Category: Startup Newsletter

Is India’s 70-Year Struggle Poised to Create a $1 Trillion Manufacturing Hub?

March 17, 2024

India, after 75 years of independence, has surpassed the UK economy to become the world’s fifth-largest economy, with the projections indicating a GDP exceeding $15 trillion by 2047, making it the third-largest globally. Amid a gloomy global outlook, India stands out as a beacon of economic promise, set to become the fastest-growing large economy.

India’s growth trajectory has been distinct, with services experiencing rapid expansion while manufacturing has lagged. In 2017, services contributed 45% to GDP, rising to 55% by 2023, while manufacturing remained stagnant at around 15%, reaching 17.7% by 2023.

To achieve its goal of a $20 trillion economy by 2047, India must focus on boosting manufacturing, aiming for a sector worth $4.5 trillion and elevating its GDP share to 22%. This presents a crucial opportunity for India to shine on the global stage.

India emerged as a potential manufacturing powerhouse from 2022 onwards, leveraging strengths in chemicals, pharmaceuticals, automotive, textiles, and electronics. Major players like Samsung, Wistron, and Foxconn shifted production to India due to strong manufacturing capabilities, R&D infrastructure, and policy support.

By becoming the 3rd largest exporter and 2nd largest manufacturer of mobile devices, India achieved remarkable growth in manufacturing exports. Due to these developments, manufacturing exports have seen tremendous growth of 15% CAGR over 2022 and 2023. They were growing between 5% and 10% during pre-COVID and reached $418Bn in FY22.

New-age sectors such as renewable energy, drone manufacturing, defense, and space technology further fueled growth. Despite significant progress, India faces challenges in achieving optimal scale compared to global giants like China and Taiwan.

To enhance global competitiveness, the government implemented initiatives like Make in India, the Bharatmala Project, Start-up India, Atmanirbhar Bharat, and Free Trade Agreements aimed at attracting investments across various sectors. However, India aims to address these challenges and boost manufacturing capabilities to compete on a global scale.

India aims to boost its manufacturing sector’s GDP share to 25% by 2030 from the current 17.7%. Initiatives like Make in India 2.0 and projects such as Telangana’s Mega Textile Park are fostering manufacturing growth. Public-private partnerships like the Chennai-Singapore Industrial Park and skill development programmes such as the Pradhan Mantri Kaushal Vikas Yojana are enhancing competitiveness. Major investments, like the Rs. 9,000 crore polycarbonate plant in Gujarat and Apple’s increasing iPhone production, are strengthening India’s manufacturing prowess. India is also progressing towards semiconductor self-reliance with its first indigenous fabrication unit. In pursuit of global competitiveness, India is actively pursuing free trade agreements (FTAs) with 16 foreign entities, aiming to become the second most connected trade partner globally.

The government targets India to be a ‘developed country’ by 2047, concurrently becoming the third-largest economy worldwide. Despite historically low manufacturing sector contributions to GDP (around 15–16%), India’s strategic initiatives aim to propel manufacturing as a key driver of economic growth.

The substantial emphasis across various sectors is driving forward the potential for manufacturing in India. With the current value standing at ~$600 billion, even achieving a modest 20% growth by 2030, when India is projected to reach $7 trillion, would result in nearly doubling the figure to $1.2 trillion in the manufacturing sector.

Startup Funding Summary

Perfios, Bengaluru-based fintech company, has raised $80 Mn in Series D1 funding from Teachers’ Venture Growth – Read More

CureSkin, Bengaluru-based health-tech platform, has raised $20 Mn in Series B funding from Healthquad, JSW Ventures, Khosla Ventures and Sharrp Ventures – Read More

Lohum, Delhi-based semiconductor manufacturer, has raised $15 Mn in Series B funding from Singularity Growth, Vyoman India, Baring Private Equity, Mukul Agarwal and Madhuri Madhusudan – Read More

BlackSoil, Mumbai-based fintech firm, has raised $12 Mn in a funding from Allcargo Logistics, Navneet Education, Mahavir Agency and Florintree Advisors – Read More

Freed, Gurugram-based fintech service provider, has raised $8 Mn in a funding from Sorin Investments, Multiply Ventures, Piper Serica Fund and other HNIs – Read More

M&A Snippets

Bengaluru-based metaverse & gaming company OneVerse has acquired Kolkata-based online poker platform Calling Station and Ahmedabad-based online sports platform BatBall11 for undisclosed amount – Read More

From Air Ticketing to IPO: TBO’s Journey in the Global Travel Distribution Sector

March 10, 2024

Founded in 2006 by Ankush Nijhawan and Garav Bhatnagar, TBO (Travel Boutique Online) emerged as a response to the changing demands within the B2B travel distribution sector. Initially focused on air ticketing, TBO has since evolved into a comprehensive global travel distribution platform, catering to both buyers and suppliers alike.

Presently, TBO offers a comprehensive array of products spanning air travel, accommodations, rail services, holiday packages, car rentals, transfers, sightseeing tours, cruises, and cargo handling. In addition to these offerings, their in-house platform utilizes advanced technologies such as data analytics, artificial intelligence, and machine learning to generate search result pages. This enhances the visibility and sales of relevant travel products in alignment with user search criteria.

As travel and tourism bounce back strongly, TBO leads the way in bringing new ideas to a market that is set to reach around $2.6 trillion by 2027.

In FY 22–23, the company had a revenue of ₹1023 crore with a PAT of ₹138 crore. It registered a 4X jump in profits during the same period, and revenue from operations also spiked 2.17X from the previous year.

Slowly and steadily, TBO created a niche for itself in the highly competitive space by focusing on its customers and extending its white-label solutions to travel agents and tour operators. By facilitating air travel, hotel bookings, and tour packages, the platform makes money on commissions for these services.

The commission from hotels and packages formed a significant 67.5% of the operating revenue which surged 2.57X to ₹709 crore during FY23. Commission from air ticketing contributed 30.4% of the total collections which grew 65% to ₹320 crore in FY23. The firm also charged annual maintenance fees from its customers and income from this service increased 57.8% to ₹22 crore in FY23.

A substantial part of the company’s revenue comes from the worldwide tourism sector. Any negative influences affecting global tourism will consequently harm TBO’s overall business, financial standing, and profitability. TBO’s business success relies heavily on its connections with suppliers. Any unfavorable alterations in these connections will adversely affect the company’s overall operations.

During a bullish market, it’s common for entrepreneurs to seize the opportunity by initiating an initial Public Offering (IPO) through an offer-for-sale, aiming to capitalize on their investment.

The company filed its draft red herring prospectus (DRHP) in November, seeking to raise ₹400 crore in fresh capital. TBO connects over 147,000 buyers (travel agencies) and suppliers (hotels, airlines, car rentals, and cruises) in more than 100 countries. With the IPO proceeds, the company plans to invest in developing its platform to acquire new clients, primarily targeting mature markets such as Europe and North America.

Reference: entrackr.com | ajuniorvc.com | business-standard.com

Startup Funding Summary

mPokket, Kolkata-based fintech startup, has raised $60 Mn in a funding from BPEA Credit – Read More

The Ayurveda Experience, Gurgaon-based ayurvedic beauty products startup, has raised $27 Mn in Series C funding from Jungle Ventures, SIDBI Ventures, Anicut Capital and Sharrp Ventures – Read More

IDfy, Mumbai-based fraud detection platform, has raised $27 Mn in Series E funding from Elev8, KB Investment and Tenacity Ventures – Read More

Rozana, Delhi-based rural commerce startup, has raised $23 Mn in a funding from Bertelsmann India Investments, Fireside Ventures and other HNIs – Read More

ZETWERK, Bengaluru-based global manufacturing platform, has raised $20 Mn in Series F funding from Wheelhouse Venture Capital – Read More

M&A Snippets

London-based information technology company HCL Group will acquire Bengaluru-based edtech firm Education Initiatives for $20 Mn – Read More

Mauritius-based HR solutions provider CIEL Group has acquired Mumbai-based AI-powered upskilling startup Courseplay for an $2 Mn – Read More

Hyderabad-based dialysis centre chain NephroPlus has acquired Philippines-based dialysis network Royal Care Dialysis Centers for an undisclosed amount – Read More

Can a new Indian revolution be sparked by the 7,000 crore Country Delight?

March 3, 2024

Started in 2015, Country Delight aims to disrupt the milk distribution in India. Their mission is to deliver fresh, unadulterated milk directly to consumers’ homes through an innovative mobile app. With a streamlined ordering process, they aim to provide farm-to-home deliveries within 24-36 hours, facilitated by a fully integrated supply chain.

Country Delight sources directly from dairy farms and operates in 15 cities, including Delhi-NCR, Mumbai, Bengaluru, Chennai, Jaipur, and Pune.The India Dairy Market size is estimated at $26.11 bn in 2024, and is expected to reach $35.96 bn by 2029, growing at a CAGR of 6.61% during the forecast period (2024-2029).

In FY22, the company recorded operating revenue of Rs 564 Cr with a net loss of Rs 186 Cr, six times higher than the previous fiscal. Sales of fresh milk, constituting 67.8% of total revenue, grew by 46% to Rs 368 Cr. Additionally, sales of groceries and other dairy products increased 2.5 times to Rs 175 Cr.

Country Delight recently raised $20 mn in February 2024 at a valuation of around $820 mn. The company had last raised $108 million back in May 2022 at a valuation of $615 million.

The company operates on a subscription-based model where customers choose their preferred plan for regular or alternate-day deliveries. This streamlines milk management for customers, with daily service provided by the company. Ethical practices are ensured in milk procurement, with farmers receiving a premium for their production. By eliminating middlemen, the brand improves farmers’ working capital and pays them promptly. Currently serving over 300,000 households and fulfilling 50,00,000 orders monthly, facilitated by a team of 6,000 delivery personnel.

In the market organized players struggle with long delivery times and often resort to using milk powder, compromising freshness and naturalness. On the other hand, unorganized vendors offer quicker delivery but lack transparency regarding milk purity. Country Delight seized this opportunity by prioritizing purity and education. They aimed to educate consumers about the importance of pure, unadulterated dairy, bridging the gap in the market.

Country Delight “Live Better” digital campaign targets a shift towards farm-fresh products, reaching over 5 mn viewes on digital platforms. By highlighting the importance of healthy living standards, the campaign seeks to instigate a change in consumer behavior. Leveraging customer-focused and tech-driven strategies, the brand delivers fresh, minimally processed food items directly to households, tackling industry challenges like adulteration. This approach disrupts traditional delivery businesses and resonates with consumer sentiments. Despite initial challenges, Country Delight’s partnerships with celebrities, influencers, nutritionists, and chefs have cemented its relevance and trustworthiness.

While Mother Dairy and Amul hold significant presence in the market, Country Delight sets itself apart through its commitment to quality, emphasis on naturalness, and innovative marketing strategies. In the groceries segment, it competes directly with Blinkit, BigBasket, Zepto, and Otipy.

Country Delight is consistently evolving, focusing on new product launches and assessing categories. Currently, around 40% of its revenue comes from non-milk products, with plans to increase this to 60-70% in the coming years by expanding its customer base. The company aims to achieve a 10-15% market share in North India within the next three years.

Country Delight has positioned itself as a reliable and convenient product delivery service nationwide. Emphasizing quality and customer satisfaction has helped it build a loyal customer following. The company remains committed to expanding its reach to meet the increasing demand for dairy products across all demographics. However, it would be interesting to see how they would be balancing financial sustainability.

Reference: Economictimes | nicodigital | entrackr | mordorintelligence

Startup Funding Summary

Shadowfax, Bangalore-based logistics startup, has raised $100 Mn in Series E funding from TPG NewQuest, Mirae Asset Venture Investments (India), Flipkart, International Finance Corporation, Nokia Growth Partners, Qualcomm and Trifecta Capital – Read More

Newspace Research & Tech, Bangalore-based drone manufacturer, has raised $52 Mn in a funding from Marquee Investors, SBI’s startup hub and SIDBI – Read More

SBL Energy, Raipur-based mining & industrial explosives manufacturer, has raised $39 Mn in a funding from Synergy Capital, India SME Investments and other HNIs – Read More

Kushals Fashion Jewellery, Bangalore-based jewellery brand, has raised $34 Mn in Series B funding from Lighthouse India IV AIF – Read More

Zeno Health, Mumbai-based healthtech startup, has raised $25 Mn in Series C funding from STIC Investments and Lightbox – Read More

M&A Snippets

Mumbai-based hospitality company Chalet Hotels has acquired Faridabad-based hospitality group Courtyard by Marriott Aravali Resort for $38 Mn – Read More

Bangalore-based seafood firm Captain Fresh has acquired US-based seafood importer and distributor CenSea Inc for an undisclosed amount – Read More

Nvidia nears a $2 trillion valuation after adding a record $277 billion in stock market value in a single day!

February 25, 2024

NVIDIA Corporation (NVDA) is a prominent American semiconductor firm headquartered in Santa Clara, California, renowned for its cutting-edge graphics processing units (GPUs). With a dominant market share of around 80% in GPU semiconductor chips as of 2023, NVIDIA specializes in high-performance chips tailored for graphics-intensive tasks like gaming, editing, and 3D rendering, as well as for artificial intelligence (AI) and machine learning (ML) applications. With over 25 years of innovation, NVIDIA stands as a pioneer in GPU technology.

A top chip producer known for GPUs, Nvidia, emerged as a major supplier of AI hardware and software. Its pivotal role came in 2022, when OpenAI’s ChatGPT chatbot, powered by 10,000 NVIDIA GPUs launched, marking a breakthrough in the industry.

Nvidia added $277 billion in stock market value on Thursday, February 22, Wall Street’s largest one-day gain in history, after the chipmaker’s quarterly report beat expectations and reignited a rally fueled by optimism about prospects of artificial intelligence.

Stock surged 16.4% to $785.38, hitting a record high and pushing its market cap to $1.96 trillion post-January-quarter report. The report showcased strong demand for their AI computing chips, exceeding analysts’ expectations. This fueled a global tech stock rally, driving the S&P 500, Europe’s STOXX 600, and Japan’s Nikkei to record highs. Nvidia’s shares saw $65 billion in trading volume on Thursday, nearly a fifth of the S&P 500’s total. Nvidia’s historic single-day stock market surge surpassed Meta Platforms record gain, surpassing Coca-Cola’s value at $265 billion. The $277 billion increase also exceeded the combined market capitalization of all listed IT companies in India, totaling about $260 billion.

Nvidia’s surge propelled it to become the third-most valuable company in the US stock market, surpassing Amazon and Alphabet. Microsoft and Apple remain the top two, with market values of $3.06 trillion and $2.85 trillion, respectively.

Q4 revenue reached $22.1B, a 22% increase from the previous quarter and a 265% increase from the previous year. Full-year revenue for fiscal 2024 totaled $60.9B, marking a significant 126% increase.

CEO Jensen Huang highlighted the increasing demand for accelerated computing and generative AI, particularly in sectors such as data centers, gaming, professional visualization and automotive. The company also announced various collaborations and innovations across its different business segments.

Data Center revenue hit a record $18.4B in Q4, up 27% from the previous quarter and a remarkable 409% increase from the previous year quarter, Full-year revenue rose 217% to a record $47.5B. With collaborations with Google and Amazon Web Services, as well as partnerships with companies like Amgen and Singtel.

In the gaming segment, revenue stayed at $2.9 billion compared to the previous quarter but surged by 56% YOY. Full-year revenue hit $10.4 billion, a 15% increase. NVIDIA continues to innovate with the launch of GeForce RTX 40 SUPER Series GPUs and advancements in generative AI for over 100 million RTX AI PCs.

In Q4, Professional visualization revenue hit $463 million, up 11% from the previous quarter and a notable 105% increase YoY. Full-year revenue rose 1% to $1.6 billion. NVIDIA OmniverseTM was adopted by the automotive-configurator ecosystem, and the new NVIDIA RTX 2000 Ada Generation GPU was introduced, showcasing cutting-edge AI, graphics, and compute tech for compact workstations.

In Q4, automotive revenue hit $281M, up 8% QoQ but down 4% YoY. Full-year revenue rose 21% to $1.1B, propelled by greater adoption of NVIDIA DRIVE® by Great Wall Motors, ZEEKR and Xiaomi.

Looking forward, NVIDIA anticipates achieving revenue of $24B in the first quarter of fiscal year 2025.

While concerns over Nvidia’s supply have diminished, persistent challenges remain, especially regarding artificial intelligence demand and geopolitical factors. The company is poised to face repercussions from heightened US export controls, particularly impacting its business in China. The full extent of this impact remains uncertain, posing ongoing uncertainties for Nvidia’s future operations.

Reference: Nvidia | nasdaq | cnbctv18 | livemint

Startup Funding Summary

Rentomojo, Bangalore-based furnishing rental brand, has raised $25 Mn in Series D funding from Edelweiss, Chiratae Growth Fund and Magnetic – Read More

Walko Foods, Mumbai-based ice-cream brand, has raised $20 Mn in a funding from Jungle Ventures – Read More

Vidyut, Bengaluru-based EV financing startup, has raised $10 Mn in Series A funding from 3one4 Capital, Saison Capital, Zephyr Peacock, Force Ventures, Alteria Capital and Sujeet Kumar – Read More

Varaha, Gurugram-based climate-tech startup, has raised $9 Mn in Series A funding from RTP Global, Omnivore and Orios Venture Partners, Norinchukin Bank, AgFunder, IMC Pan Asia Alliance Group’s investment arm, Octave Wellbeing Economy Fund and other HNIs – Read More

PURE EV, Hyderabad-based EV startup, has raised $8 Mn in a funding from Bennett Coleman & Company, Hindustan Times Media Ventures, Ushodaya Enterprises and other HNIs – Read More

M&A Snippets

Udaipur-based diagnostic laboratory Medicentre has acquired Kota-based integrated diagnostic laboratory Prime Sonography & Diagnostic Centre for an undisclosed amount – Read More

US-based engineering and enterprise solutions firm Xoriant has acquired Bangaluru-based cloud management solutions provider MapleLabs for an undisclosed amount – Read More

Navigating Regulatory Challenges: Paytm Payments Bank’s Compliance Journey

February 18, 2024

The Reserve Bank of India (RBI) recently took stringent measures against Paytm Payments Bank, barring the entity from offering incremental banking services effective March 2024. This action was prompted by concerns regarding persistent breaches of regulatory norms and a lack of compliance by the bank. The crackdown came after a series of warnings and directives from the regulatory body, highlighting the seriousness of the non-compliance issues.

In March 2022, RBI directed Paytm Payments Bank to halt onboarding new customers and undergo a comprehensive System Audit conducted by an independent IT audit firm. However, despite repeated warnings and ample time provided for rectification, the bank failed to address the identified non-compliances adequately.

RBI Governor Shaktikanta Das emphasized that the regulatory actions were a last resort after exhausting all avenues for compliance. He reiterated the responsibility of regulated entities to adhere to regulatory norms and underscored the RBI’s commitment to ensuring a robust financial system.

One of the primary concerns that led to RBI’s scrutiny was the creation of numerous accounts at Paytm Payments Bank without proper identification, raising money laundering apprehensions. Additionally, reports surfaced regarding questionable transactions exceeding regulatory limits, further exacerbating the regulatory scrutiny on the bank.

In response to the RBI’s actions, Paytm denied allegations of wrongdoing. The company clarified that its financial services, such as loan distribution and equity broking, were not directly related to Paytm Payments Bank and assured customers of uninterrupted services.

The regulatory clampdown has not only raised concerns about disruptions to digital payments but also sparked discussions about the cancellation of Paytm’s license. Paytm, with its extensive user base and widespread usage in India, plays a significant role in the country’s digital payment ecosystem, making regulatory actions against it a matter of public interest.

Despite the regulatory hurdles, Paytm remains optimistic about its future. The company is in discussions with the RBI to comply with directives and is accelerating partnerships with other banks to ensure continuity of services. While the regulatory actions are expected to have an impact on its operational profit, Paytm is determined to navigate through the challenges and emerge stronger.

In conclusion, RBI’s crackdown on Paytm Payments Bank underscores the importance of regulatory compliance in the financial sector. The episode serves as a reminder for all financial entities to prioritize adherence to regulatory norms to maintain the integrity and stability of the financial system.

Reference: The Indian EXPRESS | India Today

Startup Funding Summary

Amber, Pune-based student accommodation platform, has raised $21 Mn in a funding from Gaja Capital, Lighthouse Canton and Stride Ventures – Read More

AstroTalk, Noida-based spiritual-tech startup, has raised $20 Mn in Series A funding from Left Lane Capital – Read More

Supertails, Bengaluru-based pet care startup, has raised $15 Mn in Series B funding from RPSG Capital Ventures, Fireside Ventures, Saama Capital, DSG Consumer Partners and Sauce VC – Read More

Metalbook, Gurgaon-based supply chain platform, has raised $15 Mn in Series A funding from Rigel Capital, FJ Labs, Axilor Ventures, Foundamental, Stride Ventures and Trifecta Capital – Read More

FlexiLoans, Mumbai-based fintech startup, has raised $7 Mn in a funding from Vivriti Asset Management – Read More

M&A Snippets

Ahmedabad-based pharmaceutical firm Eris Lifesciences has acquired Ahmedabad-based pharmaceutical manufacturer Swiss Parenterals for $77 Mn – Read More

Gurgaon-based esports and gaming startup Nodwin Gaming will acquire Turkey-based esports firm Ninja Global for $4 Mn – Read More

India’s UPI stands out as a leading contender on the global stage in digital payment systems

February 11, 2024

Groundbreaking Indian innovation that’s making waves worldwide – the Unified Payments Interface (UPI). Developed by the National Payments Corporation of India (NPCI) in 2016, UPI has revolutionized the way payments are made. With $1.7 trillion worth transactions in fiscal year 2023. UPI has become a global sensation, revolutionizing digital transactions and setting new standards for convenience, security, and inclusivity.

With UPI, making payments is as easy as sending a text message on your smartphone, thanks to its user-friendly Virtual Payment Address (VPA) feature. Say goodbye to sharing sensitive bank details – UPI ensures security and simplicity every step of the way. From street vendors to shopping malls, UPI is the go-to payment method, driving India’s digital transformation. In fact, India leads the world in digital transactions, commanding a staggering 46% share as of 2022.

In volume terms, UPI has grown 59.2 percent year-on-year to ₹9.33 billion in June 2023 and 45.5 percent in value terms to ₹14,75,464 crore, from a year ago. This has expanded to Rs 9.96 billion in volume terms and ₹15,33,536.44 crore in value terms, for July.

The Indian digital payments market is expected to touch 411 billion transactions in FY27, from 103 billion in FY23, PwC said in a May 2023 report, with the industry expanding steadily in the last five years at a CAGR of 50 percent transaction, volume-wise and 60 percent transaction, value-wise respectively.

The recent rollout of India’s Unified Payments Interface (UPI) at the Eiffel Tower in France signifies a significant advancement in the worldwide adoption of digital payment systems, offering particular advantages to Indian travelers who can now transact in rupees while exploring this renowned attraction. Visitors to the Eiffel Tower in Paris can now conveniently make reservations using India’s UPI platform. Moreover, UPI has already gained acceptance in the UK, Bhutan, UAE, Oman, and Southeast Asia.

The introduction of UPI in France signals a significant development for the fintech sector, highlighting the necessity for adaptable and scalable systems that comply with diverse regulatory and economic landscapes. Through a strategic partnership with the French digital payment platform Lyra, UPI has expanded its presence into Europe, facilitating smooth and hassle-free payment transactions for Indian tourists, a sizable demographic of travelers in the region.

The integration of RuPay credit cards with UPI marks a revolutionary step in the digital payments landscape, combining the advantages of both credit cards and UPI for consumers. By taking advantage of the short-term credit facility offered by credit cards for UPI transactions, cardholders can now initiate payments using their credit lines instead of drawing from their savings accounts.

UPI’s remarkable success story exemplifies India’s ability to innovate and adapt to evolving technological trends, positioning itself as a frontrunner in the global fintech landscape.

Reference: livemint.com | forbesindia.com | pib.gov.in

Startup Funding Summary

River, Bengaluru-based EV startup, has raised $40 Mn in Series B funding from Yamaha Motor Co, Al-Futtaim Automotive, Lowercarbon Capital and Toyota Ventures – Read More

Anarock Group, Mumbai-based real-estate consultancy, has raised $25 Mn in a funding from 360 ONE Asset Management – Read More

Lohum, Delhi-based battery manufacturer, has raised $23 Mn in Series B funding from Baring Private Equity Partners, Cactus Partners, Chhattisgarh Investment, Ventureast Proactive Fund, Michael B Schwab Living Trust, Singularity Growth, Stride Ventures, Anish Vora, Kunal Babani, Manas Tondon and other HNIs – Read More

Mufin Green Finance, Delhi-based NBFC, has raised $17 Mn in Series B funding from State Bank of India, IREDA, AU Small Finance Bank, ICICI Bank and Kotak Mahindra Investments – Read More

Keus, Hyderabad-based smart home automation company, has raised $12 Mn in a funding from OAKS Asset Management – Read More

M&A Snippets

Mumbai-based consumer service provider Onsitego has acquired New Delhi-based device care service provider Qdigi Services for $10 Mn – Read More

Bengaluru-based metaverse & gaming company OneVerse has acquired Mumbai-based online poker platform Spartan Poker for an undisclosed amount – Read More

Key Highlights of India’s Interim Budget 2024

February 4, 2024

We bring you the key highlights of India’s Interim Budget 2024, presented by Hon’ble Finance Minister Smt. Nirmala Sitharaman. This budget outlines the government’s spending plans for the first half of the upcoming fiscal year, showcasing a range of initiatives across various sectors.

In the past decade, the government’s ‘Sabka Saath‘ initiative has successfully lifted 25 crore people out of multidimensional poverty. Notably, the ‘Direct Benefit Transfer’ of 34 lakh crore through PM-Jan Dhan accounts has saved the government 2.7 lakh crore. The PM-SVANidhi scheme supported 78 lakh street vendors, with 2.3 lakh receiving credit three times.

National Education Policy 2020 brings transformative reforms, with PM SHRI providing quality education. Skill India Mission trained 1.4 crore youth, and new institutions include 7 IITs, 16 IIITs, 7 IIMs, 15 AIIMS, and 390 universities. PM Mudra Yojana sanctioned 43 crore loans (22.5 lakh crore) for entrepreneurial ventures, supported by the Fund of Funds, Start-Up India, and Start-Up Credit Guarantee schemes for youth. Mudra Yojana has granted loans to 30 crore women entrepreneurs.

India-Middle East-Europe Economic Corridor is a strategic game changer. Economic policies in FY25 aim for sustained growth, inclusive development, and improved productivity. The fiscal deficit is projected at 5.1%, with tax benefits for startups extended. Nominal GDP growth is expected at 10.5%.

The government plans to provide free monthly electricity to one crore households through rooftop solarization, saving residents 15-18 thousand rupees annually. This initiative supports electric vehicle charging, fosters entrepreneurship in supply and installation, and generates employment for youth with technical skills. Union Minister R.K. Singh announced an increase in rooftop solar installation subsidy from 40% to 60% under the Pradhan Mantri Suryoday Yojana, aiming to ease the financial burden on citizens who face challenges in taking loans for such projects.

The government aims to establish additional medical colleges by utilizing existing hospital infrastructure, with a committee tasked to address related issues. Special emphasis will be placed on vaccinating girls aged 9-14 to prevent cervical cancer. Maternal and child care schemes will be consolidated for more efficient implementation. Efforts will be intensified to upgrade anganwadi centers, specifically focusing on Saksham Anganwadi and Poshan 2.0 for improved nutrition and early childhood development. The U-WIN serves as a comprehensive platform for India’s Universal Immunization Programme, facilitating registration, follow-ups, and vaccination certificates. Indradhanush will be expanded nationwide. Ayushman Bharat, a National Health Protection Scheme, aims to cover 10 crore poor families (around 50 crore beneficiaries) with up to 5 lakh rupees per family annually for secondary and tertiary care hospitalization. Its coverage will be extended to include ASHA workers, Anganwadi workers, and helpers.

Government intensifies agribusiness efforts, boosting farmer income through the PM Kisan Sampada Yojana for 38 lakh farmers and 10 lakh jobs. PM Formalisation of Micro Food Processing Enterprises Yojana aids 2.4L SHGs and 60K individuals, targeting post-harvest losses, productivity, and income. Emphasis on public-private investment in post-harvest and nano-DAP applications. 

‘Atmanirbharta’ strategy for oil seeds covers research, techniques, market linkages, value addition, and crop insurance. Comprehensive dairy support addresses foot and mouth disease, focusing on productivity and existing schemes. PM Matsya Sampada Yojana accelerates aquaculture, doubling exports, creating jobs, and establishing five aquaparks.

83 lakh SHGs, comprising 9 crore women, drive rural transformation. One crore women achieve ‘Lakhpati Didi’ status, with the target raised to 3 crore. A 1 lakh crore corpus, supported by a 50-year interest-free loan, aims to finance private sector research and innovation in sunrise domains. A scheme will also be introduced to enhance deep-tech defense technologies and expedite ‘Atma Nirbharta’.

The infrastructure outlay for the next year is being increased by 11.1% to eleven lakh, eleven thousand, one hundred and eleven crore rupees (INR 11,11,111 Cr). This would be 3.4% of the GDP. Railways focus on PM Gati Shakti for multi-modal connectivity. Aviation expands with 149 airports, with UDAN-19 connecting tier-two and tier-three cities via 517 new routes, serving 1.3 million passengers.

To achieve ‘net zero’ by 2070, initiatives include funding for one gigawatt of offshore wind energy, establishing 100 MT of coal gasification and liquefaction capacity by 2030, and mandating phased blending of compressed biogas in CNG and PNG. Financial aid for biomass machinery will support collection efforts, reducing reliance on natural gas imports.

2014–23 saw a $596 billion FDI inflow, doubling the 2005–14 figures, reflecting a golden era. To promote continuous foreign investment, bilateral investment treaties are being negotiated under the ‘First Develop India‘ approach. Blue Economy 2.0 emphasizes climate-resilient activities.

This comprehensive plan reflects a commitment to inclusive development, economic growth, and sustainability across various sectors in India. The detailed roadmap for the ‘Viksit Bharat’ vision is expected to be presented in the upcoming full budget in July.

Reference- investindia.gov.in|reuters.com|thehindubusinessline.com|livemint.com


Startup Funding Summary

U GRO Capital, Mumbai-based fintech platform, has raised $30 Mn in a funding from Asian Development Bank – Read More

BluSmart, Gurugram-based EV mobility startup, has raised $25 Mn in a funding from ResponsAbility – Read More

WIZ Freight, Chennai-based logistics platform, has raised $15 Mn in Series B funding from SBI Investment, Tiger Global Management, Nippon Express Holdings, Axilor Technologies Fund, Foundamental, Arali Investments, Unikon Shipping Ventures and other HNIs – Read More

MoveInSync, Bengaluru-based employee commute platform, has raised $15 Mn in Series C funding from Bessemer Venture Partners – Read More

Grow Indigo, Mumbai-based agritech startup, has raised $8 Mn in a funding from Indigo Ag, Mahyco and other HNIs – Read More

M&A Snippets

Bengaluru-based apparel exporter Gokaldas Exports will acquire Gurgaon-based apparel manufacturer Matrix clothing for $59 Mn – Read More

Pune-based heath-tech company Bajaj Finserv Health will acquire Bengaluru-based healthcare service provider Vidal Healthcare for $39 Mn – Read More

Cars24 Nears $1 Billion in Sales for FY23

January 28, 2024

Founded in 2015 by Vikram Chopra, Gajendra Jangid, Ruchit Agarwal, and Mehul Agrawal, Cars24 offers a tech-enabled marketplace, streamlining the buying and selling of pre-owned cars in India, Australia, Thailand, and UAE. Revolutionizing the process by offering an efficient and reliable platform, it employs an AI pricing algorithm for accurate market and appraisal prices. Additionally, the platform facilitates appointments for vehicle inspections.

The Indian Used Car Market size is estimated at USD 31.62 billion in 2024, and is expected to reach USD 63.87 billion by 2029, growing at a CAGR of 15.10%, most likely due to increased demand for individual mobility and expansion of car financing options. Hindered new car sales and production during the pandemic have further fueled the rising prominence of the used car market.

In FY 2023, the company’s operating revenue increased 16% to reach $930.3 million compared to $799 million in FY22. Additionally, the company successfully reduced its net loss by 32% to $168.3 million in FY23 from $248 million in the previous fiscal year. As indicated here, the company is valued at $1.84 billion.

CARS24 operates on a customer-to-business (C2B) model in the used-car resale business. The company guarantees a competitive price for any car, regardless of its model, age, or condition. Sellers can obtain an online valuation and complete the sale in a single visit to any CARS24 branch, receiving instant payment. The platform handles legal documentation at no extra cost. Operating in the automotive, e-commerce, retail, and used car trade, CARS24 charges a 4-5% commission for end-to-end transactions. Pre-owned car sales form the primary revenue stream, followed by financing services and additional commissions. The company also earns non-operating revenues from financial assets.

Despite its success, CARS24 operates in a highly competitive market, facing competition from rivals such as CarDekho, Droom, Quikr Auto, Olx, CarTrade, and NDTV Auto, all targeting the same segment and audience.

Running a business in the used car market comes with its own set of risks and difficulties, especially when dealing with a large and slow-moving inventory. Selling used cars beyond a specified time frame from their acquisition poses a risk, potentially resulting in reduced profits if the inventory doesn’t find buyers within one to two months as the cost of keeping those cars in stock increases.

Moreover, the unicorn startup in the used-car industry is exploring diversification beyond its current focus on the ‘cars’ marketplace that it currently is, into bikes. Simultaneously, the company aims to expand its used car financing platform, utilizing the recently raised funds. It would be interesting to watch how they will counter the challenge in the two-wheeler segment when that sector is wholly run by unorganized players.

Startup Funding Summary

Vivifi India Finance, Hyderabad-based NBFC, has raised $75 Mn in Series B funding from BP IN VPF LLC – Read More

Krutrim, Bangalore-based large language model startup, has raised $50 Mn in a funding from Matrix Partners India and other HNIs – Read More

Namdev Finvest, Jaipur-based NBFC, has raised $15 Mn in Series B funding from British International Investment, LC Nueva AIF, Incofin India Progress Fund and other HNIs – Read More

Ecofy, Worli-based NBFC, has raised $11 Mn in a funding from FMO – Read More

STAN, Bengaluru-based esports fan engagement platform, has raised $3 Mn in a funding from Aptos Labs, Pix Capital, Maelstrom Fund, GFR Fund, CoinDCX Ventures, Climber Capital, TDV Partners and Coinswitch Ventures – Read More

M&A Snippets

Gurgaon-based esports and gaming startup Nodwin Gaming will acquire New Delhi-based entertainment company Comic Con India for $7 Mn – Read More

Wow! Momo Journey: From ₹30,000 to ₹2400 Cr Food Company

January 21, 2024

Founded by classmates Sagar Daryani and Binod Homagai, Wow! Momo, a Kolkata-based company, was started in 2008. As a rapidly expanding quick-service restaurant, WOW! Momo has a significant presence across India and stands out as the sole establishment with the largest momo supply chain.

Today Wow! Momo has over 300 outlets across 17 cities, and the hunger and passion for what they do still linger! Besides the flagship brand, Wow! Momo, the startup also has two other brands. Wow! China and Wow! Chicken.

The India Quick Service Restaurant (QSR) Market size is estimated at $25.46 billion in 2024, and is expected to reach $38.71 billion by 2029, growing at a CAGR of 8.74% during the forecast period (2024-2029).

Following a COCO (Company Owned Company Operate) business model, Wow! Momo oversees all aspects, from material purchase to processing and delivery. Each city features a central cloud kitchen managing all Wow! Momo stores.

For the current fiscal year (FY24), wow! Momo aims to achieve a topline of ₹650–700 crore, a significant increase from ₹435 crore in FY23. Although financial statements for FY23 are pending, the company experienced a two-fold growth in revenue from operations, reaching ₹220 crore in FY22 compared to ₹106 crore in FY21.

Wow! Momo has raised a total of $126.9M in funding over 10 rounds. Their latest funding was raised on Jan 16, 2024 in a Series D round.

WOW! Momo began with a small kiosk, encountering expansion challenges. To grow their customer base, the founders wore yellow shirts, providing momo samples. Despite street vendors’ lower prices, WOW Momos excelled in quality, sanitation, and flavor variety, giving them a competitive edge.

Looking ahead, Wow! Momo is set to launch Wow! Kulfi as a new vertical, supplementing its primary revenue driver. While Wow! Momo remains pivotal, CEO Sagar Daryani envisions substantial potential in its diverse verticals.

Anticipated Developments: Wow! Eats will integrate all four verticals. Wow! Momo, Wow! China, Wow! Chicken, and Wow! Kulfi. The first quarter of FY24 will see an expansion of physical Eats stores to 10 in major metro cities. An upcoming Wow! Eats app is on the horizon, streamlining online ordering for dine-in and delivery from all three brands.

Startup Funding Summary

Wow! Momo, Delhi-based food brand, has raised $49 Mn in a funding from Khazanah Nasional Berhad, Indian Angel Network, Lighthouse Funds and OAKS Asset Management – Read More

StockGro, Bengaluru-based investment platform, has raised $11 Mn in a funding from Trifecta Ventures and Hindustan Media Ventures – Read More

FPL Tech, Pune-based fintech service provider, has raised $14 Mn in a funding from Alteria Capital – Read More

FinAGG Tech, Noida-based fintech startup, has raised $11 Mn in Series A funding from Tata Capital, Blue Orchard, The Small Industries Development Bank of India, Prime Venture Partners and Gray Matter Capital – Read More

Alt Mobility, Delhi-based EV leasing & lifecycle management platform, has raised $6 Mn in a funding from Shell Ventures, Eurazeo, EV2 Ventures and Twynam. UC Inclusive, Piper Serica, Pitchright and LetsVenture – Read More

M&A Snippets

Noida-based F&B company Haldiram will acquire Indore-based F&B company Pratap Snacks for an undisclosed amount – Read More

Delhi-based financial service provider DMI Group has acquired Bengaluru-based BNPL startup ZestMoney for an undisclosed amount – Read More

Astrotalk: Discovering the Spiritual Startup

January 14, 2024

Astrotalk, a prominent online astrology platform, was founded by Puneet Gupta, a former IT engineer turned entrepreneur. The platform aims to connect individuals with astrologers, fostering meaningful connections. With its extensive network of over 13,000 Vedic astrologers, Tarot readers, numerologists, Vastu experts, and more, Astrotalk enables users to engage with them through calls and chats, seeking answers to their queries.

The present global astrology market boasts a valuation in the billions, with the latest recorded figure reaching $12.8 billion. Forecasts suggest that the market is on track to approach nearly $22.8 billion by 2031.

In the realm of Indian spirituality, religion, and devotion, the market is estimated to reach $58.5 billion in 2023, with astrology contributing over $10 billion. The overall market is anticipated to experience a compound annual growth rate (CAGR) of 10% from 2024 to 2032. The funding landscape for Astrotech startups in India reflects figures of $947k in 2019, $801k in 2020, $2.63 Mn in 2021, and $950k in 2022.

Astrotalk, primarily self-funded, achieved its highest daily revenue of INR 1.8 crore, approaching its fiscal year 2024 target of INR 600 crore. Astrotalk now handles daily business of Rs 70 lakh and delivers over 2,50,000 minutes of consultations daily, with a user base exceeding 30 million, New users typically spend between INR 200 and 500 per month on the platform, while returning customers spend up to three times that amount.

The platform attracts users aged 18 to 35, suggesting that, contrary to the elderly, who openly express their prayers in India, the youth tend to privately seek solutions for their concerns. Astrotalk reported a revenue of INR 282 crores in the fiscal year 2023, with a profit after tax (PAT) of INR 27 crores.

Astrotalk derives its revenue from consultation fees for real-time interactions with astrologers. Additional income streams are created through premium services, offering in-depth analyses and extended sessions, as well as subscription models that provide recurring benefits to foster user loyalty. The platform operates as a marketplace for astrology-related products such as e-Pooja and gemstones. Revenue from partnering with astrologers involves commissions or subscription fees. Collaborations with relevant businesses for promotions and income from targeted ads contribute to further diversifying revenue streams.

Astrotalk faces competition from other platforms such as Astrosage, Astroyogi, My Pandit, and similar services. There are many challenges faced by astrotalk. Starting from difficulty in gaining people’s trust to ensuring the astrologers they hire were authentic and do not participate in any malpractices. The astrology consultation app, Astrotalk, is contemplating an IPO in India by 2025–26 with a revenue target of Rs 2,000 crore. Currently exploring various options, the company has reported a notable upswing in both revenue and profit during FY23.

It would be interesting to watch whether Astrotalk is able to achieve the intended targets.

Startup Funding Summary

Impact Analytics, Bengaluru-based retail AI solution platform, has raised $40 Mn in a funding from Sageview Capital and Vistara Growth – Read More

MakeO, Mumbai-based dental & skincare startup, has raised $16 Mn in a funding from 360 ONE Asset, investment office of Ashish Kacholia, Eight Roads Ventures, Paramark Ventures, the family office of Medlife founders Prashant Singh and Tushar Kumar – Read More

Varthana Finance, Bengaluru-based NBFC, has raised $14 Mn in a funding from Blue Earth Capital – Read More

Akshayakalpa Organic, Bengaluru-based organic dairy startup, has raised $12 Mn in Series C funding from A91 Partners, Rainmatter Capital and British International Investment – Read More

Slurrp Farm, Delhi-based F&B startup, has raised $7 Mn in a funding from Fireside Venture, Raed Capital, Alkemi Ventures, Madhurima International and Sharrp Ventures – Read More

M&A Snippets

Bengaluru-based multinational IT company Infosys will acquire Bengaluru-based semiconductor design firm InSemi for $34 Mn – Read More

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