Lawyers representing beleaguered edtech giant BYJU’S at the National Company Law Tribunal (NCLT) on Friday (December 22) reportedly assured that the company is in ‘good health’ and operating quite well.

During the hearing of the insolvency plea filed by the Board of Control for Cricket in India (BCCI) against BYJU’S, the NCLT inquired about the company’s current status.

Responding to the query, one of BYJU’S lawyers informed the tribunal that despite negative media coverage creating an impression of the company’s poor performance, it is, in fact, in good shape, Moneycontrol reported.

Acknowledging the case as ‘high profile,’ the NCLT emphasised the need for a prompt resolution and adjourned the hearing to January 17.

BYJU’S conveyed to the NCLT that it holds preliminary objections to BCCI’s plea and has been granted time to submit its formal response.

Earlier, the NCLT issued a notice to the decacorn in connection with a petition filed by the BCCI. In an order issued on November 28, the Bengaluru bench of the insolvency tribunal admitted BCCI’s petition that pertains to a dispute over the sponsorship rights of the Indian cricket team’s jerseys.

The tribunal, comprising Member (Technical) K Biswal and Member (Technical) Manoj Kumar Dubey, directed the edtech major to furnish a reply in connection with the case within two weeks (December 12) of the issuance of the order. It also allowed the cricket board to file a rejoinder, if any, in the matter by December 19.

The crux of the issue revolves around the plea filed by the BCCI, saying that BYJU’S owes dues amounting to INR 158 Cr as an operational creditor under section 9 of the Insolvency & Bankruptcy Code, 2016.

The current dispute dates back to 2019 when BYJU’S assumed the sponsorship of the Indian cricket team from OPPO, a commitment slated to last until March 2022. BYJU’S took over the sponsorship rights midway through OPPO’s tenure, continuing for two-and-a-half years.

The edtech startup later expressed interest in extending the sponsorship deal for an additional year until the end of 2023, with a reported cumulative sum of $55 Mn. However, the agreement fell apart in December 2022, as the company abruptly terminated its jersey sponsorship deal with the BCCI, citing financial and regulatory challenges.

Subsequently, it came to light that the BCCI had filed a case against BYJU’S. In response, the startup stated that it was engaged in discussions with the cricket board and aimed to resolve the matter expeditiously. The ongoing legal proceedings now centre around the BCCI’s claim of outstanding dues amounting to INR 158 Cr from BYJU’S.

The edtech decacorn has been grappling with a slew of issues, including paucity of funds, mass layoffs, mounting losses, top-level leadership exits and full-blown confrontation with its lenders over the repayment of its $1.2 Bn Term Loan B.

The post BCCI Vs BYJU’S: Edtech Giant’s Lawyers Assure NCLT Of ‘Good Health’ appeared first on Inc42 Media.

Agritech startup Fasal has raised Series A funding of INR 100 Cr ($12 Mn) led by TDK Ventures and British International Investment (BII).

The round also saw participation from ITI Growth Opportunities Fund, Navam Capital and Aureolis Ventures, along with existing investors including 3one4 Capital, Omnivore, Wavemaker Partners, Genting Ventures and The Yield Labs Asia Pacific.

Fasal will use the fresh capital to scale up and expand its B2B brand Fasal Fresh and branching out its operations both into India and Southeast Asia.

Besides, the proceeds will also be deployed for advanced research and development in its proprietary farm IoT-crop (Internet of Things) intelligence technology and the development of a carbon-negative horticulture value chain.

Founded by Shailendra Tiwari and Ananda Verma in 2018, Fasal is a precision horticulture platform that leverages AI, crop sciences and IOT to provide farm-level, crop-specific and crop-stage-specific intelligence to enable resource optimisation (water, pesticides, etc) and higher farm productivity while procuring the high quality, traceable produce for an end-to-end optimised value chain play.

Under its Fasal Fresh, it procures farm produce to secure the best market rates for farmers while optimising the supply chain play.

In 2021, the startup raised $4 Mn in its Pre-Series A funding round led by 3one4 Capital with participation from Omnivore and Wavemaker Partners.

“With this capital infusion, we plan to expand Fasal’s presence from 75,000 acres to 500,000 acres and enable our technology to deliver more to our farmers by providing them access to sustainable crop inputs, farm-level crop insurance, and working capital at lower interest rates. We will provide our buyers with sustainably grown, high quality, and traceable horticulture produce by further diversifying and strengthening our B2B brand ‘Fasal Fresh’,” said Tiwari.

“These funds will amplify our exclusive farm IoT-Crop intelligence technology, reshaping the farming landscape. We envision a data-driven behavioral change where each byte contributes to sculpting the future of agriculture. From predicting optimal harvest times to establishing a sustainable, traceable supply chain, this investment propels us into a future where science, technology, and agriculture seamlessly intertwine,” said Verma.

Fasal’s funding comes at a time when India’s agri space is witnetbssing a paradigm shift. Agriculture in the country has traditionally relied on outdated tools and is frequently susceptible to the unpredictability of weather conditions. However, agritech startups are revolutionising the landscape by leveraging various new-age technologies. As a result, the sector has been gaining a lot of traction from several investors for quite some time now.

For instance, last week, agritech startup Vegrow marked the final close of its Series C funding round with $46 Mn in a mix of primary and secondary infusions.

Prior to that, in September, another agritech startup Ergos raised $10 Mn via a mix of equity and debt financing in its Series B round.

The post Agritech Startup Fasal Raises $12 Mn To Fortify Its B2B Brand Fasal Fresh, R&D appeared first on Inc42 Media.

The Reserve Bank of India (RBI) has expanded the scope of card tokenisation for both debit and credit cards. Formerly limited to merchant applications or websites, individuals can now tokenise their cards via internet and mobile banking services.

In an effort to make digital payments more secure, safe and sound, RBI has now enabled card-on-file tokenisation (CoFT) through card issuing banks and institutions.

“It has been decided to enable card-on-file tokenisation directly through card-issuing banks/institutions also. This will provide cardholders with an additional choice to tokenise their cards for multiple merchant sites through a single process,” the RBI said in a circular.

The circular further said CoFT generation should be done only on explicit customer consent, and with Additional Factor of Authentication (AFA) validation.

“If the cardholder selects multiple merchants for which to tokenise his/her card, AFA validation may be combined for all these merchants,” the RBI said.

In addition, the card issuer will need to provide a complete list of merchants for whom it can provide tokenisation services.

Currently, the creation of a Card-on-File (CoF) token is exclusively possible through the merchant’s application or webpage. The storage of card details by merchants is referred to as CoF.

Earlier, it was a prevalent practice for merchants to retain card information, and in certain cases, users were often compelled to store their card details on the merchant’s app or webpage before completing a transaction. However, this practice of freely storing such sensitive information posed a significant threat to the security of users’ financial data.

To mitigate the risk of data breaches and leaks, RBI implemented the rule of tokenisation in September 2021. Under this regulation, rather than storing actual card details, a unique token, specially generated for each transaction, is securely saved with the merchant.

Eventually, the RBI rolled out CoFT from Oct 1, 2022. India has issued around 560 Mn card tokens since October last year, following the RBI’s directive to tokenise cards for ecommerce transactions, global payments operator Visa said in its new report.

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At least 84% of Indian chief executive officers (CEOs) are raising new capital or reallocating budgets to invest in generative artificial intelligence (gen AI), compared to 70% globally, says a new report.

As per the EY CEO Outlook Pulse 2023 survey of 50 Indian CEOs, this strategic move is aimed at gaining a competitive advantage over their rivals.

However, 80% of Indian firms also admit to the uncertainties associated with GenAI, posing challenges in rapidly devising and executing an AI strategy. Globally, this is 68%.

In the present scenario, 50% of organisations are either exploring or optimising AI implementation, facing a lack of a clear AI leadership structure.

Nevertheless, Indian CEOs (82%) express greater confidence than their global counterparts in believing that the incorporation of gen AI will enable them to enhance their leadership capabilities.

“Embracing an AI-first approach, businesses must build a robust foundation, focusing on platforms, people, and processes. However, strategic policy initiatives are crucial, necessitating increased government involvement, infrastructure support, data accessibility, and responsible AI governance,” said Mahesh Makhija, partner and national leader (Technology Consulting) at EY India.

In its ‘EY CEO Outlook Pulse 2023’, a quarterly survey of 50 Indian CEOs, EY said approximately 10% of CEOs affirm that GenAI is presently reshaping their business and operating models, demonstrating its immediate impact on organisations.

Additionally, a substantial 38% of CEOs expect to observe the influence of GenAI on their businesses within a relatively short timeframe of 1-2 years, including areas such as revenue growth and overall business operations.

Around 38% of respondents anticipate that the impact of GenAI on internal functions, research and development, and innovation will become evident within a somewhat longer timeframe of 3-5 years.

With the adoption of GenAI, the Indian government has started the process of preparing regulations for AI, said IT Secretary S Krishnan. “The government is already engaged in working on AI data and regulation. There are ongoing discussions within the government about AI data and its regulation,” he said.

With AI taking centre stage globally, the government is increasing its focus on the segment. Recently, Minister of State (MoS) for Information Technology Rajeev Chandrasekhar said that the centre is planning to fund and support AI startups in the country.

As per Inc42 data, India is home to more than 70 GenAI startups that have raised capital in excess of $440 Mn between 2019 and Q3 2023. The homegrown GenAI market is expected to grow to a market size of $17 Bn by 2030 from $1.1 Bn in 2023.

The post Nearly 84% Of Indian CEOs Are Raising & Reallocating Capital For Gen AI Spends appeared first on Inc42 Media.

Delhi-NCR-based electric mobility startup BluSmart has raised $24 Mn (INR 200 Cr) in a fresh equity funding round, which saw participation and over-subscription from its existing investors, founders and leadership team.

The startup will use the capital to build large-scale EV charging superhubs enabling the expansion of its electric ride-hailing service.

Founded in 2019, BluSmart offers EV ride-hailing services and charging infrastructure across Delhi NCR, Bengaluru and other megacities in India. The startup currently operates over 5,500 EVs and aims to increase the fleet size to 8,000 across Delhi-NCR and Bengaluru by next year.

The company claims to have completed more than 10 Mn rides so far, travelling more than 330 Mn zero-carbon Kms in the process.

BluSmart also owns and operates over 4,000 EV chargers, across its 34 EV charging superhubs.

“It has been a landmark year for BluSmart with great achievements like the historic milestone of completion of 10 million electric trips and key industry recognitions. We will continue to expand our brand promise of zero ride denials, on-time service and clean mobility to more geographies,” said Anmol Singh Jaggi, cofounder and CEO of BluSmart.

Tushar Garg, CEO of BluSmart Charging business said that EV Charging Infrastructure is the biggest bottleneck for large-scale EV adoption and is also the single largest opportunity.
“Cities have challenges with finite prime locations and a lack of adequate power load. BluSmart is building large EV charging superhubs at prime locations across Delhi-NCR and Bengaluru,” he added.

In April this year, BluSmart raised $42 Mn in a funding round. The startup counts Alteria Capital, BlackSoil, Stride Ventures, Mumbai Angels, BP Ventures and LetsVenture among its investors.

The startup competes with the likes of BOLT, Ather Energy, Cell Propulsion, CHARGE+ZONE and Chargeup in the electric mobility space.

Indian EV startups offer services such as sustainable mobility, energy infrastructure, commercial mobility and battery management system, among others, to the general masses and enterprises. Besides, they are also helping reduce carbon emissions and offering a cheaper alternative to fossil fuels. As a result, the space has been gaining a lot of traction from the investors.

The post BluSmart Nets $24 Mn In Fresh Funding To Build EV Charging Superhubs appeared first on Inc42 Media.

The Centre may release the administrative rules under the Digital Personal Data Protection (DPDP) Rules within two weeks and likely notify the final version of the Bill by the end of next month.

On Wednesday (December 20), executives from social media and internet intermediaries met with senior officials from the Ministry of Electronics and Information Technology. The discussions focused on crucial topics including child gating, the formulation of consent architecture, and the delineation of rights and obligations for data principals, ET reported.

After several years of waiting, India got its data protection law earlier this year. The DPDP Bill was passed in the Lok Sabha on August 7 and in the Rajya Sabha two days later. On August 11, President Droupadi Murmu finally granted her assent to the Bill to become an Act.

The DPDP Act directs setting up a Data Protection Board of India to ensure its implementation. In case of any personal data breach, the board will be responsible for looking into the matter, inquiring into the breach and imposing penalties.

The DPDP Act seeks to protect the privacy of Indian citizens. In case of any breach for misusing citizens’ data or failing to protect the digital data of individuals, the Act proposes a penalty of up to INR 250 Cr on entities.

The Act not only offers transparency to users regarding how corporations can utilise their data but also provides clear guidelines for companies, including startups, on how they should handle users’ personal data and obtain consent.

Earlier Inc42 reported that the government was looking at a phased implementation of the act. Minister of State for Electronics and IT Rajeev Chandrasekhar said that certain government entities, such as those at the panchayat level, micro, small, and medium enterprises (MSMEs), and early-stage startups, might be eligible for exemptions and won’t fall under the scope of the DPDP Act right away.

Meanwhile, the central government has also started the process of preparing regulations for artificial intelligence (AI) to support its growth, safeguard interests and encourage innovation in this evolving technology in India.

The post Government Likely To Unveil Personal Data Bill Rules In Two Weeks appeared first on Inc42 Media.

The year so far has been no less than a nightmare for gaming players in India. This is because the online gaming industry faced numerous challenges due to the increased regulatory scrutiny and a tightened tax noose on the real money gaming (RMG) segment.

While the Ministry of Electronics and Information Technology (MeitY) provided some clarity by notifying online gaming rules in the first half of the year, the sector was shaken when the GST council mandated a 28% GST.

The move even prompted gaming-focussed VC firm Lumikai to revise its gaming revenue projection for FY28 to $7.5 Bn from $8.6 Bn.

Amid regulatory challenges and taxation impacts faced by RMG firms, funding in the gaming space declined significantly from $576 Mn in 2022 to $209 Mn in 2023 until November, Inc42 data showed.

However, not everything is gloom and doom, even as the overall sentiment for RMG appears subdued.

Well, from predictions point of view, the year 2024 is anticipated to witness springtime for mid-core and casual gaming studios. Investors will be seen tilting towards these segments amid expectations of them becoming the primary growth drivers for gaming revenue in India next year.

Even though there are hopes of a stable 2024 on the horizon, investors are expected to remain cautious while approaching the sector. This caution will likely hurt gaming segments that are sulking due to the government’s tightened GST noose.

With precisely ten days remaining in 2023, let’s understand how experts see this industry going through a shift and the key predictions that will define the Indian online gaming sector in 2024.

Here Are The 8 Online Gaming Predictions For 2024

No Relief On Cards For RMG Players

As of now, industry experts fear that gaming startups may continue to bear the extra GST cost for the next 1-2 years to retain customers, affecting their topline by about 70-80%. Further, smaller startups with limited funds may face challenges in absorbing the extra costs and could be forced to shut down. Although many smaller RMG startups are considering consolidation, larger startups are presently not showing any interest in acquiring companies within the same segment.

“The tax structure will undoubtedly impact the profitability of RMG companies. Larger VC-funded startups are using their cash reserves to absorb these additional costs. No investments were made in RMG companies during the second half of the year, and I anticipate that new investments are not likely to come in either. It’s just a matter of time that larger startups begin to feel the impact as well,” Sudhir Kamath, chief operating officer of Nazara Technologies, said.

To survive in the current stressful situation, the RMG startups are looking at optimising costs, which will likely have an impact on their innovation in the upcoming year, Kamath added.

Meanwhile, according to a senior executive at an Indian gaming unicorn, larger startups are trying to push diversification such as introducing free-to-play games. However, none of these companies have been able to make significant developments yet.

For instance, Dream Game Studios, owned by Dream11 parent Dream Sports, launched its first mobile game in India and Pakistan in October. Moreover, these companies are also looking to decrease reliance on the Indian market and looking at international expansion. Recently, MPL said its revenue from international operations accounted for 38% of its operating revenue in FY23, up from 11% in FY22.

Casual & Mid-Core Gaming To Change The Game

At a time when investors are shying away from investing in the RMG segment, there is a growing interest in casual and mid-core gaming in India.

Casual games are a category of video games intended for a wide and diverse audience. They are designed to be easily accessible, user-friendly, and enjoyable for players of all skill levels. Some examples of casual games are Candy Crush, Clash of Clans, and puzzle games.

Meanwhile, mid-core games, somewhere between casual and hardcore genres, demand a higher level of player engagement with more complex mechanics and elements, requiring a dedicated time commitment. Free Fire and BGMI are two of the many examples.

While, on the one hand, the return of BGMI (Battlegrounds Mobile India) has reignited advertising interest in the gaming space, in-app purchases for casual games are experiencing growth on the other.

Players are increasingly willing to make in-app purchases for features like skipping wait times, advancing levels, and accelerating progression.

The ease and convenience introduced by UPI have played a significant role in making users more comfortable with in-game transactions.

“I am very bullish on both video gaming and esports. There’s better monetisation potential. We have seen that gamers are now more comfortable paying for in-app purchases and are gradually moving towards big-ticket purchases, thanks to UPI,” Nazara’s Kamath said.

Meanwhile, Ashwin Suresh, the founder of game streaming startup Loco has observed a noticeable willingness to experiment with new genres among gamers.

According to him, until the middle of last year, there was a strong inclination mostly towards shooter games and the battle royale format. “However, as we progressed into the year, we observed a significant uptake in the PC format and a surge in role-playing games and massively multiplayer online games,” Suresh said.

Imperative to mention that the gaming sector is undergoing a demographic shift as well, particularly with the increasing presence of gamers from non-metro cities and towns. Within this demographic, 60% are male and the remaining are female gamers.

Lately, Nazara Technologies is seen focussing on bringing out new games. For this, the listed gaming giant has partnered with four Indian game studios to publish five casual and mid-core games in India.

On an earlier occasion, CEO Nitish Mittersain told Inc42 that Nazara was looking to invest in gaming studios capable of producing top-tier games tailored for both the Indian and global markets.

User Engagement, Retention Rate To Attract Investments

Moving on, according to industry experts, gaming studios can expect to secure anywhere between $3 Mn and $7 Mn from VCs next year.

In the casual gaming segment, investors will likely focus on metrics such as engagement, retention rate, and time spent as they evaluate potential investment opportunities.

Talking about Lumikai’s investment thesis, Salone Sehgal, the general partner of the VC firm said, “We invest in pre-product studios with a focus quality of the team, their previous experience, and the 0-1 scale of their gaming journey. For the studios that have launched one or few games, we focus on engagement, early retention metrics at D-1, D-20, and D-30, along with the time spent on the platform. We also conduct thorough product checks and competitive benchmarking as part of their evaluation process.”

Meanwhile, early stage VC WEH Ventures plans to shift focus from pre-game studios to those that have already launched 2-3 games.

According to Rohit Krishna, partner, WEH Ventures, the overall progress in AI has significantly simplified and made content creation more affordable. Moreover, the availability of new tools will play a crucial role in game development. While many studios have been experimenting this year, they will be seen launching more games next year.

Investors To Remain Cautiously Optimistic About AAA Games

At a time when the future of casual and mid-core gaming studios appears to be bright, investor interest is a bit dim towards AAA gaming. This is because the Indian gaming market predominantly follows a freemium model, and there hasn’t been a significant evolution towards paid-premium games yet. Moreover, Indian studios have not yet successfully developed AAA games.

However, things could change for good as two or three AAA games are scheduled for launch next year. This development is likely to capture the attention of investors and potentially make them more eager to invest in AAA gaming studios.

But, it’s still early days for AAA and console game development in the Indian market as startups are yet to reach that stage of maturity that is needed for this space.

Talking about the maturity in the space, game development startups are taking charge of nurturing next-generation talent. However, this will not be enough for sustainable growth, as these players will have to solve the challenge of high operational costs to subdue the impact of the 28% GST whiplash on the industry.

The post 8 Online Gaming Predictions For 2024 appeared first on Inc42 Media.

“Returns on capital in India have sucked historically.” That’s how Tiger Global partner Scott Schleifer characterised the India experience for the hedge fund giant back in February. It may sound harsh, but that’s something a lot of Indian VC firms came to terms with, in 2023. 

There’s little doubt that 2023 has been one of the toughest years for Indian startup VCs and the investor ecosystem. The past 12 months have seen partner exits, venture capital firms pulling out of India, rebranding and separation of VC structures and new fund managers coming into the picture. 

If 2022 saw startups go through instability, then 2023 was all about churn in the investor ecosystem. Sequoia Capital India’s rebranding to Peak XV Partners and separation from the US entity was the biggest story in the first half, overshadowed by the exit of Omidyar Network from India. 

Between these two big developments, a slew of partner-level departures at the likes of Orios Venture Partners, Venture Highway, Lightbox, Rebright, Lightrock India and Together Fund made it a tough year for VCs in general. 

The slowdown in investments in the past nearly 24 months and the troubles in various portfolio companies — ranging from corporate governance issues to revenue slowdown — have together created a perfect storm for VCs and fund managers. 

The headwinds have not impacted India operations alone. Sequoia US partner Michael Moritz quit the firm in July this year after 38 years, and Prosus & Naspers CEO Bob Van Dijk also stepped down from the investment major. 

And where there are departures, there are also new partners and fund managers taking over. Marquee firms such as Peak XV, Fireside Ventures, Venture Highway, Matrix Partners and Blume Ventures are some of the VC firms that named new managing directors and partners this past year. 

These new fund managers not only have to turn around the India investment story but also lead their firms into 2024 where many expect the volatile market conditions to stabilise. 

But before we get to the outlook for the next year, it’s important to look back at 2023 and understand what makes it the year of VC rejigs. 

Churn At Indian VCs In 2023

Perhaps the most noticeable trend among VC firms this year has been a slew of partner exits for reasons ranging from increasing pressure from limited partners, governance issues in portfolios, revenue and business slowdown as well as internal tensions between partners and fund managers. 

Kushal Agrawal, partner and CFO of Lightrock India resigned, marking the latest departure in a series of exits at the firm. The primary reason for Agrawal’s departure reportedly stems from internal differences regarding the operational direction of the fund.

Most recently, SoftBank India saw significant exit as India operating partner Vikas Agnihotri exited the firm. Agnihotri’s exit comes after SoftBank sold a stake in PB Fintech and Zomato, completely exiting the latter.

This is also the reason cited for the break-up at the top of Lightbox, one of the most active venture capital firms in the country. Partners Siddharth Talwar, Prashant Mehta and Jeremy Wenokur are leaving the Mumbai-based VC. 

Lightbox cofounders Talwar and Sandeep Murthy are likely to separate the fund’s portfolio and part ways due to differing views on what strategies the firm should pursue. The departing trio is looking to set up a separate fund comprising some Lightbox portfolio companies.

In the case of Orios VP, another Mumbai-based VC firm, Rajeev Suri and Anup Jain stepped away. Reports claimed the duo were unhappy with the carry-sharing arrangements. 

Both Orios and Lightbox have seen key investments falter due to market changes and competitive dynamics. 

Orios wrote off its investment in GoMechanic after the company’s well-documented revenue misreported problem. Pharmeasy, another Orios portfolio company, has seen a major devaluation in the past year and has struggled to raise new funds.

Lightbox is dealing with problems at Dunzo, one of its earliest bets. Dunzo is caught in a severe cash crunch and is unable to pay salaries to employees or vendors. Once a hyperlocal sensation, Dunzo is now looking at a bleak and uncertain future.

“Investors didn’t realise the amount of risk and liability that they are subject to because they trusted a lot of founders. And in most cases, founders were not aware and perhaps not as competent as they needed to be,” Prime Venture Partners’ managing partner Sanjay Swamy told Inc42 in July.

LP Pressure Grows On Existing Funds

The split at Orios exposed one hidden facet of the VC game. While on paper, many fund managers may be partners, their share of the carry (profits from investments) and the performance bonuses vary.

Founding partners get the bulk of the carry, while managing partners and other partners get a smaller share. Discord between these two classes of decision makers can directly increase the risk profile of the firm for any limited partner.

As we have written in the past, many limited partners were unhappy with a slew of portfolio problems at many of the biggest VC firms in India. 

LPs typically evaluate the overall fund performance, so partners whose investments have not worked out can potentially hide behind managers and partners who have led the more profitable investments. 

Another facet exposed by the problems at VC firms is the influence of limited partners (typically larger institutional investors and high net-worth individuals). The LP-fund manager relationship goes both ways. 

When raising funds, partners are more likely to approach LPs who have backed them in the past. In other cases, LPs want partners to break away and start new funds that fit the current market thesis better. 

LP pressure has increased in the past year or so as new areas of focus have emerged. The emergence of generative AI and other next-gen segments has compelled many LPs to look at funds and firms that have built their thesis around these areas. Some VC partners have completely stepped away from investing.

Brij Singh Bhasin, general partner at the early-stage venture capital firm Rebright Partners, stepped down to launch Snow Mountain AI, a generative AI-focussed startup. And if experienced VCs are not immune to the allure of new opportunities that emerged in 2023, can LPs be far behind?

“Increasingly, the startup LP network has started to recognise that emerging fund managers are some of the biggest value creators in the market,” Ankur Pahwa, founder and managing partner of PeerCapital, told Inc42 earlier this year, pointing to how many early-stage VC funds have come up in the past year.

He added that LPs want to see fund managers with very clear guardrails in terms of their stage and sector focus. No longer are limited partners swayed by momentum or opportunistic investing, which was the case in 2021 when startup funding peaked. After that peak, LPs have rationalised their expectations and streamlined their focus on VC funds as an asset class. 

New Leaders Take The Helm

If partners left firms in pursuit of new opportunities, in other cases, VC firms rejigged their leadership to fortify themselves for the new market realities. 

Several seasoned executives were promoted to partner and cofounder roles at firms such as Peak XV, Fireside Ventures, Matrix Partners and others. 

Early stage consumer-focussed Fireside Venture promoted partners Kannan Sitaram, Vinay Singh, and Dipanjan Basu to cofounder positions, while Matrix Partners India elevated principals Aakash Kumar, Pranay Desai, and Sudipto Sannigrahi to the role of MDs. 

Soon after Sequoia Capital India’s rebranding to Peak XV Partners and separation from the US firm, the firm promoted Rohit Agarwal to the position of managing director. 

Priya Mohan took over from Venture Highway founder Samir Sood and was named as the managing partner. Venture Highway is currently raising its third fund, which is being led by Mohan and cofounder Neeraj Arora.

Most recently, Orios Venture Partners appointed Sukhmani Bedi as a partner after the departure of Suri and Jain. Bedi, a three-time startup founder, has been with the firm since March 2022 and was formerly handling portfolio management at Orios. 

The Need To Evolve: VC Outlook For 2024

It is not just VC firms that are rejigging their leadership. Even private equity firms such as TVS Capital Funds prepared themselves for the new realities of the market. The Chennai-based firm appointed Naveen Unni, a former McKinsey & Co exec, as the managing partner.  

Unni’s appointment coincides with the fact that TVS is preparing to see many of its bets mature into exits by mid to late 2024. Ola Electric has filed its pre-IPO prospectus, while another TVS portfolio company Digit Insurance is also on course for a public listing in 2024. 

In an interview with Inc42 earlier this year, TVS Capital’s Gopal Srinivasan mentioned how the firm’s core focus areas have evolved over the years. He hinted at the fact that other firms also need to grow and mature with the market. 

“Everything that’s happening in India, from the public digital infrastructure to regulatory push from the RBI and IRDAI is enabling digital businesses. When people are not afraid to go digital for financial services, it creates a huge market for businesses. And, of course, urbanisation in many parts of India is creating a lot of new behaviours,” Srinivasan said at the time. 

Despite the challenges of the past year and in light of the somewhat negative sentiment of firms such as Tiger Global, there is a streak of optimism too. Many fund managers and partners have told us throughout the year that these pains are temporary. 

For instance, Surya Mantha, managing partner at Capria Ventures (formerly Unitus Ventures), believes that the momentum is with India when you look at the global macroeconomic factors affecting China and the US. 

“Several factors underpin our view that India is ready to step up: the young population, the digital public infrastructure that not only enables hundreds of millions to participate in the country’s economic life but also enables business innovation, a large and growing consumer economy as well as relatively stable macroeconomic conditions,” Mantha told Inc42 in June this year.

This view is echoed by the likes of Bejul Somaia, partner at Lightspeed Ventures, who tweeted that the India story is just beginning, as well as Naganand Doraswamy, managing partner and founder of Ideaspring Capital. 

Even though Doraswamy agreed that historic returns have not been great, he believes this is a very early stage in the India story to be counting the chickens. 

[With inputs from Nikhil Subramaniam]

The post Not Easy Being A VC In 2023: Partner Exits, Fund Splits Hurt Investors appeared first on Inc42 Media.

Fintech unicorn BharatPe is looking to secure INR 500 Cr debt through unlisted non-convertible debentures (NCDs).

Although a final decision on the issue price is pending, the company plans to secure the funds in multiple tranches throughout the upcoming year, ET reported.

BharatPe’s board sanctioned the fundraising initiative last week. Additionally, the board also approved the appointment of Colin Bryant, chief operating officer (Private Equity) and general partner at the US-based hedge fund Coatue, as a director. Bryant is set to succeed Rahul Kishore, the previous nominee from Coatue who departed the fund in November.

Furthermore, the company elevated its General Counsel, Sumeet Singh, to the position of a whole-time director. Singh, who assumed roles at BharatPe in 2021, has been instrumental in overseeing corporate strategy, corporate affairs, and fundraising. In February of the current year, he was appointed as an additional executive director.

Peak XV-backed BharatPe last raised $370 Mn at a valuation of $2.9 Bn in 2021. Earlier in September, it was reported that BharatPe was in talks with existing investors to raise $100 Mn in a new round of funding.

Meanwhile, the fintech startup has claimed to have turned EBITDA positive in the month of October. The startup said that its annualised revenue has crossed INR 1,500 Cr in FY24, a 31% increase from FY23.

BharatPe’s lending vertical, in October alone, has facilitated loans exceeding INR 640 Cr for its merchants in partnership with its NBFC, demonstrating a 36% year-on-year jump as compared to FY22. The startup has facilitated loans worth INR 12,400 Cr since its foray into the lending business in late 2019.

The post BharatPe Looking To Raise INR 500 Cr Debt In The Upcoming Year appeared first on Inc42 Media.

The central government has started the process of preparing regulations for artificial intelligence (AI) to support its growth, safeguard interests and encourage innovation in this evolving technology in India, said IT Secretary S Krishnan.

Addressing a conference by the Centre for Development of Advanced Computing (C-DAC) in Kolkata on Tuesday (December 19), Krishnan said that the government has been working on the preparation of the regulations on AI and it is also evaluating global inputs, as per reports.

He also hinted that discussions are underway on whether a separate act of AI should be introduced or if regulations can be introduced in existing acts.

“The government is already engaged in working on AI data and regulation. There are ongoing discussions within the government about AI data and its regulation,” he said.

The government is considering a policy approach akin to the Digital Personal Data Protection (DPDP) Act. This strategy aims not only to safeguard data but also to foster development and innovation, avoiding any hindrance to the growth of emerging technology.

With AI taking centre stage globally, the government is increasing its focus on the segment. Recently, Minister of State (MoS) for Information Technology Rajeev Chandrasekhar said that the centre is planning to fund and support AI startups in the country.

Modelled on the lines of a similar framework for the semiconductor industry, Chandrasekhar said that funding and incentives will be rolled out to scale the burgeoning ecosystem.

The government will also deploy ‘financial resources’ to build foundational AI models, large language models (LLMs) and various use cases for the emerging technology.

Chandrasekhar added that the Centre would explore synergies between AI and semiconductor industries in areas such as the development of AI chips.

These discussions come at a time when generative AI (Gen AI) has become a buzzword among Indian entrepreneurs. This has given rise to many new Indian startups in the segment.

As per Inc42 data, India is home to more than 70 GenAI startups that have raised capital in excess of $440 Mn between 2019 and Q3 2023. The homegrown GenAI market is expected to grow to a market size of $17 Bn by 2030 from $1.1 Bn in 2023.

The post Govt Actively Working On AI Regulations: MeitY Secretary S Krishnan appeared first on Inc42 Media.

The investment landscape in the country is going through a shift never seen before, with more and more women founders and investors winning themselves a bigger share in the high-octane arena of the Indian startup space. 

Be it Swati Nangalia Mehra of Sixth Sense Ventures, who directly ventured into the world of investing, or the founders-turned-investors Ghazal Alagh and Vineeta Singh, many of these trailblazing women have made their mark in the homegrown startup ecosystem. This is notwithstanding other veterans such as Kiran Mazumdar Shaw and Rekha Menon who have already set examples for many in the past. 

Many of these women investors bring years of experience to the table and have today emerged as role models for the country’s youth. However, things were not the same a few years ago, the founder of She Capital Anisha Singh told Inc42.

“It was hard explaining to people that women are successful as entrepreneurs. Now that we have given mega returns to our investors, they’re excited… and understand that women are great business persons,” she added. 

As sharp as a knife, these new-age women investors have their eyes on the stars and feet on the ground, and they are charging through with great perseverance. With numerous successful exits, Indian women investors are creating templates that will be followed by many in the years to come. 

However, more importantly, women founders and investors possess something really important when it comes to building an enterprise and the world of investing.

“They will call a spade a spade and tell you things exactly as they are and not how they can be,” opines the cofounder and CFO of B2B building material marketplace OfBusiness Ruchi Kalra on what makes women great investors. 

We, at Inc42, have collated some of the names that are making waves in the startup investment world. These are the names of the women that aim to build an equitable world of tomorrow and are leaving no stone unturned in their quest.

If you are a women investor or want to nominate a women investor in the startup ecosystem, nominate us at editor@inc42.com. This is a running list, and we would love to add more women who are changing the investing landscape in the Indian startup ecosystem.

Note: This is not an exhaustive list or ranking of any kind. We have placed investors in alphabetical order. 

Here Are The 41 Women Investors Spearheading The Startup Investment Game In India

The investment landscape in the country is going through a shift never seen before with more and more women founders and investors winning themselves a bigger share in the high-octane arena of the Indian startup space.

Be it Swati Nangalia Mehra of Sixth Sense Ventures, who directly ventured into the world of investing, or the founders-turned-investors Ghazal Alagh and Vineeta Singh, many of these trailblazing women have made their mark in the homegrown startup ecosystem. This is notwithstanding other veterans such as Kiran Mazumdar Shaw and Rekha Menon who have already set examples for many in the past.

Many of these women investors bring years of experience to the table and have today emerged as role models for the country’s youth. However, things were not the same a few years ago, the founder of She Capital Anisha Singh told Inc42.

“It was hard explaining to people that women are successful as entrepreneurs. Now that we have given mega returns to our investors, they’re excited… and understand that women are great business persons,” she added.

As sharp as a knife, these new-age women investors have their eyes on the stars and feet on the ground, and they are charging through with great perseverance. With numerous successful exits, Indian women investors are creating templates that will be followed by many in the years to come.

However, more importantly, women founders and investors possess something really important when it comes to building an enterprise and the world of investing.

“They will call a spade a spade and tell you things exactly as they are and not how they can be,” opines the cofounder and CFO of B2B building material marketplace OfBusiness Ruchi Kalra on what makes women great investors.

We at Inc42, have collated some of the names that are making waves in the startup investment world. These are the names of the women who aim to build an equitable world of tomorrow and are leaving no stone unturned in their quest.

If you are a women investor or want to nominate a women investor in the startup ecosystem, nominate us at editor@inc42.com. This is a running list, and we would love to add more women who are changing the investing landscape in the Indian startup ecosystem.

Note: This is not an exhaustive list or ranking of any kind. We have placed investors in alphabetical order. 

Here Are The 41 Women Investors Spearheading The Startup Investment Game In India

1. Aarti Gupta

Aarti Gupta is the chief investment officer (CIO) of VC firm DBR Ventures. She heads the family office of DM Gupta and is the national head of the FICCI FLO Startup Cell.

In 2022 alone, she participated in investment deals for edtech startup SpeakIn and health tech startup Medyseva.

Earlier, she was a senior chairperson of the FICCI FLO Kanpur Chapter. She holds a PhD from IIT Kanpur and completed her postgraduation in economics from Northwestern University.

Aarti started her investment journey five years ago in 2017. So far, she has invested in four tech-driven startups operating in sectors such as health tech, edtech, foodtech and waste management.

Aarti believes in shoring up startup founders by helping them build their ventures and raise funds. Additionally, she is passionate about spreading financial literacy among professionals and homemakers.

2. Anisha Singh

Anisha Singh is the founder of women-focused VC firm She Capital. She founded the VC firm in 2020 to stimulate more women founders to enter India’s startup ecosystem. Some of the portfolio companies of the VC firm are Samosa Singh, Spark Studio, Elev8 Sportz, and Nova Nova.

Earlier, she founded ecommerce platform MyDala and also headed B2B startup Kinis Software as its CEO. She has also worked as a manager with Centra Software.

She is mostly seen talking about women’s empowerment and supporting women-focussed businesses and startups.

3. Alia Bhatt

Bollywood superstar Alia Bhatt has also donned the hat of an investor and has quite an interesting portfolio. One of her prominent investments was in beauty ecommerce marketplace Nykaa. Her investment grew more than 10X within months to INR 54 Cr when Nykaa got listed on the Indian bourses.

Bhatt’s portfolio also includes Mumbai-based personal styling platform Style Cracker and Kanpur-based biomaterial startup Phool.

Besides investing in other startups, Alia Bhatt has also set up her startup, Ed-a-Mamma, which operates in the kidswear category.

4. Anjali Bansal

Founder and chairperson of Avaana Capital Anjali Bansal has been actively investing in Indian startups. In 2022, Avaana funded four Indian startups — BambooBox, Gold Setu, and Groyyo, according to the Inc42 funding report.

In addition to the aforementioned startups, Anjali has invested in various startups – Delhivery, Urban Company, Darwinbox, and Nykaa, to name a few.

Currently, Bansal is a member of the ONDC steering committee. She is also on the board of various Indian companies such as Tata Power, Nestle India, and Piramal Enterprises. She has also worked with TPG Growth, Spencer Stuart, McKinsey, and Dena Bank

5. Anjali Sosale

Anjali Sosale, partner at Waterbridge Ventures, plays a pivotal role in shaping the success of early stage technology companies for the VC firm. With a special focus on consumer tech, ecommerce, and marketplaces, Sosale wants to enable the next wave of rural Indian internet users

She is an active investor in startups such as BigFatPhoenix, BimaKavach, BitClass, CBREX, Downtown Club, EloElo, and Yellow Metal. 

Waterbridge Ventures specialises in early-stage technology investments, providing $250K to $3 Mn to seed to Pre-Series A stage companies.

With a portfolio comprising 31 investments and collaborating with over 70 founders, Waterbridge takes a lead role in funding rounds and remains dedicated to supporting its portfolio companies throughout their growth journey, extending investments until Series C. 

6. Ankita Vashistha

Ankita Vashistha is the founder of Saha Fund and StrongHer Ventures, which backs female-led early-stage startups operating in the fintech, health tech, consumer tech, and Web 3.0 segments.

She is currently associated with multiple names such as MySpaces, Tholons Capital, NASSCOM,  Aureos Capital, and Abraaj Group. In her more than 10 years of professional journey, she has worked with tech ventures, private equity and VCs across the UK, the US, and Asia.

She is currently an active investor in Indian Angel Network. Her startup portfolio comprises startups such as Licious, Uniphore, Fitternity, LoveLocal, Zumata, and Insta Health.

She got her master’s degree from the Cranfield School of Management, Stanford University, and is an alumna of Ramaiah Institute of Technology.   

7. Archana Jahagirdar 

Archana Jahagirdar is the founder and managing partner of Rukam Capital, which invests in early-stage consumer products and services companies. 

Earlier, she headed companies like Textron, Angelworks and Espace Corporate and worked as a journalist with media organisations such as Business Standard, The Times of India, Zee News, Outlook, and India Today.

In the last few years, Archana has made more than 10 investments in startups like Yoho, Sleepy Owl Coffee, Anveya, Pilgrim, The Indus Valley, and GoDESi, among others. She completed her masters in English literature from St Stephen’s College.

8. Archana Priyadarshini

Archana Priyadarshini is a founder of Forward Slash Capital, which backs pre-seed to pre-Series A stage tech startups. In 2022, she invested in four startups – Broomees, CogniSaaS, Ekank Technologies, and Threado.

Over the years, she has participated in more than 25 startup deals, which include Metastable Materials, Exprto Live, and VAMA, to name a few.

At the moment, she is working as a general partner at PointOne Capital. She has also worked with companies such as Wells Fargo, Bootcamp Fitness Studio, IBM and CGEY. She has done her B.Tech in chemical engineering from IIT Kanpur

9. Bala C Deshpande

Bala C Deshpande is the founder partner of Megadelta Capital, which is an India-focussed mid-market growth fund. It typically invests $15 Mn to 25 Mn of growth equity in startups across sectors such as consumer, healthcare, and enterprise tech.

Megadelta Capital’s portfolio includes startups such as ecommerce unicorn Firstcry and health tech startup GOQII, among others.

Deshpande has nearly two decades of experience in investment advisory. She started her investing career with ICICI Venture in 2001. Later, she joined global VC firm NEA to set up their India platform where she headed the practice for ten years and helped NEA US in investing and backing startups in the mid-market space.

10. Bharati Jacob 

Bharati Jacob is the founder and managing partner of Seedfund, which invests in startups operating in diverse industries. She holds more than 24 years of experience in venture investing, marketing, and financial services.

Earlier, she worked with venture capital firm Infinity Venture Fund, investment bank Lazard, and aviation company Northwest Airlines.

An XLRI graduate, Jacob completed her MBA in marketing from the Wharton School, University of Pennsylvania.

11. Bhawna Bhatnagar 

Bhawna Bhatnagar is the cofounder of We Founder Circle (WFC), which invests in pre-seed to pre-series A-stage startups.

So far, she has invested in edtech OLL and F&B direct-to-consumer (D2C) startup Bored Beverages. Besides, she has also participated in six startup deals, including ParkMate, ParkMate, Quizy, and Commaful.

Prior to founding WFC, she worked with leading companies such as ByteDance, Cheetah Mobile and India Today.

After completing her bachelor’s in biochemistry from Delhi University in 2009, she went to the Indian Institute of Mass Communication and then earned her master’s degree in East Asian studies from Delhi University in 2014.

12. Debjani Ghosh 

Debjani Ghosh is currently the president of NASSCOM, an industry body representing the IT-BPM space. In her career of nearly three decades, she has worked with Intel Corporation and Yes Bank.

She has also been on Cisco’s India Advisory Board and served as an advisor to the FICCI S&T/Innovation Committee.

An MBA from S.P. Jain Institute of Management and Research, Debjani completed her graduation in political science from Osmania University. 

13. Deepika Padukone 

With five startups in her portfolio, Bollywood actor Deepika Padukone has recently worn the investor’s hat. She began her entrepreneurial journey by founding 82°E in 2021.

82°E, which is led by Padukone and Jigar Shah, got $7.5 Mn funding from DSG Consumer Partners and IDEO Ventures, along with multiple ultra-HNIs and Padukone’s family office, Ka Enterprises.

Ka Enterprises mainly backs consumer and consumer-tech companies across the globe. Its portfolio companies include Epigamia, Furlenco, Blu Smart, Bellatrix, Playshifu, Atomberg, Front Row, Mokobara, Supertails, and Nua. 

14. Ghazal Alagh

Mamaearth’s cofounder Ghazal Alagh is an active angel investor. In 2022, she backed 14 startups, including Humpy Farms, unScript AI, and Wishlink. Her startup portfolio also comprises companies like BlissClub, HumpyFarm and Uvi Health.

Before founding Mamaearth, she set up a fitness platform dietexpert.in, which shuttered its operations in 2013.  She has a BCA degree from Panjab University and holds certifications in visual arts from New York Academy

15. Ishani Chanana

Ishani Channa, partner investments at Sarcha Advisors, plays a pivotal role in managing family office investments and shaping capital allocation strategies across a diverse spectrum of assets, encompassing equity, debt, and alternative investment opportunities, with a significant focus on startups.

With investments in over 50 startups, including notable names like BluSmart, Josh Talks, STAGE, TrulyMadly, Prescinto, and The New Shop, and active participation in 20+ follow-on rounds, Ishani has been instrumental in nurturing entrepreneurial talent and fostering innovation.

In addition to her role at Sarcha Advisors, Chanana is an angel investor and has stakes in startups like JumpingMinds, BatX Energies, Yatrikart, Newmi, and Jobsgaar.

Prior to her current role, Ishani spent nearly four years at a hedge fund within Edelweiss Financial Services, where she honed her skills in buy-side research. Her work involved in-depth analysis of Indian-listed companies across diverse sectors, making valuable contributions to investment decisions within the fund.

Chanana holds a master’s degree in finance from Warwick Business School. Her investment track record includes successful exits and the ability to attract substantial investments from renowned investors to her portfolio companies, underscoring the prudence of her investment choices

16. Kanika Mayar 

Kanika Mayar is a partner of Vertex Ventures, which infuses money in seed to Series B-stage startups operating in Southeast Asia and India. Vertex’s portfolio companies include Grab, Patsnap, 17Live, Nium, FirstCry, Licious, AsianParent, Validus, and Warung Pintar, among others.

So far, Kanika has participated in four startup deals – Chatty Bao, Proactive For Her, Onato and Karkhana.io. She has also worked with leading companies such as IFC, TechnoServe, Goldman Sachs, and Ernst & Young.

A graduate of economics from the prestigious Lady Shree Ram College, Kanika completed her MBA from IIM Ahmedabad.

If you are a women investor or want to nominate a women investor in the startup ecosystem, nominate us at editor@inc42.com. This is a running list (and not a definitive one), and we would love to add more names who are changing the investing landscape in the Indian startup ecosystem. 

17. Namita Thapar

Namita Thapar is the executive director of India Business for Emcure, a pharmaceutical company. Thapar rose to fame after she joined the TV Show ‘Shark Tank India’ as one of the sharks.

So far, Thapar has participated in 11 startup deals, including Medulance, Ubreathe, Snitch, JhaJi Store, and TagZ Foods, among others.

She recently invested in ePharmacy when the startup bagged an investment of INR 2 Cr from multiple investors on Shark Tank India.

A chartered accountant from The Institute of Chartered Accountants of India, Namita holds an MBA degree from the Fuqua School of Business.   

18. Nandini Mansinghka

Nandini Mansinghka is the co-promoter and CEO at Mumbai Angels Network. She is also a founder investor at Digibooster, a content marketplace. Over the years, she has participated in more than 55 startup deals.

Founded in 2006, Mumbai Angels Network invests in early-stage startups in India. The network backs a slew of startups such as Adsparx, Adonmo, and BabyChakra, among others.

After her graduation (BCom) from the University of Calcutta, she completed her CFA from the Institute of Chartered Financial Analysts of India

19. Nruthya Madappa 

Nruthya Madappa assumed the role of partner at the early-stage VC firm 3one4 Capital earlier this year, where her primary responsibility is to enhance and fortify the firm’s portfolio.

Her journey at the venture capital firm began in 2020 when she joined as a principal and took charge of growth and capital development.

Demonstrating exceptional leadership and strategic acumen, she swiftly progressed to the position of director for the growth and capital vertical in the subsequent year.

20. Padmaja Ruparel

Padmaja Ruparel is one of the cofounders of the Indian Angel Network. She is also recognised as a key player in the Indian entrepreneurial ecosystem.

So far, she has participated in over 16 startup deals, which include names like Phool, Nivesh, Sirona Hygiene, goStops, and Dhruva Space, among others.

Last year, Indian Angel Network launched the IAN Alpha Fund, a SEBI-registered category II venture capital fund, worth INR 1,000 Cr.

So far, Indian Angel Network has invested in over 180 startups. Some of its portfolio companies are Zypp Electric, Crest, Huddle, Elctrifuel, Indium Finance, and Sirona Hyginene, among others.

Before starting her journey in the Indian startup ecosystem, Ruparel worked as the head of corporate communications at the UK-based Xansa.

21. Paula Mariwala

Paula Mariwala has been an early-stage investor for the past 15 years, and is a founding partner of Mumbai-based Aureolis Ventures, and the founder of Stanford Angels & Entrepreneurs India.

A Stanford alumna, Paula invests in early-stage startups and has been a key investor in Tapchief, Tread, Browntape, Thinklabs, RedBus, and Carwale, among others. In terms of sectors, she has been actively investing in segments like technology, sustainability, social impact, women empowerment, and education.

Paula is a member of the governing council of the Foundation for Innovation and Technology Transfer, IIT Delhi. She is also on the board of the Center for Human Rights and International Justice at Stanford University.

22. Pearl Agarwal

Pearl Agarwal is a prolific angel investor, with investments in 16 startups across sectors such as web3, fintech, edtech, gaming, and SaaS. Some of her notable investments include InFeedo, BluSmart Mobility, GroMo, Trell, and Redwing Labs.

Pearl is also the founder and MD of Delhi-based VC firm Eximius Ventures, which has its investments in startups such as Eka.Care, Jar, iTribe, Fego, Zorro, KalaGato, Oyela, Flux, Stan, Fleek, and Skydo.

Before becoming a full-time investor, Pearl worked at Merril Lynch. Pearl has also worked in the private equity sector with names like UTIMCO and Global Infrastructure Partners.

She is also the cofounder of DotReview, a platform where first-time investors can learn about startup funding.

23. Pooja Mehta

Pooja Mehta is the chief investment officer (CIO) at JITO Angel Network (JAN), a platform which connects angel investors with startups. She has expertise in evaluating startups, managing angel investment deals, and administering investment operations.

In the last two years, she has participated in 30 startup deals – KloudMate, Nexus Power, and NewsReach India.

Under her leadership, the JAN network has grown to over 350 members, with an investment of INR 100 Cr in various startups. Pooja is also the CIO at the JITO Incubation & Innovation Foundation.

A seasoned management professional with an MBA degree in finance, Pooja’s skillset ranges from business development, market research, and management to building business strategies and financial analysis

24. Priyanka Chopra

Priyanka Chopra, in her capacity as the COO and managing partner at CIIE.CO, assumes a pivotal role in the startup ecosystem, particularly focussing on digitisation, deeptech, climate tech, and financial inclusion.

With a dedicated commitment to empowering women entrepreneurs, she takes the lead in spearheading accelerator and incubation programmes.

These initiatives are designed to enhance skills, promote technology adoption, establish a robust online presence, drive customer engagement, and facilitate strategic partnerships.

Chopra has significantly influenced over 1,200 startups through various CIIE.CO programmes. Notable startups under her guidance include Razorpay, which turned into a unicorn in 2020.

25. Raakhe Kapoor Tandon

Raakhe Kapoor Tandon runs a family office – The Three Sisters: Institutional Office – with two of her sisters, Radha and Roshini Rana Kapoor. Raakhe, Radha and Roshini are the daughters of Rana Kapoor, the founder and MD of Yes Bank.

Under the family office, Raakhe founded ART Capital (India), an investment vehicle. The Three Sisters also has its investments in Delhi-based Awfis Space Solution, a real estate tech startup.

A Wharton alumna, Raakhe has founded two more ventures under ART Capital – ART Housing Finance (India) and Rural Agri Ventures India.

While ART Housing Finance provides long-term mortgage finance to retail customers, Rural Agri Ventures is an incubation/project development firm focussed on agritech startups. 

26. Rema Subramanian

Rema Subramanian is the co-founder and managing partner at Ankur Capital Fund, which backs early-stage startups in the agritech, fintech, health tech, and edtech segments.

She is currently working as an advisor consultant at DY Works. Earlier, she has worked with various Indian companies such as Dasra, ADTS, Element K India, Zee Interactive Learning, Ion Exchange, Datamatics and JK (Raymonds).

So far, Rema has participated in more than four startup investment deals. These names include SportVot, Josh Talks, MyCaptain, and Banyan Environmental Innovations.

A cost accountant from ICFAI, Rema has worked across education and IT/ITES, taking young companies from scratch to midsize ventures.

27. Ritu Verma

Ritu Verma, the cofounder of Ankur Capital, has backed several startups over the years. Some of the companies in her portfolio include names like CropIn, ERC, HealthSutra, Big Haat, Niramai, Tessol, Suma Agro, and Karma Healthcare.

In 2022, Verma took part in more than 13 startup investment deals, including D-Nome, IBISA, Vegrow, Wasabi, and Offgrid Energy Labs, among others.

At present, she is acting as a board observer in various Indian companies such as BigHaat India, String Bio, AgricxLab and Niramai. She is also on the board of Tessol, Health Sutra and CropIn.

Earlier, she worked with Truven, Philips and Unilever. She has a PhD in physics from the University of Pennsylvania and an MBA from INSEAD.

 28. Ruchi Kalra 

Ruchi Kalra helms the financial affairs at one of the few profitable new-age tech startups in the country. The CFO of B2B building material marketplace OfBusiness also helped found the startup back in 2016 and has not looked back since then.
An alumna of the prestigious Indian Institute of Technology Delhi, Kalra studied chemical engineering and then went on to work at Evalueserve for a couple of years. Afterwards, Kalra enrolled at the Indian School of Business in Hyderabad and completed her MBA.

Immediately after that, Kalra landed a job at McKinsey & Company and was entrusted with overseeing the insurance and retail banking sector. After nine years working at the consulting firm, Kalra took the plunge into the world of entrepreneurship and helped found OfBusiness.

Not stopping there, she has helped scale the business to new heights while she has also continued investing in multiple other businesses as an angel investor. She has so far invested in as many as 10 startups, as an angel, including seafood marketplace Captain Fresh, tyre marketplace TyrePlex, women-led lifestyle brand FableStreet, and B2B pharmacy marketplace Saveo, among others.

29. Seema Chaturvedi

Seema Chaturvedi, the Founder and Managing Partner of Achieving Women Equity (AWE) Funds, boasts an impressive 25-year track record in capital markets and financial management. Her primary mission is to drive gender equity in entrepreneurship.

A staunch advocate for entrepreneurship with a specific focus on women’s empowerment, Chaturvedi aims to empower 30 Mn women in India by 2030 through AWE Funds.

She also chairs TiE Global’s prominent initiative, the Project All India Roadshow for Women’s Economic Empowerment through Entrepreneurship (AIRSWEEE), securing funding from the US Department of State for six consecutive rounds.

Earlier this year, AWE Funds announced the first close of its maiden fund in India – the Achieving Women Entrepreneurs Early Growth Fund I – at $15 Mn. While promoting gender equity and climate action as a strategy, the fund aims to invest in scalable innovations in sectors such as climate tech, agritech, health tech, edtech and fintech.

30. Shagun Tiwary

Shagun Tiwary is a senior principal at Verlinvest, a Belgium-based investment firm. She is equipped with 12 years of work experience and has invested in companies across consumer and healthcare services such as Dr Lal PathLabs, Indira IVF, Epigamia, and Veeba.

Prior to joining Verlinvest, she worked at TA Associates and Nomura in Mumbai, where she focussed on growth equity investment and capital market transactions. She holds a master’s degree in economics from the Delhi School of Economics, University of Delhi.

Verlinvest is largely involved in late stage venture capital funding and mid-market private equity. Typically, the firm invests between $20 Mn and $200 Mn in startups, depending on the stage they are in.

31. Shanti Mohan 

Shanti Mohan is the founder of LetsVenture, a Bengaluru-based investor network that allows angels and HNIs to invest in startups. She has also founded trica, a platform that allows people to invest in startups and private equity.

In the last few years, she participated in more than 10 startup deals, which include Minko, Simply Services, Bimaplan, and Aulerth.

With LetsVenture, Shanti has invested in startups such as Absolute Foods, Agnikul, BharatX, CityMall, Dukaan, Trell, Yulu, Blusmart, and The ePlane Company, among others. Her personal portfolio comprises Siply, Minko, and Bimaplan.

Shanti is an active angel investor and part of the SEBI advisory AIF committee. She is also active with the RBI Council on startup funding. Further, Shanti is part of the startup committees of several states in India.

32. Shrishti Sahu

The founder of Hustle Hard Ventures, Shrishti Sahu, has been actively supporting Indian startups and has so far backed 30 startups, including Plum, Kutumb, Rupifi, Chingari, 10Club, Leap Club, Eeki Foods, GrowthSchool, Accacia, Descrypt, and Gold Setu, among others.

Sahu shared that she writes off cheques between INR 3 Lakh and INR 25 Lakh for homegrown startups.

Currently, she is a managing partner and angel investor at Swadharma Source Ventures. She has also worked with multiple companies like Emoha Eldercare, Facebook, Lumis Partners, Aqaya Source Foundation, and Aqaya. She completed her graduation from the University of Warwick.

33. Shruthi Cauvery Iyer

Caha Capital founder Shruthi Iyer is an active angel investor, who is overseeing two early-stage startups’ expansion strategies. She administers Wharton Alumni Angels (South Asia) and HBS Alumni Angels.

Earlier, she worked with international companies such as Agate Medical Investment LP, PT Perintius,  International Finance Corporation (IFC), and Eastern Energy Resources. She is one of the cofounders of the ecommerce startup Blend8.

She did her MBA from the Wharton School and completed her B.Tech from Visveswaraya Technological University, Karnataka.  

34. Sowmya Suryanarayanan

Sowmya heads the impact and ESG functions at Aavishkaar Capital – an impact fund manager that invests in impact enterprises across India, South and South East Asia and East Africa. She is responsible for delivering significant impact, gender and ESG value across Aavishkaar’s various impact funds and portfolio companies.

At Aavishkaar, Sowmya has helped invest in sectors such as agritech, financial inclusion, and essential services. Some of the portfolio companies of Aavishkaar Capital include Nalanda Learning Systems, GoBolt, Milk Mantra, and Seven Ocean, among others.

35. Surabhi Washishth

Surabhi Washishth, the founding partner of Paradigm Shift Capital, has been actively supporting the Indian startup ecosystem.

So far, she has investments in 20 startups, including Ixana, Zeda, Landeed, Praan, 10XAR, Samudai and Arcana Network. In her personal capacity, she writes cheques between $250K and $300K for startups.

At present, she is acting as a ‘Global Shaper’ with the World Economic Forum. She has also worked with multiple companies such as WeWork India, Headout, Target, AOL, and ING Life, among others. She has a B.Com degree from Christ University, Bengaluru. 

36. Swapna Gupta 

A prolific investor, Swapna Gupta is currently a partner at Avaana Capital, a climate-focused VC firm. Before joining Avaana Capital, Swapna spent more than seven years at Qualcomm Ventures, where she led India investments.

She is an investor and board observer in multiple Indian startups, including Locus, Shadowfax, Ninjacart, Zuddl, FabHotels, MoveInSync, Reverie, Stellapps, and attune, among others.

Swapna also launched Qualcomm Women Entrepreneurs India Network (Qwein), a networking, learning, and mentoring programme for deeptech, and early-stage female entrepreneurs in India.

Swapna has recently been recognised by GCV among the Top 50 emerging leaders in the corporate venture community. Surprisingly, she is the only Indian on the list. She is also part of the prestigious Global Kauffman fellows programme.

37. Swati Nangalia Mehra 

Swati Mehra’s tryst with investments began long ago. One of her first jobs was to oversee investment research in the consumer space. The job came in handy when she decided to take the plunge into the world of investing. 

In 2014, she helped cofound Sixth Sense Ventures, the country’s first domestic and consumer-focussed venture fund. Since then, the firm has invested in a host of new and emerging D2C brands that have created a niche for themselves.

Nangalia Mehra has helmed the venture fund, which has invested in a slew of emerging brands, including homegrown beer brand Bira91, men’s grooming and personal care brand Bombay Shaving Company, and gaming and entertainment platform Smaaash. She also has stakes in CarterX, Pariksha, and ProcMart. 

38. Tarana Lalwani

Tarana Lalwani is a founding partner of InnoVen Triple Blue Capital, which has backed multiple startups such as Zetwerk, Chaayos, Ather, slice, and Bounce.

As an angel investor, Lalwani bets on startups working in the consumer, consumertech, health tech, fintech, and SaaS sectors. She also holds expertise in pre-seed to Series D funding rounds via equity and debt instruments.

Presently, she is an advisor at Aureolis Ventures and a senior director at InnoVen Capital India. Earlier, she worked with companies like Anand Rathi Securities, Kae Capital, SeedFund, Edvance Learning, Webaroo, Radian Group, and Morgan Stanley.

She is also on the advisory board of Oscar Foundation and CII. Not only this, Tarana is currently part of the venture capital and private equity committee of IMAI (Internet and Mobile Association of India).

She holds an MBA degree from Columbia Business School and a bachelor’s degree from La Salle University. 

39. Vani Kola 

Vani Kola is the founder and managing director of the early-stage VC firm Kalaari Capital. She has led over 30 investments at Kalaari. Some of the prominent names include Dream11, Myntra, Cure.fit, and Snapdeal.

Vani is currently on the board of CXXO. She has also worked with Certus Software and RightWorks. She likes mentoring first-time entrepreneurs and ushering them into becoming seasoned business leaders. So far, she has participated in over 63 startup deals. Some of these names include Climbes, Bombay Play, Zocket, StanPlus and Zluri, among others.

After graduating from Osmania University, she completed her master’s degree from Arizona State University.

40. Varsha Tagare

Varsha Tagare is the managing director at Qualcomm Ventures where she manages a $150 Mn fund dedicated to India and cross-border digital enterprise investments.

Prior to joining Qualcomm Ventures, Tagare served as an investment director at Intel Capital, responsible for global equity investments in mobile technology.

At Qualcomm Ventures, she has led and managed investments in Capillary Technologies, Ideaforge, MapMyIndia, among others. 

41. Vineeta Singh

Widely popular for being featured on Shark Tank India, Vineeta Singh is the CEO and cofounder of beauty and personal care brand SUGAR Cosmetics. Singh is an alumna of the prestigious Indian Institute of Technology, Madras and the Indian Institute of Management, Ahmedabad.

Singh is a serial entrepreneur and the founder of FAB BAG, a beauty and grooming subscription startup. Since appearing on Shark Tank India, Singh has shot to fame and has invested in a slew of Indian startups featured on the show.

As an angel investor, Vineeta Singh has participated in multiple fundraisers. Some of her bets include Padcare Labs, JhaJi Store, Snitch, and Josh Talks, among others.

Note: The information has been collected from available public resources and websites.

If you are a women investor or want to nominate a women investor in the startup ecosystem, nominate us at editor@inc42.com. This is a running list (and not a definitive one), and we would love to add more names who are changing the investing landscape in the Indian startup ecosystem. 

Last updated on December 19, 2023 | The list has been updated to include three more women investors. 

The post Meet The 41 Women Torchbearers Of India’s Startup Investment Space appeared first on Inc42 Media.

Edtech unicorn Unacademy’s former chief operating officer (COO) Vivek Sinha has reportedly secured funding of $11 Mn (around INR 91 Cr) for his new edtech startup.

The round saw participation from Lightspeed Venture Partners, Matrix Partners, angel investors like Oyo group CEO and founder Ritesh Agarwal and Unacademy CEO and cofounder Gaurav Munjal, Moneycontrol reported.

Sinha’s new startup is likely to focus on the upskilling sector, providing support to the healthcare industry.

The parent entity was registered in September under the name Beyond Odds. However, the name of the company remains undisclosed.

The funding round is ongoing, with Sinha actively seeking more angel investors. Consequently, the final details of the deal may change.

Inc42 has reached out to Sinha, but he declined to confirm the news.

Sinha resigned from his position of COO at Unacademy in August .“After three incredible years at Unacademy, I have decided to take the next step in my career. Grateful for the opportunities, friendships, and memories I have gained. Thank you for believing in me and constantly pushing me to operate at (the) peak of my abilities Gaurav Munjal,” said Sinha at the time of his departure.

The edtech unicorn reported its maiden cash flow-positive month in June 2023. It is yet to file its financials for FY23, however, it posted a net loss of INR 2,848 Cr in FY22, up 85% year-on-year (YoY).

Recently, Munjal claimed that the edtech unicorn managed to reduce its cash burn by 60% in 2023.

Meanwhile, an NIT Jamshedpur and ISB alumnus Sinha joined Unacademy in August 2020 as the COO. In his role at the edtech unicorn, he managed the full-stack P&L of digital test prep, hybrid centres, K12 and jobs & skills verticals.

Earlier, Sinha had worked at OYO and Mobikwik. At OYO, Sinha managed an SBU (separate business unit) for the startup’s joint venture with Softbank managing luxury hotels in the country.

In 2023, the startup industry witnessed several senior-level departures, with many of these executives now venturing into launching new startups.

Last month it was reported that Swiggy’s senior vice president Karthik Gurumurthy would be departing the foodtech giant to launch his own startup called Convenio. The new platform will operate in the offline space and will mirror Swiggy.

Earlier this year, GVK’s Keshav Reddy and former director of engineering at foodtech giant Swiggy, Rajeev Ranjan, launched Equal, a digital platform for Indians to share IDs with one click.

The post Former Unacademy Executive Vivek Sinha Nets $11 Mn For His New Edtech Venture appeared first on Inc42 Media.

The government has reconstituted the National Startup Advisory Council (NSAC) with the nomination of 31 non-official members, which include Abhiraj Singh Bhal from Urban Company; Kunal Bahl, Snapdeal and Sanjeev Bikhchandani, Info Edge.

The list also includes Ramesh Byrapaneni, Endiya Partners; Prashanth Prakash, Accel; Rajan Anandan, Peak XV Partners and Nithin Kamath, Zerodha, among others.

In January 2020, the Department for Promotion of Industry and Internal Trade (DPIIT) constituted the council with the purpose of advising the government on initiatives essential for fostering innovation and supporting startups in the country.

The term of the non-official members of the council is for two years.

“Upon completion of two-year term of the NSAC, the central government has nominated the non-official members on the National Startup Advisory Council representing various stakeholders such as founders of successful startups, veterans who have grown and scaled companies in India, persons capable of representing the interest of investors into startups, persons capable of representing interests of incubators and accelerators, representatives of associations of stakeholders of startups and representatives of industry associations,” Ministry of Commerce & Industry, said.

The eighth NSAC meeting is slated for Tuesday (December 19) in New Delhi, which will be chaired by Union Minister Piyush Goyal.

The council meets on a regular basis to suggest measures such as fostering a culture of innovation among citizens and students in particular; and promote innovation in all sectors of the economy across the country, support creative and innovative ideas through incubation and research, among others.

The council is part of the government’s increasing focus on promoting startups for technological innovations, creating jobs and faster economic growth. The government aims to make India a $1 Tn digital economy by 2025.

Earlier this year, the DPIIT launched the first edition of the ‘National Incubator Capacity Building Program’, a hands-on training programme to help startup incubators grow sustainably, under the government’s ‘Startup India’ initiative.

India is currently home to more than 1.14 Lakh startups recognised by the DPIIT, as of October 2023. Capital to the tune of INR 13,832.91 was invested in as many as 718 startups via alternative investment funds (AIFs) under the Centre’s FFS scheme between 2018 and 2022.

The post National Startup Advisory Council Reconstituted, Rajan Anandan, Nithin Kamath, Prashanth Prakash Named Non-Official Members appeared first on Inc42 Media.

Bengaluru-based business-to-business (B2B) ecommerce unicorn Udaan has fired close to 120 employees, just within a week after scooping up $340 Mn in its Series E funding round.

Although, it could not be ascertained which verticals were impacted by the layoff, but as per Moneycontrol’s report, the downsizing has majorly affected staff across marketing, finance and operations.

Confirming the development to Inc42, an Udaan spokesperson said that the company is working towards providing all requisite support to the impacted employees, which includes medical insurance and compensation package.

“Over the last few years, we have made significant investments to build a solid and sustainable business. We believe in efficiency as a driver of profitable growth and are continuously making efforts to enhance efficiency, grow business sustainably and further improve customer experience,” the spokesperson said.

“We have already made significant progress in our journey towards building a profitable business and continue to make relevant interventions to our already proven business model, while remaining customer-centric and agile. However, these interventions have also resulted in some redundancies in the system,” the spokesperson added.

Founded by Vaibhav Gupta, Sujeet Kumar and Amod Malviya, Udaan enables supply chain and logistics operations focused on B2B trade. It claims to enable daily delivery across over 1,000 cities and 12,500 pin codes through udaanExpress. It counts the likes of Lightspeed, Microsoft and Tencent among its backers. 

Last Thursday, the company raised fresh capital led by UK-based savings and investment firm M&G Prudential, with participation from its existing investors Lightspeed Venture Partners and DST Global.

Udaan plans to use these funds to further strengthen customer experience, market penetration, and strategic vendor partnerships, and to reinforce long-term supply chain and credit capabilities.

Earlier, Udaan conducted operations with a nationwide scope but has recently opted for decentralisation. Each warehouse now houses multiple products spanning categories such as FMCG, Food, Lifestyle, etc, as per the report.

In the past, the FMCG team operated on a national level; however, the new approach involves organising operations on a cluster basis. This means that distinct teams will be assigned to different clusters, each responsible for overseeing all products within their designated cluster, regardless of categories.

In FY23, Udaan saw its operating revenue shrink by 43% to INR 5,609 Cr from INR 9,897.3 Cr in the previous fiscal year.

The post Udaan Fires 120 Employees Within A Week Of Raising $340 Mn appeared first on Inc42 Media.

Direct-to-consumer (D2C) snacking brand Farmley has raised $6.7 Mn (INR 55.6 Cr) in a Pre-Series B funding round led by BC Jindal Group, with participation from existing investors DSG Consumer Partners, Omnivore and Alkemi Partners.

The New Delhi-based D2C brand will deploy the fresh proceeds for product innovation, diversifying distribution channels and amplifying brand building.

Founded by Akash Sharma and Abhishek Agarwal in 2017, Farmley offers dry fruits and nuts in different flavours and snacking formats such as roasted peri peri makhanas, thai chilli cashews and date bites, among others.

It is available on all ecommerce and quick commerce channels like Amazon, Flipkart, Blinkit, Zepto, Instamart and Big Basket. It is also present in over 10,000 retail outlets across 50 Indian cities and aims to deepen its presence across offline retail touchpoints.

The startup has also onboarded former Indian cricket captain Rahul Dravid as its brand ambassador.
It claims to have crossed the annual recurring revenue (ARR) of INR 300 Cr, growing by over 400% for the past two years. It has also turned EBITDA positive.

“This new round of investment brings us a step closer to our mission of becoming a household brand and contributing to a healthier world. These funds will play a pivotal role in fuelling our product innovation efforts, in diversifying distribution channels and in amplifying the brand-building efforts,” Sharma said.

“With the increasing awareness about health and wellness, consumers are looking for options that not only taste good but also provide nutritional value. This fresh infusion of funds will allow us to take our brand to new heights and reach a wider audience of snack enthusiasts,” Agarwal said.

Earlier in 2022, Farmley raised $6 Mn in its Series A funding round led by DSG Consumer Partners and Alkemi Growth Capital.

India’s D2C market is likely to reach a size of $100 Bn by 2025. According to Inc42’s analysis, while the beauty and personal care (28.6%) segment tops the D2C market in India, it is closely followed by the food and beverages (F&B)industry at 27%. The F&B segment is expected to grow to $68 Bn by 2030.

The post D2C Snacking Brand Farmley Bags $6.7 Mn For Channel Expansion, Brand Building appeared first on Inc42 Media.

Just when the Indian startup ecosystem was poised to reach new heights, the year 2022 unfolded like a nightmare and with it unravelled a flurry of distasteful events.

While the likes of Trell, Zilingo and BharatPe made headlines in 2022 for all the wrong reasons, 2023 became the extension of what could not be accomplished a year ago in terms of setting wrong precedents. 

From the boardroom brawls of BharatPe, founders falling victim to deception at a startup forum, financial mismanagement and syphoning of funds to accusations that Shark Tank judges failed to uphold their promises, the year thus far has been rife with controversies, painting a less-than-ideal picture of the Indian startup landscape.

Now that we stand on the edge of 2023 to welcome 2024, let’s take you through this year’s top controversies and disputes that we wished had never happened to start with.

With that said, let’s get the ball rolling.

Revisiting Major Startup Controversies That Stirred Up A Storm In 2023

BYJU’S 2023: A Year Of Turmoils

In 2023, the edtech juggernaut, BYJU’S, found itself ensnared in a series of controversies. The year commenced with a saga of delayed financial reporting, prompting the departure of auditor Deloitte Haskins & Sells and the exit of three influential board members — MD of Peak XV Partners V Ravishankar, Russell Dreisenstock of Prosus and Chan Zuckerberg’s Vivian Wu. 

As the year unfolded, BYJU’S encountered an inquiry by the Enforcement Directorate (ED), alleging a staggering INR 9,000 Cr violation of FEMA rules, resulting in a show cause notice. 

The challenges intensified when the Board of Control for Cricket in India (BCCI) took BYJU’S to the National Company Law Tribunal (NCLT) over a dispute concerning sponsorship dues amounting to INR 158 Cr for the Indian cricket team’s jerseys.

In the midst of a difficult year, BYJU’S named Arjun Mohan as its India CEO. Close on the heels of him taking over the reins of the company, the edtech announced that it will have to let go of 4,000 employees. Not to mention, the edtech decacorn had already been laying off employees in small groups.

On December 6, it came to the fore that the startup had not submitted the PF of its staffers since August, even after deducting the same from their paycheques. BYJU’S made a similar folly last year too.  

Now, BYJU’S has scheduled an Annual General Meeting (AGM) on December 20, which is aimed at resolving a list of issues, including its much-awaited financial results for FY22. Although it has already posted an EBITDA loss of INR 2,253 Cr for FY22, much is still to be reported.

Under the pile of aforementioned troubles also lay the edtech’s legal tussle with its TLB investors, back-to-back valuation markdowns, several instances of misselling, and a likely sale of its subsidiary companies Great Learning and Epic by Byju Raveendran. 

As of now, the entire startup ecosystem seems to be closely keeping its eye on how the BYJU’S chapter will unfold in the upcoming year.

Financial Deception At GoMechanic & Mojocare 

In the early months of 2023, automobile after-sales startup GoMechanic, too, faced corporate governance crisis. Cofounder Amit Bhasin publicly admitted to committing “errors in judgement” regarding financial reporting while trying to pursue growth. 

The startup allegedly misled investors for years by showing fake numbers. GoMechanic was acquired by a consortium led by Lifelong Group, a majority shareholder in GoMechanic rival Servizzy for about INR 220 Cr. But major investors of GoMechanic, including Orios Venture Partners and Peak XV Partners, filed a joint complaint against the startup’s founders, leading to an FIR by the Delhi Police’s Economic Offences Wing. 

 In a similar story, healthtech startup Mojocare’sfounders, Ashwin Swaminathan and Rajat Gupta, too, confessed to cooking the books. 

This confession led to a change in leadership and eventual plans to shutter operations, returning capital to investors. 

India’s Very Own Fyre Festival For Startups 

Just three months into 2023, the patience of Indian founders was put to the test by the organisers of The World Startup Convention (WSC).

Promoted as India’s biggest funding festival by influencers such as Ankur Warikoo, Prafull Billore, Chetan Bhagat and Raj Shamani, the three-day event was supposed to host minister Nitin Gadkari, Tesla’s Elon Musk, Google’s Sundar Pichai, and the Crown Prince of Dubai as speakers from March 24 to March 26 in Greater Noida.

Much to everyone’s annoyance, the event proved to be a sham, triggering a clash as some attendees spent over INR 50 Lakh to become a sponsor of the event for the World Startup Convention.

While the organisers of the event, Luke Talwar and Arjun Chaudhary, denied any charges of cheating and duping the participants anywhere between INR 6,000 to INR 8,000 for a three-day pass, clashes between organisers and attendees led to police intervention at the venue.

Along with organisers Luke Talwar and Arjun Chaudhary, influencers like Ankur Warikoo and Chetan Bhagat were blamed for endorsing the event. 

At the time we had questioned — “Where is India’s influencer economy headed?” 

The  Broker Network Implosion 

In the middle of the year, 4B Networks, the third entrepreneurial stint of Housing.com founder Rahul Yadav, came into the headlines. The controversy started when its investor Info Edge initiated a forensic audit into the affairs of the proptech startup. 

As the investigation unfolded, from unsettled debts to multiple entities to an alleged illicit transfer of funds from Broker Network to two other companies associated with Rahul Yadav and his wife, Karishma Singh, several issues were revealed.

It turned out that the money from 4B Networks took a detour to Yadav’s holding company and then found its way to a company called Kult App, where Yadav’s wife played a big role. 

In November, Rahul Yadav was quite close to being put behind bars but had a close shave in an INR 50 Lakh cheque bounce case filed in May by an erstwhile Broker Network employee, Arun Singh Shekhawat. 

It must be noted that the Economic Offences Wing is also investigating two separate cases against Yadav, one of which is filed by Broker Network’s lead investor Info Edge, alleging an INR 288 Cr graft. In addition, employees of the company have also not been paid since September 2022.

Embroiled in multiple allegations of fraud, Yadav’s story once again shows how important it is for founders to have strong ethics in place.

The BharatPe-Ashneer Grover Brawl Intensified In 2023

The BharatPe-Ashneer Grover brawl continued to make headlines into 2023 as well. Topping the list of headlines was a criminal complaint against Grover, his wife Madhuri Jain Grover, and her family members, which turned into a full-blown FIR by Delhi Police’s Economic Offences Wing (EOW). 

Despite Grover’s consistent denial of allegations, a lookout circular led to the couple being stopped at the Delhi Airport. Alongside, the EOW’s probe allegedly uncovered payments to sham HR consultancies run by Madhuri Jain and her kin.

Already in the face of EOW questioning for allegedly syphoning funds from BharatPe, beleaguered former managing director Ashneer Grover landed himself in yet another legal soup just last month (November).

The fintech juggernaut filed a fresh case against its outspoken ex-MD in the Delhi High Court for publicly sharing the company’s confidential information on a social networking platform. The ex-MD had to apologise for the posts and was slapped with an INR 2 Lakh fine.

Mounting a multi-pronged legal offensive against the Grovers, BharatPe has initiated as many as 15 proceedings against the couple and their kin, including a civil suit for alleged embezzlement that seeks INR 88.67 Cr in damages from the duo.

The INR 200 Cr Wedding Aisle That Led To Mahadev Betting App Scam

In February 2023, the opulent INR 200 Cr wedding of Indian native Sourabh Chandrakar in Ras Al-Khaimah, the UAE, drew the attention of enforcement agencies. Hailing from his humble origins as a juice vendor in Chhattisgarh’s Bhilai, Chandrakar’s meteoric rise raised the eyebrows of many in the government as they began a full-scale investigation into his finances. 

Seven months later, the Enforcement Directorate unearthed the Mahadev app online betting scam, exposing Chandrakar and Ravi Uppal as its masterminds.  

In October, the ED filed a chargesheet, naming 14 persons, including Chandrakar and Uppal, before a PMLA court in Raipur, Chhattisgarh. The Mumbai Police later joined the probe, too, and booked 32 individuals during its investigation. 

Caught in between seem to be a clutch of prominent figures and Bollywood celebrities who have been interrogated and named in various chargesheets and complaints filed by both the police and the ED. 

Meanwhile, on December 23, it was reported that Uppal was detained in Dubai by the local police on the basis of a red notice issued by the Interpol at the behest of the enforcement directorate.

ZestMoney’s Saga Of Failed Acquisitions, Founder Troubles & Shut Down 

The journey of ZestMoney, once the BNPL poster child of India, came to an end after the management shocked its employees by asking them to stay at home from December 7.

The management had to pull the plug on the company after an internal funding round failed to materialise, as per sources. 

For the uninitiated, the cash-starved startup was fighting many battles — founders calling it quits, failed acquisition bids, regulatory hurdles and a severe slowdown in the core BNPL business. 

It is imperative to mention that ZestMoney once held its head high with a peak valuation of $455 Mn. However, soon the company fell into a debt trap due to growing NPAs, sub-par collections and a faulty business model. This was despite the company’s claim of catering to 17 Mn registered users. In FY22, ZestMoney’s losses bloated 3X YoY at INR 398.8 Cr due to a steep rise in expenses. 

Operating within a business model similar to BNPL players like LazyPay and Simpl, ZestMoney was sitting on an NPA rate exceeding 13%, way above the healthy BNPL loan default rate of 2-3%.

Earlier in the year, ZestMoney’s cofounders Lizzie Chapman, Priya Sharma, and Ashish Anantharaman stepped down. Following their exits, the new management took over and was in talks to raise funds but to no avail.

Did Sharks Ghost Founders? 

The popular TV show Shark Tank India has undeniably left a lasting impact on citizens, so much so that the show is one of the topics of discussion at the Indian dinner table.

However, the euphoria surrounding the show has been marred by allegations from young founders who have voiced concerns about the conduct of investors, aka ‘Sharks’. 

Many participants of Shark Tank India told Inc42 that the Sharks have deliberately delayed investments under various pretexts. The participants have also alleged that the Sharks are impolite in person and deride their business models even after promising investments.

Complicating matters further, as per the participants, is the absence of proper documentation of the funding commitments they get on-air, which makes it tough for them to seek legal recourse. Notably, verbal promises lack the legal weightage necessary for pursuing legal recourse.

In June, we were also told that Sony TV only assures of providing a platform, and there are no terms and conditions to protect our interest if judges renege on their pledge.

At the time, it also came to the fore that Sharks got defensive and reneged from their commitments after engaging in the due diligence processes of some of the show’s participants.

[Edited by Shishir Parasher & Vinaykumar Rai]

The post Disputes, Deception & Fibs: Revisiting Major Startup Controversies That Stirred Up A Storm In 2023 appeared first on Inc42 Media.

Mukesh Ambani’s Reliance Industries Ltd (RIL) and Walt Disney Co. are reportedly in the process of finalising a non-binding term sheet for the merger of their media and entertainment operations in India.

A newly-formed subsidiary of Reliance’s Viacom18 will reportedly absorb Disney’s Star India through a share swap deal in January, as per the discussions.

The talks are on to finalise a business plan that involves an immediate capital investment of approximately $1-1.5 Bn. The ultimate shareholding structure and valuation of the entity will be determined based on the cash infusion from both Reliance and Disney.

The board is anticipated to have equal representation from Reliance and Disney, with a minimum of two directors each. Bodhi Tree, led by Uday Shankar and holding the second-largest stake in Viacom18 after Reliance at 15.97%, is expected to secure a seat on the board. Additionally, the inclusion of at least two independent directors is under consideration.

Before finalising the term sheet, both parties are expected to conduct crucial meetings. Following this, an accelerated timeline is anticipated for announcing the merger, with a potential target date as early as the end of January.

Once the term sheet is agreed upon and confirmatory due diligence is completed, the official valuation process will commence. Independent valuers will be involved in determining the valuation of the merged entity.

Additionally, Disney is likely to grant a five-year exclusive subscription video-on-demand (SVOD) content license for Disney+ originals and its library content to the joint venture company.

As part of the agreement, there is expected to be a five-year lock-in period, with exceptions allowed only in the case of an IPO of the merged company. Distribution channels and access to Jio Platforms will also be made available to the joint venture on terms agreed upon by both parties. Furthermore, a list of competitors with which any engagement is prohibited will be established.

Disney acquired the entertainment assets of 21st Century Fox in 2019 for $71.3 Bn. Post the acquisition, Star India came under the aegis of Disney and Hotstar was rebranded as Disney+Hotstar.

At the time of acquisition, Star India was considered as one of Fox’s strongest businesses, and it was an important part of Disney’s plan to build its streaming business in India.

Disney+Hotstar has been struggling to retain its paid users. Banking on the love of cricket in India, the company saw its paid subscriber growth scale to a record 61.3 Mn at the end of the quarter ended September 2022. 

As JioCinema began streaming the IPL for free, Disney+ Hotstar saw subscribers leave in droves. Facing challenges in retaining paid subscribers currently, Disney+ Hotstar experienced a surge in paid user growth to a peak of 61.3 million by the end of the quarter in September 2022. However, the strategy of streaming IPL for free on JioCinema led to a significant exodus of subscribers from Disney+ Hotstar. As of July 2023, the paid user base plummeted to 40.4 Mn.

The streaming platform has been struggling to maintain its leadership position due to a combination of factors, including the absence of high-quality English content and limited variety in its offerings, contributing to the decline in subscriber numbers, while Reliance’s JioCinema is scaling up rapidly. 

Disney Star also undertook a massive internal reshuffle earlier this year. As per Disney Star, the changes will allow the company to streamline its revenue, marketing and operations functions.

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Naturohabit Private Ltd, which owns direct-to-consumer (D2C) beauty and wellness care brand Nat Habit, has raised $10.2 Mn (INR 85 Cr) as a part of its Series B funding round led by Bertelsmann India Investments.

The round also saw participation from existing investor Fireside Ventures, with Amazon India Fund, Mirabilis Investment Trust and Sharrp Ventures joining the cap table.

The New Delhi-based startup will use the fresh capital for research and development, product diversification, brand building, offline expansion and hiring talent.

Founded in 2019 by Swagatika Das and Gaurav Agarwal, Nat Habit offers organic skincare products such as hair oils, masks, scrubs and face creams.

The startup said that it will use around $2 Mn from the latest fundraise to facilitate exits to its early-stage backers, offering returns of 4.5-5 times their initial investment within a four-year period.

In April last year, Nat Habit raised $4 Mn in its Series A funding round led by Fireside Ventures.

The startup currently claims to have an annual recurring revenue (ARR) of INR 82 Cr and aims over 4X growth to INR 350 Cr ARR in the next two years.

India’s D2C market, which is likely to reach a size of $100 Bn by 2025, has grown exponentially in the last few years. Several factors including the Covid pandemic, higher internet penetration, growth of digital infrastructure and rise in the number of millennials, among others, have shored up the D2C brands. In fact, the space has been gaining traction from a lot of investors for the past few years.

For instance, last month, Innovist, the parent entity of D2C consumer brands Bare Anatomy and Chemist at Play, raised $7 Mn in its Series A funding round led by Amazon Smbhav Venture Fund.

Several other existing investors, including 72 Ventures, the family office of Nykaa founder Falguni Nayar and former KKR India head Sanjay Nayar, Accel India and Sauce.vc, also participated in the round.

Home to more than 190 Mn digital shoppers, India has the world’s third-largest online shopping base in the world. It is this burgeoning ecosystem that the new-age D2C brands aim to capitalise on, on the back of the growing appetite of Indian consumers for innovation and waning loyalty towards traditional players, as per Inc42’s report.

Of this, fashion and clothing startups have the highest potential and are expected to grow to $43.2 Bn by 2025, according to an Inc42 report.

Some of the emerging D2C brands including Mamaearth, CaratLane and Nua merely took a couple of years to reach INR 100 Cr revenue mark.

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Hector Beverages, the parent company of refreshing drinks maker Paper Boat, saw its net loss widen 71% to INR 90.6 Cr in the financial year 2022-23 (FY23) from INR 53 Cr in FY22 due to higher cash burn.

The startup’s bottom line took a hit despite its revenue from operations rising 56% to INR 504 Cr during the year under review from INR 324 Cr in FY22.

Founded in 2010 by former Coca-Cola executives Neeraj Kakkar and Neeraj Biyani, Paper Boat sells fruit-based drinks in Indian flavours such as aam panna (raw mango) and jaljeera (spicy, tangy lemonade). Besides, it also sells dry fruits and healthy snacks, including chikki and aam papad.

Biyani exited the company in December 2022 and has launched a new skincare brand Asaya.

Paper Boat primarily earns revenue from sales of its products. In FY23, it sold fruit juices worth INR 474.9 Cr and food items worth INR 28.7 Cr.

Including other income, Paper Boat’s total income rose 56% to INR 508.5 Cr during the year under review from INR 325.1 Cr in the previous fiscal year.

Where Did Paper Boat Spend?

In line with the growth in its top line, Paper Boat’s total expenses rose to INR 599.1 Cr in FY23 from INR 378.1 Cr in the previous fiscal year.

Material & Stock Cost: While purchase of stock-in-trade rose to INR 205.2 Cr in FY23 from INR 149.4 Cr in FY22, cost of material consumed climbed to INR 182.3 Cr from INR 93.6 Cr in the previous fiscal year.

Employee Costs: Employee benefit expenses rose 30% to INR 54.7 Cr in FY23 from INR 42 Cr in FY22. Employee costs comprise salaries, PF contribution, gratuity, among others.

Advertising Spend: The startup, which is known for its nostalgia-infused campaigns, spent INR 13.2 Cr on advertising and sales promotion in FY23, a jump of 11% from INR 11.9 Cr in FY22.

Hector Beverages counts the likes of Sofina Ventures, Catamaran Ventures, and A91 Emerging Fund among its backers. The startup last raised a funding of INR 400 Cr ($50.1 Mn) from Lathe Investment Pte Ltd, which is owned by Singapore-based sovereign fund GIC, in 2022.

Paper Boat faces competition from the likes of Lahori and Raw Pressery in the Indian food and beverage (F&B) market. It also competes against FMCG giants such as Dabur, ITC, Pepsico, and new-age startups such as Beyond Water, and Coolberg.

The country’s F&B industry has been expanding by leaps and bounds and is further estimated to become a $156.25 Bn market by 2026.

The post Paper Boat’s FY23 Loss Surges 71% To INR 90.6 Cr, Revenue Crosses INR 500 Cr Mark appeared first on Inc42 Media.

Retail giant Walmart said its digital payments subsidiary PhonePe has reached a total payment value (TPV) of $1.3 Tn, equating with some of the largest fintech firms in the US market.

“PhonePe is doing an amount of – the equivalent in their business is TPV, Total Payment Volume versus GMV in our business. They are doing roughly $1.3 Tn in Total Payment Volume. And that is at the same scale as the largest fintech players in the US. Like, to put that in context. That have market caps there, in some cases, north of $100 Bn,” John David Rainey, chief financial officer of Walmart said while speaking at Morgan Stanley Global Consumer and Retail Conference.

PhonePe was reportedly planning for an initial public offering (IPO) in 2024-2025. The fintech platform also secured an additional $200 Mn in primary capital from Walmart at a pre-money valuation of $12 Bn in March this year.

While Walmart also has ecommerce giant Flipkart in its portfolio, Rainey said both entities are contemplating a potential path towards an IPO or going public in the future.

“And as they inch towards that, you’ll likely see improvements in profitability as well. And so, part of the improvement in our P&L is the reduction of losses in their P&L as we consolidate, and both of them have executed very well and I have got a high degree of confidence in their ability to continue to do so,” he added further.

Earlier this year, Flipkart Group CEO Kalyan Krishnamurthy said that the company would look at multiple geographies, including India, for its public issue, said to be in the range of $60-70 Bn.

Flipkart India, the business-to-business (B2B) arm of Flipkart, saw its standalone net loss balloon over 42% to INR 4,845.7 Cr in the financial year 2022-23 (FY23) from INR 3,404.3 Cr in the previous fiscal year. The company’s B2B arm saw its operating revenue increase a mere 9.7% to INR 55,923.9 Cr.

Meanwhile, PhonePe recorded a revenue of INR 2,914 Cr in the financial year ended March 31, 2023, an increase of almost 77% from INR 1,646 Cr in FY22. The startup, in a statement, attributed the increase in revenue to growth in money transfers, mobile recharges and bill payments.

The platform has been diversifying its product offerings through many new launches. It also launched the Indus Appstore Developer Platform for Android app developers to take on giants Apple and Google. PhonePe also announced its foray into the merchant lending space as well.

The post PhonePe Among Top Fintech Firms With $1.3 Tn Total Payment Value: Walmart CFO appeared first on Inc42 Media.

At the time when the real money gaming industry is reeling under the impact of the GST Council’s decision to hike the GST rate to 28%, gaming startup Gameskraft crossed the INR 1,000 Cr mark in consolidated net profit in the year ended March 31, 2023.

On the back of strong growth in its business, Gameskraft’s profit rose 14.2% to INR 1,061.9 Cr in the financial year 2022-23 (FY23) from INR 930.4 Cr in FY22.

Founded in 2017 by Prithvi Raj Singh, Deepak Singh, Rajkumar Taneja, and Sindhu Devi Jha, GamesKraft operates real money gaming platforms such as RummyCulture, RummyPrime, Playship, Pocket52 and LudoCulture.

The startup primarily earns revenue from facilitation of gameplay in the form of commission or platform fees charged to the users as a fixed percentage of the amount they spend as entry fees.

Gameskraft’s revenue from operations jumped 24.8% to INR 2,662.5 Cr in FY23 from INR 2,133.1 Cr in FY22.

Including other income, total income rose xx% to INR 2,732.1 Cr from INR 2,153.2 Cr in FY22.

Where Did Gameskraft Spend?

Gameskraft’s total expenses soared 45.7% to INR 1,300.7 Cr in FY23 from INR 892.8 Cr in FY22.

Advertising and Marketing Expenses: The startup’s marketing expenses saw a sharp rise of 346% to INR 408.57 Cr in FY23 from INR 91.51 Cr in FY22, accounting for the biggest portion of the total expenditure. Its business promotion cost also rose 96% to INR 208.1 Cr in FY23 from INR 106.4 Cr in the previous fiscal year.

It must be noted that the costs incurred by the company towards free games and contribution towards player prize money in case of tournament are recorded as an expense and reported as part of advertisement, promotional and marketing expenses.

Employee Cost: Employee benefit expenses continued to account for a significant share of the startup’s total expenditure. Employee costs increased 57% to INR 374.9 Cr from INR 208 Cr in FY22.

While the startup posted a rise in its top and bottom lines, the numbers pertain to the period before the GST Council’s decision to hike GST for real money gaming. Following the GST Council’s decision, Gameskraft decided to discontinue its fantasy offering, Gamezy Fantasy.

GamesKraft is also among the gaming majors that received GST notices from the government. In September, the Supreme Court stayed Karnataka High Court’s judgment, which quashed a goods and services tax (GST) notice against Gameskraft for alleged tax evasion to the tune of INR 21,000 Cr.

The post Amid Tax Woes, Gameskraft’s FY23 Profit Jumps 14% To Cross INR 1,000 Cr Mark appeared first on Inc42 Media.

Tech giant Google has shortlisted 20 artificial intelligence (AI)-first startups in the seed to Series A stage for the eighth batch of its startup accelerator in India.

“These startups represent cutting-edge AI innovation in India, tackling diverse challenges, including discovering antibodies, detecting identity fraud, helping small and medium-sized businesses (SMBs) to reach more customers, reducing developers’ repetitive work and focusing on building solutions that use AI to address systemic challenges,” Google said in a blog post on Friday (December 8).

The company aims to foster an environment that nurtures innovative startups and fuels the rapidly evolving AI landscape of the Indian startup ecosystem, it added.

The accelerator offers a three-month equity-free programme where selected startups get mentorship and support across areas such as artificial intelligence/machine learning, cloud, user experience, Android, web, product strategy and growth. It will also conduct workshops focused on product design, customer acquisition and leadership.

The current batch started this week with a week-long in-person boot camp, which includes training workshops and mentorship support around product, design, tech, growth and people.

What Are These 20 Startups Building?

Beatoven.ai

An AI-powered royalty-free background music creation platform for content creators

DhiWise

An AI-powered DevTool that enables developers to deliver production-ready source code for web and mobile apps 10x faster for all kinds of apps

Endimension

An end-to-end AI platform for radiology diagnosis

FilterPixel

An AI software that saves hours by automatically selecting the best photos from thousands of photos and then editing them automatically as per the style of the photographer

GalaxEye Space

A platform which is building next-generation imaging satellites using multiple sensors and generative AI for night/cloud-proof imaging

Gan.ai

A video personalisation platform that leverages generative AI to create personalised videos at scale from a single recording

Goodmeetings

A generative AI-driven video sales platform that helps salespeople sell 10X better on video

immunitoAI

A TechBio startup developing AI-generated novel antibody therapeutics with pre-defined drug properties

Kalam

A personalised mentorship and discipline-facilitating learning ecosystem tapping AI to address the challenges of affordability and accessibility to quality education in India.

Keploy

An open-source TestGPT toolkit for automating integration testing, converting network calls to test cases and data mocks for APIs and enabling production incident replays

Mugafi

Reshaping entertainment through Ved, an AI copilot that empowers storytellers to effortlessly create captivating novels or scripts, transcending traditional storytelling boundaries

NeuroPixel.AI

A deep tech startup working in the intersection of generative AI and computer vision, primarily focused on fashion ecommerce

Onward Assist

A platform which helps improve cancer outcomes by assisting the cancer biopsy reporting process through an AI-based solution that assists cancer pathologists with accurate scoring, tumor detection and workflow software.

Pepper Content

A content marketing platform that helps companies scale content marketing through expert talent and generative AI

Prescinto

An AI-powered SaaS platform that regularly collects renewable energy plant (solar, wind, storage) data, applies ML/AI models to this data to identify causes for underperformance and suggests work orders to increase electricity generation from these renewable plants

Presentations.AI

An AI-powered platform that lets everyone effortlessly create stunning presentations fast

SpoofSense.ai

A startup which helps businesses detect identity fraud using computer vision

Wright Research

A startup which aims to redefine investment in India with AI-driven, personalized quantitative strategies, delivering exceptional performance and risk management through a user-friendly, transparent digital platform

Zocket

An AI-powered SaaS platform for SMBs to grow their business with high-performing digital ads

ZuAI

An AI self-study buddy for students

The post Google Picks 20 AI-First Startups For Its India Accelerator Programme appeared first on Inc42 Media.

HRtech unicorn Darwinbox’s consolidated net loss soared 2.4X to INR 158.25 Cr in the financial year 2022-23 (FY23) from INR 65.72 Cr in the previous fiscal year on higher cash burn.

The Microsoft-backed startup’s bottomline took a hit despite its operating revenue almost doubling to INR 224.04 Cr in FY23 from INR 116.73 Cr in FY22. 

Founded in 2015 by Chaitanya Peddi, Jayant Paleti and Rohit Chennamaneni, Darwinbox is a cloud-based HRtech startup that caters to companies’ HR needs across recruitment, onboarding, core transactions (leaves, attendance, directory), payroll, travel and people analytics, among others.

Being a SaaS provider, Darwinbox earns a majority of revenue from sale of services. The startup earned INR 177.95 Cr from subscription services in FY23.

Including other income, Darwinbox’s total revenue grew over 2X to INR 249.5 Cr during the under review from INR 121.21 Cr in FY22.

Where Did Darwinbox Spend?

The rise in the startup’s expenses outpaced the growth in its revenue during the year under review. Darwinbox’s total expenses soared 2.2X to INR 407.22 Cr in FY23 from INR 186.93 Cr in the previous fiscal year.

Employee Costs: Employee benefit expenses continued to account for the biggest portion of the startup’s total expenditure. Employee costs zoomed 2.1X to INR 222.31 Cr from INR 103.59 Cr in FY22. The sharp increase is an indication that the startup might have increased its headcount.

Cloud Hosting Expenses: Darwinbox’s cloud hosting expenses jumped 2.3X to INR 48.21 Cr in FY23 from 20.73 Cr in FY22. Software and technology cost also quadrupled to INR 16.66 Cr from INR 4.14 Cr in the previous fiscal year.

Advertising Expenses: Darwinbox’s advertising and promotional expenses grew 4.3X to INR 21.66 Cr in FY23 from INR 5.05 Cr in the previous year.

Backed by the likes of Peak XV Partners (formerly Sequoia India) and Lightspeed India,  Darwinbox entered the unicorn club in early 2022 after raising $72 Mn in a round led by Technology Crossover Ventures (TCV).

In FY23, Darwinbox bagged funding from Microsoft and State Bank of India.

Darwinbox was eyeing a public listing by 2025, its cofounder Chennamaneni said earlier, adding the startup was aiming to make its India operations profitable by 2023. 

The startup currently claims to serve over 800 organisations across over 115 countries and counts Adani, MatchMove, and Mahindra among its clients.

The post HRtech Unicorn Darwinbox’s FY23 Loss Surges 2.4X To INR 158 Cr appeared first on Inc42 Media.

Nithin and Nikhil Kamath-led stock broking platform Zerodha’s net profit rose 37% to INR 2,908.9 Cr in the financial year 2022-23 (FY23) from INR 2,120.3 Cr in the previous fiscal year as the business continued seeing strong growth. 

Zerodha, founded in 2010 by the Kamath brothers, is a bootstrapped discount brokerage that allows users to trade in stocks and invest in mutual funds. The Bengaluru-based invest tech startup generates revenue from brokerage sales, user onboarding collections, and the sale of its premium tech products such as Kite Connect API.

Its operating revenue grew 37% to INR 6,832.8 Cr in FY23 from INR 4,977.3 Cr in the previous year. Of this, fees and commission charges accounted for 84% at INR 5,727.2 Cr. In FY22, Zerodha earned INR 4,128.9 Cr from fees and commission charges. 

Including other income, the bootstrapped unicorn’s total income zoomed 38% to INR 6,877.1 Cr during the year under review from INR 4,993.6 Cr in the previous fiscal year. 

Where Did Zerodha Spend?

In line with the growth in its topline, Zerodha’s total expenses rose 38% to INR 2,992.7 Cr in FY23 from INR 2,165.1 Cr in the previous fiscal year. 

Fees And Commission Expenses: As a brokerage, fees and commission account for the largest chunk of expenses for Zerodha. In FY23, these expenses stood at INR 2,223.4 Cr, accounting for nearly 75% of the total expenses. This number stood at INR 1,581.1 Cr in FY22.

Employee Benefit Expenses: Zerodha’s employee costs shot up 36% to INR 623.2 Cr in FY23 from INR 459 Cr in FY22. Interestingly, the startup spent a whopping INR 235.8 Cr on ESOP expenses during the year under review as against INR 77.5 Cr in FY22.

On a unit economic basis, Zerodha earned INR 2.3 in operating revenue in FY23 for every rupee of expense.

Earlier, while disclosing some parts of the financial statements for FY23, Zerodha cofounder and CEO Nithin Kamath attributed the growing increase in futures and options trading for the growth in the startup’s topline and bottomline.

“There’s still phenomenal interest in the markets, especially in futures and options. This has been the primary reason for the increase in revenue and profitability over the last three years. We continued to see phenomenal growth even in FY 22/23. That said, the business has plateaued in terms of revenue and profitability this financial year until now,” Kamath said.

Zerodha competes against the likes of Groww and Upstox, which are helping millennials enter the stock market with a user-friendly app interface with easy one-tap creation of free demat accounts. 

Kamath claimed that Zerodha is the only broker in the country to charge an account opening fee of INR 200 and hinted that the company has no plans to change this.

Later, squashing all speculations about valuation, Kamath said that the startup has been valuing itself at INR 30,000 Cr, or about $3.6 Bn, for all buybacks.

Zerodha’s rival Groww also turned profitable in FY23. Billionbrains Garage Private Limited, the parent entity of Groww, reported a net profit of INR 448.7 Cr in FY23 as against a net loss of a whopping INR 239 Cr in the previous fiscal year. 

Meanwhile, Groww surpassed Zerodha in terms of active investors at the end of September 2023. As per the National Stock Exchange (NSE) data, Groww had 6.63 Mn active investors at the end of September 2023 as against Zerodha’s 6.48 Mn.

The post Zerodha Made INR 2.3 In Revenue For Every Rupee Spent In FY23 appeared first on Inc42 Media.