With plans to double its sales over the next three to four years, Reliance Retail, the retail arm of Reliance Industries Ltd (RIL), continues to be a key driver of the group’s growth. 

Led by Isha Ambani, Reliance Retail operates both online and offline and across diverse verticals, including grocery, electronics, fashion apparel, beauty, footwear, food, jewellery, and lifestyle.

In Q1 FY25, Reliance Retail’s revenue rose 6.6% year-on-year (YoY) to INR 66,260 Cr, even as the numbers reveal a slight sequential dip from INR 67,610 Cr in the previous quarter. 

The company’s digital commerce and new commerce businesses contributed 18% of the total Q1 FY25 revenues, reflecting its efforts to integrate online and offline channels. Despite a 7% sequential decline in profit, Reliance Retail posted a 4.6% increase in net profit year-on-year to INR 2,549 Cr in Q1 FY25.

While grocery and consumer electronics have been key drivers of growth, Reliance Retail seems to have its sharp focus on fashion and lifestyle, too. With an expanding portfolio of brands, including Yousta, Azorte, and Gap, the company is actively scaling its presence in this segment. 

Earlier this year, Reliance Retail signed a licencing agreement with UK-based fast fashion retailer ASOS to bring the brand to India, challenging the dominance Myntra and the ilk in the GenZ space and the emergence of D2C fast fashion brands. 

Notably, the strategy to increase its folio of brands has helped Ajio, the company’s B2C online fashion platform, add nearly 2 Mn new customers in Q1 FY25. In addition, Jio Luxe, its premium luxury segment, now hosts over 700 global brands, making it a leading destination for luxury fashion in India. Not just this, its catalogue for the overall online fashion business has grown more than 20% year-on-year.

However, not all is going as planned. The company is facing headwinds due to a fall in discretionary spending of users in the fashion and lifestyle segments.

Despite this, the president & CEO of Reliance Retail Fashion & Lifestyle, Akhilesh Prasad, told Inc42 that the company will remain focussed on expanding its store count and digital presence to cash in on growth opportunities in India’s evolving retail space.

So, what’s the CEO’s plan when it comes to making a significant leap in the fashion and lifestyle space? More so, what made him recite the theory of “survival of the fittest” in a tête-à-tête with Inc42?

Here are the edited excerpts…

Inc42: The fashion and lifestyle segment has seen noteworthy growth over the past few quarters on the back of the company’s omnichannel strategy and multiple partnerships. What have been the key growth drivers so far, and how do you plan to sustain this momentum?

Akhilesh Prasad: We are part of the Reliance group, therefore we aren’t resource-constrained in any way. However, we may be formula-constrained in the sense that it could take some time to decode what works in the market and what people are looking for. 

What we’ve understood is that consumers are very aware of fashion. They want to consume it if it’s offered at a price point they can afford. Now, we’ve reached some maturity in the range we offer. While we’ve already started adding footwear, we now plan to add categories like beauty and personal care, etc. to provide a complete range of youth offerings. 

Inc42: Ajio has expanded its customer base and catalogue. How do you ensure it continues to stand out in the competitive fashion industry?

Akhilesh Prasad: Competition is crucial for market growth. If there’s no competition, the market will stop growing. So, we welcome competition. Competition is a good metric and does not mean that the industry has saturated in the absence of innovation.

For example, a Fiat car used to be sold in India, and people might say it became competitive when more brands entered the market. Now, we have 25 different brands, but we sell 150 times the number of cars we used to sell back then. 

It’s about survival of the fittest. The market is never a limitation, but what matters is if you’re fit to survive in it. For those who are fit, competition is the best thing. It all boiled down to the mindset — are you a winner, a survivor, or a complainer?

Inc42: Mono-brand websites like Tumi and Pottery Barn are becoming popular. How does this align with Reliance’s overall strategy?

Akhilesh Prasad: Mono-brand websites will be big because they offer digital access to customers who can’t reach physical stores. Direct-to-consumer (D2C) is an individual way of offering products, and specialists will enter the market as D2C brands. It’s going to be a significant play.

Inc42: Reliance has also acquired stakes in brands like Ed-a-Mamma. How do these acquisitions align with your long-term strategy?

Akhilesh Prasad: We play in all segments of the market — mass, economy, mid-premium, and bridge-to-luxury. We acquire brands that add to our offerings in any of these segments. Ed-a-Mamma, for instance, is in the premium and bridge-to-luxury segment and thus serves our cause.

Inc42:  How is Reliance leveraging AI and data analytics to enhance the customer experience in the fashion and lifestyle segment?

Akhilesh Prasad: We are moving towards full automation in fashion. We will use AI for predictive models in designing, speeding up production, and improving logistics. However, human intelligence will still play a crucial role at every stage. 

Inc42: What are your plans for the fashion and lifestyle segment, particularly digital sales platforms, in the next year?

Akhilesh Prasad: Digitally, we cover all PIN codes in the country, so our reach extends to even the remotest of the villages. As for physical stores, no one in India offers a network as extensive as ours. We’ve covered towns, districts, state capitals, A-class cities, mini metro citiess, and metros. We aim to be present in every segment.

For example, we opened our first store in a small town, Guntur, when nobody else had. In 10 years, we now have six stores there. That’s how markets grow.

Inc42: How are new formats like Azorte and Yousta performing, and what are their prospects for future growth?

Akhilesh Prasad: All the formats we’re in will see growth. We have a population of 1.4 Bn people, and the demand within India alone makes us one of the largest markets in the world. 

We’ve segmented the market and are catering to it through both online and offline channels. Our goal is to reach every customer, whether it’s a clerk’s son in a small town or someone in South Bombay. Every customer is important to us.

Inc42: Has the lifestyle and fashion segment seen a turnaround ahead of the festive season, especially the slowdown earlier this year?

Akhilesh Prasad: The festive season has been great. We’ve seen huge growth in Kolkata during Durga Puja. So, how can there be a decline in demand when the festive season is thriving?

It’s not that demand has decreased; it’s more about whether you’re catering to the customer’s changing needs. The market evolves. For example, if you only make luxury jeans, but the market shifts to cargo pants, you’ll think the market is shrinking. But it’s not, it’s just moved on to something else.

[Edited By Shishir Parasher]

The post Only The Fittest Will Survive In The Indian Fashion Industry: Reliance Retail’s Akhilesh Prasad appeared first on Inc42 Media.

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.

Following the footsteps of its sister concern Ola Electric, ride-hailing major Ola Consumer has reportedly sped up its public listing plans.

As per The Arc, the mobility major has sought approval from investors to turn into a public entity. The company is also said to be finalising with bankers to handle the public issue. 

Notably, turning into a public company from a private one is the first step towards a public listing.

“They want to leverage the goodwill around the listing of Ola Electric to take the cabs business public. However, that might be hard now, considering Ola Electric’s recent share slide,” a source reportedly said.

Inc42 has reached out to the company for a statement. The story will be updated upon receiving a comment from the company. Besides, the report added that founder and CEO Bhavish Aggarwal will also continue to helm the operations of Ola Consumer. 

Meanwhile, an internal investor report accessed by The Arc revealed that Ola Consumer clocked a gross order value (GOV) of INR 3,000 Cr in the first quarter (Q1) of the financial year 2024-25 (FY25). 

As per the report, the core mobility vertical, which encompasses the ride-hailing business, contributed 77% to Ola Consumer’s cumulative GOV, or INR 2,300 Cr. Ola Consumer is said to take a 24-28% cut (commission) of the GOV, which forms its revenue. 

The company’s financial services arm accounted for the rest. It offers financial services through its arm, Ola Financial, which offers small-ticket loans and UPI payments.

The company reportedly posted an earnings before interest, taxes, depreciation, and amortisation (EBITDA) loss of INR 77 Cr in the quarter ended June 2024. 

The internal investor report also outlined that the ride-hailing giant completed 11 Cr customer rides during the quarter under review, translating into 12 Lakh rides every day. 

The company’s plans for an IPO have come to the fore just two months after the company rebranded Ola Cabs to Ola Consumer. In the same month, sister Ola Electric made a muted stock market debut as shares of the electric vehicle (EV) major listed on the BSE at INR 75.99 apiece against its IPO issue price of INR 76. 

ANI Technologies Pvt Ltd, the parent entity of the cab-hailing startup, trimmed its losses by nearly half to INR 772.2 Cr in the financial year 2022-23 (FY23) against INR 1,522.3 Cr in FY22. Meanwhile, sales jumped 42% year-on-year (YoY) to INR 2,799.3 Cr in the fiscal under review as from INR 1,970.4 Cr in FY22.

The post Ride-Hailing Major Ola Consumer Puts IPO Plans In Speed Lane appeared first on Inc42 Media.

CaratLane founder Mithun Sacheti and brother Siddhartha Sacheti, CEO of Jaipur Gems, have set up an investment firm Finqube Capital Private Limited looking to institutionalise their angel investments, as per sources familiar with the matter.

Registered in Chennai, Finqube will handle the duo’s investments in early and growth stage companies.

As per sources, the two investments by the Sacheti brothers, including their participation in listed gaming giant Nazara’s INR 900 Cr preferential rights issue as well as the investment in Ippopay are from the new firm, which could take on the shape of a family office or a corporate venture fund.

Mithun Sacheti declined to elaborate on Finqube Capital’s plans, and told Inc42 that there are no plans to launch a separate fund at the moment.

However, as per incorporation documents of Finqube Capital Private Limited, the company has been registered as an investment firm for acquisition, investment purposes. It’s not yet clear what structure will be adopted by Finqube.

“This could be a private investment vehicle or a corporate venture fund backed by Jaipur Gems. The brothers are in the process of setting up teams for this firm,” sources close to the Sacheti family said.

It must be noted that Jaipur Gems is the legacy business set up by the Sacheti family in 1974. While the brothers joined this family business initially, Mithun went on to set up CaratLane as a new-age jewellery platform.

Siddhartha’s son Yash Sacheti is closely involved with Finqube and is the primary contact for the entity, as per MCA disclosures. Plus, according to his LinkedIn profile, Yash is currently the head of the Sacheti Family Office.

Notably, Mithun and Siddhartha are both active angel investors in Indian startups. Their portfolio includes investments in Ippopay, Bombay Shirt Company, Nazara and Oro. Besides investing with his brother in these startups, Mithun has separately backed home decor startup Arrivae, cybersecurity SaaS platform Securden, marketing tech startup Paperflite among others.

In February this year, Titan completed its acquisition of CaratLane, which gave Mithun a remarkable exit, netting returns of INR 4,621 Cr for his 27% stake.

Mithun has publicly stated his ambition to become a full time investor and is looking to add to his various investments across fintech, SaaS, gaming, ecommerce and other sectors.  He also said that he is keen on investing in startups in the INR 100 Cr-INR 200 Cr revenue range in the D2C category.

While Finqube Capital is yet to launch officially, Mithun is the general partner at Singularity Growth Ventures, which is backed by Madhusudhan Kela. The CaratLane founder is also an anchor investor or limited partner in early stage fund Xeed Ventures.

Sacheti Brothers Double Down On Investments

It looks like the Sacheti brothers are following the playbook created by Zerodha founders Nithin Kamath and Nikhil Kamath who set up Rainmatter Fund in 2016. Over the past few years, Rainmatter has invested in fintech, climate tech, media and agritech sectors. Rainmatter currently has a corpus of INR 1000 Cr

Besides Rainmatter, Nikhil announced the launch of WTF Fund to invest in entrepreneurs under the age of 25.

While Zerodha was a completely bootstrapped business, the Sacheti brothers have the experience of running a legacy family business for many decades.

“There is a similar trajectory, and Sacheti brothers could very well follow the Kamath brothers. Nithin and Nikhil Kamath were both active angel investors before they formally launched Rainmatter” a fintech founder turned VC manager added.

Modelled as a corporate venture fund, Rainmatter has deployed INR 400 Cr across various portfolio companies, mostly early-stage bets.

Sacheti has often talked about the need for more VCs with an operator or founder mindset as this allows them to take nuanced bets on startups.

Mithun’s exit from CaratLane is one of the largest in the Indian startup ecosystem for a founder, after Sachin Bansal and Binny Bansal made a huge windfall from the Walmart acquisition of Flipkart in 2018.

Sachin Bansal and Binny Bansal have gone on to become serial investors in many startups after their successful exit from Flipkart. Other entrepreneurs such as Freshworks CEO Girish Mathrubootham have also floated funds. Mathrubootham’s Together Fund largely invests in early stage SaaS startups.

Similar to the Sacheti brothers, Snapdeal founders Rohit Bansal and Kunal Bahl set up Titan Capital to manage their angel investments, which were being managed separately previously. Titan Capital has gone on to become an institutional VC firm with multiple funds, and has a SEBI-registered AIF licence for its growth-stage fund.

[Edited By Nikhil Subramaniam]

The post Exclusive: CaratLane Founder Mithun Sacheti Sets Up Investment Firm appeared first on Inc42 Media.

Hospitality unicorn OYO has initiated a major overhaul in its top leadership, promoting five executives across technology, product, strategy, operations and distribution verticals.

To start with, Sonal Sinha has been appointed as the chief operating officer of OYO’s international business, said the company, in a statement.

Sinha joined OYO in 2015 and previously served as chief financial officer for the international business. She is said to be critical to OYO’s success in the US market post the pandemic.

Further, Rachit Srivastava has been elevated to the position of COO of OYO’s vacation homes business in Europe. He will be taking over from Ayush Mathur, who is leaving the company to start his own venture.

Shashank Jain will take over as head of technology and online revenue for the global business. He previously led product development for customer acquisition and retention, and is credited with leading app development for DanCenter and Belvilla, two of OYO’s brands in Europe.

Meanwhile, Pankhuri Sakhuja, who had been overseeing OYO workspaces vertical and hotel acquisition for some overseas markets, will now lead German home listings business Traum and coworking platform Innov8. 

The hospitality major has also announced that Abhinav Sinha, Global COO and chief product officer, will be moving to an advisory role, effective January 2025. Sinha is looking to launch his own startup, as per the company.

Further, OYO has promoted Ashish Bajpai to head of revenue & global OTA. In his current role, Bajpai will lend his expertise in driving OYO’s revenue growth through both direct and indirect channels and increasing the visibility and distribution of the group’s hotels and homes worldwide.

Commenting on the top deck rejig, founder and CEO Agarwal said, “As we pursue our growth objectives, agility and decisive action remain at the core of our strategy. Our leaders are continuously adapting and expanding their roles to stay ahead of the evolving market dynamics and drive our business forward.”

OYO is looking to go public as soon as next year, after shelving its plans twice. The company plans to refile its draft red herring prospectus (DRHP) with SEBI after completing the ongoing refinancing of its $660 Mn Term Loan B.

The company turned profitable in FY24 as it managed to trim its expenses by cutting employee costs and growing its top line. The unicorn posted a net profit of INR 229.5 Cr in FY24 as against a net loss of INR 1,286.5 Cr in the previous financial year.

Going ahead, OYO is looking to expand its premium inventory as well as its international base. 

Last month, OYO acquired G6 Hospitality, the parent entity of Motel 6 and Studio 6 brands, from Blackstone Real Estate for $525 Mn (around INR 4382.72 Cr) in an all-cash transaction.

Besides this, OYO-owned Innov8 has forayed into the office management space mirroring the business models of the likes of publicly-listed Awfis and IPO-bound Smartworks.

The post OYO Rejigs Operations, Tech, Revenue Leadership To Drive International Biz appeared first on Inc42 Media.

Over four months after the launch of its JioFinance app in beta mode, Jio Financial services has added multiple new offerings and launched an upgraded version of the app. 

In a statement, the company said that it has added a wide array of financial products such as loan on mutual funds, home loans (including balance transfers), and loan against property since the launch of the beta mode. 

The company claimed that over 6 Mn users have “experienced” the JioFinance app so far and it incorporated the feedback received from these users to improve the app.

“With the refreshed JioFinance app, which is truly made in India, and with many more new new features coming soon, we are well on our way towards becoming a trusted financial companion for the people of India, helping them fulfill their aspirations with our comprehensive suite of financial products,” said Hitesh Sethia, managing director and CEO, of Jio Financial Services. 

The app is available on Google Play Store, Apple App Store, and MyJio. In its beta launch, the app integrated digital banking, UPI transactions, bill payments, and insurance advisory.

The company claimed that users can open a digital savings account with Jio Payments Bank Ltd (JPBL) in under 5 minutes via the app. It said that over 1.5 Mn customers currently use the app to manage their routine, recurring expenses using their JPBL account.

The JioFinance App also provides users with a consolidated view of their bank accounts and mutual fund holdings. It also offers 24 insurance plans, including life, health, two-wheeler, and motor insurance, the company said.

From digital lending, banking and insurance to broking and asset management, Jio Financial Services aims to disrupt the fintech sector in the country by leveraging technology and Jio’s wide customer base.

In August, Jio Financial Services marked its entry into the international market by expanding the capabilities of its JioFinance App. The app now enables Indian travellers to make payments at select tourist attractions in Paris, including ticket purchases for the Eiffel Tower and in-store shopping at Galeries Lafayette Paris Hausmann.

Earlier this month, Jio Financial Services and BlackRock received in-principle approval from the Securities and Exchange Board of India (SEBI) to establish a mutual fund business. 

The company has also signed joint venture agreements with BlackRock to set up wealth management and brokerage ventures.

On the financial front, Jio Financial Services reported a net profit of INR 313 Cr in Q1 FY25, a 5.7% decline from INR 332 Cr in Q1 FY24. Operating revenue rose slightly to INR 418 Cr from INR 414 Cr in the year-ago quarter. 

The post Jio Financial Services Expands JioFinance App With New Offerings appeared first on Inc42 Media.

Listed jewellery retailer Senco Gold is reportedly in talks to acquire “struggling” online jewellery brand Melorra for INR 40 Cr to INR 50 Cr. 

Sources told Livemint that the valuation has yet to be finalised and the deal size could also change. Another source reportedly said that due diligence is currently underway and the transaction would materialise upon “satisfactory completion of the process”. 

As per the report, Melorra has held talks with multiple buyers in recent months for a potential acquisition. 

Meanwhile, the acquisition will help the Kolkata-based jewellery retailer shore up its presence in the ecommerce space. 

Founded in 2016 by Saroja Yeramilli, Melorra sells lightweight and fashionable gold and diamond jewellery via its online platform. The company claims to deliver products in India as well as the US, the UK, Europe and the UAE. 

Backed by the likes of Lightbox, Norwest Ventures, 100Unicorns and Value Quest, Melorra has raised more than $88 Mn to date. Despite raising big funds, the company continues to be a loss-making venture. 

The Bengaluru-based startup saw its losses surge 73% to INR 106.7 Cr in FY22 against INR 61.4 Cr in FY21. Meanwhile, sales grew 363.6% to INR 364.4 Cr in FY22 from INR 78.6 Cr in FY21. 

The company is yet to file its financial statements for FY23 and FY24. Such has been the funding crunch at the company that it reportedly raised a bridge round of $1.1 Mn from existing investors in June this year at a tenth of its erstwhile valuation. 

The company was estimated to be pegged at $120 Mn during its last funding round in 2021. There have also been reports that the company has stopped paying salaries to its employees.

It competes with Tata-owned CaratLane and BlueStone in the Indian online jewellery landscape. The report of a likely funding has come at a time when many of Melorra’s rivals have raced ahead of it. Tata-owned Titan acquired an additional 27.18% stake in CaratLane for INR 4,621 Cr at a nearly INR 17,000 Cr valuation in August 2023, giving hefty exits to its cofounder. 

Meanwhile, BlueStone is lining up plans to list on the bourses and raised INR 920 Cr as part of its pre-IPO round from the likes of Peak XV and Prosus earlier this year. Last month, Giva raised INR 100 Cr in an extended Series B round from Premji Invest. 

The post After Raising $88 Mn, Melorra May Sell For Pennies On The Dollar appeared first on Inc42 Media.

Ride-hailing unicorn Rapido is reportedly set to raise $60 Mn (INR 503 Cr) from Dutch investment major Prosus in a mix of primary and secondary share sales.

Sources told Entrackr that the terms of the deal have already been finalised, adding that the fundraise will be part of the mobility giant’s ongoing $200 Mn round.

“Prosus will acquire a $60 Mn stake in Rapido. The terms of the deal have been finalized, and it will also enable partial exits for early backers,” a source reportedly said. 

Another person familiar with the development reportedly said that the $60 Mn round will mark the conclusion of Rapido’s Series E round. As per the report, sources also hinted that there will be no change in the company’s valuation. 

This comes a month after Rapido officially announced that it secured $200 Mn as part of its Series E round led by existing investor WestBridge Capital. The fundraise catapulted the company into the unicorn club with a valuation of $1.1 Bn.

Founded in 2015 by Rishikesh SR, Pavan Guntupalli, and Aravind Sanka, Rapido allows users to book bike taxis and autos. It also launched its cab service in some cities in December last year. Besides, it also offers peer-to-peer delivery services via Rapido Local. 

Backed by the likes of foodtech major Swiggy, TVS Motor Company, Shell Ventures and others, the startup has raised more than $625.75 Mn to date. 

On the financial front, Rapido reported a net loss of INR 674.5 Cr in the financial year 2022-23 (FY23), up 50% YoY. Meanwhile, operating revenue jumped to INR 443 Cr in the fiscal against INR 144.8 Cr in FY22.

The development comes at a time when Prosus has been doubling down on its India investments. Just days ago, reports surfaced that the investment giant was looking to pump $30 Mn into the hyperlocal services startup Urban Company in a secondary deal, giving a partial exit to Bessemer Venture Partners.

In August, Prosus participated in omnichannel jewellery brand Bluestone’s INR 900 Cr pre-IPO round and invested INR 350 Cr in the company. The investor is also expecting a windfall from foodtech major Swiggy’s IPO, where it plans to sell 11.8 Cr shares as part of the OFS component.

The post Rapido To Get Another Tank Full Of Investments, Likely To Raise $60 Mn From Prosus appeared first on Inc42 Media.

Two years after acquiring a majority stake in D2C feminine hygiene startup Sirona, content-to-commerce major The Good Glamm Group has now announced the complete acquisition of the startup. 

In a statement, the company said that content-to-commerce finalised the deal at INR 450 Cr ($60 Mn) for the remaining 49.42% stake in the company, giving an all-cash exit to founders Deep and Mohit Bajaj.

Notably, The Good Glamm Group last invested INR 100 Cr in Sirona in December 2021 through primary and secondary investments. This investment was made against a 41.15% stake in Sirona. 

The company later further increased its stake in the femtech startup to 50.58% by the end of FY23 for an undisclosed amount.

Interestingly, both the cofounders stepped down from their active roles in Sirona earlier this year. The latest deal will see the cofounders resign from their respective roles as active directors. 

Besides, per The Good Glamm Group, the transaction will benefit Sirona’s employees through accelerated ESOP vesting. 

“It hasn’t been an easy road—bootstrapping, overcoming fundraising challenges, breaking taboos, and dealing with copycats – we have seen it all. This all-cash acquisition feels like validation for all the hard work,” Deep said. 

Founded in 2015, Sirona sells female hygiene products such as herbal pain relief patches, period stain remover, oxo-biodegradable sanitary napkins and menstrual cups.

The femtech startup is said to have tripled its revenues since 2022. Meanwhile, Sirona is yet to disclose financial results for fiscal 2023-24 (FY24).

In its last financial filing with the MCA, the feminine hygiene startup’s net loss went up 97% to INR 33.10 Cr in FY23 from INR 16.83 Cr a fiscal ago. Operating revenue grew 81% to INR 75.28 Cr during the fiscal under review from INR 41.51 Cr in FY22. 

As for the Good Glamm Group, net losses ballooned to INR 917 Cr in FY23, up 153% from the INR 362.5 Cr it incurred in FY22. The startup’s revenue increased 2.8X in FY23 and operating revenue stood at INR 603 Cr, up 185% YoY. 

The post The Good Glamm Group Buys Out Remaining Stake In Femtech Sirona For INR 450 Cr appeared first on Inc42 Media.

Offline mobile payments startup ToneTag is reportedly in early-stage discussions with Mumbai-based venture growth investor Iron Pillar to raise at least $50 Mn (about INR 420 Cr) in a mix of primary and secondary share sale. The funding round will also see new investors join the startup’s cap table.

“Iron Pillar may co-lead the round along with other investors, with whom talks have begun,” Economic Times reported quoting a source. 

As per the report, the funding round will see a primary capital infusion of $30-$35 Mn. The transaction is also expected to see the startup’s valuation more than double from its last valuation of $100 Mn.

ToneTag declined to comment on Inc42’s queries on the development. 

Founded in 2013 by Vivek Singh and Kumar Abhishek, ToneTag offers audio-based authentication and proximity payment solutions for online and offline commerce. It also develops integrable software to deploy voice-based digital payment systems. The startup has raised a total funding of over $10 Mn till now from investors like Amazon, Mastercard and Elevate Innovation Partners.

Last year, Iron Pillar closed its ‘Iron Pillar Fund II series’ of funds at $129 Mn. The VC firm had plans to invest in Series B and Series C stage SaaS startups operating in India.

Since then, the firm has made one investment in supply chain and logistics SaaS startup Pando. The US-based startup, which operates out of Chennai, raised $30 Mn in its Series B round back then.

Founded in 2016, Iron Pillar offers growth capital and assistance to enterprise tech and consumer tech startups to expand globally. It mainly leads Series B and C funding rounds and later doubles down on the breakout businesses with 5X to 10X of its initial investment. Its portfolio features startups like BlueStone, Curefoods, FreshToHome, Uniphore, and Skill-Lync. 

The development comes at a time when startup funding is on the rise. Indian startups cumulatively raised $8.7 Bn across 766 deals in the first nine months of the ongoing calendar year. This was a 20% increase from the $7.2 Bn raised via 691 deals in the same period last year.

The post Amazon-Backed Fintech Startup ToneTag In Talks To Raise $50 Mn appeared first on Inc42 Media.

Shares of Ola Electric slumped as much as 5.8% to INR 90.19 during the intraday trading on the BSE on Thursday (October 10) amid increasing government scrutiny of the two-wheeler EV startup over customer complaints.

The stock recovered slightly to end today’s trading session at INR 90.81, down 5.19% from the previous close. As many as 4.9 Cr shares were traded today and the company’s market capitalisation stood at INR 40,054.75 Cr (around $477 Mn) at the end of the day. 

Earlier, it was reported that the Ministry of Heavy Industries (MHI) has written to the Automotive Research Association of India (ARAI) to verify if the EV maker is honouring warranties and maintaining the requisite service centres. 

The Bhavish Aggarwal-led company has been facing a lot of criticism due to rising customer complaints about its aftersales service. On Sunday, Aggarwal was involved in a social media spat with comedian Kunal Kamra. While Kamra flagged customer complaints about the company’s escooters, Aggarwal accused him of taking money to criticise the company.

The company’s shares tanked 9% on October 7. Later, Ola Electric said that the Central Consumer Protection Authority (CCPA) issued a show cause notice to it for alleged violation of consumer rights, misleading advertisement, and unfair trade practices.

Since reaching a post-listing high of INR 157 in August, the company’s shares have tanked almost 42.1%. However, the stock is still trading over 19% higher from its listing price of INR 75.99 on August 9. 

Ola Electric is also facing pressure from competitors in terms of sales. Its escooter registrations dropped 11% month-on-month (MoM) to 23,965 units in September, marking its lowest monthly vehicle sales since October last year. 

However, brokerages are positive about the stock. Last month, Goldman Sachs initiated coverage on Ola Electric and gave a buy rating, with a price target of INR 160 apiece. BofA Securities also has a buy rating on the stock.

On the financial front, Ola Electric managed to trim its consolidated net loss by 30% to INR 347 Cr in Q1 FY25 from INR 267 Cr in the year-ago period. Operating revenue rose 32% year-on-year to INR 1,644 Cr in the reported quarter.

The post Ola Electric Tanks 6% Amid Rising Scrutiny Over Customer Complaints appeared first on Inc42 Media.

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.

According to Mint, the feature will be launched in pilot mode in select cities later this month, with quick deliveries for fast-moving snacks such as samosas and sandwiches. 

Blinkit will reportedly also add items that require preparation time like pasta and noodles, depending on demand for such deliveries.

The offering will compete directly with Zepto Cafe, as well as Swiggy’s ‘Cafe’, which was launched to deliver snacks and beverages in 15 minutes in select areas of Bengaluru.

For now, Swiggy Cafe has curated a few beverage options such as coffee, milkshakes, and protein bars from brands like Blue Tokai and The Whole Truth.

Zepto took the lead in quick snack deliveries with the launch of Zepto Cafe in Mumbai in 2022. It adopted a hybrid approach to deliver branded pre-made food items with non-branded items. 

Zepto claims that this addition helped boost average order values, as users were likely to order tea, coffee, and snacks along with groceries. It’s not clear how much revenue Zepto earned from the Cafe vertical. 

Over the last six months, quick commerce players have expanded operations and diversified their catalogue to meet growing consumer demand. Pretty much all platforms including Swiggy Instamart and the new Flipkart Minutes have entered into categories such as electronics, beauty, pet care, toys and smaller household appliances.

In the case of Blinkit, the additions resulted in gross order value (GOV) surging 130% to INR 4,923 Cr in Q1 FY25 from INR 2,140 Cr in the corresponding quarter last year. Sequentially, it increased by 22.2% from INR 4,027 Cr in Q4 FY24.

Currently, Blinkit operates 639 dark stores across the country, with the average daily GOV per store rising to INR 10 Lakh, compared to INR 6 Lakh from 383 stores previously. The company aims to scale the number of dark stores to 2,000 by the end of 2026 while maintaining profitability.

As per analysis by brokerage CLSA, the gross order value of major quick commerce players like Blinkit, Zepto and Swiggy Instamart is expected to reach $10 Bn by the financial year 2025-26 (FY26) thanks to the expansion beyond grocery and into Tier 2 and 3 markets. 

The post Blinkit Set To Launch ‘Cafe’ For Quick Snack Deliveries 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.

Just days after the Central Consumer Protection Authority (CCPA) issued a show cause notice to Ola Electric, the Centre has now stepped up the heat on the EV maker. 

As per Livemint, the Ministry of Heavy Industries (MHI) has written to the Automotive Research Association of India (ARAI) to verify if the EV maker is indeed honouring warranties and maintaining service centres as required. 

It is pertinent to note that ARAI approved Ola Electric’s eligibility for subsidies under the Faster Adoption & Manufacturing of Electric Vehicles II (FAME-II) and the production linked incentive (PLI) schemes. 

If the MHI finds wrongdoing on part of Ola Electric, the original equipment manufacturer (OEM) could likely lose incentives and sops under the two above mentioned schemes. The two initiatives mandate EV makers, which receive subsidies, to provide a warranty of three years or 20,000 km, whichever is earlier, to the consumers. 

The Ministry of Roads, Transport and Highways (MoRTH) also plans to separately approach the consumer protection watchdog regarding information about complaints that flag issues such as selling second-hand scooters as new, charging more than promised, and manufacturing defects that could impact battery safety, the report said, citing sources. 

Meanwhile, consumer affairs secretary Nidhi Khare told Mint that the CCPA will pursue class action against Ola Electric on account of “thousands of unresolved complaints” against the EV major lodged with the National Consumer Helpline (NCH).

“With such a high volume of complaints – over 10,000 in a year, related to issues like delays in refunds, service delays, refusal of warranties and inconsistencies in performance – this case was a clear candidate for class action. When we encounter such cases, where repeated violations occur, we pursue class action after carefully examining the facts,” Khare reportedly said. 

She added that over 10,000 “dockets, documenting complaints received by NCH, have been sent to the company for investigation and resolution. As per Khare, the complaints against the company range from delay in refunds to refusal of warranties and performance inconsistencies.

“Companies should treat complaints as valuable feedback for improvement—complaints are their ears and eyes. Yet, one of the troubling findings was that Ola Electric had been charging customers even during the free service period, which is simply unacceptable,” she added.

This comes days after the CCPA shot off a show cause notice to Ola Electric over alleged violations of consumer rights, misleading advertisement and unfair trade practices. The consumer watchdog directed the EV maker to respond to the show cause notice within 15 days. 

The crackdown came right after comedian Kunal Kamra, in a post on X, slammed the company over its unsatisfactory after-sales services. In response, Ola Electric founder and CEO Bhavish Aggarwal trained guns at the comedian and accused Kamra of taking money to criticise the company.

The company has come under regulatory scanner at a time when legacy players such as TVS and Bajaj are eating into its market share. For context, in September 2024, Ola Electric’s two-wheeler registrations declined 11% month-on-month (MoM) to 23,965 units, the lowest sales since October 2023.

Meanwhile, on the financial front, losses continue to pile up. The EV major reported a net loss of INR 347 Cr in the first quarter (Q1) of the financial year 2024-25 (FY25), up 30% from INR 267 Cr in Q1 FY24. Operating revenue rose 32% to INR 1,644 Cr during the quarter under review as against INR 1,243 Cr in Q1 FY24. 

The post After CCPA Notice, Govt Amps Up The Heat On Ola Electric appeared first on Inc42 Media.

Caught in the middle of multiple legal cases, BYJU’S cofounder and CEO Byju Raveendran, has now reportedly denied all allegations of orchestrating a scheme to fraudulently transfer $533 Mn out of its $1.2 Bn term loan B (TLB).

As per a Bloomberg report, Raveendran said that the $533 Mn in question were used for “legitimate commercial purpose”.

He made the comments in a filing with a US bankruptcy court in Wilmington, Delaware, on the same day a judge was set to consider the TLB creditor’s plea alleging that the edtech startup fraudulently transferred the funds.

In the filing, the beleaguered cofounder said that the company planned to use most of the proceeds of the $1.2 Bn TLB (raised in November 2021) for international expansion. He, however, added that BYJU’S was hit by a “liquidity crunch” just as the company was “poised to see the returns on these strategic investments”.

Raveendran reportedly claimed that the edtech “needed to use the funds for its international expansion as quickly as possible” right after raising the TLB. He added that the company, quickly afterwards, entered into agreements with UK-based OCI Ltd., which offers procurement services for IT equipment and advertising.

As per the report, BYJU’S was subsequently unable to reimburse OCI for its services, forcing the latter to exercise its “right of set-off” against the edtech’s “Alpha Funds”. 

“Neither I nor any of the founders of T&L (BYJU’S parent Think & Learn) have personally received any portion of the Alpha Funds or any of the funds disbursed under the credit agreement,” Ravendran reportedly said.

For the uninitiated, the missing $533 Mn belongs to a bankrupt US-based shell company, BYJU’S Alpha Inc, which was taken over by the lenders after their loan defaulted. The company’s TLB creditors have long considered funds parked under BYJU’S Alpha as their best bet to claw back some of the capital. 

As a result, the edtech major’s lenders have dragged the company to various courts, seeking clarity over what happened to the alleged syphoned funds. In a filing with a US court, the lenders claimed that Raveendran told its advisors during a meeting that “the money is someplace the lenders will never find it”.

On Wednesday (October 9), BYJU’S cofounder claimed that he never used those words, adding that the entire case of fraud and syphoning of funds “is based on one statement that their representative wrote on a paper napkin and attributed to me (Raveendran)”. 

The CEO also claimed that during the meeting with the advisors, he wanted to explain to the lenders that the funds “would be utilised for their intended purpose”.

The developments came on the same day a trustee of one of BYJU’S affiliates accused the edtech startup of transferring $700,000 from its US affiliates in violation of the bankruptcy proceedings.

The trustee has filed a case to recover the funds that were transferred from entities under her oversight. Notably, in August this year, a US court directed Byju Raveendran’s brother Riju Ravindran to pay a fine of $10,000 per day until he helped locate the missing amount.

Owing to this, as many as four units in the US are facing bankruptcy proceedings, and, as per rules, such companies cannot transfer money without the bankruptcy judge’s approval.

At the heart of all this is the $1.2 Bn TLB extended by 37 financial institutions to BYJU’S through a credit agreement in November 2021. As funding winter reigned supreme, the company last year defaulted on the payments, forcing the creditors to move courts.

The post Missing $533 Mn Used For Legitimate Commercial Purposes: BYJU’S CEO appeared first on Inc42 Media.

Fintech unicorn CRED has appointed Arvind Kathpalia, the chief risk advisor of slice, as its new advisor on risk and compliance.

In a statement released to the press, CRED founder, Kunal Shah, said that Kathpalia’s experience in risk management and compliance will be instrumental for the company.

“I’m excited to learn from him as we advance towards that vision,” Shah said.

Notably, Kathpalia is already working with one of CRED’s rivals in the fintech space, slice. CRED’s appointment does not bar him from working with slice, people close to the development told Inc42. He joined the Rajan Bajaj-led unicorn (slice) in May this year to support its newly merged banking unit with North East Small Finance Bank. 

Before joining slice, Kathpalia served Kotak Group for over 25 years – starting in 2009. At Kotak, he was involved in identifying, assessing, mitigating and monitoring credit, market, operational and liquidity among other risks. He has also held various leadership roles at ANZ Grindlays and Standard Chartered Bank.

Founded in 2018 by Shah, CRED’s initially offered rewards and benefits to premium credit card users for paying their bills. However, it has been on the super app path for the last few years and has launched many new services to monetise its user base. 

Notably, the company’s operating revenue jumped about 71% to INR 2,397 Cr in the financial year 2023-2024 (FY24) from INR 1,400 Cr in FY23. 

However, the company’s net loss also increased in FY24, up 22% compared to last year. In FY23, the company reported a net loss of INR 1,347 Cr, which increased to INR 1,644 Cr in FY24. 

The fintech’s operating loss declined 41% to INR 609 Cr in FY24 from INR 1,024 Cr in the previous year.

The post CRED Hires slice’s Arvind Kathpalia As Risk Advisor appeared first on Inc42 Media.

Mohalla Tech Private Limited, the parent of social media platform ShareChat and short video app Moj, has launched a social media app ‘Vibely’ to connect with new users, sources told Inc42.

The app also has a private calling feature which allows users to call other app users. The new app, launched last week, also allows users to make in-app purchases to buy gifts, the sources added.

It is pertinent to note that ShareChat and Moj already offer the audio calling feature. However, the sources said that the idea behind launching Vibely was to have a dedicated app for audio calling feature. 

“If someone wants to just have a conversation, why should he/ she have to go through several posts and notifications on ShareChat/ Moj,” one of the sources said. 

The launch of the new app is part of the efforts of Mohalla Tech to cut down its losses by shoring up revenue. 

While ShareChat is yet to file its financial statements for FY24, the sources said that it is likely to report a revenue of INR 700 Cr as against INR 540 Cr in FY23. Meanwhile, its net loss is expected to more than halve to INR 1,800 Cr from INR 4,064 Cr in FY23.

Its adjusted EBITDA loss is expected to come down to INR 800 Cr in FY24 from INR 2,372 Cr in the previous fiscal year. 

Meanwhile, the sources also said that ShareChat has turned EBITDA positive as of September 2024.

The startup declined to comment on Inc42’s queries on the launch of Vibely and its financials for FY24.

The development comes almost a couple of months after ShareChat raised $16 Mn debt from Singapore-based fund EDBI, expanding the size of its previous debt round to $65 Mn. 

In April this year, Inc42 exclusively reported about ShareChat raising $49 Mn via convertible debentures in a funding round from its existing investors Lightspeed, Temasek, Alkeon Capital, Moore Strategic Ventures, HarbourVest, among others.

Founded in 2015 by Ankush Sachdeva, Bhanu Singh, and Farid Ahsan, Mohalla Tech claims to have 325 Mn monthly active users across all its platforms. Of these, ShareChat claims to have over 180 Mn monthly active users. 

In 2022, Mohalla Tech acquired another short video platform MX TakaTak from Times Internet and integrated it with Moj, which it launched in July 2020. The deal was pegged at around $600 Mn. Earlier this year, Inc42 reported about the struggles of Moj and the decline in its key metrics.

It also needs to be highlighted that the startup’s two cofounders – Bhanu Pratap Singh and Farid Ahsan – resigned last year. Following this, they founded a robotics startup General Autonomy and raised $3 Mn seed funding in November last year from venture capital firms India Quotient and Elevation Capital.

Like many other startups, Mohalla Tech has been hit hard by the ongoing funding winter, forcing it to take cost-cutting measures. The startup laid off around 800 employees in three layoff exercises last year and also pulled the plug on its fantasy app platform Jeet11 and live commerce business. Its rising losses made matters worse. 

The startup has raised over a billion dollars in funding so far and is backed by marquee investors like Google, Temasek, Moore Strategic Ventures, Lightspeed Venture Partners, Tiger Global, Twitter among others.

The post Exclusive: ShareChat Launches Social Media App ‘Vibely’ With Private Calling Feature appeared first on Inc42 Media.

Listed beauty marketplace Nykaa is reportedly looking to jump into the quick commerce fray in a bid to recapture market share from the likes of Blinkit, Zepto, Swiggy Instamart and others. 

An ET report claims Nykaa has launched a 10-minute delivery pilot in select parts of Mumbai covering 5% of its SKU base. 

In September, Nykaa had stated its intention to accelerate next-day and same-day deliveries to cater to the growing demand for quick commerce-like models. Nykaa chairperson, MD and CEO Falguni Nayar had said at the company’s AGM that currently next-day deliveries comprise 60% of all orders from the marketplace’s top 110 cities.

Quick commerce platforms, including Blinkit, Zepto, Swiggy Instamart, BigBasket and Flipkart Minutes, have looked to capitalise on the festive season demand by bulking up the beauty and personal care SKUs. 

For many D2C beauty brands, listing on these quick commerce platforms means moving closer to the consumer base. Plus, QC platforms cater to impulse shopping, a big draw for new-age beauty brands. 

“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,” Satish Meena, adviser at market intelligence firm Datum Intelligence, told Inc42 earlier this month. 

Several of Nykaa’s private labels are listed on Blinkit, Zepto and Swiggy Instamart, which would undoubtedly have shown Nykaa what quick commerce offers. But on the flipside, Nykaa’s core marketplace business has suffered from the rise of quick commerce. 

Ahead of its Q2FY24 results, Nykaa claimed to have registered consolidated revenue growth in the mid-twenties in the second quarter of the ongoing financial year 2024-25 (FY25). 

The company said its beauty vertical saw strong performance, while the fashion vertical continues to lag behind. 

Nykaa is not alone in wanting a taste of the quick commerce magic. In recent times, the model is being extended beyond grocery to fashion and lifestyle categories such as beauty and personal care.

The post Nykaa Pilots 10-Minute Deliveries In Mumbai To Fight Quick Commerce Onslaught appeared first on Inc42 Media.

In another trouble for embattled BYJU’S, a lawsuit in the federal court of Delaware in the US has reportedly accused the edtech giant of transferring $700,000 from its US affiliates in violation of the bankruptcy proceedings.

Citing the court papers, Bloomberg said that a trustee of one of the affiliates of the Byju Raveendran-led company has accused BYJU’S of syphoning off funds to Whitehat Education Technology. The money was to be repaid to BYJU’S US-based creditors, which are at war with the company over pending dues.

The trustee is seeking to recover nearly $700,000 that was transferred from entities under her oversight.

The US-based lenders have been fighting legal battles in the US as well as in India to recover dues from BYJU’S. The edtech giant has also been accused of hiding $533 Mn from the lenders. In August, a US court directed Riju Ravindran, brother of Byju Raveendran, to pay $10,000 a day till he helps locate the missing amount.

As a result, BYJU’s four units in the US are facing bankruptcy proceedings, the Bloomberg report said. As per the rules in the US, such companies cannot transfer money without an approval from the bankruptcy judge.

However, the lawsuit alleges that between September 26 and October 7, funds were transferred from the Stripe account of the bankrupt companies to a Wells Fargo bank account associated with Whitehat.

The trustee has alleged that individuals in India using “Byju-related email accounts” have attempted to access the US debtors’ account, the report added.

Inc42 has reached out to BYJU’S for comments on the development. The story will be updated on receiving a response.

At the core of the issue is the Term Loan B secured by BYJU’S through a credit agreement in November 2021. A total of 37 financial institutions participated in this loan, which stipulated that lenders could enforce their rights if the edtech startup defaulted on its loan repayments. Consequently, BYJU’S parent, Think & Learn Private Limited, pledged 100% of its equity in its US-based subsidiary, BYJU’S Alpha, as a collateral for the loan. 

Last year, after the struggling edtech startup defaulted on its payments, the consortium of lenders, represented by Glas Trust, became eligible to exercise their remedies as outlined in the credit agreement.

Quickly afterwards, Glas Trust filed a plea before the Delaware Court of Chancery and sought a declaration that their actions were valid. Thereafter, in November last year, the court delivered a ruling in favour of the consortium of lenders and agreed with Glas Trust’s interpretation of the credit agreement covenants and determined its actions, which included talking over BYJU’S Alpha, to be valid. 

Since then, the consortium of lenders has also been mounting a legal challenge in India against BYJU’S. 

The edtech startup, which was once the poster boy of the Indian startup ecosystem, has been plagued by an acute funding crunch, slowdown in operations, among others, over the last few years, which has resulted in it currently undergoing bankruptcy proceedings in India as well.

The post BYJU’S Accused Of Transfering Funds From US Units In Violation Of Bankruptcy Rules appeared first on Inc42 Media.

Edtech unicorn Physics Wallah has reportedly finalised the names of four investment banking firms for its public listing next year.

A report by Moneycontrol said that the edtech startup has shortlisted Axis Capital, Kotak Mahindra Capital, Goldman Sachs, and JP Morgan as the bankers for its proposed initial public offering (IPO).

The public issue will likely be a mix of fresh issuance of shares and offer for sale. “No quantum has been finalised yet and the deal size may vary later, but the proposed issue may look to raise in the range of $400 Mn to $500 Mn,” the report quoted a source as saying.

Inc42 has reached out to Physics Wallah for comments on the development. The story will be updated on receiving a response. 

The development comes days after it was reported that the edtech major sent out invitations to at least 10 investment banks to make pitches for the IPO in 2025. 

Amid the funding woes of the edtech sector, Physics Wallah raised $210 Mn last month in a round led by Hornbill Capital. The startup also managed to double its valuation to $2.8 Bn.

Founded by Alakh Pandey and Prateek Maheshwari in 2020, Physics Wallah is among the few profitable edtech startups in the country. It has expanded its offerings over the years, and currently offers courses for K-12 students, test preparation, UPSC coaching, among others.

Physics Wallah’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. Operating revenue soared 234% to INR 779.3 Cr in FY23 from INR 233 Cr in FY22.

The unicorn’s public listing bid comes amid the ongoing IPO boom in the Indian equities market. As a result, startups have also made a beeline to list on the bourses. While 10 new-age tech companies, including Go Digit, Ola Electric, FirstCry, Unicommerce, among others, have gone public this year, the likes of Swiggy, Ecom Express, MobiKwik, among others plan to go public over the next few months. 

The post Physics Wallah Selects 4 Investment Bankers For $500 Mn IPO appeared first on Inc42 Media.

Hyperlocal delivery startup magicpin said that it is clocking 1.5 Lakh daily food and logistics orders on the state-backed Open Network for Digital Commerce (ONDC).

In a statement, magicpin said that the number of orders on its platform surged 1500X in the past 16 months to 1.5 Lakh from 100 orders in May 2023. 

It also said that the number of restaurants under its belt surged to 70,000 at the end of September 2024 as against 22,000 when it made its debut on ONDC in March last year. 

“In the last 15 months, we have touched double-digit market share in major cities, with more than 10% market share in key markets like Delhi or Bengaluru in terms of overall food delivery. At the same time, we are thrilled with magicpin’s success on ONDC, where we have reached 1.5 Lakh daily orders for food delivery and logistics on the network…,” said magicpin cofounder and CEO Anshoo Sharma.

Sharma said magicpin fulfils 90% of food orders from major buyer apps such as Paytm, Tata Neu, and Ola. He added that the company plans to onboard 1 Lakh new restaurants and cloud kitchens on ONDC.

“We offer a great assortment, demand-side integration, and competitive price points that benefit both customers and merchants alike,” the CEO Sharma while elaborating on magicpin’s unique selling proposition.

Founded in 2015 by Sharma and Brij Bhushan, magicpin started off as a restaurant discovery and user savings platform. Later, the company became one of the first platforms to join ONDC and assist sellers and restaurants in adopting the open protocol. 

magicpin has been working to scale its operations on the back of the increasing popularity of ONDC. Earlier this year, the company said that it would invest INR 100 Cr to bolster its presence on the state-backed network, offer incentives such as zero commission, and free home delivery for customers.

Besides, the company also offers SaaS tools to buyer apps. In March this year, the hyperlocal delivery startup also forayed into the logistics aggregation space with the launch of its new vertical Velocity, and caters to brands such as KFC, Burger King, IGP, among others. 

The post magicpin Clocks 1.5 Lakh Daily Food & Logistics Orders On ONDC appeared first on Inc42 Media.

Audio products and smartwatch maker boAt managed to reduce its net loss by 47% to INR 53.6 Cr in the financial year 2023-24 (FY24) from INR 101 Cr in the previous fiscal year.

As per internal documents accessed by Inc42, boAt also managed to turn EBITDA profitable in FY24. It posted an EBITDA of INR 14.04 Cr during the year under review as against an EBITDA loss of INR 50.21 Cr in FY23.

It is pertinent to note that the D2C unicorn slipped into loss for the first time in FY23, which it attributed to investments for its smartwatch category and setting up manufacturing infrastructure in India. The startup had posted a net profit of INR 68.7 Cr in FY22.

Meanwhile, boAt’s revenue declined 5% to INR 3,121.6 Cr in FY24 from INR 3,284.7 Cr in the previous fiscal year.

The financial disclosure comes at a time when the startup is gearing up for its initial public offering. It is looking to list on the exchanges in 2025.

This is the startup’s second attempt at going public. In May 2022, markets regulator Securities and Exchange Board of India (SEBI) approved boAt’s INR 2,000 Cr IPO. However, it didn’t proceed ahead with the IPO plans. Later in that year, boAt raised INR 500 Cr from Warburg Pincus and Malabar Investments in October. 

Founded in 2015 by Sameer Mehta and Aman Gupta, boAt operates in the larger audio and wearables markets and sells products such as headphones, smart watches and speakers. It is backed by the likes of Qualcomm Ventures, Ranveer Singh, Warburg Pincus, among others, and has raised about $177 Mn in funding till date.

Update | October 8, 10:37 PM: This story has been updated to rectify the name of Aman Gupta.

The post boAt’s FY24 Loss Nearly Halves To INR 54 Cr appeared first on Inc42 Media.

Online gaming startup WinZO has said that it closed the fourth round of its Employee Stock Ownership Plan (ESOP) liquidation.

As per the company, around 30% of the workforce, with at least two years of tenure, will be able to liquidate their vested ESOPs as part of the initiative.

WinZO further said that the buyback is a strategic move to attract and retain top global tech talent, especially in light of the recent steep increase in GST in the gaming industry. 

The startup also outlined that the tax hike has caused a sharp decline in foreign direct investment (FDI), impacting the sector’s ability to secure and retain talent.

“By completing our fourth consecutive annual ESOP buyback, WinZO is reaffirming its unwavering commitment to nurturing talent, fostering innovation, and driving growth in the gaming industry,” the company said.

It is pertinent to note that WinZO has completed three previous ESOP liquidations between 2021 and 2023.

This announcement comes on the heels of WinZo registering a 3X increase in its consolidated operating revenue to INR 673.94 Cr in the financial year ended March 31, 2023, from  INR 233.89 Cr in the previous fiscal year. 

Despite this surge in revenue, WinZO’s net loss surged 1.9X to INR 710.15 Cr in FY23 from INR 370.1 Cr in FY22. 

On the expansion front, last year the startup was reported to be consolidating its international presence with an investment worth $25 Mn in the Brazilian gaming market. 

Founded by Paavan Nanda and Saumya Singh in 2018, WinZO is an online skill-based gaming startup that partners with third-party developers to host games on its mobile-based application. It earns revenue through platform fees charged from users for real-money games.

The post WinZo Marks Close Of Fourth ESOP Buyback appeared first on Inc42 Media.

Meta-owned social media platform Instagram today (October 8) faced an outage for several users in India. According to Downdetector, a crowd-sourced platform for tracking outages, many users started reporting issues accessing the app at around 11:15 AM.

The data further said that over 64% of users experienced problems logging into the app, while 24% faced server connection issues.

Users turned to X (formerly known as Twitter) to report the issues they were experiencing with Instagram. Many shared that they were met with an error message stating, “Something went wrong.”

The cause of the current outage remains unclear, and Instagram has yet to release an official statement regarding the issue.

This isn’t the first time Meta has faced an outage. In June, Instagram also experienced an outage lasting several minutes, leaving thousands of users worldwide unable to access the platform. In March earlier this year, both Instagram and WhatsApp, also owned by Meta, were down for several hours, causing disruptions for local businesses.

Before that, in April last year, some Indian WhatsApp users experienced problems downloading videos. In October 2022, WhatsApp endured a two-hour outage, prompting the company to provide an explanation to the Ministry of Electronics and Information Technology (MeitY).

A large number of local businesses are reliant on services offered by Instagram. Earlier this year, a month after introducing its “Meta Verified” service for WhatsApp Business users in India, social media giant Meta expanded the offering to Facebook and Instagram.

Meta Verified is a subscription service designed to help brands build credibility with new audiences by providing a “blue tick,” enhanced account support, protection against impersonation, and additional features aimed at improving discovery and connection.

India is home to the largest user base to Meta’s family of apps. While Facebook accounts for 378 Mn users in the country, WhatsApp and Instagram have 478 Mn and 362 Mn users respectively, as per Statista.

The post Instagram Down For Several Users Across India appeared first on Inc42 Media.