Tag: Newsletter

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

February 25, 2024

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

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

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

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

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

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

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

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

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

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

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

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

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

Reference: Nvidia | nasdaq | cnbctv18 | livemint

Startup Funding Summary

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

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

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

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

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

M&A Snippets

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

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

Navigating Regulatory Challenges: Paytm Payments Bank’s Compliance Journey

February 18, 2024

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

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

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

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

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

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

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

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

Reference: The Indian EXPRESS | India Today

Startup Funding Summary

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

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

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

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

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

M&A Snippets

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

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

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

February 11, 2024

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

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

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

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

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

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

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

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

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

Startup Funding Summary

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

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

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

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

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

M&A Snippets

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

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

Key Highlights of India’s Interim Budget 2024

February 4, 2024

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

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

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

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

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

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

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

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

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

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

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

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

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

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


Startup Funding Summary

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

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

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

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

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

M&A Snippets

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

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

Cars24 Nears $1 Billion in Sales for FY23

January 28, 2024

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

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

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

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

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

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

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

Startup Funding Summary

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

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

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

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

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

M&A Snippets

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

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

January 21, 2024

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

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

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

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

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

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

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

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

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

Startup Funding Summary

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

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

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

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

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

M&A Snippets

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

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

Astrotalk: Discovering the Spiritual Startup

January 14, 2024

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

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

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

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

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

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

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

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

Startup Funding Summary

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

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

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

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

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

M&A Snippets

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

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

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