to some extent 2022, this is a great year for secondaries but largely for buyers. For VCs, there is a feeling of being resigned to heavy discounting.

“There is no doubt that this is a buyer’s market. Many VCs are desperate to exit their funds and show some positive track record in terms of LP returns. For many of the professional fund managers, this is a litmus test and therefore some of them might pressurise founders to execute deals quickly,” the VC firm founder quoted above added.

Fund managers are more than happy to enter secondaries as it creates a positive track record as far as their performance is concerned.

SEBI’s streamlined process penalises the AIF managers for failing to liquidate an AIF’s investments within its original or extended tenure, given the mandate on performance reporting. As a result, many fund managers are likely to be in the midst of discussions for secondary transactions and structures are being planned in light of some of these deals happening in IPO-bound companies.

On the founder side, there are concerns about increased due diligence burden as well as potential mismatch in terms of the expectations of the incoming investors and the business trajectory. But these points of friction are part of building a startup with VC money.

“Founders have to accept that if there was a time for primary rounds and capital infusion, it will be followed by a time for secondaries and exits. This is part and parcel of venture investing, and there is no doubt that some founders may feel shortchanged, but that’s the reality they have to accept,” said a third Bengaluru-based fund manager.

In fact, according to this individual, founders who pose hurdles to their shareholders in terms of secondaries are doing a disservice to the ecosystem and risk being blacklisted by VCs in the future. There’s undoubtedly bound to be some friction though.

Despite SEBI’s regulations and clarity on the liquidation path, there are practical challenges in going through this process. Plus, the introduction of performance reporting for AIF managers at the end of a fund’s lifecycle means for the first time many VCs and their track record will be out in the open.

VC industry insiders believe this had to happen because SEBI is looking at private market investments through the same lens as it does public markets. The regulator’s focus has clearly been on cleaning up the fluff from the frothy AIF market, but these regulations have second and third-order impacts.

Founders might soon find themselves with investors that don’t fit their vision, while funds might have to settle for discounts even for assets that might grow into their promise in the years to come. And for VC fund managers dealing with the liquidation process, it’s not just returns at stake but also reputation.

The post End Of Life Blues For India’s VC Pioneers appeared first on Inc42 Media.

Bhavish Aggarwal-led Ola Electric is gearing up to enter the electric three-wheeler (3W) market to take on the likes of Euler Motors, Piaggio, Mahindra Electric, among others.

Ola Electric is developing an in-house electric three-wheeler and plans “to bring it to the market soon”, CEO and managing director Aggarwal told CNBC-TV18. However, he did not provide a specific timeline for the launch.

Aggarwal said that erickshwas have been on the company’s radar since its inception and it has also demonstrated technology focussed on the product.

Ola Electric’s planned foray into the EV 3W segment has been influenced by the company’s interaction with driver partners on the Ola Cabs platform on themes such as the challenges facing them and their propensity towards electric vehicles.

As per a separate report by The Economic Times, Ola Electric might unveil its 3W EV, presumably named ‘Raahi’, within the next 3-4 months.

Ola Electric’s forthcoming EV 3W Raahi reportedly has a minimalist design with the vehicle’s front profile equipped with square headlights, a large windshield, A-pillar mounted outside rear view mirrors (OVRMs) and doors to ensure cabin safety.

Apart from the passenger version, Ola Electric is also expected to launch a goods carrier variant of its 3W EV to cater to its diverse clientele, as per the report.

Ola Electric’s entry into the Indian electric 3W market will directly pit it against incumbents such as Mahindra, Bajaj and Piaggio, among others, who currently offer their products in the range of INR 2 Lakh to INR 3.5 Lakh.

Ola Electric could price its upcoming EV 3W below the industry’s upper price range, mimicking the pricing undercut approach it has taken with its Roadster series of ebikes to lure customers.

As per Vahan data, sales of electric 3Ws surged 66% year-on-year to 5.8 Lakh units in 2023. Moreover, electric 3Ws made up 50% of overall three-wheeler sales that year.

It is pertinent to note that Ola Electric’s consolidated net loss widened 30% to INR 347 Cr in the June quarter of the financial year 2024-25 (Q1 FY25) from INR 267 Cr in the year-ago quarter. With its EV 3W bet, the company will look to chart a course to profitability. 

During the interaction with CNBC-TV18, Aggarwal said Ola Electric’s EV business is close to breaking even on an EBITDA level. 

This comes at a time when the Centre is looking to accelerate EV penetration in the country. Recently, union minister for heavy industries H. D. Kumaraswamy said that the Centre will roll out the third edition of its demand incentive scheme for EVs, FAME-III in the next two months.

Shares of Ola Electric ended Thursday’s trading session 4% higher at INR 115.25 apiece on the BSE.

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Social media juggernaut Meta has announced a two-year partnership with the Telangana government to scale up e-governance and citizen services while tapping artificial intelligence technologies.

The collaboration will focus on deploying e-governance solutions leveraging Meta’s open-source generative AI technologies, including the latest ‘Llama 3.1 model’, PTI reported.

The report further said that the strategic partnership will empower public officials and citizens with the latest emerging technologies like AI to enhance e-governance and citizen services. 

“Advancing ongoing efforts to foster innovation in the field of Artificial Intelligence (AI), Meta today announced a two-year partnership with the Department of Information Technology, Electronics and Communications (IT, E&C), Government of Telangana,” the statement said.

The initiative aims to transform various aspects of public service delivery and e-governance, while also enhancing efficiency and productivity of government departments and agencies through the use of generative AI. 

“This strategic partnership is aligned with Meta’s open approach to AI innovation and Telangana’s digital leadership, aiming to harness the potential of AI to drive social and economic opportunities in the state, while addressing unique local needs, and paving the way for groundbreaking solutions,” the statement added.

This partnership builds on Telangana’s existing efforts in the AI space. For the uninitiated, the state has already established a Centre of Excellence on Gaming, VFX, Computer Vision & AI in Hyderabad, branded as IMAGE. 

This centre offers integrated programs, CVLAB, and Game Lab for startups, providing resources such as mentoring, technology support, and funding for Gaming, Animation, VFX, Computer Vision, and AI start-ups.

The Meta-Telangana partnership is part of a broader trend of AI initiatives across India. The central government announced the IndiaAI Mission in March with a budget of Rs 10,372 Cr. 

Other states are also making significant strides in AI adoption. Tamil Nadu has emerged as a frontrunner, recently partnering with Google to launch AI initiatives and announcing TN AI Labs in Chennai. The state has also implemented the first comprehensive state-level AI policy in India, focusing on ethical and responsible AI development.

The post Telangana Partners Meta To Boost E-Governance & Citizen Services Using AI appeared first on Inc42 Media.

The Delhi High Court (HC) on Thursday (September 5) issued a contempt notice to Wikipedia’s parent Wikimedia Foundation for not complying with its order to disclose the name of those who made alleged defamatory edits to news agency ANI’s Wikipedia page. 

While issuing the notice, Justice Navin Chawla reportedly gave Wikipedia a stern warning regarding its conduct in court. Further, the HC also summoned an authorised representative from Wikimedia to appear in person at the next hearing in October. 

“I will impose contempt…It is not a question of Defendant No 1 [Wikipedia] not being an entity in India. We will close your business transactions here. We will ask the government to block Wikipedia…Earlier also you people have taken this argument. If you don’t like India, please don’t work in India,” Justice Navin Chawla was quoted as saying by Bar and Bench. 

At the heart of the courtroom drama is a defamation case filed by ANI against Wikipedia. The news agency was described as a “propaganda tool for the incumbent central government” on its Wikipedia page.

ANI is seeking INR 2 Cr from Wikipedia for damages. 

In its August 20 hearing, the HC had directed Wikipedia to disclose the details of the subscribers who made the edit within two weeks. When the deadline was not met, ANI filed the contempt order.

In its response to the court’s order earlier, Wikipedia had reportedly said that it “does not add, edit or determine content published” on its website. “Wikipedia’s content is determined by its global community of volunteer editors (also known as the ‘Wikimedia Community’) who compile and share information on notable subjects,” the foundation said in a statement then, as per Mint.

With this, Wikipedia has become the latest tech major to get embroiled in regulatory and other tussles in India. Earlier this week, OTT giant Netflix’s key officials were summoned by the Ministry of Information and Broadcasting (I&B) to provide an explanation after its series ‘IC 814: The Kandahar Hijack’ caused an uproar.

Further, the likes of Amazon, Apple, Google, and Meta are also involved in multiple cases in India. 

The post “If You Don’t Like India, Don’t Work In India”: Delhi HC Issues Contempt Notice To Wikipedia appeared first on Inc42 Media.

Continuing its export push in India, ecommerce giant Amazon is looking to enable exports worth $5 Bn from Indian sellers in 2024.

With this, the cumulative exports from Indian businesses via Amazon would surpass $13 Bn by the end of 2024, the ecommerce giant said in a statement.

The target is part of the Amazon Global Selling initiative, which was launched in India in 2015. The ecommerce company aims to enable $20 Bn of cumulative exports from India by 2025, said Amazon’s director of global trade Bhupen Wakankar. 

Giving an account of the Global Selling Programme 2015, Wakankar said that Amazon enabled about 1.5 Lakh small Indian exporters to sell roughly $8 Bn worth of products directly to overseas consumers by 2023. 

“We’re investing significantly in tools and technologies to help sellers optimise their reach, enhance product discovery, and increase sales. The program’s success is reflected in the growing number of exporters building thriving businesses on Amazon’s global marketplaces. We will continue to support the growth of small businesses and startups by leveraging technology and strong linkages with different stakeholders,” Wakankar added. 

Amazon Global Selling is intended towards making exports easier and accessible for MSMEs and entrepreneurs across India and has exporters from over 200 cities across the country. 

While states like Maharashtra, Delhi, Gujarat, Rajasthan, and Karnataka lead in terms of number of exporters enrolled under the Amazon Global Selling programme, beauty, apparel, health and personal care, toys and home are among the popular categories. 

Amazon said it enables sellers to sell their products on over 18 Amazon global marketplaces in countries such as the US, the UK, the UAE, Saudi Arabia, Canada, Italy, France, Spain, Australia, Singapore, among others.

Commenting on the announcement, MoS for Skill Development and Entrepreneurship Jayant Chaudhary said, “Boosting MSME exports is crucial for our nation’s economic growth, and ecommerce is proving to be a powerful catalyst in this regard. Ecommerce exports, supported by programs like Amazon Global Selling, are instrumental in providing MSMEs with opportunities to showcase their products to a global audience.” 

The developments come at a time when companies are trying to diversify their sourcing beyond China amid geopolitical tensions. India has emerged as a significant beneficiary of this shift. Flipkart’s parent Walmart is also increasing exports from India in a bid to reduce its reliance on China.

Meanwhile, Amazon continues to bet big on India. With increasing internet connectivity, improving access to smartphones, and a fast-growing economy, the country has emerged as a big market for India.

Last year, Amazon CEO Andy Jassy committed to invest $26 Bn in India by 2030. 

Earlier today, it was reported that Amazon Web Services (AWS) is in discussion to invest an additional $2 Bn in Telangana to expand its data centre capabilities in the state.

However, Amazon also continues to face criticism as regulatory troubles from time to time in India. Last month, union minister Piyush Goyal flagged Amazon’s “predatory pricing policies” and said that the ecommerce major plans to invest billions of dollars in India only to offset its losses.

The post Amazon Targets $5 Bn Exports From Indian Sellers In 2024 appeared first on Inc42 Media.

Trade financing startup Drip Capital has raised a funding of $113 Mn in a mix of debt and equity. 

While Japanese investors GMO Payment Gateway and Sumitomo Mitsui Banking Corporation (SMBC) infused $23 Mn in equity financing, the startup raised $90 Mn debt from International Financing Corporation (IFC) and East West Bank.

In a statement, the startup said that the capital will support its market expansion plans and help it develop new products tailored to customer needs.

Founded in 2015 by Pushkar Mukewar and Neil Kothari, Drip Capital offers digitised trade financing solutions to small and medium business (SMB) clients in India, the US, and Mexico. 

The startup claimed that it has seen its revenue quadruple over the past two years while its customer base has doubled in the period. Further, it said it has expanded its services for SMBs by integrating forex and risk analytics solutions with its core trade financing products. 

Drip Capital said that it collaborates with over 9,000 sellers and buyers across 100+ countries. Mukewar told Financial Express that the startup has financed over 1.99 Lakh invoices involving $6.5 Bn since last year. Further, he claimed that it has a user base of over 2,700. 

“In 2022 and 2023, the global trade sector faced significant challenges, including rising interest rates that squeezed margins and restricted capital access for SMBs. Despite these challenges, Drip has emerged as the preferred trade finance platform for SMBs in the US and India… We’ve achieved cash profitability and expanded our business during this period,” Mukewar said. 

Commenting on the funding, GMO Payment’s executive vice president Ryu Muramatsu said, “We are proud to have supported Drip from its inception through both equity investment and debt financing… Drip’s innovative and comprehensive solutions in digital trade finance are transforming how SMBs engage in trade. We believe Drip’s technology and proprietary underwriting are uniquely positioned to address the challenges in this space.”

Drip Capital last raised $175 Mn from investors like TI Platform, Accel, Peak XV (then Sequoia India), Wing VC, Irongrey, and GC1 Holdings in 2021.

In late 2022, the startup laid off about 20% of its 400-member workforce in a restructuring exercise. 

The post Drip Capital Raises $113 Mn In A Mix Of Debt & Equity appeared first on Inc42 Media.

Nearly two years after being promoted as the cofounder of Adda247 from the position of CPO, Chandan Singh has quit the edtech startup.

Singh took to LinkedIn to make the announcement. In a post, he said that he moved on from the startup last month.

“Looking back on the past 5 years, I feel incredibly grateful for the journey I’ve had here. Working with such talented and dedicated people has been an absolute privilege, and the memories we’ve made will always be special to me,” his post read. 

While he didn’t mention exactly what his next plans are, Singh is apparently building a new venture in stealth mode, as per his LinkedIn bio. 

The IIM-A graduate joined Adda247 in 2019 as vice president of product. He got promoted to the position of chief product officer in 2020, a position he held for four years. Singh was also made the cofounder in November 2022.  

Prior to joining Adda247, he worked for companies like Naukri, DTDC, Coverfox, among others. 

Founded in 2016 by Anil Nagar and Saurabh Bansal, Adda247 offers online coaching for competitive exams. The edtech platform also offers video courses and mock tests for more than 500 competitive exams in 12 Indian languages. 

It has raised a funding of over $61 Mn till date and counts the likes of WestBridge, Google, and Info Edge among its investors. 

Earlier this year, the startup claimed that its revenue grew 88% year-on-year to INR 243.39 Cr in the financial year 2023-24 (FY24) from INR 129.65 Cr in the previous fiscal year. It also claimed that its net loss declined 66% to INR 101 Cr from INR 296 Cr in FY23. 

In July, the startup acquired Ekagrata Eduserv, marking its foray into the CA test preparation segment.

The post Adda247 Cofounder Chandan Singh Quits After 5 Years appeared first on Inc42 Media.

Union transport minister Nitin Gadkari has reportedly said that the Indian electric vehicle (EV) industry no longer needs government subsidies.

As per news agency PTI, Gadkari said that consumers are now choosing EVs on their own, making subsidies for EV players unnecessary. 

“Consumers are now choosing electric and compressed natural gas (CNG) vehicles on their own and I do not think we need to provide much subsidy for electric vehicles,” Gadkari said. 

Speaking at a green mobility convention in New Delhi, Gadkari also said that the cost of manufacturing EVs is high initially, but the increase in demand has resulted in lower production costs. This, he said, has rendered incentives unnecessary. 

Highlighting the lower GST rates on EVs compared to petrol and diesel vehicles, the minister said that the “ask for subsidies isn’t justified anymore”.

“My personal belief is now we don’t need too many subsidies. The GST on petrol, diesel vehicles is 48%, the GST on electric vehicles is only 5%. Still, after getting 5% GST, if someone is expecting a subsidy from the government, my honest opinion is now we don’t need subsidies,” Gadkari added.

The minister also underlined falling battery costs as a key factor driving EV affordability, adding that lithium-ion battery prices have dropped from $150 per kilowatt-hour to $107-108 per kilowatt-hour. 

Gadkari predicted that within two years, EV prices would reach parity with internal combustion engine vehicles.

“Now, five companies are starting lithium-ion battery (production),” Gadkari added, referring to manufacturers benefiting from the government’s production-linked incentive for advanced chemistry cells (PLI-ACC).

The statement comes as the government prepares to roll out the third iteration of the FAME scheme. It was initially expected to be a part of the Union Budget 2024 but union minister H.D. Kumaraswamy, in the run up the Budget, confirmed its exclusion citing ongoing preparations. 

The scheme, with an expected outlay of INR 10,000 Cr to INR 12,600 Cr, is now likely to be implemented within the next two months. It will replace the interim Electric Mobility Promotion Scheme (EMPS) that was introduced after FAME-II ended in March 2024.

However, industry leaders have expressed mixed opinions on the necessity of continued subsidies. Ola Electric founder and CEO Bhavish Aggarwal said last month that while the EV industry is less dependent on FAME subsidies, some support is still beneficial.

Alternatively, Bajaj Auto CEO Rajiv Bajaj said, “There’s no party happening as of now in the electric two-wheeler space.” He noted that EV penetration remains at 4-5% despite subsidies and discounts.

The post EV Makers No Longer Need Subsidies: Transport Minister Nitin Gadkari appeared first on Inc42 Media.

The Goods and Services Tax (GST) Council may reportedly consider a proposal that seeks to impose an 18% levy on payment aggregators (PAs) for facilitating certain small value digital transactions. 

Sources told CNBC-TV18 that the proposal includes charging PAs 18% GST for processing transactions up to INR 2,000 made via debit and credit cards. As per the report, a final decision will be taken by the Council post the recommendations of the rate fitment committee.

The report added that the fitment panel believes that the payment aggregators act as intermediaries for such transactions and can’t be treated as banks. As a result, the fitment committee is in favour of levying GST on these PAs. 

Under the current rules, payment aggregators are exempted from GST on transactions below INR 2,000. 

In 2016, in the wake of demonetisation, the Centre waived off the service tax on debit and credit card transactions under INR 2,000 to boost digital payments. The exemption was announced in late-2016, nearly eight months before the introduction of the Goods & Services Tax in July 2017.

The move to impose GST on small value transactions could have a direct bearing on multiple fintech startups with PA licences, including Pine Labs, Razorpay, PayU, Infibeam, among others. 

While these fintechs charge anywhere between 0.5% to 2% as payment gateway fees per transaction, they may be saddled with additional levies, which could eventually be passed on to the customers or merchants. 

The move could increase compliance burdens for their clients and add financial burden on end customers. 

The development comes at a time when the Reserve Bank of India (RBI) has been approving PA licence applications of fintech startups in droves. In June, the central bank gave its nod to Aurionpro and Hitachi Payment Services to operate as a PA. 

Since December last year, more than 20 companies including Groww, Zoho, Juspay, Decentro, CRED, PayU, Enkash, Pine Labs, Amazon Pay, among others have also received approval to operate as a payment aggregator. 

Earlier in the day, PayGlocal also received nod from the RBI to operate as online merchant payments company

Interestingly, the RBI, in April 2024, also issued draft papers to regulate offline payment aggregators and sought feedback and comments from fintechs and industry bodies. However, multiple fintech startups have voiced their concerns over the mandatory physical KYC verification requirement for merchants in the draft rules. 

As per a report, the Indian payment gateway market is projected to grow to a size of $2.66 Bn by 2029.

The post GST Council May Impose 18% GST On PAs For Transactions Below INR 2,000 appeared first on Inc42 Media.

Quick commerce major Zepto is all set to launch a new feature, ‘Zepto Postpaid’, which will likely mark the startup’s foray in the buy now, pay later (BNPL) segment.

Zepto teased the new feature on its app, asking users to join the waitlist to get an ‘exclusive early access’. As per the limited information available on the app, Zepto Postpaid will offer users “interest free repayments” of up to INR 5,000.

Responding to Inc42’s questions about Zepto Postpaid, a company spokesperson said, “It’s still a bit early for us to provide specific details on Zepto Postpaid, but rest assured, we’ll share all the relevant info as soon as it’s concrete.” 

This comes months after BNPL startup Simpl partnered with Zepto in April this year. According to a report by Financial Express, the partnership saw Zepto get access to Simpl’s one-tap checkout option for its membership programme Zepto Pass. 

Simpl, in a statement at the time, said it aimed to increase its checkouts on Zepto to 100 Mn by 2026.

Zepto’s rival, Zomato-owned Blinkit already offers BNPL service to its users via its partnerships with PayU’s LazyPay and Simpl. 

The development also comes at a time when the competition in the country’s quick commerce space is intensifying. While Zepto, Blinkit, and Swiggy Instamart are engaged in a three-way battle, Flipkart Minutes and BigBasket plan to give a tough challenge to these startups.

Zepto has been on a funding spree this year to solidify its position in the crowded quick commerce segment. Days ago, the startup raised $340 Mn in a financing round led by General Catalyst which catapulted its valuation to $5 Bn.

A couple of months before that, Zepto raised $665 Mn in a funding round co-led by Glade Brook, Nexus, and StepStone at a valuation of $3.6 Bn. 

With a cumulative capital infusion of over $1 Bn this year, the startup is looking to double its dark store count to 700 by March 2025 from 350 in June.

On the financial front, Zepto saw its operating revenue surge 14.3X to INR 2,024.3 Cr in the financial year 2022-23 (FY23) from INR 140.7 Cr in the previous fiscal. Meanwhile, net loss jumped 3.4X year-on-year to INR 1,272.4 Cr during the year under review. 

The post Flush With Funds, Zepto Likely To Enter BNPL Segment With ‘Zepto Postpaid’ appeared first on Inc42 Media.

Union IT minister Ashwini Vaishnaw has been featured on TIME Magazine’s 2024 list of the 100 most influential people globally in the space of artificial intelligence (AI). 

In a short biography for Vaishnaw, the magazine said that the Minister has been leading India’s efforts to become a “major player in the world of AI”.

“Under Vaishnaw’s leadership, the country hopes to become one of the top five countries for semiconductor manufacturing—a key component for modern AI systems—within the next five years. Construction has begun on several factories,” the magazine said. 

The report also underlined that Vaishnaw faces “significant challenges” in realising India’s AI ambitions as the country’s tech sector “struggles with low private R&D (research and development) investment and a lack of advanced manufacturing ecosystems”. 

It also flagged the high import tariffs on electronic components, global competition for resources, and the complexity of rapidly upgrading infrastructure as other key hurdles to India’s AI dreams. 

Titled ‘TIME100 Most Influential People in AI 2024’, the list also featured Infosys cofounder and Aadhaar architect Nandan Nilekani as one of the biggest faces in the field of emerging technology. 

Nilekani grabbed a spot on the list on account of his latest project ‘Adbhut India’, a non-profit collective that aims to create public infrastructure to enable AI developers to build India-specific products. For instance, Adbhut India is developing datasets of Indic languages and India-specific benchmarks.

Another Indian on the list was actor Anil Kapoor, who grabbed the limelight for his landmark legal victory in September last year in connection with the unauthorised use of AI to create content bearing his “likeness”.

Meanwhile, multiple other Indian-origin executives of US-based tech giants also grabbed a spot on the list, including Microsoft CEO Satya Nadella, Alphabet CEO Sundar Pichai, Perplexity CEO Aravind Srinivas, head scientist of artificial general intelligence at Amazon Rohit Prasad, among others. 

Curiously, social media platform X and AI company xAI’s CEO Elon Musk did not feature on the list. 

The list comes at a time when India has ramped up its focus on promoting and spurring the adoption of AI through a slew of sops and policy initiatives. The Centre’s ambitious IndiaAI Mission aims to increase the country’s computing capacity, increase access to high-quality datasets and push the homegrown AI startup ecosystem with funding. 

Owing to the growing AI mania and the regulatory push, India, as per Inc42, is home to more than 100 GenAI startups that have raised more than $600 Mn between 2019 and 2023. 

As per an Inc42 analysis, India’s GenAI market is projected to see a major boom in the coming years and is expected to cross the $17 Bn mark by 2030. 

The post Ashwini Vaishnaw, Nandan Nilekani On TIME’s List Of 100 Most Influential People In AI appeared first on Inc42 Media.

InMobi-owned Roposo is in the process of moving to a social commerce model and broadening its focus on short videos beyond the creator economy.  In its new avatar, Roposo will look to replicate the social commerce model popularised by Meesho before the latter pivoted to a marketplace model. 

Currently in a transitional phase, Roposo has stopped new user signups and existing users cannot edit or post content, even though the Roposo app and website are still functional. 

Mansi Jain, senior vice president and general manager of Roposo, told Inc42 that the platform is pivoting from a creator or influencer-led commerce model to social commerce where anyone can sell or resell products within their circle of influence. 

This is essentially the pitch used by Meesho and Limeroad before at least Meesho moved to a marketplace model in 2022. Jain indicated that Roposo would allow users to set up their own stores and use the platform to extend reach. She also claimed product development for the new model is in advanced stages and it will be launched as early as November. 

“Roposo in its current form was purely driven by influencer and brand collaborations, where the users could consume content and shop directly from the app, while the order fulfilment was being done by us. However, we are now making it more interactive with users using GenAI tools to sell products online,” Jain told Inc42.

Jain added that the full potential of AI in commerce hasn’t been leveraged yet and InMobi is looking to fill the gap allowing users to leverage GenAI tools to post content, videos and sell or resell products. 

In its earlier format, Roposo allowed the creators and influencers to use dropshipping to deliver products through Roposo Clout. Influencers could use Shop 101 (also acquired by InMobi) to purchase products and sell them on the Roposo app for a cut of the transaction. 

It wasn’t immediately clear whether the users on its social commerce platform can also avail products and services from Clout or Shop 101.

InMobi acquired Roposo in 2019 and was one of the dozens of short video apps that looked to fill the vacuum left behind by TikTok in 2020 after its ban from India. It was originally acquired to bolster InMobi’s Glance product which displays ads and links on smartphone lockscreens 

Before the acquisition, Roposo had raised $38 Mn in funding from investors such as Tiger Global, Bertelsmann India.

InMobi is meanwhile planning to expand its video commerce business substantially by integrating GenAI tools within Glance and Roposo. Naveen Tiwari, CEO, InMobi reportedly said that leveraging AI for Glance would unlock new consumption patterns by helping smartphone users buy from their lock screens instead of from individual apps. 

Video Commerce Gaining Traction?

With Instagram and YouTube dominating in terms of users, Indian short video apps have struggled to monetise and have looked at various new streams to remain relevant. VerSe Innovation’s Josh and ShareChat-backed Moj have tested video commerce in the hope that it will bring in the users and brands, but the outcome has not been favourable in terms of revenue and traction. 

In June this year, Flipkart said that video commerce offering is gaining popularity with more than 75 Mn users having watched videos while shopping on the app between January 2024 and June 2024 on its curated video sections ‘Liveshop+’ and ‘Vibes’.

“We have realised that just short-form content will be extremely challenging to monetize in the wake of increasing streaming costs, server expenses and influencer charges. Ecommerce industry growth in particular that of quick commerce platforms has also led to many players now strategising ways to engage audiences/ users and which is why video commerce will be crucial,” VerSe CEO Umang Bedi told Inc42 earlier. 

InMobi’ is betting that features such as product discoverability will set it apart from others in this space. Roposo’s Jain added that AI will unlock new commerce behaviour. “The world of Gen AI can change the way products are being sold and purchased which is what we are working on now and will be launched soon,” she claimed.

[Edited By Nikhil Subramanian]

The post InMobi’s Roposo Turns To Social Commerce To Solve Short Video Monetisation appeared first on Inc42 Media.

It’s the season of spring for startup IPOs. After a lull in IPOs in 2022 and 2023 due to geopolitical tensions, a raging funding winter, and macroeconomic pressures, startups are lining up in droves to list on the bourses in 2024. 

Ten new-age tech companies have listed on the exchanges so far this year – Go Digit General Insurance, FirstCry, Unicommerce, TBO Tek, Ola Electric, Awfis, ixigo, Menhood, TAC Security and Trust Fintech. 

In contrast, just five startups listed in the entirety of 2023 and three new-age tech companies made their way to the bourses in 2022. 

While most of the anticipated action on the IPO front in 2024 seems to have already culminated, the Indian startup ecosystem still has a few aces up its sleeves. Segment giant Swiggy, logistics major Ecom Express and coworking startup Smartworks are also eyeing a market debut in the next few months. 

But, what is emboldening the startups to revisit their IPO plans, a year after many of them shelved or postponed their plans? The answer is the thawing funding winter, a renewed push for profitability and a growing investor appetite for startup IPOs. 

Speaking with Inc42, angel investor Nikhil Parmar said, “Firstly, many startups have matured to a point where they are ready for public markets, driven by strong growth, robust business models, and proven revenue streams. Additionally, favourable market sentiment and ample liquidity have made the stock market an attractive option for raising capital. Investor confidence is also a significant driver”.

Concurring with this, angel investing platform BizDateUp Technologies cofounder Meet Chandan said that the IPO spring has also been fuelled by investors looking to diversify their portfolio and the promise of substantial returns from tech-driven companies.

What has also helped the ecosystem is the bumper listing of most of the new-age companies in 2024 so far. From TBO Tek and Awfis to GoDigit Insurance, Unicommerce and ixigo, all have listed at a premium and many have even seen healthy rallies post their listing. 

Non-institutional investors (NIIs) and qualified institutional buyers (QIBs) are seeing merit in backing the growing number of Indian startups making a beeline for the bourses. However, challenges remain. 

Investors are primarily focussed on profitable and sustainable ventures and are steering clear of loss-making entities. Awfis, which reported a profitable quarter after its listing, was an outlier in this regard. Additionally, strong corporate governance guardrails and compliance with existing regulations also seem to be on the top of investors’ agenda. 

“Markets currently are receptive to IPO-bound companies with a good brand, decent unit economics and a clear path to profitability. Public markets are hungry for tech stocks and are welcoming good companies with open arms. So, it’s only natural that more founders would want to take their companies public. This is a great sign for the ecosystem,” said VC firm All In Capital’s cofounder Kushal Bhagia.

Parmar believes that the surge in IPOs amid the funding winter showcases the startup ecosystem’s resilience and adaptability. It also reflects the growing maturity of the ecosystem. 

With this in mind, Inc42 has collated a list of all top Indian startups that have listed on the bourses in 2024 so far as well as those who plan to go for IPOs in the near term. Before we dive into the list, here are the latest developments from the Indian IPO landscape:

Latest Updates:

• Coworking space provider IndiQube is in advanced discussions to finalise the merchant bankers and is aiming to file its DRHP within the next three months

• OfBusiness is close to finalising the bankers for its up to $1 Bn public issue at a valuation between $6 Bn to $9 Bn

• EV maker Pure EV has also announced its plans for an initial public offering  in 2025

Now, let’s take a detailed look at the list: 

Startups That Have Listed In 2024

This is not a listing of any kind. The startups have been listed in an alphabetical order | Data has been sourced from Inc42, respective DRHPs, MCA filings and other media reports | Asterisk (*) specifies reported numbers:

Awfis

Founded in 2015 by Amit Ramani, Awfis has evolved from just being a coworking network to a tech-enabled workspace solutions platform, catering to freelancers, startups, SMEs, large corporates, and MNCs.

The coworking space provider filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) in December last year. The market regulator greenlit the company’s public issue in April 2024 

The startup made its debut on the bourses in May this year. It listed on the BSE at INR 432.25 per share, a premium of 12.8% to its issue price. Similarly, it opened on the NSE at INR 435 apiece – 13.5 % higher than the issue price.

Awfis reported a profit of INR 1.4 Cr in Q4 FY24 against a net loss of INR 13.8 Cr in the year-ago period. Operating revenue also jumped over 45% year-on-year (YoY) to INR 232.3 Cr in the quarter ended March 2024.

FirstCry

Founded in 2010, FirstCry is an omnichannel mother and kids-focused marketplace. It sells diapers, toys, apparel and cribs, as well as provides daycare facilities and runs a chain of play schools and preschools in India.

The Pune-based startup refiled its draft IPO prospectus in April following a directive from SEBI to include key metrics in its DRHP, first filed in December 2023. The company received the market watchdog’s approval for a public listing in July.

FirstCry’s IPO comprised a fresh issue of shares worth INR 1,816 Cr and an OFS component of 5.4 Cr equity shares. However, the company later reduced the size of its fresh issue by around 8% to INR 1,666 Cr, as per its RHP. 

The omnichannel marketplace raised INR 1,885.82 Cr from 71 anchor investors at INR 465 per equity share ahead of the IPO. 

The company made a strong debut on the bourses and its shares opened at INR 651 on the NSE, a premium of 40% over its issue price of INR 549. On the BSE, the shares listed at INR 625, translating into a 34.4% premium.

FirstCry clocked sales of INR 6,480.8 Cr in FY24, up 15% from INR 5,632.5 Cr in FY23. Meanwhile, its loss declined almost 34% YoY to INR 321.5 Cr in FY24.

Go Digit General Insurance

Founded in 2016, Go Digit offers insurance policies across verticals like health, motor vehicle, travel, property, and more.

The insurtech unicorn refiled its DRHP with SEBI in March after the capital markets regulator flagged concerns over its employee stock appreciation rights scheme. 

The Bengaluru-based startup’s IPO comprised a fresh issue of shares worth INR 1,125 Cr and an OFS component of 5.47 Cr equity shares.

The Virat Kohli-backed startup made a lukewarm debut on Dalal Street in May, listing at a 5.15% to its issue price. The stock listed at INR 286 apiece on the NSE and INR 272 on the BSE. 

Go Digit’s profit after tax (PAT) surged 74% YoY to INR 101 Cr in Q1 FY25 from INR 58 Cr in the previous fiscal year. Gross written premium rose 22.2% to INR 2,660 Cr in the quarter ended June 2024 from INR 2,178 Cr in the year-ago period.

ixigo

Founded in 2006, ixigo started as a travel search website to help users compare flight deals. In FY20, it rebranded as an online travel aggregator to offer services such as flights, trains, bus tickets, hotel bookings and holiday packages.

Le Travenues Technology Ltd, the parent company of ixigo, refiled its DRHP with SEBI in February. The travel tech startup got the market regulator’s nod to launch the public issue in May.

Its IPO comprised a fresh issue of shares worth INR 120 Cr and an OFS component of 6.67 Cr shares worth up to INR 620 Cr.

The startup made a stellar debut on the bourses in June this year. While the stock opened at INR 138.10 per share on the NSE, a premium of 48.5% from the issue price of INR 93, it made its debut at a premium of 45.16% on the BSE. 

Prior to that, the OTA’s public issue also saw high demand and was oversubscribed 98X. 

In Q4 FY24, ixigo posted a PAT of INR 7.4 Cr, up 55.2% from INR 4.7 Cr in the year-ago period. Meanwhile, revenue from operations jumped 20.4% YoY to INR 164.8 Cr Cr during the quarter compared to INR 136.9 Cr in Q4 FY23.

Menhood

Founded in 2019 by Dushyant Gandotra, Divya Gandotra and Shivam Bhateja, Menhood is a D2C men’s grooming brand that sells products such as trimmers, intimate perfumes, intimate wash and moisturiser, among others.

The startup’s parent entity Macobs Technologies Limited filed its DRHP in January 2024 for an IPO that comprised a fresh issue of 25.95 Lakh shares. Menhood’s public issue saw healthy response and was oversubscribed 157.5 times. 

The Jaipur-based brand eventually listed on NSE Emerge on July 24 at INR 96 apiece, a 28% premium to its issue price of INR 75.

Ola Electric

Founded in 2017, Ola Electric is an electric two-wheeler maker that currently retails a portfolio of five scooter models. The Bhavish Aggarwal-led startup is also planning to launch an electric autorickshaw in the coming days.

The Bengaluru-based startup filed its DRHP with SEBI in December 2023 for an INR 5,500+ Cr IPO. 

Ola Electric secured approval from the markets regulator for its IPO in late June. The EV major’s IPO comprised a fresh issue of shares worth up to INR 5,500 Cr and an OFS component of up to 8.49 Cr shares.

The company had set a price band of INR 72-76 per equity share for its public issue.

Ahead of the market debut, the EV major raised INR 2,763 Cr from 84 anchor investors, including SBI, HDFC, Nippon Life, Nomura Asset Management, Government Pension Fund of Norway, among others, at INR 76 per equity share. 

The EV maker’s public issue opened on August 2 and was subscribed 4.27X at the end of the last day of the bidding on August 6. 

Afterwards, the company had a muted market debut as the stock opened at a flat INR 75.99 apiece on the BSE as against its IPO issue price of INR 76. On the NSE, the shares opened flat at INR 76 apiece. 

In Q1 FY25, Ola Electric’s net loss widened 30% to INR 347 Cr from INR 267 Cr in the previous fiscal. Meanwhile, it reported sales of INR 1,644 Cr during the period under review, up 32% from INR 1,243 Cr in FY23.

TAC Infosec

Founded in 2016, TAC Infosec (also known as TAC Security) is a SaaS-based cybersecurity startup. It offers risk-based vulnerability management and assessment solutions, cybersecurity quantification, and penetration testing to enterprises.

The Vijay Kedia-backed startup filed its DRHP in January to list on the NSE’s small and medium enterprise (SME) platform NSE Emerge. 

TAC Infosec’s IPO only consisted of a fresh issue of 28.29 Lakh equity shares. The shares listed on NSE Emerge in April at INR 290, a whopping 173.6% premium over the issue price of INR 106.

The startup posted a net profit of INR 6.33 Cr in FY24, a 23% jump from INR 5.12 Cr in FY23. Operating revenue zoomed 17% to INR 11.84 Cr in FY24 from INR 10.09 Cr in FY23.

TBO Tek

Founded in 2006, Travel Boutique Online (TBO) is a B2B travel portal that provides solutions to travel agents and tour operators. It offers white-label solutions, hotel and flight booking APIs and dynamic packages, among others.

The Delhi NCR-based company filed its DRHP with SEBI in November last year. The market regulator granted approval for its public listing in April.

Shares of TBO Tek listed on the NSE in May at a premium of 55% to the issue price. The stock made its debut at INR 1,426 against the issue price of INR 920. On the BSE, the stock listed at INR 1,380, a 50% premium to the issue price.

TBO Tek logged a 64% jump in PAT to INR 46.4 Cr in Q4 FY24 from INR 28.2 Cr in the year-ago quarter. Revenue from operations stood at INR 369 Cr during the period under review, a 31% increase from INR 281.4 Cr in Q4 FY23.

Trust Fintech

Founded in 1998 by Hemant Chafale, Heramb Ramkrishna, and Mandar Kishor Deo, Trust Fintech is an enterprisetech company that offers SaaS products and fintech solutions for ERP implementation, and offshore IT services for the BFSI sector. 

The fintech SaaS company filed its DRHP with NSE Emerge to raise funds via an IPO in February this year and listed on the SME platform just two months later in April. 

It witnessed an oversubscription of 101X for its public issue on the back of huge demand from retail investors and non-institutional investors. Eventually, it listed at a premium of 42% at INR 143.25 apiece as against its issue price of INR 101 per share.

Trust Fintech saw its net profit jump 210% to INR 12.5 Cr in the financial year 2023-24 (FY24) from INR 4 Cr in FY23. Meanwhile, operating revenue jumped 55.4% to INR 35 Cr in the period under review as against INR 22.5 Cr in FY23.

Unicommerce

Founded in 2012 and acquired by Snapdeal in 2015, Unicommerce is an ecommerce SaaS startup that enables sellers to manage their inventory across all online marketplaces. It offers integrations with all major ecommerce platforms active in India.

Unicommerce filed its DRHP in January and received regulatory approval on July 1. The startup’s IPO comprised solely of an OFS of 2.98 Cr shares.

Unicommerce’s public issue opened on August 6 and was closed on August 8 with 168X subscription. Afterwards, it made a stellar debut on the bourses on August 13. 

Shares of the enterprise tech startup listed at INR 235 apiece on the NSE, a premium of 117.59% over its issue price of INR 108. It also debuted at INR 230 on the BSE, a premium of 112.96%.

Unicommerce’s net profit stood at INR 13.1 Cr in FY24 as against INR 6 Cr in the previous fiscal year. Meanwhile, the ecommerce SaaS startup reported an operating revenue of INR 103.5 Cr in the fiscal ended March 2024. In FY23, the startup’s operating revenue shot up 52% to INR 90 Cr from INR 59 Cr in FY22.

Indian Startup IPOs In Pipeline

*As per reports

AITMC Ventures

Founded in 2016, AITMC Ventures offers drone training and other skill development programmes in the agriculture sector. So far, it has set up 46 centres across India for research, development, training, and testing of drone technology in agriculture.

The integrated agri-drone company filed its DRHP in October last year to list on NSE Emerge. 

The Gurugram-based startup IPO will comprise a fresh equity offering of up to 2.07 Cr shares. It won’t have an OFS component.

The startup reported revenue of INR 21.44 Cr and profit of INR 4.81 Cr in FY23.

ArisInfra

Founded in 2021 by Ronak Morbia and Bhavik Khara, ArisInfra is a B2B ecommerce platform that leverages AI to simplify construction material procurement. It links real estate developers with vendors for any requirements related to building materials and offers project management services.

Backed by names such as PharmEasy chief executive Siddharth Shah, Think Partners, Logx Venture Partners and Karbonite Ventures, the startup has raised more than $25 Mn in funding till date. 

In August 2024, the startup filed its DRHP with SEBI to raise INR 600 Cr via its IPO. However, its public issue will comprise solely of a fresh issue of shares and there will be no offer for sale (OFS) component. 

The startup plans to use the IPO proceeds to repay outstanding credit, support working capital requirements, potential acquisitions and investments in its subsidiary. 

ArisInfra’s consolidated net loss jumped 11.95% YoY to INR 17.33 Cr in FY24. Revenue from operations stood at INR 696.84 Cr during the year under review as against INR 746.07 Cr in the previous fiscal.

Ather Energy

Founded in 2013 by Tarun Mehta and Swapnil Jain, Ather Energy is one of the major players in the Indian electric two-wheeler market. It manufactures and services electric two-wheelers and operates its own charging infrastructure.

The EV major has raised more than $431 Mn from Hero MotoCorp, GIC, Tiger Global, among others, across multiple rounds since its inception. 

In June 2024, Ather Enegery’s board passed a resolution to convert the startup into a public company from a private entity previously. Previously, reports surfaced that the company had roped in HSBC Holdings Plc, Nomura Holdings Inc, and JP Morgan Chase & Co to helm its IPO. 

The company was said to be eyeing a listing in the second half of 2024 at a valuation of around $2 Bn.

Ather Energy clocked a net loss of INR 864 Cr in FY23, up 150% from INR 344.1 Cr in the previous year. Operating revenue jumped 4.3X YoY to INR 1,783.6 Cr during the year under review.

Avanse Financial Services

Incorporated in 2013, Avanse is an NBFC focussed on education financing for students and educational institutions in India. Its products cater to students looking to study higher education abroad and in India. 

The non-bank lender filed its DRHP in June 2024 for an INR 3,500 Cr IPO. The IPO will comprise a fresh issue of INR 1,000 Cr and an OFS component of shares worth up to INR 2,500 Cr.

In July 2024, SEBI returned the NBFC’s IPO paper on “technical grounds”. Later, the company refiled its IPO papers with the market regulator on July 31.

Backed by the likes of Warburg Pincus, International Finance Corporation (IFC) and Kedaara Capital, the startup last raised INR 1,000 Cr in a funding round led by Abu Dhabi-based investment firm Mubadala Investment Company in March 2024.

As per the DRHP, Avanse’s net profit rose to INR 342.4 Cr in the financial year 2023-24 (FY24) from INR 157.71 Cr in the previous fiscal year. Operating revenue grew to INR 1,726.9 Cr from INR 989.5 Cr in FY23.

Bira 91

Founded in 2015 by Ankur Jain, Bira 91 sells craft, lager and strong beers. It also sells non-alcoholic beverages.

Backed by Peak XV Partners, Sofina and DS Group, Bira 91 has raised $449 Mn in funding across multiple rounds. 

In December 2022, the startup converted into a public company and renamed itself as B9 Beverages Limited. However, the beverage startup is yet to file its DRHP with the SEBI.

In July 2024, reports said that the alco-beverage brand was planning to list on the bourses in 2026 and has roped in investment banking firm Morgan Stanley to helm its pre-IPO process.

The Delhi NCR-based beer brand reported an operating revenue of INR 824.3 Cr in the year ended March 2023, up 15% from INR 718.8 Cr in FY22. Meanwhile, net loss jumped 12% YoY to INR 445.4 Cr in FY23.

BlackBuck

Founded in 2015 by Rajesh Yabaji, Chanakya Hridaya and Rama Subramaniam, BlackBuck operates an online marketplace for inter-city full truck load (FTL) transportation. It claims to be the largest online trucking platform in India, and connects with suppliers with truckers.

The Flipkart-backed logistics unicorn filed its IPO papers with SEBI in July 2024. Its public issue will comprise a fresh issue of shares worth INR 550 Cr and an OFS component of up to 2.16 Cr shares.

Backed by the likes of Tiger Global, Accel, Peak XV Partners and Goldman Sachs, BlackBuck has raised more than $360 Mn in funding to date. 

As per its DRHP, the logistics unicorn reported a net loss of INR 193.9 Cr in FY24, down 33% from INR 290 Cr in the previous year. Operating revenues jumped 69% YoY to INR 296.9 Cr in the fiscal ended March 2024. 

BlueStone

Founded in 2011 by Gaurav Singh Kushwaha and Vidya Nataraj, Bluestone is an omnichannel jewellery startup that sells rings, pendants, earrings and other products. 

Backed by Prosus, Steadview Capital and Think Investments, the startup has raised more than $184 Mn in funding till date. 

The jewellery startup started its IPO proceedings in August 2024 as it raised INR 900 Cr as part of a pre-IPO funding round that catapulted its valuation to $970 Mn. As per reports, Bluestone plans to file its draft red herring prospectus (DRHP) with market regulator SEBI in late-2024.

Bluestone’s net loss declined 86% to INR 167.2 Cr in the fiscal year 2022-23 (FY23) from INR 1,268.4 Cr in FY22. Operating revenue jumped 1.6X to INR 770.7 Cr during the fiscal year under review from INR 461.3 Cr in the previous fiscal year.

Ecom Express 

Founded in 2012 by the late TA Krishnan, Manju Dhawan, K Satyanarayana and Sanjeev Saxena, Ecom Express is a logistics solutions provider that caters to ecommerce platforms, D2C brands as well as quick commerce players. 

The startup claims to have 3,000 delivery centres spanning 9.6 Mn sq. ft. of space and delivers packages to 27,000 pin codes in 2,700 cities and towns across the country. 

The company set its IPO plans in motion in August this year after its board approved its public listing plans during an extraordinary general meeting (EGM) on August 13. Quickly afterwards, the company filed its DRHP with the market regulator SEBI for an INR 2,600 Cr IPO. 

As per the draft papers, the proposed public issue will comprise a fresh issue of shares worth up to INR 1,284.5 Cr and an offer for sale component of up to INR 1,315.5 Cr. It plans to list its shares on the BSE and the NSE. 

Backed by the likes of Warburg Pincus, PG Esmeralda, British International Investment (BII), among others, Ecom Express has raised more than $275.79 Mn in funding till date. 

The logistics major trimmed its net loss by 67% to INR 255.8 Cr in FY24 from INR 428.1 Cr in FY23. Meanwhile, its operating revenue saw a marginal 2.15% YoY increase to INR 2,609 Cr in the fiscal ended March 2024.

Flipkart

Binny Bansal and Sachin Bansal founded Flipkart in 2007 and later sold a majority of the company to Walmart in 2018 for $16 Bn. Since then, the ecommerce major has become India’s biggest ecommerce marketplace and has diversified into a host of new areas, including fintech, and travel aggregation. 

The ecommerce major, which is also backed by Google, was last valued at $35 Bn during a $1 Bn fundraise that saw participation from the two investors. 

Just like its sister arm PhonePe, the company is vying for a 2026 IPO. Its B2C arm, Flipkart Internet Private Limited, reported an operating revenue of nearly INR 15,000 Cr mark in the financial year ended March 31, 2023. The marketplace arm’s operating revenue zoomed 42% to INR 14,845.8 Cr in FY23 from INR 10,477.4 Cr in FY22.

Flipkart Internet primarily earns revenue through commission charges and other services it offers to merchants, including advertising of products. Including other income, the B2C arm’s total revenue rose 41% to INR 15,044 Cr during the year under review from INR 10,640.5 Cr in FY22.

Fractal

A brainchild of Srikanth Velamakanni, Pranay Agrawal and Ashwath Bhat, Fractal was founded in 2000. The SaaS startup offers artificial intelligence and advanced analytics solutions to enterprises globally. 

Backed by the likes of TPG Capital, Khazanah Nasional and Apax Partners, the startup has raised $685 Mn in funding till date. It turned unicorn in 2022 and was last valued at over $2 Bn. 

The enterprise tech major is now gearing up to file its DRHP with markets regulator SEBI by the end of August 2024 or early September 2024. The company is eyeing a $500 Mn to $600 Mn IPO on Indian bourses at a valuation of around $3 Bn.

Fractal’s public issue will reportedly likely have a “large share” of secondary share sale by existing investors, the quantum of which is still yet to be decided. 

Fractal returned to the black in FY23, minting a profit of INR 194.4 Cr compared to a loss of INR 148.4 Cr in FY22. Meanwhile, the SaaS unicorn’s operating revenue zoomed 53% YoY to INR 1,985.4 Cr in the fiscal year ended March 2023.

Garuda Aerospace

Founded in 2015 by Agnishwar Jayaprakash, Garuda Aerospace designs, manufactures and sells drones. Its offerings also include drone-as-a-service (DaaS) for use cases such as agriculture, defence, and mining. 

Backed by Venture Catalysts, Silver Swan Capital and Claris Capital, the startup has raised $28.2 Mn in funding till date. 

In a chat with Inc42 last year, Jayaprakash said that the company would commence its IPO proceedings post March 2024 and would list by October-November 2024.

Infra.Market

Founded in 2016 by Souvik Sengupta and Aaditya Sharda, Infra.Market operates a B2B marketplace that sells construction products and other range of building materials such as concrete, steel, pipes, fittings, and chemicals. 

The startup has raised over $415 Mn in funding to date and is backed by marquee investors such as Tiger Global, Accel, and Nexus Ventures.

Infra.Market has set the ball rolling for its IPO as it has reportedly shortlisted eight investment bankers, including Kotak Mahindra Capital, IIFL Capital, Goldman Sachs, Jefferies, among others, as advisors for the IPO. 

While the company is eyeing raising $500 Mn -$700 Mn via its IPO, it may also increase it further depending on “market conditions”. Its public issue will comprise a fresh issue of shares as well as secondary share sale. 

While the talks are still in early stages, the proceeds from Infra.Market’s potential IPO will be utilised to repay the debt incurred for the startup’s organic and inorganic growth initiatives.

The B2B ecommerce major saw its net profit narrowing 17% YoY to INR 155.2 Cr in FY23. Operating revenue soared 90% to INR 11,846.5 Cr during the year under review from INR 6,236.3 Cr in FY22. 

IndiQube

Founded in 2015 by Rishi Das and Meghna Agarwal, IndiQube is a coworking startup that offers a range of services including workspace design, interior build out and other B2B and B2C-focussed services. 

Backed by WestBridge Capital, Aravali Investment Holdings, and Konark Trust, IndiQube has raised more than $45 Mn in funding to date across multiple rounds. 

The startup is in advanced talks to finalise its merchant bankers to helm its IPO. The company plans to file its DRHP with market regulator SEBI before November 2024. 

The startup is looking to raise INR 1,000 Cr to INR 1,500 Cr from its IPO, which will primarily comprise a fresh issuance of shares. The OFS component is expected to be small, with promoters and existing investors not looking at any major dilutions.

The coworking space provider turned profitable in FY23, reporting a net profit of INR 20.63 Cr compared to a loss of INR 18.82 Cr in FY22. Meanwhile, revenue jumped 69% to INR 592.41 Cr in the fiscal year ended March 2023 from INR 351.43 Cr in FY22. 

InMobi

Founded in 2007 by Naveen Tewari, Piyush Shah, Mohit Saxena and Abhay Singhal, InMobi is an adtech platform that offers a suite of product discovery and monetisation solutions. 

Headquartered in Singapore, the SaaS startup also has offices in Bengaluru, New York, Beijing, London, Dubai, and several other locations.

Backed by the likes of Sherpalo Ventures, SoftBank and Kleiner Perkins, InMobi has raised more than $320 Mn in funding till date and was one of the first Indian new-age tech companies to enter the unicorn club in 2011. 

The SaaS startup is eyeing a public listing in India by 2026 at a valuation of about $10 Bn. However, this will not be InMobi’s first stab at an IPO. 

In 2021, it was reportedly planning for an IPO but shelved the plans due to adverse market conditions and funding winter.

Innoviti

Founded in 2002 by Rajeev Agrawal, Innoviti is a digital payments solutions provider that allows businesses to accept payments and integrate real-time sales data into critical business processes. 

As of July 2024, the company claims to process over INR 72,000 Cr of purchase volume annually from across 2,000 Indian cities and over 20,000 offline and 3,000 online merchants. 

Backed by the likes of Random Walk Solutions, Bessemer Venture Partners, Patni Family Office India and Alumni Ventures, the startup has raised more than $87 Mn in funding to date.

In August 2024, the company said it was eyeing a public market debut within the next 12 months. 

Innoviti saw its revenue from operations jump more than 48% YoY to INR 110 Cr in the fiscal year 2022-23 (FY23). Meanwhile, loss surged to INR 86.56 Cr during the year under review from INR 73.4 Cr in FY22.

MobiKwik

Founded in 2009, MobiKwik started operations as a digital wallet. Since then, it has diversified its business to offer consumer payments, buy now pay later (BNPL), and payment gateway services.

The Delhi NCR-based startup has also introduced a Soundbox-like device, called Vibe, to take on Paytm and PhonePe.

The fintech unicorn refiled its DRHP with SEBI in January to raise INR 700 Cr through a fresh issue of equity shares, down from its earlier attempt to go public in 2021 when it tried to raise INR 1,900 Cr.

Besides, the startup managed to turn profitable in FY24 as it minted a profit of INR 14.1 Cr in the fiscal year ended March 2024 as against a loss of INR 83.19 Cr in the year ago period. Meanwhile, revenue from operations zoomed 62% YoY to INR 875 Cr in fiscal under review.

OfBusiness

A brainchild of Asish Mohapatra, Ruchi Kalra, Bhuvan Gupta, Chandranshu Sinha, Nitin Jain, Srinath Ramakkrushnan and Vasant Sridhar, OfBusiness was founded in 2015. The startup operates a B2B ecommerce platform that sells construction materials and offers financing solutions to merchants.

Kicking off its IPO proceedings in August 2024, the startup was reportedly in talks with investment bankers such as Bank of America, Citi, JP Morgan and Morgan Stanley for managing the IPO, which will be launched in the second half of 2025.

As per OfBusiness CFO Bhavesh Keswani, the company is eyeing a $750 Mn to $1 Bn IPO, which will include a fresh issuance of shares worth $200 Mn with the remaining earmarked for OFS component. 

The B2B marketplace is looking to debut on the bourses at a valuation of $6 Bn – $9 Bn. 

OfBusiness saw its consolidated operating revenue surge over 25% YoY to INR 19,296.3 Cr in FY24. Meanwhile, net profit soared to INR 603 Cr during the fiscal under review from INR 463.2 Cr in the previous year.

Ola Cabs

A brainchild of Bhavish Aggarwal, Ola Cabs operates a mobility platform that offers ride-hailing and food delivery services. 

Backed by SoftBank, Ola Cabs has raised more than $3.84 Bn in funding till date and is one of the biggest players in the country in the ride-hailing space. 

Last reported, Ola Cabs was holding talks with investment banks like Goldman Sachs, Bank of America, Citi, Kotak, and Axis to helm its IPO. As per the reports, the company was looking to raise $500 Mn via its public listing at a nearly $5 Bn valuation. 

Ola parent ANI Technologies trimmed its loss by nearly half to INR 772.2 Cr in FY23 from INR 1,522.3 Cr in the previous year. Operating revenue rose 42% YoY to INR 2,799.3 Cr .

OYO

Founded in 2012, OYO is a travel tech startup that offers vacation homes, casino hotels, coworking spaces, budget hotels, corporate stays and more. The hospitality major is also planning to launch 13 self-operated hotels under its premium brand ‘Palette’ by 2024-end.

In May 2024, the Delhi NCR-based hospitality major officially withdrew its IPO documents from the market regulator SEBI. Interestingly, this was OYO’s second attempt at a public listing. 

In early-2024, OYO was said to be looking to raise $400 Bn to $600 Bn, nearly half of its earlier attempt in 2021 when it was looking to raise INR 8,430 Cr ($1.2 Bn).

OYO narrowed its net loss by 34% to INR 1,286.5 Cr in FY23 from INR 1,941.5 Cr in FY22. Operating revenue grew 14% to INR 5,463.9 Cr in FY23 from INR 4,781.3 Cr in the previous fiscal year.  Its cofounder and CEO Ritesh Agarwal claimed that the startup reported a net profit of INR 100 Cr in FY24.

PayMate

Founded in 2006 by Ajay Adiseshann, PayMate is a full-stack supply chain payments automation platform that offers B2B payments solutions for SMEs and enterprises. 

The Mumbai-based fintech startup filed its DRHP in 2022 for an INR 1,500 Cr IPO. At the time, PayMate said that its public issue would comprise a fresh issue of INR 1,125 Cr and an OFS of INR 375 Cr. 

Eventually, the market regulator returned the company’s DRHP and asked PayMate India to refile the IPO papers with certain updates. In early 2023, the company reportedly said that it was planning to refile its DRHP but there has been no clarity on its IPO plans since then. 

In FY23, the startup trimmed its net loss by 3.5% YoY to INR 55.7 Cr in FY23. Operating revenue jumped 11.7% YoY to INR 1,350.1 Cr in FY23.

PayU

The Prosus-backed fintech major is also gearing up for a public listing in India. In October last year, the company was reportedly mulling seeking regulatory approval for a $500 Mn IPO. 

At the time, it was said that PayU had appointed Goldman Sachs, Morgan Stanley and Bank of America as advisors for the IPO, reportedly slated to happen by 2024-end. 

In  November, the then interim Prosus CEO Ervin Tu said that PayU could be ready for a public listing in India by the second half of calendar year 2024. 

As per the Dutch investor’s annual report, PayU India clocked a revenue growth of 11% year-on-year (YoY) to $444 Mn in FY24. However, this was lower than the 31% revenue growth reported in FY23 and over 40% jump it clocked in FY22.

PhonePe

Founded in 2015 by Sameer Nigam, Rahul Chari and Burzin Engineer, PhonePe is India’s biggest digital payments platform and accounts for nearly half of all Unified Payments Interface (UPI) payments processed in the country. 

Since its inception, it has morphed into a full-fledged financial services platform, offering a host of digital payment services, insurance products, and broking services to customers. The fintech major was acquired by ecommerce juggernaut Flipkart in 2016. 

Six years later, Flipkart parent Walmart set into motion its plans to hive off PhonePe as a separate entity and redomicile the fintech company back to India. In late-2022, PhonePe flipped back to its home turf, with an eye on listing on Indian bourses. 

However, in June 2024, a senior Walmart executive said that PhonePe’s IPO could take a couple of years, setting the stage for a 2026 IPO.

In August 2024, the fintech major’s cofounder and CEO Nigam said that payments body National Payment Corporation of India’s (NPCI) plan to cap the UPI market share of third-party app providers (TPAPs) was hindering the company’s plans from going ahead with its IPO.

The fintech major saw its consolidated net loss widen 39% YoY to INR 2,795.3 Cr FY23. Revenue soared 77% YoY to INR 2,913.7 Cr during the year under review. 

Portea Medical 

A brainchild of Krishnan Ganesh and Meena Ganesh, Portea Medical is a healthtech startup that offers services such as maternal care, physiotherapy, nursing, lab tests, counselling and critical care. 

Backed by Accel, InnoVen Capital, Alteria Capital and British International Investment, Portea Medical has raised more than $92.3 Mn across multiple rounds till date.

The healthtech startup filed its IPO papers in July 2022 for an INR 800 Cr IPO. As per its DRHP, the IPO then comprised a fresh issue of equity shares worth INR 200 Cr and an OFS component of up to 56.25 Mn shares.

In April 2023, it received approval from the market regulator to go ahead with the public listing on the BSE and NSE. However, there have been no further updates on its IPO plans.

Portea Medical posted a net loss of INR 53 Cr in FY23, up from INR 40 Cr in the previous year. Revenue from operations declined 3.3% YoY to INR 145 Cr during the year under review. 

Pure EV

A brainchild of Nishanth Dongari and Rohit Vadera, the startup manufactures electric bikes and scooters across multiple variants. 

It has raised more than  $14 Mn in funding till date and counts the likes of Bennett Coleman and Company, Hindustan Times Media Ventures, Ushodaya Enterprises, among others, as backers. 

Setting its plans to become India’s second listed EV player in motion, the startup, in August 2024, said it plans to list on the bourses in 2025. 

However, the startup continues to be a loss-making entity and reported a net loss of INR 9.3 Cr in FY23. Meanwhile, revenue from operations also declined 42% to INR 131.28 Cr from INR 225.98 Cr in FY22. 

Shadowfax

Founded in 2015 by Vaibhav Khandelwal and Abhishek Bansal, Shadowfax is a logistics startup that offers hyperlocal and on-demand deliveries to businesses. 

The Flipkart-backed startup competes with the likes of Delhivery, Ecom Express, XpressBees, LoadShare, Ripple and Pickrr. It is also backed by the likes of Mirae Asset Venture Investments (India), IFC, Nokia Growth Partners, Qualcomm and Trifecta Capital.

The logistics services startup is reportedly looking to raise INR 2,500 Cr to INR 3,000 Cr via its public market debut at a valuation of INR 5,000 Cr to INR 8,000 Cr. While there is no clarity on the timeline for the IPO, its promoters and investors have kicked off discussions with merchant bankers for the IPO.

Shadowfax trimmed its net loss 19% YoY to INR 142.63 Cr in FY23. Meanwhile, revenue from operations jumped 42% to INR 1,415 Cr during the year under review from INR 990 Cr in FY22.

Smartworks

Founded in 2016 by Neetish Sarda and Harsh Binani, Smartworks is a shared workspace provider that offers customisable coworking solutions for enterprises. 

The startup has raised $41 Mn in funding till date and is backed by the likes of Ananta Capital, Keppel Land and Plutus Capital. 

Taking the first step towards its IPO, the startup turned into a public company in July 2024 and changed its name to Smartworks Coworking Spaces Ltd from Smartworks Coworking Spaces Private Ltd previously.

In August 2024, it filed its DRHP with SEBI for an INR 550 Cr initial public offering. As per its DRHP, the company’s IPO comprises a fresh issue of equity shares worth INR 550 Cr and an offer for sale (OFS) component of up to 67.49 Lakh equity.

It trimmed its net loss to INR 49.9 Cr in FY24 from INR 101.4 Cr in FY23. Operating revenue jumped 46% YoY to INR 1,039.3 Cr during the year under review.

Swiggy

Swiggy commenced operations as an online food delivery platform in 2014. In 2020, it also entered the grocery delivery business with Swiggy Instamart. 

Now, the Bengaluru-based startup has begun diversifying beyond the quick commerce grocery business. Swiggy Instamart now also offers high-value products, allowing shoppers to order fitness and electronics devices. 

Swiggy filed its DRHP with markets regulator SEBI via the confidential pre-filing route for an IPO worth INR 10,414.1 Cr ($1.2 Bn) in April. The IPO will include a fresh issuance of shares worth INR 3,750.1 Cr (about $449 Mn), and an OFS of INR 6,664 Cr (about $799 Mn), as per regulatory filings. 

On top of that, Swiggy is also looking for an INR 750 Cr pre-IPO funding round. In August 2024, reports claimed that the company was targeting a valuation of $15 Bn valuation for $1 Bn to $1.2 Bn IPO. 

In the run up to the IPO, the family office of actor Amitabh Bachchan also picked up a minority stake in the company by purchasing the shares held by Swiggy’s employees and early backers.

Swiggy reportedly plans to utilise the proceeds from the IPO to bolster its footprint in the quick commerce space and expand its dark store network. 

Swiggy reportedly posted a net loss of INR 2,350 Cr in FY24, down 44% from INR 4,179 Cr in FY23. Revenue grew 36% to INR 11,247 Cr during the fiscal under review from INR 8,265 Cr in FY23.

Ullu

Founded by the husband-wife duo of Vibhu Agarwal and Megha Agarwal, Ullu Digital is a Mumbai-based OTT platform that deals with the distribution, promotion, exhibition, marketing and delivery of video content on its streaming platform Ullu. 

It filed its DRHP with the BSE SME for an IPO in February this year. As per the draft papers, the company’s IPO would comprise a fresh issue of 62.63 Lakh shares and would not have OFS component.

Ullu Digital plans to raise INR 135-INR 150 Cr via the IPO, which, if approved, would become the biggest SME IPO till date. 

The platform plans to use the net proceeds raised via the IPO to meet its expenses for production of new content, purchase of international shows, tech investment, and to meet the working capital requirements.

While Vibhu Agarwal holds a 61.75% stake in Ullu Digital, Megha Aggarwal owns 33.25% of the company. 

In March 2024, the OTT streaming platform came under the scanner of multiple government authorities including SEBI, the Ministry of Corporate Affairs and the Ministry of Electronics and Information Technology (MeitY) for allegedly selling “pornographic” content using school children.

Zappfresh

Founded by Deepanshu Manchanda and Shruti Gochhwal in 2015, Zappfresh is a D2C meat startup that supplies meat from farms to customers within 90 minutes. 

Taking its first step towards IPO,the startup converted into a public entity in April 2024 after dropping “private” from its name. As per its RoC filings, the company changed its name to DSM Fresh Foods Limited from DSM Fresh Foods Private Limited previously. 

The startup’s parent filed its DRHP for listing on BSE SME in August 2024. Zappfresh’s IPO will comprise a fresh issue of 59.06 Lakh equity, with no offer for sale component.

Zappfresh plans to use the proceeds from the IPO to fuel acquisitions, meeting marketing and capital expenditure requirements and for general corporate purposes.

Last Updated: September 6, 8:00 AM IST

The post Indian Startup IPO Tracker 2024 appeared first on Inc42 Media.

India’s beauty and personal care (BPC) brands are looking good and growing fast, riding a wave of consumer trust, investor enthusiasm and product innovation. Per a Redseer-Peak XV estimate, the Indian market will see the highest CAGR of 10% from 2022-2027, outpacing China and the US with much bigger per-capita spending on BPC products. In fact, India may account for nearly 5% of a $660 Bn global market by then, soaring to $30 Bn from $19 Bn in 2022.

Despite the waves of change, the funding scenario is not dismal, either. BPC startups raised more than $1 Bn between 2014 and H1 2024, with hundreds of brands eyeing the market. 

As new ventures grew, especially after a D2C (direct-to-consumer) deluge since the pandemic, can BPC brands set new trends and thrive in a crowded market? Or will they glow briefly and quietly fade away, shuttering businesses or falling prey to consolidation? 

However, one-year-old Hyphen, a personal care venture and a sister brand to mCaffeine, is apparently in a class of its own. For PEP Technologies, the parent of mCaffeine, launching a second venture in the same space almost after a decade was more of a strategic move to create differentiated value rather than drive business momentum.

It is evident that mCaffeine is a distinguished brand with a valuation exceeding $119 Mn+ and $40 Mn+ funding in its kitty. It conducts business across 18K pin codes via a strong omnichannel presence and has sold more than 10 Mn products since its launch in 2015. It has also captured 65% of the body care market in India, the brand claims. The only issue: All its products have been anchored in the power of caffeine.

Unsurprisingly, the founding team had to cope with two major tasks to stay relevant in a space where cult products often debut on social platforms, via influencer marketing, and obsolescence sets in if fresh formulations and new ingredients are missing for long. Clearly, a new brand was needed to preserve the USP of the mCaffeine product line and bring in a different range of ingredients and products so that users ‘have it all’. 

“After building mCaffeine for years, we knew that the brand has a specific appeal and use cases. Stretching it too far [in terms of product add-ons not corroborating with its key theme and ingredients] could kill it. So, we decided to launch another brand,” said Tarun Sharma, cofounder and CEO of mCaffeine and Hyphen. 

Actor Kriti Sanon also joined the leadership team as a cofounder and works diligently as the chief customer officer, looking after product reviews and responding to user queries.

Hyphen offers 21 SKUs for comprehensive facial care, including cleansers, moisturisers, serums, sunscreens, lip balms and anti-pigmentation products. It claims that its offerings are 100% vegan (does not contain any animal extracts or by-products), cruelty-free (not tested on animals). On the other hand, mCaffeine mostly produces a body care line, including body scrubs and body washes, among others.   

For now, Hyphen products are only available online across major marketplaces, quick commerce platforms and its own D2C website. It claims annualised gross sales of INR 100 Cr by July 2024, a user base of 1 Mn and reaching 20K pin codes by leveraging mCaffeine’s distribution network. The brand has also received an infusion of INR 30 Cr from its parent company, PEP Technologies, which holds a majority stake in the business.  

Hyphen’s USP: A Natural-Actives Balance For Safety & Effectiveness 

The concept of Hyphen started taking shape in 2021 when Tarun Sharma and Vaishali Gupta identified a critical gap after extensive conversations with hundreds of mCaffeine users. 

Although naturals (ingredients extracted from plants and vegetables) became popular around 2013-2014, users were doubtful about their long-term effectiveness. The alternatives are lab-made ingredients (actives) with proven functionalities, as they undergo extensive trials regulated by the U.S. Food and Drug Administration (FDA) and other similar organisations across countries. However, long-term use of these chemical products was also perceived as harmful as customers leaned towards the therapeutic power of natural products during the Covid-19 pandemic.

“The product line of mCaffeine is based on natural formulations. We stick to ingredients derived from coffee, tea and chocolate and supplement them with glycerides and vitamins. But given the evolving mindset of consumers who wanted the best of both worlds, the challenge was to find a proper balance, blending the benefits of naturals and actives into a single product,” Sharma told Inc42. 

The cofounders and their R&D team went all out to fuse nature with science to address complex facial care needs.

After two years of research, endless internal debates and 18 months of trials and errors to perfect the formulations, Hyphen was launched with a sunscreen, a face serum and two moisturisers.

Although mCaffeine and Hyphen have an identical sourcing strategy and rely on top-grade Indian suppliers, the latter has a broader mix of ingredients, a different production process (as its product line and formulations differ from mCaffeine) and a rigorous 32-point quality testing system similar to its sister brand, ensuring that every product meets exacting standards from sourcing to manufacturing.

As Hyphen harmonises potent actives with soothing naturals, it is positioned as a performance-driven and science-backed solution provider that can optimise quality. Its products are priced at a 10% premium over mCaffeine due to the extensive research involved.

Sharma emphasised that Hyphen’s competitive edge lies in successfully implementing its business basics. “In the actives space alone, you will find more than 30 brands. But those who succeed stick to the core principles, execute them well and create differentiation. Many brands failed despite unique propositions because their execution fell short.”   

How Hyphen Took A Leaf Out Of mCaffeine’s Playbook To Corner Success

Hyphen has a robust R&D team and a sound range of products containing tea tree extract, avocado oil, peptides, retinoids, ceramides, alpha arbutin, kojic acid and azelaic acid, which serve as powerhouse ingredients for facial care. But reaching the INR 100 Cr milestone could not be a walk in the park. 

In the first few months, the brand encountered what most newcomers do – not enough visibility and, hence, the lack of fast growth naturally expected with a sister brand like mCaffeine thriving for years.  

“Initially, we were banking on tremendous organic growth, relying on PR and word-of-mouth. Of course, the new brand resonated with some consumers, but we somewhat stagnated within the first six months,” said Sharma.

For context, Hyphen clocked INR 30 Lakh in gross sales in the first month (July 2023) and doubled in the third month to INR 60 Lakh. But by then, the promoters were worried about a few anomalies in consumer discovery and desires. 

Interestingly, the repeat purchase rate in those early days was nearly 100%, underscoring the brand’s effectiveness. But the business badly needed new footfalls to grow its customer base. The team also found that the initial buzz stemmed largely from Sanon’s strong social media presence.

Given these insights, Sharma and his team realised that the brand’s value proposition, products and pricing worked well, but they needed to focus on the missing pieces – promotion and business operations. It was decided to position Hyphen as a celebrity-led brand as an mCaffeine-like branding would not align with the new entity’s brand’s ambition and target audience. The goal was to see it emerge as a top-selling skincare line and hit the INR 100 Cr milestone at the earliest. 

By January 2024, the team ramped up their efforts and adopted the strategic blueprint originally developed for mCaffeine. According to Sharma, Hyphen’s rapid success – from INR 30 Lakh to INR 14 Cr in FY24 and then to INR 100 Cr annualised gross sales in July 2024 – would not have been possible had they not replicated three critical strategies from mCaffeine’s playbook. Here is a quick look at the fundamentals:

Nurturing consumer centricity: Like mCaffeine, Hyphen has a consumer-centric approach from the beginning, and the leaders quickly realised how repeat customers were driving its growth in the initial months.

Today, 60% of Hyphen’s sales come from repeat customers and the average product rating exceeds 4.5 out of five. It has also captured double-digit market share in sub-categories like lip balm.

“What makes this new brand relevant to the consumer? Why would they choose your product over millions? It’s because staying consumer-centric is fundamental, it’s non-negotiable,” said Sharma. 

“We keep the 3Cs in mind. We listen to our consumers, build the right categories, and expand channels for easy access. We learnt it when building mCaffeine from scratch and distilled our learning into these core principles. They have taught us how to deliver top-notch products backed by flawless execution.”

Targeting time-bound opportunities: Another key takeaway from mCaffeine is seizing time-sensitive opportunities with calculated energy and precision. Hyphen’s strategic approach to distribution – knowing when and where to launch – is a case in point. 

Elaborating its selective approach, the CEO said the brand could not be spread too thin across all distribution channels. Plus, the team had to time it right about starting Meta ads, Google ads and WhatsApp campaigns. Again, the brand won’t enter offline retail until Hyphen hits the INR 400 Cr mark, as traditional retail is expensive. 

“We are very data-focussed. We analyse the numbers every time before choosing the best channel/s,” said Sharma. For example, quick commerce was not a good fit for Hyphen in the early days. But as the landscape shifted, the brand was launched on quick commerce platforms this year.

Mastering the 6Ps: The leadership’s journey at mCaffeine brought home the art of mastering the 6Ps: Proposition, product, packaging, pricing, platform and promotion. “If you can nail these, the 7th P – profit – will follow,” said Sharma.

Several factors keep Hyphen aligned with the 6Ps mantra. Its value proposition – the right mix of naturals and actives for best outcomes – has resolved customer pain points at the product level. Ingredients are directly sourced for consistency in quality. A 16-member R&D team is in charge of developing the formulations in-house. And its QA/QC personnel are stationed at partner manufacturers to maintain rigorous quality standards. Despite outsourced manufacturing, the brand retains tight control over every detail.  

Hyphen has in place comprehensive SOPs for all its processes and further benefits from the expertise of advisory formulators, many of whom are former Unilever professionals with 20-25 years of experience. 

Additionally, it has minimised packaging costs and funnels 80% of its budget on procurement to ensure competitive pricing without sacrificing quality.  

Finally, pricing has been carefully worked out, keeping in mind a cost-sensitive market. Hyphen’s products are positioned as mass-premium and cost 30-50% lower than similar companies like Laneige, The Ordinary, Inde Wild, Rhode.

Hyphen Wants To Be An INR 1K Cr Brand; Can It Script A Big Success Story?

The founding team at Hyphen aims to scale the brand to INR 1K Cr. But this may sound too ambitious at this point. The D2C personal care brand is not yet profitable at an operational level, although it is unit economics positive. Plus, it is burning cash due to its ongoing investments in team, technology and R&D.

Its short-term goals are clear, though. The brand eyes operational profitability by FY26 and wants to clock INR 200 Cr in revenue.

In the current financial year (FY25), it plans to focus solely on the domestic market and aims to become a bestseller brand across popular categories like sunscreen, serum and moisturiser. It will also move into new categories (which resonates with Hyphen’s core values), driving repeat purchase rates and diving deeper into Tier II and III locations. Sharma says these will be crucial steps towards achieving the INR 200 Cr mark.

Can Hyphen achieve its lofty ambitions in a competitive market and within a tight timeframe? It may not be impossible. Take Minimalist, a beauty and skincare brand that reached INR 100 Cr in revenue just eight months after its launch.

[Edited By Sanghamitra Mandal]

The post Hyphen’s INR 100 Cr Milestone: How D2C Brand Built A Winning Formula With mCaffeine’s Playbook appeared first on Inc42 Media.

Mumbai-based venture debt firm VentureSoul Partners has marked the first close of its INR 600 Cr maiden fund, raising INR 146.5 Cr ($17.4 Mn). 

The SEBI-registered Category II AIF is targeting a corpus of up to INR 300 Cr, with an additional INR 300 Cr in greenshoe options. 

It aims to invest in around 20-25 startups with an average ticket size of INR 25-30 Cr. The maximum amount will be capped INR 60 Cr.

So far, VentureSoul claims to have already secured commitments from a diverse group of investors, including family offices, corporates, high-net-worth individuals and professionals among others. The fund aims to back startups at Series A or later stage, with established business and revenue models, focused on fintech, B2C, B2B and SaaS sectors.

The fund also plans to have differentiated debt proposition for the new age economy clients, where the bankers are planning to bring in banking practices into the fund world by not only evaluating the clients differently, but more importantly by providing differentiated debt product proposition for the new age economy clients, the firm said in a statement..

VentureSoul was founded by three ex-HSBC bankers – Gala, Anurag Tripathi, and Kunal Wadhwa, who bring together over 65 years of experience. Having had the experience of successfully building businesses ground up for various domestic and international organisations, the partners launched VentureSoul to create a value-based enterprise.

The venture debt firm aims to differentiate itself by blending prudent banking principles with new-age credit evaluation technology, adopting a partnership approach towards its portfolio companies, and specialising in providing tailor-made solutions.

“We are sincerely grateful to each and every individual and institution that has backed us, as also those who have been our guiding light in our maiden fund foray. We now intend to augment the scale and size of VentureSoul’s operations by working further with the broader ecosystem – undertaking disciplined deployment as also continuing to reach out wider for our subsequent fund raise rounds,” the founders said in a joint statement.

According to Inc42 data, pure debt funding accounted for approximately 4.3% (or $6.5 Bn) of the total $148.8 Bn funding raised by the Indian startups between 2014 and April 2024. Also, between 2021 and 2023, only 13 debt funds were announced with a total corpus of $1.5 Bn, which was just 4.4% of the around 270+ funds announced with a cumulative corpus of $33.72 Bn.

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The Enforcement Directorate (ED) has reportedly discovered a money laundering operation being operated by illegal gaming and betting apps via kirana stores.

As per TOI’s report, these kirana store owners were unaware of their involvement in illegal gambling activities rather were convinced that they work under the RBI’s domestic money transfer (DMT) framework.

In simple terms, the DMT framework allows money transfers to any bank account within the country. Through this service, a customer can send money instantly to any IMPS (immediate payment service) or NEFT (national electronic funds transfer) supported bank account in the country, and the receiver will get it credited into their account within seconds.

The report said that the scheme is intended to provide easy and secure money transfer options for migrants who lack access to formal banking services.

Also, the investigation led by ED led them to a 40 year old mobile accessories shop owner in a Dahisar slum, and a similar discovery was made at another retail shop in Naya Nagar, Mira Road.

This comes at a time where the ED intensified its vigilance on such gambling applications, on the rising influence of offshore betting platforms in India, a few weeks ago. 

As per the earlier reports, over two dozen offshore gaming applications are currently under the radar of ED for remitting and round-tripping funds, as they have caused gamblers to incur losses to the tune of INR 1 Lakh Cr.

It is to note that illegal gambling labels, largely based outside the country, find kirana stores, small retail outlets and even fake ecommerce websites to disburse winnings in small denominations, making it difficult for government agencies to track the illicit funds, said the report.

Among the apps under investigation are Mahadev Online Book, FairPlay, and MagicWins. Recently, ED conducted raids across Gujarat and Maharashtra, targeting properties linked to MagicWins, and it was revealed that the app had similar payment networks in Haryana and Punjab, using DMT to payout winnings, based on the report.

Legal ambiguity surrounding online gaming and betting apps has allowed such operators to flourish, with the ED investigating multiple cases of money laundering linked to hundreds of such platforms, the report added.

Earlier in May, the consumer affairs ministry was mulling action against indirect and surrogate advertisements promoting illegal betting and gambling, especially during the cricket and election season, when such activities are on the surge.

While the Ministry of Information and Broadcasting (MIB) also advised all endorsers and influencers on social media to refrain from promoting or advertising, including surrogate advertisements, of offshore online betting and gambling platforms, in March.

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