We’ve seen founders clash with founders and even their investors, but last week brought a new experience as Bhavish Aggarwal took on a comedian on X (formerly Twitter) over the allegedly poor quality of Ola Electric’s scooters and company’s customer service.

The social media skirmish took place on Sunday and appeared to simmer down by Monday evening. Yet, as the dust settled, the situation for Ola Electric only worsened. News reports dug out thousands of customer complaints against Ola Electric in the recent past, and even central government ministries were suddenly interested.

However, the problem for Ola Electric is deep because the company’s numbers are also slipping. With Q2 results on the horizon, the pressure is real on Bhavish Aggarwal and Ola Electric — as it is for Ola Consumer as it looks to go for an IPO.

Before we see why, here’s a look at the top stories from our newsroom this week: 

• Decoding Ather’s Edge: Ather Energy is coming from a vastly different trajectory to join Ola Electric in the public markets. What fate awaits Ather after Ola Electric’s less than pleasant beginning?
• The Deeptech Problem: India’s venture capital firms and fund managers often talk about innovation, but in the age of generative AI and deeptech, such talks seem shallow. So the question is: where are the deeptech investors?
• Swiggy’s Big Ask: The Swiggy IPO raises two major concerns — a high valuation and hefty losses on the books. Besides, the platform is now set to increase its IPO size as well. Will this come back to bite the food delivery giant?

Where Ola Electric Is Slipping

The scrutiny intensified when news broke that the Ministry of Heavy Industries (MHI) has asked the Automotive Research Association of India (ARAI) to verify if Ola Electric is honouring warranties and maintaining the requisite service centres.

This is a critical condition related to the company’s production-linked incentives which not only stipulate production levels but also standards in quality and safety. So there is some element of taxpayer money involved here.

This investigation comes at a time when the company’s sales have been declining. Ola Electric’s market share fell from over 30% in August to 27% in September—a signal that its grasp on the electric two-wheeler market may be weakening.

As Ola Electric grapples with this turmoil, competitors are gaining ground. Bajaj Auto’s sales surged in September, with 166% year-on-year growth, and market share growing from 19% to over 21%,

In contrast, Ola Electric’s registrations slipped 11% month-on-month, its lowest sales figures since October last year.

Legacy automakers, such as Bajaj and TVS Motor, have years of experience and have handled product or part recalls in the past. Ola Electric, being relatively new to the game, is yet to face such an issue, but its current service woes suggest that it could be heading down a spiral if it doesn’t follow the established playbook for product quality and customer service.

Meanwhile, others are also rising quickly. Ather Energy saw a 15% bump in September, and its market share has grown to 14% from 12% in August.

The fluctuations in the electric two-wheeler market this year have been influenced by changes in government subsidies under the FAME scheme. However, the recently approved ‘PM E-DRIVE Scheme,’ with an initial budget of INR 10,900 Cr over two years, aims to provide fresh momentum to EV adoption.

This new initiative targets the production of 24.79 Lakh electric two-wheelers, building on the previous FAME-II scheme, which supported the development of 10 Lakh vehicles.

This dip in sales for Ola Electric is particularly concerning given these widespread concerns about product quality. The Central Consumer Protection Authority (CCPA) issued a show cause notice asking Ola Electric to explain accusations of misleading advertising and unfair trade practices.

This emphasis on service and after-sales support should be the next focus area for electric two-wheeler makers, said Deloitte partner Rajat Mahajan.

Deloitte projects that by 2030, electric two-wheelers could account for as much as 50-55% of the total market, so naturally there’s a lot of room for all kinds of OEMs. Mahajan highlighted the distinct advantage that traditional OEMs have with extensive dealer networks and said they are better equipped to handle service and sales growth in conjunction.

“They don’t sell in districts where their customers cannot get service. Ola Electric and Ather are looking at it like a D2C model, but Ola Electric has taken it to an extreme. You cannot sell in one district and hope that the local mechanic will know how to fix the bike. Ather’s service is said to be much better and more streamlined, but they have their own set of challenges,” a Delhi NCR-based angel investor told Inc42 about why the traditional model is better for OEM services.

As these startups scale up, they may need to adopt hybrid models that combine D2C channels with dealership-based service centres to meet rising customer demands.

The Stock In Free Fall 

It’s no surprise that Ola Electric’s stock has been on a rollercoaster. On October 10, shares plunged 5.8% during intraday trading on the Bombay Stock Exchange (BSE), before closing down 5.19% at INR 90.81.

Reports around Ola’s poor service standards and the government involvement seems to have rattled investors. Since hitting a post-listing high of INR 157 in August, Ola’s shares have plummeted by 42.1%.

Earlier this week, the company launched its ‘HyperService’ initiative, promising “one-day resolution” for service issues in an attempt to stem the tide of customer complaints that have been widely circulated on social media.

While the market remains cautious, brokerages like Goldman Sachs and BofA Securities are still bullish, with Goldman Sachs assigning a price target of INR 160 per share.

Brokerage firm Bernstein, for example, maintains that Ola Electric is on track to achieve EBITDA profitability, with the highest gross margins among its competitors.

On the financial front,  Ola Electric’s consolidated net loss rose 30% YoY to INR 347 Cr in Q1 FY25, even though it fell on a quarterly basis. The Q2 FY25 numbers expected in early November will make things clear as to how the sales decline impacts Ola Electric.

In the past, Aggarwal had claimed that Ola Electric will rely on the premium category products for profitable growth. “Our premium portfolio is growing, and the launch of the mass segment has resulted in further 77% YoY growth in deliveries,” he said after the Q1 results. 

Are EVs Terrible For Customer Service?

So can Ola Electric learn from its competitors or is service an ecosystem-wide problem?

One Ather Energy executive claimed that some companies did not approach after-sales service with a clear strategy like they might have done on the distribution side. According to this senior executive, service is a natural extension of sales in the automobiles space. “When we open a new store, it’s mandatory for the dealer to also open a service centre,” the executive claimed.

Ather ensures that its service capacity matches its sales network, prioritising both technical training and soft skills for its technicians. This past week we examined how Ather’s premium positioning means it has to invest in customer service meaningfully, unlike Ola Electric which has gone for the affordable end of the spectrum. And service is a big part of the premium experience.

After accusations of poor customer service this past week, Ola said that it will look to take feedback and improve its services. Aggarwal said that the company heavily invests in training programmes, and will build a team of skilled EV technicians.

On Ather’s part, our sources said the company conducts skilling and refresher courses every six months, to ensure that its dealers and technicians can meet the high standards customers expect.

The shift to electric vehicles is also changing the dynamics of after-sales services. Traditional two-wheeler dealerships typically generate around 40% of their revenue from after-sales services. But this is not the case with EVs that have fewer mechanical parts. However, the complexity of EV technology and proprietary nature of some scooters means that authorised service centres are critical for scale.

Despite the noise about product quality and service issues, Deloitte’s Mahajan remains confident in his projection that by 2030, electric two-wheelers will dominate the market, provided subsidies and government support remain in place. And this is why the results of the government’s scrutiny into Ola Electric potentially dishonouring warranty claims is important.

Ola Electric, despite its strong product lineup, must address its service issues if it hopes to maintain its leadership position. The company’s current struggles echo those faced by smartphone makers like Xiaomi when they entered the Indian market in the early 2010s. Back then, Xiaomi was criticised for inadequate after-sales support.

This time, people are also more gravely concerned because vehicle safety issues are a lot more dangerous than a dysfunctional smartphone. “Like Xiaomi, Ola Electric will need to build a robust service network if it wants to stay on top. Otherwise, it risks losing customers and market share during this crucial growth period,” the angel investor quoted above added.

The timing of this controversy, coming during the festive season, is particularly concerning for Ola Electric, as poor service or product quality can quickly erode consumer trust. If not addressed, these issues could drive potential buyers toward competitors that have wider service networks and better recent reviews.

For Bhavish Aggarwal and Ola Electric, the road ahead also requires introspection. The company claims to be building an EV for India, but it seems to have forgotten that the quintessentially Indian maxim of ‘sasta aur tikaau’ has two parts that are equally important for the consumer.

Sunday Roundup: Tech Stocks, Startup Funding & More

• Indian startups raised $114 Mn via 22 deals during October 7-12, up 32% from $86.4 Mn, but much lower than the past few weeks. Is a cold October on the cards for Indian startups?
• Bengaluru-based B2B marketplace startup Zetwerk has joined the growing list of Indian startups eyeing an initial public offering, and is in talks with investment bank JP Morgan
• In another move to diversify beyond the grocery segment, Zomato-owned Blinkit is now preparing to roll out a cafe feature to deliver snacks and beverages to match Zepto and Swiggy Instamart

• Caratlane founder Mithun Sacheti and brother Siddhartha Sacheti, CEO of Jaipur Gems, have set up an investment firm Finqube Capital looking to institutionalise their angel investments
• Ahead of the IPO, Swiggy founder and CEO Sriharsha Majety and some of the company’s investors sold shares worth INR 670 Cr, with the CEO pocketing INR 23 Cr

The post Ola Electric Needs Servicing appeared first on Inc42 Media.

The world’s third largest startup ecosystem has been in the midst of a raging funding winter for a couple of years now. As investors tightened their purse strings, the Indian startup ecosystem has had to go through a lot of pain, which included thousands of employees losing their jobs. 

This was especially true for the fiscal year 2023-24 (FY24), when the funding drought peaked. Far from the capital boom of 2021, when fear of missing out (FOMO) among investors drove a valuation bubble, FY23 and FY24 turned out to be a reality check for the startup ecosystem as many shut shop while others took the debt route to extend their runways. 

However, not everything was doom and gloom. The struggle of the funding winter brought with it sanity in valuations and forced startups to cut their expenses to chart a profitable growth. This trend was evident in the financial statements of Indian startups in FY23 and seems to have continued in FY24 as well.

Of the 53 startups that have released their financial statements for FY24 so far, 31 ended the year with profitable numbers. Their cumulative profit stood at INR 4,159.4 Cr. 

The likes of Zomato, PB Fintech, Honasa and Milk Mantra turned profitable during the year under review.

Meanwhile, the remaining 22 startups posted a cumulative loss of INR 10,125.1 Cr, with just Paytm and Ola Electric accounting for more than INR 3,000 Cr of this loss figure. However, it needs to be highlighted that many of these startups were also able to cut their losses in FY24.

In terms of top line, the 53 startups posted a cumulative operating revenue of over INR 1 Lakh Cr (INR 1,30,288.77 Cr to be precise) in the year ended March 2024. 

So, without further ado, let’s take a look at the financial performance of some of these startups in FY24. 

Editor’s Note: This list is not a ranking of any kind, we have placed the companies alphabetically. This is a running list and will be updated periodically.

Inside The FY24 Financials Of Indian Startups

Note: All amount in INR Cr

[SC/]

*refers to net earned premium (GWP)

Avanse’s Profit Crosses INR 300 Cr Mark

IPO-bound non-banking financial company Avanse Financial Services posted a profit of INR 342.4 Cr in FY24, a jump of 117% from INR 157.7 Cr in the previous fiscal year.

Operating revenue also jumped 74.5% to INR 1,727 Cr in FY24 from INR 989.6 Cr in the previous year. 

Its IPO will comprise a fresh issue of shares worth INR 1,000 Cr and an offer for sale (OFS) component of shares worth up to INR 2,500 Cr. It plans to use the IPO proceeds to increase its capital base to fuel further expansion of its business.

Read More: IPO-Bound Avanse’s PAT Doubles To INR 342.4 Cr In FY24, Operating Revenue Surges 74%

Ather Energy’s Loss Crosses INR 1,000 Cr Mark

IPO-bound Ather Energy’s operating revenue declined 1.5% to INR 1,753.8 Cr in FY24 from INR 1,780.9 Cr in the previous fiscal year. On the other hand, its net loss widened over 22% to INR 1,059.7 Cr from INR 864.5 Cr in FY23.

Total expenses in FY24 stood at INR 2,674.2 Cr, rising marginally from INR 2,666.3 Cr in the previous year.

Read More: Ather Energy FY24: Revenue Declines On Reduction In FAME-II Subsidy, Loss Up 22% To INR 1,060 Cr

Awfis’ Loss Narrows 

Coworking space startup Awfis managed to reduce its loss to INR 17.75 Cr in FY24, a 62% decline from INR 46.6 Cr in the previous year. Though the startup was in loss for the entire fiscal year, it turned profitable in Q4 FY24. It posted a profit of INR 1.4 Cr in Q4 FY24. 

In terms of revenue, Awfis’ operating revenue jumped 55.6% to INR 848.8 Cr in FY24 from INR 545.2 Cr in the previous year. In Q4 FY24, the startup’s operating revenue jumped over 45% YoY to INR 232.4 Cr. 

Awfis went public in May this year. Its IPO comprised a fresh issue of shares worth INR 128 Cr and an OFS component of up to 1.23 Cr shares. Peak XV Partners and Bisque Limited were among the investors who sold shares via the OFS. 

Read More: Awfis Turns Profitable In Q4 With INR 1.4 Cr PAT, Operating Revenue Jumps 45% YoY

BlackBuck’s Loss Falls Below INR 200 Cr Mark

IPO-bound BlackBuck managed to lower its loss by over 30% in the financial year ended March 31, 2024. The logistics startup incurred a net loss of INR 194 Cr, a decline of 33% from INR 290.4 Cr in the previous fiscal year. 

The Flipkart-backed startup’s operating revenue zoomed 69% to INR 296.9 Cr in FY24 from INR 175.6 Cr in FY23. It primarily earns revenue by offering payments services, telematics, load marketplace, and vehicle financing services on its platform. 

The logistics unicorn’s IPO will comprise a fresh issue of shares worth INR 550 Cr and an OFS component of up to 2.16 Cr shares (2,16,09,022 to be precise). 

Read More: IPO-Bound BlackBuck Narrows Loss By 33% To INR 194 Cr In FY24

BlueStone’s Loss Narrows By 15% To INR 142 Cr

Omnichannel jewellery brand BlueStone managed to narrow its loss by almost 15% year-on-year (YoY) to INR 142.2 Cr in the financial year 2023-24 (FY24) from INR 167.2 Cr in the previous year. 

Its operating revenue surpassed the INR 1,000 Cr mark during the year under review. Revenue from operations surged over 64% to INR 1,265.8 Cr in FY24 from INR 770.7 Cr in the previous year. 

Total expenditure rose 51.4% to INR 1,445.7 Cr from INR 955.1 Cr in FY23.

Read More: BlueStone FY24: Revenue Surpasses INR 1,000 Cr Mark, Loss Narrows 15% To INR 142.2 Cr

CaratLane’s Revenue Breaches INR 3,000 Cr Mark

The Tata-owned omnichannel jewellery startup reported a 42% jump in its operating revenue to INR 3,080 Cr in FY24 from INR 2,169 Cr in the previous fiscal year. 

However, net profit declined nearly 5% to INR 78.59 Cr during the under review from INR 82.08 Cr in FY23 due to rise in advertising and “miscellaneous” expenses. 

CaratLane FY24: Profit Declines 5% To INR 79 Cr, Revenue Crosses INR 3,000 Cr Mark

CarTrade’s Profit Halves 

Used car marketplace startup CarTrade saw its profit fall 50% to INR 20 Cr in FY24 from INR 40 Cr in the previous fiscal year. The decline in the loss could be attributed to the startup’s acquisition of Sobek Auto India, comprising OLX Autos C2B business and OLX classifieds business, for INR 535.54 Cr.

CarTrade reported an operating revenue of INR 489.9 Cr in FY24 as against INR 363.7 Cr in the previous year.  

Read More: CarTrade Back In The Black With INR 25 Cr PAT In Q4; Revenue Jumps 38% YoY

Delhivery’s Loss Narrows By 75% 

Delhi NCR-based Delhivery posted a 75% decrease in its loss in FY24. The logistics unicorn reported a loss of INR 249 Cr during the year as against INR 1,007 Cr in FY23. 

Operating revenue stood at INR 8,141 Cr in FY24, an increase of 12.6% from INR 7,225 Cr in the previous fiscal year. 

The startup also reduced its advertising expenses to INR 16 Cr from INR 22 Cr in FY24. 

Read More: After A Profitable Q3, Delhivery Posts INR 69 Cr Loss In Q4 FY24

DevX Turns Profitable In FY24

IPO-bound coworking space provider DevX posted a net profit of INR 43.7 Lakh in FY24 as against a net loss of INR 12.83 Cr in the previous fiscal. 

The startup’s operating revenue zoomed 55% to INR 108.08 Cr during the year under review from INR 69.91 Cr in the previous fiscal year. 

The coworking space provider’s total expenses rose 37% to INR 119.50 Cr in FY24 from INR 87.49 Cr in the previous fiscal year.

Read More: IPO-Bound DevX Posts INR 44 Lakh Profit In FY24

DroneAcharya’s Profit Doubles

Pune-based drone startup DroneAcharya Aerial Innovations reported a consolidated profit after tax (PAT) of INR 6.2 Cr in FY24, almost double of INR 3.42 Cr profit it posted in the previous fiscal year.

DroneAcharya’s operating revenue increased nearly 90% to INR 35.19 Cr in FY24 from INR 18.56 Cr in FY23. The startup attributed this increase to the company’s steady and consistent growth as a drone solution provider and a drone training organisation.

Read More: DroneAcharya’s Net Profit Doubles To INR 6.2 Cr In FY24, Operating Revenue Jumps 90%

EaseMyTrip’s Revenue Inches Closer To INR 600 Cr Mark

Online ticketing platform EaseMyTrip saw its revenue rise 32% to INR 591 Cr from INR 488.8 Cr in FY23, driven by an increase in sales of air tickets. 

Despite the increase in revenue, the startup’s profit took a hit. EaseMyTrip’s profit fell 23% to INR 103.4 Cr in FY24 from INR 134 Cr in the previous fiscal year. Increase in advertising expenses was among the reasons for the decrease in profit.

Read More: EaseMyTrip Q4: Incurs Loss Of INR 15 Cr Due To One-Time Expenses

Ecom Express Sees Its Loss Decline 67%

IPO-bound logistics startup Ecom Express managed to reduce its net loss by 67% to INR 255.8 Cr in FY24 from INR 428.1 Cr in FY23.

The startup’s operating revenue saw a marginal 2.15% increase to INR 2,609 Cr in FY24 from INR 2,553.9 Cr in the previous fiscal year, as per its DRHP. Total expenses rose marginally by 0.64% to INR 2,921.5 Cr in  FY24, from INR 2,902.8 Cr.

Read More: Ecom Express FY24: IPO-Bound Startup’s Loss Narrows 67% To INR 255.8 Cr

Fasal’s Revenue Surges Nearly 90%

Agritech startup Fasal’s revenue from operations grew 89% to INR 34.1 Cr in FY24 from INR 18 Cr in FY23. Including other income, Fasal’s total revenue grew nearly 90% to INR 35.5 Cr in FY24 from INR 18.8 Cr in the previous fiscal year.

Meanwhile, total expenses rose 34% to INR 69.5 Cr during the year under review from INR 51.6 Cr in FY23. 

Loss increased 6% to INR 34 Cr from INR 32 Cr in FY23. 

Read More: Agritech Startup Fasal’s FY24 Revenue Jumps 89% to INR 34.1 Cr

Fino Payments Bank’s Profit Jumps Over 30%

Mumbai-based Fino Payments Bank’s operating revenue jumped 20% to INR 1,478.3 Cr in FY24 from INR 1,229.9 Cr in the previous fiscal year. 

Its expenses also grew almost in line with revenue. Total expenses stood at INR 1,391.5 Cr in FY24, up 19% from INR 1,164.8Cr in the previous fiscal year.

Fino’s net profit zoomed 32% to INR 86.2 Cr from INR 65 Cr in FY23. 

Read More: Fino Payments Bank Q4: Net Profit Rises 14% YoY To INR 25.21 Cr

FirstCry’s Loss Declines Over 30% 

Ahead of its IPO, kids-focussed omnichannel retailer FirstCry managed to reduce its net loss by 34% to INR 321.5 Cr in FY24 from INR 486 Cr in the previous fiscal year.

Its operating revenue increased 15% to INR 6,480.8 Cr during the year under review from INR 5,632.5 Cr in FY23. Expenses rose 9.2% to INR 6,896.6 Cr from INR 6,315.7 Cr in FY23. 

FirstCry made its public market debut in August. Its shares listed at INR 651 on the NSE, a premium of 40% over its issue price of INR 549.

Read More: FirstCry FY24: Loss Narrows 34%, Revenue Crosses INR 6K Cr Mark Ahead Of IPO

Go Digit’s Profit Zooms 5X

Insurtech startup Go Digit posted strong results with a 400% jump in its profit after tax (PAT) to INR 182 Cr in FY24 from INR 36 Cr in the previous fiscal year.

With the sharp growth in health, travel, and personal accident premiums, Go Digit’s total gross written premium (GWP) increased 24.5% to INR 9,016 Cr from INR 7,243 Cr in FY23.

Net earned premium rose over 37% to INR 7,096 Cr in FY24 from INR 5,164 Cr in FY23.

Read More: Go Digit FY24: PAT Jumps Over 5X To INR 182 Cr, GWP At INR 9,016 Cr

Mamaearth Turns Profitable In FY24

Honasa Consumer Ltd, the parent entity of D2C unicorn Mamaearth, returned to the black during the year under review. After posting a net loss of INR 150.9 Cr in FY23, the startup minted a profit of INR 110.5 Cr in FY24. 

Operating revenue rose 28.6% to INR 1,919.9 Cr from INR 1,492.7 Cr in FY23. Total expenditure jumped 21.3% to INR 1,822.4 Cr in FY24 from INR 1,501.6 Cr in the previous fiscal year.

Read More: Honasa FY24: Mamaearth Parent Turns Profitable For Full Fiscal Year

ideaForge’s Profit Nears INR 50 Cr Mark 

ideaForge reported its third consecutive profitable fiscal as the drone maker clocked a net profit of INR 47.8 Cr in the fiscal ended March 2024. This was an increase of almost 50% from INR 31.9 Cr. Its profit stood at INR 44 Cr in FY22. 

Operating revenue also soared more than 70% year-on-year (YoY) to INR 186 Cr during the year under review.

Meanwhile, expenses zoomed 81% to INR 282.9 Cr in FY24 from INR 155.6 Cr in the previous year. 

Read More: ideaForge PAT Slips 30% QoQ To INR 10.3 Cr In Q4

InCred’s Profit Surges 2.6X 

The fintech startup’s operating revenue crossed the INR 1,000 Cr mark during the year under review. InCred saw its top line grow nearly 47% to INR 1,270 Cr in FY24 from INR 864.6 Cr in FY23.

Meanwhile, profit soared 162% to INR 316.3 Cr from INR 120.9 Cr in FY23. Rising finance costs and employee benefit expenses pushed up InCred’s total expenses by over 37% YoY to INR 871.3 Cr during the fiscal year under review. 

Read More: InCred FY24: Profit More Than Doubles To INR 316.3 Cr, Revenue Crosses INR 1,000 Cr Mark

IndiaMART’s Revenue Crosses INR 1,000 Cr Mark

The B2B ecommerce major posted a 17% rise in its net profit to INR 334 Cr in FY24 from INR 283 Cr in the year-ago period. 

Operating revenue jumped 21% to INR 1,196 Cr in the fiscal ended March 2024 from INR 985 Cr in FY23. On similar lines, total expenses also rose 20% to INR 910.7 Cr in FY24 from INR 756.7 Cr in the previous fiscal year. This increase in expenditure was largely attributable to a sharp jump in employee benefit costs, which rose 27% YoY to INR 507 Cr during the year under review. 

Read More: IndiaMART Q4: Profit Surges 78% YoY To INR 99.6 Cr

ixigo’s Profit Triples 

Online travel aggregator ixigo had a bumper year as its net profit more than tripled to INR 73.1 Cr from INR 23.4 Cr in FY23. 

The travel tech major’s operating revenue increased almost 31% to INR 655.9 Cr in the reported fiscal year from INR 501.2 Cr in FY23. This came largely on the back of broad-based growth across its business verticals and healthy uptick in annual active users. 

Total expenditure jumped almost 30% YoY to INR 627.8 Cr in FY24.

Le Travenues Technology, the parent company of the travel tech startup, made a stellar debut on the stock exchanges in June 2024 and listed at INR 138.10 per share on the BSE, a 48.5% premium from the issue price of INR 93. 

Read More: ixigo FY24: Profit Jumps Over 200% To INR 73.1 Cr, Train Bookings Biggest Revenue Source

Josh Talks Trims Loss By 25%

Delhi NCR-based media and entertainment startup Josh Talks pruned its loss by 25% in FY24 to INR 9.88 Cr from INR 13.21 Cr loss it incurred in the previous fiscal year.

Revenue from operations rose 2% to INR 18.71 Cr from INR 18.29 Cr in FY23. Including other income of INR 65.40 Lakh, the startup’s total revenue for the fiscal stood at INR 19.37 Cr. This number was 3% higher than the INR 18.80 Cr total revenue for FY23. 

The startup also managed to lower its total expenditure by 9% to INR 29.2 Cr in FY24 from INR 32 Cr. 

Read More: Josh Talks FY24: Losses Come Down 25% To INR 9.8 Cr, Revenue Up 2%

MapmyIndia’s Profit Jumps 25% 

Geotech company MapmyIndia reported a profit of INR 134.4 Cr in FY24, up 25% from INR 107.5 Cr in the previous fiscal year. 

Operating revenue rose more than 34% to INR 379 in the year ended March 2024 from INR 281 Cr in FY23. Meanwhile, total expenditure increased 36% YoY to INR 240.9 Cr on the back of a sharp rise in other expenses, which rose 73%.

Read More: MapmyIndia’s Q4 PAT Jumps 35% YoY To INR 38 Cr

Milk Mantra Back In The Black

Bhubaneswar-based dairy tech startup Milk Mantra turned profitable in FY24, posting a net profit of INR 9.8 Cr as against a net loss of INR 12.3 Cr in the previous fiscal year. It is pertinent to note that the startup slipped into the red for the first time in FY23 after eight straight years of profitability. 

Operating revenue stood at INR 276.4 Cr in FY24, a marginal increase of 1.3% from INR 272.9 Cr in FY23.

 In terms of expenditure, the startup’s total cost fell a little over 7% to INR 269.1 Cr in FY24 from INR 289.5 Cr in the previous year. 

Read More: Milk Mantra Back In The Black With INR 9.8 Cr Profit In FY24, But Growth Remains Muted

Minimalist’s Profit Jumps 2X In FY24

D2C skincare brand Minimalist’s net profit more than doubled to INR 10.9 Cr in the financial year 2023-24 (FY24) from INR 5.2 Cr in FY23, on the back of a strong growth in its top line.

The Rajasthan-based startup’s revenue from operations surged 89% to INR 347.4 Cr during the year under review from INR 183.8 Cr in FY23.

Expenditure rose largely in line with the growth in its sales. Total expenses jumped 84% to INR 331.7 Cr in FY24 from INR 180.2 Cr in the previous fiscal year.

Read More: D2C Brand Minimalist’s FY24 Profit Doubles To INR 10.9 Cr, Revenue Up 1.9X YoY

Navi Finserv’s Operating Revenue Takes Hit 

Navi Finserv’s consolidated operating revenue fell 6.6% to INR 1,906.2 Cr in FY24 from INR 2,040.6 Cr in FY23. The startup’s profit from continued operations also slipped 41% year-on-year (YoY) to INR 155.6 Cr in FY24. 

It is pertinent to mention that Navi Finserv divested its entire holding in microfinance subsidiary Chaitanya India Fin Credit Private Ltd during the year under review. Including profit from discontinued operations, its net profit more than doubled to INR 545.1 Cr in FY24 from INR 264.2 Cr.

Total expenses saw a marginal increase to INR 1,750.4 Cr in the reported year from INR 1,743.9 Cr in FY23, with finance cost alone comprising over 37% of its total spending.

Read More: Navi Finserv FY24: Revenue Falls 6.6% To INR 1,906 Cr, Profit Down 41% YoY

Nazara’s Profit Increases By Over 20% 

Gaming major Nazara Technologies reported an operating revenue of INR 1,138.2 Cr during the year under review. This was an increase of 4.3% from INR 1,091 Cr in FY23. 

Profit jumped 21.7% to INR 74.7 Cr from INR 61.3 Cr in the previous fiscal year. 

Nazara’s total expenses stood at INR 1,112.4 Cr in FY24, an increase of 5.7% from INR 1,051.7 Cr in the previous fiscal year. 

Read More: Nazara Q4: Profit Shrinks To INR 18 Lakh, Operating Revenue Declines To INR 266.2 Cr

Nykaa Nearly Doubles Its Profit 

Fashion ecommerce startup Nykaa reported an operating revenue of INR 6,358.6 Cr in FY24, 23.6% higher than INR 5,143.8 Cr in the previous fiscal year. 

Its profit increased 89.5% to INR 40 Cr in FY24 from INR 21.1 Cr in FY23. 

The Falguni Nayar-led unicorn’s total expenditure grew 23.5% to INR 6,346.5 Cr in FY24 from INR 5,135.6 Cr in the previous fiscal year. 

Read More: Nykaa FY24: Despite Q4 Slide, Profit Rises By 80% For Full Fiscal Year

OfBusiness’ Revenue Crosses INR 19,000 Cr Mark

B2B marketplace OfBusiness’ consolidated operating revenue surged over 25% to INR 19,296.3 Cr FY24 from INR 15,342.6 Cr in the previous fiscal year. Net profit increased by over 30% to INR 602 Cr from INR 463 Cr in the previous fiscal year. 

Total expenses jumped 24.3% to INR 18,695.7 Cr in FY24 from INR 15,037.5 Cr in the previous fiscal year.

Read More: OfBusiness FY24: Profit Surges Over 30% To Cross INR 600 Cr Mark

Ola Electric Breaches INR 5,000 Cr Revenue Mark

Recently listed two-wheeler EV startup Ola Electric reported a 90% jump in its revenue to INR 5,010 Cr in FY24 from INR 2,630 Cr in the previous year, on the back of increase in sales of its EV scooters. 

The Bhavish Aggarwal-led startup also managed to cap the increase in loss ahead of its IPO. Its net loss rose 7% to INR 1,584.4 Cr in FY24 from INR 1,472 Cr in the previous year. Employee benefit expenses increased to INR 439 Cr from INR 427 Cr in FY23. 

Read More: IPO-Bound Ola Electric’s FY24 Net Loss Widens To INR 1,584 Cr, Revenue Jumps 90%

OPEN’s Revenue Slumps To INR 25 Cr

Neobanking startup OPEN’s operating revenue declined 17% to INR 24.8 Cr in FY24 from INR 29.9 Cr in FY23.

Including other income, the startup’s total revenue declined 13% to INR 46.1 Cr from INR 53.1 Cr in FY23. 

With the decline in revenue, the Temasek-backed startup’s net loss also reduced 30% to INR 170 Cr during the year under review from INR 242.2 Cr in the previous fiscal year.

Total expenditure fell 34% to INR 194.6 Cr in FY24 from INR 296.5 Cr in FY23. 

Read More: OPEN Spent INR 195 Cr To Earn INR 25 Cr Revenue In FY24

Oxyzo’s Profit Rises To Almost INR 300 Cr

Fintech unicorn Oxyzo, led by couple Ruchi Kalra and Asish Mohapatra, reported a 47% rise in profit to INR 290 Cr in FY24 from INR 198 Cr in the previous fiscal year. 

Operating revenue zoomed 58% to INR 903.3 Cr from INR 569.9 Cr in FY23. Oxyzo primarily earns revenue from the interest it earns by offering loans to small and medium enterprises.

Read More: Fintech Unicorn Oxyzo’s Profit Zooms 47% To INR 290 Cr In FY24

OYO Turns Profitable With INR 229 Cr PAT As Employee Costs Halve

IPO-bound OYO posted a net profit of INR 229.5 Cr during the year as against a net loss of INR 1,286.5 Cr in the previous financial year. 

However, its operating revenue remained almost flat during the year under review. Revenue from operations stood at INR 5,388.7 Cr in FY24, a decline of 1.3% from INR 5,463.9 Cr in the previous fiscal year.

The startup managed to reduce its total expenditure by 16% to INR 5,725.7 Cr in FY24 from INR 6,799.6 Cr in the previous fiscal year. 

Read More: OYO Turns Profitable With INR 229 Cr PAT In FY24 As Employee Costs Halve

Paytm’s Revenue Nears INR 10K Cr Mark

Troubled fintech giant Paytm posted a revenue of INR 9,977.8 Cr in FY24, an increase of 24.8% from INR 7,990.3 Cr in the previous year. It also managed to narrow its loss by 19.3% to INR 1,422.4 Cr from INR 1,775.6 Cr in FY23. 

However, it needs to be mentioned that the Vijay Shekhar Sharma-led company’s revenue is likely to take a hit in FY25 due to the RBI’s crackdown on Paytm Payments Bank. 

Read More: Paytm Q4: Net loss Widens To INR 550 Cr

PB Fintech Operating Revenue Crosses INR 3,000 Cr Mark

PB Fintech, the parent company of insurance tech platform PolicyBazaar, saw its revenue cross the INR 3,000 Cr mark in FY24. Its operating revenue rose 34.4% to INR 3,437.6 Cr during the year under review from INR 2,557.8 Cr in FY23. 

The company also turned profitable, posting a profit of INR 64.61 Cr during the year under review compared to a loss of INR 487.9 Cr in FY23. 

Read More: PB Fintech Stock Goes Through Market Swings After Reporting Profitable Q4 FY24

Porter’s Loss Declines 45% To INR 96 Cr 

The Peak XV Partners-backed startup’s loss declined 45% to INR 95.7 Cr in FY24 from INR 174.6 Cr in the previous fiscal year. Operating revenue zoomed 56% to INR 2,733.7 Cr in FY24 from INR 1,737.4 Cr in the previous fiscal year.

The startup’s total expenditure rose 46% to INR 2,862.1 Cr during the year under review from INR 1,964 Cr in the previous fiscal year. 

Read More: Porter FY24: Loss Declines 45% To INR 96 Cr, Revenue Crosses INR 2,500 Cr Mark

Purplle’s FY24 Sales Zoom 43% To INR 680 Cr 

The Abu Dhabi Investment Authority (ADIA)-backed unicorn reported an operating revenue of INR 679.6 Cr in FY24, an increase of 43% from INR 475 Cr in the previous fiscal year.

Purplle’s total expenditure rose only 15% year-on-year. Its expenses stood at INR 849.6 Cr in FY24 as against INR 738.3 Cr in the previous fiscal year. 

Purplle managed to reduce its cash burn during the year under review, as a result of which its net loss plummeted 46% to INR 124.1 Cr from INR 230 Cr in FY23.

Read More: Purplle’s FY24 Sales Zoom 43% To INR 680 Cr, Loss Almost Halves

RateGain’s Profit More Than Doubles 

Traveltech company RateGain’s consolidated profit after tax jumped 114% to INR 146.3 Cr in FY24 from INR 68.4 Cr in FY23. Its operating revenue zoomed 69% to INR 957 Cr during the year under review from INR 565 Cr in FY23

Employee benefit expenses increased to INR 380 Cr from INR 252.7 Cr in FY23, indicating an increase in employee count. 

Read More: RateGain FY24 Results: Profits More Than Double To INR 146 Cr

Rebel Foods’ Loss Narrows By 42%

Cloud kitchen unicorn Rebel Foods narrowed its net loss by 42% to INR 378.2 Cr in FY24 from INR 656.5 Cr in the previous fiscal year. The Faasos-parent trimmed its loss on the back of an increase in its top line and controlled expenses.

Rebel Foods’ operating revenue jumped 19% to INR 1,420.2 Cr in FY24 from INR 1,195.2 Cr in FY23. Total expenses increased marginally by 1.6% to INR 1,857 Cr from INR 1827 Cr in the previous fiscal year.

Read More: Rebel Foods FY24: Net Loss Nearly Halves To INR 378 Cr, Revenue Up 19% YoY

IPO-Bound Smartworks’ Loss Falls 51% 

IPO-bound coworking space provider Smartworks’ net loss narrowed 51% to INR 49.8 Cr in FY24 from INR 101.02 Cr in the previous fiscal year. The startup, which recently filed its DRHP to raise over INR 550 Cr via its IPO, saw its operating revenue jump 46% to INR 1,039.4 Cr during the year under review from INR 711.4 Cr in FY23. 

Total expenditure increased 34% to INR 1,180.7 Cr from INR 880.2 Cr in the previous fiscal year. 

Read More: Smartworks DRHP: FY24 Loss Declines 51% To INR 50 Cr, Revenue Crosses INR 1,000 Cr Mark

Swiggy’s FY24 Revenue Crosses INR 10K Mark

IPO-bound Swiggy managed to narrow its loss by 44% to INR 2,350 Cr in FY24 from INR 4,179.3 Cr in the previous fiscal year. 

Operating revenue stood at INR 11,247.3 Cr, up 1.3X from INR 8,264.5 Cr in FY23. 

The IPO-bound company managed to control the rise in its expenses during the year. Its total expenditure grew a mere 8% to INR 13,947.3 Cr from INR 12,884.3 Cr in FY23.

Read More: Swiggy DRHP: Revenue Crosses INR 10,000 Cr Mark In FY24, Loss Almost Halves

TAC Infosec Reports INR 6 Cr Profit

SaaS cybersecurity startup TAC Infosec reported a net profit of INR 6.33 Cr in the financial year 2023-24 (FY24), a 23% jump from INR 5.12 Cr in FY23. 

Operating revenue rose 17% to INR 11.84 Cr during the year under review from INR 10.09 Cr in FY23.

Total expenditure for the fiscal stood at INR 5.49 Cr, an increase of 10% from the INR 4.97 Cr in the previous fiscal year.

Read More: SaaS Cybersecurity Startup TAC Infosec’s FY24 Profit Rises 23% To INR 6.3 Cr

Tata 1mg Narrows Its Loss By 75% 

The Bengaluru-based startup’s net loss narrowed 75% to INR 313 Cr in FY24 from INR 1,254.8 Cr in the previous fiscal year. 

The startup, which primarily earns revenue from sales of medicines, and offering lab and diagnostics test services, saw its operating revenue rise 21% to INR 1,967.7 Cr during the year under review from INR 1,627 Cr in FY23.

It managed to cut its total expenditure by 20% to INR 2,302.7 Cr in FY24 from INR 2,893.6 Cr in the previous fiscal year.

Read More: Tata 1mg FY24: Loss Declines 75% To INR 313 Cr On Business Growth, Fall In Expenses

TBO Tek Posts INR 200 Cr Profit 

B2B travel portal TBO Tek, which made a strong market debut in 2024, reported a 35% increase in its net profit to INR 200 Cr in FY24 from INR 148.4 Cr in the previous fiscal year. Operating revenue jumped 31% to INR 1,392.8 Cr from INR 1,064 Cr in FY23. 

Employee benefit expense rose to INR 277.3 Cr during the year under review from INR 228.3 Cr in FY23.

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

Read More: TBO Tek Q1: Profit Jumps 29% YoY To INR 61 Cr, Revenue Up 21%

Tracxn’s Profit Tanks In FY24

In what was a sombre fiscal for Tracxn, the market intelligence platform saw its net profit shrink by more than 80% to INR 6.5 Cr in FY24 from INR 33 Cr in the year-ago period. 

Tracxn’s operating revenue rose nearly 6% to INR 82.70 Cr during the year under review from INR 78.10 Cr in FY23.

Tracxn FY24 Results: Profits Shrink By 80% For Full Year

Trust Fintech’s Profit Triples 

The fintech SaaS company’s net profit zoomed 210% to INR 12.5 Cr in FY24 from INR 4 Cr in the previous fiscal year, on the back of a healthy growth in its top line.

The company, which made its public market debut in April 2024, saw its operating revenue jump 55.4% YoY to INR 35 Cr during the fiscal year ended March 2024.

Trust Fintech’s Net Profit Jumps 3X To INR 12.5 Cr In FY24

WROGN’s Operating Revenue Slumps 29%

Virat Kohli and Accel-backed youth fashion brand WROGN’s operating revenue slumped 29% to INR 243.8 Cr in FY24 from INR 344.3 Cr in the previous fiscal year. Including other income, total income declined 27% to INR 264.7 Cr in FY24 from INR 361.3 Cr in FY23.

Despite the decline in revenue, WROGN’s net loss rose 28% to INR 56.8 Cr during the year under review from INR 44.3 Cr in FY23.

Read More: Virat Kohli-Backed WROGN’s FY24 Revenue Falls 29% To INR 244 Cr, Loss Up 28%

IPO-Bound Zappfresh’s Profit Rises 70% 

The IPO-bound D2C meat delivery startup reported a 70% jump in its net profit to INR 4.7 Cr during the fiscal ended March 2024 from INR 2.7 Cr in FY23. 

As per its draft red herring prospectus (DRHP), Zappfresh’s operating revenue zoomed over 60% to INR 90.4 Cr in FY24 from INR 56.3 Cr in the previous fiscal year. 

Zappfresh DRHP: Revenue Surges 60% To INR 90 Cr In FY24, Profit Jumps 70%

Edited By: Vinaykumar Rai
Last Updated: 12 Oct, 6:30 PM IST

The post Indian Startup FY24 Financials Tracker: Tracking The Financial Performance Of Top Startups appeared first on Inc42 Media.

As the Indian startup ecosystem mourns the demise of Ratan Tata, chairman emeritus of Tata Sons, many of his angel investments and early bets have come into the limelight.

From backing Ola and Ola Electric in the early days to investing in listed giants such as Paytm, Tracxn, FirstCry and others — Tata was celebrated as a visionary investor.

With over 40 startups in his portfolio — personal as well as through his family office and venture fund — Tata influenced the course of startups across different sectors, from ecommerce to mobility to consumer services and fintech startups.

Calling himself an accidental investor, he once said, “If the founder has passion and innovation, he needs to be supported. I am more intuitive than a numbers person and I also recognise that not all investments are going to be positive, some may fail and some may have problems for different reasons, but that is life.”

Besides investing in new-age ventures over the past 12 years, Tata served as an advisor and mentor for numerous other startups and even funds such as Kalaari Capital.

With his support and guidance many of these startups have not just turned successful, but also gone through the trials and tribulations to reach unicorn status and the stock exchanges. Let’s dive into some of the prominent brands of the Indian startup ecosystem, backed by Ratan Naval Tata.

A Peek Into Ratan Tata’s Portfolio

The list below is not a ranking of any kind. The startups have been listed in alphabetical order.

Ampere 

Besides Ola Electric, Tata’s big bet in the EV sector was on Ampere, In fact, it was one of the first automobile startups to secure investment from Tata when he invested about INR 3 Cr in Ampere in his personal capacity in 2015. 

Later in 2018, the industrialist took an exit and is believed to have earned more than twice his investment. Tata’s nous in his investments is evident from the fact that he scored several such big exits across many of his portfolio companies. 

Atlan 

Tata was always early on the opportunity and has looked to back platforms and companies that have the potential to create long-term impact. And that’s the case with data collaboration platform Atlan 

Founded by Prukalpa Sankar and Varun Banka, Atlan allows data teams to work in collaborative workspaces to build applications and other internal products. 

In May this year, data democratisation platform raised $105 Mn in its Series C funding round, co-led by Singapore’s sovereign wealth fund GIC and Meritech Capital. The company is valued at close to $750 Mn in 2024 and is among the profitable startups in Tata’s portfolio. 

BlueStone

The ecommerce sector saw the most investments from Tata in a personal capacity and through his two investment vehicles. He backed omnichannel jewellery brand BlueStone in 2014, at a time when ecommerce was just taking roots in India.

From those early days, Tata saw the company reach the IPO stage in 2024. The company completed an INR 900 Cr funding round, pushing its valuation to $970 Mn. BlueStone’s operating revenue surpassed INR 1000 Cr mark in FY24 and it’s eyeing an IPO next year. 

CarDekho 

Auto marketplace CarDekho’s parent entity bagged an undisclosed amount of funding from Ratan Tata in 2015. This investment is said to be his fourth bet in the Indian startup space after Snapdeal, BlueStone and UrbanLadder.

Founded by Amit Jain and Anurag Jain in 2008, CarDekho is eyeing $500 Mn IPO next year. In 2021, the company entered the unicorn club after raising $200 Mn in an equity Series E round and $50 Mn in debt.

CashKaro

When it comes to the fintech sector, Paytm is the biggest name in Tata’s portfolio, but he also backed cashback and coupons platform CashKaro in 2016, at a time when no one was sure of where the business model would head. 

This was just three years after the startup’s inception and the beginning of the UPI revolution which has lifted all fintech boats. It is pertinent to note that Ratan Tata was also on the advisory board of Kalaari Capital, a key investor in CashKaro. 

Founded by Swati Bhargava and Rohan Bhargava, CashKaro’s consolidated operating revenue, is said to have jumped over 20% to cross the INR 300 Cr mark in FY24, thanks to its foray into aggregating and recommending credit cards and other financial products. 

Curefit

The healthtech unicorn secured an investment of $3 Mn from Ratan Tata’s RNT Capital in 2017, and a few years later, Curefit raised $75 Mn from Tata Digital. 

Founded by Mukesh Bansal and Ankit Nagori in 2016, CureFit runs physical fitness platform Cult.fit, mental health platform MindFit, primary care vertical Care.fit, among others. The company entered the unicorn club in 2021, after a $145 Mn funding round led by Zomato and South Park Commons.

FirstCry

FirstCry was one of the first vertical marketplaces to really take off in India. The company rightly identified that shopping for kids is much different than shopping for products on Amazon and Fipkart. 

In 2016, Tata acquired a 0.02% stake in FirstCry for INR 66 lakh in the company to buy 77,900 equity shares for INR 84.72 per share, as per disclosures in FirstCry’s IPO filings. 

Even though this was six years into the company’s journey, Tata came in at the right time. Incidentally, Tata sold these shares in the IPO for INR 5 Cr, netting a staggering 660% return on his investment. 

GOQii

Founded in 2014 by Abhishek Sharma, Champ Alreja, Sachin Janghel and Vishal Gondal, fitness startup GOQii was one of the pioneers in India’s healthtech ecosystem.

Tata invested in GOQii 2016, and saw the healthtech opportunity much earlier than many noted venture capital funds. Since then the company has raised multiple rounds and has created a hybrid fitness platform built around smartwatches and expert training. 

Innoviti

The digital payment solutions provider attracted Tata and Tata Sons attention thanks to its business model of empowering retailers. 

Titan Industries picked up a 5% stake in the Bengaluru-based startup in 2007. Then, in 2014, it raised INR 10 Cr funding from Tata Capital and others. 

The company was established by Amrita Malik and Rajeev Agrawal, and develops payments processing, credit distribution, and payments management software solutions. 

Moglix 

Along with ecommerce marketplaces, Tata also brought his mentorship and early stage advice to B2B marketplace Moglix in 2016, just a year after inception. The company went on to become a unicorn in 2021, at the peak of the Indian startup funding spree. 

The ecommerce platform caters to merchants and businesses looking to procure industrial tools and equipment. It pushes supply chain efficiencies in business purchasing.

Ola

In 2015, Ratan Tata invested an undisclosed amount of funding in ride railing startup Ola, picking up a minority stake in the company. Later in 2017, Tata’s VC firm RNT Capital participated in Ola’s Series I funding round, in which the company raised a total of $104.4 Mn (INR 670 Cr). 

Founded by Ankit Bhati, Bhavish Aggarwal and  Pranay Jivrajka in 2010, Ola offers a wide range of mobility solutions with vehicles across bikes, auto-rickshaws, metered taxis, and cabs. 

Ola Electric 

The story, as told by Bhavish Aggarwal on Twitter (X) after Tata’s passing, is that the Ola investor and mentor once invited Aggarwal to Chennai to demonstrate his personal electric vehicle project built on the Tata Nano platform. 

Aggarwal later claimed that this was one of the forces that compelled him to launch Ola Electric. He invested in the EV business in May 2019 as part of the company’s Series A round. 

Ola Electric is part of the cluster of startups in Tata’s portfolio that have hit the public markets, though. RNT Associates, Tata’s VC firm invested INR 14 Cr in Ola Electric soon after its inception. The firm sold its stake in the IPO and netted 10.2X returns on its initial investment.

Paytm 

Fintech major Paytm was one of the key startups in which Tata invested in the early days. It was a personal investment in 2015 where he picked up a small stake. Besides this, he took on the role of an advisor to Paytm at the same time. 

Founded by Vijay Shekhar Sharma in 2000, Paytm offers payment solutions to merchants and customers such as online payment gateway, QR payments, card payments. With its listing in 2021, Paytm grabbed the limelight as it was the first fintech major to hit the public markets. 

Snapdeal

Tata was a big believer in the ecommerce story of India. He backed some of the earliest vertical and horizontal marketplaces, and Snapdeal is counted as one of his first investments in the Indian startup ecosystem. 

In 2014, Tata invested an undisclosed amount of funding in the Gurugram-based ecommerce giant, which went on to become a unicorn and then saw a swing in fortunes. Nevertheless, the startup founded by Kunal Bahl and Rohit Bansal in 2010, has persevered. For instance, Snapdeal’s acquisition and scaling up of Unicommerce led to the company’s public listing in 2024. 

The company managed to narrow down its net loss by 44.7% to INR 282.2 Cr in FY23 from INR 510.3 Cr in the prior year.

Tracxn 

Another of the listed companies in Tata’s portfolio, Tracxn went to the public markets in 2022. Six years before this, Tata led a funding round for the Bengaluru-based market intelligence platform. Like many of his deals as an angel, the size of the deal and his stake were not disclosed at the time. 

Founded by Abhishek Goyal and Neha Singh in 2013, Tracxn is a market research and data platform that tracks company financials and captables of entities worldwide. The company posted an 84.6% jump in its profit after tax to INR 1.27 Cr in the June quarter (Q1) of FY25 from INR 68.93 Lakh in the year-ago quarter.

Upstox

Just days before his demise, reports indicated that Tata took a partial exit from discount broking platform Upstox with 10X returns after the startup concluded a buyback of 5% of equity. 

Tata registered a 23,000% return on the original investment made in 2016, based on the startup’s last valuation of $3.5 Bn, the startup said. Tata acquired a 1.33% stake in Upstox when he invested in the startup in 2016.

Urban Company 

It’s a testament to Tata’s vision that he identified many of the startups that have become the flag bearers of the Indian startup ecosystem. 

Take for instance, Urban Company, which was founded in 2014, by Abhiraj Bahl, Raghav Chandra and Varun Khaitan, where Tata invested after just one year of operations. At the time the company was called Urban Clap, and was also backed by Snapdeal founders Kunal Bahl and Rohit Bansal, two entrepreneurs who were also in Tata’s portfolio. 

Recounting his contribution to the startup, Urban Company said that it is “fortunate to have Mr. Ratan Naval Tata as one of our investors and backers”.

Urban Ladder

Way back in 2014, well before ecommerce had taken roots in India, Tata invested in furniture marketplace Urban Ladder. In 2020, Reliance Retail bought 96% stake in Urban Ladder in an INR 182.12 Cr deal.

Incidentally, Urban Ladder founder Rajiv Srivasta once said, “You can see that he [Ratan Tata] is very active in the ecommerce industry in India with multiple other investments and he follows our company even closer because he has a big passion for furniture being an architect himself.”

This quote is an indication of Tata’s penchant for backing startups in areas that he is personally invested in. Other examples that stand out are Ola Electric.

The post Ratan Tata’s Portfolio: 18 Startups That Highlight His Investment Acumen appeared first on Inc42 Media.

India’s venture capital firms and fund managers often talk about innovation, but in the age of generative AI and deeptech, such talks seem shallow.

That’s because when we look at the startups that have raised the most funds in India over the past two years, or the ones that have given exits, the innovation is only seen in the business models and commercial models, rather than technology itself.

For instance, when it comes to AI and deeptech, Indian startups have largely benefitted from the IP creation and technology created in Silicon Valley and Europe, but only a few claim to have created such an IP. And so comes the perennial question — when Indians are the ones building products and platforms for Google, Microsoft, Amazon, Meta and other giants, why have no such companies emerged from India in the past decade?

The answer, among Indian VCs at least, is the lack of the patient and domestic capital base that was needed to create those giants in the west. And as the first wave of startups mature, it’s unlikely that such large outcomes will ever be seen in India.

But large outcomes is something that VCs should be chasing. And what can be larger than creating the next Nvidia or OpenAI in India, as foolhardy as it may seem right now?

As OpenAI’s Sam Altman said in 2023 Indian startups cannot hope to build something like a large language model (LLM) for $10 Mn or even $100 Mn. Microsoft poured in billions and so did other investors, leading to  the stage where OpenAI stands today.

Even so, it’s a loss-making company — the latest projections show a staggering loss of $14 Bn even in 2026. Yet, no one can argue that OpenAI has created the groundswell for generative AI and machine learning that will have a lasting impact.

Despite the ongoing funding challenges, the sector has continuously grown in the last three years. In 2023, deeptech startups raised $496 Mn compared to $397 Mn in 2022, according to Inc42’s latest “Indian Tech Startup Funding Report 2023”.

Overall, between 2014 and 2023, deeptech startups in India secured over $1.5 Bn in funding across 343+ deals, but many of these companies are much smaller in scale versus the traditional tech giants. So what will it take for India to grow its deeptech expertise?

Deeptech Is Just Beginning

It’s perhaps not surprising to some investors that Indian companies cannot come close to behemoths such as OpenAI or Google. The DNA of tech in India is quite different from that in the West, according to a Bengaluru-based early-stage fund’s founder.

As he said, in the West, the idea in the early 1980s and 1990s was always to build something for the world to use, and export technology because the US market was limited at that time. “India began late, and therefore, we will be late on many things. When we decided to leverage tech, there was the realisation that no one is catering to Indian problems and consumers. Tech startups could only build on top of existing IP, and this also suited us because we were focussing inwards rather than outwards,” the founding partner added.

That’s something other marquee funds are also claiming. Peak XV’s Rajan Anandan told Inc42 last year that deeptech playbooks are now being written in India, and typically, Indian startups move from application to the tech side because that’s the go-to-market strategy that has worked so far. As Anandan put it, AI startups have been around for decades, and investors have backed them for years, but what India needs now is the infrastructure

And this is also why viewing AI as the primary deeptech segment is perhaps facetious and myopic. “We are seeing what’s happening beyond AI and that’s very critical for the Indian tech economy to mature beyond where we are. [At Peak XV] we have two semiconductor companies. Mindgrove is making systems on chip. InCore is building a fabless semiconductor startup, while Newtrace is working to improve India’s green hydrogen production,” Anandan added, indicating the beginning of VCs backing startups creating tech IPs in India.

The True Depth Of Deeptech

Developing a global generative AI success story from India means dealing with the reality of how expensive it is currently, even though deeptech itself allows so many varied business models, according to All In Capital founder Kushal Bhagia.

We are talking about robotics, industry 5.0, machine learning, generative AI, semiconductors, AI computing capacity and of course data refinement and enrichment. All of these are open for disruption, Bhagia said.

Most early stage investors do not have the appetite and today, startups cannot build tech IP with 10s of millions of dollars, like it was possible in the 1980s. The investor quoted above added, “The age of the garage startups is well and truly over. Today, the technology that is defining the world is being made in shiny buildings. Do you really expect Indian companies to build the same from the garage?”

What many investors are asking for is not just domestic capital, but domestic capital that is patient. To extend the analogy, Indian startups are building with a garage mindset and competing with giants. While it’s commendable, this cannot be done on a small pool of capital that demands an exit in six to seven years.

But at the same time, there is a bit of a chicken and egg problem. As one fund manager who has backed companies like LLM maker Sarvam AI, semiconductor IP company InCore and other startups in the deeptech space told us, “Till there is a big outcome from India, all deeptech bets will seem small. Just like till Flipkart, Indian ecommerce was just an India story.”

What about VCs that are very bullish and long on deeptech. The likes of pi Ventures, Bharat Innovation Fund, Exfinity Ventures, Speciale Invest, Bharat Innovation Fund among a host of other funds are specifically looking at deeptech sectors. BIF’s Ashwin Raguraman is one of the most optimistic investors when it comes to deeptech in India.

He told Inc42 that startups are more than capable of resolving some of the most pressing problems in India — from access to healthcare to agriculture to education to social welfare and governance. So far they have not been given the foundation that is needed. With the introduction of the India AI Mission, which promises compute capacity, besides access to data and network, some of the foundation is being taken care of.

“As civilisations evolve, things are bound to become complex. The more complex the problem, the deeper the technology you need to resolve them. I’m certain that the deeptech built by talent from India is going to play a big role in solving complex global problems,” Raguraman, one of the founders of the $100 Mn deeptech focussed fund, said.

Patient Capital In The Age Of Exits

This group of investors, which has put the wagon behind deeptech, surprisingly believe that deeptech investments will outlast and outperform consumer-facing sectors in the long run. These are the models that are creating foundations — both hardware and software — for the future.

“When a deeptech startup goes past the initial stage of product creation and achieves product market fit, follow-on generalist investors are willing to come in because there’s tech acting as a differentiator, thereby offering strong moats and better opportunities to scale,” BIF’s founding partner added.

But he also acknowledges that getting there is not for every deeptech startup. Finding the product-market fit is hard in the deeptech space because these companies are creating the very technology that is rapidly evolving all the time. So deeptech is not for investors without the tenacity to last this course.

Unfortunately, the current attention of most of the VC ecosystem is on outcomes such as public offerings and exits through secondary. Over the past two months, we have written about this movement, which has been necessitated by the upcoming fund closure deadlines of some of the most prominent funds in India.

Exits through IPOs are also being heralded for multibagger returns and vindication of investment. Zomato is one example, but ask any deeptech VC and they will tell you the opportunity is larger on the IP and tech innovation side than what most investors even understand.

The narratives around exits and IPOs will not be seen in deeptech for at least a decade. Do investors have the patience to endure another decade of limited outcomes, just as they are reaping the fruits of the past decade?

The post India’s Deeptech Problem: Where Are The VCs Backing Startups Creating IP, Innovation? appeared first on Inc42 Media.

When Ola Electric was gearing up for its IPO, there was palpable excitement among investors for the first public offering from the automobile sector in two decades. In stark contrast, now that Ather Energy is set for a public listing, the mood is sombre.

At least some of the excitement around Ola Electric has given way to fears about profitability, and the stock has been in something of a free fall as the market adjusts to the long trajectory for breakeven, and multiple years of losses for the Bhavish Aggarwal-led EV giant.

And with many investors now sitting on losses when it comes to their Ola Electric holding, naturally, there are some questions and concerns around Ather Energy’s valuation and the potential pricing of the INR 4,500 Cr+ IPO.

In the latest news, Ather Energy has secured the second spot in September 2024 sales. However, examining the FY 25 electric two-wheeler sales data, Ather has fallen to fourth place, losing its third position to Bajaj Chetak. Bajaj has increased its market share from 11% in FY 24 to 14% in FY 25, while Ather’s market share has declined from 12% in FY 24 to approximately 10% in FY 25.

Given that September 2024 sales have stagnated, Ather’s light asset model may appeal to investors as a calculated risk compared to the heavily invested Ola Electric.

However, given that EV benchmarks and multiples have not yet crystallised, Ola Electric is arguably the closest and truest comparison for Ather Energy. So with Ola Electric’s valuation now under $4 Bn after two months of listing after touching a high of nearly $8 Bn in August, is Ather Energy also risking a devaluation soon after listing?

Usually, the unlisted securities market is a great way for us to track the valuations and the pricing that pre-IPO companies might trend towards. According to reports, Ather Energy is targeting a valuation of around $2.5 Bn for its IPO, almost double the $1.3 Bn valuation at which it raised $70 Mn in August this year.

But as market observers told Inc42, the question is not just about valuation alone. It’s also about key differences in the business models i.e the vertical integration at Ola Electric and Ather Energy. 

Among the key differences are:

• Market Focus: Ola aims to produce mass-market vehicles, while Ather is perceived as a provider of premium vehicles.
• Cell Production: Ola Electric intends to manufacture its cells, whereas Ather relies on its vendors for cell supplies.
• Service and Experience Centres: Ola owns its 800+ experience centres and 431 service centres. In contrast, Ather has 211 experience centres and 192 service centres, with only one owned by the company; third-party retail partners operate the rest.

These two companies come from vastly different trajectories. Ola has gone for the blitzscaling approach, whereas Ather claims its long-term strategic investment is better for the automobile industry. 

In terms of sales, Ola Electric has outpaced Ather significantly in the past two years, but Ather still gets the thumbs-up from industry insiders when it comes to product quality.  So when we look at the Ather and Ola Electric battle — beyond sales and revenue — we have to consider the EV stack, the positioning of these two EV trailblazers.

How Ather Energy Stacks Up Vs Ola

A straight apples-to-apples comparison is not possible though, given that Ola Electric is looking to build the complete stack for EVs, while Ather Energy is working more in the mould of an OEM. 

For instance, as we highlighted recently, Ola Electric has nearly a dozen subsidiaries and is deeply involved in in-house manufacturing of key components—including battery cells. On the other hand, Ather Energy has consciously chosen to remain relatively asset-light, operating as a single registered company without entering the cell manufacturing sector, for instance, and has not committed to launching new products like Ola Electric.

Umesh Chandra Paliwal, founder and CEO of UnlistedZone, believes Ola’s model has its advantages, but it does require a lot more operational oversight. 

By controlling the supply chain, especially when the battery along with controller constitutes about 50% of an EV’s manufacturing cost, Ola Electric can optimise production costs and improve its margins. Additionally, Ola operates its own showrooms and service centres, providing customers with a complete in-house experience that strengthens brand control.

In contrast, Ather manufactures EVs but does not produce its battery-cells. Furthermore, Ather’s experience centres and service networks are managed by third-party partners as is the case for traditional ICE vehicles. And finally, Ather’s scooters are positioned as premium products, with a strong focus on delivering a high-quality user experience, which justifies their higher price point. 

And this comparison reminds Paliwal and others of the battle between Apple and Android smartphone makers such as Samsung. Both models have proven effective to some extent, but each has its pros and cons. 

Is Going Asset-Light In Ather’s Favour?

One key concern raised about Ather is that, unlike Ola Electric, Ather does have no control on 50% of its costs due to the dependency on others for the cells. This limits the EV company’s ability to reduce costs further, a problem that Ola has looked to tackle through vertical integration. 

However, Vinkesh Gulati, a member of the executive committee, Federation of Automobile Dealers Associations, asserts that comparing Ather Energy with Ola Electric is unfair. Ather is viewed as a premium electric two-wheeler brand having technically advanced and unique products , while Ola is recognised for mass-market vehicles. As a result, even though Ather may not have control over cell costs, consumers are still willing to pay a premium for its products. 

At the same time, as the EV sales tanked in September, 2024, Ather’s business model is being seen as more agile. The asset-light model does allow Ather to pivot more easily over time, especially for components and parts where technology standards change routinely. For instance, if sodium-ion batteries become the standard and lithium-ion technology becomes obsolete, Ather could quickly adapt to sodium without losing much in the process, unlike Ola, which would need to rewire a lot of its operations. 

Unlike Ather Energy, Ola has taken on the task of cell manufacturing, and the establishment of gigafactories under the government’s PLI scheme is expected to accelerate this vertical. 

What this means is that Ola might suffer from supply chain and pricing fluctuations for raw materials (such as cathode and anode minerals), especially as it scales up cell manufacturing and increases the domestic component mix as has been mandated by the government. 

This is most evident from the fact that Ola spent nearly 100% of its annual revenue on procurement of materials alone in FY22 and FY23. This has reduced slightly in FY24, but given the revenue base, it is still a significant investment.

Ensuring access to raw materials will be increasingly important in the long run as the EV ecosystem grows, and companies need to implement de-risking strategies to mitigate potential supply chain disruptions, according to Gulati and others. 

Raw materials account for over 60% of cell production costs, for instance. Given India’s dependency on imports for raw materials for cell manufacturing, future Ola Gigafactories may face pricing pressures from raw material suppliers and EV manufacturers. 

In terms of R&D expenditure, Ola Electric outspends Ather. As of FY 2024, Ather allocates 6.6% of its operational revenue to R&D, while Ola Electric invests 7.69%. This investment is also reflected in their intellectual property (IP) portfolios. Ather has acquired 45 patents and has 210 patent applications pending, whereas Ola Electric has secured 88 patents and currently has 217 applications pending.

At the moment, it’s not clear whether Ather will invest in cell manufacturing in the long run, but for the time being, it does have a bit of a cost advantage in case there are any changes in terms of the battery technology or disruption to the raw material supply chain. 

The disadvantage for Ather Energy, of course, is that since it is not manufacturing cells, it will have to spend more to acquire batteries for its vehicles in case of any supply chain disruptions, but Ather Energy has protected itself against a potential price hike by positioning its products in the premium price tier, as opposed to Ola Electric. 

Are Ather EVs Better Than Ola Electric?

Despite not having complete control over its vehicle manufacturing, Ather’s electric two-wheelers (E2Ws) are perceived to be better than Ola Electric. 

“Ola Electric may have invested significantly more in research and development, however, Ather Energy’s scooters are recognised for providing a superior riding experience compared to competitors,” according to a former head of Royal Enfield’s electric segment. 

However, a cursory glance at the specifications shows that Ather trails Ola Electric’s product lineup in terms of vehicle range, speed, and motor power, some of the key aspects that appeal a lot to Indian EV buyers. Ather also struggles to match Ola Electric’s pricing perhaps due to the ‘scale’ differences. 

So what makes Ather supposedly better than Ola? Often the reason is subjective. 

One wonders how much of the premium charged by Ather goes towards ensuring that its customers have fewer complaints about the product quality. 

“If you are positioning your brand as a premium offering, your advertising and marketing expenses will be higher, even if sales are lower. However, in Ather’s case, this spending has not translated into brand visibility or premium positioning. Things have improved over the last year, but I still believe Ather needs to reassess how it is spending its money in advertisements and marketing,” said an advertising expert who led multiple brand campaigns for one of the top five E2W manufacturers in 2023.

Despite being perceived as a premium brand, Ather is not currently charging or being able to charge a premium price from its customers. The branding cost therefore only adds to the cost without the ‘premium share’ of revenue. Ather certainly needs to improve its positioning in this regard, he added.

Experts believe that due to its procurement-led model, and the fact that it cannot match Ola’s capital investment in R&D, Ather is compelled to go for the premium category. The company is sacrificing volume for margins. 

Why Valuation Will Be Critical 

However, given the market sentiment for EV investments and Ather’s strong performance in terms of product value, experts believe Ather Energy’s IPO will be oversubscribed. However, like Ola Electric, it may witness a decline thereafter because Ather’s path to profitability is also not clear.

Unlistedzone’s Paliwal believes Ather Energy has made a compelling case for itself for investors thanks to the customer feedback on quality, Ather’s long-term strategy when it comes to the manufacturing platform, and its focus on the premium market, where Ola needs to prove itself. 

These are good indicators for Ather Energy since they signal value to potential shareholders. 

Plus, with Ola Electric’s successful listing providing a reference point to investors, Ather could benefit from the growing investor interest in the Indian EV sector, which is expected to grow at a robust 40-44% CAGR over the next five years, according to Paliwal.

That bullishness is tempered with the caution that the pricing and valuation will be a critical aspect for Ather’s IPO. As seen in the case of Ola Electric, the market cap is now hovering around INR 40,000 Cr, much lower than the listing valuation. Has Ather done enough to justify the $2.5 Bn valuation that it is said to be seeking in the IPO?

Cofounder and CEO Tarun Mehta has repeatedly emphasised that Ather Energy is undervalued in the private valuation landscape. How much merit does this claim hold? Ola Electric slashed its valuation by over 35% for its IPO to succeed and it’s still struggling to meet that valuation. 

Ather Energy does not have the sales momentum of Ola Electric nor does it have the vertical integration, so does the company need to adopt a more cautious approach?

“Given Ather’s declining revenue in FY24 due to the reduction in subsidies and intense competition in the EV space, a valuation closer to $2 Bn may be more appropriate, providing a buffer against Ola Electric,” Unlistedzone’s Paliwal responded

So while Ather’s premium positioning and long-term strategic bet can attract investors, a more conservative valuation is perhaps better to stoke investor confidence.

[Edited By Nikhil Subramaniam]

The post Ather Energy Vs Ola Electric: A Battle Of Business Models And Positioning appeared first on Inc42 Media.

The Indian startup ecosystem and public market are abuzz with anticipation of one of this year’s most awaited IPOs, Swiggy. However, as analysts and investors dive into the company’s prospects in a market otherwise dominated by its rival Zomato, they are seemingly getting cold feet. 

The reason? Well, for one, the Swiggy IPO currently raises two major concerns — a high valuation and hefty losses on the books. On top of this, the foodtech platform is now set to increase its IPO size as well. For the uninitiated, Swiggy has received the shareholders’ approval to increase the size of its fresh issue to INR 5,000 Cr from an earlier INR 3,750 Cr.

Besides, as per its DRHP, the IPO also comprises an offer for sale (OFS) component of 18.53 Cr equity shares. Together, this could increase the startup’s total IPO size to more than INR 10,000 Cr, expected to be around $1.5 Bn. 

Swiggy is also eyeing a valuation of $15 Bn, which is higher than the $7 Bn valuation at which Zomato went public. Though the initial response to Zomato’s IPO was great, the stock was under significant pressure in the next one year. 

While it is true that business-specific reasons and an overall negative market sentiment adversely impacted Zomato’s market performance, in Swiggy’s case, the concerns cannot be completely brushed off.

However, amid all the buzz and scepticism enveloping the prospect of this IPO, one factor is clear – public market investors would not like to miss the opportunity to ride on the food delivery or quick commerce growth bandwagon.

If we look back to when Zomato was listed in 2021, the Indian investors were new to the concept of food delivery and its overall potential. However, several significant developments have happened since then in the food delivery ecosystem. 

Besides, quick commerce has now entered the delivery realm to change the rules of the ecommerce game, and Swiggy’s Instamart is definitely one of the top industry players.

Despite tailwinds, Swiggy has some humongous challenges to deal with before it starts marching towards the IPO street where its competitor, Zomato, has already established its dominance with a $28 Bn market cap and much stronger fundamentals.

Swiggy Vs Zomato: An Apple To Apple Comparison

The Indian food delivery space is currently a duopoly with Zomato holding about a 55% market share and the rest being cherished by Swiggy. While quick commerce has become a major driver of their businesses in the recent past, food delivery continues to be the biggest contributor to their top lines.

However, IPO-bound Swiggy is far behind its listed rival. Swiggy’s food delivery gross order value (GOV) stood at INR 24,717 Cr in the financial year 2023-24 (FY24), while Zomato clocked INR 32,224 Cr. Zomato also saw stronger growth in FY24, with its GOV rising by 20% year-on-year (YoY), compared to Swiggy’s 15% YoY increase.

In the June quarter (Q1) of FY25, Zomato’s food delivery GOV stood at INR 9,264 Cr, while Swiggy’s stood at INR 6,808.3 Cr. In Q1, Zomato also had a higher average monthly transacting customers at 20.3 Mn users compared to Swiggy’s 14.03 Mn.

Despite the wide gap between Swiggy and Zomato, what makes Swiggy a great bet? “Swiggy will do well in the IPO considering investors have high hopes on quick commerce business,” Umesh Chandra Paliwal, cofounder and CEO of UnlistedZone said, adding that Zomato’s success today is also mainly due to the quick commerce business, Blinkit. UnlistedZone is an unlisted share trading platform. 

Besides, Brokerage Bernstein also acknowledges that quick commerce has become the dominant force in India’s ecommerce structure. 

However, Swiggy is trailing behind Zomato in this area, too.

Notably, in FY24, Swiggy posted a GOV of INR 8,068.6 Cr in quick commerce, up over 57% YoY. Meanwhile, Zomato’s Blinkit clocked INR 12,469 Cr in FY24 GOV, up 93% YoY. This was despite an equal number of dark stores at around 520 at the end of FY24.

It is imperative to mention that the two delivery giants face stiff competition from Zepto in the quick delivery space. Meanwhile, Zomato is way ahead of Swiggy in the going-out segment.

HSBC Global Research recently noted that Swiggy has slightly outperformed Zomato in average order value (AOV) in food delivery over the past year, likely due to its stronger presence in cities like Mumbai and Bengaluru. In FY24, Swiggy’s AOV for food delivery was INR 427.8, and it rose to INR 436 in Q1 FY25, compared to Zomato’s AOV of INR 420.2 and INR 425 during the same periods.

Overall, while an apple-to-apple comparison of the two businesses is necessary, Bernstein notes that “the debate on Zomato vs Swiggy is beyond comparing metrics.”

To understand the two businesses one needs to appreciate the divergent business philosophies – build vs buy, super app vs super brands, innovator vs operator, it said in a report. 

The brokerage added that both companies have had different approaches leading to different outcomes in terms of market share, growth and profitability.

“Swiggy has a super app which bundles food delivery and quick commerce. The loyalty program is common – Swiggy One. This allows a stronger frequency (4.5X) at a lower monthly transactional user (MTU) (about 12 Mn). Zomato operates at a lower frequency (3.5X) but a higher base (20 Mn MTU). Both are solving for different outcomes – Swiggy solves for superior LTV/CAC (and higher profitability). Zomato has expanded through aggressive new user acquisition,” as per Bernstein analysts.

Meanwhile, Prashanth Tapse, senior VP (research) at Mehta Equities, believes that Swiggy and Zomato will upscale their business models going ahead.

“Today, they are not just online food delivery companies. Going forward, they will be platforms connecting customers in many other businesses. If we look globally, food delivery companies like DoorDash and Uber Eats have significantly changed their business models to foray into several other segments. So, going forward, a similar thing will happen with Swiggy and Zomato. In the next three 3-5 years, they will have many other business models where the valuation is getting higher,” Tapse said.

So, Who Should Invest In Swiggy?

At a time when Swiggy is faced with a valuation problem, Paliwal sees Zomato, too, sitting on a high valuation — while other experts view it as a new normal.

To draw an analogy, Ola Electric’s IPO had a high valuation that equally made market experts raise eyebrows. Its INR 6,000 Cr public offering at a $4 Bn valuation was well-subscribed but saw a muted listing.

Meanwhile, Swiggy’s current valuation is still lower compared to Zomato, which is also a direct reflection of the latter’s outperformance in all business verticals.

On the other hand, Mehta Equities’ Tapse believes that only long-term investors should invest in the IPO of Swiggy.

“For long-term investors, both Swiggy and Zomato should be in their portfolio. However, investors should invest in these kinds of businesses treating them as startups only and not big tech companies… there can be ups and downs in these businesses in terms of profitability,” Tapse said.

In addition, the analyst anticipates Swiggy to achieve profitability in the coming months on the back of a sustainable platform fee. In all its glory, Swiggy can also emerge as a multi-bagger, despite falling behind its closest competitor Zomato, analysts believe.

“However, short-term trades will burn hands,” Tapse concluded. 

Amid debates, discussions, concerns and opportunities, Swiggy’s unlisted shares are trading at INR 485-INR 515 zone in the grey market. Two months ago, its shares were trading at INR 425 apiece.

To sum it all up, analysts see enough demand in the market for Swiggy’s IPO. However, a valuation discount will only increase the interest for its much-anticipated public offering.

[Edited By Shishir Parasher]

The post Can Swiggy Replicate Zomato’s Success On The Bourses? appeared first on Inc42 Media.

This festive season will be all about the need for speed, as ecommerce majors have now entered the paradigm of swift deliveries (same day or next day), pivoting from their earlier timeline of 4-5 days.

Making the game of deliveries insanely difficult to play will be quick-commerce players that are expected to capture the majority of the customer base seeking instant gratification. All in all, ecommerce platforms will be seen upping the ante in staying ahead of the delivery curve and ensuring that no shopper is left craving amid the festive rush.

However, this shift in ecommerce behaviour has been in the making for some time, and the trigger has been the maturity of the Indian quick delivery ecosystem, which currently drives 40% of online grocery sales.

Over the past year, ecommerce marketplaces have made significant strides in enhancing delivery speed, introducing same-day and next-day services to cater to customer demands. A vibrant example is Flipkart, which, at the start of the year, announced that it would offer same-day delivery across multiple product categories at no additional cost.

With the market at stake, Amazon followed suit, while beauty platform Nykaa and fashion site Myntra began testing same-day delivery options. Witnessing this, many D2C brands are also adapting to remain competitive.

While they may not match online marketplaces in order volume, they’re eager to offer quicker delivery options to stay competitive. A case in point is GenZ-focussed fashion startup NEWME, which recently launched 90-minute delivery for its products in select Delhi NCR areas.

Speaking with Inc42, logistics experts said that the demand for fast delivery has surged dramatically compared to last year’s festive sales. Same-day and next-day deliveries have grown 4-5X during peak periods of festive sales, now accounting for 12-15% of total ecommerce deliveries, which is a big leap from almost zero just 18 months ago.

This surge comes as ecommerce firms like Amazon, Flipkart, and Meesho are expected to register a 20% year-on-year rise in gross merchandise value, generating sales in the range of INR 1 Lakh Cr to 1.2 Lakh Cr this festive season, according to Redseer Strategy Consultants. Quick commerce is anticipated to contribute around 8% to this overall growth.

Festive Rush Paves The Way For 5X Surge In Same-Day Delivery

Speaking with Inc42, COO of Ecom Express, Vishwachetan Nadamani, said that during the festive season, the speed of deliveries naturally improves due to increased demand, with line-haul trucks operating more frequently. However, the surge in fast delivery requests is more pronounced this year.

Therefore, the executive added that the company has rolled out same-day delivery and next-day deliveries in India’s top 10 metro cities, with the infrastructure fully established to support these services.

Meanwhile, Shadowfax’s cofounder and chief business officer, Praharsh Chandra, said that the company is well prepared to tackle the same or next-day delivery rush.

“We started focussing on fast delivery with both brands and marketplaces about a year and a half ago. Back then, the industry had 0% same-day delivery, but now 10-14% of all intra-city orders are delivered the same day,” Chandra said.

Chandra noted that this trend is gaining momentum as we are nearing the peak sales season. “In fact, our same-day delivery channel saw five times growth in just one day, on the second day of the sales. We experienced some very high peaks,” he said.

Chandra sees a clear shift in consumer behaviour here, with more and more customers now wanting instant gratification. “Even for nearby zones, like orders from Bangalore to Mysore, which used to take two days, people now expect next-day deliveries,” he said.

The sentiment is being echoed across the industry. For instance, Zippee’s founder & CEO, Madhav Kasturia, sees registering 6-8X growth as all its partner brands continue to scale during the festive season.

Fast Delivery Fever Grips All Categories

Fast delivery demand has risen across categories this festive season. Electronics, beauty and personal care, fashion, and home goods have seen strong interest, with mobile phones being the most popular choice. Interestingly, on the first day of sales, Shadowfax delivered 15,000 iPhones.

However, the demand landscape is not solely dominated by electronics. Categories such as beauty and personal care, fashion, and home goods are also seeing high demand, with brands like Decathlon experiencing increased sales of sports goods, showing that consumers are diversifying their purchases.

“There’s demand in various categories. However, it’s crucial to focus on where the concentration of that demand is and whether brands have optimised their supply chains with warehouses in these top metros,” the Ecom Express COO said.

So far, demand for fast delivery is highest in metro cities like Bangalore, Mumbai, and Delhi. However, this trend is not limited to urban areas. Brands are now stocking inventory in Tier II and Tier III cities like Patna, Jaipur, and Guwahati to offer faster delivery options in these regions as well.

Navigating The Complexities Of Fast Delivery

While fast delivery services are in high demand, they come with operational challenges. One of the biggest hurdles is optimising inventory placement. Quick deliveries not only require faster transportation but also strategic positioning of inventory closer to customers.

This requires maintaining fewer pin codes per dark store, which complicates logistics, Zippee’s Kasturia said, adding that the logistics startup was addressing it by establishing localised inventory hubs, enabling quicker access and more streamlined delivery routes.

Additionally, the rising demand for same-day deliveries translates to an increased need for delivery riders, resulting in escalating costs month after month. During peak seasons, the volume can increase by 4-5X, necessitating supplementary capacity through hyperlocal delivery fleets.

“Historically, logistics have a rigid model where shipments from multiple clients are picked up, sent to a central sortation centre, and then dispatched to last-mile hubs. That entire process used to take around 16 hours. But for same-day delivery, we can’t afford that kind of delay. So, we have restructured the supply chain to bypass certain nodes when possible. This is both a technology and operational shift,” Shadowfax’s Chandra said.

While same and next-day deliveries typically carry a premium — around 25% higher than express delivery — logistics startups are actively working to optimise operational costs. By increasing order volumes and refining their processes, many have reduced the cost difference to approximately 5-10% compared to regular delivery.

Now, as the industry stands at the precipice of super-fast deliveries, building an efficient supply chain will be the most critical element for the long-term sustainability of India’s quick delivery realm.

[Edited By Shishir Parasher]

The post Festive Rush Sparks Speed War: Quick Commerce & Ecommerce Battle For Fastest Deliveries 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. 

Despite the 10 listings so far this year, 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:

• Swiggy received approval from its shareholders to increase the size of the fresh issue in its IPO to INR 5,000 Cr from INR 3,750 Cr earlier

• DevX has filed its DRHP with market regulator SEBI for an IPO, which will consist solely of a fresh issue of 2.47 Cr equity shares

• CarDekho is in advanced talks to appoint merchant bankers to helm its $500 Mn IPO next year at a likely valuation of $2 Bn to $2.5 Bn.

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 Energy’s board passed a resolution to convert the startup into a public company from a private entity previously. A couple of months later in September, the electric two-wheeler maker filed its draft red herring prospectus with SEBI for its IPO. 

The proposed IPO will comprise a fresh issuance of shares worth INR 3,100 Cr and an offer-for-sale (OFS) component of up to 2.2 Cr equity shares. 

It was reported earlier that the unicorn is eyeing a valuation of around $2.5 Bn for its IPO.

The proceeds from the IPO will be utilised for kickstarting the construction of its upcoming manufacturing facility in Maharashtra, R&D, marketing initiatives, and other general corporate purposes.

Ather Energy clocked a net loss of INR 1,059.7 Cr in FY24, up 22.5% from INR 864 Cr in the previous year. Operating revenue rose 0.4% YoY to INR 1,789.10 Cr during the year under review from INR 1,783 Cr in FY23.

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.

boAt

Founded in 2016 by Aman Gupta and Sameer Mehta, boAt is a D2C audio tech and wearables startup that sells products such as headphones, smart watches and speakers. 

Cofounder and chief marketing officer Aman Gupta, in September 2024, said that the startup plans to list on Indian stock exchanges in 2025. This is more or less in line with what cofounder and CEO Sameer Mehta said in June 2024. 

At the time, Mehta said that the startup plans to become net profitable once again in FY25 before moving ahead with IPO plans, adding that boAt would be looking to raise INR 2,000 Cr via the IPO in the next 12-18 months. 

This is not the first time that boAt has lined up IPO plans. It filed its DRHP with SEBI in 2022 for an INR 2,000 Cr public issue. However, the startup later shelved the plans amid adverse macroeconomic conditions. 

boAt slipped into the red for the first time in FY23 and clocked a net loss of INR 129.4 Cr as against a net profit of INR 68.7 Cr in FY22. Operating revenue rose 18% year-on-year (YoY) to INR 3,376.7 Cr in FY23.

CarDekho

Founded in 2008 by siblings Amit Jain and Anurag Jain, CarDekho operates an online car listing platform, insurance platform InsuranceDekho, and lending platform Rupyy. 

CarDekho has raised more than $692 Mn in funding till date and competes with the likes of CarTrade, Spinny and Cars24. It was last valued at $1.2 Bn in 2021, when it secured $250 Mn in a mix of primary and secondary funding. 

The auto marketplace is said to be in advanced talks to appoint merchant bankers to helm its IPO in 2025. The company plans to file its DRHP in March 2025 and is looking to raise nearly $500 Mn at a valuation of $2 Bn to $2.5 Bn.

Its early backers, including Peak XV, Google Capital, and Hillhouse Capital, are expected to offload a part of their stakes via offer for sale (OFS). The proceeds from the IPO will go towards funding CarDekho’s geographical and category expansion as well as for future acquisitions. 

Notably, this is not the first time that CarDekho is planning to list on the bourses. In 2021, it was mulling a listing on the bourses but its IPO plans failed to take off then. 

As per MCA filings, CarDekho Group reported an operating revenue of INR 2,331 Cr in FY23 as against INR 1,600 Cr in the previous fiscal. Meanwhile, loss rose slightly to INR 562 Cr during the period under review from INR 535 Cr in FY22.

DevX

Founded in 2017 by Parth Shah, Rushit Shah and Umesh Uttamchandani, DevX offers coworking space solutions, managed office spaces, among others.

Backed by Kalpesh Harakhchand Gala, Unmaj Corporation, and Bidiwala Family Office, the coworking startup last raised $7 Mn in a mix of debt and equity in February this year. 

DevX currently operates over 25 coworking spaces in more than 10 Indian cities, including Ahmedabad, Vadodara, Bengaluru, Delhi, Kochi, Surat, among others. 

The coworking startup filed its DRHP with SEBI in September 2024 for a listing on the NSE and the BSE. DevX’s IPO will consist solely of a fresh issue of 2.47 Cr equity shares and there will be no OFS component.

The fresh proceeds will be utilised for the repayment and prepayment of non-convertible debentures (NCDs), expanding its footprint and for general corporate purposes. 

As per the DRHP, DevX reported a profit after tax (PAT) of INR 43.7 Lakh in FY24 as against a loss of INR 12.8 Cr in FY23. Operating revenue stood at INR 108.08 Cr compared to INR 69.91 Cr in FY23. 

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, it 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 by November 2024. The company is eyeing a $500 Mn to $600 Mn IPO on Indian bourses at a valuation of around $3.5 Bn.

Fractal’s public issue will 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. The market regulator issued the observation letter to the Delhi NCR-based unicorn on September 19. 

MobiKwik managed to turn profitable in FY24. It posted a profit of INR 14.1 Cr in the fiscal year ended March 2024 as against a loss of INR 83.19 Cr in FY23. Revenue from operations zoomed 62% YoY to INR 875 Cr in FY24.

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. 

Physics Wallah

A brainchild of Alakh Pandey and Prateek Maheshwari, Physics Wallah (PW) was founded in 2020. The startup operates online and offline coaching centres for K-12 students and test preparation platforms for various exams. It also has a skilling arm and a study abroad vertical. 

Kicking off its IPO plans just days after raising a mega $210 Mn funding round in September, PW is said to be scouting investment bankers for its initial public offering (IPO) in 2025. The edtech unicorn is said to be eyeing a valuation of over $2.8 Bn, the number at which it raised its last funding. 

If the plan fructifies, PW will become India’s first edtech startup to list on the stock exchanges. 

PW’s net profit declined over 90% to INR 8.9 Cr in FY23 from INR 98.2 Cr in the previous fiscal year due to a sharp rise in its expenses. However, operating revenue soared 234% to INR 779.3 Cr in FY23 from INR 233 Cr in FY22.

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.

Initially, 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. In September, the company filed its updated IPO papers with the market regulator.

As per the updated DRHP, Swiggy’s public issue will comprise a fresh issuance of shares worth INR 3,750 Cr and an OFS component of 18.57 Cr equity shares.

In late September, the company received shareholders’ nod to increase the size of its fresh issue by 33% to INR 5,000 Cr. Swiggy is reportedly targeting a valuation of $15 Bn valuation for its IPO.

Swiggy 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.

In Q1 FY25, Swiggy’s consolidated net loss rose over 8% YoY to INR 611 Cr while revenue from operations zoomed 35% YoY to INR 3,222.2 Cr during the quarter under review.

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.

Zepto

Founded in 2021 by Aadit Palicha and Kaivalya Vohra, Zepto is a quick commerce startup that claims to offer 10-minute deliveries of groceries and other items. 

In September 2024, it was reported that the quick commerce major commenced active discussions with domestic and global merchant bankers, including Morgan Stanley and Goldman Sachs, for a potential IPO by August 2025. 

The startup plans to raise $450 Mn via fresh issuance of shares and an undisclosed amount through the offer for sale (OFS) component.

Zepto’s net loss ballooned 3.35X YoY to INR 1,272.4 Cr in FY23 from INR 390.3 Cr in the previous fiscal year. Meanwhile, revenue from operations soared 14.3X to INR 2,024.3 Cr in the fiscal year ended March 2023 from INR 140.7 Cr in FY22. 

Last Updated: October 08, 8:00 AM IST

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

It was December of 2023 and Prime Minister (PM) Narendra Modi had just taken to the stage to address the gathering of people at the Kashi Tamil Sangamam in Uttar Pradesh’s Varanasi. Just as PM Modi commenced his address in Hindi, the attendees plugged in their headphones to hear the translated version of his speech in real time.

At work was the Centre’s ambitious AI platform, Bhashini, a language translation platform that aims to make digital services and the internet more accessible in Indian languages. However, much has happened in the 10 months since then.

Since then, the government has taken a series of steps to bolster its AI offerings. Most recently, the Centre announced the BharatGen project, touted as the world’s first government-funded multimodal large language model (LLM) project.

The Ministry of Science said that it will undertake the development of the multimodal LLM project, which will be focussed on creating “efficient and inclusive AIs” in Indian languages.

Once completed, BharatGen will be able to generate high-quality text and “multimodal content” in various Indian languages. 

For the uninitiated, a multimodal LLM can process multiple types of data, or modalities, such as text, images, audio, video, and 3D environments. It can also generate content in all these formats.

As per the government, there will be  four key “distinguishing features” of BharatGen: 

• Multilingual and multimodal nature of foundation models
• Indigenously built datasets, which will be leveraged to train the LLMs
• Open-source architecture
• Development of an ecosystem of GenAI research in India

The Making Of BharatGen

Slated to be completed in a span of two years, BharatGen will cater to both text and speech to ensure coverage across India’s “diverse linguistic landscape”. 

“Looking ahead, BharatGen’s roadmap outlines key milestones up to July 2026. These include extensive AI model development, experimentation, and the establishment of AI benchmarks tailored to India’s needs,” the government said in a statement.

To be undertaken under DST’s National Mission on Interdisciplinary Cyber-Physical Systems (NM-ICPS), the development of BharatGen will be spearheaded by IIT Bombay. Besides, the execution of the project will also see participation from other academic institutes such as IIIT Hyderabad, IIT Mandi, IIT Kanpur, IIT Hyderabad, IIM Indore, and IIT Madras.

The multimodal LLM will be trained on multilingual datasets to “deeply capture” the nuances of Indian languages. 

In order to address this paucity of data sets, necessary to train AI models, BharatGen will also look to develop processes for collecting and curating India-centric data. This data will be accumulated in a way that the country’s diverse languages, dialects, and cultural contexts are accurately represented. 

Notably, one of the core features of BharatGen will be its focus on data-efficient learning, particularly for Indian languages with limited digital presence. The government will partner with multiple academic institutions to develop AI models that are effective with minimal data. 

“This emphasis on data sovereignty strengthens India’s control over its digital resources and narrative,” the statement added.

As of now, LLMs are predominantly trained in the English language as there is a plethora of data online with regards to the language. However, there have been attempts by the likes of Google to roll out their AI chatbots in multiple Indian languages on the back of the treasure trove of search-related data.

However, smaller players do not have access to such resources. And it is this chasm that the government wants to fill with its open-architecture LLM, which can be used by startups and academicians to build products on top of this tech stack and linguistic datasets. 

“BharatGen will deliver generative AI models and their applications as a public good by prioritising India’s socio-cultural and linguistic diversity. It strives to address India’s broader needs such as social equity, cultural preservation, and linguistic diversity, while ensuring that GenAI reaches all segments of society,” as per the government. 

Secretary in the department of science and technology (DST), Professor Abhay Karandikar, said that BharatGen will be leveraged to address “national priorities” such as cultural preservation and inclusive technology development, beyond merely making AI accessible to all and for industrial and commercial purposes.

Aligned with the government’s ‘Atmanirbhar Bharat’ vision, one of the stated goals of the project is to reduce “reliance on foreign technologies” and strengthen the domestic AI ecosystem for startups, industries, and government agencies. 

The Centre also believes that BharatGen will democratise access to AI through foundational models, adding that the tech stack will allow innovators, researchers, and startups to build AI applications quickly and affordably. 

The project will also look to foster a vibrant AI research community through training programmes, hackathons, and collaborations with global experts.

The proposed project is part of the Indian government’s overarching push for digital public infrastructure (DPI). Leveraging AI could give a further impetus to India’s existing digital public goods rails and pave the way for offering cost-effective solutions not just in India, but globally. 

The BharatGen project also echoes India’s focus on fostering the adoption of AI technologies. Earlier this year, the union cabinet approved the IndiaAI Mission with an allocation of INR 10,372 Cr over the course of next five years. The outlay will be utilised to facilitate funding for emerging AI startups and spur innovation in the sector.

In September, the government also invited applications from startups and researchers to build and deploy “impactful” AI solutions in key critical areas. Amid all these, the Centre has already constituted an advisory group to formulate a framework to regulate AI. 

At the heart of all this is the Indian AI landscape, which already hosts more than 100 startups that have raised more than $600 Mn between 2019 and H1 2024. As per Inc42 data, the Indian GenAI ecosystem is projected to be a $17 Bn market opportunity by 2030 on the back of the growing adoption of the emerging technology. 

The post BharatGen: Decoding India’s Bid To Build Maiden State-Funded Multimodal LLM appeared first on Inc42 Media.

The funding gold rush of 2021-2022 gave a major boost to several sectors but the Indian edtech space turned out to be the prime beneficiary when the pandemic brought the world to its knees. 

The forced closure of schools and colleges paved the way for digital learning, and techies started to form a beeline to cater to the growing demand for online education. Not to mention, the growing demand for skill development among the workforce working in tech and tech-adjacent industries also fuelled the edtech growth story in India.

This propelled the Indian edtech space to become the third most-funded sector in 2021, securing $4.7 Bn in investments — only trailing behind ecommerce ($10.7 Bn) and fintech ($8 Bn). In fact, edtech raised $2.4 Bn in 2022 alone. Such was the scale that these two years accounted for 64% of the total $11 Bn the sector raised between 2014 and 2024.

But then, the reality struck when the world opened to business as usual, presenting challenges that the industry sleuths hadn’t anticipated. As physical classrooms reopened, the demand for online learning plateaued, exposing the cracks in edtech’s business models and their long-term sustainability. The results were immediate and stark. The edtech startup funding dropped 88% year-on-year to $283 Mn in 2023.

With this massive drop in funding many skeletons started to tumble out of the closets. For one, a lot of startups started to struggle with their incomplete playbooks amid expiring runways due to investors tightening their purse strings. This led to layoffs, shutdowns and whatnot.

The troubles compounded for the sector when BYJU’S, the country’s biggest edtech, started to stagger from being the poster child of India’s edtech boom to getting embroiled in back-to-back controversies. And we know how the fates of the once-edtech decacorn have unravelled since then, especially in 2024.

Well, to be true, the Indian edtech space is not doing too well, even as the first nine months of the ongoing year have done a little better on the funding front compared to the year-ago period.

As per Inc42’s quarterly funding report (Q3, 2024), startups in the space raised $278 Mn in the first nine months of 2024, up a mere 3% from the $269 Mn raised in the corresponding period in 2023. 

However, on a year-on-year basis, edtech funding in the third quarter of 2024 was up 357% to $224 Mn from a mere $49 Mn in Q3 2023. 

However, what needs to be acknowledged is that PhysicsWallah alone netted $210 Mn of the total edtech funding raised in the three quarters of 2024.

Sans PhysicsWallah, the Indian edtech funding in the first nine months of the year seems to be dangling at around $68 Mn, enduring a decline of nearly 75% YoY. Similarly, the edtech funding during Q3 of 2024 stood at just $14 Mn, without counting PhysicsWallah.

Notably, as per Inc42’s latest Indian Tech Startup Funding Report Q3 2024, PhysicsWallah was the second biggest mega deal after Zepto’s $340 Mn in this year’s September quarter. 

Despite this, the Indian edtech sector couldn’t make it to the list of the top 10 most funded startup sectors during the recently-concluded quarter.   

Is The Indian Edtech Sector Headed For Revival?

Despite the dilapidated state of affairs, experts hope that the sector may see a funding revival, especially when we have startups like PhysicsWallah (PW) to support the Indian edtech growth story. Notably, the edtech unicorn raised $210 Mn (approximately INR 1,756.7 Cr) in its Series B funding led by Hornbill Capital at a post-money valuation of $2.8 Bn.

“The edtech industry has learned valuable lessons from its rapid rise and fall after the pandemic. While the initial boom showed potential, many companies struggled to scale effectively, highlighting the need for a hybrid approach. PhysicsWallah is a standout example, managing to break through the clutter. The future of education is not just in online models, but in combining digital and offline experiences,” Anup Jain, founding partner of India Early Stage Fund said.

He also noted that the K-12 segment has become crowded, with numerous edtech players competing for the same space. This is because K-12 is the highest-funded subsector in edtech. As per Inc42’s annual “The State Of Indian Startup Ecosystem Report“, the K-12 segment received $5.8 Bn between 2014 and 2024, accounting for 54.5% of total edtech funding. 

Meanwhile, Jain sees new opportunities for the segment with the roll out of the National Education Policy (NEP).   

Further, there is a growing shift towards design thinking and skill-based learning, which offers startups a chance to thrive by focussing on employability and career development. Per industry experts, the future of education will focus on preparing students for real-world challenges, particularly in the age of AI and automation.

“Funding revival will likely start from seed and pre-seed rounds. Beyond one or two exceptions, there hasn’t been much significant interest in late-stage investments. For edtech companies, the challenge is that business models and unit economics can shift overnight. That’s why we anticipate more seed and Series A activity in the near future, as products driven by AI and machine learning show strong traction,” Rohit Krishna, partner at WEH Ventures, said.

The Future Of Edtech In India

Anticipating revival in seed and pre-seed edtech rounds, WEH Ventures’ Krishna sees new technologies, like generative AI, as key drivers for the next big edtech boom. 

He also envisions such technologies driving significant improvements in product quality, all while reducing costs. Notably, the industry is witnessing a wave of new companies capitalising on emerging technologies, particularly in the early stages. 

Unlike the edtech gold rush of 2021-2022, startups founded more recently have started to look more lucrative to investors. This is because these startups, helped by emerging technologies, are endeavouring to create more interactive and engaging content.

Additionally, generative AI is being employed to automate administrative tasks within edtech platforms, streamlining operations so educators can focus more on teaching.

Furthermore, as conversational AI and chatbots gain traction in education, many companies will be seen using them to provide personalised and immersive learning experiences. Additionally, AI-assisted grading has improved the speed of assessments, allowing users to receive graded assignments promptly and benefit from instant feedback.

Hence, investors predict a revival in early-stage funding for edtech over the next year, although they will remain cautious before committing to large investments.

[Edited By Shishir Parasher]

The post Can Edtech In India Find Its Footing Again? appeared first on Inc42 Media.

One often gets asked: where are the profitable startups? Three recent examples come to mind, all coincidentally in the same segment and from Bengaluru. We are talking about Zerodha, Groww and Dhan.

In fact, the ‘success rate’ in investment tech for profitability is rather high compared to other segments in the broader fintech sector — even Upstox reached profitability in FY23. And this is perhaps why many fear that SEBI’s changes this year might disrupt this profitability in some measure.

This past week, Zerodha revealed that SEBI’s new derivatives framework will definitely have an impact on futures and options (F&O) volumes. For SEBI, these rules are critical to protect investors from becoming too enthralled by the F&O frenzy, but will the changes set Zerodha, Groww, Dhan, Angel One and other discount brokers back in terms of profitability as many fear?

Let’s try to answer that after a look at these top stories from our newsroom this week:

• End Of BharatPe-Ashneer Grover Saga? After two years of bad blood, mudslinging and court battles, BharatPe and Ashneer Grover have come to a settlement, but its timing has raised quite a few questions. Was it a settlement or a compromise?
• The Valuation Game: Prominent investors are now saying that the age of high valuations and unicorns is over for the Indian startup ecosystem and now the focus is shifting to value over valuation. What explains this shift?
• The Festive Season Battle: Quick commerce has the edge when it comes to online grocery, but are the likes of Blinkit, Zepto and others close to disrupting Amazon India, Flipkart and Meesho’s festive season expectations? Here’s a breakdown

Regulatory Hit For Zerodha, Groww & Co

Since July this year, discount brokers and investment tech platforms have had quite a few things to worry about, with more major changes on the way

It started when SEBI decided to bar market infrastructure institutions from offering discounts based on trading volumes of members, effectively hitting the business model of discount broking platforms such as Zerodha, Groww, Upstox, among others. The move was largely seen as a way to curb the F&O trading frenzy.

The second setback came via the Union Budget, which hiked capital gains tax and securities transaction tax. Common sense dictates that retail investors are more likely to think twice about how much they now want to invest.

The most recent disruption has come from SEBI’s new derivatives framework, which will come into effect from November. These changes include weekly expiry of only one index derivative per exchange, upfront collection of option premiums from buyers, increasing the minimum contract size for index derivatives to INR 15 Lakh, among others.

Together, these changes have made it slightly more difficult for platforms to predict investor and trader activity, made it more complicated for them to bring in new users and have forced them to look at other revenue streams to make up for any potential dip in profits.

Zerodha, Groww and other investment tech platforms that have scaled up massively on the back of the F&O boom of the past 18 months will feel the heat.

Into The F&O Frenzy

As per SEBI data as of May 2024, equity derivatives and F&O volumes on BSE and NSE saw a whopping 71% YoY growth to INR 9,504 Lakh Cr.

Further, according to data by global trade monitor FIA, more than 36.8 Bn equity index options were traded on these two exchanges between April and June 2024. This is 100% YoY growth and represents two-thirds of all F&O trades on every exchange around the world. In other words, India is quite mad about F&O.

This growth has coincided with investors flocking to discount broking platforms. Groww now boasts over 11 Mn active investors as of May 2024, with Zerodha trailing at 7.8 Mn as of August 2024. However, these leading platforms see the impact from SEBI’s new rules differently.

For instance, in the past week, Zerodha CEO Kamath said that the platform will not change its zero brokerage model in structure even as most industry observers expected the opposite. And then a few days later, Zerodha put on a brave face in the light of yet another potential complication with SEBI’s new derivatives framework, saying it would affect 30% of its futures and options (F&O) orders.

To put this in context, Zerodha reported INR 8,320 Cr or about $1 Bn in revenue for FY24. This is undoubtedly a major milestone for the company, but now other industry observers believe revenue for the current year (FY25) will drop by 30%-50% for Zerodha.

Groww on the other hand has distanced itself from F&O as a category. In the past, the company has said that its growth and revenue generation is not heavily dependent on F&O trading. In a recent interaction at a media conference, cofounder and CEO Lalit Keshre also said that Groww has a different outlook on investment tech.

“Groww is not an F&O company, but a financial services company. Hardly 15% of our customers do trading. Trading is a zero-sum game. Investing is a win-win game. We encourage responsible trading,” Keshre was quoted as saying.

Kamath also claimed that the real impact of SEBI’s changes in the F&O framework will only become clear after November this year when the rules come into effect. And that could be a big blow to the profitability streak for Groww, Zerodha and others.

Speaking of profits, as we reported this week, Groww is likely to see a 4X YoY jump in its net profit to INR 297.8 Cr in FY24. Among startups, Groww is the closest to Zerodha, which had a sizable lead over the former with INR 4,700 Cr ($562 Mn) in profit for FY24. This is despite Groww having significantly more active investors.

As for the other profitable players, Angel One, the discount broking arm of full service firm Angel Broking, reported a net profit of INR 1,126 Cr, while Dhan finished FY24 with a healthy profit of INR 177 Cr after just about three years of operations.

Dhan expects the gross revenue impact from SEBI’s changes to be around the 25%-30% mark, according to a report by The Arc, which would certainly eat into those profits.

Diversification Is The Game

It’s no surprise then that most players are looking to diversify their revenue streams. The most clear example is of Groww, which has seen its lending business grow steadily in the past year.

The Bengaluru-based unicorn has also added UPI payments and an asset management company to make the most of its lead in terms of active investors.

Groww’s NBFC arm Groww Creditserv’s loan book stood at INR 965.44 Cr as on June 30, 2024, growing 32% from INR 731.1 Cr in the previous quarter. Personal loans accounted for 98% of the total loan book, and consumer durable loans accounted for the rest. However, Groww Creditserv is not yet a profitable entity. It posted a loss of INR 24.1 Cr in FY24, almost 10X higher than its loss in FY23.

Some such as Upstox are leveraging scale to launch insurance distribution, but this is not exactly a high margin play.

Then there’s margin trade funding or MTF – where brokers lend money to traders to earn interest income while keeping the financed shares as collateral. This is usually an area where banks have had a strong presence. However, Groww has made an entry into this space and Zerodha is also contemplating a launch, as per sources.

Among discount brokers, Mirae Asset-backed Mstock has cracked the MTF formula to some extent and has built a loan book of around INR 2,000 Cr, as per ET, while Angel One also has a significant interest in MTF.

Industry insiders believe that MTF can be a lucrative vertical for discount brokers because the primary target audience is high-net-worth individuals, which naturally have larger propensity to invest. It could be a way for Groww, Zerodha and others to nullify the revenue impact from SEBI’s strict new framework for F&O.

Despite the upside, making the most of these new verticals will be a distraction for Zerodha, Groww, and others, who have become used to consistent revenue generation and profitability.

But it’s also an opportunity for Groww to turn the tables on Zerodha in terms of revenue, or for other players to emerge as strong rivals. As always, India’s regulators have added a fresh new twist to the fintech game.

Sunday Roundup: Tech Stocks, Startup Funding & More

• After a drought of almost two years, the Indian startup ecosystem is showing signs of recovery, with startup funding growing by 2X YoY to $3.4 Bn in Q3 2024
• VC giant Peak XV Partners has pared the size of its $2.85 Bn fund by 16% or $465 Mn, and restructured the carried interest and management fees for its LPs across various stages
• Ahmedabad-based coworking space provider DevX is looking to tap the IPO boom and has filed its DRHP for a fresh-issue-only public offering

• Bullish about its IPO, Swiggy will now look to raise a total of $1.4 Bn through the public issue, up from previously planned $1.25 Bn, after getting the shareholder nod for the increase
• Ola Electric slipped below the INR 100 mark in the week, as concerns of profitability and drop in EV market share linger on the stock

The post Zerodha, Groww’s Revenue Conundrum appeared first on Inc42 Media.

A total of 38 founders of 21 Indian new-age tech companies took home INR 179.3 Cr in cumulative annual salary in the financial year 2023-24 (FY24)!

However, the average founder salary plummeted 33% to INR 4.21 Cr in FY24 from INR 7.1 Cr in the previous fiscal year.

This comes at a time when the startup ecosystem continues to be in the grip of the funding winter, which began in 2022. As investors tightened the purse strings following the start of the Russia-Ukraine war in 2022, there was mayhem in the Indian startup ecosystem, which was riding high on the bull run of 2020 and 2021.

Consider this: The total funding raised by Indian startups fell to $25 Bn in 2022 from $42 Bn a year ago. This number further plummeted to $10 Bn in 2023 and there was no improvement in the first half of 2024 as well.

This acute funding crunch has meant that Indian startups have had to take drastic measures to cut their costs and extend their runways. Following the onset of the funding winter, startups reduced their advertising and marketing budgets to cut losses or turn profitable in FY23. They also resorted to massive restructuring exercises which resulted in thousands of employees losing their jobs. Some of them even shut down operations.

Amid all these, Inc42 launched ‘Founder Salaries Tracker FY23’ to keep you updated with the salaries of the founders at a time when employees were losing jobs and taking pay cuts.

Continuing that, we are bringing to you the tracker for FY24, which was not much different from FY23. Consolidation remained the main theme in FY24 as well, as startups looked to improve their bottom lines even if they had to compromise on growth in their top lines.

As per the data collated by Inc42, the 17 aforementioned startups posted a cumulative operating revenue of INR 47,309 Cr in FY24. Of these, five startups reported a combined loss of INR 3,899 Cr, whereas the remaining reported a total profit of INR 2,209 Cr. 

For a deep dive into the financial numbers, take a look at Inc42’s ‘FY24 Financials Tracker’.

Now, let’s delve deeper into the salaries that the startup founders earned in the last financial year. The tracker will keep you informed about the remuneration earned by the founders in FY24, the percentage increase/ decrease in their salaries compared to FY23, and more.

Editor’s Note: This list is not a ranking of any kind. The companies have been placed alphabetically. This is a running list and will be updated periodically.

Founder Remuneration Tracker FY24

Companies are placed in alphabetical order | Data has been sourced from MCA filings, annual reports, and DRHPs |

*Note: Includes Share-based payments, reimbursements, bonus, variable pay, among others

Supam Maheshwari | FirstCry

Supam Maheshwari, the founder of recently listed ecommerce marketplace FirstCry, retained the top spot in terms of annual remuneration in FY24 as well. As per the startup’s red herring prospectus, the founder took home INR 103.8 Cr as remuneration in FY24, which was almost 50% lower than INR 200.7 Cr a year ago.

However, it needs to be highlighted that this amount includes short-term employment benefits, share based payments accrual, and excludes provisions for gratuity, compensated absences and other long term employment benefits which have been actuarially determined and the amounts pertaining to the key managerial personnel (KMP) are not material.

FirstCry reported an operating revenue of INR 6,480 Cr, with a loss of INR 321.5 Cr in FY24. 

Vijay Shekhar Sharma | Paytm

Vijay Shekhar Sharma, the managing director of fintech giant Paytm, was at the second spot with an annual remuneration of INR 4.4 Cr during the year under review. Sharma, who is one of the most active angel investors in the county, saw a 10% hike in his annual remuneration in FY24 compared to INR 4 Cr in the previous fiscal year.

Varun Alagh | Mamaearth

Varun Alagh, the CEO of publicly listed beauty care startup Mamaearth, took home INR 3.97 Cr in annual remuneration in the recently concluded financial year. He received a hefty increment of 166.4% compared to INR 1.49 Cr he took home in the previous year. 

In comparison, his wife Ghazal Alagh, who is the cofounder of the startup, took home INR 1.79 Cr in remuneration in FY24, a jump of 80.8% higher than INR 99 Lakh in the previous fiscal year. 

The Delhi NCR-based startup reported an operating revenue of INR 1,919.9 Cr during the year under review with a profit of INR 110.5 Cr. 

Edited By Vinaykumar Rai

Last Updated On October 4, 6:35 PM IST

The post Founder Salaries Tracker FY24: How Much Did Startup Founders Earn? appeared first on Inc42 Media.

Fuelled by the Indian government’s seriousness towards increasing local electronic equipment manufacturing and reducing the country’s reliance on imports, semiconductors talks have taken centre stage, and the nation appears to be hell-bent on solidifying its position as a global semiconductor hub.

The Centre’s policy push to enable global giants to establish semicon fabs in the country and its intention to create a highly efficient semiconductor value chain has only made this realm more attractive to venture capitalists (VCs). 

In line with this thesis, a recent Inc42 survey of 50 VC and debt firms (part of the Inc42’s latest ‘Indian Tech Startup Funding Report, Q3 2024’) revealed that 92% of investors are optimistic about India’s semiconductor ambitions and are willing to invest.

Besides, as many as 63% of these investors said they are willing to fund intellectual property (IP)-focussed chip startups, while 58% are willing to fund semiconductor design services. 

Meanwhile, since the IP-focussed chip firm Nvidia surpassed the world’s top chip manufacturer Taiwan Semiconductor Manufacturing Company (TSMC) in market cap, the early investors are expecting better long-term returns in the semicon IP space.

It is pertinent to note that in recent months, as the semiconductor ecosystem started seeing funding flow from external investors, a majority of the funds have gone into fabless IP developers or system-on-chip (SoC) startups that are combining hardware and software (IP) to create application-specific systems.

For instance, in 2023, InCore was backed by Peak XV Partners and SoC developer Mindgrove received funding from Peak XV and Speciale Invest. Recently, SoC solutions provider BigEndian Semiconductors raised $3 Mn in its seed funding round led by Vertex Ventures SEA & India. 

On the other hand, Integrated Circuits (ICs) design startup FermionIC Design also raised $6 Mn recently from Lucky Investment Managers’ Ashish Kacholia and his associates.

Also, this pool size is expanding from a handful of investors, including Peak XV, Speciale Invest, Exfinity Ventures, Celesta Capital, Whiteboard Capital, and IndiaQuotient, who have bet big on semiconductor companies till 2023.

So, What Do VCs Have To Say?

Moving on, about 21% of the investors who participated in the survey are interested in investing in semiconductor fabs, even though India’s fabrication story has yet to take off in a big way. Also, a few multinational companies have just started establishing their manufacturing plants in the country.

Besides, chip manufacturing is a highly cost-intensive business, therefore this is not the area VCs are skewed towards. Rather, top semiconductor investors believe that the fab manufacturers need support from the government. 

However, as the fabrication industry becomes more established and India begins to cater to the global market with domestically manufactured chips, it might also become attractive for the VCs in the future.

Speaking with Inc42, Peak XV’s managing director Mohit Bhatnagar said, “It is a foregone conclusion that semiconductors are strategically important for India and therefore, it is inevitable that we will build all aspects of the semiconductor value chain here. We are starting with the design and, over time, it will get into the larger capex-intensive play. But it is hard to argue that 10 years from now, we will not have much more advanced semiconductor capabilities in the country.”

Bhatnagar said that the reason behind this development is partly because 20% of the world’s semiconductor design workforce, people who worked at Intel, AMD, and other top global semiconductor firms, is in India today.

Arjun Rao of Speciale Invest often highlights that the country should currently be focussing on becoming self-reliant in designing and developing chips.

“India will build fabs over a longer period but to build chips and systems and products for hoards of applications, we need product design talent and engineering talent,” Rao told Inc42 in a conversation earlier this year. 

In fact, Speciale Invest is interested in the market opportunity created by applications and startups building SoCs for these applications.

“Speciale is interested in the market opportunity that millions of units of fans, fridges, microwaves, wearable, two-wheelers, four-wheelers, smart cities, industrial setups, factories, and robotics create for different types of sensors, controllers, actuators, and chips. If we can indigenously design and develop these chips, the fabrications can be done anywhere till India has its own fabs,” Rao had said.

He highlighted Speciale Invest’s investment in Morphing Machines, which is building its IP-led processor REDEFINE – one of the few many-core processors in the world that integrates various domain-specific architectures (DSAs) on a single chip.

Meanwhile, as per Inc42’s estimates, India’s semiconductor market is set to breach the $150 Bn mark by 2030, with AI chips contributing $21 Bn to it.

Gujarat Gets A Shot In The Arm

While Bengaluru has so far been the hub for semiconductor companies in India (in terms of the concentration of these companies in the city), VCs now believe that Ahmedabad is all set to change that and emerge as the country’s prime semiconductor hub.

As per Inc42’s survey, 59% of investors agree with the aforementioned statement, while 50% believe Bengaluru will continue to retain its position as the country’s only semiconductor hub. Next, at least 50% of investors voted for Hyderabad in the survey, which allowed respondents to choose multiple cities.

A majority of investors are placing significant bets on Ahmedabad because the Indian government has laid the groundwork for multiple fabs to spring up in Gujarat. In June 2023, the cabinet approved Micron’s proposal for setting up a semiconductor unit in Sanand, Ahmedabad.

The government approved three more semiconductor units in February this year. Tata Electronics is also setting up a semiconductor fab in Dholera, while CG Power is setting up one semiconductor unit at Sanand in Ahmedabad. Tata Electronics is on track to release its first chip by 2026.

Recently, the Centre also approved the proposal of Kaynes Semicon to set up a semiconductor unit in Gujarat with an investment of INR 3,300 Cr. The company is building its outsourced semiconductor assembly and test (OSAT) unit in the state.

However, it must be noted that dethroning Bengaluru is not going to be easy, as a majority of the design, IP, and even processor companies continue to emerge from Bengaluru.  

Supporting this growth, as per the former NITI Aayog CEO and India’s G20 Sherpa Amitabh Kant, is Karnataka’s Bengaluru-Mysuru belt, which offers the “best” ecosystem for semiconductor design and manufacturing in India. 

As of now, barring a few challenges, the semiconductor ecosystem in India is all set to carve a niche in the global market as participation from public and private players strengthens. A testament to this is the total funding raised by homegrown semiconductor startups, which as per Inc42’s latest report shot up 100% on a year-on-year basis to $3.4 Bn in the September quarter.

[Edited By Shishir Parasher]

The post Investors Eye A Pie As India Prepares To Lead The Global Semiconductor Revolution appeared first on Inc42 Media.

Quick commerce vs ecommerce marketplaces — that’s the big battle in the 2024 festive season sales. 

The rise of Blinkit, Zepto, Swiggy Instamart has certainly thrown a big curveball to ecommerce giants Amazon India, Flipkart and Meesho. So how large of a dent will quick commerce make on the biggest sales season for these ecommerce giants? 

The question is particularly pertinent in 2024 given that quick commerce giants have stepped into the marketplace territory for key categories. This was not the case in 2022, when quick commerce had just emerged on the radar, or in 2023, where the focus was on scaling up and expanding the dark store network. 

But in 2024, quick commerce players are certainly matching marketplaces in terms of categories and penetration and have become the de-facto destination for festive season shoppers in metros and Tier 1 markets. 

Take the recent launch of Apple iPhone 16, for instance. While in the past couple of years, there have been one-off launches such as this, this time around, every quick commerce player has made a big deal of this launch.

Plus, ahead of the festive season sales, we have seen Zepto, Blinkit and Swiggy expand their dark store networks to Tier 2 and 3 markets as well. The signal is clear: quick commerce is going after the marketplace lunch. 

Industry insiders and experts believe while the quick commerce capacity-building is impressive, it will take a lot more to dethrone marketplaces as the primary festive season destinations for online shoppers. 

That’s because a majority of the festive season sales in India are driven by non-impulsive shopping behaviour where trust factor, planning, pricing and brand legacy are important metrics for shoppers. 

Quick commerce players still have a way to go in this regard. Data released by market intelligence firm Datum Intelligence last week suggested that quick commerce players will only contribute around $1 Bn in GMV to the total estimated GMV of $12 Bn during the festive season sales. 

Quick commerce platforms have seen a spike in order volumes due to their expansion beyond metros, but the average order value is not likely to overshadow marketplaces just yet. 

A majority of the non-grocery categories, where quick commerce players are catching up, will still be dominated by the ecommerce marketplaces, says Satish Meena, adviser at Datum Intelligence.

Quick commerce’s impact will be felt by marketplaces across a majority of the grocery categories and a few beauty, personal care verticals in the metros, Meena told Inc42. However, in Tier 2,3 cities and beyond, quick commerce’s entry will largely hit local brick-and-mortar retailers. 

“Quick commerce platforms account for 40%-plus share in online grocery sales outside the festive season. We expect this to increase to 51%. Instant deliveries as a trend is now catching up in markets beyond metros, Tier 1 cities. However, that will take away the market share of the local kirana shops rather than the ecommerce marketplaces,” Meena explained.

What about the non-grocery category? Analysts say that Flipkart, Amazon, Myntra, Ajio, Meesho and others have the upper hand when it comes to electronics and fashion categories which have typically contributed over 50%-60% of all ecommerce marketplace sales.

Indeed, when it comes to gifting, electronics and fashion are the biggest draws during the festive season. So can marketplaces protect these moats from the quick commerce onslaught?

Marketplaces Guard Electronics Stronghold

Among electronics, mobile phones is the dominant category, and each festive season, we see a ton of exclusive launches, discounts and brand tie-ups on Flipkart and Amazon India. 

Mobile phones account for nearly 40% of the festive season sales on these two marketplace giants. The fact that these platforms offer exchanges and EMI/credit-driven purchases also gives them the edge over Blinkit, Zepto or Swiggy Instamart. 

In fact, Flipkart’s strengths in the electronics space give it an edge in the quick commerce space, where the company has launched Flipkart Minutes.

“So far, Flipkart and Amazon have garnered millions of dollars in sales from mobile phones eating into the retail market share. This cannot be disrupted by quick commerce platforms anytime soon. Despite the initial buzz around delivery of iPhones, quick commerce platforms have a lot to catching up to do,” a representative of a Bengaluru-based mobile retailers body claimed. 

He added that the mobile retailers have also scaled online visibility, are tying up with ONDC like networks and giving deep discounts to prevent marketplaces from dominating further. 

“In recent times, retailers like Sangeetha Mobiles are going live on ONDC in Bengaluru with 2-hour deliveries. This actually could be a huge tipping point for brick-and-mortar stores as they look to level the playing field against Flipkart and Amazon. On the other hand, quick commerce companies will have to fight challenges like trust factor, returns, exchanges, EMIs and more which will not be easy to implement well this year,” according to the owner of a mobile retail chain. 

Datum Intelligence’s Meena also sees minimal impact on Amazon, Flipkart from quick commerce platforms in the electronics categories such as laptops or mobile phones or even large appliances like televisions, washing machines and refrigerators which are big sellers during the festive season.

“During the festive season, we tend to see a lot of planned purchases for large and high-value products. Many of these are heavily reliant on credit features such as EMIs or BNPL, and customers prefer options such as returns and exchanges that quick commerce players do not yet offer,” Meena added.

“Large ticket purchases are usually not impulsive like in the case of grocery items. Ecommerce giants and mobile retailers will easily trump quick commerce companies because of their limited exposure to these categories thus far,” Meena said.

Who Will Win The Fashion Show?

It was only late last year that we saw some quick commerce platforms add fashion as a category with a handful of SKUs in the athleisure, innerwear and footwear segments. Inventory building on the fashion side has been relatively slow for these platforms due to some particular challenges in this category. 

For instance, fashion sees the highest volume of returns and exchanges, but quick commerce platforms do not yet have the same robust returns process that the likes of Myntra and Ajio have relied on.

“Fashion has been a tricky category to crack, which is why we have not seen many platforms venturing into this vertical despite high margins. It’s not just enough to have the most popular brands on the platform, but consumers prefer a wide variety of brands across all price segments,” the founder of a Bengaluru-based athleisure brand said. 

“Quick commerce platforms can only take limited risks for inventory in the fashion category in the dark store model. Hence, fashion will see limited exposure to quick commerce and the key share is expected to stay with the vertical marketplaces,” founded added.

The other challenge is in the luxury or the premium segment. Myntra and Ajio have created separate sections within their apps to cater to these high-value products. Ajio has the edge when it comes to exclusive deals with international brands and labels. Expecting Blinkit and Zepto to have the same brands is far-fetched. 

Beyond fashion, quick commerce platforms can make a dent in the beauty and personal care, as well as lifestyle segments, since these categories do cater to impulse shopping. 

“We have seen a very fast adoption of skin care and beauty products by quick commerce platforms which will only increase in coming months. This might hit the niche players like Nykaa, Purplle and others that have been market leaders. We expect small-ticket purchases and non-make up product orders to spike during this festive season on quick commerce platforms,” Meena added. 

Similarly, quick commerce players will shy away from other large verticals such as furniture, which is also reliant on returns and exchanges. Catering to these categories will require a rewiring of the dark store model, which is not suited for large inventory. 

All in all, experts feel that bridging the gaps in the electronics and fashion categories will take a lot of brainstorming by quick commerce players. So as far as the 2024 festive season sales are concerned, marketplaces may not be too worried. Perhaps by 2025, they may be singing a different tune.

[Edited By Nikhil Subramaniam]

The post Will Quick Commerce Eat Amazon, Flipkart’s Festive Season Lunch? appeared first on Inc42 Media.

With one quarter to go in 2024, we are beginning to another inflection point in the Indian startup ecosystem, with VC funds and investors, in particular, displaying a lot more optimism than just one year ago. And in particular, we are seeing a shift from valuations to value.

Much of this bullishness was on display at MoneyX by Inc42 last week, but even outside the spotlight of the stage, conversations revolved around true valuations, monetisation and profits, the IPO frenzy and exits. When just last year, perhaps the mood was a bit more sombre.

Indeed, over the past two months, we have delved into the factors that have given Indian venture capital firms this brighter view of things — including the improving outlook for exits through IPOs and the secondary market for startups.

But what’s often unspoken in these conversations is the rationalisation in startup valuations. The discussion around valuations is usually restricted to the public markets where we have seen debates on Zomato’s staggering rise to $30 Bn and beyond, and on the flipside, Paytm currently trading at over 70% lower than its listing price.

These fluctuations in valuations are pretty much expected in the world of publicly listed companies, but for startups, the conversation has pretty much always been about rising valuations, or when things go pear-shaped and there’s a big erosion — think, BYJU’S or Pharmeasy.

That’s until now. In 2024, there is a more measured and rational view on valuations and the fact that many startups are now coming closer to their true value than before. In particular, the fact that even smaller IPOs are gaining a lot of traction and interest is also a great sign for startup investors, and another factor behind the shift from vanity valuation to real value.

From Vanity Valuation To Real Value

Several noted investors told Inc42 last week that if the past decade was about backing the potential of Indian startups, the next few years will be about backing the value that has been created from this potential. And for many VCs, the age of unicorns is over, or perhaps the metric by which a unicorn is defined has changed.

Until FY23, only a handful of unicorns were profitable. But this tide seems to be turning in FY24 as companies have figured out ‘comfortable’ monetisation models. Zomato, Honasa, OYO have shown that companies can scale up and yet remain profitable.

It’s no longer the choice between profits and revenue that it used to be, and valuations, therefore, are not the metric by which to judge the startups that need to be celebrated.

Peak XV Partners’ managing director Mohit Bhatnagar admitted to having a problem with the term unicorn, because as an investor, it gives the wrong signal. He believes that valuation only truly matters at the time of an exit, and to get this valuation, investors have to back value.

“It’s time we look at redefining what it means to be a unicorn. While surely, it cannot always be about profits, we have to judge companies on how much revenue they are generating and are they closing the gap when it comes to going breakeven. This is the real metric and the days of chasing these vanity valuations are over,” he added.

In a similar vein, early-stage and angel investor Rajesh Sawhney believes that the wave of smaller IPOs, which have also delivered the returns to pre-IPO investors, shows that valuation was never the right north star for founders.

“Of course, valuations are important when you exit, but that cannot be the reason you invest in startups. Founders bargaining for a higher valuation is a red flag in most cases, and only in a fraction of investments does this pay off. But why take that risk at all? Venture investing is already risky,” Sawhney told Inc42.

Why Valuations Don’t Matter For Some VCs

Others such as Hiro Mashita, founder and director of Singapore-based m&s Partners, had a different take on valuations. Mashita said that as early investors, the potential upside can be so big that valuation at the time of investing is often immaterial.

Mashita pointed to his experience of investing in Razorpay’s seed round in 2015, when the company had just started out and was not making much revenue to its current valuation of over $7.5 Bn. He claimed his investment has grown by over 700X since the seed round. So for him, it was not about the valuation but the value that Razorpay could unlock.

Interestingly, Mashita also cited the example of Y Combinator founder Paul Graham, who once said, “Valuation matters far, far less than the decision of whether to invest or not. The spread between bargain and outrageous startup valuations can’t be more than 5X, in a world where the best investments can return 1,000X.”

Incidentally, Y Combinator also invested in Razorpay’s seed round, and the company is now looking to list in India by FY26 or next year.

IPOs & Indian Startup Valuations

Speaking of IPOs — many VCs have seen the writing on the wall for a number of years, and have held onto the belief that private valuations are just a number on a paper that does not matter for many years.

The fact is that many VCs feel vindicated about their thoughts on valuations today, than a few years ago, because of the fact that today startups are at the stage where they can grow into their valuations more easily.

The ripe market for IPOs is a big part of this vindication. Relatively small size of some new-age tech public listings this year and the spate of SME IPOs (even accounting for the potential bubble there) have also justified their patience.

When criticism around bloated valuations first came up in 2021 during the ZIRP investing bubble, Blume Ventures’ partner Sajith Pai wrote, “VCs found that the techniques that public market investors used couldn’t hold for younger, fast-growing companies with unpredictable revenue. Through long years of iteration, they came with the practice or protocol of playing long-term multiparty staging games to take the company from idea to IPO.”

At the time, Pai claimed the VC valuation process has been honed and has evolved over the years, and can at times lead to situations where certain startups seem to have ‘absurd’ valuation for their particular stages. But also he warned that comparing these valuations with public markets misses a big point.

“Over time, these ‘derived valuations’ correct themselves out, and in the long run, as the startups move to an IPO, the values converge with those of their public market counterparts,” Pai wrote in 2021

This seems to have presaged what we are seeing in 2024. A lot of the private market valuations are either sobering to meet public market benchmarks and when private companies go public, their valuations reach more rational levels seemingly automatically.

In many ways, this too is a sign of maturity of the market, of a necessary step in the evolution of Indian startups. Even the most absurd valuations tend to get corrected in the long run. And when they do, as they have now, the real value comes to the fore.

The post From Valuation To Value: Indian VCs Shift The Gears appeared first on Inc42 Media.

It’s hardly a secret that India’s D2C story began online, but omnichannel is the way forward as brands and startups look to get closer to the consumer. 

But as more and more Indian D2C players try to hop the omnichannel train, they hit a wall. Not only are startups unable to find the right retail space, but there is a clear lack of a bridge which connects the online brand-building to the offline retail channel. 

A plethora of D2C brands, such as Firstcry, Bombay Shirt Company, Lenskart, Rage Coffee, Mamaearth and Giva, are bullish on the omnichannel route but when they get there, they realise that malls, modern retail stores and general trade outlets lack the infrastructure that new-age D2C startups crave. 

And when it comes to exclusive brand outlets, not many startups have the scale and the presence to make full use of the capital expenditure involved. Even fighting against legacy retail and FMCG players is an uphill task as these have well-established networks with retail channels. 

So even as brands love the retail and omnichannel modes for the hands-on experience that they enable, there is a gap in the market. And this is the niche that Broadway wants to occupy. 

Founded in March 2023 and with its first store now launched in Delhi NCR, Broadway claims to have cracked the modern retail formula for new-age D2C brands. 

Conceptualised and launched by venture studio Think9, actor Rana Daggubati, real estate giant Anarock chairman Anuj Kejriwal and Salarpuria Group executive director Apurva Salarpuria, Broadway calls itself  “A Theatre for Brands” allowing consumers to look, feel and interact with D2C brands in ways thus far unexplored.

In fact, Think9, being a venture studio, has co-created several brands, which are among the launch partners for Broadway in Delhi’s Ambience Mall, with two more outlets planned in Mumbai and Hyderabad.  

Speaking to Inc42, Salarpuria said that while Broadway is the brainchild of Think9 cofounder Vivek Biyani, all four entities bring a unique edge to the table. Salarpuria’s experience in investing in the ecommerce and D2C space for the past decade, Daggubati’s star power and his brush with investments and creating retail spaces as well as Anarock’s real estate experience all play a key role for Broadway. 

So what exactly is the Broadway play? 

The Inception Story

Having backed brands such as Paper Boat, Bira, Epigamia and others in the past decade, Salarpuria has seen the growth of the D2C segment up close. And naturally, he is well aware of the problems many of these brands faced when going offline. 

“There was a realisation that while brands can scale up to INR 50 Cr top line by just online, the cost of doing business becomes fairly flat post that. There is no economies of scale on the selling side and for brands to operate in a meaningfully profitable way, these brands needed to bring in a mix of online and offline streams,” he told Inc42. 

Online-first brands have a steep learning curve when it comes to offline retail. With the D2C enabler thesis at its core, Broadway is looking to create an environment that could potentially offer brands the right ingredients for offline success. 

As Salarpuria pointed out, department stores and large malls haven’t evolved meaningfully in tandem with the changing times. With a plethora of online offerings coming into play in recent times, consumers now often step out of their houses to gain meaningful experiences and not just buy products. And that’s something D2C brands are well aware of, given this is exactly how they build their online presence. 

But bringing this to the retail space is not possible without reinventing the concept of a department store. “For the new age consumers, the experience of going to a department store is not as exciting as it was pre-ecommerce boom in India. The experience hasn’t picked up as it could, and that’s where we felt that Broadway could fill in a gap. With this, we are bidding to create a new era of experiential shopping in India,” he added. 

Broadway Reimagines Omnichannel

Having visited the Broadway outlet in Delhi NCR on opening day, one could immediately see why Salarpuria claims to have reimagined the space, creating a mall within a mall. Salarpuria explained that Broadway at its core wants to introduce a social element to retail, which is why all brand aisles feature screens where brands can emphasise their key features and USPs. 

Besides this, there is an experiential element such as a mini food court and a bar at the Delhi outlet where F&B brands get showcased unlike any other mall or retail outlet in the past. New products can be launched on a stage right inside the store, and D2C brands can have dedicated zones within Broadway to set up mini stores within this space. 

“We are looking at live shows and gigs which can feature stand up comedians, live music, among others where brands can intersect with entertainment acts unlike ever before,” Salarpuria added. 

To start with, Broadway is launching with 115 brands, but new brands will be added on a daily basis and the founders claim to have made it much easier for new brands to come onboard. 

Besides entertainment, shoppers have an opportunity to interact with people behind the brands housed in the stores, from founders of D2C brands to investors, which is again a first when it comes to the omnichannel mode.  

“There are multiple layers adding on to the experiential shopping experience that we are looking to create. Besides in-house live events, food and drinks, we are creating an influencer program within the store in a setting called “Broadway Studio”, where influencers can come in and promote merchandise within the store and interact with consumers. This can allow brands to churn out fresh content every week with good quality influencers at a very low cost,” he explained. 

While the first store in Delhi is set up inside a mall, Broadway is building a bigger, standalone outlet in Hyderabad at the moment which will span 45,000 sq ft. This particular outlet can accommodate 250 brands, and is envisioned as an arena for showcasing India’s D2C startups. 

The Broadway Advantage For D2C Brands

So what kind of brands is Broadway looking to collaborate with and will Think9’s brands be given a preference over others? Salarpuria said that the responsibility to curate the list of brands is with Think9’s Vivek Biyani, the nephew of Future Group founder Kishore Biyani. 

“Of course, there are a lot of better-known brands we specifically wanted to have to give people familiarity with them. Nonetheless, we’ve had a ton of brands applying to us, and we’ve been trying to curate to make sure we have a healthy mix of different kinds of products,” Salarpuria claims. 

Given the background of the Biyani family, Broadway can rely on their expertise of running a retail giant in India. This critical know-how along with the fact that Think9 has built brands in a hands-on manner, will be a key competitive advantage for Broadway. 

As Kishore Biyani told Inc42 on the launch day, “One can never stop innovating and this is going to be a game changer for modern retail in India. Nowhere else can consumers directly speak to some of the founders running these brands, so this creates a different kind of impact on the shopper.” 

So how easy is it for brands to come on-board? Broadway claims any brand can set up their presence within a day, and they can experiment with Broadway for a few months and even opt out if the model is not for them. Salarpuria claims this will allow Broadway to constantly have a fresh set of brands and catalogue, which is again key for the kind of consumer these brands want to attract.

Modern consumers are willing to pay more, which explains the premiumisation wave in the Indian D2C space, and they also have a propensity to experiment with new brands. Which is why Broadway’s easy-come-easy-go approach might be great for brands testing the omnichannel waters.  

The question of course is whether brands will continue to rely on Broadway when they scale up. Often brands want to establish a strong brand offline and go for exclusive stores to achieve that. With Broadway, they get a relatively cost-efficient go-to-market strategy for omnichannel, but sticking with Broadway in the long run requires a lot more proof about whether this will work for scaled up brands. 

Salarpuria is clear that these are early days. “We are very cognizant of the fact that as more and more consumers come in, we will get a lot of data about what kind of brands are seeing higher traction and what areas we need to improve on. There will be lots of things which we will have to change and the challenge for us is adapting quickly.” 

Soon after our interaction, Salarpuria jumped into another call with the key people at Broadway to pick out learnings from the opening weekend. “We want to be adaptive to whatever feedback we are getting from the D2C ecosystem.”

In many ways, Broadway is the new social commerce for D2C brands in the omnichannel space. 

[Edited By Nikhil Subramaniam]

The post Behind Broadway’s Bid To Rewire The Omnichannel Route For D2C Brands appeared first on Inc42 Media.

India is renowned for its rich culinary delights, with each state offering a diverse array of food and beverage (F&B) experiences. Despite this, the Indian palate craves more for fresh and exotic cuisines and flavours.

With over 140 Cr people having such affinity for a variety of food and beverages, Indian entrepreneurs have seemingly found a lucrative market, which, as per Inc42, is expected to grow to $68 Bn by 2030. Notably, startups have picked up this opportunity by catering to the requirements of people, through the D2C channels.

According to Inc42’s Findings From Inc42’s Hunt For India’s Fastest-Growing D2C Brands analysis, while the beauty and personal care segment is estimated to exhibit a CAGR of 28.6% by 2030 in the Indian D2C market, it is closely followed by the F&B industry with 27% CAGR.

From established brands like Pedigree Petfoods, Amul, Baskin Robbins, and McDonald’s to startups like iD Fresh Foods, Chaayos, Coolberg, and Paper Boat, there is no dearth of choices for Indian consumers, and still, there is enough headroom for both the existing and new players to flourish in the sector.

The above statement can be substantiated by the fact that several F&B startups, including Blue Tokai Coffee Roasters, Plix, Pluckk, and TagZ have been making waves in the industry, backed by investors’ trust.   

The influx of new startups with innovative product ranges has revitalised the sector, prompting Inc42 to compile a list of the F&B brands that are disrupting the Indian market.

With that said…

Here Are The F&B D2C Brands Reshaping The Indian Consumer Market

(Note: The list below is not meant to be a ranking of any kind. We have listed the Indian F&B startups in alphabetical order.)

1. Beyond Snack

• Year Of Inception: 2018
• Founders: Manas Madhu, Jyoti Rajguru, Gautam Raghuraman
• Funding Raised To Date: INR 33 Cr
• Investors: NABVentures, 100X.VC
• Headquarters: Kerala

Beyond Snack was incorporated to commercialise the popular South Indian snack, banana chips. The startup claims its banana chips are healthy because the nutrients are preserved during the manufacturing process. 

The bananas are sourced directly from farmers and the chips are prepared in under two minutes to retain their natural nutrients, unlike the usual 15-20 minutes of frying. This ensures the products go from farm to plate in less than 24 hours.

To ensure availability across the country, the startup has opened warehouses in Mumbai, Delhi, and Kolkata. As an omnichannel brand, its products are available on ecommerce platforms like Amazon, Flipkart, BigBasket, and Zepto, as well as in over 10,000 retail outlets, including DMart and Reliance stores.

Beyond Snack aims to become a leader in the banana chips market and reach INR 100 Cr in revenue by FY25.

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2. Boba Bhai

• Year Of Inception: 2023
• Founder: Dhruv Kohli
• Funding Raised To Date: INR 12.5 Cr
• Investors: Titan Capital, Arjun Vaidya, Varun Alagh
• Headquarters: Bengaluru 

Launched as a passion project by Dhruv Kohli in late 2023, Boba Bhai has swiftly become a notable player in the bubble tea market, capitalising on the growing trend for this popular Taiwanese drink.

Offering a diverse range of products priced between INR 99 and INR 219, Boba Bhai sets itself apart with its broad product selection and user-centric approach, distinguishing itself from competitors like Chai Point and Cha Bar.

In just one year, the startup has built a substantial customer base of over 4 Lakh and achieved revenues of INR 8 Cr. With plans to significantly expand its presence, Boba Bhai aims to increase its offline footprint to 80-100 stores by the end of 2024, seeking to further boost its revenue and market reach.

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3. Burger Singh

• Year Of Inception: 2014
• Founders: Kabir Jeet Singh, Nitin Rana, Rahul Seth
• Funding Raised To Date: INR 30 Cr + undisclosed
• Investors: RB Investments, Rukam Capital, KCT Family Office, and V.M. SALGAOCAR family office
• Headquarters: Gurugram

Established in 2014 by Kabir Jeet Singh, Nitin Rana, and Rahul Seth, Burger Singh is a Gurugram-based quick-service restaurant (QSR) chain.

In 2019, the company secured an undisclosed amount of funding from RB Investments, based in Singapore. Subsequently, in 2022, Burger Singh successfully raised INR 30 Cr in its Series A funding round. The round was led by Negen Capital, accompanied by LetsVenture, Mumbai Angels, Old World Hospitality, and musician Jasleen Royal.

Following the fundraising in 2022, the fast-food chain announced its plan to utilise the funds for opening 120 new food outlets by the end of FY23.

As of July 2022, Burger Singh boasted more than 80 exclusive food outlets and 12 franchisees across various locations in India.

In the competitive QSR industry, Burger Singh faces competition from well-known brands such as Burger King, McDonald’s, Subway, Domino’s, and KFC.

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4. Chaayos 

• Year Of Inception: 2012
• Founders: Nitin Saluja, Raghav Verma 
• Funding Raised To Date: $98 Mn
• Investors: Alpha Wave Ventures, Elevation Capital, Think Investments, Tiger Global, Integrated Capital, SAIF Partners, InnoVen Capital, Pactolus, Sachin Shukla, Bhavish Aggarwal, Ankit Bhati
• Headquarters: Delhi

F&B brand Chaayos sells multiple types of teas and pre-packaged food products via offline and online marketplaces and uses new-age technologies like AI and IoT to run its operations efficiently.

Earlier, it had shared that its online tea deliveries account for 45% of its revenue. It operates 190 retail outlets across six Indian cities. In June 2022, it secured $53 Mn in its Series C funding to develop tech infrastructure and expand its presence.

Its cap table includes Alpha Wave Ventures, Elevation Capital, Think Investments, Tiger Global, SAIF Partners, InnoVen Capital, Pactolus, and Ola cofounders Bhavish Aggarwal and Ankit Bhati, among others.

Chaayos’ FY22 revenues rose 2.4X YoY to INR 134.9 Cr, while its total revenues stood at INR 140.2 Cr during the period under review.

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5. Charcoal Eats

• Year Of Inception: 2015
• Founders:  Krishnakant Thakur, Anurag Mehrotra, Mohammed Bhol
• Funding Raised To Date: $9.8 Mn+
• Investors: Lokmat Media, Girish Patel, Anil Singhvi, Ajinkya Firodia
• Headquarters: Mumbai

Founded in 2015, Charcoal Eats is a quick-service restaurant chain that delivers “high quality, consistent, authentic, modern Indian flavours to its patrons across the country across snack and meal times at affordable prices” via its app. 

The company operates brands such as Charcoal Eats for Biryani and B Burger across Mumbai, Pune and Delhi NCR.

While the company started with six biryani variants, the company claims to be offering 50 different all-day food options across snack and meal times, that include biryanis, starters, curries, rice bowls, rolls among others.  

It has around 40 outlets, mostly cloud kitchens, across Mumbai, Pune and Delhi-NCR.

Through these outlets, customers can dine-in, take-away or order for delivery, as per their convenience. Charcoal Eats is also available on leading food platforms, Zomato and Swiggy. It also recently launched a new product line under the brand name Khichdibaba.

Among QSR restaurants, Charcoal Eats competes with Wow! Momo Foods, Faasos and Hello Curry, among others. 

The startup recently raised $5.3 Mn to boost its brand operations and expand its footprint across India and overseas.

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6. Coolberg 

• Year Of Inception: 2016
• Founders: Pankaj Aswani, Yashika Keswani
• Funding Raised To Date: $3.5 Mn
• Investors: RB Investments, India Quotient, Ashish Goenka, Indian Angel Network
• Headquarters: Mumbai

Coolberg is a non-alcoholic beer brand, which sells cranberry, peach, ginger, malt, strawberry, mint, and cranberry beverages via its website and offline distribution channels. Currently, it has a presence in India, Africa, Maldives, Bhutan, and Nepal. 

In 2019, Coolberg raised $3.5 Mn in its Series A funding round from RB Investments, India Quotient, Ashish Goenka from Suashish Diamonds, and Indian Angel Network. Prior to that, it bagged an undisclosed sum from India Quotient and Indian Angel Network’s maiden fund.

The beverage startup was acquired by Ghodawat Consumer in 2022 for an undisclosed amount. The startup said that this acquisition would help it develop a portfolio of new-age premium beverage brands as part of the deal. 

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7. Desi Farms

• Year Of Inception: 2022
• Founders:  Sunil Sahi 
• Funding Raised To Date: $6 Mn
• Investors: NAV Capital Emerging Funds, Venture Catalysts, Cummins India’s founder and MD Ashwath Ram
• Headquarters: Pune

Founded in 2022 by Sunil Sahi, the Maharashtra-based farm-to-table D2C brand offers fresh and chemical-free milk and dairy products.

Currently operational in Pune, the brand claims to offer milk within 12-24 hours of the milking process. Other than milk, its product category includes A2 milk, ghee, paneer and more, with each product passing through 20 quality checks. 

It has developed a tech-enabled in-house system, which takes care of production, delivery and franchise modules to ensure product provenance, tracking the entire journey from farms to customers.   

Desi Farms has an omnichannel presence. Its products are sold via its app and portal, on ecommerce marketplaces under the Manchar Farms brand and through 50+ Desi Farms outlets. 

Since inception, it has secured INR 50 Cr funding from investors like NAV Capital Emerging Funds, Venture Catalysts, Cummins India’s founder and MD Ashwath Ram, among others. 

The startup also made it to the list of Inc42’s latest edition of Fast42.

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8. Dogsee Chew

• Year Of Inception: 2015
• Founders:  Bhupendra Khanal, Sneh Sharma 
• Funding Raised To Date: $13.9 Mn  
• Investors: Mankind Pharma, Sixth Sense Ventures
• Headquarters: Bengaluru

Dogsee Chew offers vegetarian dog treats that are natural, human-grade, and protein-rich. These treats are made from yak milk cheese by residents of villages in Nepal, Sikkim, and Darjeeling. 

Earlier this year, the startup secured $6.7 Mn in its Series A funding round from Mankind Pharma and Sixth Sense Ventures.

In November 2021, it raised $7 Mn in its Pre-Series A funding round from Sixth Sense Ventures. Currently, it has a presence in over 30 countries. 

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9. DropKaffe

• Year Of Inception: 2019
• Founders: Rakshit Kejriwal, Lakshmi Dasaka, Chaitanya Chitta  
• Funding Raised To Date: $1.7 Mn 
• Investors: Fireside Ventures, Brigade Group, GrowthStory, Sidharth Pansari, Nirupa Shankar, Hitesh Oberoi, Kanwaljit Singh, Apurva Salarpuria, Manish Singhal P39 Capital
• Headquarters: Bengaluru

Beverage startup DropKaffe sells ready-to-drink cold coffee, fresh coffee beans, coffee powders, and gourmet foods under the brand SLAY Coffee through its website and cafe chains.

According to its LinkedIn page, the startup has a presence in over 160 locations across 19 Indian cities.

In 2016, its parent company raised $550K in a funding round led by Fireside Ventures’ Kanwaljit Singh, Srini Anumolu & Meena Ganesh of GrowthStory, Apurva Salarpuria from Salarpuria Group, Sidharth Pansari from Primac, Rahul Gidwani, Hitesh Oberoi from Naukri, Nirupa Shankar from Brigade Group, and Bhupen Shah also participated in the round. 

The venture claims to serve more than 500K customers across 20 cities across the country.

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10. Eat Better

• Year Of Inception: 2020
• Founders: Mridula Kanoria, Shaurya Kanoria  
• Funding Raised To Date:  $725K
• Investors: Java Capital, Mumbai Angels, Shiprocket Ventures, CapierCapital, Plan B Capital, Harpreet Grover, Arjun Vaidya, Bhavik Vasa, Radhika Ghai, Vishesh Khurana, Bimal Kartheek Rebba, Ishank Joshi, Venus Dhuria, and Divij Bajaj
• Headquarters: Jaipur

Organic food startup Eat Better sells healthy snacks such as coffee and almond laddoos, hazelnut chocolate laddoos, and vanilla, and cacao laddoos, among others, through its website and other ecommerce platforms. 

The startup has a manufacturing facility in Jaipur and manages a base of over 50 female employees.

In March 2022, it secured INR 5.5 Cr seed funding to strengthen its team, expand offerings and develop marketing and distribution channels. 

A slew of investors, including Java Capital, Mumbai Angels, Shiprocket Ventures, CapierCapital and Plan B Capital, participated in the funding round.

Earlier, it claimed to have reported over 10x growth in revenues between October 2020 and March 2022.

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11. Farmley

• Founded In: 2017
• Founders: Akash Sharma, Abhishek
• Funding Raised To Date: $12 Mn+
• Investors: BC Jindal Group, Alkemi Partners, Omnivore, DSG Consumer Partners
• Headquarters: Delhi NCR

Farmley, a direct-to-consumer (D2C) snacking brand founded in 2017 by Akash Sharma and Abhishek, specializes in offering an array of flavoured dry fruits and nuts. Their product range includes enticing options such as roasted peri peri makhanas, Thai chili cashews, and date bites.

With a presence across various ecommerce platforms like Amazon, Flipkart, Blinkit, Zepto, Instamart, and Big Basket, Farmley has established itself as an omnichannel brand. Additionally, it boasts a wide distribution network of over 10,000 retail outlets across India. 

It claims to have crossed an annual recurring revenue (ARR) of INR 300 Cr, growing by over 400% in the past two years. The startup also claims to have turned EBITDA positive.

In December 2023, the startup secured $6.7 Mn in a Pre-Series B funding round led by BC Jindal Group.

Since its inception, Farmley has raised more than $12 Mn from a number of investors, including DSG Consumer Partners, Omnivore, and Alkemi Partners. 

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12. Good Flippin’ Burgers 

• Year Of Inception: 2019
• Founders: Viren D’silva, Sijo Mathew, Sid Marchant
• Funding Raised To Date: $5.1 Mn
• Investors:  Karan Bhagat, Yatin Shah, Nikhil Bhardwaj, Tanglin Venture Partners
• Headquarters: Mumbai

Burger chain Good Flippin’ Burgers has 23 outlets across Mumbai and Delhi, of which 16 are in Mumbai. The brand entered the Delhi market with seven new outlets earlier this year.

In 2023, the startup raised $4 Mn in its Series A round, which was led by Tanglin Venture Partners. It has also raised $1.1 Mn in a seed round led by Kerala Blasters Football Club’s director Nikhil Bharadwaj, IIFL Wealth’s Karan Bhagat and Yatin Shah.

With outlets in only two cities in India, the startup is aiming to expand its footprint in India. It is also in the process of adopting cloud, hybrid, and dine-in formats with a focus on malls and airports. 

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13.  Go DESi

• Year Of Inception: 2018
• Founders: Vinay Kothari, Raksha Kothari
• Funding Raised To Date: INR 80 Cr
• Investors:  Aavishkaar Capital, Rukam Capital, DSG Consumer Partners, Roots Venture
• Headquarters: Bengaluru

The startup was founded by a brother-sister duo to commercialise traditional Indian treats and confectionery, all while empowering women in rural villages.

With an omnichannel presence, the startup’s products are available in over 40,000 stores nationwide, and it claims to have sold over 15 Mn units since inception.

In southern India, the products are available both online and offline. In cities like Mumbai and Delhi NCR, they are available only on quick commerce and online grocery apps.

The startup recently secured INR 41 Cr in funding led by Aavishkaar Capital. The round also saw participation from existing investors Rukam Capital, Roots Ventures and DSG Consumer.

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14. Go Zero

• Year Of Inception: 2022
• Founders: Kiran Shah
• Funding Raised To Date: $2.5 Mn
• Investors: DSG Consumer Partners, Saama, V3 Ventures
• Headquarters: Mumbai

Founded in 2022 by Kiran Shah, Go Zero manufactures zero sugar and low calorie ice creams. The startup claims to offer high-protein choices to its health conscious consumers as against traditional sugar-laden ice creams. 

The startup claims to have presence in more than 16 Indian cities including Mumbai, Pune, Bangalore, Delhi NCR, Hyderabad and Chennai among others. 

The startup has raised more than $2.5 Mn in funding to date and competes with players such as NIC, Get-A-Way and Amul. It is backed by names such as DSG Consumer Partners, Saama and V3 Ventures. 

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15. Happilo 

• Year Of Inception: 2016
• Founders: Vikas Nahar
• Funding Raised To Date: $38 Mn
• Bb Investors: Motilal Oswal Private Equity, A91 Partners
• Headquarters: Bengaluru

Happilo is a healthy snack brand that offers nuts, dried fruits, seeds and dry roasted snacks. It has a manufacturing unit at Yeshwantpur, Bengaluru. It follows an omnichannel approach to sell its products across the country. 

Happilo’s products are non-GMO verified, gluten-free, vegan and fat-free. The startup offers EMI options to customers if they cannot pay for products at once. 

In February, Happilo raised $25 Mn from Motilal Oswal Private Equity to expand its business and offerings and acquire other firms. Before this, it secured $13 Mn from A91 Partners.

It has grown over 4X in the last 24 months and is aiming to clock revenue of INR 2,000 Cr in the next four years.

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16. iD Fresh Food

• Year Of Inception: 2005
• Founders: PC Musthafa, Abdul Nazer, Shamsudeen TK, Jafar, Noushad TA
• Funding Raised To Date: $104 Mn
• Investors: NewQuest Capital Partner, Premji Invest, Peak XV Partners, Helion Ventures, Azim Premji
• Headquarters: Bengaluru

iD Fresh Food sells ready-to-make food such as dosa and idli batter, and rice rava idli batter, among others, in domestic and international markets. 

It has a presence in over 45 cities across the globe including Mumbai, Bengaluru, Pune, Hyderabad and Dubai, among others.

Recently, the Bengaluru-based D2C startup announced its seventh round of ESOPs worth INR 46 Cr for 27 employees.  

“In the coming months, we are excited to augment our 2,000+ workforce as we explore new markets and continue to create new opportunities for a diverse set of professionals, while actively creating a more inclusive workplace,” Musthafa said while announcing the ESOPs.

In January, the startup secured $68 Mn in its Series D funding round from NewQuest Capital Partner and Premji Invest. It has raised $104 Mn so far from individual and institutional investors. 

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17. Jade Forest

• Year Of Inception: 2019
• Founders: Shuchir Suri, Punweet Singh
• Funding Raised To Date: $1.25 Mn
• Investors: Mumbai Angels Network, Gaurav Kapur, Rohan Abbas, Ashish Tulsian, AngelList India 
• Headquarters: Delhi 

Jade Forest offers a slew of non-alcoholic beverages to customers via its website, ecommerce marketplaces and last-mile delivery platforms. Its products are priced between INR 80 and INR 85.

In 2021, it secured $1 Mn from Mumbai Angels Network. Before this, it secured $250,000 in its seed funding round from angel investors such as Gaurav Kapur, Rohan Abbas, Ashish Tulsian, and AngelList India. 

Its products are certified by the US FDA. In the last two years, it has expanded to 23 Indian cities.

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18. Jimmy’s Cocktails

• Year Of Inception: 2019
• Founders: Ankur Bhatia and Nitin Bhardwaj  
• Funding Raised To Date: $2.4 Mn
• Investors: Roots Ventures, 7Square Ventures, Vishesh Khurana, Varun Alagh, Keki Mistry, Vidur Talwar, Anirudh Somani, Vinay Agarwal, Ankur Bhatia, Mirza Baig, Ekcle Ventures, Angad Bhatia
• Headquarters: Gurugram

Jimmy’s Cocktails offers a slew of cocktail mixers including gin cherry sour, bloody mary, lime margarita, and mango chilli mojito, among others. 

In April, Jimmy’s Cocktails secured $1.8 Mn in its Pre-Series A funding round from investors such as Roots Ventures, 7Square Ventures, Vishesh Khurana from Shiprocket, Varun Alagh from Mamaearth, Keki Mistry from HDFC, among others. 

The startup then said that it sold over 6 Mn cocktails in the first three months of 2022. 

In the financial year 2021-22, it posted a 3X revenue growth. About 40% of its revenue came from Tier II and III cities.

This year, Radiohead Brands, the beverage maker’s parent company, secured $1.3 Mn and announced the launch of its energy drink brand Hustle. 

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19. Kapiva Ayurveda

• Year Of Inception: 2015
• Founders: Ameve Sharma, Shrey Badhani
• Funding Raised To Date:  $15.77 Mn
• Investors: Vertex Ventures, Fireside Ventures, 3one4 Capital
• Headquarters: Mumbai 

Kapiva Ayurveda offers a slew of ayurvedic products for building immunity, improving digestion, strengthening the body and controlling diabetes, among others. 

In October 2021, it got an undisclosed amount of funding from Bollywood actor Malaika Arora.

The startup’s revenue stood at INR 40 Cr in the financial year 2020-21. It claims to have sold over 8 Lakh ayurvedic products since its launch and has a user base of 3.5 Lakh.

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20. Lahori

• Year Of Inception: 2017
• Founders: Saurabh Munjal, Saurabh Bhutna, Nikhil Doda
• Funding Raised To Date: $15 Mn
• Investors: Verlinvest
• Headquarters: Punjab

Lahori offers traditional Indian beverages across the country. Currently, it offers Indian drinks in four flavours – jeera (cumin), nimboo (lemon), kacha aam (raw mango) and shikanji (lemonade). 

Lahori’s parent company, Archian Foods, manufactures nearly 1 Mn bottles in its fully automated manufacturing facility, which is spread across 1,50,000 sq ft. Its manufacturing unit is accredited by FSSAI, ISI, HACCP, RoHS and Make In India (offered by GeM). 

In January, Belgium-based Verlinvest infused $15 Mn in Lahori in exchange for a minority stake.

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21. Licious 

• Year Of Inception: 2015
• Founders: Abhay Hanjura, Vivek Gupta 
• Funding Raised To Date: $360 Mn
• Investors: Amansa Capital, Kotak PE, Axis Growth Avenues AIF – I, Nithin Kamath, Nikhil Kamath, Aman Gupta, Haresh Chawla, Temasek, Brunei Investment Agency, 3one4 Capital, Bertelsmann India Investments, Vertex Growth Fund, and Vertex Ventures
• Headquarters: Bengaluru

Licious offers a host of meat and seafood including prawns, kebabs and mutton, among others. Besides, it also offers an end-to-end supply chain of products that it sells to customers, right from their procurement to processing to delivery. 

In March, the foodtech unicorn secured $150 Mn from Amansa Capital, Kotak PE, Axis Growth Avenues AIF – I, Nithin and Nikhil Kamath of Zerodha, boAt’s Aman Gupta and Haresh Chawla from True North. 

Before this, it raised $52 Mn in October 2021. In the financial year 2020-21, it had an annual revenue rate of INR 1,000 Cr and operations in 14 Indian cities. Its customer base stood at over 2 Mn in the fiscal year 2020-21.

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22. MasterChow

• Year Of Inception: 2020
• Founders: Vidur Kataria, Sidhanth Mada
• Funding Raised To Date: $1.6 Mn
• Investors: Anicut Capital, WEH ventures, Fluid ventures 
• Headquarters: Delhi

D2C brand MasterChow offers ready-to-cook noodles, dipping sauces, and sticky rice, among others. 

In May, MasterChow raised $1.2 Mn from Anicut Capital, WEH ventures and Fluid ventures.

Prior to this, it had raised around $462K in its seed funding round from WEH Ventures and some angel investors. The startup had then claimed that it had grown 10x over the previous 12 months and shipped products to over 17,000 pin codes across India.

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23. Namhya Foods

• Year Of Inception: 2019
• Founders: Ridhima Arora
• Funding Raised To Date: Undisclosed
• Investors: Aman Gupta 
• Headquarters: Jammu

Headquartered in Jammu, Namhya Foods specialises in snacks and beverages made from Indian herbs and natural ingredients.

The startup was established in 2019 by Ridhima Arora. To secure funding, she participated in Shark India’s inaugural season and successfully secured INR 50 Lakh against a 10% equity. Additionally, she obtained an additional INR 50 Lakh in debt funding from Aman Gupta, the cofounder of boAt.

Namhya Foods positions itself as a provider of nourishing food products designed to assist individuals with various health conditions such as diabetes, heart issues, high blood pressure, cholesterol, thyroid problems, as well as chest congestion. The company offers a diverse range of products.

In addition to its presence in India, Namhya Foods operates in the United States and has plans to expand into the UAE, Australia, and Canada.

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24. Nourish You

• Year Of Inception: 2015
• Founders: Rakesh Kilaru, Krishna Reddy, Sowmya Reddy
• Funding Raised To Date: $2 Mn
• Investors: Y Janardhana Rao, Rohit Chennamaneni, Nikhil Kamath, Abhijeet Pai, Abhinay Bollineni
• Headquarters: Hyderabad

Nourish You sells nutrient-rich breakfast food products and snacks to consumers via its website and ecommerce marketplaces, including Flipkart, BigBasket, and Amazon, among others. 

Besides selling products directly to consumers, the startup exports food items to countries like Singapore, Nepal, Kenya, Dubai, Mongolia and Maldives. Some of its products are quinoa flour, chocolate & banana muesli, and cranberry walnut mix. 

Earlier, the startup shared that it had 5,000 acres of quinoa and chia farms in Rajasthan, Karnataka, and Madhya Pradesh. 

In January 2023, it secured $2 Mn in seed funding for research and development activities, brand marketing and fortifying its distribution and market presence. As a part of this round, it also secured an undisclosed amount of funding from actress Samantha Prabhu. 

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25. Oziva

• Year Of Inception: 2016
• Founders: Aarti Gill and Mihir Gadani
• Funding Raised To Date: $17 Mn
• Investors: HUL, Eight Roads Ventures, Z47, Stride Ventures
• Headquarters: Mumbai

Founded in 2016 by Aarti Gill and Mihir Gadani, OZiva is a D2C platform that sells plant-based products across categories such as women’s health, skin, hair, general wellness, among others. 

The startup has raised more than $17 Mn in funding till date and is backed by the likes of Eight Roads Ventures, Z47 (formerly Matrix Partners India), Stride Ventures, among others. It competes with the likes of Origin Nutrition, GoodDot, among others. 

In December 2022, Hindustan Unilever Limited (HUL) acquired a 51% stake in the plant-based supplement brand. The FMCG at the time said that it would completely buy out the startup in multiple tranches for a cumulative price of INR 264.28 Cr.

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26. Paper Boat

• Year Of Inception: 2010 
• Founders: Neeraj Kakkar, Niraj Biyani
• Funding Raised To Date: INR 458 Cr 
• Investors: Peak XV Partners, Hillhouse Capital Group, GIC, Advent International, Trifecta Capital, Sofina SA, A91 Partners, Catamaran, Footprint Ventures
• Headquarters: Gurugram

Paper Boat sells a slew of fruit-based drinks in Indian flavours including aam panna (raw mango), rose tamarind (tamarind juice), chilli guava (guava juice), ‘jaljeera’ (spicy, tangy lemonade), among others.

In August, the startup raised $50.1 Mn in funding from GIC-owned sovereign fund Lathe Investment Pte Ltd.

At the time, it used to have a presence in the metro cities, Tier II towns and beyond. In the fiscal year 2021-22, it posted revenue of INR 243 Cr, whilst its losses stood at INR 64 Cr. Meanwhile, in the fiscal year ending March 2020, it clocked revenue at INR 231 Cr and losses at INR 100 Cr, according to Tofler.

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27. Plix

• Year Of Inception: 2019
• Founders: Rishubh Satiya, Akash Zaveri
• Funding Raised To Date: $5 Mn
• Investors: Guild Capital, RPSG Ventures
• Headquarters: Mumbai

Based in Mumbai, Plix specialises in plant-based nutrition supplements, offering a range that includes gummies, superfood powders, and effervescent tablets. Plix asserts that its products effectively address concerns related to weight loss, hair fall and skin, daily wellness, women’s health, and workout requirements.

In July, FMCG giant Marico acquired a majority 58% stake in Plix for INR 369.01 Cr, marking its inaugural foray into the D2C arena. Under the terms of this deal, Marico assumed control over Plix’s board, and Plix became a subsidiary of Marico.

Competing alongside players like OZiva, Setu Nutrition, and Fast&Up, Plix boasts a customer base exceeding 1.5 Mn individuals. The omnichannel brand offers a diverse portfolio of 60 products spanning six categories. 

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28. Pluckk

• Year Of Inception: 2021
• Founders: Prateek Gupta
• Funding Raised To Date: $5 Mn+
• Investors: Exponentia Ventures, Kareena Kapoor Khan
• Headquarters: Mumbai

Pluck is an ecommerce platform which aims to serve the growing demand for lifestyle-oriented fresh produce. It focuses on the global food trends ranging from vegan, carb alternatives, gut health, immunity to plant-forward eating to prevent diabetes and mental health. 

The startup has a 400+ product range across 15+ categories including essentials, exotics, hydroponics, and cuts, mixes. The startup claims that the products are chemical free. Further, the products are customised following different food trends, suitable for gut and heart health, diabetes, and include organic and exotic produce as well. 

Pluckk’s products are available on its own D2C website along with partner ecommerce platforms  including Blinkit, Swiggy, Zepto, Dunzo, and Amazon. While it is currently operational in Mumbai, Delhi, Bengaluru and Pune, it plans to expand to more geographies in the coming quarters.

In 2022, it secured its seed funding of $5 Mn from Exponentia Ventures to develop farm to fork infrastructure, customer acquisition and expansion into key metro cities. It also said that parts of the fund would go towards the acquisition of B2B and B2C company Indus Fresh. 

Last year, it acquired DIY meal kit platform KOOK for $1.3 Mn in a combination of cash and equity.

Following this acquisition, it also secured an undisclosed amount of funding from actress Kareena Kapoor Khan and appointed her as brand ambassador. 

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29. Samosa Singh

• Year Of Inception: 2016
• Founders: Nidhi Singh, Shikhar Veer Singh
• Funding Raised To Date: $2.7 Mn
• Investors: Fireside Ventures, AL Trust, AET Fund, She Capital, Equanimity Investments, ANME
• Headquarters: Bengaluru

Food snack brand Samosa Singh sells Indian food snacks such as samosa, kachori, pani puri, and matar kulcha, among others, to its customers via cloud kitchens and kiosks.

It had earlier shared that its manufacturing unit holds the capacity to produce 25K food items daily.

In 2020, the startup secured $2.7 Mn (INR 17 Cr) in a Series A funding round to develop the capacity of its Bengaluru-based central kitchen. The round was led by She Capital.

As of March 2020, it had a presence in over 25 locations in Hyderabad and Bengaluru. It claims to have set up 100 cloud kitchens in prime cities of South India.

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30. Skippi 

• Year Of Inception: 
• Founders: Ravi Kabra, Anuja Kabra
• Funding Raised To Date: $1.3 Mn
• Investors: Venture Catalysts, Hyderabad Angel Network
• Headquarters: Hyderabad

When the husband-wife duo of Ravi and Anuja Kabra returned back to India after a seven-year long stint in Australia, they sat down to start something of their own. While looking for ideas, Ravi remembered that his sister would pack ice popsicles from local Australian brands during her return back to India.

Looking to satiate the Indian craving for ice lollies, the duo founded Skippi in 2021. The D2C startup offers different flavour popsicles, cream rolls and corn sticks via an omnichannel retail business model. 

Skippi founders claim to provide ice popsicles that are 100% natural and free from artificial colours, flavours, and preservatives.

The startup event featured on the first season of the hit TV show Shark Tank and secured a deal from all five judges on the show for INR 1.2 Cr in exchange for a 5% equity.

Also backed by the likes of Venture Catalysts and Hyderabad Angel Network, Skippi has raised around INR 11 Cr in funding since its inception.

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31. Slurrp Farm 

• Year Of Inception: 2016
• Founders: Meghana Narayan, Shauravi Malik
• Funding Raised To Date: $9 Mn
• Investors: Anushka Sharma, Investment Corporation of Dubai, Fireside Ventures
• Headquarters: Delhi

Slurrp Farm is a children-focussed healthy snack brand. It offers a variety of cereals, milk mixes and snacks such as ready-to-mix pancakes, cakes, dosas, noodles and various kinds of pasta. For first-time users, it offers these products in trial packs. 

Slurrp Farm’s parent, Wholsum Foods, sells the products via its website and ecommerce marketplaces. Currently, it has a presence in India, the UAE, the US, and the UK. 

In the financial year 2021-22, it reported over INR 50 Cr annual revenue rate (ARR) and witnessed a 10X growth between June 2020 and December 2021. It further aims to achieve a revenue of INR 500 Cr by 2025.

In April, Bollywood actress Anushka Sharma backed Slurrp Farm. Prior to this deal, the D2C brand raised $7 Mn from the Investment Corporation of Dubai and Fireside Ventures and also bagged $2 Mn in a Series A round from Fireside Ventures.

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32. Storia

• Year Of Inception: 2017
• Founders: Vishal Shah
• Funding Raised To Date: $6 Mn 
• Investors: Sixth Sense Ventures
• Headquarters: Mumbai

Storia offers a range of processed fruit juices, coconut water, and shakes to customers. 

In 2021, it raised $6 Mn in its Series A funding from Sixth Sense Ventures. It currently has a presence in 33 Indian cities via its 50K retail outlets.

At the time of the announcement of its Series A funding round, the startup said it planned to launch new offerings, expand its distribution network and foray into packaged food. 

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33. Sweet Karam Coffee

• Year Of Inception: 2020
• Founders: Anand Bharadwaj, Nalini Parthiban, Srivatsan Sundararaman, Veera Raghavan
• Funding Raised To Date: $1.5 Mn 
• Investors: Fireside Ventures
• Headquarters: Chennai

Sweet Karam Coffee sells South-Indian delicacies, including filter coffee and ready meal mixes, which it claims to be free from palm oil and preservatives. 

On October 30, 2023, the startup announced that it raised $1.5 Mn from Fireside Ventures to expand its offline play, enter new geographies, and strengthen its product portfolio. 

The startup also aims to address the problem of poor availability of well-packaged traditional South Indian sweets and snacks.  

The startup sells its products primarily through its website and app, and claims to deliver them to more than 30 nations. 

The Chennai-based startup has also partnered with Tamil Nadu farmers to offer a range of millet-based products.

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34. TagZ Foods

• Year Of Inception: June 2019
• Founders: Anish Basu Roy, Sagar Bhalotia 
• Funding Raised To Date: $1.5 Mn 
• Investors: 9Unicorns, Umang Bedi, Venture Catalysts, Dexter Angels, Agility Ventures, Arjun Vaidya, Dharamveer Chouhan, Ashneer Grover, Namitha Thapar
• Headquarters: Bengaluru

TagZ makes and sells chips, chocolates, dips and cheese dribbling, among others. It recently also pitched investors on the television show Shark Tank India. 

It also raised money via a consumer stock option plan (CSOP), where it offered equity to customers for investing a minimum of INR 5,000. The CSOP was oversubscribed by 250%. 

Prior to this, it raised an undisclosed amount of investment in its Pre-Series A funding round from Venture Catalysts, Zostel’s Dharamveer Chouhan, The Pant Project’s Dhruv Toshniwal, and Loy Halder from Goldman Sachs, among others. 

In the financial year 2021-22, its revenue stood at INR 15 Cr. The startup claims to have served over 30 Mn consumers and sold more than 50 Mn packets of chips since its inception.  

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35. TenderCuts

• Year Of Inception: 2016
• Founders: Nishanth Chandran
• Funding Raised To Date: $19 Mn
• Investors: Stride Ventures, Paragon Partners, Nabventures 
• Headquarters: Chennai 

D2C brand TenderCuts offers meat and seafood products including chicken, mutton, seafood, marinades, pickles, and eggs and ready-to-cook products such as cold cuts, sausages, kebabs, shawarmas, etc.

In 2021, it secured approximately $4 Mn in a debt funding round from Stride Ventures. Prior to this, it raised $15 Mn from Paragon Partners and Nabventures and closed a seed funding round worth $759K in 2017. 

It follows an omnichannel marketing strategy and has been serving customers across Chennai, Hyderabad and Bangalore via its 50 retail stores. 

In September 2023, the omnichannel meat brand was reported to be planning the acquisition of TenderCuts along with Happy Chops. 

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36. The Divine Foods 

• Year Of Inception: 2019 
• Founders: Kiru Maikkapillai
• Funding Raised To Date: Undisclosed 
• Investors: Nayanthara, Vignesh Shivan
• Headquarters: Chennai

The Divine Foods is a D2C foodtech startup that specialises in manufacturing products from traditional Indian superfoods such as turmeric, moringa, millet, and others. 

Its portfolio includes products such as turmeric oil, turmeric golden milk, masks, turmeric drinks, turmeric powder, honey, among others. 

Under the flagship seed funding scheme of the Tamil Nadu government called TANSEED 4.0, the startup received a grant of an undisclosed amount. 

Last year, the startup secured an undisclosed amount of funding from actress Nayanthara and her husband Vignesh Shivan. Back then, founder Maikkapillai told Inc42 that the funding would be used for scaling up the infrastructure, expanding the startup’s product line, creating brand awareness among the masses and encouraging other celebrities to support the growth of native businesses. 

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37. The Filling Station

• Year Of Inception: 2021
• Founders: Mahua Ghosh, Suvankar Ghosh
• Funding Raised To Date: Undisclosed 
• Investors: NA (Not Available)
• Headquarters: Mumbai 

Healthy food snack startup The Filling Station sells nutrient-rich laddoos, oil-free snacks, and nutrient-rich spreads, among others, via its website and ecommerce marketplaces such as Amazon and Flipkart.

In snacks, it uses ingredients such as palm, oats, makhana, seeds, nuts, and date fruit. Its cofounder Mahua Ghosh holds 11 years of experience in the food industry. She has previously worked with many fast food joints, cloud kitchens and retail brands. The venture is recognised by the Centre’s Startup India Initiative, according to the website.

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38. The Good Bug

• Year Of Inception: 2022
• Founders: Keshav Biyani, Prabhu Karthikeyan
• Funding Raised To Date: $3.5 Mn
• Investors: Fireside Ventures
• Headquarters: Mumbai

The Mumbai-based startup, The Good Bugs, offers a range of products that are designed to promote and maintain gut health for consumers. Its primary focus lies in addressing the health concerns of individuals aged 25-60 who may be grappling with the negative consequences of unhealthy dietary and lifestyle choices.

Currently, the startup operates as an omnichannel brand, with approximately 70% of its revenue coming from its website and the remaining 30% from various online marketplaces. Notably, the startup has recently initiated partnerships with pharmacies to expand its offline presence.

Since its inception, the brand claims to have catered to over 2 Lakh customers. It also proclaims to have strong repeat rates of 40-45%. To expand its product offerings, the startup is planning to introduce 20 new products to its portfolio over the next six to twelve months.

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39. The Whole Truth

• Year Of Inception: 2019
• Founders:  Shashank Mehta
• Funding Raised To Date: $21 Mn
• Investors: Sequoia Capital India, Matrix Partners India, Sauce.vc, Kalyan Krishnamurthy, Sujeet Kumar, Ashneer Grover, Shashvat Nakrani
• Headquarters: Mumbai 

The Whole Truth sells dark chocolate, muesli, protein bars, nut butter and energy bars via its website and other ecommerce marketplaces.

In July, the D2C snack brand secured $6 Mn in its Series A funding round from Sequoia Capital India, Matrix Partners India, Sauce.vc, Flipkart’s Kalyan Krishnamurthy, Udaan’s Sujeet Kumar, Ashneer Grover and Shashvat Nakrani.

The startup had then claimed that it had grown 12x in the last 18 months. Besides, The Whole Truth said it receives 50% of its sales via its website and the rest from ecommerce marketplaces. 

This year, the startup secured $15 Mn to boost its manufacturing capacity, hire talent, and expand its retail distribution. 

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40. Troo Good

• Year Of Inception: 2018
• Founders: Raju Bhupati 
• Funding Raised To Date: $7.4 Mn 
• Investors: OAKS Asset Management
• Headquarters: Hyderabad

Troo Good offers a slew of millet, peanut, chocolate, and dry fruit snack bars and mixtures. In the year of its inception, it clocked a revenue of INR 12 Cr, while in 2019, it posted a revenue of INR 24 Cr. The startup claims that it is currently profitable before tax. 

In November 2021, Troo Good secured $7.4 Mn from OAKS Asset Management to expand its business in the domestic market.

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41. True Elements 

• Founded In: 2013 
• Founders: Puru Gupta and Sreejith Moolayil
• Funding Raised To Date: $2 Mn
• Investors: Marico, Maharashtra State Social Venture Fund
• Headquarters: Bengaluru 

True Elements offers millet, grains, and seeds-based breakfast and snack foods. It follows an omnichannel marketing strategy, selling products via its website, ecommerce marketplaces and brick-and-mortar stores. 

In May, consumer company Marico acquired a 53.98% stake in True Elements’ parent HW Wellness Solutions for an undisclosed sum. Prior to this, True Elements secured INR 10 Cr from the Maharashtra State Social Venture Fund last year. 

In the financial year 2021-22, it recorded sales of over INR 54.3 Cr as compared to INR 36.3 Cr in the previous fiscal year. 

Currently, it sells over 70 products and more than 200 stock-keeping units (SKUs) across 12,000 retail outlets in India. It claims to earn over 75% of its revenue from online distribution channels.

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42. Twigly

• Year Of Inception: 2015
• Founders: Sonal Minhas, Rohan Dayal, Naresh Kumar Kachhi
• Funding Raised To Date: $800K 
• Investors: Tracxn Labs, Hyderabad Angels, Kunal Shah, Aditya Verma, Gaurav Bhalotia, Amit Gupta, Sahil Barua, Mukul Singhal 
• Headquarters: Gurugram 

Twigly provides freshly cooked food at consumers’ doorstep via its website and mobile app. It currently delivers orders in Delhi NCR. Some of its products are burgers, pasta, grill platters, desserts, and various types of beverages. 

According to its founders, the startup is modelled on San Francisco-based food delivery startup Sprig, which used to offer freshly cooked meals to its consumers. The startup closed down its operations in 2017. 

In September 2018, Twigly was acquired by its competitor for an undisclosed amount.

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43. Vahdam India

• Year Of Inception: 2015
• Founders: Bala Sarda
• Funding Raised To Date: $62.3 Mn
• Investors: Sixth Sense Ventures, IIFL Asset Management, Mankind Group Family Office, SAR Group Family Office, Kris Gopalakrishnan, White Whale Ventures, Urmin Group
• Headquarters: New Delhi 

Vahdam offers an assorted range of teas, including herbal, white, oolong and iced teas, among others in India and across the world. Its other offerings include teaware and instant lattes.  

In September 2021, the startup secured INR 174 Cr in its Series D Round led by IIFL AMC’s Private Equity Fund. Post the fundraising, it was valued at INR 700 Cr. 

Presently, the startup claims that it has a presence in more than 100 countries and also turned profitable in the fiscal year 2021 after clocking a net revenue of INR 160 Cr+.

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44. Wellbeing Nutrition

• Year Of Inception: 2019
• Founders: Avnish Chhabria, Saurabh Kapoor 
• Funding Raised To Date: $10.7 Mn
• Investors: Rakulpreet Singh, Mira Kapoor, Fireside Ventures, HUL, etc.
• Headquarters: Mumbai

Founded in 2019, Wellbeing Nutrition is a direct-to-consumer (D2C) nutraceutical company based in Mumbai. Cofounded by Avnish Chhabria and Saurabh Kapoor, the startup specialises in offering healthy food products with a primary focus on women’s health.

Its product portfolio includes Melts, which are vitamin-based thin strips, Korean Marine for collagen, and Daily Fiber for plant-based prebiotic fibre.

In December 2022, Wellbeing Nutrition secured $10 Mn (INR 85 Cr) in its Series B funding round led by Hindustan Unilever Limited (HUL) and Fireside Ventures. HUL currently holds a 19.8% stake in the startup.

The company’s list of investors includes Bollywood actor Rakulpreet Singh, Mira Kapoor; Ashutosh Valani and Priyank Shah from RENEE Cosmetics, Nikhil Gandhi from MX Player, Harsh Vardhan Bhandari and Jeenendra Bhandari, among others.

Wellbeing Nutrition operates in the D2C segment and faces competition from brands such as Power Gummies and Fast&Up.

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45. WickedGud

• Year Of Inception: 2021
• Founders: Bhuman Dani, Soumalya Biswas, Monish Debnath 
• Funding Raised To Date: $1.34 Mn
• Investors: Mumbai Angels, NB Ventures, Dholakia Ventures, Jalaj Dani Family Office, Ashutosh Valani, Priyank Shah, Ravi Shroff, Ravi Nigam, Ashwini Deshpande, Jorge Fernandez Vidal, Akshay Gurnani, Titan Capital, Archana Priyadarshini, Gaurav Ahuja, Amit Chaudhary, Aman Gupta, Sameer Mehta, Harsh Vakharia, Jorge Fernandez Vidal
• Headquarters: Mumbai 

WickedGud sells pasta, noodles, malted beverages and other snacks via its website and ecommerce marketplaces. According to its website, its products are wholly vegan and contain plant-based protein. 

In April last year, WickedGud secured $1 Mn from Mumbai Angels, NB Ventures, Dholakia Ventures, Jalaj Dani Family Office, Ashutosh Valani and Priyank Shah from Renee Cosmetics, Ravi Shroff from Excel Industries, Ravi Nigam from Tasty Bite, Ashwini Deshpande from Elephant Design, among others. 

Prior to this, it secured $340K in its pre-seed funding round from Titan Capital, Archana Priyadarshini from Point One Capital, Gaurav Ahuja from Chrys Capital, and Amit Chaudhary from Lenskart, among others. 

The startup targets customers aged 26 to 42 and claims to have an average order value of INR 450.

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46. Wingreens Farms 

• Year Of Inception: 2011
• Founders: Anju Srivastava, Arun Srivastava
• Funding Raised To Date: $59.8 Mn
• Investors: Sequoia Capital, Investments AG, Investcorp, Omidyar Network
• Headquarters: Gurugram

The startup offers a diverse range of packaged food products spanning various categories such as healthy snacks, sauces, spreads, spice mixes, specialty bakery items, breakfast cereals, non-dairy milk, protein shakes, and a broad selection of organic products.

It faces competition from brands like Veeba Foods, while in the established FMCG brands segment, it competes with well-known names such as Nestle and Amul.

In 2022, the startup acquired a 100% stake in the Bengaluru-based snacks startup, Postcard. At the time, the startup stated that the acquisition would contribute to the expansion of its product portfolio under the ‘Wingreens World’ category. 

In an earlier acquisition in 2021, the startup acquired Raw Pressery during a distressed sale. The acquisition aimed to broaden its product portfolio and venture into the cold-pressed juices segment.

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Last updated: October 2, 2024 | The article has been updated to include three more names.

The post From Slurrp Farm To Paper Boat: Here Are 46 F&B D2C Brands Reshaping The Indian Consumer Market appeared first on Inc42 Media.

Earlier today, fintech unicorn BharatPe claimed to have settled its two-year long legal dispute with former MD and cofounder Ashneer Grover. The company said Grover will no longer be associated with the company, and also added that Grover will not hold any shareholding in the company.

But there are a number of questions that have come up despite these claims by the company.

Before we get to those, it’s worth noting that shares belonging to Grover shall be partly transferred to the Resilient Growth Trust operated by the company, and partly to Grover’s family trust.

In response to the settlement, Grover released a media statement, and said, “I repose my faith in the management and board, who are doing great work in taking BharatPe forward in the right direction. I continue to remain aligned with the company’s growth and success.”

So, after two years of bad blood, public mudslinging, court battles and other dramatic claims, Grover and BharatPe seem to have come to a settlement at a curious time. For anyone who has followed the BharatPe and Grover saga from early 2022, these statements are not only surprising, but raise plenty of questions.

As for the family trust that will take charge of certain shares held by Ashneer Grover, this will be in the names of the Ashneer and Madhuri’s children and will not involve the duo.

The trust will be managed by a mutually-decided independent advisor, sources told Inc42. We do not know exactly how much equity will reside with this family trust.

But why exactly has this settlement come now? And when we consider the volley of allegations and accusations over the past two years, this settlement raises more questions than it answers.

BharatPe Vs Ashneer Grover: A Short Timeline

Before we delve deeper, here’s a timeline of the various cases involving BharatPe and Ashneer Grover:

• In January 2023, BharatPe filed a civil suit at the Delhi High Court against Ashneer Grover and his family members for alleged embezzlement of funds, and sought up to INR 88.67 Cr in damages.
• Then in May 2023,  the Economic Offences Wing (EOW) of the Delhi Police registered an FIR in a criminal cases alleging fraud to the tune of INR 81 Cr
• In addition, Ashneer Grover is facing lawsuits from BharatPe cofounders Bhavik Koladiya and Shashvat Nakrani, both of whom are looking to retrieve their shares in the company, that are said to be held by Grover

These are three separate matters and the settlement announced by BharatPe only pertains to the civil case mentioned above, at least for now. But that could soon change.

While the civil suit is now formally settled, incidentally, the EOW investigation has progressed significantly in recent weeks with two arrests.

The most recent arrest was Deepak Gupta, a relative of Ashneer and his wife Madhuri Jain Grover, who has been in custody for nearly two weeks and was supposed to appear in court on Monday, September 30 for a hearing.

Sources close to BharatPe claim that the agency was close to arresting Madhuri Jain Grover, who is the prime accused in the EOW case. But now that there is a settlement in the civil suit, it’s very likely that the criminal matter will also be resolved without any more arrests, sources added.

One might ask why a settlement in a civil case is material for the criminal case, but there are provisions in the Code of Criminal Procedure of the Indian Penal Code to allow such settlements even in criminal cases.

In legal speak, an out-of-court settlement in criminal cases is called compounding of offence, and such compounding can occur without permission of the courts in certain cases. However, the court’s permission is needed for compounding of offences under Sections 406, 408, 409, 420, 467, 120B and 201 of the Indian Penal Code.

These are the sections pertaining to criminal breach of trust, cheating and forgery, and the primary sections in the chargesheet filed by the EOW in the alleged fraud case filed by BharatPe against Madhuri Jain Grover, Ashneer and others in their family.

One must also understand the reasoning of the law. Compounding of criminal cases is only allowed when there is an individual victim involved and there is no harm to the public at large.

We do not yet know what view the court will take on the compounding. However, sources close to the company told Inc42 that if the Grovers appeal to the court to quash the EOW FIR, BharatPe will not object. Essentially, this means that the Grovers could soon be completely free of all issues related to BharatPe.

Will The EOW Case Be Dropped? 

Inc42 contacted Ashneer Grover, BharatPe and Rajnish Kumar for their comments on the matter. BharatPe pointed to its statement on the settlement and did not offer any further clarification on why this settlement was reached at this point in time.

Rajnish Kumar did not respond to Inc42’s phone calls or text messages about the allegations raised by Ashneer Grover and why the board decided to settle the matter.

In response to a series of questions on the settlement, Ashneer Grover said, “Sir – I have nothing to share with you. Other that [sic] I am in London with my wife for a week and will be attending Diljit’s concert (yay ! Got the passes). All of us are bound by confidentiality.”

Grover and his wife Madhuri Jain Grover were allowed to travel to the UK by the Delhi High Court on the condition that the duo submit original share certificates and original title deeds of their properties. The permit is from September 28 – October 7, 2024, so the Grovers will likely be back in India next week.

In the meanwhile, what remains to be seen is how the EOW criminal case will play out. The final verdict in this matter is very likely to come next week, when the Grovers return to India after their court-mandated deadline.

Another Corporate Governance Lapse? 

The settlement is good news for BharatPe, which was stuck in an untenable position in light of multiple legal battles and was carrying the baggage of the former cofounder’s alleged actions for the past two years.

As the company stated, its focus now is on going towards profitability. BharatPe launched a B2C fintech super app recently, and it will undoubtedly look to acquire new users en masse now that it has seemingly moved on from the Ashneer Grover saga.

But there are quite a few concerns raised by others in the startup ecosystem. Many are asking, for example, whether a founder can simply defraud a company as BharatPe had alleged, and in return relinquish their equity to settle the matter.

“Ashneer has given up his equity here so the company does benefit from this to a certain extent, but there is an on-paper cash loss of INR 80 Cr-odd and reputation damage that cannot be fixed with a settlement. If anything, this raises even more questions about whether BharatPe did the right thing by settling this issue,” according to a Delhi-based corporate law practitioner.

How much equity did Ashneer Grover let go of? According to those close to the company, Grover held 8.5% stake in the company, whereas his family trust will now only have 4% stake.

This could further reduce if Grover settles his case with Bhavik Koladiya, another cofounder of BharatPe, who has claimed that his shares were being held by Grover but have not been transferred back.

All in all, given BharatPe’s valuation of $2.7 Bn, the company managed to claw back close to $108 Mn in equity value, which is significantly more than the INR 82 Cr ($10 Mn) loss caused by the alleged fraud. Sources claim that even if the company’s valuation falls in the future, the company has more than recouped its losses.

However, the lawyer quoted above questioned whether the board is doing the right thing for BharatPe in the long run. “This affects the reputation of those on the board and it’s not just about recouping losses. The likes of Rajnish Kumar and others on the BharatPe board were accused by Ashneer Grover of conducting business improperly. So we have to ask whether the board has something to hide by letting this go?”

Incidentally, Ashneer Grover had made allegations against BharatPe chairman and former SBI chairman Rajnish Kumar in a letter addressed to the Reserve Bank of India (RBI) earlier this year. Grover claimed Kumar allocated equity shares worth hundreds of crores to himself after joining the board.

He also alleged that Kumar drew a salary of INR 1.5 Cr per year, 3X higher than the amount he was being paid when he joined the BharatPe board in October 2021.

So what happens to all these allegations? Do they simply vanish with the settlement, many are asking.  “This means I can simply relinquish my shares and repay a company with equity after committing fraud and embezzling money. Not sure this is what we want founders to learn from the BharatPe case, especially after two years of course correction on the corporate governance front,” says a veteran investor.

The end of BharatPe’s fight with Ashneer Grover shows that corporate governance is a tricky subject to navigate for startups and their boards.

Two years ago, the company was blamed for lapses not only in relation to onboarding of non-existing vendors but also allowing key personnel to operate without enough checks and balances. And now, corporate governance questions are being raised around BharatPe arguably setting the wrong example for startups dealing with cases of fraud. So the question we are left with is: was this a settlement or a compromise?

The post BharatPe Vs Ashneer Grover: A Settlement Or Compromise? appeared first on Inc42 Media.

Despite Bengaluru being the startup capital of India, Delhi NCR leads the ‘Silicon Valley’ of India, Bengaluru, with a very comfortable margin in the startup IPO race. 

According to Inc42’s ‘The State Of Indian Startup Ecosystem Report 2024‘, 15 new-age tech companies from the national capital region are listed on the stock exchanges. Delhi NCR-based companies account for 43% of the 35 such listed companies under Inc42’s coverage.

Delhi NCR-based listed startups include fintech major Paytm, logistics unicorn Delhivery, foodtech giant Zomato, Mamaearth parent Honasa Consumer, among others. In comparison, only three Bengaluru-based startups have been able to go public so far – electric vehicle (EV) manufacturer Ola Electric, market intelligence platform Tracxn, and Nasdaq-listed Zoomcar.

Interestingly, the country’s financial capital is also ahead of Bengaluru in the startup IPO race. Seven Mumbai-based startups have gone public so far, including coworking space provider Awfis, insurtech startup Go Digit, beauty ecommerce major Nykaa, gaming major Nazara Technologies, fintech Fino Payments Bank, and hyperlocal search engine provider Justdial.

Like Bengaluru, Pune has also seen three startup listings. While Chennai and Ahmedabad are home to two listed startups each, Mohali, Hyderabad and Jaipur have seen one startup each make it to the bourses so far.

How Delhi Forged Ahead 

Delhi NCR leads in the startup IPO race despite not being the leader in terms of number of registered startups in the country. As per government data, there were 1,40,803 startups registered with the department for promotion of industry and internal trade (DPIIT) as of June 30, 2024.

Maharashtra led the list with 25,044 startups, followed by Karnataka with 15,019 startups. While national capital Delhi was home to 14,734 startups, Uttar Pradesh and Gujarat were home to 13,299 and 11,436 startups, respectively. 

It is also pertinent to mention that Bengaluru continues to lead in terms of startup funding trends. Indian startups raised $151 Bn across 10,500 deals between 2014 and H1 2024. Of these, Bengaluru-based startups bagged the highest capital at over $70 Bn.

In comparison, startups in Delhi NCR raised $44 Bn during the period, followed by Mumbai-based startups at $20 Bn.

So, how did Delhi NCR surged ahead in terms of IPOs? According to 100X.VC founder Shashank Randev, there are three key factors behind this – access to more land, more B2G (business-to-government) opportunities due to closeness to the central government geographically, and access to talent. 

“Mumbai and Bengaluru are more congested geographically and the ecosystem often gets siloed in one pocket of the city. In NCR, you get chances to set up spaces in Delhi, Gurugram, and Noida without connectivity being an issue. Besides, the startup hub is also better connected to the political ecosystem and is not too far away from the financial capital of India, Mumbai. Hence, there is access to all sorts of resources in the city,” Randev said. 

He added that while Bengaluru-based startups have better access to talent, the influx of tech talent is on the rise in Delhi NCR given the national capital region’s potential to expand geographically and offer more opportunities.

Concurring with this, Auxano Capital partner Brijesh Damodaran said, “This is driven by the interplay of several factors – namely market maturity (Delhi had 36 IPOs in last four years, second only to Mumbai with 50 IPOs), government support due to close proximity and diverse industry representation, coupled with presence of major educational institutions providing skilled human capital and also the entrepreneurial bug.” 

Zomato – The Most Valued Startup 

The 35 listed new-age tech companies had a total market capitalisation of over $112 Bn as on September 2. Of this, Delhi NCR based startups accounted for 71.4% of the cumulative market cap. 

Meanwhile, Mumbai and Bengaluru startups accounted for 14.2% and 6.2% share in market cap, respectively. 

From an individual lens, foodtech major Zomato is the most valued startup. As of September 2, Zomato’s market cap stood at $27 Bn mark. Later in the month, its market cap crossed the $30 Bn mark.

Meanwhile, one of the oldest Indian internet companies Info Edge is the second most valued company with a market cap of over $12 Bn. Trailing it is MakeMyTrip and Policybazaar parent PB Fintech, with their market caps sitting at around $11 Bn and $10 Bn, respectively. Notably, all of the aforementioned companies call Delhi NCR their home. 

The Way Ahead For Startup IPOs

Amid the ongoing IPO boom, as many as 10 new-age tech startups listed on the bourses in 2024 so far. With a plethora of startups looking to make their public debuts soon, Delhi NCR is expected to retain its lead in terms of startup IPOs.

The following startups have received SEBI nod for their IPOs or are awaiting the market regulator’s approval to go ahead with their public listing plans:

• Bengaluru-based EV maker Ather Energy 
• Bengaluru-based logistics major BlackBuck 
• Delhi NCR-based fintech unicorn MobiKwik 
• Bengaluru-based foodtech major Swiggy 
• Delhi NCR-based logistics startup Ecom Express 
• Mumbai-based B2B ecommerce platform ArisInfra 
• Delhi NCR-based coworking solutions provider Smartworks 
• Delhi NCR-based D2C meat startup Zappfresh 

Besides, a host of other startups, including Zepto, Shadowfax, IndiQube, Pure EV, Physics Wallah, have public listings on the cards in the near future. As such, the IPO run of the startups is expected to continue next year as well, with Delhi NCR likely to continue to be in the pole position.

“The top cities of Delhi, Mumbai and Bengaluru will continue to hold their position as more startups look to list on the bourses. With startup investing becoming more democratised and gaining traction across cities, there is more scope of startups from these cities as well in the coming decade. Irrespective of which city the company is based in, the ecosystem should grow. Moreover, with the continued reception for SME IPOs, enterprises across the board can look to raise via public markets,” Auxano Capital’s Damodaran said. 

The post How Delhi NCR Outpaced Bengaluru, Mumbai In The Startup IPO Race appeared first on Inc42 Media.

A few weeks ago, we asked whether Zomato overpaid for Paytm Insider and the ticketing business in the INR 2,048 Cr deal. Since then, we may have seen the first signs of why the acquisition was such a big deal, and why Zomato is looking to take on BookMyShow.

First, Zomato was in the spotlight for Diljit Dosanjh’s ‘Dil-luminati Tour – India’, which was sold out in a matter of minutes, resulting in the tickets being resold on scalping websites. This was followed by Zomato’s only major rival in the ticketing space now, BookMyShow coming under fire for a similar incident involving ‘Coldplay: Music Of The Spheres World Tour’.

Thanks to these incidents, the online ticketing space is getting unprecedented attention from all corners. Many blame BookMyShow and Zomato for not conducting sales in a more transparent manner, and now there’s a legal mess that both companies have to wade through.

Is this a new dawn in the Indian live events space? Let’s find out, but first, a look at the top stories from our newsroom this month.

• Swiggy On The IPO Trail: As the food delivery and quick commerce giant lines up for its massive IPO, here’s a look at who holds the cards and the equity to get big returns come the public listing
• The End Of WazirX: WazirX’s $234 Mn crypto heist has unveiled serious security flaws and mismanagement, with several burning questions over founder Nischal Shetty’s role and the platform’s future. Here’s our deep-dive into how the hack happened and what it means
• The Domestic Capital Push: As Indian startups stand at the cusp of another pivotal moment after the past decade of growth, domestic capital will have a big role to play in the next phase. Here’s why India needs more domestic funds
• Quick Fashion: Blinkit, Zepto and Instamart have changed grocery ecommerce in India forever, and now Bengaluru-based Slikk believes it can bring the same magic to the fashion category with a quick commerce platform. Will this new model take off?

Gold Rush For BookMyShow, Zomato

It’s important to understand the sequence of events before we look at how Zomato and BookMyShow could tackle the rush for live events going forward.

On September 24, two days after tickets for the Coldplay concerts went live on BookMyShow, the platform filed a police complaint about unauthorised resale of tickets or scalping for its exclusive concert. Reliance-backed BookMyShow clarified that it had no affiliations with ticket reselling platforms such as Viagogo, Gigsberg, or any other third-party individuals involved in the unauthorised sale of Coldplay concert tickets.

The Mumbai-based company was looking to dodge allegations of fixing the sale of tickets such that scalpers would benefit. However, those in the industry believe this is a far-fetched notion. “No one benefits from scalping. Not the government nor the platforms nor the actual buyer. This is only great for those who are looking to make a quick buck and this is thoroughly banned in India, unlike in the US, where scalping is allowed with certain limits,” according to one of our sources in the industry.

For instance, in the US, many venues enforce private property rules to clamp down on scalping in the vicinity of the concert, but nothing stops anyone from reselling online.

On its part, BookMyShow condemned scalping and emphasised that such activities are punishable under Indian law, and it also pledged to cooperate with authorities in any investigation related to scalping of the Coldplay tickets.

For many of those who were in the waitlist for the Coldplay concerts, it was a double blow. Just a few days before BookMyShow, a similar rush was seen on Zomato. Tickets for the Dil-Luminati tour had sold out in a short time but were later spotted on secondary platforms at inflated prices.

Originally, the tickets were priced from INR 12,999; however, they were listed on Viagogo for as much as INR 53,000 or 4X the original price. In some cases, tickets for both these shows were being sold for over INR 3 Lakh.

Zomato issued a formal notice to Viagogo for selling tickets without authorisation, and the company filed multiple cyber crime complaints against other scalping or secondary sales sites, as per sources.

In both cases, the sudden rush for tickets seemingly overwhelmed the platforms, causing them to crash temporarily, leading to more public outcry, as even those ahead in the waitlist could not get the tickets.

In wake of the controversy, the Economic Offences Wing (EOW) of the Mumbai Police has summoned BookMyShow’s parent entity Big Tree Entertainment’s CEO Ashish Hemrajani and the company’s technical head for questioning.

The summons was issued after a complaint was filed by lawyer Amit Vyas, who alleged that BookMyShow enabled scalping and secondary sale of tickets, while deceiving the public.

What makes this worse is that reports indicate that tickets began appearing on third-party sites even before the official sale had gone live, which not only shows a lapse in the distribution process but also gives credence to the possibility that many of these scalpers were running scams. In fact, BookMyShow clearly warned users of scams being run in the name of tickets for the Coldplay show. 

Scalpers Make Bank

“Some artists definitely generate this kind of frenzy. If you remember, Coldplay’s previous concert in Mumbai in 2016 also faced similar issues, where tickets, originally priced between INR 5,000 to INR 20,000, were resold at exorbitant rates, Scalpers are getting smarter and deploying bots to buy large batches of tickets in seconds,” said an industry insider and former CXO of an events and movie ticketing platform.

Whether it is Ed Sheeran’s Divide Tour or Justin Bieber or other electronic dance music (EDM) artists, this is a consistent trend in India. A large reason for this is that India does not have any permanent venues for concerts. In India, cricket stadiums are typically repurposed for concerts and that makes it much harder to get a proper idea of the demand.

In many cases, organisers have multiple plans ready to accommodate the demand. “They can reduce the size of the venue for the audience and put more focus on the stage, or they can reduce the stage and add more people into the venue. It would be better managed and there would be better visibility for the demand if we had permanent concert venues,” the former CXO added.

There could be other tech-led solutions to stop scalping. For instance, one could monitor IP addresses and restrict sales if there is a big spike from a cluster of related IP addresses, but this is a technical problem in India where most ISPs route traffic through hubs such as Pune or Gurugram.

Another option is linking sales to mobile numbers and permitting only those with the right ID card to enter the venue. But this is a logistical nightmare given just how difficult it would be to manage thousands of ID checks at the gate.

Having non-transferable tickets is also not an ideal solution. One source close to the Zomato Live operations told us, “How do you ensure that those buying tickets actually show up to the concert? We don’t want a situation where tickets cannot be transferred and very few people show up for the concert.”

Can BookMyShow, Zomato Fight Back?

So what can platforms do? For one, Paytm Insider let users transfer their ticket to another individual free of charge. But this does not completely stop scalping.

Zomato is trying something similar with its ‘Book Now, Sell Anytime’ feature, which lets users list their tickets on the app for sale for a price lower or higher than their original purchase price. The platform is set to go live on its app from September 30, starting with the ‘Zomato Feeding India Concert’ featuring Dua Lipa.

Incidentally, Lipa’s concert was also criticised for not being an open process, providing early access to some credit card holders. Do such deals make it seem like platforms are acting out of bad faith?

“We cannot completely stop tie-ups with financial partners because they are making it easier for many users to actually attend these concerts. One of the secular trends driving the rise of live events is the easier access to short-term credit through BNPL and similar options,” added the Zomato Live insider quoted above.

The other major trend is that live events and experiences have roared back after the pandemic which has certainly given BookMyShow and now Zomato a major boost. Similar to the travel sector, Indians are willing to go the extra mile to get a taste of these experiences that were out of reach for three to four years.

Plus, it’s no longer enough for people to aspire to attend a Coldplay show, but the fact is that a lot of online ‘clout’ is built around being seen at these concerts and events. Social media credentials and conversations are built around these experiences and younger Indians are certainly not going to miss out on the opportunity.

Both BookMyShow and Zomato indicated that they were exploring solutions to stop scalping, but this may not be easy as we have highlighted above. “We implemented a queueing system to manage the overwhelming demand and addressed issues caused by suspicious and malicious traffic within minutes, causing a brief delay, but ensuring minimal disruption for genuine fans. Due to the unprecedented demand, a third Mumbai show was added shortly thereafter, which also received a fantastic response,” a BMS spokesperson told Inc42.

India Shows Its Appetite

But a cursory search for scalping and TicketMaster (US-based ticketing giant) would make it plain as day — this problem has not been solved even by those who have experienced it for decades. BookMyShow added a third Coldplay show in India to appease fans, but tickets for those too were sold out in a matter of minutes.

Speaking of Coldplay’s third concert, another industry insider, said this is a game-changing moment for Indian events. We talk about premiumisation as a trend in the D2C category, and that’s pretty much true for live events too.  “I can’t remember the last international artist who did more than one show here. Covid has been an insane trigger, and the numbers have exploded. This is why we are seeing this frenzy today. It’s not about the concert, it’s about status signalling, it’s about the aspirational nature of the Indian consumer.”

And there’s also a silver lining here. Those in the industry say this gold rush pretty much puts India on the global live events map, if that wasn’t the case before. So for those who didn’t grab that Diljit or Coldplay ticket, there’s a lot more to come.

The Best Of MoneyX By Inc42

• What compelled Sanjeev Bikhchandani to take a big bet on Zomato. The Info Edge founder spills the beans
• Can the Indian EV revolution catch up to China’s hot pace? Not for at least 20 years, believe some of the key investors in the EV space
• Peak XV’s Mohit Bhatnagar believes it’s time to retire the current valuation-centric definition of unicorn. Here’s what he wants instead
• The quick commerce boom will fuel new models built around granular customer and brand data, believes All In Capital’s Aditya Singh. Here’s how
• As family offices become a prominent feature of the Indian investor ecosystem, there’s a need to rethink how they are managed, says Jai Rupani of the Dinesh Hinduja Family Office. Here’s how

Sunday Roundup: Tech Stocks, Startup Funding & More

• Startup Funding Is Back: Indian startup funding is showing signs of a major recovery with the total funding raised this year now crossing $9 Bn, thanks to this week’s tally of $432 Mn
• The BYJU’S Mess: In a fresh blow to BYJU’S, the SC told the insolvency resolution professional to hold off on further meetings with the committee of creditors amid fresh challenges by US lenders
• Zoho’s India Focus: US was a key pillar of growth for Zoho thus far, but the SaaS giant is now keenly focussed on boosting its India revenue through investments in R&D, says CEO Sridhar Vembu

• EMT’s New Deal: Easemytrip CEO Nishant Pitti offloaded half of his stake in the company this past week, just before the company signed a deal with PhonePe to list hotels on the fintech super app
• DotPe’s Faux Pas: Gurugram-based payments and commerce platform DotPe found itself in choppy waters over lax cybersecurity guardrails that led to leaks related to restaurants and user data

The post BookMyShow, Zomato And India’s Concert Mania appeared first on Inc42 Media.

India’s startup ecosystem has seen over $150 Bn in funding in the past decade. That is a phenomenal number by itself, and it’s something a lot of the ecosystem stakeholders seem to forget when talking about why India is such a major destination for tech investors.

But it perhaps might not surprise anyone to know that almost 90% of this funding has come from overseas investors — sovereign wealth funds, large private equity players, crossover funds and venture capital giants that began their journey in Silicon Valley.

As the Indian market matured and evolved, an infrastructural substrate was formed that has become the bedrock for the Indian startup story. So far, the story has been about finding the customers and the consumers. Over the past 10 years, startups have gone from novelty to must-haves in many cases. And that has led to this moment in time — where the maturity and the patience of the past decade are translating into profits, consistent revenue growth, clarity on monetisation and exits.

In fact, the experience of the past two years has also put to rest some of the grave concerns around FOMO investing, spray-and-pray approach and governance lapses. The value erosion seen in the past year is being called a blessing in disguise.

So naturally, many VCs and investors believe that now is the time for domestic wealth to capitalise on this maturity. It’s by no means a new call-to-action.

Domestic Funds Stepping Up

When we launched MoneyX last year, this was a trend just about to start bubbling. But now, 14 months later, as we sit on the cusp of another edition of MoneyX, there’s little doubt that many Indian HNIs, family offices and institutional funds are finally alive to the startup opportunity.

The Department for Promotion of Industry and Internal Trade (DPIIT) currently houses more than 1.5 lakh startups, up from a few thousand startups just a decade ago, which also highlights the pipeline of entrepreneurial activity in the country. And many of these entrepreneurs are now turning to solve problems that are closer to Indian investors than global funds.

These founders — from Tier 2 and 3 towns — are turning to HNIs and family offices led by small and large industrialists and entrepreneurs for funds.

This trend has already played out in other geographies, where startups have dominated the tech discourse. When we look at the United States or China, tech giants in these countries built their foundations on a strong base of domestic capital.

“Take Apple, for instance, where Sequoia Capital was an early backer. The very same Sequoia came into India in the mid-2000s and created a massive portfolio of Indian startups. But now the times are changing, which is why they are sharper on the India thesis and have created an India-specific identity with Peak XV,” a general partner at SEBI-registered alternative investment fund told Inc42.

The GP added that there is a clear need for a domestic base of investors because we are no longer in the moment where Indian startups need the deep pockets of foreign funds for customer acquisition. Many of these playbooks that have been fuelled by foreign capital are now mature enough to be used without the need for that massive capital infusion.

“Of course, there are unicorns like Zepto or Rapido which have courted US-based funds in 2024, but by and large, the needs of the early-stage and growth-stage market are being funded by domestic investors. Even large pre-IPO rounds such as Swiggy’s are seeing a lot of Indian HNIs which will have a halo effect on the market,” the same partner added.

Startup IPO Boom Attracts Domestic Investors

Indeed, one cannot understate the significance of IPOs and the public markets in swaying the domestic LPs and investor base towards the startup ecosystem. In particular, the massive gains for stocks such as Zomato, TBO Tek, Policybazaar, Honasa, RateGain, Awfis, Zaggle and others highlight the variety in the size and scale of companies that have listed and made gains.

It also shows that it’s not just about the large brand names but also smaller IPOs which are showing promise. No surprise then that there is a queue of celebrities and HNIs backing Swiggy in its pre-IPO rounds at the moment.

For domestic HNIs and family office investors, who are more habituated to the dynamics of public markets, IPO-led exits and the promise of large IPOs mark a significant turnaround point. Exits create a virtuous cycle where each wave of successful listing brings in gains that help fund emerging startups.

A new wave of domestic investors is great, but a revival in overall startup funding will truly crown this moment. According to WaterBridge Ventures founder and managing partner Manish Kheterpal, Despite the rise in funding raised by India-focussed funds over the last few years, domestic capital accounts for around 15% of all funding for Indian startups.

He added that today, family offices and their investment managers have plenty of options and they can diversify their investments based on their liquidity needs. “From a point of view of financial risk diversification, family offices have access to experienced fund managers that have a good track record in India. On the other hand, those with higher risk appetite can go for direct investing and more granularly control their exposure,” Kheterpal said.

Government policy has looked to encourage more domestic investments in the venture capital and startup ecosystem. The INR 10K Cr SIDBI Fund of Funds is the biggest signal. Launched in 2016, the FoF was aimed at providing a boost to the Indian startup ecosystem and increasing capital inflows into the space.

As of November 2023, it has facilitated investments worth INR 17,534 Cr in 938 startups, according to a CRISIL report. And in recent years, there has been an effort to focus on particular sectors to back this holistic fund.

For instance, following the privatisation of the space sector in 2020, and after introducing 100% foreign direct investments (FDI) for spacetech in February this year, the Indian government announced an INR 1,000 Cr state-backed venture fund for the space economy.

This underlines an ambition on the part of the government that needs backing from domestic investors. The 2024 union budget also included a key reform to reduce the long-term capital gains (LTCG) tax on unlisted equities, bringing the tax rate down from 20% to 12.5%, which is another major boost that domestic investors have waited for.

These developments are a great way to encourage more domestic investors to participate in the startup ecosystem. Mobilising more domestic resources is key to helping startups grow without the pressure that usually comes with such large foreign investors.

It’s going to be many years before foreign capital becomes less relevant for startups. The globalised nature of many emerging sectors such as semiconductors or AI means that foreign capital will continue to dictate the course of startups.

These are areas where Indian startups are competing in a high-pressure environment.

In contrast, Indian investors and family offices tend to have a more patient approach to exits and growth targets since they realise how challenging it is to scale businesses up in the Indian context. This understanding of the constraints on Indian founders is another key advantage of domestic capital and will play a role in the growth of consumer tech, fintech and other areas that address uniquely Indian problems.

Having said that, the Indian ecosystem needs a better balance of both overseas investors and a domestic pool. It would be folly to overlook the role of foreign investors in the Indian startup story, but perhaps, the next few chapters need Indian investors as the lead authors.

The post Why Indian Startups Need More Domestic LPs, Funds appeared first on Inc42 Media.

The investment landscape in the country is going through a shift never seen before, with more and more women founders and investors winning themselves a bigger share in the high-octane arena of the Indian startup space. 

Be it Swati Nangalia Mehra of Sixth Sense Ventures, who directly ventured into the world of investing, or the founders-turned-investors Ghazal Alagh and Vineeta Singh, many of these trailblazing women have made their mark in the homegrown startup ecosystem. This is notwithstanding other veterans such as Kiran Mazumdar Shaw and Rekha Menon who have already set examples for many in the past. 

Many of these women investors bring years of experience to the table and have today emerged as role models for the country’s youth. However, things were not the same a few years ago, the founder of She Capital Anisha Singh told Inc42.

“It was hard explaining to people that women are successful as entrepreneurs. Now that we have given mega returns to our investors, they’re excited… and understand that women are great business persons,” she added. 

As sharp as a knife, these new-age women investors have their eyes on the stars and feet on the ground, and they are charging through with great perseverance. With numerous successful exits, Indian women investors are creating templates that will be followed by many in the years to come. 

However, more importantly, women founders and investors possess something really important when it comes to building an enterprise and the world of investing.

“They will call a spade a spade and tell you things exactly as they are and not how they can be,” opines the cofounder and CFO of B2B building material marketplace OfBusiness Ruchi Kalra on what makes women great investors. 

We, at Inc42, have collated some of the names that are making waves in the startup investment world. These are the names of the women that aim to build an equitable world of tomorrow and are leaving no stone unturned in their quest.

If you are a women investor or want to nominate a women investor in the startup ecosystem, nominate us at editor@inc42.com. This is a running list, and we would love to add more women who are changing the investing landscape in the Indian startup ecosystem.

Note: This is not an exhaustive list or ranking of any kind. We have placed investors in alphabetical order. 

Here Are The 46 Women Investors Spearheading The Startup Investment Game In India

1. Aarti Gupta

As a veteran investment strategist, Aarti Gupta has been at the forefront of driving the business of her family office, DM Gupta Family, Jagran Group, for the past 13 years.

Gupta also serves as the chief investment officer at Anikarth Ventures, an angel-investing firm that backs early stage startups focussed on transformative solutions.

She also holds multiple positions ranging from being a National Head for FICCI FLO Startups, which focus on women founders and investors, to her association with Jindal Stainless Steels as an independent director.

Besides, Gupta leverages her investment strategy skills to contribute to several boards of family-owned businesses and startups. Furthermore, she also champions initiatives for women’s financial literacy entrepreneurship and job readiness.

Gupta’s academic credentials include a PhD in Economics from IIT Kanpur, a post-graduate diploma in business studies from Harvard University and a Master’s degree in Economics from Northeastern University.

2. Anisha Singh

Anisha Singh is the founder of women-focused VC firm She Capital. She founded the VC firm in 2020 to stimulate more women founders to enter India’s startup ecosystem. Some of the portfolio companies of the VC firm are Samosa Singh, Spark Studio, Elev8 Sportz, and Nova Nova.

Earlier, she founded ecommerce platform MyDala and also headed B2B startup Kinis Software as its CEO. She has also worked as a manager with Centra Software.

She is mostly seen talking about women’s empowerment and supporting women-focussed businesses and startups.

3. Alia Bhatt

Bollywood superstar Alia Bhatt has also donned the hat of an investor and has quite an interesting portfolio. One of her prominent investments was in beauty ecommerce marketplace Nykaa. Her investment grew more than 10X within months to INR 54 Cr when Nykaa got listed on the Indian bourses.

Bhatt’s portfolio also includes Mumbai-based personal styling platform Style Cracker and Kanpur-based biomaterial startup Phool.

Besides investing in other startups, Alia Bhatt has also set up her startup, Ed-a-Mamma, which operates in the kidswear category.

4. Anjali Bansal

Founder and chairperson of Avaana Capital Anjali Bansal has been actively investing in Indian startups. In 2022, Avaana funded four Indian startups — BambooBox, Gold Setu, and Groyyo, according to the Inc42 funding report.

In addition to the aforementioned startups, Anjali has invested in various startups – Delhivery, Urban Company, Darwinbox, and Nykaa, to name a few.

Currently, Bansal is a member of the ONDC steering committee. She is also on the board of various Indian companies such as Tata Power, Nestle India, and Piramal Enterprises. She has also worked with TPG Growth, Spencer Stuart, McKinsey, and Dena Bank

5. Anjali Sosale

Anjali Sosale, partner at Waterbridge Ventures, plays a pivotal role in shaping the success of early stage technology companies for the VC firm. With a special focus on consumer tech, ecommerce, and marketplaces, Sosale wants to enable the next wave of rural Indian internet users

She is an active investor in startups such as BigFatPhoenix, BimaKavach, BitClass, CBREX, Downtown Club, EloElo, and Yellow Metal. 

Waterbridge Ventures specialises in early-stage technology investments, providing $250K to $3 Mn to seed to Pre-Series A stage companies.

With a portfolio comprising 31 investments and collaborating with over 70 founders, Waterbridge takes a lead role in funding rounds and remains dedicated to supporting its portfolio companies throughout their growth journey, extending investments until Series C. 

6. Ankita Vashistha

Ankita Vashistha is the founder of Saha Fund and StrongHer Ventures, which backs female-led early-stage startups operating in the fintech, health tech, consumer tech, and Web 3.0 segments.

She is currently associated with multiple names such as MySpaces, Tholons Capital, NASSCOM,  Aureos Capital, and Abraaj Group. In her more than 10 years of professional journey, she has worked with tech ventures, private equity and VCs across the UK, the US, and Asia.

She is currently an active investor in Indian Angel Network. Her startup portfolio comprises startups such as Licious, Uniphore, Fitternity, LoveLocal, Zumata, and Insta Health.

She got her master’s degree from the Cranfield School of Management, Stanford University, and is an alumna of Ramaiah Institute of Technology.   

7. Archana Jahagirdar 

Archana Jahagirdar is the founder and managing partner of Rukam Capital, an early-stage consumer-focussed VC fund. As one of the few women general partners in venture capital in India and globally, she is at the forefront of transforming the entrepreneurial and startup ecosystem. Since founding Rukam Capital in 2019, Jahagirdar has invested in over 18 startups across sectors, including Sleepy Owl, Go Desi, BECO, Pilgrim, Curefoods, Yoho, among others.

Her contributions to the startup landscape have earned her national recognition, including being nominated to the National Startup Advisory Council (NSAC).

Earlier in her career, Jahagirdar headed companies like Textron, Angelworks, and Espace Corporate, and worked as a journalist with major media outlets like The Times of India and Business Standard. She holds bachelor’s and master’s degrees in English literature from St. Stephen’s College, Delhi University. Her experience and sharp market intuition continue to shape India’s vibrant startup ecosystem.

8. Archana Priyadarshini

Archana Priyadarshini is a founder of Forward Slash Capital, which backs pre-seed to pre-Series A stage tech startups. In 2022, she invested in four startups – Broomees, CogniSaaS, Ekank Technologies, and Threado.

Over the years, she has participated in more than 25 startup deals, which include Metastable Materials, Exprto Live, and VAMA, to name a few.

At the moment, she is working as a general partner at PointOne Capital. She has also worked with companies such as Wells Fargo, Bootcamp Fitness Studio, IBM and CGEY. She has done her B.Tech in chemical engineering from IIT Kanpur

9. Bala C Deshpande

Bala C Deshpande is the founder partner of Megadelta Capital, which is an India-focussed mid-market growth fund. It typically invests $15 Mn to 25 Mn of growth equity in startups across sectors such as consumer, healthcare, and enterprise tech.

Megadelta Capital’s portfolio includes startups such as ecommerce unicorn Firstcry and health tech startup GOQII, among others.

Deshpande has nearly two decades of experience in investment advisory. She started her investing career with ICICI Venture in 2001. Later, she joined global VC firm NEA to set up their India platform where she headed the practice for ten years and helped NEA US in investing and backing startups in the mid-market space.

10. Bharati Jacob 

Bharati Jacob is the founder and managing partner of Seedfund, which invests in startups operating in diverse industries. She holds more than 24 years of experience in venture investing, marketing, and financial services.

Earlier, she worked with venture capital firm Infinity Venture Fund, investment bank Lazard, and aviation company Northwest Airlines.

An XLRI graduate, Jacob completed her MBA in marketing from the Wharton School, University of Pennsylvania.

11. Bhawna Bhatnagar 

Bhawna Bhatnagar is the cofounder of We Founder Circle (WFC), which invests in pre-seed to pre-series A-stage startups.

So far, she has invested in edtech OLL and F&B direct-to-consumer (D2C) startup Bored Beverages. Besides, she has also participated in six startup deals, including ParkMate, ParkMate, Quizy, and Commaful.

Prior to founding WFC, she worked with leading companies such as ByteDance, Cheetah Mobile and India Today.

After completing her bachelor’s in biochemistry from Delhi University in 2009, she went to the Indian Institute of Mass Communication and then earned her master’s degree in East Asian studies from Delhi University in 2014.

12. Debjani Ghosh 

Debjani Ghosh is currently the president of NASSCOM, an industry body representing the IT-BPM space. In her career of nearly three decades, she has worked with Intel Corporation and Yes Bank.

She has also been on Cisco’s India Advisory Board and served as an advisor to the FICCI S&T/Innovation Committee.

An MBA from S.P. Jain Institute of Management and Research, Debjani completed her graduation in political science from Osmania University. 

13. Deepika Padukone 

With five startups in her portfolio, Bollywood actor Deepika Padukone has recently worn the investor’s hat. She began her entrepreneurial journey by founding 82°E in 2021.

82°E, which is led by Padukone and Jigar Shah, got $7.5 Mn funding from DSG Consumer Partners and IDEO Ventures, along with multiple ultra-HNIs and Padukone’s family office, Ka Enterprises.

Ka Enterprises mainly backs consumer and consumer-tech companies across the globe. Its portfolio companies include Epigamia, Furlenco, Blu Smart, Bellatrix, Playshifu, Atomberg, Front Row, Mokobara, Supertails, and Nua. 

14. Ghazal Alagh

Mamaearth’s cofounder Ghazal Alagh is an active angel investor. In 2022, she backed 14 startups, including Humpy Farms, unScript AI, and Wishlink. Her startup portfolio also comprises companies like BlissClub, HumpyFarm and Uvi Health.

Before founding Mamaearth, she set up a fitness platform dietexpert.in, which shuttered its operations in 2013.  She has a BCA degree from Panjab University and holds certifications in visual arts from New York Academy.

15. Harsha Kumar

Harsha Kumar is a Partner at VC firm Lightspeed India Partners Advisors. Her journey began as a software engineer and product manager at Persistent Systems in 2009, followed by a stint at the American online gaming startup Zynga in 2012. She pursued an MBA degree from INSEAD while advancing her career.

In 2014, Kumar joined Ola as the product head, contributing to its exponential growth from 3,000 rides per day to a million rides a day by the time she concluded her tenure in 2016. Her instrumental role in scaling up Ola’s product significantly contributed to its unicorn valuation.

At Lightspeed Venture, Harsha has been actively involved in various investments over the past 7 years. Notable investments include API marker Setu, digital ledger OkCredit, vernacular audiobook app PocketFM, and product manager hiring platform Upraised.

16. Ishani Chanana

Ishani Channa, partner investments at Sarcha Advisors, plays a pivotal role in managing family office investments and shaping capital allocation strategies across a diverse spectrum of assets, encompassing equity, debt, and alternative investment opportunities, with a significant focus on startups.

With investments in over 50 startups, including notable names like BluSmart, Josh Talks, STAGE, TrulyMadly, Prescinto, and The New Shop, and active participation in 20+ follow-on rounds, Ishani has been instrumental in nurturing entrepreneurial talent and fostering innovation.

In addition to her role at Sarcha Advisors, Chanana is an angel investor and has stakes in startups like JumpingMinds, BatX Energies, Yatrikart, Newmi, and Jobsgaar.

Prior to her current role, Ishani spent nearly four years at a hedge fund within Edelweiss Financial Services, where she honed her skills in buy-side research. Her work involved in-depth analysis of Indian-listed companies across diverse sectors, making valuable contributions to investment decisions within the fund.

Chanana holds a master’s degree in finance from Warwick Business School. Her investment track record includes successful exits and the ability to attract substantial investments from renowned investors to her portfolio companies, underscoring the prudence of her investment choices

17. Kanika Mayar 

Kanika Mayar is a partner of Vertex Ventures, which infuses money in seed to Series B-stage startups operating in Southeast Asia and India. Vertex’s portfolio companies include Grab, Patsnap, 17Live, Nium, FirstCry, Licious, AsianParent, Validus, and Warung Pintar, among others.

So far, Kanika has participated in four startup deals – Chatty Bao, Proactive For Her, Onato and Karkhana.io. She has also worked with leading companies such as IFC, TechnoServe, Goldman Sachs, and Ernst & Young.

A graduate of economics from the prestigious Lady Shree Ram College, Kanika completed her MBA from IIM Ahmedabad.

If you are a women investor or want to nominate a women investor in the startup ecosystem, nominate us at editor@inc42.com. This is a running list (and not a definitive one), and we would love to add more names who are changing the investing landscape in the Indian startup ecosystem. 

18. Namita Thapar

Namita Thapar is the executive director of India Business for Emcure, a pharmaceutical company. Thapar rose to fame after she joined the TV Show ‘Shark Tank India’ as one of the sharks.

So far, Thapar has participated in 11 startup deals, including Medulance, Ubreathe, Snitch, JhaJi Store, and TagZ Foods, among others.

She recently invested in ePharmacy when the startup bagged an investment of INR 2 Cr from multiple investors on Shark Tank India.

A chartered accountant from The Institute of Chartered Accountants of India, Namita holds an MBA degree from the Fuqua School of Business.   

19. Nandini Mansinghka

Nandini Mansinghka is the co-promoter and CEO at Mumbai Angels Network. She is also a founder investor at Digibooster, a content marketplace. Over the years, she has participated in more than 55 startup deals.

Founded in 2006, Mumbai Angels Network invests in early-stage startups in India. The network backs a slew of startups such as Adsparx, Adonmo, and BabyChakra, among others.

After her graduation (BCom) from the University of Calcutta, she completed her CFA from the Institute of Chartered Financial Analysts of India

20. Nruthya Madappa 

Nruthya Madappa assumed the role of partner at the early-stage VC firm 3one4 Capital earlier this year, where her primary responsibility is to enhance and fortify the firm’s portfolio.

Her journey at the venture capital firm began in 2020 when she joined as a principal and took charge of growth and capital development.

Demonstrating exceptional leadership and strategic acumen, she swiftly progressed to the position of director for the growth and capital vertical in the subsequent year.

21. Padmaja Ruparel

Padmaja Ruparel is one of the cofounders of the Indian Angel Network. She is also recognised as a key player in the Indian entrepreneurial ecosystem.

So far, she has participated in over 16 startup deals, which include names like Phool, Nivesh, Sirona Hygiene, goStops, and Dhruva Space, among others.

Last year, Indian Angel Network launched the IAN Alpha Fund, a SEBI-registered category II venture capital fund, worth INR 1,000 Cr.

So far, Indian Angel Network has invested in over 180 startups. Some of its portfolio companies are Zypp Electric, Crest, Huddle, Elctrifuel, Indium Finance, and Sirona Hyginene, among others.

Before starting her journey in the Indian startup ecosystem, Ruparel worked as the head of corporate communications at the UK-based Xansa.

22. Paula Mariwala

Paula Mariwala has been an early-stage investor for the past 15 years, and is a founding partner of Mumbai-based Aureolis Ventures, and the founder of Stanford Angels & Entrepreneurs India.

A Stanford alumna, Paula invests in early-stage startups and has been a key investor in Tapchief, Tread, Browntape, Thinklabs, RedBus, and Carwale, among others. In terms of sectors, she has been actively investing in segments like technology, sustainability, social impact, women empowerment, and education.

Paula is a member of the governing council of the Foundation for Innovation and Technology Transfer, IIT Delhi. She is also on the board of the Center for Human Rights and International Justice at Stanford University.

23. Pearl Agarwal

Pearl Agarwal is a prolific angel investor, with investments in 16 startups across sectors such as web3, fintech, edtech, gaming, and SaaS. Some of her notable investments include InFeedo, BluSmart Mobility, GroMo, Trell, and Redwing Labs.

Pearl is also the founder and MD of Delhi-based VC firm Eximius Ventures, which has its investments in startups such as Eka.Care, Jar, iTribe, Fego, Zorro, KalaGato, Oyela, Flux, Stan, Fleek, and Skydo.

Before becoming a full-time investor, Pearl worked at Merril Lynch. Pearl has also worked in the private equity sector with names like UTIMCO and Global Infrastructure Partners.

She is also the cofounder of DotReview, a platform where first-time investors can learn about startup funding.

24. Pooja Mehta

Pooja Mehta , AVP , investments and investors Relation at Gensol Group, was the chief investment officer (CIO) at JITO Angel Network (JAN), a platform which connects angel investors with startups. She has expertise in evaluating startups, managing angel investment deals, and administering investment operations and mentoring startups on growth stage.

In the last four years, she has invested in over 30 companies, including Blusmart, Batx, HomeCapital, Nexus Power, Uravu, Terra Biware, Matrix Gas Jumping Minds, Oneplay, Magenta, etc.

Currently, she is a venture capital advisor and on the board of multiple companies, including the global advisory council of Tech India Advocates. A seasoned management professional with an MBA degree in finance, Pooja’s skillset ranges from business development, market research, and management to building business strategies and financial analysis.

25. Priyanka Chopra

Priyanka Chopra, in her capacity as the COO and managing partner at CIIE.CO, assumes a pivotal role in the startup ecosystem, particularly focussing on digitisation, deeptech, climate tech, and financial inclusion.

With a dedicated commitment to empowering women entrepreneurs, she takes the lead in spearheading accelerator and incubation programmes.

These initiatives are designed to enhance skills, promote technology adoption, establish a robust online presence, drive customer engagement, and facilitate strategic partnerships.

Chopra has significantly influenced over 1,200 startups through various CIIE.CO programmes. Notable startups under her guidance include Razorpay, which turned into a unicorn in 2020.

26. Raakhe Kapoor Tandon

Raakhe Kapoor Tandon runs a family office – The Three Sisters: Institutional Office – with two of her sisters, Radha and Roshini Rana Kapoor. Raakhe, Radha and Roshini are the daughters of Rana Kapoor, the founder and MD of Yes Bank.

Under the family office, Raakhe founded ART Capital (India), an investment vehicle. The Three Sisters also has its investments in Delhi-based Awfis Space Solution, a real estate tech startup.

A Wharton alumna, Raakhe has founded two more ventures under ART Capital – ART Housing Finance (India) and Rural Agri Ventures India.

While ART Housing Finance provides long-term mortgage finance to retail customers, Rural Agri Ventures is an incubation/project development firm focussed on agritech startups. 

27. Rema Subramanian

Rema Subramanian is the co-founder and managing partner at Ankur Capital Fund, which backs early-stage startups in the agritech, fintech, health tech, and edtech segments.

She is currently working as an advisor consultant at DY Works. Earlier, she has worked with various Indian companies such as Dasra, ADTS, Element K India, Zee Interactive Learning, Ion Exchange, Datamatics and JK (Raymonds).

So far, Rema has participated in more than four startup investment deals. These names include SportVot, Josh Talks, MyCaptain, and Banyan Environmental Innovations.

A cost accountant from ICFAI, Rema has worked across education and IT/ITES, taking young companies from scratch to midsize ventures.

28. Renuka Ramnath

Renuka Ramnath is the founder and CEO of Multiples Alternate Asset Management, a Mumbai-based venture capital firm that has supported startups such as Delhivery, ACKO, Dream11, MoEngage, and LivPure, among others.

Ramnath founded Multiples in 2009 with the vision of creating a highly respected, sustainable, and successful institution focussed on alternative asset investments in India. Fifteen years later, Multiples manages nearly $3 Bn in assets and has a portfolio of 30 companies across three funds.

An alumna of Harvard Business School, Ramnath also serves on the board of the Multiples Good Faith Foundation, a scholarship programme that provides financial and skill-development support to children from disadvantaged backgrounds.

With over three decades of experience in financial services, Ramnath previously served as the managing director and CEO of ICICI Venture for eight years. Between 1986 and 2001, she held various positions within the ICICI Group.

29. Ritu Verma

Ritu Verma, the cofounder of Ankur Capital, has backed several startups over the years. Some of the companies in her portfolio include names like CropIn, ERC, HealthSutra, Big Haat, Niramai, Tessol, Suma Agro, and Karma Healthcare.

In 2022, Verma took part in more than 13 startup investment deals, including D-Nome, IBISA, Vegrow, Wasabi, and Offgrid Energy Labs, among others.

At present, she is acting as a board observer in various Indian companies such as BigHaat India, String Bio, AgricxLab and Niramai. She is also on the board of Tessol, Health Sutra and CropIn.

Earlier, she worked with Truven, Philips and Unilever. She has a PhD in physics from the University of Pennsylvania and an MBA from INSEAD.

30. Roopan Alakh

Roopan Alakh has over 15 years of experience spanning venture capital, corporate development, and technology. She currently serves as the managing director of pi Ventures, where she focuses on investing in early-stage deeptech startups across diverse sectors such as artificial intelligence, space tech, and healthcare. 

Passionate about cutting-edge technologies, Alakh has been instrumental in backing prominent startups, including Agnikul, a leading space tech venture, and Wysa, a popular AI-driven mental health platform.

Before joining pi Ventures, she began her investment career at Applied Ventures, the corporate venture capital arm of Applied Materials. She invested in early- to growth-stage startups in transformative fields like robotics, semiconductors, and renewable energy in that role. 

Prior to transitioning into the investment world, Alakh worked as a technologist in deeptech, giving her a solid foundation in the technical aspects of the businesses she now invests in. 

She holds a bachelor’s degree in technology from NIT Jalandhar and an MBA from the Indian School of Business (ISB) in Hyderabad. 

31. Ruchi Kalra 

Ruchi Kalra helms the financial affairs at one of the few profitable new-age tech startups in the country. The CFO of B2B building material marketplace OfBusiness also helped found the startup back in 2016 and has not looked back since then.
An alumna of the prestigious Indian Institute of Technology Delhi, Kalra studied chemical engineering and then went on to work at Evalueserve for a couple of years. Afterwards, Kalra enrolled at the Indian School of Business in Hyderabad and completed her MBA.

Immediately after that, Kalra landed a job at McKinsey & Company and was entrusted with overseeing the insurance and retail banking sector. After nine years working at the consulting firm, Kalra took the plunge into the world of entrepreneurship and helped found OfBusiness.

Not stopping there, she has helped scale the business to new heights while she has also continued investing in multiple other businesses as an angel investor. She has so far invested in as many as 10 startups, as an angel, including seafood marketplace Captain Fresh, tyre marketplace TyrePlex, women-led lifestyle brand FableStreet, and B2B pharmacy marketplace Saveo, among others.

32. Salone Sehgal

Salone Sehgal is the founding general partner of Lumikai Fund, India’s pioneering early-stage interactive media VC with a $100 Mn + investment target to shape the future of interactive media in India. Sehgal holds an MBA from IESE Business School, Spain.

With over 15 years of experience in media VC, entrepreneurship, and M&A banking, Sehgal has worked across Europe and India, helping companies from seed to IPO. Before Lumikai, she was a principal at London Venture Partners, where she helped grow numerous interactive media companies.

Previously, she cofounded TrulySocial, a UK-based company creating immersive social worlds, and served as vice-president at Barclays, where she led digital strategy and business development. Sehgal also has M&A experience with Morgan Stanley.

Sehgal serves as a charter member of TIE and is on the VC committee of IAMAI. She is also part of several task groups of CII, India Digital Gaming Society, and AVGC.

33. Seema Chaturvedi

Seema Chaturvedi, the Founder and Managing Partner of Achieving Women Equity (AWE) Funds, boasts an impressive 25-year track record in capital markets and financial management. Her primary mission is to drive gender equity in entrepreneurship.

A staunch advocate for entrepreneurship with a specific focus on women’s empowerment, Chaturvedi aims to empower 30 Mn women in India by 2030 through AWE Funds.

She also chairs TiE Global’s prominent initiative, the Project All India Roadshow for Women’s Economic Empowerment through Entrepreneurship (AIRSWEEE), securing funding from the US Department of State for six consecutive rounds.

Earlier this year, AWE Funds announced the first close of its maiden fund in India – the Achieving Women Entrepreneurs Early Growth Fund I – at $15 Mn. While promoting gender equity and climate action as a strategy, the fund aims to invest in scalable innovations in sectors such as climate tech, agritech, health tech, edtech and fintech.

34. Shagun Tiwary

Shagun Tiwary is a senior principal at Verlinvest, a Belgium-based investment firm. She is equipped with 12 years of work experience and has invested in companies across consumer and healthcare services such as Dr Lal PathLabs, Indira IVF, Epigamia, and Veeba.

Prior to joining Verlinvest, she worked at TA Associates and Nomura in Mumbai, where she focussed on growth equity investment and capital market transactions. She holds a master’s degree in economics from the Delhi School of Economics, University of Delhi.

Verlinvest is largely involved in late stage venture capital funding and mid-market private equity. Typically, the firm invests between $20 Mn and $200 Mn in startups, depending on the stage they are in.

35. Shanti Mohan 

Shanti Mohan is the founder of LetsVenture, a Bengaluru-based investor network that allows angels and HNIs to invest in startups. She has also founded trica, a platform that allows people to invest in startups and private equity.

In the last few years, she participated in more than 10 startup deals, which include Minko, Simply Services, Bimaplan, and Aulerth.

With LetsVenture, Shanti has invested in startups such as Absolute Foods, Agnikul, BharatX, CityMall, Dukaan, Trell, Yulu, Blusmart, and The ePlane Company, among others. Her personal portfolio comprises Siply, Minko, and Bimaplan.

Shanti is an active angel investor and part of the SEBI advisory AIF committee. She is also active with the RBI Council on startup funding. Further, Shanti is part of the startup committees of several states in India.

36. Shrishti Sahu

The founder of Hustle Hard Ventures, Shrishti Sahu, has been actively supporting Indian startups and has so far backed 30 startups, including Plum, Kutumb, Rupifi, Chingari, 10Club, Leap Club, Eeki Foods, GrowthSchool, Accacia, Descrypt, and Gold Setu, among others.

Sahu shared that she writes off cheques between INR 3 Lakh and INR 25 Lakh for homegrown startups.

Currently, she is a managing partner and angel investor at Swadharma Source Ventures. She has also worked with multiple companies like Emoha Eldercare, Facebook, Lumis Partners, Aqaya Source Foundation, and Aqaya. She completed her graduation from the University of Warwick.

37. Shruthi Cauvery Iyer

Caha Capital founder Shruthi Iyer is an active angel investor, who is overseeing two early-stage startups’ expansion strategies. She administers Wharton Alumni Angels (South Asia) and HBS Alumni Angels.

Earlier, she worked with international companies such as Agate Medical Investment LP, PT Perintius,  International Finance Corporation (IFC), and Eastern Energy Resources. She is one of the cofounders of the ecommerce startup Blend8.

She did her MBA from the Wharton School and completed her B.Tech from Visveswaraya Technological University, Karnataka.  

38. Sowmya Suryanarayanan

Sowmya heads the impact and ESG functions at Aavishkaar Capital – an impact fund manager that invests in impact enterprises across India, South and South East Asia and East Africa. She is responsible for delivering significant impact, gender and ESG value across Aavishkaar’s various impact funds and portfolio companies.

At Aavishkaar, Sowmya has helped invest in sectors such as agritech, financial inclusion, and essential services. Some of the portfolio companies of Aavishkaar Capital include Nalanda Learning Systems, GoBolt, Milk Mantra, and Seven Ocean, among others.

39. Sunitha Viswanathan

Sunitha Viswanathan is a partner at the early stage VC firm Kae Capital. With over a decade of experience in venture investment, banking, and technology, she brings a wealth of expertise to her role.

Kae Capital, founded in 2012, has backed 81 startups, including notable names like Porter, Zetwerk, Nazara, and Tata 1mg.

Prior to joining Kae Capital, Sunitha spent over 8 years at Unitus Ventures, an early stage VC fund based in Bangalore. During her time there, she served on the boards of Cuemath, Masai School, Salesken, Awign, and Blowhorn, among others. She also gained experience working with mid-market clients at YES Bank.

Sunitha holds a bachelor’s degree in Electronics and Communications Engineering from PES Institute of Technology, Bangalore and a Master’s in Finance from S.P. Jain Institute of Management & Research, Mumbai.

Her investment focus spans sectors such as fintech, consumer tech, D2C, and Healthtech. Notable companies in her portfolio include Assurekit, Bold Finance, Everheal, Foxtale, Freightwalla, Nua, Supernova, Traya Health, and Wysa.

40. Surabhi Washishth

Surabhi Washishth, the founding partner of Paradigm Shift Capital, has been actively supporting the Indian startup ecosystem.

So far, she has investments in 20 startups, including Ixana, Zeda, Landeed, Praan, 10XAR, Samudai and Arcana Network. In her personal capacity, she writes cheques between $250K and $300K for startups.

At present, she is acting as a ‘Global Shaper’ with the World Economic Forum. She has also worked with multiple companies such as WeWork India, Headout, Target, AOL, and ING Life, among others. She has a B.Com degree from Christ University, Bengaluru. 

41. Swapna Gupta 

A prolific investor, Swapna Gupta is currently a partner at Avaana Capital, a climate-focused VC firm. Before joining Avaana Capital, Swapna spent more than seven years at Qualcomm Ventures, where she led India investments.

She is an investor and board observer in multiple Indian startups, including Locus, Shadowfax, Ninjacart, Zuddl, FabHotels, MoveInSync, Reverie, Stellapps, and attune, among others.

Swapna also launched Qualcomm Women Entrepreneurs India Network (Qwein), a networking, learning, and mentoring programme for deeptech, and early-stage female entrepreneurs in India.

Swapna has recently been recognised by GCV among the Top 50 emerging leaders in the corporate venture community. Surprisingly, she is the only Indian on the list. She is also part of the prestigious Global Kauffman fellows programme.

42. Swati Nangalia Mehra 

Swati Mehra’s tryst with investments began long ago. One of her first jobs was to oversee investment research in the consumer space. The job came in handy when she decided to take the plunge into the world of investing. 

In 2014, she helped cofound Sixth Sense Ventures, the country’s first domestic and consumer-focussed venture fund. Since then, the firm has invested in a host of new and emerging D2C brands that have created a niche for themselves.

Nangalia Mehra has helmed the venture fund, which has invested in a slew of emerging brands, including homegrown beer brand Bira91, men’s grooming and personal care brand Bombay Shaving Company, and gaming and entertainment platform Smaaash. She also has stakes in CarterX, Pariksha, and ProcMart. 

43. Tarana Lalwani

Tarana Lalwani is a founding partner of InnoVen Triple Blue Capital, which has backed multiple startups such as Zetwerk, Chaayos, Ather, slice, and Bounce.

As an angel investor, Lalwani bets on startups working in the consumer, consumertech, health tech, fintech, and SaaS sectors. She also holds expertise in pre-seed to Series D funding rounds via equity and debt instruments.

Presently, she is an advisor at Aureolis Ventures and a senior director at InnoVen Capital India. Earlier, she worked with companies like Anand Rathi Securities, Kae Capital, SeedFund, Edvance Learning, Webaroo, Radian Group, and Morgan Stanley.

She is also on the advisory board of Oscar Foundation and CII. Not only this, Tarana is currently part of the venture capital and private equity committee of IMAI (Internet and Mobile Association of India).

She holds an MBA degree from Columbia Business School and a bachelor’s degree from La Salle University. 

44. Vani Kola 

Vani Kola is the founder and managing director of the early-stage VC firm Kalaari Capital. She has led over 30 investments at Kalaari. Some of the prominent names include Dream11, Myntra, Cure.fit, and Snapdeal.

Vani is currently on the board of CXXO. She has also worked with Certus Software and RightWorks. She likes mentoring first-time entrepreneurs and ushering them into becoming seasoned business leaders. So far, she has participated in over 63 startup deals. Some of these names include Climbes, Bombay Play, Zocket, StanPlus and Zluri, among others.

After graduating from Osmania University, she completed her master’s degree from Arizona State University.

45. Varsha Tagare

Varsha Tagare is the managing director at Qualcomm Ventures where she manages a $150 Mn fund dedicated to India and cross-border digital enterprise investments.

Prior to joining Qualcomm Ventures, Tagare served as an investment director at Intel Capital, responsible for global equity investments in mobile technology.

At Qualcomm Ventures, she has led and managed investments in Capillary Technologies, Ideaforge, MapMyIndia, among others. 

46. Vineeta Singh

Widely popular for being featured on Shark Tank India, Vineeta Singh is the CEO and cofounder of beauty and personal care brand SUGAR Cosmetics. Singh is an alumna of the prestigious Indian Institute of Technology, Madras and the Indian Institute of Management, Ahmedabad.

Singh is a serial entrepreneur and the founder of FAB BAG, a beauty and grooming subscription startup. Since appearing on Shark Tank India, Singh has shot to fame and has invested in a slew of Indian startups featured on the show.

As an angel investor, Vineeta Singh has participated in multiple fundraisers. Some of her bets include Padcare Labs, JhaJi Store, Snitch, and Josh Talks, among others.

Note: The information has been collected from available public resources and websites.

If you are a women investor or want to nominate a women investor in the startup ecosystem, nominate us at editor@inc42.com. This is a running list (and not a definitive one), and we would love to add more names who are changing the investing landscape in the Indian startup ecosystem. 

Last updated on September 25, 2024 | The list has been updated to include one more women investor. 

The post Meet 46 Women Torchbearers Of India’s Startup Investment Space appeared first on Inc42 Media.

“The founders, particularly Nischal Shetty, made a grave mistake by ghosting WazirX for two years and doing other projects. And suddenly they appeared out of nowhere this year. The July 18 attack is just a culmination of many of their mistakes—this was a disaster waiting to happen,” a former WazirX employee. 

On July 18, 2024, social media was abuzz with news of India’s largest crypto heist, as WazirX reported $234 Mn worth of cryptocurrencies stolen from one of its wallets hosted on Liminal, an institutional digital asset custody platform.

It’s now been more than 60 days since the heist, and a series of allegations have surfaced, with blame being shifted, and little groundwork being done. But this is what has happened in the interim:

• The company started a white hat bounty programme offering up to 10% of the stolen funds ($23 Mn)
• An FIR has been filed with the Special Cell of the Delhi Police against unknown persons
• Zettai Pte Ltd, the Singapore-based entity owned by WazirX cofounders Nischal Shetty and Sameer Mhatre, filed for a moratorium in Singapore High Court. 
• WazirX claims to be in talks with 11 crypto exchanges for a possible acquisition

It’s important to note that Zettai is the holding company for the Indian entity Zanmai Labs which operates in INR-crypto transactions on WazirX 

Now, the hack and heist have opened up a whole can of worms for WazirX. Even as Shetty looks for a white knight to come to rescue WazirX, things look bleak. 

“Can you sell something that you claim not to own? Can someone invest in or buy a company whose ownership is disputed and being investigated by the ED for FEMA violations? Despite the lucrative data of 16 Mn users, nobody would want to poke their nose into this,” said a founder of another crypto exchange. 

The heist, and the handling of it thereafter, has raised numerous questions concerning WazirX, its founders Shetty and Mhatre, as well as Binance which, despite denials, still is the real owner according to the WazirX affidavit. 

Besides these entities, Liminal Custody, where WazirX’s wallet was hosted, is also coming under fire, and on its part, pointed fingers at WazirX. 

Finally, there’s the Indian government, which collects a hefty 30% tax on crypto gains, its investigative agencies, which have not yet arrived at a conclusion on even their previous investigations into WazirX.

Where WazirX Fell Apart

Despite WazirX founders holding two town hall meetings in the last few weeks, many questions remain unanswered. And, there is a series of events and questionable decisions that led to this stage. 

After Zebpay’s temporary downfall in 2018, followed by Koinex shutting down, WazirX rose to become one of the largest crypto exchanges in India, maintaining its dominance for a couple of years. At one point, Binance had seemingly acquired the company, however, WazirX’s relationship with Binance soured eventually, leading to a very public fallout on social media.

Despite the Binance tussle, WazirX remained one of India’s most popular crypto exchanges until July. The growing popularity of cryptocurrencies in 2021, fueled by Bitcoin’s meteoric rise, helped WazirX achieve a trading volume of $38 Bn, with 44% month-on-month growth.

Like the employee quoted at the beginning said though, things soured soon after that. The founders had essentially abandoned the ship between 2022 and 2023 to pursue other ventures. Shetty went on to cofound Shardeum and Pi42, while another cofounder Siddharth Menon founded Tegro, a marketplace for blockchain game assets.

By January 2022, both founders had shifted their base to Dubai and were no longer actively involved in running WazirX. And then came the heist. 

After a series of blunders since August 2022, when the ED investigation began, this seems to be the end of the road for WazirX. Multiple founders who spoke to Inc42 believe whether it’s the moratorium or insolvency, WazirX might not see the light of day again.

Here’s the story of the $234 Mn heist that shook the Indian crypto industry and WazirX.

The Biggest Crypto Hack In Indian History

The attack on WazirX began on July 18 when one of its multi-signature or multisig wallets was breached and cybercriminals stole $234 Mn (or around INR 2000 Cr) in digital assets. According to various reports, North Korean actors were allegedly involved in this hack.

According to various accounts from Liminal and WazirX since then, the multisig wallet in question was controlled by five signatures from WazirX and one from Liminal. However, to initiate a transaction one needed three signatures from WazirX signatories and one from Liminal. 

To steal cryptos from this wallet, the hackers first created a fake account on WazirX, deposited tokens into it, and began purchasing Gala (GALA) tokens. They started by emptying out the hot wallet and then gained access to the cold wallet before draining that too. 

When WazirX signatories accessed the multisig wallet, the hacker was able to maliciously change the payload for the smart contract that controlled the wallet, 

Once the smart contract was upgraded in their favour, the hackers had complete control.  They required no further keys from WazirX, which allowed the attackers to completely drain all the funds.

At the time of the breach, WazirX had an estimated 16 Mn users and held $570 Mn in customer deposits. Approximately 4.3 Mn users suffered substantial losses due to the hack, with nearly half of their crypto balances wiped out.

As 45% of total user funds were lost, WazirX was left with no choice but to freeze all trading and withdrawals on the platform. Desperate to recover the stolen assets, on July 21, the hacked exchange announced two white hat bounty rewards.

Under the first bounty program, WazirX offered up to $10,000 worth of Tether (USDT) for actionable intelligence leading to the freezing of the stolen funds. 

The platform also launched a recovery bounty, offering 10% ($23 Mn) of the recovered amount as a reward to anyone who helped retrieve the stolen assets.

Since then, the hackers or the entity behind the WazirX breach have already moved the stolen Ether (ETH) cryptocurrency worth over $64 Mn through TornadoCash. 

Tornado Cash is an Ethereum coin mixer that utilizes zero-knowledge (ZK) proof cryptography to ensure the anonymity of user deposits and withdrawals.

This helped the attackers obscure their wallet addresses across blockchains, effectively masking their trail. 

While the platform was banned by the US government in 2022, it remains operational in several jurisdictions, including North Korea.

Who’s To Blame? Liminal Or WazirX?

At the centre of the hack are two parties—WazirX and Liminal Custody—each conveniently blaming the other from day one, leaving users uncertain about the security of their funds.

WazirX is an online exchange that allows users to buy, sell, or trade cryptocurrencies. While the exchange is registered in Mumbai and has a Singapore holding company, founder Shetty resides in Dubai. On the other hand, Liminal Custody is a Singapore-based crypto wallet infrastructure provider, which hosted the compromised wallet in Wazir’s case.

On the day of the hack, WazirX claimed in a blog post that the attack resulted from a “discrepancy between the data displayed on Liminal’s interface and the transaction’s actual contents.” 

One month later, on August 14, WazirX ended its relationship with Liminal and began transferring funds into new multisig wallets.

WazirX also enlisted Mandiant Solutions, a subsidiary of tech giant Google, to conduct a forensic analysis of the three laptops used for signing the transactions that depleted nearly half of its crypto reserves.

The hacked exchange later stated that it had received a clean bill from Mandiant, which found no evidence that its laptops or systems had been compromised during the hack. However, WazirX didn’t stop at clearing itself of responsibility. It further claimed that preliminary findings indicated the cyberattack likely originated from Liminal.

In response, Liminal brought in auditing giant Grant Thornton to perform its own forensic analysis, which cleared Liminal of any wrongdoing. The wallet infrastructure provider stated that no breach had occurred on its end.

It’s worth noting that neither Liminal nor WazirX has released the entire forensic report in public, but only parts of it.

Speaking to Inc42, a Liminal spokesperson said, “WazirX was using self-custodial software, not our custody service. The wallet was actually in the client’s custody, with the customer holding 5 out of the 6 keys required to control the wallet.”

Since the hack involved both entities, it would have been ideal to conduct a joint forensic analysis rather than separate investigations. However, Liminal clarified, “No, we were not approached by WazirX for any joint forensic audit.”

WazirX did not respond to Inc42’s queries till the time of publishing. 

However, the Liminal spokesperson hinted at the company exploring legal options to safeguard its brand name after the accusations from WazirX.

WazirX’s Nischal Shetty In The Hot Seat

Even though on paper Shetty, Menon and Mhatre are the founders of WazirX, Menon left the company in February 2022, while Mhatre has stayed out of the media spotlight. Essentially, Shetty is the face of WazirX and he’s naturally taking a lot of the heat in this matter.

“Before the Binance acquisition, Nischal and other founders paid salaries out of their own pockets. They also went the extra mile to ensure that WazirX got acquired by Binance, but since 2022 they have let everyone down,” said a source close to the matter. 

Post the acquisition by Binance in 2019, the global giant set up an internal team, including Binance US CEO Brian Schroder and Binance’s legal team, to work with WazirX. On WazirX’s end, Shetty and VP of finance Tushar Patel were the points of contact for Binance. 

According to a CoinDesk report, the terms of the agreement allowed WazirX to continue “accessing and operating these accounts for the sole benefit of Binance,” which was designated as “the absolute owner of these accounts.”

On July 28, 2021, after Patel agreed to the purchase agreement, Schroder wrote: “Thank you, Tushar. We will start the transfer process and keep you posted.”

But less than a year later, trouble came knocking. 

India’s Enforcement Directorate (ED) issued four summons on February 7, April 8, May 11 and June 7, 2022 against WazirX and its founders. Then on June 11, the ED for the first time publicly announced sending the show-cause notices to WazirX and its founders for crypto transactions worth INR 2,790.74 Cr being probed under the Foreign Exchange Management Act (FEMA), 1999.

Needless to say, Binance’s legal team was also facing the heat. After the first of the ED notices, Binance, which was already largely operating in ghost mode from tax havens like Malta, began distancing itself further from WazirX and the India business. 

The final blow came on August 5, 2022, when the ED conducted search operations at Mhatre’s and the WazirX office. On the same day, Binance completely cut WazirX off, claiming the acquisition had never been completed and that WazirX’s founders still ran the company and were effectively its owners.

However, Shetty has evidence on his side, showing that Binance unilaterally withdrew $67 Mn in trading fees from the WazirX platform. Binance transferred these amounts to an internal account solely controlled by them, as Binance owned the WazirX wallets, according to Shetty.

Despite this, Shetty and WazirX cannot claim complete innocence.

According to sources close to the development, Binance invested approximately $100 Mn to acquire the platform, though Inc42 could not independently verify this. 

As per the agreement, Binance was supposed to acquire the WazirX platform and take control of the peer-to-peer trading operations.

The KYC and INR-Crypto transactions, however, would continue to be executed by the Indian entity Zanmai Labs, owned by Zettai Pte Ltd in Singapore, jointly owned by Shetty, Menon and Mhatre.

“During the ED investigation, Shetty was doing everything to comply with the investigation while Binance was running away, ghosting us,” remarked a former WazirX employee.

However, this doesn’t absolve Shetty and WazirX from blame. On January 26, 2023, Binance threatened WazirX, demanding Shetty retract his claims about WazirX ownership or face the termination of its service agreement in a week’s time. 

In response, Shetty migrated wallets from Binance to Liminal and continued operating the platform despite the ongoing dispute.

“At this point, Shetty did not fully disclose the situation to traders and investors. He did not reveal the heightened risk investors would face after the ownership dispute with Binance,” said another cofounder of a leading Indian exchange.

Many users continued to trade on WazirX, as nothing appeared unusual on the app except for changes to the user agreement, which only a few people read, if at all.

Another critical issue is using Binance’s name in the user agreement when Binance had already publicly detached itself from any association with WazirX.

Rashmi Deshpande, specialising in technology Laws and founder of Fountainhead Legal, told Inc42 that if the user agreement is with the Indian entity Zanmai and Binance is also mentioned as someone responsible for peer-to-peer trading which continued to be part of the user agreements, both the entities could be held responsible as per the Indian laws.

In response to Inc42’s queries, Binance stated that it did not acquire, nor does it own or operate, the WazirX platform, Zettai Pte Ltd, Zanmai Labs, or any of its affiliates. This includes operations related to P2P transactions on WazirX. Any claims suggesting that Binance controls or owns these transactions are incorrect, the spokesperson said. 

Binance further claimed that Zanmai Labs’ reference to Binance in WazirX’s Terms of Use was false and misleading and that it was not authorised by the company.

The Binance spokesperson added, “We have been in communication with the WazirX team since July 18 to support their incident response efforts. We are deeply committed to the security and resilience of the entire cryptocurrency ecosystem. Our goal is to ensure the safety of the digital asset community by sharing best practices and advanced security measures. That said and for the avoidance of doubt, please be reminded that Binance does not manage or control any aspect of WazirX’s business or operations, including WazirX’s user funds.”

Those who invested through WazirX have questioned Shetty’s intention behind not releasing a copy of the FIR, the forensic report or other details pertaining to the ownership dispute with Binance.

As one user told us, even if WazirX had non-disclosure agreements with Binance, these were breached when the company was sharing details of the case with certain sections of the media to gain leverage over Binance. 

“Technically, you have already breached the NDA in the past. You could at least share the nature of the lawsuit with Binance. We don’t even know the title of the lawsuit. That’s what is disturbing,” the WazirX user added. 

Other WazirX insiders told Inc42 that Shetty had distanced himself from the company for an extended period while working on other projects. Most employees worked from home and there was a small setup at a WeWork property in Mumbai, but Shetty had minimal communication with the team.

Even in the two town hall meetings following the heist, Shetty has continued to fumble and deviate from what should have been the appropriate course of action. This includes the critical step of bringing more transparency to the process, especially considering the plight of over 4.4 Mn investors impacted in the heist.

While withdrawals were halted immediately, INR deposits remained open for a few days even after the hack. 

Many investors, unaware of the situation, continued to deposit INR. However, these very investors are now unable to withdraw their funds in full and will only receive up to 66% of their money, with the rest potentially being lost.

Though Shetty claims to have lodged a complaint on July 19, the FIR was registered two weeks later, i.e. on August 5, 2024. A DCP from Karnataka confirmed to us that once an online cybercrime complaint is made, the FIR is registered immediately after the complaint copy is shared. Given the magnitude of the stolen amount, the FIR should have been registered instantly.

Inc42 spoke to Hemant Tiwari, DCP, IFSO, Delhi Police who is supervising the investigation. Tiwari said that the complaint was registered only a couple of days before August 5, 2024. Initially, the WazirX team had filed the complaint with Mumbai Police where the FIR was not registered and the complaint with Delhi Police came after this, and the FIR was registered thereafter. 

To date, Shetty has not provided any evidence to support his claims regarding the timing of the complaint.

About the investigation, Tiwari hinted at onboarding a blockchain analysis firm. “The investigation is still in the initial stage, hence I won’t be able to disclose much in this regard,” he added. 

Moreover, all proof-of-reserve reports published by WazirX consistently claimed a 1:1 reserve ratio, meaning that WazirX had more assets than liabilities. However, when asked for specific figures, WazirX failed to respond.

In its affidavit, WazirX provided details of the assets it has remaining.

However, this did not match the data shown by Coin Gabbar’s WazirX tracker. Multiple users have reported this.

The same issue extends to multiple tokens.

Investors that Inc42 spoke to raised a series of concerns, including why they were not consulted before onboarding Kroll. 

“WazirX has set aside INR 100 Cr to cover legal expenses and bring Kroll on board for managing the moratorium process. This is investors’ money, not the company’s funds. Yet, investors were not taken into confidence for such major decisions,” said Ravi Kumar, a Noida-based investor who had invested over INR 2.5 Lakh on the WazirX platform.

Unocoin’s cofounder Sathvik Vishwanth also agreed that WazirX should not have kept INR 100 Cr set aside to fight the legal battle and said it should not have applied for a moratorium. “Once the business stops, everything stops. Instead, WazirX could have immediately returned the remaining amount to the users and could have continued the operation. This could have offered better chances to recover in the next 12 months.”

The Buck Needs To Stop With The Government

Can the Indian government and its investigative agencies continue to hide behind the claim that crypto is an unregulated territory? And what even happens to cases of crypto scams and frauds where investors have been waiting for years for resolutions or a verdict. 

“Whose responsibility is it to regulate cryptos if taxation is allowed? The Indian government has been charging 30% tax on all profits, even when there are losses on other crypto transactions. For what? If they can’t step up and help investors in these unprecedented times?” asked Praveen Singh, an investor with the WazirX platform. 

It’s worth noting that since last year, the Financial Intelligence Unit (FIU) under the Ministry of Finance has been tasked with keeping records of all crypto exchanges and entities operating in the Indian market. This essentially means that any crypto entity must have FIU clearance to operate in India.

Binance has alleged that since Zanmai Labs, and not Binance, applied for the FIU licence, Zanmai Labs should be held accountable for the WazirX fiasco.

However, the bigger question remains: Why have no investigative agencies like the CBI or others come forward to investigate a case that impacts the lives of 4 Mn Indians? Many of whom have invested precious life savings into crypto and are paying the requisite taxes for trading in cryptocurrencies. 

Advocate Deshpande claims that the RBI and the Indian Government as well have time and again clearly mentioned the risk involved in cryptocurrencies. However, this warning sign is not enough to prevent investors from becoming victims of such attacks.

Now that India is home to one of the biggest crypto heists in history, it is high time that the Indian Government takes serious action on regulating the crypto space by introducing crypto-specific laws.

[Edited By Nikhil Subramaniam]

The post The End Of WazirX: The $234 Mn Heist, Nischal Shetty Under Fire And The Blame Game appeared first on Inc42 Media.

Ecommerce is not what it used to be before 2020. But Amazon India is stuck in the slow lane, in a pre-pandemic world, which has put the company on a backfoot, even though it is Amazon we are talking about with all the resources of the world at its disposal.

So why has Amazon not done what Flipkart is doing now, what BigBasket is betting big on, what JioMart wants to do and what Blinkit, Zepto and Instamart seem to be so sure about? Why is Amazon not in the quick commerce game, and even if it does jump in now, will it be too little too late?

We try to answer these questions, but after a look at these deep-dive into three Indian giants from the past week:

• Into Swiggy’s Core: Alongside cofounders Nandan Reddy and Phani Kishan, cofounder and CEO Sriharsha Majety has built a team that sees quite a few experienced professionals from the world of ecommerce, consultancy and technology products. Here are the people taking the food delivery giant to the IPO pole 
• Myntra’s GenZ Mantra: With a sharp focus on India’s growing Generation Z base, fashion giant Myntra has not only added new features to its platform but is also looking at exclusive brand partnerships specifically for a younger audience. Will this help Myntra win over GenZ loyalty?
• Who’s Navigating Shiprocket? The Zomato-backed unicorn has gone from a third-party logistics tech player to a one-stop ecommerce enabler with a range of services for merchants and large FMCG companies. But who are the people steering the company beyond the INR 1,000 Cr+ revenue milestone? Here’s a look

Amazon India’s Quick Commerce Miss 

No one would have batted an eye at Amazon not having a quick commerce service if it wasn’t for the past year. Zepto claims its revenue has grown over five-fold to over INR 10,000 Cr in FY24 from about INR 2,000 Cr in FY23, while Blinkit’s revenue for FY24 was over INR 2,300 Cr as against INR 730 Cr in FY23.

These gains have not gone unnoticed, even though there is an acknowledgement that the YoY growth is only this explosive because of the relatively small size of the market thus far, and the fact that only a few players were offering the quick commerce service till FY24.

With competition increasing, we expect the growth rate to slow down for the primary players — i.e Swiggy Instamart, Zepto and Blinkit — even as others catch up on market share.

In fact, most analysts believe that the 2024 festive season will be the first real test of whether quick commerce is ready for the big transition. We already know that platforms have expanded to Tier II and smaller cities in a bid to find new customers for the festive season.

Given this, Amazon’s absence from the quick commerce market could be a major strategic failure.

But Flipkart Sees The Merit

Complicating matters is that Flipkart is bullish on Minutes, which has gone from a pilot to a nationwide launch rather soon. Tata-owned BigBasket is also moving to a quick commerce-only format, and will transition from slotted deliveries to the on-demand model soon.

The significance of quick commerce is clear from the fact that Flipkart wants to start off operations with 100 stores. That kind of commitment underlines the fact that quick commerce has gone from the product-market fit stage to the scale-up stage.

India’s ecommerce market grew 18-20% by value in the first six months of this year, with grocery sales surging over 38%, driven largely by a sharp uptick in quick commerce, according to data sourced by 1Lattice and Datum Intelligence.

In a research note published in August, brokerage firm UBS said Flipkart has an advantage of supply chain when it comes to Minutes and this is why the company is banking on the strategy of lower pricing as a market entry plan.

As per 1Lattice, almost 40% of online grocery sales now come from quick commerce, which again underscores why Amazon needs to focus on quick commerce for the existing Amazon Fresh vertical, which is stuck on two-hour delivery.

Plus, now quick commerce platforms have the right scale and leverage to sign up deals with D2C and new-age brands, which puts Amazon further on the backfoot.

D2C brand Drools CEO Shashank Sinha said at Inc42’s D2C Summit last month that Flipkart Minutes will outdo other quick commerce players in smaller towns and cities given the brand recall for Flipkart. Similarly, Swiss Beauty cofounder Mohit Goyal highlighted that quick commerce has become the preferred mode for emergency beauty purchases, a category that was never being catered to before 10-minute deliveries.

So some might say Amazon has already missed the bus.

Quick Commerce On The Ascendancy

According to UBS, Blinkit leads the India market with 40%-45% market share as of July 2024, followed by Swiggy Instamart (20-25%), Zepto (15-20%) and BigBasket (10-15%). Flipkart, with its massive user base and huge marketing machinery, will certainly enjoy an advantage when it comes to acquiring users for quick commerce.

So, how much room will Amazon have, even if it makes a belated entry, as was reported in late August.

And to make matters worse, Amazon is also losing out in terms of revenue from non-grocery categories. For quick commerce startups, categories such as household and kitchen equipment, electronics, smartphones (iPhone 16, for example) are the biggest focus areas.

They want the consumer to only order from quick commerce platforms for all their online shopping needs. This festive season, most QC platforms are expected to offer more than 20,000 SKUs. And with this expansion into new categories, quick commerce players are eating Amazon’s lunch.

That was the case with Flipkart as well, before the company decided to invest in Minutes. Amazon needs to read the room, and perhaps it’s starting to do so.

This week, Amit Agarwal, Amazon’s SVP for emerging markets, announced that Amazon veteran Samir Kumar will take on the responsibility to lead India as the country manager, replacing Manish Tiwary, who stepped down in August and will transition out of the company in October.

The new country head, who has been with Amazon since 1999, was an integral part of the team that launched Amazon India in 2013, and now Kumar has to take the reins at a critical juncture. He will oversee Amazon India’s other key executives — Saurabh Srivastava (categories), Harsh Goyal (everyday essentials), Amit Nanda (marketplace), and Aastha Jain (growth initiatives).

These executives have the tough job of ensuring that Amazon’s ecommerce investments in India are not in vain.

What could really hurt Amazon is that quick commerce companies dominate in the metros, where Amazon has a lead over Flipkart. Losing ground here is not just damaging for Amazon in the short term but also erodes its moat over its long-time rival.

In the past few years, Amazon has focussed on AWS as a revenue channel for the Indian market, particularly as startups grew in scale and stature. But for most Indians, Amazon is the online shopping destination first, and then a video streaming service, and most might not even know what AWS is.

Any slip on the ecommerce front will be very damaging for Amazon as a brand in India. It will also hurt its Prime Video business which many users get bundled with Amazon Prime subscriptions.

For Amazon India, this festive season is going to be an unprecedented experience. It’s no longer about competing with Flipkart, like it was till 2023. Yes, Meesho entered the picture in 2023, but the 2024 festive season will be the first time that Amazon will have to compete with about half-a-dozen well-capitalised and scaled-up companies for market share.

Can Amazon India and its new leadership tackle this cohort? It’s certainly going to end in fireworks — one way or the other.

Join Us For MoneyX This Week 

The second edition of MoneyX by Inc42 is just around the corner and we are hosting a one-of-a-kind gathering with 300+ leading investors under one roof to decode the future of startup investments in India.

With prominent investors such as Info Edge’s Sanjeev Bikhchandani, Accel’s Prashanth Prakash, Peak XV’s Mohit Bhatnagar, Stellaris Venture Partners’ Ritesh Banglani, Artha Venture Fund’s Anirudh A. Damani  and a host of other LPs, GPs and family offices

Find out more about our stellar lineup of speakers, and grab your pass for MoneyX here.

Sunday Roundup: Tech Stocks, Startup Funding & More

• Startup funding saw a major uptick this past week, with a total of $447.5 Mn invested across 22 deals, thanks to Physics Wallah’s mega round
• OYO has expanded its footprint in the US with the acquisition of G6 Hospitality, the parent entity of Motel 6 and Studio 6 brands, from Blackstone Real Estate for $525 Mn
• Listed gaming giant Nazara plans to raise another INR 900 Cr from SBI Mutual Fund, CaratLane founder Mithun Sacheti and others to fuel strategic acquisitions an business expansion

• Looking to add to its pile of acquisitions, edtech unicorn Physics Wallah has raised $210 Mn (about INR 1,756.7 Cr) in its Series B round, led by Hornbill Capital, at a post-money valuation of $2.8 Bn
• Delhi Police’s Economic Offences Wing (EOW) has made another arrest in the investigation related to the INR 82 Cr fraud at BharatPe, taking custody of Ashneer Grover’s relative Deepak Gupta
• India Lifestyle Network, which runs MensXP, iDiva, and Hypp, is looking to separate from parent company Mensa Brands, two years after Mensa acquired the three content platforms

The post Amazon India Caught In Slow Lane appeared first on Inc42 Media.