Tag: M&A

Revolutionizing India’s EV Landscape: Ola Electric’s IPO Journey

April 7, 2024

India is witnessing a surge in popularity of electric vehicles (EVs), evident from the increasing number of green number plates on the roads. Startups like Ola Electric are leading the charge, pushing boundaries and shaping the future.

Ola Electric Mobility stands out as a frontrunner in India’s two-wheeler EV market, driving towards a greener tomorrow. The journey commenced with the acquisition of Amsterdam-based electric scooter company Etergo in 2020, granting Ola Electric access to cutting-edge EV technology, notably their swappable battery system. This milestone was followed by the establishment of the world’s largest scooter manufacturing hub in Tamil Nadu, India, boasting an impressive annual production capacity of two million electric vehicles.

Despite challenges like competition and infrastructure gaps, Ola Electric’s strategic partnerships, innovative products, and sustainability commitment position it as a significant influencer in India’s EV sector.

Recently secured $50 million in debt funding from EvolutionX Debt Capital, marks a significant stride towards Ola Electric’s future goals. The company is also pursuing its IPO ambitions, with the submission of its draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (Sebi). Projections suggest a valuation ranging from $7-8 billion, with funds earmarked for critical initiatives such as establishing a battery factory, research and development, and addressing debts.

The electric scooter market in India is experiencing remarkable growth, projected to soar from USD 950.40 Mn in 2023 to USD 13,089.0 Mn by 2032, boasting a robust compound annual growth rate (CAGR) of 33.25%. Ola Electric asserts its dominance in the Indian electric two-wheeler segment, boasting a significant 40% market share.

In FY23, Ola Electric showcased strong growth, with total revenue surging by 510% to Rs 2,782 crore from Rs 456 crore in FY22. However, the company reported an EBITDA loss of Rs 1,318 crore, attributed to a surge in total expenses to Rs 3,383 crore compared to Rs 1,240 crore in FY22. (source)

One of Ola Electric’s most ambitious initiatives is the construction of a “gigafactory” to produce battery cells. This initiative not only contributes to India’s economic growth but also reduces dependence on cell imports and cuts down on logistical costs borne by Indian manufacturers.

Ola Electric isn’t just a player in the EV game; it’s a catalyst for transformation. Through strategic investments, IPO plans, and capital raising efforts, Ola Electric has potential to steer India’s transportation sector towards a brighter, greener future.

Let us see whether with innovation, passion, and a strong commitment to sustainability, Ola Electric can continue to make significant strides, leaving the world eager to witness its future endeavors.

Ecosystem Ventures This Week

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We are pleased to share the celebrations on account of the iLead Foundation Day. (Ecosystem Ventures is part of the iLead group). Exciting fun-filled activities ranging from Guess Who Activities, Health Check-ups, Movie & Dinner, etc, led to a renewed sense of togetherness across teams, departments, and companies.

Startup Funding Summary

Ola Electric, Bengaluru-based EV startup, has raised $50 Mn in a funding from EvolutionX Debt Capital – Read More

Electronica Finance, Pune-based NBFC, has raised $48 Mn in Series B funding from LeapFrog Investments, Aavishkaar Capital and Encourage Capital – Read More

SingleInterface, Gurgaon-based marketing & commerce platform, has raised $30 Mn in a funding from Asia Partners and PayPal Ventures – Read More

Namdev Finvest, Jaipur-based NBFC, has raised $19 Mn in Pre-Series C funding from Maj Invest Financial Inclusion Fund III K/S and other HNIs – Read More

Nivara Home Finance, Bengaluru-based fintech firm, has raised $10 Mn in a funding from Baring Private Equity India – Read More

M&A Snippets

Mumbai-based healthcare startup Zeno Health has accquired Kolkata-based pharmacy platform TABLT Pharmacy for an undisclosed amount – Read More

Pocket FM: Revolutionizing Audio Content & Expanding Global Footprint

March 31, 2024

Let’s go back to 2018, a year that signaled the rising potential of audio content. With the swift expansion of the Jio network, it became clear that consumption of content across various mediums was poised for a significant uptick, and audio was no exception. In this landscape of interest in audio content, Pocket FM emerged as a potential platform to reshape the entertainment landscape with its unique category of audio content. Pocket FM founders include – Rohan Nayak, Nishanth KS, and Prateek Dixit.

In FY 2023, Pocket FM experienced a 647% surge in total revenue, reaching ₹131 Cr. The startup reported a noteworthy increase in advertising revenue, which soared by 1,120% to ₹12.17 Cr, while microtransaction revenue also saw a substantial rise of 417% to ₹ 82.8 Cr. However, Pocket FM witnessed a 9.32% YoY increase in overall expenses, totaling ₹206.78 Cr in FY23.

Pocket FM generates revenue through a multi-faceted model including subscription fees (monthly or yearly plans), advertising, and partnerships with influencers, content creators, publishers, and authors. Subscription fees provide access to ad-free premium content, while ads are displayed to freemium users. Revenue-sharing partnerships with creators and advertisers also contribute to its financial sustainability and growth.

Facing the challenge of limited organic impressions, low keyword rankings, and inadequate visibility within the app stores, Pocket FM devised a multifaceted strategy to bolster its market presence and attract a broader audience.

Firstly, Pocket FM harnessed the power of digital advertising channels, employing targeted online display ads, SEM, content marketing, and social media advertising to amplify its reach and promote its platform effectively. This involved tailoring advertisements to specific user demographics, interests, and behaviors to maximize their impact. Additionally, Pocket FM engaged in strategic partnerships with influencers and content creators in the audio and literary spheres. By collaborating with these individuals, Pocket FM garnered endorsements, generated engaging content, and conducted promotional campaigns across various online platforms, thereby expanding its visibility and attracting new users.

Moreover, Pocket FM implemented an optimized app store strategy, enhancing its app listings with compelling screenshots, enticing descriptions, and relevant keywords to boost its visibility and ranking within app stores. This proactive approach aimed to increase organic downloads and drive user acquisition.

Furthermore, Pocket FM introduced a referral program to stimulate word-of-mouth marketing. By incentivizing existing users with referral bonuses, discounts, and exclusive content for each new user they referred to the platform, Pocket FM fostered a community-driven growth strategy that significantly augmented its user base.

In a recent statement, audio entertainment platform Pocket FM announced securing $103 million in Series D funding, The round was led by Lightspeed with participation from Stepstone Group. This latest investment brings the startup’s total funding to $196.5 million. With this capital injection, Pocket FM aims to bolster its expansion efforts into the U.S. market and extend its footprint globally, targeting Europe and LATAM markets in 2024. The company intends to further enrich its exclusive content library and cultivate a robust intellectual property portfolio by providing a platform for writers to share their unique narratives.

Despite current losses, Pocket FM’s business model has proven effective, gaining significant popularity since its inception in 2018 as a leading player in serialized audio storytelling. It would be interesting to see how it scales from here.

Reference: inc42.co | thebusinessrule.com | business.outlookindia.com

Startup Funding Summary

Avanse Financial, Mumbai-based NBFC, has raised $120 Mn in a funding from Mubadala Investment Company and Avendus PE Investment Advisors – Read More

Ambit Finvest, Mumbai-based NBFC, has raised $82 Mn in a funding from Daiwa Securities Group and other HNIs – Read More

Veranda Learning, Chennai-based edtech firm, has raised $51 Mn in a funding from BPEA Credit – Read More

ShareChat, Bengaluru-based social media platform, has raised $49 Mn in a funding from Temasek, Lightspeed, HarbourVest, Moore Strategic, Alkeon Capital and Tencent – Read More

Aye Finance, Gurugram-based NBFC, has raised $16 Mn in a funding from Invest in Vision and IIV Mikrofinanzfonds – Read More

M&A Snippets

Ahmedabad-based logistics and supply chain company Adani Ports will accquire Odisha-based logistics firm Gopalpur Port for $162 Mn – Read More

New Delhi-based traveltech company EaseMyTrip will accquire Mumbai-based travel portal E-Trav for $4 Mn – Read More

From Vision to Expansion: Narayana Health’s Trailblazing Journey in Affordable Healthcare

March 24, 2024

India’s low-cost innovation might not originate from the IT or SaaS sectors but could rather emerge quietly from the healthcare unicorn, Narayana Health. While IT services exports amount to $330 billion, India’s entire healthcare market stands at $372 billion.

The 2020 COVID pandemic impacted all sectors, including Narayana Health. During the first quarter of FY 2020–21, it recorded a net loss of ₹31 crore ($4.2 million) due to lockdowns and travel restrictions, affecting revenue from elective surgeries and medical tourism. To address pandemic healthcare needs, Narayana Health established dedicated COVID-19 treatment facilities, including a 100-bed quarantine center in Bengaluru with Infosys Foundation and a 100-bed ICU facility at Narayana Health City with Goldman Sachs. Dr. Devi Shetty joined the National Task Force for India’s COVID-19 response. Narayana Health also issued advisories on managing health during lockdowns and post-COVID complications.

By FY23, Narayana Health had a revenue of ₹4,524 crore, accompanied by a profit after tax (PAT) of ₹636 crore. Having raised $100 million through an IPO in 2015, Narayana Health now boasts a market capitalization of ₹25,000 crore.

Narayana Health revolutionizes healthcare with a Ford-inspired cost-efficient model. By building extensive campuses and optimizing space, they increase bed capacity and patient intake. Bulk purchasing of equipment further drives down costs. Their unique approach empowers surgeons by treating them as business owners, providing daily profit and loss statements for each surgery. This hands-on financial insight allows for precise cost optimization.

Additionally, Narayana Health employs cross-subsidization, charging higher rates to wealthier patients and medical tourists to subsidize care for lower-income individuals. Despite offering affordable rates, quality remains paramount, with mortality rates post-cardiac surgery lower than the U.S. average. Efficiency is a hallmark, with Narayana hospitals performing numerous surgeries daily at a fraction of the cost compared to the U.S., thanks to economies of scale.

Narayana Health faced tough competition from established players like Apollo Hospitals, Fortis Healthcare, Max Healthcare, AIIMS, Aster DM Healthcare, and diagnostic chains such as Dr Lal Pathlabs. Cost was a significant factor for Narayana, which differentiated itself by implementing a hub-and-spoke model. This involved establishing spoke hospitals in tier 2-3 cities feeding into major metro hubs, enabling cost-effective expansion.

The company also boasted one of the world’s largest telemedicine networks, connecting 800 centers globally, including 53 in Africa, to reach remote patients without extensive physical infrastructure. Narayana announced plans to expand into Eastern India by setting up a 1,000-bed specialty hospital in Kolkata, serving as a hub for spoke hospitals in the region.

Micro-insurance programs were introduced to improve healthcare affordability, leading to the launch of a health insurance subsidiary. By 2023, Narayana had grown from its Bangalore origins to 24 primary hospitals across major Indian cities and internationally. With a focus on heart centers and primary care facilities, it served 7,000 beds, significantly reducing the gap in heart surgeries for Indians.

In 2024, the government is implementing a regulatory fee structure to standardize hospital rates, aligning with Narayana Health’s low-cost, high-quality healthcare philosophy. With a budget of ₹2,000 Cr for FY23 and FY24, Narayana introduced the Narayana Health App, facilitating remote monitoring and collaboration among doctors, resulting in a 52% reduction in discharge turnaround time and a 32% drop in outpatient care delays.

In Q2 FY24, Narayana saw a 34.3% increase in net profit to ₹226 Cr and a 14.3% surge in revenue. They’ve ventured into the health insurance sector, obtaining licenses from IRDA(Insurance Regulatory and Development Authority) and launching patient-centric insurance plans. Leveraging their brand, Narayana aims to expand globally with their low-cost, high-quality approach, capitalizing on two decades of building trust and distribution in the healthcare market, making up-selling and cross-selling healthcare products easier.

Narayana’s aspiration to revolutionize heart care at an affordable ₹2000 is now poised for expansion, as it seeks to propagate its high-quality, cost-effective healthcare model across India and globally.

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Startup Funding Summary

Pocket FM, Bengaluru-based audio entertainment platform, has raised $103 Mn in Series D funding from Lightspeed Ventures and Stepstone Group – Read More

Ultrahuman, Bengaluru-based health-tech startup, has raised $35 Mn in Series B funding from Blume Ventures, Steadview Capital, Nexus Venture Partners, Alpha Wave Incubation and Deepinder Goyal – Read More

The Good Glamm Group, Delhi-based personal care company, has raised $30 Mn in a funding from Warburg Pincus, Prosus, Bessemer India, Accel Partners – Read More

Curefoods, Bengaluru-based cloud kitchen startup, has raised $25 Mn in Series D funding from Three State Ventures – Read More

Jumbotail, Bengaluru-based wholesale and food grocery platform, has raised $18 Mn in Series C3 funding from Artal Asia, Heron Rock, Sabre Investment, Arkham Ventures, Jarvis Reserve Fund, Reaction Global and VII Ventures – Read More

M&A Snippets

Bengaluru-based fintech firm Slice will merge with Guwahati-based private sector small finance bank North-East Small Finance Bank – Read More

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

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