Days before Swiggy filed its updated draft red herring prospectus (DRHP) with SEBI, its founder Sriharsha Majety and some of the investors sold shares worth INR 670 Cr.

On September 20, Swiggy’s cofounder and group CEO Sriharsha Majety sold 6,36,972 equity shares at INR 345 apiece to Torroz Fintech. He further sold 29,695 shares at the same price to Torroz Fintech on September 23. With the two secondary share selloffs, the CEO pocketed INR 23 Cr. 

Besides Majety, Torroz Fintech bought 4,326 Series B compulsorily convertible preference shares (CCPS) for INR 4.62 Lakh apiece from Swiggy’s investor Norwest Ventures Private Limited. The all-cash deal saw the former pay INR 200 Cr to the investment firm. 

According to Torroz Fintech’s website, the company offers curated investment opportunities in diverse financial securities in private markets and other markets. It claims to have an extensive network of private equity, wealth management, family offices, and high net worth investors. 

“Dive into the realm of private markets, where exclusive opportunities await discerning investors,” its website says. The company was founded by 4Sight Global Ventures’ directors Pratik Vaja and Rahul Kurup in 2022. 

Besides Torroz Fintech, Strootaay Unlisted Brokers bought 4.63 Lakh Series B CCPS of Swiggy from venture capital firm Elevation Capital for INR 439.12 Cr on September 11, according to the draft IPO papers. 

Chennai-based Strootaay Unlisted Brokers claims to offer investors a platform to invest in unlisted shares of late stage, pre-IPO companies. 

Meanwhile, another Swiggy investor, Ark India FoodTech Private Investment Trust, also sold 2.1 Lakh equity shares to Moksh Capital Partners 1 for INR 360 apiece on September 23. The total transaction size was INR 7.56 Cr.

Moksha Finance helps startups in securing seed stage funding, connects them with angel investors and venture capital firms, and also helps them go public. It has closed 5 deals in the last one year in varied sectors, according to its website.

The deals provided partial exits to the investors ahead of the IPO amid a high demand for unlisted shares of Swiggy. A number of HNIs and companies have acquired shares of Swiggy before the opening of its public issue. Most recently, angel investing platform BizDateup’s cofounders Jeet Chandan and Meet Jain announced that they picked up stakes in the startup for an undisclosed amount. 

Actor Madhuri Dixit, Amitabh Bachchan’s family office, and companies like Modern Insulators and Hindustan Composites also bought shares of the foodtech major ahead of the IPO.

Swiggy’s IPO will comprise a fresh issue of INR 3,750 Cr and an offer for sale of up to 18.53 Cr equity shares, as per the DRHP. However, the company also secured its shareholders’ nod earlier this month to increase the size of fresh issue to INR 5,000 Cr in the IPO.

CEO Majety will be selling up to 1.74 Mn equity shares in the IPO.

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Foodtech major Zomato on Friday (October 11) said that its independent director Gunjan Soni has stepped down from the company’s board on account of “increased work commitments”.

In a filing with the BSE, the company said that Soni will also cease to be a member of the company’s risk management committee and corporate social responsibility committee.

It is pertinent to note that Soni is the CEO of Southeast Asia-focussed ecommerce platform Zalora. 

“… The need to step down stems from increased professional commitments and was a tough decision. I am grateful for the opportunity to have served on the board and am confident in Zomato’s management team and the company’s future direction…,” said Soni in her resignation letter. 

She added that there were “no material reasons for her resignation other than those mentioned in the resignation letter”.

Commenting on her departure, Zomato cofounder and CEO Deepinder Goyal added, “It was great to partner with Gunjan and a big thanks to her for helping us navigate through the ups and downs of the past few years. On behalf of Zomato, I want to thank Gunjan for her valuable insights and guidance that have been instrumental in our growth…”.

An alumna of XLRI Jamshedpur, she previously helmed Jabong (later acquired by Myntra) and worked with the likes of Star India and McKinsey & Company. 

The development comes at a time when the company appears to be in the middle of a major reshuffle. Just weeks after Zomato’s cofounder and chief people officer (CPO), Akriti Chopra, quit the company to “pursue other interests”. Earlier this month, Zomato roped in BookMyShow’s former live events and IP head Kunal Khambhati to bolster its ‘going out’ vertical. 

This also comes at a time when shares of Zomato are on an upswing. Zomato shares hit an all-time high of INR 298.05 during the intraday on September 23, helped by the company’s increasing profit numbers, rising revenue, strong growth of Blinklit and thumbs up from brokerages. 

Zomato reported a net profit of INR 253 Cr in the first quarter (Q1) of the financial year 2024-25 (FY25) against INR 2 Cr in the year-ago period. Meanwhile, operating revenues jumped 74% to INR 4,206 Cr in the quarter under review against INR 2,416 Cr in Q1 FY24. 

Shares of the company closed 0.85% higher at INR 277.5 on the BSE on Friday (October 11). 

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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.

Brokerage firm Bernstein expressed caution over the plans of insurtech major Policybazaar’s parent PB Fintech to venture into the healthcare sector. However, it has capped the downside at $100 Mn if the foray doesn’t go as expected. 

Last month, PB Fintech Group chairman and CEO Yashish Dahiya told CNBC-TV18 that the company is considering making a one-time investment of $100 Mn for a 30% stake in a new healthcare venture.

However, analysts at Bernstein said that the foray in the healthcare sector would be a sharp departure from the company’s current asset-light model to a more asset-heavy space, Moneycontrol reported. 

Shares of PB Fintech have been under pressure since it was reported that the company was considering venturing into the healthcare sector. On September 26, the stock plunged as much as 10.3% during the intraday trading session following reports about its healthcare foray.

The stock has ended in the red in 10 out of the last 12 trading sessions.

Despite the volatility, Bernstein maintained its ‘outperform’ rating, saying the healthcare foray could further strengthen PB Fintech’s position on the Indian health insurance map.

The brokerage has set a price target of INR 1,720 apiece, implying an upside potential of 4% from the stock’s previous close, as per the report.

In an interview last month, PB Fintech cofounder and CFO Alok Bansal addressed concerns around the company’s business model remaining asset-light. While the insurance aggregator is committed to improving healthcare experiences, it does not plan on buying physical assets like hospitals, Bansal reportedly said.

Taking comfort in this, brokerage Jefferies, earlier this month, reaffirmed its ‘buy’ call on PB Fintech at a price target of INR 1,800 apiece. This would imply an upside of about 9% from the stock’s last close.

PB Fintech posted a consolidated net profit of INR 59.98 Cr in the June quarter (Q1) of the financial year 2024-25 (FY25) as against a loss of INR 11.9 Cr in the year-ago quarter. The turnaround came largely on the back of robust growth across business segments.

Shares of PB Fintech were trading 0.7% lower at INR 1,642.65 on the BSE at 02:45 PM on Thursday.

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The Indian startup ecosystem paid rich tributes to industrialist and chairman emeritus of Tata Group, Ratan Tata, who passed away on Wednesday in Mumbai.

Tata, aged 86, breathed his last at Mumbai’s Breach Candy Hospital, where he was admitted in the intensive care unit (ICU). 

Tata, who was also widely known for his philanthropy, was a role model for multiple founders.  He was an inspiration for millions and was hugely popular across age groups even at the age of 86. 

Tata was also an active investor in the Indian startup ecosystem, betting on the vision and commitment of entrepreneurs. Just last week, he partially exited broking platform Upstox.

He was among the early backers of giants like Paytm and Urban Company. One of Tata’s earliest investments in the startup ecosystem was in Snapdeal in 2014. 

Mourning his death, Snapdeal and Titan Capital cofounder Kunal Bahl said, “India has lost one of its greatest titans, a true statesman of industry. Mr. Ratan Tata was more than just a business leader—his compassion, humility, and kindness inspired millions. His legacy will live on forever.”

Paytm founder and CEO Vijay Shekhar Sharma called him a legend who will inspire every generation. 

“Entrepreneurs of next generation will miss interacting with the most humble businessman of India,” Sharma said on X, posting a photo of him with Tata.

“Ratan Tata’s true legacy isn’t just in what he built, but in the quiet ways he’s shaped lives,” wrote Gaurav Khatri, cofounder and CEO of Noise, in his tribute as he remembered the industry veteran who has touched “hearts in ways that last far beyond his lifetime” with “empathy”, “compassion”  and “kindness”. 

Mayank Arya, founder and CEO of YesMadam, credited Tata for laying the foundations of “the culture of possibility” which “changed the very language of ambition of India.”

Paying his tribute to the business magnate, Microsoft cofounder Bill Gates said that Tata “left an indelible mark on India—and the world.” 

Grieving Tata’s death, Ronnie Screwala, cofounder and CEO of UpGrad, said that his passing away has left a “deep void in India’s heart” while recognising his contribution to the nation’s “immense progress”.

Tata took the reins as chairman of Tata Industries in 1981. Almost a decade later, he took over as the chairman of Tata Sons, the holding company of the Tata Group, following in the footsteps of giants such as Jamsetji Tata, Dorab Tata and JRD Tata.

He transformed the group into a multinational corporation with acquisitions of high-profile brands such as Tetley, Corus Jaguar Land Rover, Brunner Mond and Daewoo, among others. 

During his 21-year stint as chairman and chief executive, Tata Group saw its revenues grow multifold to nearly $100 Bn in 2012 from $5.7 Bn in 1991. 

In his decade-long tryst with the Indian startup ecosystem, Tata backed more than 50 homegrown startups — including ride-hailing major Ola, health and fitness startup CureFit, auto marketplace CarDekho, eyewear major Lenskart, kids-focussed omnichannel marketplace FirstCry, consumer service platform Urban Company, and the list goes on. 

In one of his interviews, Tata famously said that he viewed his investments in startups as a “learning experience.” 

During an event in Mumbai in 2016, Tata reportedly said that startups “are an embodiment of creativity and innovation in young India,” and he invests in new ventures if “the idea excites him”, and the first impressions of founders are good.

Tata will be cremated later today with full state honours. 

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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]

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Chairman emeritus of Indian conglomerate Tata Group, Ratan Tata, 86, is no more. He passed away on Wednesday (October 9) while undergoing treatment on account of his age and allied medical conditions.

Tata Sons chairman N Chandrasekaran confirmed his demise in a statement. 

“It is with a profound sense of loss that we bid farewell to Mr. Ratan Naval Tata, a truly uncommon leader whose immeasurable contributions have shaped not only the Tata Group but also the very fabric of our nation… On behalf of the entire Tata family, I extend our deepest condolences to his loved ones…,” said Chandrasekaran. 

As per news channel India TV, Tata breathed his last at Mumbai’s Breach Candy Hospital, where he was admitted to the intensive care unit (ICU) following a sudden deterioration of his health and a sudden drop in blood pressure. 

Condoling his demise, Prime Minister Narendra Modi said, “Extremely pained by his passing away. My thoughts are with his family, friends and admirers in this sad hour. Om Shanti”. 

Chairperson of the RPG Group, Harsh Goenka, also tweeted, “The clock has stopped ticking. The Titan passes away. #RatanTata was a beacon of integrity, ethical leadership and philanthropy, who has imprinted an indelible mark on the world of business and beyond. He will forever soar high in our memories. R.I.P”.

“I am unable to accept the absence of  Ratan Tata.. With him gone, all we can do is to commit to emulating his example. Because he was a businessman for whom financial wealth and success was most useful when it was put to the service of the global community. Goodbye and Godspeed, Mr. T..,” Mahindra Group chairman Anand Mahindra said. 

Synonymous with the Indian industry, Tata, even at the ripe age of 86, enjoyed the popularity that many envied and very few could achieve.  

The Early Years

Born on December 28, 1937, to Naval and Soonoo Tata, Ratan was brought up by his grandmother, Navajbai R Tata, in a baroque manor called Tata Palace in downtown Bombay (now Mumbai). 

He completed his schooling first at the Campion School and then at Cathedral and John Connon in the then Bombay. 

Consequently, he received a bachelor’s degree in Architecture from Cornell University in the US in 1962 and then briefly worked with Jones and Emmons in Los Angeles before returning to India in late 1962. It was the same year he joined the Tata Group. 

Nine years later, and after working with several companies of the Group, he was appointed as the director-in-charge of the National Radio and Electronics Company Limited in 1971. A decade later, he was handed over the charge of the chairman of Tata Industries in 1981. 

Eventually, he took over as the chairman of Tata Sons, the holding company of the Tata Group, in March 1991, stepping into the shoes of giants such as Jamsetji Tata, Dorab Tata and JRD Tata. 

Over the next two decades, Ratan Tata grew the conglomerate’s revenues from a mere $5.7 Bn in 1991 to a massive nearly $100 Bn in 2012, the year he stepped down. His tenure saw the Group piggyback on the liberalisation opportunity and the wave of globalisation. 

Under his leadership, Tata acquired high-profile brands like Tetley, Corus, Jaguar Land Rover, Brunner Mond, General Chemical Industrial Products and Daewoo. To honour his commitment to the Indian business landscape, he was awarded the Padma Vibhushan, the country’s second-highest civilian honour, by the Government of India in 2008. 

Beyond the big newsmaker that he was, Ratan Tata also saw a massive opportunity in the Indian startup ecosystem as far back as early 2014, when the word “entrepreneurship:” was yet to become a buzzword. 

A Backer Of Indian Startups

Notably, Tata had quite a vast influence on the Indian startup ecosystem. He was one of the early backers of giants like Paytm, Snapdeal and Urban Company. 

He made his first investment in Snapdeal in 2014. Back then, Snapdeal was a little-known ecommerce startup. His investment is said to have helped Snapdeal stay competitive in the Indian ecommerce industry. 

Not stopping here, Tata backed a small recharge platform in 2015, which eventually morphed into fintech juggernaut Paytm. 

Besides, he also backed multiple other big Indian startups in subsequent years such as ride-hailing major Ola, health and fitness startup CureFit, auto marketplace CarDekho, eyewear major Lenskart, and the list is far from over. 

He also made big bets in startups like kids-focussed omnichannel marketplace Firstcry, consumer service platform Urban Company, B2B ecommerce major Moglix and discount brokerage platform Upstox.

In one of his interviews, Tata famously quipped that he viewed these investments in startups as a “learning experience”. 

Speaking to a TV channel in 2021, he elaborated on his trysts as an investor in Indian startups. He said that his initial attraction to entrepreneurship stemmed from his excitement during early days at Tata when he would urge the company to explore early computer and software startups in the Bay Area. 

On what his thesis for backing new-age tech companies was, Tata once said that he would bet on entrepreneurs’ vision and commitment, besides just the potential of a business model. He had then also said that he valued founders who were genuinely passionate about building something sustainable and impactful, rather than those looking for a quick exit. 

In his decade-long brush with the Indian startup ecosystem, Tata invested in more than 50 startups in all. However, beyond his investments, new-age entrepreneurs idealised him for his sharp business acumen, imbibing strong governance practices, philanthropy and his impact on society.

For now, the country mourns the demise of its leading business stalwart Ratan Tata, who has left behind a void, which could hardly be filled in the heart of India Inc. 

The post Legendary Businessman, Philanthropist Ratan Tata Passes Away At 86 appeared first on Inc42 Media.

Amazon India has partnered with Startup India to undertake multiple initiatives to empower startups to build and grow their businesses via ecommerce. 

“Amazon will collaborate with Startup India to enable eligible startups to tap into opportunities in ecommerce by registering on Amazon India’s marketplace through a dedicated page on the Startup India portal,” the ecommerce giant said in a statement.

The company said that it will provide dedicated onboarding experience, along with mentorship from Amazon leaders, go-to-market support and logistics guidance to the startups.

Amazon said it also aims to empower women entrepreneurs via its ‘Saheli’ program by partnering with Startup India. The Saheli programme aims to support women entrepreneurs by providing a platform to showcase their locally made products.

“The collaboration will drive a high-impact learning program designed to fuel the ecommerce journeys of eligible women led small and medium businesses in India,” the statement said.

Additionally, Amazon will also help in creating awareness about the Bharat Startup Knowledge Access Registry (BHASKAR) initiative, a digital platform for startups, launched by the central government to facilitate growth of the Indian startup ecosystem.

“… By combining Amazon’s ecommerce expertise with Startup India’s role as the Government of India’s flagship initiative for the development of the startup ecosystem, we will provide a robust platform for Indian startups and businesses to scale domestically…” DPIIT joint secretary Sanjiv said. 

Earlier this month, Amazon India also partnered with India Post to facilitate customer deliveries across every pin code in the country.

Last month, the ecommerce platform also signed a memorandum of understanding (MoU) with the ministry of labour and employment to post work opportunities at Amazon’s corporate offices and operations network on the National Career Service (NCS) portal. 

Amazon is among the key players in the Indian ecommerce space and competes with the likes of Flipkart and Meesho. While it is yet to turn profitable in India, the US-based giant continues to bet on India, which is an important market for it.

However, the company continues to be troubled by regulatory and other issues in the country. Recently, the Competition Commission of India (CCI) found Amazon and Walmart-backed Flipkart guilty of violating competition laws. 

The antitrust watchdog has sought turnover details from both ecommerce giants to determine the penalty to be levied on them for flouting antitrust norms.

Besides, Amazon is also facing increasing competition from quick commerce players like Zomato-owned Blinkit, Swiggy Instamart, Zepto as they expand their catalogue.

The post Amazon Partners With Startup India To Help Startups Leverage Ecommerce Opportunity appeared first on Inc42 Media.

Weeks after travel tech startup EaseMyTrip cofounder and CEO Nishant Pitti offloaded a significant amount of his shares, the startup’s board is mulling to undertake a fresh bonus issue of shares. 

In an exchange filing on October 9, EaseMyTrip said that its board of directors will meet on Monday (October 14) to consider and approve the issue of bonus shares.

For the uninitiated, bonus shares are issued by a company for free in proportion to the existing number of shares held by shareholders. 

The development comes at a time when the startup’s shares have been on a downward spiral for the last few weeks. The stock hit a fresh 52-week low of INR 31.10 during the intraday trading on October 7 amid the broader market decline. 

The downward spiral of EaseMyTrip’s shares began on September 25 when Pitti sold 16.91 Cr shares for INR 37.22 apiece, 6.73 Cr shares for INR 37.42 per share, and 1 Cr shares for INR 38.28 apiece. With this, Pitti’s stake in the startup was reduced to about 14% from over 28% at the end of the June quarter. Since then, the startup’s shares have fallen over 16%.

In the past, EaseMyTrip has issued bonus shares twice. In October 2022, the startup’s board approved the issuance of bonus shares in the ratio of 3:1 and a stock split. Before that, the company issued bonus equity shares in the proportion of 1:1 in February 2022.

On the business front, EaseMyTrip has made a number of new announcements in recent months. On September 17, the company announced the acquisition of a 30% stake in Rollins International Private Limited for INR 60 Cr ($7.15 Mn) and a 49% stake in Pflege Home Healthcare Center LLC for INR 30 Cr ($3.5 Mn) to enter the medical tourism space. 

Last month, the company also incorporated a wholly owned subsidiary Easy Green Mobility to foray into electric bus manufacturing. It plans to invest INR 200 Cr for R&D, product development, and setting up a manufacturing plant over the next 2-3 years.

Shares of EaseMyTrip ended today’s trading session 3.52% higher at INR 34.13 on the BSE.

The post EaseMyTrip To Consider Bonus Issue Amid Slump In Share Price appeared first on Inc42 Media.

In the run up to its much-awaited initial public offering, foodtech major Swiggy allotted employee stock options (ESOPs) worth over INR 1,748.41 Cr (over $208.2 Mn) to its founder and group CEO Sriharsha Majety. 

As per the startup’s updated draft red herring prospectus (DRHP) filed with SEBI, the company allotted 48.56 Mn shares to Majety as part of its Swiggy Employee Stock Option Plan 2024.

The company’s IPO papers mention that the last selling price of its shares was INR 360, when Ark India sold 210K shares for INR 7.56 Cr. On the basis of this price, Majety was awarded shares worth INR 1,753.27 Cr. 

Besides the CEO, the company also awarded ESOPs to other executives. Overall, the company granted 85.35 Mn ESOPs worth over INR 3,072 Cr  (over $365.9 Mn) under ESOP 2024 scheme.

The company said that no options have vested and no options have been exercised. 

Other prominent names that were recipients of the stock options were CFO Rahul Bothra (2.09 Mn), CTO Madhusudhan Rao Subbarao (2.09 Mn), head HR Girish Menon (2.09 Mn), Ashwath Swaminathan (1.39 Mn), CGO and cofounder Phani Kishan Addepalli (2.09 Mn), cofounder Lakshmi Nandan Reddy Obul (2.09 Mn), Swiggy food marketplace CEO Rohit Kapoor (2.37 Mn), and Swiggy Instamart CEO Amitesh Jha (3.24 Mn). 

It is pertinent to mention that Swiggy filed its updated DRHP last month. Swiggy’s public issue was to comprise a fresh issuance of shares worth INR 3,750 Cr and an offer for sale (OFS) component of 18.53 Cr equity shares. 

In the run up to its IPO, the foodtech major also received approval from its shareholders to increase the size of the fresh issue in its IPO to INR 5,000 Cr.

The OFS will see Majety selling up to 1.74 Mn equity shares in the IPO. Investors such as Accel, Coatue, Alpha Wave, Elevation, Norwest and Tencent will also sell shares as part of the OFS component. While Accel India IV (Mauritius) Ltd will offload 1.05 Cr shares, Alpha Wave Ventures will dump 55.73 Lakh shares as part of the OFS component. 

The post Swiggy Allots ESOPs Worth INR 1,748 Cr To Founder Sriharsha Majety Pre-IPO appeared first on Inc42 Media.

A probe by the Tamil Nadu government has reportedly found that a fire at the anodising plant was the ‘most probable cause’ behind the major fire at Tata Electronics’ iPhone manufacturing unit in Hosur last month.

The fire broke out in the anodising plant due to a failure in the thermostat control of one bath, Economic Times reported a source as saying.

The fire spread through the air duct and completely destroyed the anodising facility, as per the probe report which has been shared with the executives of Tata Electronics as well. However, a detailed investigation is still underway.

The report said that the findings of the probe will be submitted to the Directorate of Industrial Safety and Health (DISH) for review once the probe is completed.

“Right now, the structures are unstable, and Tata Electronics is conducting its own assessment for an insurance claim, so the government will have to wait before probing further,” another source was quoted as saying. 

It is pertinent to note that the fire disrupted operations at the iPhone plant. Following the mishap, Apple dispatched a supplier responsibility (SR) team to assess the situation and provide guidance to the contract manufacturer.

On October 3, Tata Electronics announced plans to partially resume operations at the facility. 

Over the last few years, India has emerged as an important manufacturing destination as Apple looks to diversify its production beyond China. The tech giant manufactures one in seven iPhones in India and aims to manufacture about 25% of its iPhones in the country over the next 3-4 years. 

As per reports, Apple will be manufacturing the entire range of its recently launched iPhone 16 in India.

It has also started procuring iPhone components from India, and many of Apple’s suppliers are setting up their base in the country.

Besides, India is also a big market for Apple. The company’s annual sales in the country touched the $8 Bn mark in FY24. Amid the growth in sales, the company is said to be preparing to open four new retail stores in India.

The post Tata iPhone Plant Fire: Anodising Plant Likely Source, Finds Probe appeared first on Inc42 Media.

In the run up to the launch of its District app, Zomato has bolstered its ‘going out’ vertical by roping in BookMyShow’s former live events and IP head Kunal Khambhati. 

Khambhati worked with BookMyShow for over seven years and led live events and intellectual property development for all markets, including India, Indonesia and Sri Lanka. He left the company in April, as per his LinkedIn profile. 

Sources close to Zomato confirmed that Khambhati has joined the company. However, Inc42 couldn’t ascertain his designation for the new role.

The Ken was the first to report about him joining Zomato. 

Khambhati will join other senior executives that Zomato recently onboarded to bolster its going out business. In July, the company brought back Rahul Ganjoo and Pradyot Ghate, who left Zomato in 2023. Back then, it was reported that the two executives will helm the going-out business. 

Zomato has been teasing the launch of a new app ‘District’ for the going-out business since August. The app will allow customers to discover and book restaurants and book tickets for movies, sports, live performances, among others.

To take on BookMyShow, the leader in the live events space, Zomato acquired Paytm’s entertainment ticketing business in August for INR 2,048 Cr. 

In a recent interview to Moneycontrol, Zomato founder and CEO Deepinder Goyal said that the company plans to upgrade stadiums in the country to provide a better experience for the customers in the live events space. 

“We’ll have to (build stadiums) at some point. Otherwise, the song, the artists, the work and experience will not really be worthwhile. We won’t build like a Zomato stadium but we will partner with someone and propose to upgrade the infrastructure and give the stadium a facelift. We can take care of the capex, and in exchange ask for 40 rental free days in a year,” the publication quoted him as saying. 

It is pertinent to mention that the live events space is seeing a strong demand in the country. In fact, Zomato, which was the exclusive ticketing partner for Diljit Dosanjh’s ‘Dil-luminati Tour – India’, saw the tickets for the concert being sold out in minutes and being resold at sky-high prices on ticket reselling platforms after it. The same was the case with BookMyShow, which was the partner for ‘Coldplay: Music Of The Spheres World Tour’.

Shares of Zomato ended Tuesday’s trading session 4.75% higher at INR 279 on the BSE. 

The post Zomato Onboards Former BookMyShow Executive Kunal Khambhati appeared first on Inc42 Media.

Digital payments major PhonePe has announced a partnership with ICICI Bank to roll out credit-on-UPI for customers of the bank. 

In a statement, ICICI Bank said that the service will only be available for pre-approved customers on the PhonePe app. The new service will enable select customers to avail a credit line (for making UPI payments) of up to INR 2 Lakh with a repayment period of 45 days.

“This credit line is interoperable across various UPI payment applications and provides customers the facility of transacting using any UPI payment app,” added the bank. 

Commenting on the partnership, head of payments at PhonePe Deep Agrawal said, “… This partnership will enable customers to avail flexible short-term credit through a fully digital user experience from within the PhonePe app instantly. Credit line on UPI is yet another innovative product offering that will unlock and revolutionise access and use of credit in the country…”.

Chiming in, ICICI Bank’s head of payment solutions Niraj Tralshawala added, “…At the anvil of the festive season, the pre-approved customers of ICICI Bank can activate the credit line instantly to make payments for their festive shopping needs on PhonePe”.

The collaboration will enable the two companies to expand their offerings, tap into new customers, create additional streams of revenue with interest payments, and enable high-value purchases.

This follows PhonePe introducing credit line on UPI in August this year, which allows users to link their bank’s credit lines directly to UPI on the platform. This comes a year after the Reserve Bank of India (RBI) expanded the scope of UPI to include pre-approved credit lines. 

It is pertinent to note that the credit line on UPI utilises the existing UPI infrastructure for a seamless experience.

The development comes as UPI transactions recorded a modest month-on-month (MoM) increase of 0.53% in September 2024, rising to 1,504 Cr from 1,496 Cr in the previous month. On a year-on-year basis, the transaction count saw a significant surge of 42%.

According to data from the National Payments Corporation of India, the total UPI transactions processed in September amounted to INR 20.64 Lakh Cr, up from INR 20.61 Lakh Cr in August.

The post PhonePe Partners ICICI Bank To Offer Credit Line On UPI For Select Users appeared first on Inc42 Media.

Continuing on the path to recovery, shares of fintech major Paytm surged 15.65% to end Tuesday’s (October 8) trading session at INR 753.60. With this, the startup’s market capitalisation also jumped to $5.71 Bn. 

The upswing came a day after the startup’s founder and CEO Vijay Shekhar Sharma reiterated Paytm’s focus on doubling down on its core business of consumer payments. 

Speaking at a CII event in Kolkata on Monday, Sharma said that the company will look to reinvest in the consumer payments business area. “Payments remain our primary business, and the merchant side continues to be strong. However, we lost a significant consumer base due to regulatory constraints. Moving forward, we aim to reinvest in the consumer payments business area,” PTI quoted him as saying.

The comments came on the heels of Paytm selling its entertainment ticketing business to Zomato for INR 2,048 Cr in an all-cash deal.

On Monday, Paytm also announced allotting 93,284 equity shares to its employees under Employee Stock Option Scheme 2019 and Employee Stock Option Scheme 2008. 

It is pertinent to note that the shares of Paytm have been on an upswing for the past four weeks. Last week, the stock gained 3.39% to end the week at INR 695.20. 

Earlier this month, Paytm announced its plans to double down on the use of artificial intelligence (AI). As part of this, it appointed its payments CTO Manmeet Dhody as ‘AI Fellow’ to drive its projects related to AI innovation in business. It also elevated senior VP of Technology Deependra Singh Rathore as its new payments CTO. 

Despite the recent bull run, it is pertinent to note that the company’s shares are currently trading over 60% lower than its listing price of INR 1,950. Paytm went public in November 2021. 

Recently, Sharma also expressed regret on his choice of investment bankers for the company’s initial public offering (IPO). “I have been an entrepreneur long enough now. I have a regret of not choosing the correct bankers for the IPO,” Sharma said last month. 

The post Paytm Zooms Over 15% After Vijay Shekhar Sharma Reiterates Focus On Consumer Payments appeared first on Inc42 Media.

Caller identification app Truecaller has named Airtel veteran Seema Jindal as the head of public affairs, telecom in India.

In her new role, Jindal will work with government agencies like TRAI and DoT to aid Truecaller’s growth and compliance efforts, the company said in a statement.

“As the digital communication landscape evolves in India, my focus will be on ensuring that Truecaller remains at the forefront of regulatory compliance while continuing to build and strengthen partnerships with government bodies and industry stakeholders,” said Jindal. 

With over 25 years of experience across various roles in regulatory, interconnection and compliance, she was at the helm of Airtel in implementing regulations around telecommunication spam using digital ledger technology.

In her most recent position at Airtel, she served as the head of regulatory affairs for DLT, DTH, teleports, and VSAT, leading the implementation of a regulatory framework for telecommunication spam.

It is pertinent to note that India is Truecaller’s largest market and it contributed 74.2% of the Swedish caller identification platform’s total net sales in the first quarter of 2024 calendar year. 

India generated $29.2 Mn (INR 244.2 Cr) in revenue, an 8% increase year-on-year (YoY). 

The company’s net sales also grew 9% YoY in Africa and the Middle East, and 24% YoY in other regions. Overall, Truecaller’s revenue rose 10% YoY to $39.4 Mn (INR 329.3 Cr) from $35.7 Mn (INR 298.4 Cr) in the same quarter last year.

The growth comes as Truecaller expands its services in India, introducing an AI-powered call recording feature in February and launching Truecaller Assistant, an AI feature that supports Hindi, English, and Hinglish.

Last year, Truecaller acquired the Bengaluru-based TrustCheckr, which helps businesses verify customer information and detects the risk of fraud based on phone numbers and digital signals.

The post Truecaller Ropes In Airtel Veteran Seema Jindal As Head Of Public Affairs, Telecom appeared first on Inc42 Media.

Shares of online travel aggregator (OTA) Yatra slumped as much as 1.6% to hit an all-time low at INR 119.50 during the intraday trade on the BSE today (October 8). This also marks the fresh 52-week low for the stock.

However, the stock pared some loss later and was trading 1.28% up at INR 123 at 2 PM on the BSE. 

Till 2 PM, Yatra’s market capitalisation stood at INR 1,930.07 Cr ( $229.8 Mn) and as much as 1.52 Lakh shares traded hands on the bourses. 

Yesterday (October 7), the Indian benchmark indices incurred a slump with sensex losing 202.80 points, closing at 82,352.64. 

Factors like geopolitical tensions and foreign institutional investors’ selling pressure were attributed to this downturn in the market. 

However, the senses regained 642.64 points to trade 0.85% up at 81,735.05 at 2:08 PM today. 

Yatra made its market debut in September last year, listing at INR 130 against its upper price band of INR 142 for the IPO. 

Since its listing, the stock has given a negative return of 6.5% to its retail investors. 

Eyeing to increase its customer base, Yatra is on acquisition shopping and has acquired companies like Globe All India Services Limited, Adventure and Nature Network (ANN) and Air Travel Bureau (ATB) over the period. 

Founded in 2016 by Shringi, Manish Amin and Sabina Chopra, Yatra is an online travel aggregator (OTA) and India’s largest corporate travel services provider. To date, it has bagged a total funding of $151.56 Mn till date. 

On the financial front, Yatra’s consolidated net profit declined 32.5% to INR 4.04 Cr in Q1 FY25 from INR 5.99 Cr in the year-ago quarter. Sequentially, it declined about 27% from INR 5.57 Cr.

The jump in top line came even as operating revenue declined both on an annual and sequential basis. Revenue stood at INR 100.80 Cr in Q1 FY25, down 8.5% year-on-year (YoY) and 6.3% quarter-on-quarter (QoQ).

The post Yatra Shares Hit An All-Time Low At INR 119.50 appeared first on Inc42 Media.

Shares of foodtech major Zomato climbed over 4% in early trading hours today (October 8) after brokerage HSBC reaffirmed its ‘buy’ call on the stock, citing the company’s lead over Swiggy in terms of both growth and profitability across food delivery and quick commerce businesses.

The stock jumped as much as 4.4% to INR 278.15 apiece on the BSE after HSBC raised its price target to INR 330 apiece from INR 260 per share earlier. This would imply an upside potential of almost 24% from the stock’s previous close.

Notably, shares of the Deepinder Goyal-led company have rallied over 122% on a year-to-date basis. By comparison, Sensex has gained a little under 13% during this period.

The bull-run in the stock’s price has been fueled by the company’s improving profitability and growth in its top line. Zomato saw its consolidated net profit jump multifold to INR 253 Cr in the June quarter of the financial year 2024-25 (Q1 FY25) from INR 2 Cr in the year-ago period.

Meanwhile, revenue from operations jumped 74% to INR 4,206 Cr in Q1 FY25 from INR 2,416 Cr in the corresponding quarter last year. 

Analysts at HSBC noted that Zomato continues to dominate the food delivery and quick commerce markets, outpacing IPO-bound Swiggy. Although the competition intensity in the food delivery market seems to be stabilizing, there’s enough room for Zomato to improve its take rates.

On the other hand, Swiggy, which recently received approval from its shareholder to increase the fresh issue component of its IPO to INR 5,000 Cr, lags behind the Deepinder Goyal-led company in the food delivery market across parameters such as active user base, gross order volume, and order frequency growth, the brokerage said.

It further underscored that Swiggy’s quick commerce arm Instamart is struggling to keep pace with Zomato’s Blinkit, but it still has scope to recover in terms of market share and profitability.

Blinkit Leads The Quick Commerce Race

As of Q1 FY25, Blinkit achieved an annual gross merchandise value (GMV) of $2.4 Bn, up 84% from Instamart’s $1.3 Bn, driven by its outperformance across key metrics such as dark store additions, average order volume scale and orders per day per store.

Over the last two years, Blinkit has opened 260 dark stores as compared to 121 stores added by Instamart. At the end of Q1 FY25, Blinkit operated 639 dark stores while Swiggy had 581.

Blinkit clocked a GOV of INR 4,923 Cr during the quarter — 1.8X higher than Swiggy Instamart. Its take rates were also higher by 430 basis points than that of Instamart.

In a recent research note, Morgan Stanley noted that Zomato commanded a market share of 58% in the food delivery segment, up from 54% in FY22. It is also ahead of Swiggy in terms of contribution margins and adjusted EBITDA due to its scalability.

Meanwhile, Swiggy Instamart continues to underperform as compared to Zomato’s quick commerce arm Blinkit, with difference in average order volume and take rate driving the margin difference. While Swiggy Instamart posted an adjusted EBITDA loss of -11.7% in Q1 FY25, Blinkit almost reached an EBITDA break even (-0.1%), the brokerage said.

The post Zomato Shares Rally Over 4% As HSBC Raises Target To INR 330 appeared first on Inc42 Media.

Following the settlement of a two-year long legal dispute between BharatPe and Ashneer Grover, the fintech startup’s former managing director, his wife Madhuri Jain, among others, have moved the Delhi High Court seeking quashing of an FIR filed with Delhi Police’s Economic Offences Wing (EOW) in the case.

The petitioners said that since the parties reached a settlement on September 30, the FIR should be quashed. They sought some time to file the affidavit regarding the compliance of the terms of the settlement agreement, following which the HC asked them to file it within two days.

The court also asked BharatPe’s director to file an authorisation letter issued to him on behalf of the fintech company within two days. 

Earlier, sources close to BharatPe told Inc42 that the startup would not object if the Grovers appealed to a court to quash the FIR.

The case dates back to January 2023, when BharatPe filed a civil suit against Grover and his family members for alleged embezzlement of funds. The fintech unicorn also sought up to INR 88.67 Cr in damages.

Following this, the Delhi Police EOW registered an FIR against Grover, his wife, and other family members alleging a fraud of INR 81 Cr.

As part of its investigation into the matter, Delhi Police arrested Grover’s brother-in-law Deepak Gupta, who was accused of instructing the vendor Amit Kumar Bansal, last month.

However, by the end of September, the fintech giant settled the case with Grover, stating that the ex-cofounder will not be associated with BharatPe in any capacity nor be a part of the shareholding of the company.

“Certain shares of Mr Grover shall be transferred to the Resilient Growth Trust for the benefit of the company and his remaining shares will be managed by his family trust,” BharatPe said in a statement.

The post Ashneer Grover Seeks Quashing Of EOW FIR After Settlement With BharatPe appeared first on Inc42 Media.

Zomato’s chief executive Deepinder Goyal has said that malls should be “more humane” towards delivery partners, as he shared his firsthand experience as a delivery agent while picking up orders for the food tech giant.

Goyal and his wife, Grecia Munoz, who now goes by Gia Goyal on Instagram, took on the role of delivery partners in Gurugram to gain firsthand experience of the challenges faced by delivery executives while dropping orders.

The duo shared a video on Instagram in which Goyal revealed he was instructed to use the stairs and was not allowed to enter a mall in Gurugram while delivering food.

In the post, Goyal shared his experience, saying, “During my second order, I realised that we need to work with malls more closely to improve working conditions for all delivery partners. And malls also need to be more humane to delivery partners. What do you think?”

The video features Goyal approaching the mall’s entrance in a red Zomato delivery uniform. In the video, he is seen having a brief conversation with the security guards, who direct him to a side staircase. He then inquires about any special elevators for delivery executives before proceeding to climb the stairs to the third floor to reach the restaurant.

This comes days after Goyal announced that he will not be appearing in the upcoming season of Shark Tank India. His absence follows competitor Swiggy’s request for Goyal’s removal as part of their sponsorship deal for the TV show.

Meanwhile, the company has been consistently improving its profit margins on the back of strong growth in its business, particularly in its quick commerce vertical Blinkit.

Zomato’s consolidated net profit surged multifold year-on-year (YoY) to INR 253 Cr in Q1 FY25, while revenue from operations jumped 74% YoY to INR 4,206 Cr.

The company aims to strengthen its revenue by focusing on the going-out business. As part of this strategy, Zomato has acquired Paytm’s event and movie ticketing subsidiaries and launched the “Book Now, Sell Anytime” feature, allowing users to sell tickets for any live event purchased through the Zomato app.

The post Zomato CEO Deepinder Goyal Calls On Malls To Be ‘More Humane’ Towards Delivery Partners 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.

Zomato cofounder and CEO Deepinder Goyal will not be seen in the upcoming season of Shark Tank India, as the foodtech major’s competitor Swiggy has sought Goyal’s removal as part of a deal to sponsor the TV show. 

“I unfortunately can’t go back because Swiggy sponsored Shark Tank this time and kicked me out,” Goyal told Economic Times.

As per a separate report by Moneycontrol, IPO-bound Swiggy has stipulated in the sponsorship agreement that Goyal should not be part of the panel of judges on the TV show. The Bengaluru-based foodtech major is said to be close to finalising a deal to sponsor the fourth season of Shark Tank India for INR 25 Cr.

Meanwhile, responding to a question on Swiggy’s IPO, Goyal said, “I genuinely don’t know, and we don’t even think about it. We’ll see what happens.” 

On September 26, Swiggy filed its updated draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for its IPO. As per the draft document, the public issue will comprise a fresh issue of shares worth INR 3,750 Cr and an offer for sale (OFS) of 18.57 Cr shares. However, earlier this week, the foodtech giant received approval of its shareholders to increase the size of the fresh issue in its IPO to INR 5,000 Cr.

Swiggy plans to utilise INR 950 Cr from the IPO proceeds to fuel marketing and brand awareness to shore up growth and woo more customers.

The development comes at a time when Swiggy has launched a slew of new offerings in the runup to its IPO. The company announced the launch of a bulk order service called ‘Swiggy XL EV’ fleet in Gurugram on Saturday (October 6), almost a month after Inc42 exclusively reported that it was piloting a large order fleet.

Prior to that, the company also launched ‘Bolt’ to deliver quick-to-prepare dishes in 10 minutes in six cities – Bengaluru, Hyderabad, Mumbai, Chennai, Delhi, and Pune. The IPO-bound major is also said to be experimenting with high-priced concierge membership that offers subscribers purchase access to high-end experiences and events.

Swiggy’s consolidated net loss widened over 8% to INR 611 Cr in the first quarter (Q1) of the fiscal year 2024-25 (FY25) from INR 564.08 Cr in the year-ago period. Revenue from operations zoomed 35% to INR 3,222.2 Cr during the quarter under review from INR 2,389.8 Cr in Q1 FY24.

The post Zomato’s Deepinder Goyal Out Of Shark Tank India As Rival Swiggy Set To Sponsor The Show appeared first on Inc42 Media.

In an effort to bolster its footprint ahead of the initial public offering (IPO), foodtech major Swiggy has now launched a bulk order service called ‘Swiggy XL EV’ fleet in Gurugram, designed to serve large groups.

According to the company, the new initiative was under pilot run for the past few weeks, and has now entered the market on the day of Haryana elections.

Last month, Inc42 exclusively reported about Swiggy’s pilot phase of the large order fleet in Delhi NCR region. Back then, the Invesco-backed startup partnered with a three-wheeler EV maker for the initiative.

As part of its launch, Swiggy XL EV fleet delivered 3,500 meals to electoral officials at more than 580 polling booths in Gurugram and Badshahpur constituencies. This service was provided free of cost to the district administration.

“The festival season is perhaps the best time to launch this service, when there is gaiety and joy all around, and everyone celebrates with their loved ones. Swiggy XL will ensure that there is no interruption in parties and gatherings and no delay in large orders,” said Sidharth Bhakoo, national business head of Swiggy Food Marketplace.

Swiggy XL EV fleet will be extended to new cities in the coming weeks, confirmed Bhakoo.

He went on to add, “The service has an important environmental angle as well since the entire fleet is electric and it saves multiplicity of order trips.”

This development comes at the heels of its recent launch of a new service called Swiggy Bolt, to deliver quick-to-prepare dishes in 10 minutes. This new offering is currently operational in six cities – Bengaluru, Hyderabad, Mumbai, Chennai, Delhi, and Pune. 

Furthermore, the company is currently experimenting on a high-priced concierge membership that offers subscribers purchase access to high-end experiences and events that are not available to the general public, as per reports.

With the startup set to go public, Swiggy has reportedly received approval from its shareholders, earlier this week, to increase the size of the fresh issue in its initial public offering to INR 5,000 Cr from INR 3,750 Cr earlier.

The post Now, Swiggy Rolls Out Electric Fleet For Larger Orders In Gurugram appeared first on Inc42 Media.

Doubling down on its artificial intelligence (AI) play, fintech major Paytm said it has appointed its CTO Manmeet Dhody as “AI Fellow” to drive its projects related to AI innovation in business. 

Dhody has been with the company since 2020, joining as CTO-Payments. His over two decade long prior work experience has seen him lead software development for over seven years for ecommerce major Amazon between 2012-2020, serve as the principal development lead for Microsoft, and hold the position of director in US-based software development company Quark. 

Meanwhile, Paytm has elevated senior VP of Technology Deependra Singh Rathore as its new CTO-Payments. Interestingly, Rathore helmed AI-led strategic initiatives and oversaw design and implementation of payment products and services during his ongoing eight-year tenure with the company. 

He joined the company as a senior VP for its associate Paytm Payments Bank in 2016. Before joining Paytm, he worked as an engineering manager for Snapdeal for over a year between 2014-16. Prior to that, he worked for AGNITY and GENBAND. 

Paytm credits him for building its payments technology to provide exhaustive payment solutions to merchants and customers such as online payment gateway, QR payments, card payments.

“As India’s leading tech innovator, we have always championed innovations that drive mobile payments and inclusive financial service distribution to masses. We are excited to see Deependra Singh Rathore step into the role of CTO, and build for financial services in the AI age. We also welcome Manmeet as an AI Fellow, helping accelerate our vision of integrating AI-driven processes across our business operations,” a Paytm spokesperson said. 

This comes about a month after Paytm chief Vijay Shekhar Sharma said that the company is “fully committed” to integrating AI in its core payment business. 

“Some technologies being built are so good, if you fork it out, it could become a standalone business vertical. Risk management options, credit risk, fraud risk, future underwriting of insurance will all be led by AI. The generative AI interaction with financial services will be underwriting,” Sharma said during the company’s 24th annual general meeting on September 12. 

However, it is pertinent to note that the company has also attributed its mass layoff spree to AI adoption. Earlier, sources told Inc42 that Paytm has been adopting AI wherever possible to drive up efficiency since last year, resulting in layoffs. The company has laid off hundreds of employees since 2023.

“For the coming year, while we continue to invest in the merchant sales team, as well as risk and compliance functions, we expect reductions in other employee costs. We expect annualised people cost savings of INR 400 – INR 500 Cr,” Paytm said in its annual report for FY24. 

The post Paytm Fortifies Its AI Play, Appoints Payments CTO Manmeet Dhody As AI Fellow appeared first on Inc42 Media.

IPO-bound foodtech major Swiggy has launched a new service to deliver quick-to-prepare dishes in 10 minutes. 

Called Swiggy Bolt, the new offering is currently operational in six cities – Bengaluru, Hyderabad, Mumbai, Chennai, Delhi, and Pune. 

In a statement, Swiggy said that the new offering will deliver food from popular restaurants and QSR chains within two kilometre radius of the consumer. 

Bolt will feature dishes such as burgers, hot and cold beverages, breakfast items, and biryani that require minimum preparation time. The new offering will also focus on ready-to-pack dishes like ice cream, sweets and snacks. 

“Customers can choose from a mix of well-known national brands like KFC, McDonald’s, Burger King, Baskin Robbins, Starbucks, Chaayos, and EatFit, alongside local favourites… “ the statement added. 

The company also claimed that the delivery partners will not be informed of the distinction between Bolt and regular orders, adding that they will not be penalised or incentivised based on delivery time.

“Bolt is the next evolution in our mission to provide unmatched convenience. Ten years ago, Swiggy revolutionised food delivery by cutting average wait times to 30 minutes. Now, we’re reducing that wait even further for frequently ordered items… ,” Swiggy’s food marketplace division’s CEO Rohit Kapoor said. 

In a post on LinkedIn, Kapoor said that Swiggy is eyeing a pan-India roll out of the service in the near future. 

This comes nearly a month after Inc42 reported that the IPO-bound foodtech launched ‘Cafe’ in a few localities in Bengaluru to deliver snacks and beverages in 15 minutes. At the time, it was reported that Swiggy Cafe had curated a few beverage options such as coffee, milkshakes, and protein bars from brands like Blue Tokai and The Whole Truth under the new offering.

Earlier today, it was also reported that the foodtech major has started piloting a high-priced concierge membership that offers subscribers purchase access to high-end experiences and events that are not available to the general public.

However, the 10-minute delivery space is not something new for the IPO-bound startup. In 2022, it launched Swiggy Instacafe in a pilot mode under its quick commerce arm Swiggy Instamart. It was said to be making deliveries of pre-made food and snacks, along with groceries, through its dark stores in certain pockets of Bengaluru back then. 

Swiggy’s competitor Zomato also launched a similar service ‘Zomato Instant’ in Gurugram in April 2022 but “rebranded” the vertical due to “not getting the daily volume required to even meet the fixed costs”. 

Meanwhile, a new competitor in the 10 minute food delivery space emerged recently. Swish, founded in August, began delivering select fast food in the HSR layout area of Bengaluru and is planning to expand its operations soon.

For Swiggy, the pilots come ahead of its much-anticipated IPO. The startup filed its updated draft red herring prospectus (DRHP) with market regulator Securities and Exchange Board of India (SEBI). On Thursday, the company got approval from its shareholders to increase the size of the fresh issue of shares in the IPO to INR 5,000 Cr. The IPO will also comprise an offer for sale of 18.53 Cr equity shares.

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