Tag: M&A

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

How Calendly makes money?

January 7, 2024

Excessive emails, scheduling challenges, and suboptimal meeting timing decrease productivity in the workplace. The back-and-forth emails it takes to schedule a meeting are typically a source of frustration. This universal pain point leads to a global market opportunity because meeting scheduling touches many industries, use cases, and business processes.

Calendly, an online scheduling and appointment-booking tool founded by Tope Awotona in 2013, has emerged as a prominent $3 billion company headquartered in Atlanta. It has gained widespread popularity for its effectiveness in both personal and professional scheduling, streamlining the coordination of meetings, appointments, and events. Calendly successfully eliminates the tedious back-and-forth emails and phone calls, providing users with a user-friendly solution for efficient and seamless scheduling.

The global market for appointment scheduling software, valued at $400.6 million in 2022, is projected to grow at a CAGR of 10.4% from 2023 to 2032, reaching an estimated $1.07 billion by 2032.

Calendly, known for its expertise in efficient meeting scheduling, highlights notable achievements on its website, such as a 45% acceleration in meeting scheduling, a 25% increase in revenue per lead, and a 100% rise in candidate screens. Recognised for its outstanding integration capabilities, mobile support, and user-friendly interface, Calendly effortlessly connects with widely used platforms such as Office 365, Google, Outlook, PayPal, and Stripe.

In 2023, Calendly achieved a revenue of $276.1 million and garnered 10 million customers, demonstrating a remarkable year-over-year growth of 52.15%. Operating under a freemium model as Software as a Service (SaaS) for both B2B and B2C, Calendly generates revenue through subscriptions to its scheduling software. This includes three premium plans alongside a free plan.

Tope Awotona, the founder, adopts an upside-down sales funnel strategy, utilizing the freemium model to attract new customers. The Basic Plan serves as the entry point, drawing users into the funnel. Although it is not a direct revenue stream, it plays a crucial role in the subscription model. Calendly’s revenue streams primarily stem from its Premium, Pro, and Enterprise plans, which are strategically positioned to cater to various customer needs within the CRM framework.

Calendly competes with a diverse range of rivals in the scheduling market, including Google. While both tools provide robust scheduling capabilities and seamless integrations, several factors should be taken into account. For businesses seeking customisable features and seamless integration with other business tools, Calendly might be the preferable option. Offering adaptable booking rules and smooth integration with tools such as Google Workspace and CRM systems, Calendly provides a comprehensive solution for efficiently managing appointments.

In the scheduling industry, Calendly faces competition from key players such as Microsoft, HubSpot, Doodle and OneHash started by our friend Rohit Gadia. As of 2022, Calendly is estimated to hold a 21% market share in this industry.

With the economy struggling, Calendly faces tough competition from big players like Microsoft and Google, who provide scheduling features for almost free. Because it’s not hard for others to enter the market and getting new clients is expensive, Calendly could risk it growing.

In a world where time is of the essence, Calendly stands out as a pioneer, reshaping the way we
approach meetings and appointments. As the global demand for streamlined scheduling solutions continues to rise, Calendly remains at the forefront, ushering in a new era of productivity and efficiency.

Startup Funding Summary

Country Delight, Gurugram-based dairy product manufacturer, has raised $20 Mn in Series E funding from Temasek and Venturi Partners – Read More

Captain Fresh, Bengaluru-based F&B startup, has raised $13 Mn in Series C funding from Nekkanti Sea Foods, Shakti Finvest, Ravi Shankar Pemmasani and Shibu Mathai – Read More

OneCard, Pune-based online payment solutions provider, has raised $11 Mn in a funding from Alteria Capital – Read More

Wiz Freight, Chennai-based supply chain startup, has raised $11 Mn in Series B funding from SBI Investments,Tiger Global, Nippon Express Fund, Axilor Technologies Fund, Arali Investments and Unikon Shipping Ventures – Read More

VRO Hospitality, Bengaluru-based fintech startup, has raised $10 Mn in a funding from Axis Bank, Gruhas, NB Ventures, Cred founder Kunal Shah, and Mouni Roy – Read More

M&A Snippets

Mumbai-based packaging and containers manufacturer Ansapack has acquired Mumbai-based paper packaging material producer Rich Printers for $14 Mn – Read More

Gurugram-based electronic manufacturer The Amber Group will acquire Hosur-based electronics manufacturer Ascent Circuits for an undisclosed amount – Read More

Closing 2023: Spotlight on this year’s India’s First Unicorn – Zepto

December 31, 2023

Aadit Palicha and Kaivalya Vohra, childhood friends aged 19, founded Zepto, which specializes in ultra-fast grocery delivery, collaborating with 86+ dark store owners in 13 areas in 2021, facilitating over a million deliveries. The company utilizes a network of ‘cloud shops’ or micro-warehouses for prompt order fulfillment.

Zepto’s success is attributed to its ability to consistently deliver a wide range of products within ten minutes, fostering rapid growth and strong customer loyalty. Operating in multiple cities with a 1000+ workforce, Zepto offers 5000+ products, including fresh produce and daily essentials. Leveraging advanced technology and optimized delivery centers, Zepto leads the Indian grocery delivery sector, capitalizing on the surging demand for swift delivery services.

The Indian online grocery market attained a value of $6.8 billion in 2022. Looking ahead, the market is anticipated to experience substantial growth and is projected to reach $37.0 billion by 2028. This growth trajectory indicates a remarkable compound annual growth rate (CAGR) of 31.3% during the period from 2023 to 2028.

Despite Zepto’s impressive 200% month-over-month growth rate and a 78% monthly retention rate, the startup faced challenges in its inaugural fiscal year (FY22). While achieving commendable operational success with a total revenue of Rs 142.3 crore, Zepto also grappled with significant losses, totaling Rs 390.3 crore during the same period FY22, starting operations in April 2021, saw overall expenses reach Rs 532.7 crore.

However, in the subsequent fiscal year ending on March 31, 2023, Zepto’s net loss surged 3.35 times to Rs 1,272.4 crore—a substantial 226% increase from the previous fiscal year’s loss of Rs 390.3 crore. Despite these heightened losses, Zepto experienced an extraordinary 14.3-fold expansion in operational revenue, soaring from Rs 142.3 crore in FY22 to an impressive Rs 2,024.3 crore in FY23. This position highlights the dynamic trajectory and early operational challenges faced by Zepto.

Zepto has secured a total of $597.8 million in funding across seven rounds thus far. The most recent funding, a Series E round completed on November 8, 2023, contributed $31.3 million to Zepto’s. With a valuation of $900 million as of June 2023, the company achieved unicorn status in August 2023 by raising $200 million in the Series E round, elevating its valuation to $1.4 billion. Zepto’s initial seed funding in September 2020 was led by Contrary.

Quick-commerce faces challenges due to the high operational complexity and costs associated with maintaining multiple fulfillment centers and a vast inventory. Market acceptance in India is hindered by price sensitivity, with consumers preferring lower prices over super-fast deliveries. Regulatory hurdles, including issues with FDI norms and data privacy, add to operational difficulties for companies like Zepto, while intense competition from well-established e-commerce giants with significant resources poses a notable threat in the quick-commerce space.

Zepto faces competition from Swiggy Instamart, Big Basket, and Blinkit in the fast-paced grocery delivery market. Another contender is Dunzo, utilizing its Xpress Mart dark shop network for 19-minute grocery deliveries in Bengaluru, directly competing with Zepto.

Operating in major Indian cities like Bengaluru, Mumbai, Delhi, Gurugram, Noida, Ghaziabad, Hyderabad, Chennai, Pune, and Kolkata, Zepto aims for profitability by 2024. To achieve this, the company plans an extensive expansion of its dark stores and delivery network. Zepto aspires to go public with an IPO targeted within the next two to three years. Positioned for sustained growth and led by key executives, the company aims to solidify its standing in the quick-commerce industry. Having been named the first unicorn of 2023, Zepto aims to surpass Rs 10,000 crore in total sales in the coming months, as stated by founders and CEO Aadit Palicha during a panel discussion at The Economic Times Startup Awards.

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Startup Funding Summary

InCred Finance, Mumbai-based fintech startup, has raised $60 Mn in Series D funding from Ranjan Pai, Ravi Pillai, Ram Nayak, Varanium Capital Advisors and other HNIs – Read More

Revfin, Delhi-based EV fintech platform, has raised $14 Mn in Series B funding from Omidyar Network – Read More

Oxyzen Express, Chennai-based logistics & supply chain startup, has raised $3 Mn in Seed funding from Tamil Nadu Emerging Sector Seed Fund and other HNIs – Read More

LivNSense, Bengaluru-based cleantech startup, has raised $3 Mn in a funding from Pavestone Technology Fund – Read More

Escrowpay, Gurugram-based fintech startup, has raised $600k in Series A funding from Bennett Coleman & Co Ltd, Tano India Opportunities Fund, Zenith Global Group, We Founder Circle, Angel List, JB Ventures, Inflection Point Ventures and Chhattisgarh Investments – Read More

M&A Snippets

Ahmedabad-based premium bottled water company CLEAR Premium Water has acquired Pune-based mineral water brand Kelzai Secrets for an undisclosed amount – Read More

Telecom Bill 2023: Paving the Way for Innovation, Security, and Connectivity in India

December 24, 2023

The Telecom industry in India stands as the second-largest globally, boasting a subscriber base of 1.179 billion, encompassing both wireless and wireline users. Contributing significantly to foreign direct investment (FDI), it holds the position of the fourth-largest sector, constituting 6% of the total FDI inflow. The nation’s tele-density, reflecting the number of telephones per 100 people, is currently at 84.69%, underscoring the widespread penetration of telecom services. Notably, the average monthly data consumption per wireless data subscriber has surged to 17.36 GB in March 2023, showcasing substantial growth from 61.66 MB in March 2014.

In a significant development, the Lok Sabha has approved the Telecommunications Bill, 2023, allowing the government to temporarily assume control of telecom services in the interest of national security. The bill, which passed by a voice vote after a brief debate, grants the government the authority to take possession of a telecom network during public emergencies or for public safety reasons. Notably, a substantial number of opposition members were absent from the House due to their suspension.

Communications Minister Ashwini Vaishnaw led a bill for structural reforms in the telecom sector, granting the government power to interrupt transmissions in public emergencies. The legislation allocates spectrum to satellite communication firms administratively, deviating from the auction method favored by Jio and Vodafone Idea. The bill lists 19 cases for administrative spectrum allocation, covering global mobile communication by satellites, long-distance services, mobile satellite services, VSAT, in-flight and maritime connectivity.

Upon parliamentary approval, telecom companies will require authorization rather than licenses to commence operations. The bill proposes a reduced penalty cap of Rs 5 crore on telecom operators, down from the previous Rs 50 crore per circle, with a maximum penalty of around Rs 1,100 crore on a telecom company.

The regulation of OTT apps has seen a significant change as they are now excluded from the definition of telecommunication services, providing a notable relief to communication service providers like WhatsApp and Telegram. The Ministry of Electronics and IT will oversee the regulation of OTT apps under the prospective Digital India Act, a domain not covered by the Telecom Bill.

The establishment of the Universal Service Obligation Fund, mandated by the 1885 Act to extend telecom services to underserved areas, is upheld by the bill. It not only maintains this provision but also rebrands the fund as Digital Bharat Nidhi, with an added provision allowing its utilization for research and development purposes.

Additional measures include protective provisions for telecom infrastructure, termination of spectrum assignment for unutilized spectrum, and mandatory issuance of SIMs after capturing verifiable biometric data to prevent misuse. The bill introduces a provision for a jail term of up to three years or a fine of up to Rs 50 lakh for obtaining SIM or other telecom resources through fraud. The legislation also strengthens the legal framework for addressing cybersecurity issues and includes a provision for a regulatory sandbox to encourage innovation in the sector.

Telecom service providers will need permission instead of licenses with parliamentary approval. The goal of the proposed penalty cap is to reduce these enterprises’ financial burden. The bill provides strict rules against the unauthorized purchase of SIM cards and increases safeguards for telecom infrastructure.

Government initiatives, such as the Prime Minister Wi-Fi Access Network Interface (PM-WANI), the Bharatnet project, the Production Linked Incentive (PLI) Scheme supporting the manufacturing of telecom and networking products, and the Bharat 6G Alliance, reflect a concerted effort to bolster the telecom sector.

The Telecommunications Bill 2023 signifies a significant step forward for the Indian telecom industry, introducing reforms, enhancing security measures, and aligning with the evolving digital landscape. The government’s initiatives further underscore its commitment to fostering innovation and connectivity across the nation.

Startup Funding Summary

Kitchens@, Bengaluru-based cloud kitchen startup, has raised $65 Mn in Series C funding from Finnest – Read More

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

BluSmart, Gurugram-based EV mobility startup, has raised $24 Mn in a funding from BP Ventures, Green Frontier Capital, Survam Partner, 9 Unicorns and other HNIs – Read More

Fasal, Bengaluru-based horticulture startup, has raised $12 Mn in Series A funding from TDK Ventures, British International Investment (BII), ITI Growth Opportunities Fund, Navam Capital, Aureolis Ventures, 3one4 Capital, Omnivore, Wavemaker Partners, Genting Ventures and The Yield Labs Asia Pacific – Read More

Farmley, Noida-based F&B brand, has raised $7 Mn in a funding from BC Jindal Group, DSG Consumer Partners, Omnivore and Alkemi Partners – Read More

M&A Snippets

Gurugram-based F&B brand Varun Beverages will acquire South Africa-based beverage company Bevco for $159 Mn – Read More

Hyderabad-based diagnostic chain Vijaya Diagnostic will acquire Pune-based diagnostic chain PH Diagnostic for $16 Mn – Read More

Gurugram-based energy storage and solutions provider Livguard acquired Noida-based battery swapping & IoT solution provider Emuron Tech for an undisclosed amount – Read More

USA-based consumer electronics firm BOSE acquired Delhi-based smart wearables brand Noise for an undisclosed amount – Read More

Udaan: Empowering B2B Growth Across India

December 17, 2023

Udaan, founded in 2016 by former Flipkart employees Amod Malviya, Sujeet Kumar, and Vaibhav Gupta, serves as a comprehensive B2B platform for business needs. It offers inclusive tech tools for brands, retailers, and manufacturers, promoting a level playing field for scaling and growth. With a focus on transparency and accessibility, Udaan provides national reach to 15 million manufacturers, 25–30 million retailers, and 10-12 million institutional businesses, encompassing over 60 million MSMEs in India. The platform boasts a vast network of 3 million registered users and 25,000–30,000 sellers across 900+ cities, spanning 12,000+ pin codes.

As of March 31, 2023, it had achieved noteworthy financial milestones, disclosing an impressive annual revenue of $699 million while successfully narrowing its losses to under $380 million. Positioned at the Series E stage, the company holds a robust valuation of $3.1 billion, underpinned by a substantial total funding of $1.84 billion garnered against equity across 17 funding rounds since its inception on November 23, 2016, as mentioned here.

Udaan’s strategic acumen is apparent not just in its financial achievements but also in its adept positioning among industry competitors like IndiaMART, Solv, and ProcMart. Udaan has established key partnerships with Danish Sportstyle and Reliance Retail, further enhancing its influence in the market. With a forward-thinking approach, Udaan has set ambitious goals, foreseeing an 80 percent year-over-year expansion in the next 3–5 years. This financial data underscores Udaan’s unwavering dedication to continuous growth, solidifying its strategic dominance in the dynamic B2B sector and affirming its status as a market leader.

Udaan encountered a significant challenge in determining the optimal product and market mix, a crucial factor for success in the B2B marketplace. Despite carving out a distinct niche, sustaining this lead remains a formidable task. Convincing retailers and persuading wholesalers to transition their businesses online posed an initial hurdle for Udaan. Additionally, the establishment of a robust supply chain network emerges as another substantial challenge for B2B e-commerce firms, underscoring the complexity faced by entities like Udaan in this domain.

Udaan has ambitious plans for the future, intending to leverage new capital to enhance its supply chain network across India. The company is also dedicated to fostering the growth of its marketplace in both established and emerging categories. The founders are confident that they are creating an improved platform for small businesses in India. With the recent fund-raise, Udaan’s business is fully funded and shall likely achieve its objective of becoming profitable in the next 12–18 months, as per various reports.

Startup Funding Summary

Udaan, Bengaluru-based e-commerce platform, has raised $340 Mn in Series E funding from M&G Plc, Lightspeed Venture Partners and DST Global – Read More

Vegrow, Bengaluru-based argitech startup, has raised $46 Mn in Series C funding from GIC, Prosus, Matrix Partners India, Elevation Capital and Lightspeed – Read More

PlasmaGen, Bengaluru-based biopharma company, has raised $27 Mn in funding from Artian Investments, Ashish Kacholia, Anurag Bagaria, Dushyant Patel and other HNIs – Read More

Exponent Energy, Bengaluru-based EV startup, has raised $26 Mn in Series B funding from Eight Roads Ventures, TDK Ventures, Lightspeed, YourNest VC, 3one4 Capital, AdvantEdge VC and Pawan Munjal’s family office – Read More

Snitch‎, Bengaluru-based apparel & fashion brand, has raised $13 Mn in Series A funding from SWC Global and IvyCap Ventures Advisors Private Limited – Read More

M&A Snippets

Chennai-based fintech startup M2P Fintech acquired Delhi-based data analytics and intelligence platform Goals101 for $30 Mn – Read More

New Delhi-based motor vehicle manufacturer Hero MotoCorp acquired additional 3% stake in Bengaluru-based EV manufacturer Ather Energy for $17 Mn – Read More

Ahmedabad-based pharmaceutical manufacturer Zenex Animal Health acquired Ghaziabad-based veterinary service provider Ayurvet for an undisclosed amount – Read More

Nurturing Green Innovation: The Remarkable Growth of Climate Tech in India

December 10, 2023

In recent years, India has witnessed a remarkable surge in the field of climate technology, addressing pressing environmental challenges while contributing to the global fight against climate change. This growth is fueled by a combination of factors, including the country’s commitment to sustainability, abundant natural resources, a burgeoning entrepreneurial ecosystem, and a policy environment conducive to innovation.

The global climate tech market was valued at $20.34 billion in 2023, an increase of 23 percent from 2022. The market is expected to experience considerable growth over the next decade to reach $183 billion in 2033, registering a CAGR of 24.5 percent during the forecast period of 2023 to 2033 as mentioned here. The growth in the climate tech market will be attributable to the increased awareness of the climate crisis and the growing urgency for providing solutions to mitigate climate change.

The market size for climate tech in India and Southeast Asia (SEA) in 2023 is $102 billion and is expected to grow to $350 billion by 2030, at a compound annual growth rate (CAGR) of about 20 percent.

According to “The Essence of Climate Tech for India and Southeast Asia” report conducted by venture capital firms Golden Gate Ventures and Venture East, Over $70 billion was invested in climate tech globally in 2022, with SEA and India accounting for approximately 7 percent of it. The funding, however, is expected to moderate to $36.2 billion globally in 2023, said in the report.

India, the world’s fourth-largest emitter of carbon emissions, faces a multitude of climate-related challenges, from rising temperatures to extreme weather events, mismanaged urban waste, and poor air quality. Recognizing the urgency, there has been a significant shift towards climate tech solutions that go beyond clean energy and encompass diverse sectors such as electric transportation, sustainable agriculture, waste management, and circular economies.

India currently ranks seventh in the Global Climate Risk Index and ninth in global climate tech venture capital funding. At the COP26 conference in 2021, India pledged to achieve net-zero carbon emissions by 2070, showcasing a commitment to transformative change. This ambitious target includes a 50% commitment to renewable power generation by 2030, non-fossil fuel energy capacity of 500 GW, and reductions in CO2 emissions and carbon intensity.

India’s rich endowment of natural resources provides a unique advantage in developing climate tech solutions. With vast arable land and substantial forest cover, nature-based projects focused on protecting and restoring ecosystems can contribute to carbon sequestration. Furthermore, India’s thriving entrepreneurial ecosystem, marked by exponential growth and a pool of talented founders, positions the country as a key player in the $3.1 trillion climate tech market opportunity by 2030.

In 2021, climate tech equity funding in India witnessed a significant 4x growth, reaching $7 billion, with total investments estimated at around $20 billion. The sectoral breakdown of investments highlights key areas of focus, including electric mobility, renewable energy, battery technology, and energy efficiency.

Electric Mobility: India, the fourth-largest automobile market globally, is witnessing a surge in electric vehicle manufacturing, charging infrastructure, and battery technology.

Renewable Energy: Proactive government policies and falling technology costs have led to substantial growth in utility-scale and rooftop solar solutions, supported by innovative startups in data analytics and site security.

Battery Technology: With a growing demand for clean energy storage, startups are innovating in alternative battery chemistries, leveraging machine learning for predictive maintenance.

Energy Efficiency: Startups are addressing inefficiencies in industrial manufacturing and commercial establishments through IoT sensors, promoting energy savings and sustainable practices.

Promising developments in technology, policy, and entrepreneurial innovation mark India’s journey toward becoming a climate leader as mentioned here.

Startup Funding Summary

Sarvam AI, Chennai-based generative AI startup, has raised $41 Mn in Series A funding from Lightspeed Venture, Peak XV Partners and Khosla Ventures – Read More

The Sleep Company, Mumbai-based mattress manufacturer, has raised $22 Mn in Series C funding from Premji Invest and Fireside Ventures – Read More

Biryani By Kilo, Gurgaon-based cloud kitchen startup, has raised $9 Mn in Series C funding from Alpha Wave Ventures, Vevek Ventures, DSP HMK Holdings, IvyCap Ventures, Incred Wealth and Clear Bridge Ventures – Read More

Digi Vriddhi, Bengaluru-based dairy fintech & marketplace platform, has raised $6 Mn in Series A funding from Omidyar Network India, Omnivore and InfoEdge Venture – Read More

Navadhan, Mumbai-based fintech startup, has raised $5 Mn in Pre-Series A funding from Prime Venture Partners, Gemba Capital and Varanium NexGen Fintech Fund – Read More

M&A Snippets

Kota-based edtech firm Allen Career Institute acquired Gurugram-based doubts solving platform Doubtnut for an undisclosed amount – Read More

Soaring Skies: India’s Dynamic Drone Landscape

December 3, 2023

Unmanned Aircraft Systems (UAS), or drones, have emerged as a cornerstone in India’s technological landscape, promising vast potential across defense, surveillance, internal security, disaster management, agriculture, healthcare, geo-spatial mapping, mining, infrastructure, as well as aerial photography and cinematography, among numerous other domains.

The annual sales turnover of the industry may grow from INR 60 Cr in 2020-21 to over INR 900 Cr in FY 2023-24 generating over 10,000 direct jobs. It is expected that the drone services industry (operations, logistics, data processing, traffic management etc.) will grow to over INR 30,000 Cr in the next 3 years, potentially employing over five lakh people as noted here. The proactive initiatives of the Indian government, such as the formation of a drone task force, the launch of a dedicated portal for drone operations, and the implementation of a Rs. 120 crore Production-Linked Incentive (PLI) scheme, emphasize a dedicated commitment to nurturing the growth of indigenous drone manufacturing as mentioned here.

Drones have found diverse applications in various industries. In agriculture, they enable efficient crop monitoring, mapping, and irrigation system analysis, offering farmers substantial cost and time savings. Environmental conservation benefits from drones through wildlife monitoring, habitat management, and flood assessments. In media coverage, drones provide affordable aerial shots for local journalists and small-scale media houses. For search and rescue operations, drones equipped with infrared sensors prove invaluable in locating individuals during disasters. Additionally, the burgeoning use of drones in e-commerce and healthcare delivery has gained prominence, especially underscored by the COVID-19 pandemic, emphasizing the need for drone-friendly policies in India.

In the drone market, fixed-wing drones dominate with a notable 44% market share, prized for their versatility in military and surveillance applications due to flexible flying time, range, and speed. Mapping and surveying applications take the spotlight, meeting varied needs from large-scale mapping to urban modeling and defense monitoring. Microdrones, weighing between 250 g and 2 kg, command a substantial market share, prized for quick navigation, high communication range operations, and their lightweight design.

India’s drone business is confronted with several obstacles. Lack of clear and consistent legislation creates regulatory uncertainty, which hinders the industry and affects privacy, flight clearance, and data protection. Industry growth is hampered by manufacturing obstacles such as a lack of domestic capacity and a reliance on imports for drone parts. Drone technology integration is not as common as it might be due to barriers to business adoption such cost, regulatory complexity, and awareness. Moreover, general technical growth is hampered by a lack of specific knowledge in programming, data analytics, and design. Drone technological advancement is further hindered by infrastructure deficiencies, which include inadequate landing pads, charging stations, and air traffic control systems as mentioned here

India has a vibrant drone startup ecosystem, featuring over 200 startups that significantly contribute to the sector’s dynamism. In 2022, the India Drone Market witnessed the dominance of the Indian startup  ideaForge, holding a substantial market share of over 47% and boasting more than 20 registered patents. Other notable contributors to the growth of the drone industry include companies such as Asteria Aerospace, Fly High, among many others.

India’s drone market is navigating a transformative journey characterized by growth, innovation, and a spectrum of opportunities. As the industry evolves, addressing regulatory nuances, bolstering manufacturing capabilities, and fostering business awareness will be pivotal in unleashing the full potential of drones across sectors.

Startup Funding Summary

EMotorad, Pune-based EV manufacturer, has raised $20 Mn in series B funding from Panthera Growth Partners, xto10x, Alteria Capital and Green Frontier Capital – Read More

PhiCommerce, Pune-based fintech startup, has raised $10 Mn in series A1 funding from BEENEXT and Opus Ventures – Read More

Innovist, Gurgaon-based beauty and personal care brand, has raised $7 Mn in series A funding from Amazon Smbhav Venture Fund, 72 Ventures, the family office of Nykaa, Accel India and Sauce.vc – Read More

GrowXCD, Chennai-based fintech startup, has raised $6 Mn in series A funding from Lok Capital – Read More

Zyla Health, Gurgaon-based healthtech startup, has raised $4 Mn in series A funding from Exfinity Venture Partners, Sony Innovation Fund, Venture Catalysts and Aureolis Ventures – Read More

M&A Snippets

Kolkata-based chemical manufacturer PCBLwill acquire Pune-based chemical manufacturer Aquapharm Chemicals for $456 Mn – Read More

Jaipur-based car search venture CarDekho will acquire Gurugram-based automotive service provider Revv for an undisclosed amount – Read More

India Quietly Makes Strides into a Billion-Dollar Shoe Box Industry

November 26, 2023

The footwear market is segmented into athletic and non-athletic categories. The athletic category includes sneakers, running shoes, and other sports shoes. Sneakers are characterized by their rubber soles, which make them suitable for running, jumping, and other physical activities. Sneakers are also popular for their versatility and are often worn as a fashion statement.

According to projections, the Sneakers segment in India is poised to generate a revenue of US$2.63 billion in 2023, displaying an annual growth rate of 6.18% (CAGR 2023-2028). On a global scale, the Sneakers segment is already commanding an impressive revenue of US$75.77 billion, with expectations of a consistent annual growth of 5.31% (CAGR 2023-2028).

The Sneaker market in India is propelled by a confluence of factors, including the surge in disposable income and purchasing power. The dynamic shift in consumer preferences and heightened fashion consciousness aligns with evolving urban lifestyles, driving a growing demand for comfortable and durable footwear. Furthermore, the expanding reach of e-commerce platforms and the prevalence of online shopping contribute significantly to the market’s momentum.

Challenges persist in the Indian sneaker industry, marked by the presence of counterfeit products and unorganized players. Additionally, intense competition from both domestic and international brands, coupled with fluctuating raw material prices and a lack of awareness about sustainable options, poses hurdles affecting profit margins and sustainable growth.

While the manufacturing and retail segment boasts notable players like Vegnon Veg and Supekicks, the reselling sector is experiencing a remarkable surge. Previously considered a niche market, sneaker reselling is now a thriving business both online and offline in India.

Startups like solesearch, mainstreet, and superkicks are achieving seven-figure revenues by actively participating in the reselling business. According to reports, the sneaker resale market was valued at around $6 billion globally in 2019, and projections estimate it to reach $30 billion by 2030.

In India, reselling sneakers is evolving from a hobby into a lucrative business model. The market is expected to jump to USD 5 billion by 2025, signaling a significant opportunity for entrepreneurs and enthusiasts alike.

Startup Funding Summary

Clove Dental, New Delhi-based global dental services, has raised $50 Mn in a funding from Qatar Investment Authority (QIA) – Read More

Scapia, Bengaluru-based travel fintech, has raised $23 Mn in series A funding from Matrix Partners India, Tanglin Venture Partners, Elevation Capital & 3STATE Ventures – Read More

Kiwi, Bangalore-based fintech startup, has raised $13 Mn in series A funding from Omidyar Network India, Nexus Venture Partners and Stellaris Venture Partners – Read More

Purple Style Labs, Mumbai-based apparel and fashion brand, has raised $8 Mn in series D funding from Pidilite Family Office, Singularity Growth Opportunities Fund I and other HNIs – Read More

Baaz Bikes, New Delhi-based EV mobility startup, has raised $8 Mn in series A funding from BIG Capital, Rakuten Capital, Kalaari Capital and 9Unicorns – Read More

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