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.

Bengaluru-based B2B marketplace startup Zetwerk has joined the growing list of Indian startups eyeing an initial public offering (IPO). The Lightspeed-backed startup has held initial discussions with investment banker JP Morgan for its IPO, sources told Inc42. 

The startup’s top management has also held discussions with 2-3 other banks, the sources said. However, they added that the talks are at a preliminary stage and nothing is finalised yet.

The unicorn, last valued at $2.8 Bn, is looking to go public in the next two years.

Zetwerk didn’t respond to Inc42’s queries on the development. JP Morgan declined to comment. 

Founded in 2018 by Amrit Acharya, Srinath Ramakkrushnan, Rahul Sharma and Vishal Chaudhary, Zetwerk connects manufacturing companies with vendors and suppliers for procuring industrial machine components. 

Earlier this year, the startup announced an investment of INR 1,000 Cr to grow its electronics manufacturing capacity across IT hardware, television, mobile phones, hearable and wearable product segments.

In a statement, the unicorn then said that it was aiming to lead the ODM (original design manufacturer) as well as electronics manufacturing services space in the mobile phones, hearable and wearable space categories.

Zetwerk entered the television and display devices business by commissioning one of north India’s largest TV manufacturing facilities with a production capacity of 2.4 Mn units annually to cater to both domestic and international brands.

The startup has raised a total funding of over $700 Mn till date and counts Mars Growth Capital, Greenoaks Capital, Peak XV Partners, among its backers. 

Zetwerk indirectly competes against the likes of Moglix, OfBusiness, among others. 

It is pertinent to note that OfBusiness is also eyeing a $1 Bn IPO in the second half of 2025.

Amid the ongoing IPO boom in the Indian market, a number of new-age tech startups are lining up to go public. While 10 startups, including Ola Electric, Awfis, Go Digit, among others, have gone public so far this year, Swiggy, Ecom Express, MobiKwik, among others, are looking to make their public market debut in the next few months.

The post Exclusive: Zetwerk Begins Talks With JP Morgan, Other Bankers For IPO 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.

Gaming publisher Deftouch has secured an undisclosed amount of funding in a round co-led by KRAFTON, T-accelerate Capital and existing investor Lumikai. The round also saw participation from existing backers Visceral Capital and Play Venture. 

The Bengaluru-based startup plans to deploy the capital to scale up its existing portfolio of games (King Of Cricket), develop new games and hire new talent. 

Deftouch cofounder and CEO Ninad Bhagwat told Inc42 that the startup will also utilise the funds to experiment with new features and build “bold concepts” going forward. 

“We love to experiment with bold concepts. Even though we are building a cricket game right now, we like to experiment a lot with features that might unlock certain monetisation schemes and so on,” Bhagwat said.

Founded by Bhagwat and Keshav Sunder in 2017, Deftouch (previously All Star Games) is a mobile-game developer that primarily focusses on the sports category. It claims to have around 2 Lakh daily users. The startup claims that its ‘King of Cricket’ game racked up 10 Mn downloads in 2024.

Deftouch’s portfolio also includes games like Cricket Star, RCB Cricket and All Star Cricket.

It counts Kalaari Capital and angel investor Arun Venkatachalam among its early investors. In 2021, it bagged $1.5 Mn from Lumikai and Play Ventures.

On the latest funding round, Bhagwat said, “We are super excited to have on board KRAFTON India, T-Accelerate Capital and Visceral Capital. Their extensive industry knowledge and experience will help take us to our next milestones. We are also proud that Lumikai Fund and Play Ventures have shown continued support in this round, they have played an important role in our traction so far.” 

He added that the startup plans to raise its Series A round by the end of next year. 

The development comes close on the heels of KRAFTON India recently expanding the first cohort of its gaming incubator with the addition of two new startups – Dunali Games and Arjuna Studios. 

Last year, KRAFTON also committed to invest $150 Mn in Indian gaming and entertainment startups over the next two to three years. The South-Korean gaming major is also mulling establishing a research and development (R&D) facility in India by 2026.

The post Exclusive: Deftouch Bags Funding From KRAFTON, Others To Build Mobile Games appeared first on Inc42 Media.

Bengaluru-based used two-wheeler marketplace BeepKart fired around 130 employees in three rounds of layoffs in the last five months as part of a cost-cutting exercise amid a funding crunch, sources told Inc42.

The most recent restructuring exercise was undertaken in the last week of September, in which the startup let go of around 60-70 employees from its Bengaluru and Chennai offices and stores, the sources said.

Overall, BeepKart laid off around 40% of its employees in the last five months.

The latest restructuring exercise was undertaken in a similar manner to the previous two, with the founders addressing the employees in a town hall meeting. Following the meeting, the respective managers of the employees informed them that they were being laid off, multiple sources said.

“We were told the company was struggling to scale and didn’t have much cash to bear the cost, hence it was decided to undertake another round of layoffs,” one of the sources said.

The impacted employees were offered severance pay based on their notice periods. 

As part of this cost-cutting exercise, the startup also shut six out of its 11 stores across Bengaluru and Chennai over the last five months, as per the sources.

A questionnaire sent to BeepKart founders Hemir Doshi and Abhishek Saraf on the developments didn’t elicit any response till the time of publication of this story. 

Expansion Gone Wrong

Founded in 2021 by Doshi and Saraf, BeepKart operates a full-stack platform that allows users to buy and sell used two-wheelers online. The startup has raised a total funding of around $18 Mn till date and counts marquee investors like Vertex Ventures, Stellaris Venture Partners, Chiratae Ventures, and Innoven Capital among its backers. Currently, it offers its services in Bengaluru and Chennai.

According to the sources, strong competition and rising expenses forced the startup to reduce its headcount.

“Near the end of last year, BeepKart decided to expand its operations by opening new stores and hiring aggressively,” one of the sources said, adding that the startup was eyeing a rapid growth in its top line and looking to turn EBITDA positive.

As part of these plans, it opened new stores in Jayanagar, Rajajinagar, KR Puram in Bengaluru and Ashok Nagar and Poonamallee in Chennai. However, these stores failed to add to the startup’s top line and led to a surge in its costs. 

“The stores in Jayanagar and Kormangla were in the radius of just 4 kilometres. These stores cut each other’s market share, rather than adding new customers. The same happened with Poonamallee and Porur in Chennai,” one of the sources said. 

Following this, the startup changed its refurbishment policies in a bid to cut costs. This resulted in poor vehicle quality and customer complaints, the sources said. 

Inc42 also saw several social media posts with customers complaining about BeepKart. 

Meanwhile, BeepKart’s move to expand its margins by increasing prices also backfired as customers flocked to the startup’s competitors in the crowded space.

“Let’s say BeepKart is buying a bike at INR 60,000 from a customer and then trying to sell it at INR 1,00,000. When there are so many competitors in the space, why would a customer buy a used bike with so much of a premium when he/she can get it at INR 70,000 to INR 80,000 from competitors,” a source said.

BeepKart competes against the likes of TVS-backed DriveX, Yamaha-backed CredR, and BikeDekho, among others. 

The startup incurred a net loss of INR 28 Cr on an operating revenue of INR 22 Cr in FY23. While it is yet to file its financial statement for FY24, one of the sources said that it is likely to post a revenue of INR 100 Cr for the year.

The post Exclusive: BeepKart Fires 130 Employees In 5 Months To Cut Costs, Halves Store Count appeared first on Inc42 Media.

Nine months after joining Ola Consumer (formerly known as Ola Cabs) as its global chief business officer (CBO), Sidharth Shakdher is exiting the startup, sources told Inc42. 

In his role as global CBO, Shakdher used to oversee Ola’s revenue, growth, and marketing efforts in India, and cab business in international markets. 

Shakdher put down his papers recently and will be with the startup for about few more weeks, the sources said. 

“He is leaving Ola Consumer to pursue something on his own,” one of the sources said, adding that the Bhavish Aggarwal-led startup will announce a new CBO soon.

A query mail sent to Ola didn’t elicit any response till the time of publishing this story. Shakdher didn’t respond to Inc42’s calls and messages. 

Shakdher has over 24 years of industry experience. Before joining Ola, he was the chief marketing officer at Disney+ Hotstar. Prior to that, he was the head of marketing and growth at Amazon.

The fresh development comes almost a month after Ola Cabs was rebranded as Ola Consumer. Aggarwal, during the Ola Group’s annual event on August 15, said Ola Consumer will offer a host of consumer services to make ecommerce more accessible, affordable and efficient. 

In his address, Aggarwal said that the company will address multiple consumer issues via Ola Consumer. Firstly, he announced the relaunch of ride sharing service Ola Share. The service, which allows users to get cheaper rides by sharing them with others, was to go live in Bengaluru, followed by a nationwide rollout. 

Under the service, Ola said that trip deviations would be limited to less than 20 minutes and a maximum of two people can avail a shared taxi under the model. 

The company also launched a loyalty programme, Ola Coin. Under this, users transacting on Ola platform will get personalised loyalty benefits which can be redeemed across mobility, ecommerce and logistics services of Ola. 

Earlier this year, Ola Cabs laid off around 10% of its workforce. Its Indian CEO Hemant Bakshi also resigned within months of joining. 

Founded in 2010, Ola Consumer competes against the likes of Uber, BluSmart, Rapido in the ride-hailing segment in the country. 

ANI Technologies, the parent entity of Ola Consumer, saw its operating revenue rise 42% year-on-year to INR 2,779.3 Cr in FY23. Its loss halved to INR 772.3 Cr during the year.

The post Exclusive: Nine Months After Joining, Ola Consumer’s CBO Sidharth Shakdher Quits appeared first on Inc42 Media.

India Lifestyle Network (ILN), which runs MensXP, iDiva, and Hypp, is looking to separate from its parent Mensa Brands, sources told Inc42.

ILN founder Angad Bhatia is in talks with VC and PE firms to buy out Mensa’s stake in ILN. Mensa currently holds 100% stake in ILN. 

Confirming the development, Bhatia told Inc42, “… Mensa and ILN have been approached by a few strategic investors given the interest in new-age media and the assets ILN has built. Both ILN and Mensa are excited and considering these options, and are also now in discussions with other stakeholders in the larger content and media ecosystem.”

ILN wants to operate as a separate entity as it believes that Mensa’s growth priorities don’t align completely with ILN’s, the sources said, adding that Mensa is unable to provide the capital required for ILN’s growth.

“Once the separation is complete, ILN will run independently and continue to raise capital to grow further,” one of the sources said.

Bhatia further told Inc42, “Given the strategic interest from multiple players we will explore what makes sense. ⁠Both ILN & Mensa teams are excited about aligning with an institution that supports its growth ambitions while maintaining synergies with Mensa.”

MensXP, a lifestyle portal for men founded in 2009, plans to foray into offering educational courses as an independent entity. Besides, it is likely to restart its influencer-commerce business, which it shut down after its acquisition by Mensa. 

Responding to this, Bhatia said, “Both MensXP and iDiva have established scaled audience platforms, tightly knit communities, and video shows tapping into social culture. This forms the foundation for their commerce initiatives. You may recall that MensXP previously built a large ecommerce footprint across beauty, fashion, and more before its acquisition by Mensa. There’s strong conviction around rebuilding ILN’s commerce ambitions with fresh formats.”

Mensa acquired ILN in 2022 for about $100 Mn from Times Internet. Inc42 exclusively reported about the acquisition then.

The three brands under ILN have amassed over 20 Mn social media followers, over 100 Mn monthly active users (MAUs), and over 250 Mn video views per month since their inception. 

iDiva, incorporated in 2009, is a women-focussed platform that generates content across beauty, fashion, health and wellness, and lifestyle categories, among others. Delhi NCR-based Hypp is a full-stack creator management and marketing platform for digital influencers.

On the other hand, Mensa was founded in 2021 by former Myntra CEO Ananth Narayanan. It is a house of brands unicorn that acquires digital-first startups across sectors and then scales them. Its cap table includes Accel Partners, Prosus, Tiger Global, Alpha Wave, Norwest Ventures, CRED’s Kunal Shah, among others. 

Mensa has raised over $300 Mn in funding till date and was one of the fastest startups to achieve the unicorn status. 

Mensa has acquired brands such as Pebble, Karagiri, MensXP, and iDiva, Dennis Lingo, among others, till date.

The post Exclusive: Two Years After Acquisition, MensXP Eyes Separation From Parent Mensa Brands appeared first on Inc42 Media.

Following Zepto’s path, IPO-bound food delivery major Swiggy has launched ‘Cafe’ to deliver snacks and beverages in 15 minutes.

The option is currently available in a few localities in Bengaluru. 

Swiggy Cafe has 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. Meanwhile, there are also some snacks and fries available without a brand name.

Zepto Cafe, launched in 2022 and currently available in Mumbai, also has a hybrid approach, with a mix of branded pre-made food and non-branded food items. 

This is not the first time that Swiggy is experimenting with quick deliveries of snacks. Back in 2015, the startup tied up with a few cloud kitchens in Bengaluru to offer 15-minute delivery services. In early 2023, Swiggy Instamart piloted Instacafe to deliver pre-made food and snacks along with groceries through its dark stores in certain pockets of Bengaluru. 

However, the new Cafe option is available under the food delivery option on the Swiggy app and not under Instamart. The new offering seems to be in the pilot stage. An email sent to Swiggy seeking details about Cafe didn’t elicit any response till the time of publishing this story. 

The development comes at a time when Swiggy is preparing for its IPO. As per a recent report, the food delivery and quick commerce startup plans to get shareholders’ approval to raise INR 5,000 Cr through fresh issuance of shares in its IPO as against previously planned amount of INR 3,750 Cr.

Swiggy is also said to be targeting a valuation of $15 Bn for the IPO. It was last valued at $10.7 Bn.

Besides, it also continues to be a loss-making entity. Swiggy’s revenue grew 36% year-on-year (YoY) to INR 11,247 Cr in FY24 while net loss narrowed 44% YoY to INR 2,350 Cr. 

Last week, Inc42 reported that Swiggy is also piloting a large order fleet in the Delhi NCR region. Besides, the startup also launched several new features on its app recently, including a group ordering option and ‘incognito mode’ for private ordering.

Pertinent to note that besides Swiggy, Zomato has also tried its hand at quick deliveries of snacks in the past with ‘Zomato Instant’. Besides, Swish also launched its 10-minute food delivery service last month. The startup delivers a range of fast food offerings in 10 to 15 minutes via its app in select locations of Bengaluru.

The post Exclusive: Swiggy Launches ‘Cafe’ To Deliver Snacks, Beverages In 15 Minutes appeared first on Inc42 Media.

With the focus on design being a critical aspect of the Semicon India programme, India aims to launch 3-4 major products in the semiconductor space in coming years, union railways and electronics and IT minister Ashwini Vaishnaw said today (September 11).

Vaishnaw made the comments during the three-day Semicon India 2024 event being held in Greater Noida from September 11 to 13.

Launched in 2021, the Semicon India scheme aims to provide subsidies to companies engaged in semiconductor fabs, display fabs, chip packaging, sensors and semiconductor design, among others.

The minister further said that more than a dozen semiconductor design companies have received fiscal support under the scheme, and have already begun working on their respective products. Some of these ecosystem partners have also attracted VC interest.

Underlining that all the commissions around semiconductor plants have happened in a record time period, he said that India has set a benchmark for the world regarding fast approval and kicking off construction on new semiconductor plants in the country. 

“In a very short time frame, 5 semiconductor units have been approved. Construction is rapidly under progress in the micron unit, the Morigaon Tata unit, the construction has started and in the other three units, the construction will start soon,” Vaishnaw added. 

Notably, there are five semiconductor proposals at present with the total investment nearing 1.52 Lakh Cr.  

Outlining the intentions to bolster India’s talent pool, Vaishnaw said, “We have committed to developing a strong talent pool of 85,000 engineers and our technicians in the next 10 years.”

For this, the minister added that the government has partnered with 113 universities, academic institutions and R&D to offer semiconductor-focused course curriculum designed by industry participants. 

Vaishnaw noted that the semiconductor industry is a foundational industry which has a tremendous multiplier effect across the entire economy. 

“The scale of electronics and mobile manufacturing is expanding rapidly in our country, and establishing the semiconductor units will drive exponential growth in the automobile, medical, industrial, transport, consumer electronics, practically in every manufacturing sector,” he added. 

The minister added that the growth of the semiconductor industry will further deepen the prime minister’s vision of democratising access to democracy. 

Vashnaw’s speech came on the sidelines of Prime Minister Narendra Modi’s speech at the same platform wherein he announced that the Centre has set up a special reserve fund with an outlay of INR 1 Lakh Cr to drive innovation in the semiconductor and science and technology sector.

Modi also pointed out that the government is taking a 360-degree approach to boost semiconductor manufacturing in the country by offering 50% fiscal support to companies in the semiconductor sector to establish semiconductor fabrication units in India. 

This fiscal support forms a part of the Semicon India programme under which the government provides demand incentives to companies with the outlay of INR 76,000 Cr.

This comes at the heart of the Centre as well as state governments pushing to promote India as a global hub for semiconductor manufacturing by providing incentives to attract manufacturers. Moreover, several projects and proposals have been approved by the governments lately. 

Just last week, Maharashtra’s cabinet approved Adani Group’s proposal to set up an INR 83,947 Cr ($10 Bn) semiconductor manufacturing plant with Israel’s Tower Semiconductor in the state. 

In the same week, the union cabinet approved the proposal of Kaynes Semicon to set up a semiconductor unit in Gujarat with an investment of INR 3,300 Cr.

It is pertinent to note that Micron is setting up a $2.75 Bn plant in Gujarat and the Tata Group is setting up two new plants in Gujarat and Assam worth INR 91,000 Cr and INR 27,000 Cr, respectively. 

CG Power and Japan’s Renesas are also setting up a semiconductor plant in Gujarat’s Sanand at an estimated cost of INR 7,600 Cr.

The Centre was also said to be mulling to build a dedicated research and development unit under the proposed India Semiconductor Research Centre (ISRC). 

Last year, the government set aside INR 1K Cr to fund semiconductor design startups, along with a $10 Bn allocation for semiconductor manufacturing research and design.

The government’s focus has also resulted in the emergence of a number of semiconductor startups in the country. 

As per an Inc42 report, India’s semiconductor market will reach $150 Bn by 2030, up from $33 Bn in 2023, clocking an impressive CAGR of 24%.

The post Semicon India 2024: India Eyeing 3-4 Major Semiconductor Design Products In Next Few Years, Says Ashwini Vaishnaw appeared first on Inc42 Media.

Chennai-based fintech startup, Paysharp has received final authorisation from the Reserve Bank of India (RBI) to operate as an online payment aggregator (PA).

The company said in a statement that it has secured this final approval last month, after being granted in-principle licence in December 2022.

With the RBI’s final authorization, Paysharp can now onboard merchants and process payments as part of India’s official payment system. 

Paysharp, founded in 2019, caters to various sectors, including government, B2B, NBFC and SMBs and is now expanding into the ecommerce segment. 

The company focuses on non-card-based payments, including UPI and virtual account-based solutions for NEFT, IMPS, and RTGS collections. Its product portfolio includes Link Payment and Payment Pages powered by UPI.

Krishna Kumar Mani, founder and CEO of Paysharp, said, “It is great pride to be a part of India’s Payment system. We understand the value and responsibility of the authorization, we will continue to provide simple and safe payments to businesses at a flat price alternative to percentage based pricing.”

The RBI has been approving PA licence applications rapidly since December 2023. 

In June, Aurionpro and Hitachi Payment Services received nods to operate as PAs. Hitachi Payment claims to process over 2.5 Bn digital transactions annually for leading banks and fintechs. Other recent recipients include Groww, Amazon Pay, JusPay, Stripe, Tata Payments, and Mswipe. 

The GST Council may consider imposing 18% GST on PAs for transactions up to INR 2,000 made via debit and credit cards. This move could affect multiple fintech startups with PA licenses, potentially increasing their operational costs. The Indian payment gateway market is projected to reach $2.66 Bn by 2029.

The post Paysharp Gets Payment Aggregator Nod From RBI appeared first on Inc42 Media.

Following in the footsteps of Zomato, IPO-bound Swiggy is piloting a large order fleet in Delhi NCR region. The Bengaluru-based startup began the pilot recently, sources told Inc42.

The Invesco-backed startup has tied up with a three-wheeler electric vehicle (EV) manufacturer for the large order fleet, the sources added. 

Besides food delivery, the large order fleet can also be used for Instamart deliveries. However, Inc42 couldn’t ascertain if Swiggy is using the fleet only for food deliveries, like Zomato, or also for quick commerce deliveries.

A mail sent to Swiggy seeking details about the large order fleet didn’t elicit any response till the time of publishing this story. 

The development comes almost four months after Swiggy’s listed rival Zomato launched a large order fleet to handle food orders for large groups or events. 

Prior to this, Swiggy had launched UPI services almost a year after Zomato launched similar services. Earlier today, Swiggy launched incognito mode on its app which won’t record order history. This came almost a month after Zomato offered an option to delete orders from the app’s history. 

Swiggy has also launched a number of other features this year, such as Eatlists, Explore Mode, Reordering, and Similar Carts.

The developments come ahead of the startup’s much-anticipated IPO. Swiggy filed its draft IPO papers via the confidential route with the Securities and Exchange Board of India (SEBI) earlier this year.

The startup is reportedly eyeing a valuation of $15 Bn for its $1 Bn to $1.2 Bn IPO, up from its last valuation of $10.7 Bn in 2022. The IPO will include a fresh issue of shares worth INR 3,750.1 Cr and an offer for sale component of up to INR 6,664 Cr.

Swiggy’s revenue grew 36% year-on-year (YoY) to INR 11,247 Cr in FY24, while net loss narrowed 44% to INR 2,350 Cr.

The post Exclusive: Following Zomato’s Footsteps, IPO-Bound Swiggy Pilots Large Order Fleet appeared first on Inc42 Media.

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

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

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

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

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

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

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

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

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

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

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

Video Commerce Gaining Traction?

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

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

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

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

[Edited By Nikhil Subramanian]

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

Amid the IPO spring on the Indian bourses, Bengaluru-based IndiQube is the latest startup looking to go public. The coworking space provider is in advanced discussions to finalise the merchant bankers and is aiming to file its draft red herring prospectus (DRHP) within the next three months, sources told Inc42.

The startup is looking to raise INR 1,000 Cr – INR 1,500 Cr (about $120-$180 Mn) from its IPO. Its public issue will largely comprise a fresh issuance of shares. Offer for sale (OFS), if present at all, would be quite small as promoters and existing investors are not looking at any major dilutions, one of the sources said.

A mail sent to IndiQube seeking information about its IPO plans didn’t elicit any response till the time of publishing this story. 

Founded in 2015 by serial entrepreneurs Rishi Das and Meghna Agarwal, IndiQube is a managed office space provider that claims to offer ‘office in a box’ experience to clients, encompassing workspace design, interior build out and plethora of B2B & B2C services leveraging technology.

It counts WestBridge Capital, Helion Ventures’ Ashish Gupta, and Aravali Investment Holdings among its backers.

While IndiQube is yet to file its financial statements for FY24 with the Ministry of Corporate Affairs, the sources said that the startup posted a profit of about INR 60 Cr on an operating revenue of around INR 850 Cr during the year.

It must be noted that the coworking space provider turned profitable in FY23. It posted a net profit of INR 20.63 Cr during the year as against a loss of INR 18.82 Cr in FY22. Revenue rose 69% to INR 592.41 Cr in FY23 from INR 351.43 Cr in the previous fiscal year. 

The startup is eyeing a net profit of INR 100 Cr in the ongoing financial year (FY25).

IndiQube, which has raised a funding of around $45 Mn till date, has a presence in 12 cities, including Bengaluru, Mumbai, Delhi NCR and Hyderabad, among others. It counts the likes of Standard Chartered, redBus, Syncron, Walmart, Philips, and Hitachi among its clients. 

It competes with Awfis, Smartworks, 91Springboard, among others. The public listing plans come months after Awfis got listed on the bourses. Shares of Awfis listed at INR 432.25 on the BSE in May this year, a premium of 12.8% to the issue price. The stock has surged over 80% from its listing price and closed Wednesday’s (September 4) trading session at INR 782.50.

Meanwhile, another competitor Smartworks also filed its DRHP in August. Its IPO comprises a fresh issue of equity shares worth INR 550 Cr and an OFS component of 67.49 Lakh shares. 

The post Exclusive: Coworking Space Provider IndiQube In Talks With Bankers For INR 1,500 Cr IPO appeared first on Inc42 Media.

Conducting its third restructuring exercise in about 16 months, virtual event startup Airmeet laid off around 80% of its tech team last month, sources told Inc42.

The Prosus-backed startup also fired some employees from its product and design teams as part of the restructuring exercise. Overall, around 30 employees, or 20% of Airmeet’s workforce, were laid off, the sources added.

The layoffs were a part of a cost-cutting exercise as the startup has continued to struggle to increase its revenue in the post-pandemic world, one of the sources said, adding that the number of employees impacted by the latest restructuring could be higher.

Airmeet cofounder and CTO Vinay Kumar Jasti held one-on-one conversations with the impacted employees to inform them about the layoffs. 

The impacted employees will receive a severance package based on their notice periods.

Confirming the layoffs, Airmeet cofounder and CEO Lalit Mangal told Inc42, “We have right sized the team to focus on investing in better and more AI-powered features.” 

Airmeet’s Post-Pandemic Struggles

Founded in 2019 by ​​Mangal, Jasti, and Manoj Kumar Singh, Airmeet is an online meeting and event hosting platform. It also allows participants to connect with other attendees for one-to-one and one-to-many online interactions. 

The startup saw a surge in demand during the Covid-19 pandemic amid the stay-at-home mandates. This also resulted in a lot of investor interest in the startup. However, as the world opened up after the pandemic and virtual events started seeing a sharp decline, Airmeet struggled to increase its revenue. 

Now, the startup seems to have decided to focus on new products. “We are already working on our second product which will be launched soon. Our outlook is to build an R&D function which is largely in-person, based in Bengaluru and wired with the latest AI-powered tools,” Mangal said.

While he didn’t give details about the new product, the CEO said that it will not be focussed on the events space.

This is in line with what the aforementioned sources told Inc42. They said that the startup has decided not to upgrade the existing event management product, which led to the decision to let the entire engineering team go. 

The fresh round of layoffs came almost five months after Inc42 reported that the startup laid off around 20% of its workforce to cut costs.

Prior to that, the startup fired around 30% of its 250-300 people workforce, or at least 75 employees, in May 2023.

Overall, Airmeet has sacked over 100 employees in the last 16 months. 

Airmeet has raised a total funding of about $50 Mn till date and counts the likes of Accel, Peak XV Partners, Sistema Asia Fund, DG Daiwa Ventures, and Nexxus Global among its backers.

On its website, the startup claims to have worked with over 4,000 organisations, including Ford, Unilever, PwC, Capgemini, among others.

The post Exclusive: Prosus-Backed Airmeet Undertakes Another Restructuring Exercise, Fires 80% Tech Team appeared first on Inc42 Media.

Healthtech startup Dozee laid off around 40-50 employees in a restructuring exercise last month in a bid to cut its losses, sources told Inc42.

The exercise impacted employees from on-field and customer success teams, sales team, and marketing team, the sources added.

The startup’s total employee count stood at about 250-270 before the layoff exercise, multiple sources said. 

“We were told that the layoffs had nothing to do with our performance. The restructuring was being done to cut losses,” one of the sources said. 

The impacted employees will receive severance packages based on their respective notice periods.

Responding to Inc42’s queries on the development, a Dozee spokesperson said there was no reduction in its manpower. However, the startup said that there was a reallocation of resources which affected a “very miniscule number” of its headcount.

“The figures you’ve referenced are entirely unfounded. As part of our growth strategy, we are reallocating resources with a greater focus on HealthAI, clinical research, and international business development. Reallocation of resources with evolving business needs is a natural part of the life cycle in the growth journey of any organisation. This has affected a very minuscule number of our total headcount,” the spokesperson said in a statement. 

A follow-up questionnaire seeking information about the exact number of affected employees didn’t elicit any response till the time of publishing this story.

Founded in 2015 by Mudit Dandwate and Gaurav Parchani, Dozee’s contactless patient monitoring system enables healthcare workers to remotely monitor the vital parameters of patients such as heart rate, respiration rate, blood pressure, and temperature. It also offers an early warning system that alerts doctors about clinical deterioration of a patient’s health.

The sources cited above attributed the layoffs to the startup’s failure to scale its revenue. “Despite having a presence across the country, the revenue growth is tepid and the loss has grown multifold,” said one of the sources.

This is also reflected in Dozee’s financial statements. While the startup is yet to file its statements for FY24, it reported a 33% decline in revenue to INR 2.1 Cr in FY23 from INR 3.1 Cr in FY22. Its loss zoomed 175% to INR 84.4 Cr from INR 30.6 Cr in FY22 due to growing employee expenditure and advertising expenses. 

While Dozee’s employee costs increased 5X to INR 54 Cr in FY23 from INR 17 Cr in the previous fiscal year, marketing expenditure doubled to INR 4 Cr from INR 1.8 Cr in FY22. Overall, total expenditure rose 160% to INR 87.8 Cr in FY23 from INR 33.8 Cr in FY22.

This means that the startup spent INR 41.1 to earn every INR 1 in operating revenue.

As Dozee has struggled to grow its business in India, the startup is now eyeing the US market, the sources said. 

“… We have also expanded our footprints in the USA, UAE and Africa. With our path-breaking innovation in AI-powered ballistocardiography, we are well on our way to become a global leader in HealthAI,” the Dozee spokesperson added in the statement sent to Inc42. 

Dozee last raised $6 Mn funding in Series A2 round from 3one4 Capital, Prime Venture Partners, YourNest VC, State Bank of India, among others, in April last year. 

The startup has raised close to $12 Mn in funding across multiple rounds till date. 

The post Exclusive: Prime Venture Partners Backed Dozee Lays Off Around 40 Employees appeared first on Inc42 Media.

The Unified Payments Interface (UPI) transactions rose 3.6% month-on-month to 14.96 Bn in August from 14.44 Bn in the previous month.

On a year-to-year basis, the transaction count surged 41%.

As per data released by the National Payments Corporation of India (NPCI), the total UPI transactions processed by UPI in August amounted to INR 20.61 Lakh Cr as against INR 20.64 Cr in July, a 0.14% drop.

However, on a year-to-year basis, UPI transactions volume jumped 31%.

This comes just days after Prime Minister Narendra Modi said that UPI is a “great example of India’s fintech success”, with the country accounting for more than half of global digital transactions.

It is pertinent to note that the total transactions processed by UPI surpassed 100 Bn last year.

Meanwhile, fintech giants PhonePe and Google Pay continue to dominate the UPI ecosystem with a 48.3% and 37% market share, respectively, as of July.

Amid growing adoption of UPI, fintech companies have rolled out a slew of new initiatives to lure customers. For instance, PhonePe recently launched a credit line on UPI while Google Pay has rolled out UPI Circle, which allows users’ trusted contacts to make online transactions without having to link their bank accounts.

The developments come at a time when the NPCI and the government have been pitching the UPI to countries globally. Last month, PM Modi said that India plans to integrate UPI with Malaysia’s national payments network PayNet. 

Recently, India and Maldives inked a deal to roll out UPI in the Indian Ocean archipelago during external affairs minister S Jaishankar’s visit to the country. In July, NPCI rolled out ‘UPI One World’ wallet for all foreign tourists in partnership with IDFC First Bank and Transcorp International Limited.

Last year, IT minister Ashwini Vaishnaw said that India signed memoranda of understanding (MoUs) with some 30 countries to expand UPI globally.

Countries such as Sri Lanka, Mauritius, Bhutan, Nepal, the UAE and Canada have already adopted India’s UPI payment model to some extent.

Further, NPCI’s international arm, NPCI International Payments Limited (NIPL), also signed an agreement with the Bank of Namibia to develop a UPI-like digital payments system for the African nation.

Additionally, the NPCI has also launched several new features to fuel adoption of digital payments such as UPI Lite, which supports low-value transactions; UPI Lite X, which supports offline transactions; and Hello! UPI, which lets users make payments with their voice.

The post UPI Transactions Jump 3.6% MoM In August appeared first on Inc42 Media.

D2C men’s lifestyle brand Metaman has raised additional funding from cricketer and existing investor KL Rahul for the launch of its perfume range.

Besides the investment, Rahul will also become the brand ambassador of the startup, its cofounder and CEO Harsh Maskara told Inc42. However, he declined to disclose the funding amount.

Maskara said that Metaman will use the capital for the launch and marketing of the fragrance range, which is set to be launched on August 30. The startup will also use a part of the funds to enter new lifestyle products segments, expand its apparel offerings, and open more retail stores. 

Founded in 2022 by Maskara and Anil Shetty, Metaman began operations as a D2C jewellery brand for males. In 2023, it acquired millennial-focussed luxury jewellery brand Drip Project for $1 Mn.

Metaman currently sells chains, bracelets, pendants, and apparel for men via Drip Project’s website. It also has an offline store in Mumbai. The startup is backed by the likes of actor Suniel Shetty, Zerodha cofounder Nikhil Kamath, BookMyShow founder Ashish Hemrajani, Razorpay cofounder Shashank Kumar, among others.

Maskara said that Metaman aims to become a comprehensive men’s lifestyle brand, following the model of global brands like Zara.

“Having KL Rahul reinvest and join as brand ambassador is a significant milestone for us… We’re reimagining Drip Project’s premium perfumes under the Metaman banner, and Rahul’s involvement will help us connect with our target audience more effectively,” he added. 

Commenting on the investment, Rahul said, “I’m excited to continue my journey with Metaman. Their commitment to quality and innovation in the men’s lifestyle space aligns with my personal values. This fragrance line is something I believe young Indians will truly appreciate.”

The development comes at a time when a number of D2C startups have emerged in the country over the last few years on the back of rising internet connectivity and improving access to smartphones. As a result, investors and celebrities are lining up to invest in D2C brands. 

Just last month, Olympian PV Sindhu invested in D2C wellness brand Hoop. Earlier this year, actor Ranveer Singh invested in products and smartwatch maker boAt, while he is also the co-owner of D2C brand Bold Care. 

Meanwhile, Rahul is an active investor in the Indian startup ecosystem and counts D2C fitness brand Boldfit in his portfolio. He has also invested in vehicle financing startup OTO and men’s apparel brand XYXX.

The post Exclusive: D2C Brand Metaman Bags Funding From KL Rahul To Launch Perfume Range appeared first on Inc42 Media.

Delhi-NCR based logistics tech unicorn Shiprocket is piloting a D2C marketplace Zop, Inc42 has learnt. The pilot started a few weeks ago and hosts around 200-300 brands across eight categories including fashion, beauty, electronics, among others. 

Saahil Goel, cofounder, managing director and CEO of Shiprocket, claimed Zop will generate more demand for these D2C brands and help them with discovery. “D2C brands which are having trouble in generating demand or are unable to get much online exposure on their own should try Zop,” Goel told Inc42. 

At the moment, Zop is charging a sales commission from brands for listing their products.

Shiprocket’s Zop Vs Other Marketplaces

Without revealing any details, Goel said that Shiprocket and Zop will be running several experiments in terms of generating demand for D2C brands. Zop is currently targeting smaller brands that are struggling with advertising costs and are at the mercy of Meta’s advertising cost per mille (CPM) or cost per thousand impressions.

“Zop will help brands with discovery, advertisement and also will help them generate traffic outside the purview of Meta and Google,” he added.

With the launch of Zop, Shiprocket would be competing against the likes of Meesho, Amazon, Flipkart, JioMart and others in the marketplace segment. 

The CEO said it is too early to comment on the topline that Zop can generate, but said it would have a distinctive edge over Flipkart and Amazon since Zop is completely focused on helping Indian homegrown D2C brands get discovered. 

Founded in 2017 by Goel, Vishesh Khurana, Akshay Gulati and Gautam Kapoor, Shiprocket is an aggregator of third-party logistics companies and offers several ecommerce services, including digital marketing, analytics and WhatsApp commerce. 

While 80% of the startup revenue still comes from shipping, in the past 18-24 months it has added services such as payments, marketing, exports and more.

In the last two years, Shiprocket acquired five companies Glaucus Supply Chain Solutions, Wigzo, Pickrr, Omuni, and Rocketbox and is likely to acquire more in the coming months, Goel said.  

“We started our journey with shipping, and did that for five years. Now in the past two years we have been working on products related to payments, conversion, checkout, lending, and exporting,” he said, adding that one of the last areas that the company wanted to focus on was generating demand.

Will Zop Join Quick Commerce Bandwagon?

Quick commerce has become the biggest disruption to marketplaces such as Amazon and Flipkart. The likes of Blinkit, Zepto, and Swiggy Instamart have made inroads into what used to be marketplace territory with their dark store models. It remains to be seen how Zop will compete in this evolving market. 

The situation is such that in 2024, several D2C brands are moving to quick commerce-first strategy and shrinking their focus from marketplaces, as we wrote in our coverage on Flipkart Minutes. 

While Zop is in a pilot stage, the launch time is peculiar. Shiprocket rolled out a WhatsApp storefront bot and is also launching a quick shipping service for small businesses and direct sellers. These indicate that Shiprocket wants to also build ecommerce SaaS for smaller businesses, so the addition of the marketplace is definitely a more capital-intensive play. 

Besides this, the company recently launched Shiprocket Quick across Delhi-NCR, Bengaluru, Hyderabad and Pune for same-day deliveries. 

Shiprocket, which is eyeing a public offering next year, is in the midst of raising around $120 Mn, as per reports. 

Tribe Capital, along with other investors, is in talks to invest more in the company at a valuation of $1 Bn – $1.1 Bn, which would be a flat round. To date the startup has raised over $350 Mn in funding and counts investors such as Moore Strategic Partners, Zomato, PayPal, McKinsey, among others. 

The post Exclusive: Logistics Unicorn Shiprocket Pilots D2C Marketplace Zop appeared first on Inc42 Media.

Coupons and cashback platform CashKaro’s operating revenue jumped over 20% to cross the INR 300 Cr mark in the financial year 2023-24, its cofounder Swati Bhargava said.

The Ratan Tata-backed startup is yet to file its financial statements for FY24 with the Ministry of Corporate Affairs. However, as per its unaudited statements, it clocked an operating revenue of INR 302 Cr in the year ended March 31, 2024, Bhargava told Inc42.

This would translate to an increase of about 21.5% compared to its operating revenue of INR 248 Cr in FY23. 

Founded by Swati Bhargava and Rohan Bhargava in 2013, CashKaro offers coupons, price comparisons, and discounts and allows users to earn cashbacks and rewards for shopping online across over 1,500 ecommerce platforms, including Nykaa, Amazon, Flipkart, Tata 1mg and Myntra.

The startup primarily earns revenue from the commission that it receives from its brand partners for displaying their products or services on the site.

However, Swati Bhargava said that the finance vertical now accounts for about 20% of CashKaro’s revenue. Under this vertical, the startup provides users suggestions about credit cards based on their shopping behaviour. Users can reach a bank’s website directly from CashKaro platform to apply for the cards, and earn extra cashback when they get the cards. 

The cofounder said that CashKaro is now looking to double down on its financial offerings and also plans to add products like insurance, loans and mutual funds, among others. Last year, the startup launched a dedicated platform, BankKaro, for financial offerings to facilitate its expansion plans.

CashKaro also operates an affiliate marketing arm EarnKaro, which was launched in 2018. It also launched online D2C marketplace BuyKaro towards the end of 2023. 

CashKaro’s user base stands at around 25 Mn currently. The startup aims to add another 3-4 Mn users in FY25, while increasing its revenue beyond INR 400 Cr, the cofounder said.

Meanwhile, CashKaro’s net loss is expected to be under INR 20 Cr in FY24. In FY23, its net loss narrowed 25% to INR 11.1 Cr from INR 14.8 Cr in FY22. 

CashKaro last raised INR 130 Cr (about $16 Mn) in November 2022 in its Series C round, led by Affle Global. It also counts Kalaari Capital and Korean Investment Partners among its backers.

The post Exclusive: Ratan Tata-Backed CashKaro’s Revenue Crosses INR 300 Cr Mark In FY24 appeared first on Inc42 Media.

In yet another cost-cutting exercise, beleaguered edtech giant BYJU’S is likely to shut nearly half of its 250 BYJU’S Tuition Centre (BJC).

In a bid to control its expenses amid the ongoing cash crunch and legal troubles, the company has started sending notices to the head of its tuition centres for terminating lease contracts of the centres. The move is likely to result in it shutting 120 offline centres, sources told Inc42.

BYJU’S parent, Think & Learn Pvt Ltd, has sent termination notices for tuition centres in Mohali, Lucknow, Meerut, Ghaziabad, Indore, Ranchi, among others, over the last few days, the sources said.

The edtech startup started sending the notices from July 31 and a majority of these tuition centres will be shut by August 31, they added.

“Everyday two to three centres are being shut by BYJU’S now and this is going to impact more than half of the operational tuition centres,” one of the sources said.

Inc42 also accessed some of the notices sent for the termination of lease contracts. In the notices, Think & Learn attributed the move to changing business priorities.

Queries sent to BYJU’S on the above developments didn’t elicit any response till the time of publishing this story.

The latest development comes nearly a month after Inc42 exclusively reported that BYJU’S was locked out of over 100 tuition centres across the country over non-payment of rent, electricity dues, water bills, among others.

Why Tuition Centres Failed To Live Up To The Hype?

The edtech firm launched BYJU’S Tuition Centre business with much bullishness in February 2022. At that time, the company claimed it would invest $200 Mn to expand this vertical.

Amid the slowdown in the edtech business post the Covid-19 pandemic, offline centres were expected to bring in additional revenue for edtech startups. Over the last couple of years, offline or hybrid learning became the lifeline for edtech startups, including Unacademy, Vedantu and PhysicsWallah. All of these companies opened offline centres for test prep and K-12 learning with much fanfare during this period.

However, for BYJU’S, the offline bet seems to have failed to bring in the expected results. Despite the company slashing the tuition fees for the tuition centres, rising costs and high teacher-student attrition seems to have made the business unviable.

The BYJU’S of a few years ago would likely have been able to tide over this situation by pumping in more cash. However, the firm is currently a pale shadow of itself. A severe cash crunch, layoffs, multiple insolvency pleas, and other legal cases have left the company in a bad state.

Despite settlement of dues of a few operational creditors and the Board of Control for Cricket in India (BCCI), BYJU’S is involved in a legal battle with its US-based lenders over the payment of a $1.2 Bn Term B loan.

While the National Company Law Appellate Tribunal (NCLAT) set aside the insolvency proceedings against BYJU’S after it reached an agreement with the BCCI, the Supreme Court on Wednesday (August 14) quashed the Appellate Tribunal’s order and revived bankruptcy proceedings.

Employees Paying The Price

BYJU’S has cut its workforce by about 90% over the last two years. However, the edtech firm has still not cleared the pending salaries and other dues of many of its former employees. Besides, the employees currently working with the startup have also not been paid their salaries for the last few months.

Nearly a dozen current and former BYJU’S employees Inc42 spoke to said that the company’s human resource (HR) department is expressing its inability to clear the dues amid mounting debt.

The company’s revenue collections on sale of tablets, online tutoring and offline business is falling.

“Many employees who have been keeping the operations alive, including those at the senior positions, have been paid only half of their salaries since February this year. That too was stopped from May onwards and the management kept communicating that as soon as they will have access to the funds via the rights issue, the dues will be paid. However the management is incommunicado now and people are leaving the organisation,” one of the sources told Inc42.

The employees have also not received their Form 16 for this year. Employees believe that BYJU’S not making TDS payments is the reason for this.

It is pertinent to note that while BYJU’S has been in the news for all the wrong reasons in the recent past, the entire edtech space in the country is under tremendous stress currently. Amid these, legacy educational companies are eyeing acquiring small edtech firms at cheap valuations to strengthen their respective portfolios. Earlier this year, Inc42 reported that Unacademy held initial discussions with K-12 Techno Services for an acquisition.

The post Exclusive: BYJU’S To Shut Nearly 120 Tuition Centres appeared first on Inc42 Media.

Dunzo is still stuck in a limbo.

After more than a year of negotiations and speculation, the startup’s current cash crunch is likely to be solved by its largest shareholder Reliance Retail. But this does not mean that Dunzo is completely out of the water yet.

Sources privy to the development told Inc42 that Reliance Retail may also end up acquiring the troubled firm at a throwaway valuation. The conglomerate currently holds more than 25% stake in Dunzo after it invested $200 Mn in January 2022.

Interestingly, Reliance has been in talks with the company for more than a year, as reports emerged in July last year about a potential lifeline for Dunzo, which has been mired in a severe cash crunch since early 2023.

At the time of its last funding round, Dunzo was valued at $770 Mn, but the Kabeer Biswas-led startup has fallen from grace since then.

Unable to hit the brakes on its marketing spending, employee costs and operational expenses and forced to sit out of the quick commerce boom, Dunzo turned to B2B deliveries as we reported earlier.

But now, the company is moving back to its older model — deliveries from retail stores to consumers — in a shift that’s clearly meant to protect the brand value inherent in Dunzo’s name.

Over the past year, Dunzo has seen the exit of two cofounders — Mukund Jha and Dalvir Suri — while CEO Biswas and the other cofounder Ankur Agarwal desperately try to bring in more funds to keep operations going.

Will Reliance Deal Go Through?

Biswas told employees on July 20 that key investors including Reliance Retail have agreed to infuse funds into the company, according to sources. He also claimed that the fresh capital will be deployed to clear the pending salaries and other dues owed to former and current employees as well as vendors.

In an email dated May 19, 2024, seen by Inc42, Biswas claimed that the company has closed 75% of the round, but there is no clarity on the final timeline for clearing employee dues as the company cannot yet access the funds.

In another email dated August 12, 2024, Biswas told employees that the ongoing fundraising process had hit a roadblock, with the management unable to close the transaction. If Dunzo is unable to close this deal, the company would most likely be further dragged into ongoing insolvency cases.

“Kabeer claimed the management is trying to get the signatures of all the investors to close the transaction as soon as possible and that Reliance has finally agreed to be a part of the funding. However the management did not mention whether the nature of the transaction will be a rights issue or an acquisition,” according to one of the employees who was a part of Biswas’ address.

Incidentally, having experimented with quick commerce through Dunzo Daily, the company had completely pulled out of the segment. Its B2C operations instead focussed on the original Dunzo proposition — hyperlocal deliveries for nearby grocery stores and those on the ONDC network.

Besides this, the company had also looked to become a delivery partner for retailers and merchants who had their own online stores. Inc42 has also reviewed communications between the management and employees which indicates that Reliance is likely to infuse funds to support the operational spending as well.

According to sources, Biswas claimed that the intention is to deploy a small portion of the proposed funds infusion into B2C operations, after the startup clears its existing dues.

Meanwhile, queries sent to the Dunzo CEO and Reliance Retail  did not elicit any response.

Dunzo Goes Back To B2C

Interestingly, Dunzo is back to B2C mode, and is looking to scale down its B2B vertical aka Dunzo For Business. The B2B vertical was largely catering to Reliance’s ecommerce platform JioMart and Dunzo was banking on partnerships with ONDC sellers as a logistics, fulfilment service provider for the open network.

However, Dunzo did not have the nationwide network that is critical to scale up the B2B logistics business. For instance, the likes of Shiprocket, Delhivery, Shadowfax, Ecom Express have operations that cater to hyperlocal deliveries as well as intercity movement from marketplaces, D2C brands.

“Dunzo as such has not been able to expand its clients base when the industry saw exponential growth on the back of rise in quick commerce players and D2C ecosystem. Its multiple attempts to raise funding since last year have been blocked by several shareholders that acted as a roadblock. Besides, dependence on a few business clients for B2B has also not served it well,” according to a partner at a fund that has invested in Dunzo.

As its quick commerce bid failed, Dunzo’s losses surged to INR 1,801 Cr in FY23, up from INR 464 Cr in FY22. As we reported last December, cumulative losses have grown to over $150 Mn (INR 2,000 Cr+) vs revenue of just around $12 Mn (INR 100 Cr+) from 2018 to 2022

This wide disparity is not likely to have been solved in FY24. While the losses for FY24 are likely to be much lower as Dunzo cut costs, the startup would have also seen a dip in revenue as per most sources in the industry. This is also indicated by the fact that the company had severe cash flow issues all through FY24.

In addition, Dunzo defaulted on payments to two key vendors who have taken the ecommerce company to NCLT for recovery of the dues. Betterplace Safety Solutions moved the NCLT in Bengaluru against Dunzo for unresolved payments to the tune of INR 4 Cr. Both companies are currently in talks for a settlement.

Further, a group of creditors — Invoice Discounters of Dunzo Digital — filed an application under section 7 of Insolvency and Bankruptcy Code, 2016, alleging that the Reliance Retail-backed startup has cleared only 50% of its dues to such creditors.

The NCLT also admitted Velvin Packaging Solutions Private Limited’s insolvency plea against the quick commerce startup. In addition, Dunzo’s advertising partners and vendors including Google India, Facebook India, Glance among others are collectively owed approximately INR 11.4 Cr, as per earlier reports.

Is Quick Commerce On The Cards Again?

Even as Dunzo was one of the few early movers in quick commerce in 2021, its inability to scale operations beyond Bengaluru and shore up volumes in several key markets have led to its downfall. Despite having Reliance Retail’s backing, Dunzo missed out where Blinkit, Swiggy Instamart and Zepto cashed in.

While all talk is about Blinkit turning profitable, Zepto raising nearly a billion dollars and Instamart becoming the lynchpin for Swiggy’s IPO push, no one is looking at Dunzo. Instead, the focus is on Flipkart, BigBasket and JioMart on the quick commerce front.

Incidentally, Flipkart, which launched Flipkart Minutes last week as a pilot in Bengaluru, was reportedly in talks with Dunzo for an acquisition.

Surprisingly, Reliance shut down its 90-minute delivery services through Jio Mart last year, and is now reportedly planning to enter this space as the demand for instant deliveries across metros, Tier 1 India surges.

Will Dunzo become a part of JioMart’s push and finally see a piece of the elusive quick commerce boom? But for now, Dunzo, despite raising nearly $500 Mn in its lifetime, needs to rely on Reliance for something a lot more basic — funding to live another day.

The post Can Reliance Retail Save Dunzo? appeared first on Inc42 Media.

Update | Aug 13, 11:35 PM

Almost a couple of weeks after Inc42 exclusively reported about Vayana’s funding, the startup today (August 13) officially announced raising of $20.5 Mn as a part of its Series D funding round led by SMBC Asia Rising Fund. Vayana aims to use this funding to provide affordable financing throughout the supply chain, with the introduction of new products aimed at enhancing its suite of trade credit, compliance and risk management platforms.

Original Story | Jul 30, 4:48 PM

Mumbai-based trade financing startup Vayana Network is raising $20 Mn (INR 170.8 Cr) in its Series D funding round. 

As per the startup’s filing with the Ministry of Corporate Affairs (MCA), the round is being led by new investor SMBC Asia Rising Fund, which is infusing around INR 62.6 Cr.

The round will also see participation from Jungle Ventures, Chiratae Ventures, International Finance Corporation (IFC), Deep Financial, among others. 

Inc42 has learnt from sources that this is a tranche of the startup’s ongoing Series D funding round. 

Post the allotment, SMBC Asia Rising Fund will hold a 3.25% stake in the startup, while IFC will own 5.66%. 

As per Inc42’s calculations, the startup will be valued at around $240 Mn in this funding round. 

A query mail sent to Vayana Network didn’t elicit any response till the time of publishing this story. The article will be updated on receiving a response.

The latest development comes almost two years after Vayana Network raised INR 140 Cr ($15 Mn) in its Series C funding round. This investment came almost on the heels of the startup raising $38 Mn funding from Chiratae Ventures, CDC Group, and Jungle Ventures.

Founded in 2009 by Ramaswami Iyer, Vayana Network is a B2B trade financial intermediary which connects SMEs and corporates with financial institutions for low-cost access to trade loans.

Vayana Network claims to have enabled finance of over $10 Bn, including over a billion dollar of finance through B2B card flows to over 1.5 lakh MSMEs for over 1,000 supply chains in 25 different sectors. The startup connects over 1,000 corporates and their trade ecosystems to provide digital, convenient, and affordable access to credit for their payables and receivables. 

The startup has a presence across 600 cities and 1,400+ pin codes in India and 20 countries across the globe. It is also a GSP (GST Suvidha Provider) and provides its services to numerous corporates and lakhs of SMEs.  

Overall, it has raised around $57 Mn till date and counts CDC Group, IFC, Jungle Ventures, and PayU among its backers. 

In 2021, Vayana Network received an in-principle approval to set up ITFS (International Trade Finance Services) platform at GIFT City (Gujarat) under the aegis of the International Financial Services Centres Authority (IFSCA).

Vayana Network competes against the likes of Vivriti Capital, Yubi, KreditBee, and FinAGG.

The post [Update] Exclusive: Vayana Network Raises $20.5 Mn From SMBC Asia Rising Fund, Others appeared first on Inc42 Media.

Update | Aug 12, 3:10 PM
Almost two weeks after Inc42 reported about Kazam raising funding from Vertex Ventures, the startup today announced that it has raised $8 Mn in its Series A3 funding round led by Vertex Ventures Southeast Asia and India. Avaana Capital, Alteria Capital and others participated in this round. With the fresh capital infusion, Kazam plans to strengthen its technology and product teams, enhance its platform offerings, and expand its market presence.

Original Story | July 25, 7:38 PM

Electric mobility startup Kazam is raising $5 Mn (INR 42.5 Cr) in a funding round led by Licious and Pilgrim-backer Vertex Ventures. The round will also see participation from Avaana Capital and Chakra India Growth Fund, as per its filing with the Ministry of Corporate Affairs (MCA). 

The startup plans to use the capital to fuel its growth and expansion plans. Following the investment, Vertex Ventures will own a 16.45% stake in the startup. Avaana will also see its stake increase to 16.45%, while Chakra India Growth Fund will own 0.63% stake. 

Vertex is infusing the highest amount – INR 30 Cr – in the funding round. 

There’s a possibility that the size of the funding round may increase if more investors join. Queries sent to Kazam about the funding round didn’t elicit any response till the time of publishing this story. 

Besides funding, the startup’s shareholders also approved a proposal to set up Management Stock Option 2024 (MSOS 2024).

Kazam last raised $3.6 Mn in a funding round led by Avaana Climate Fund in May last year. It also saw participation from Third Derivative and existing investors Inflection Point Ventures and We Founder Circle.

Founded in 2020 by Akshay Shekhar and Vaibhav Tyagi, the Bengaluru-based startup claims to manage 150,000 kWh of electricity in the US, Europe and Asia-Pacific. 

Its offerings include hardware as well as software. In terms of hardware, it primarily offers EV charging. On the software side, it offers fleet management software, charging management solutions, battery swapping management, among others. 

The startup claims to have 15,000 chargers on its platform and onboarded 65,000 users. 

Kazam competes against the likes of Bolt.Earth and Battery Smart. It counts the likes of Flipkart, Mahindra Logistics, BigBasket, and LetsTransport among its clients. 

The post [Update] Exclusive: Cleantech Startup Kazam Bags $8 Mn From Vertex Ventures, Others appeared first on Inc42 Media.

Fashion Entrepreneur Fund, a platform which offers early stage investments and mentorship to fashion entrepreneurs, has roped in Dalmia Group Holdings’ chairman Gaurav Dalmia as investor and promoter.

Dalmia will help in boosting Fashion Entrepreneur Fund’s mission to nurture and support emerging fashion entrepreneurs, FEF said in a statement.

FEF’s chairman Vagish Pathak and founder Sanjay Nigam said in a joint statement that their mission is to create a vibrant ecosystem where fashion dreams can flourish into successful enterprises.

“Dalmia’s experience and extensive networks will be invaluable in reaching out to fashion brands and entrepreneurs. With his support, we are confident that FEF will become the go-to platform for fashion entrepreneurs in India, providing them with the investment, resources, and mentorship they need to succeed,” they added.

Dalmia said, “Joining FEF aligns with my vision of encouraging innovation and entrepreneurship in India. The Fashion Entrepreneur Fund presents a unique opportunity to nurture and elevate this talent.”

FEF will invest an initial amount of INR 20 Cr to help individuals in the fashion sector.

Last month, the fund reportedly  received investments from RJ Corp’s chairman Ravi Jaipuria and Bollywood actor Akshay Kumar.

In March, FEF reportedly launched an OTT web series for fashion startups, which allows entrepreneurs to pitch ideas and secure funding.

According to an Inc42 report, India’s fashion ecommerce sector is set to grow at a CAGR of 25% to reach a size of $112 Bn by 2030. Within this market, the women’s apparel and accessories segment is expected to lead, capturing a substantial 50% market share by 2030.

The post Fashion Entrepreneur Fund Ropes In Gaurav Dalmia As Investor appeared first on Inc42 Media.