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 Agriculture in the country has traditionally relied on outdated tools and is frequently susceptible to the unpredictability of weather conditions.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.

Coworking space provider Awfis, which counts Peak XV Partners (erstwhile Sequoia Capital India and Southeast Asia) as among marquee investors, has filed its draft red herring prospectus (DRHP) with the capital markets regulator Securities and Exchange Board of India (SEBI). 

Its IPO comprises a fresh issue of INR 160 Cr and an offer-for-sale component of up to 1 Cr shares. 

The OFS component includes comprising the offer for sale of up to 5.01 Mn equity shares by Peak XV, up to 4.94 equity shares by Bisque Limited, and up to 75,174 equity shares by Link Investment Trust.

The startup will utilise INR 52.5 Cr from the net proceeds towards setting up new coworking setups. The startup will open 15 new centers under the ‘Awfis’ format in Fiscal 2025, in Mumbai, Bengaluru, the National Capital Region of Delhi, Hyderabad, Pune, Chennai, Kolkata, Ahmedabad, Lucknow, Bhubaneswar and Jaipur. The startup has estimated that it will spend INR 3.5 Cr to open a centre. 

The rest of the net proceeds which amounts to INR 68 Cr will be utilised as a working capital.

Founded in 2015 by Amit Ramani, Awfis has evolved from just being a coworking network to a tech-enabled workspace solutions platform, catering to freelancers, startups, SMEs, large corporates, and MNCs. To date, the startup has raised nearly $90 Mn across multiple rounds. It directly competes against the likes of WeWork, 91Springboard, OYO’s Innov8, BHive, among others. 

As of June 30, 2023, the startup had 121 operational centres across 16 Indian cities, with a total of 70,242 operational seats. It also claims to have had 2,139 clients by the same time. 

ICICI Securities, Axis Capital, IIFL Securities and Emkay Global Financial Services are the book runners to the issue.

Awfis reported revenue of INR 545.28 Cr in FY23, compared to Rs 257.05 Cr a year ago. Its net loss declined slightly to INR 46.64 Cr in FY23. In the first three months of FY24, the coworking services provider reported an operating revenue of INR 187.7 Cr, while its loss stood at INR 8.56 Cr.

The post Peak XV-Backed Awfis Files DRHP, Plans To Raise INR 160 Cr Via Fresh Share Issue appeared first on Inc42 Media.

Cloud kitchen startup Kitchens@ has raised $65 Mn (INR 541 Cr) in its Series C funding from UK-based investment firm Finnest.

The startup will deploy the fresh funds to expand its hybrid model Dinerium. 

Dinerium, offering a blend of casual dining and brand indulgence, will be launched soon. With advanced booking and pre-ordering systems, it will streamline dining for minimal waiting.

Earlier this year, Kitchens@ acquired Swiggy Access Kitchen, expanding to six major cities and 45 locations, with a network of 700 kitchens.

Finnest, a BNP company, founded by Biswanath Patnaik and Arun Kar, has invested in various sectors such as renewable energy, EV-hydrogen automotive, sports and entertainment, smart cities, aerospace technologies, hotels and hospitality. 

“Anticipating a substantial business turnaround in the coming years, especially with strategic partnerships in place with major entities like Swiggy and Beenext,” said Patnaik. 

Junaiz Kizhakkayil (JK), founder & CEO of Kitchens@, elaborated on their restaurant roll-up plan, emphasising the wealth of brand equity present within the Indian market.

He said, “The establishment of these brands has been a laborious journey, with dedicated individuals investing their hard-earned resources, time, and unwavering commitment. Today, we witness several such brands with the potential not only to dominate the Indian market but also to make a significant impact on the global stage.”

Kitchens@ is currently operated and owned by Loyal Hospitality. It had raised $16.2 Mn in its Series B funding round in February of 2020. Later that year in May, the startup raised another $2.6 Mn in venture debt from Trifecta Capital.  

Founded in 2018 by Kizhakkayil, Bengaluru-based Kitchens@ began operations with initial seed capital from Zomato and then later bought back the shares from the delivery giant in 2019. 

The post Cloud Kitchen Startup Kitchens@ Bags $65 Mn To Streamline Its Dining Biz 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.

The post RBI Extends Card-On-File Tokenisation Scope To Include Card Issuing Banks appeared first on Inc42 Media.

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.

Streaming giant YouTube has begun rolling out its branded content platform, YouTube BrandConnect, in India.

The platform will be open to eligible creators and select advertisers in the country and will connect creators, brands, and agencies for direct collaboration. Through this, brands will be able to zero in on the ‘right mix and profile’ of creators while the latter will get access to a new discovery avenue. 

“… We have begun rolling out BrandConnect, YouTube’s branded content platform, to eligible creators and select advertisers in India. This will help brands execute their branded content campaigns more seamlessly by identifying the right mix and profile of creators to work with, while creators will have a new avenue to be discovered and earn more from their content,” said parent Google in a blog post. 

The streaming major also announced new features on YouTube including ‘Podcast shelves’ on the YouTube Music homepage to improve discoverability and increase engagement for creators. It also introduced new features on YouTube Studio to make it ‘easier’ for creators to publish podcasts.

The company also said that creator podcasts will now be available for offline, on-demand and background listening on YouTube Music in the country. This, the streaming major said, would enable podcasters on the platform to ‘earn more via ads and subscriptions.’

Citing a report by Oxford Economics, YouTube said that more than 7 Lakh creators and partners in India received some form of income from their presence on the platform. 

It also said that the number of channels that earned a majority of revenue from fan funding features (which include channel memberships and Super Chats during live streams) rose 10% year-on-year in December 2022 without disclosing the actual number.

Channel memberships include subscription plans offered by creators in lieu of exclusive content. On the other hand, super chats enable viewers to highlight their messages during a live stream for a specified duration.

This comes amid a host of creator-focussed offerings launched by YouTube in recent months. Earlier this year, it expanded eligibility for the YouTube Partner Program (YPP) and brought YouTube Shorts creators under the initiative. It also rolled out an ad revenue sharing feature for short form videos as competition began to mount from Meta-owned Instagram Reels. 

YouTube also recently announced upcoming creative tools on YouTube Shorts and is said to be testing new GenAI features that would allow users to create music tracks based on a text prompt or even a simple hummed tune. 

However, the platform has also come under the spotlight of the government to crack the whip on deepfakes and  misinformation. YouTube India’s senior executive, last month, dubbed deepfakes as being antithetical to its interests, saying that viewers, creators and advertisers want to steer clear of platforms that allow fake news or misinformation.

The company then also said that it was compliant with all local laws and was continuously actively engaging with the government on all emerging issues.

The post YouTube Launches Branded Content Platform In India To Connect Brands With Creators appeared first on Inc42 Media.

A consortium of 61 global digital companies and organisations, comprising Mozilla, Proton and Signal, has called the new Telecommunications Bill a grave threat to democracy and the internet.

In a letter written to the union information technology minister Ashwini Vaishnaw, the group urged the Centre to immediately rescind the Telecom Bill. 

This came on the same day as the Rajya Sabha gave its assent to the Bill, which aims to overhaul the archaic Indian Telegraph Act of 1885 and other allied legislations.

Training the guns at the Centre, the signatories termed the new Bill a major threat to fundamental rights and democracy in the country. The group claimed that the proposed legislation imperils encryption, amplifies unchecked powers of the government to impose internet shutdowns, and enhances surveillance.

“… We respectfully call on the government to withdraw the Telecommunications Bill, 2023, and initiate inclusive, sustained consultation on the new draft, to incorporate rights-respecting amendments to protect encryption, privacy and security, and unimpeded access to an open, secure, and free internet,” read the letter. 

Citing the ‘immeasurable impact’ of the Bill on fundamental rights and the Indian economy,  the signatories called the introduction of the legislation in the Parliament without further consultation as ‘alarming’.

The letter also claimed that the new version of the Bill fails to incorporate provisions that were criticised in the draft, adding that it introduces new changes that ‘deepen the damage’.

Flagging provisions in the Bill that, as per the letter, authorise the interception of messages and disclosure ‘in intelligible format’, the signatories said that Bill ‘threatens’ end-to-end encryption. 

It also claimed that any change in the encryption architecture to enable data access could result in vulnerabilities that could lead to indiscriminate surveillance. 

“Any notion suggesting that decryption/access abilities can be limited to select actors is wishful thinking. The inevitable ramification is weakening of online safety and cyber resilience overall, for individuals, businesses and governments,” added the letter. 

It also claimed that empowering the Centre to notify standards on encryption could create uncertainties around the ‘ability of service providers to offer strong encryption and develop privacy-respecting innovations’.

The biggest bone of contention appears to be the provisions of the Bill that, as per the companies and organisations, grant expansive surveillance and interception powers to the government without meaningful independent and judicial oversight. 

“Further, with requirements such as the one for telecommunication services to use “verifiable biometric based identification”, the Bill facilitates incursions on fundamental rights without any reasonable limitations and safeguards, against principles of necessity and proportionality,” added the letter. 

It also claimed that the new Bill ‘entrenches existing powers’ to suspend internet services without any checks and balances. 

The letter was also signed by names such as Internet Freedom Foundation (IFF), SFLC India, Digipub News India Foundation (which counts names such as The Wire, Scroll, The News Minute and Newsclick among its founding members) as well as individuals such as the Centre for Internet and Society’s Divyank Katira and Nikhil Pahwa of Medianama. 

The signatories are not alone in raising concerns over the new Bill. The tabling of the proposed rules in the Parliament sent alarm bells ringing at the offices of social media giant Meta. 

The Mark Zuckerberg-led company’s India policy head Shivnath Thukral reportedly raised concerns internally that the new Bill could bring OTT communication apps under its ambit. He also said that the Centre could, at a later date, choose to extend the proposed legislation to OTT services as well, according to a report by Moneycontrol.

While there is no specific term ‘OTT’ used in the Bill, many experts claim that the provisions in the legislation have broad definitions and allow the government to intercept messages, set standards of encryption and take control of telecom networks.

The new Bill classifies ‘message’ as a ‘sign, signal, writing, text, image, sound, video, data stream, intelligence or information sent through telecommunication’. This could bring OTT services, which are centred around text and media, under the purview of the proposed law. 

The post Signal, Mozilla, Proton Term Telecom Bill A Threat To The Internet & Democracy appeared first on Inc42 Media.

Update | December 21, 11:00 PM

Foodtech major has denied reports of making an offer of $2 Bn to acquire logistics startup Shiprocket.

In a filing with the bourses, the company ‘cautioned’ the investors against the incorrect reports floating in the market about any such move, adding that it has no plans for any acquisitions currently.

“We have noticed that there are certain news articles circulating in the mainstream media with the subject “Zomato offers to acquire Shiprocket for $2 billion”. We deny this statement and would like to caution investors against such incorrect news floating in the market. We remain focused on our existing businesses with no plans for any acquisition at this moment,” said Zomato in a filing with the BSE.

The company attributed the clarification to ‘abundant caution’ citing uncertainty that the reports may create in the market.

Original Story| December 21, 05:31 PM

Listed foodtech major Zomato has reportedly made an offer to acquire ecommerce logistics unicorn Shiprocket.

As per a Bloomberg report, Zomato’s offer values the SaaS logistics platform at about $2 Bn. Sources aware of the development told the publication that a final decision has not been made. Besides, Zomato could also opt against proceeding with a deal for the company, the report said.

Zomato and Shiprocket were not immediately available to comment on the development.

Shiprocket is an aggregator of third-party logistics companies and works with several courier partners, including Delhivery, FedEx, Aramex, Xpressbees, DTDC, and Shadowfax. Founded in 2017 by Vishesh Khurana, Akshay Gulati, Saahil Goel, and Gautam Kapoor, the startup had raised $185 Mn in its Series E round co-led by Zomato, Temasek, and Lightrock India. 

Later, in August 2022, the startup raised $33.5 Mn in a Series E2 funding round led by Lightrock India with participation from Temasek, Bertelsmann, Moore Strategic Ventures, PayPal, and others, which valued the company at $1.2 Bn.

In October this year, Inc42 exclusively reported that Shiprocket was in advanced talks to raise $10 Mn-$12 Mn from McKinsey & Company in a strategic funding round for business expansion.

Shiprocket reported a 3.6X widened net loss of INR 341 Cr in FY23, hurt by its multiple acquisitions. In fact, the startup blamed its two acquisitions – Omuni for INR 200 Cr and one of its rivals Pickrr for $200 Mn in FY23 – for the threefold increase in loss. 

Meanwhile, its operating revenue increased 78% year-on-year to INR 1,089 Cr in FY23.

On the other hand, after struggling for a year, Zomato has started witnessing a revival in its business. The foodtech major also attained profitability in Q1 FY24, which helped the company’s share performance breach the INR 125 level for the first time in almost two years. The company also posted a profit in the second quarter of FY24.

Shares of Zomato are currently trading at INR 127.55 on the BSE and have gained over 100% year to date.

The post [Update] Zomato Denies Report Of Shiprocket Acquisiton Bid appeared first on Inc42 Media.

General Atlantic-backed fintech giant PhonePe’s net loss crossed the INR 2,500 Cr mark in the financial year ended March 31, 2023. The Bengaluru-based decacorn’s consolidated net loss rose 39% to INR 2,795.3 Cr in the financial year 2022-23 (FY23) from INR 2,013.7 Cr in the previous fiscal year due to a sharp increase in its ESOP expenses.

PhonePe’s operating revenue surged an impressive 77% to INR 2,913.7 Cr during the year under review from INR 1,646.2 Cr in FY22. In comparison, the operating revenue of the startup’s archrival, Paytm, zoomed 61% to INR 7,990.3 Cr in FY23.

PhonePe primarily earns revenue through its payments and allied services. It earned INR 2,707.1 Cr from this revenue stream during the year under review as compared to INR 1,6301.4 Cr in the previous fiscal year.

Founded in December 2015 by Sameer Nigam, Rahul Chari, and Burzin Engineer, PhonePe offers financial services to users. It offers digital payments service, mutual funds and insurance products.

Earlier this year, PhonePe attributed the increase in its revenue in FY23 to growth in money transfers, mobile recharges and bill payments.

The Walmart-owned company also said that the growth in revenue was driven by the launch and scale-up of new products and businesses such as smart speakers, rent payments, and insurance distribution. PhonePe said its smart speaker deployment stood at 4.1 Mn as of  August 31, 2023. 

Meanwhile, its market share in the total payments value (TPV) for UPI stood at 50.54% in the month of March 2023. PhonePe competes against the likes of Paytm, Google Pay, and CRED in the UPI transactions category.

Including other income, PhonePe’s consolidated total income grew over 80% to INR 3,084.6 Cr in FY23 from INR 1,692.7 Cr in the previous fiscal year.

Where Did PhonePe Spend?

The digital payments giant’s total expenses shot up 59% to INR 5,886.3 Cr in FY23 from INR 3,705.6 Cr in FY22.

Employee Benefit Expenses Zoom: Employee costs accounted for the lion’s share of the total expenses of PhonePe. The startup spent INR 3,096 Cr on employees in FY23, an increase of 78% from INR 1,741 Cr in the previous fiscal year. Within this, ESOP expenses increased 73% to INR 2,057 Cr from INR 1,185.8 Cr in FY22.

Advertising Expenses Decline: The startup’s advertising cost dropped 23% to INR 671.3 Cr in FY23 from INR 866.2 Cr in the previous fiscal year.  

IT Costs Rise: Being a fintech company, PhonePe has to spend on IT infrastructure. In FY23, its IT expenses rose 54% to INR 216.3 Cr from INR 139.8 Cr a year ago. 

After raising nearly $1 Bn in 2023, PhonePe has been on an expansion spree, launching multiple new offerings, including separate apps for ecommerce (Pincode) and investment tech (Share.Market) and also its own apps store, Indus Appstore.

Earlier today, the startup also rolled out a new feature on the platform that will allow its users to manage their credit cards and pay bills and loans.

The post Walmart-Backed PhonePe’s Loss Crosses INR 2,500 Cr Mark In FY23 appeared first on Inc42 Media.

Walmart-backed ecommerce major Flipkart is reportedly looking to raise a fresh funding of $1 Bn, with the US retail giant committing $600 Mn.

This fresh infusion will likely value Flipkart at about 5-10% premium to its last valuation of $33 Bn, ET reported, citing sources.

Besides Walmart and other existing shareholders, the Bengaluru-based ecommerce major’s round will also see new investors joining the cap table, the report said.

Flipkart confirmed Walmart’s infusion of $600 Mn in the company but said that the rest is speculative. Walmart also informed about its fresh infusion in a regulatory filing.

Walmart acquired 77% stake in Flipkart in 2018 for $16 Bn, valuing the company at $22 Bn. After the separation of PhonePe from the group last year, Flipkart’s valuation stood at $33 Bn.

Recently, during the six months ended July 31, 2023, Walmart spent $3.5 Bn to acquire Flipkart shares from non-controlling stakeholders, including Tiger Global and Accel.

Flipkart also plays a major role in the US-based ecommerce giant’s earnings performance each quarter. Walmart said in its recent Q3 2023 earnings statement that its India operations were impacted due to the late arrival of the festive season, and as the Flipkart Big Billion Days sales shifted from Q3 last year to Q4 this year.

“The timing of Flipkart’s Big Billion Days pressured International sales growth, as the event moved from Q3 last year to Q4 last year. So we expect the timing to be a benefit to Q4’s growth rate for the segment,” Walmart had said.

Meanwhile, Flipkart continues to incur losses. Flipkart India, the B2B arm of the company, saw its standalone net loss widen over 42% year-on-year to INR 4,845.7 Cr in FY23 while its operating revenue increased 9.7% to INR 55,923.9 Cr.

In FY22, Flipkart Internet, the ecommerce giant’s marketplace arm, also reported widened losses.

The post Walmart To Inject $600 Mn Into Flipkart During A Billion Dollar Funding Round appeared first on Inc42 Media.

Edtech unicorn Unacademy has decided to stop putting non-performing employees on performance improvement plans (PIPs) and will instead provide a direct exit to such employees, sources told Inc42.

In a message sent on an internal communication channel, Unacademy CEO and cofounder Gaurav Munjal said, “We are putting a ban on PIP. We will not have PIP in the organisation moving forth.”

“If someone is not doing their job well then give feedback. If it happens repeatedly then it’s better to part ways,” Munjal added. 

Inc42 has seen the message sent by Munjal.

The CEO said that PIPs don’t lead to anything and just delay the decision. “Moving forth, we will have a Direct Exit with notice period for Non-Performers. We will not waste the Non-Performer’s time and the company’s time with the PIP process,” he said.

Meanwhile, a representative of Unacademy, in a statement sent to Inc42, said, “We’ve decided to do away with the PIP process that was part of the notice period in case of (a) negative outcome of the PIP. From now on, if an employee is not performing well, they can serve their notice period and leave the company. This change allows us to address performance concerns more directly and make decisions more efficiently, without unnecessary delays.”

The statement said that rather than PIPs, the non-performing employees will have the opportunity to address their performance issues directly through feedback channels. However, if performance issues persist, it is in the best interest of both the individual and the organisation to facilitate a smooth and respectful transition. 

Typically, a PIP is the last warning issued by an employer to the employees considered inefficient. It generally involves a 30 or a 60 days timeline, during which the employer sets a target for the employees to achieve. Failing to meet the target, the company parts ways with the employee. PIPs are widely used by tech companies across the world. 

The latest development has come almost a month after Unacademy appointed Sandhydeep Purri as its new chief people officer (CPO). While announcing her appointment, Unacademy said that Purri will cultivate talent and drive a culture of innovation and progress at the startup. 

Purri’s appointment also came after Unacademy saw several senior-level exits in 2023. The following were the key exits during the year:

• Arnab Dutta – Senior Vice President Strategy
• Vivek Sinha – Chief Operating Officer
• Abhyudaya Singh Rana – Chief of Staff, Chief of Compliance Officer
• Subramanian Ramachandran – Chief Financial Officer
• Siddharth Manchanda – General Counsel
• Tina Balachandran – Senior Vice President, Talent and Culture
• Sachin Aggarwal – Head Franchisee Business (Offline Centres)
• Karan Shroff – Partner & Chief Operating Officer
• Ashish Arora – Senior Vice President & National Head Academics

Meanwhile, after several rounds of layoffs and cost-cutting exercise, Munjal recently claimed that Unacademy reduced its cash burn by 60% in 2023.

Unacademy’s loss jumped by 85% to INR 1,537 Cr in FY22, while its operating revenue increased to more than 80% to INR 719 Cr.

The post Unacademy Shuns PIPs, To Give ‘Direct Exit’ To Non-Performers appeared first on Inc42 Media.

The Rajya Sabha on Thursday (December 21) approved the Telecommunications Bill 2023, which aims to overhaul and modernise the archaic Indian Telegraph Act of 1885 and related legislations.

The Upper House okayed the Bill a day after it was approved by the Lok Sabha. It will turn into an Act after the President’s assent.

Minister of Communications Ashwini Vaishnaw introduced the Bill on December 18.

“The Bill (seeks) to amend and consolidate the law relating to development, expansion and operation of telecommunication services and telecommunication networks; assignment of spectrum; and for connected matters,” Vaishnaw said while introducing it.

The Bill seeks to replace the decades-old and archaic Indian Telegraph Act, 1885, the Indian Wireless Telegraphy Act, 1933 and the Telegraph Wires (Unlawful Possession).

The significant highlight of the Bill is the exclusion of over-the-top (OTT) communication apps from its scope, with no mention of such platforms. This decision provides a significant relief to OTT communication apps, as earlier drafts of the bill had broadened the definition of telecommunications services to include OTT communication apps like Meta-owned WhatsApp, Signal, Skype, Telegram and others.

Nevertheless, concerns have been raised by various quarters due to the broad definitions of key terms such as ‘telecommunication’ and ‘messaging’. These concerns suggest that the government might still have the option to regulate OTTs and internet-based communication applications under the new telecom bill.

The 2023 Telecommunication Bill is a big win for foreign players like Elon Musk’s Starlink and Amazon’s Kuiper, as it chooses to allocate satellite communication licenses administratively.  

The telecom sector in India is undergoing a remarkable transformation. As of July 2023, the country registered a subscriber base of 1.17 Bn, with a staggering 881.26 Mn internet subscribers, as per DoT.

The post After Lok Sabha, Telecommunications Bill Passed In Upper House appeared first on Inc42 Media.

Walmart-owned digital payments app PhonePe has rolled out a new feature on the platform that will allow its users to manage their credit cards as well as pay bills and loans.

The ‘Credit’ section will enable users to view their credit bureau score without any additional cost, PhonePe said in a statement, adding that the credit bureau report will also provide summarised credit insights such as their credit utilisation, credit age, on-time payments and more. 

Founded in December 2015 by Sameer Nigam, Rahul Chari, and Burzin Engineer, PhonePe offers financial services to users. It competes with publicly listed Paytm and Google Pay in the digital payments space and also provides mutual funds and insurance products.

Commenting on the launch, Hemant Gala, chief executive at PhonePe Credit, said, “We believe that financial empowerment starts with understanding and managing your credit health. This launch is a significant step towards providing our users with the tools and knowledge they need to make informed financial decisions.’’ 

The startup’s ‘Credit’ feature is aimed at offering easily accessible and simple tools to users to enable them to achieve their financial goals by launching financial services like insurance, stock broking and mutual funds.

PhonePe further said that it will soon expand its credit offerings by launching consumer loans within the app. With this, the company aims to address the diverse credit requirements of its customer base across various segments. 

The fintech unicorn is also working on the development of a lending platform distributing diverse products by partnering with the banking and non-banking financial company (NBFC) industry while adhering to the policy and guidelines set by the regulator. 

The announcement comes weeks after Walmart’s chief financial officer David Rainey said that PhonePe reached a total payment value (TPV) of $1.3 Tn, equating with some of the largest fintech firms in the US market.

After raising nearly $1 Bn in 2023, PhonePe is on an expansion spree and has launched a number of new offerings in recent times, including separate apps for ecommerce (Pincode) and investment tech (Share.Market) and Indus Appstore.

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Shares of Delhivery surged 6.8% to INR 389.35 during the intraday trading on Thursday (December 21), a day after the company launched its largest mega-gateway in Bhiwandi, one of India’s largest trucking terminals.

However, the shares shed some of the gains and were trading at INR 388.15 on the BSE at 2.30 PM IST. 

The logistics unicorn said in an exchange filing on Wednesday that its newly launched Bhiwandi trucking terminal is built over a land area of 12,00,000  sq ft. It combines automated hub, sortation, returns, and freight operations with the capability to handle Delhivery’s parcel and part truckload freight volume simultaneously.

The facility’s automation system, developed and deployed by Falcon Autotech, comprises 1.8 km of integrated double-deck cross-belt sorters with over 5 kms of material conveyance systems. It is equipped to process over 32,000 shipments and 17,000 freight units per hour, said Delhivery in its statement.

“Our expanded Bhiwandi gateway will enable us to increase capacity for Mumbai and the West Zone’s large and SME freight shippers while maintaining world-class service reliability and efficiency,” said Sahil Barua, MD and CEO of Delhivery.

Delhivery claims to currently have a nationwide network covering over 18,600 pin codes. Its logistics services include express parcel transportation, PTL freight, TL freight, cross-border, supply chain, and technology services. 

The logistics startup posted a net loss of INR 102.9 Cr in Q2 FY24, which declined 59.5% year-on-year (YoY). Adjusted EBITDA loss reduced 90% YoY to INR 13 Cr during the quarter.

ICICI Securities said in a recent research report that from Q3 FY24, Delhivery is expected to see a reversion to adjusted EBITDA profitability on a sustainable basis given ecommerce shipment volumes are trending upwards again after a lull of a year. 

Currently, Delhivery’s shares are trading over 10% higher year to date.

The post Delhivery Surges Almost 7% Intraday After Launch Of New Trucking Terminal In Bhiwandi 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.

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Robotics firm GreyOrange has raised $135 Mn (around INR 1,123 Cr), marking the first close of its Series D funding round led by Anthelion Capital (erstwhile Cowen Sustainable Investments), with participation from existing investors Mithril, 3State Ventures and Blume Ventures. 

The startup will deploy the fresh proceeds to scale up its technology leadership, expansion and bolster adoption of its fulfillment orchestration platform in warehouses, distribution centres and retail stores.

Founded by Akash Gupta and Samay Kohli in 2012, GreyOrange specialises in designing, manufacturing, and deploying AI-based robotic systems for automating routine tasks in warehouses and fulfilment centres for major ecommerce and retail companies. 

With manufacturing units in India, China, and the US, and research and development facilities in various countries, including India, the company claims to have played a crucial role in managing warehousing operations for Indian companies like Flipkart, Myntra, Pepperfry, Mahindra Tractors and others. 

“As we scale our technology and enhance customer experiences and operational efficiency, we recognise that keeping the needs of our customers at the centre of our product and solution roadmap has proven essential for our customer’s success, as well as our own,” said Gupta.

 “Not only has GreyOrange automated the movement of goods within the warehouse, but the company has also built a network that optimises how retailers move their goods across their entire supply chain,” said Vusal Najafov, cofounder of Anthelion Capital. 

GreyOrange’s latest funding round comes one year after the firm raised $110 Mn in growth financing.  A major portion of the infusion came from its existing investor Mithril Capital Management, along with new investors.

So far, the company has raised close to $425 Mn in total funding.

As per the 2023 Gartner Hype Cycle for Supply Chain Execution Technologies report, by 2027, more than 75% of companies are expected to integrate some form of cyber-physical automation into their warehouse operations.

The Gartner report notes that as more and more companies are stepping up to employ robotics, they will likely manage diverse robot fleets from different vendors. This calls for standardised software for seamless integration, efficient task assignment and communication with other automation types like door or elevator controls. 

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Continuing its winning streak, Reliance Jio added 3.4 Mn wireless subscribers to its kitty in September, as per monthly subscriber data released by the Telecom Regulatory Authority of India (TRAI).

Taking the second spot on the charts was the country’s second biggest telecom operator Bharti Airtel which accounted for 1.3 Mn subscriber additions during the month. Meanwhile, Vodafone Idea (Vi) continued to lose users in droves as it shed 2.32 Mn subscribers in the month of September.

State-owned BSNL and MTNL also saw heavy user churn as they lost 7.49 Lakh and 2,596 wireless users, respectively, during the course of the month. 

The Indian wireless telecom ecosystem saw a net addition of 1.7 Mn subscribers in the month against 1.39 Mn in August 2023. Overall, the number of active wireless subscribers in September hovered around the 1.04 Bn mark.

Meanwhile, Jio continued its stranglehold over the Indian telecom space, accounting for a market share of 39.06%, followed closely by Airtel with 32.85%. VI’s market share stood at 19.78% while BSNL contributed 8.14%. 

The country’s overall teledensity improved to 82.54% in September, up from 82.48% in the previous month. The push was largely led by rural India where teledensity improved further to 57.75% during the month under review compared to 57.67% in August. 

The total number of broadband users (both wireless and wireline) in the country stood at 885 Mn at the end of September with Jio grabbing more than half, 51.86% to be precise, of the total market. Airtel stood at 29.11% while VI took the third spot with 14.29% market share in the broadband market. 

In addition, 12.65 Mn subscribers submitted requests for Mobile Number Portability (MNP) in September, taking the total requests submitted till date beyond the 890 Mn mark. A majority of these, 7.21 Mn, emerged from Zone-I (Northern and Western India) while the remaining 5.44 Mn came from Zone-II (Southern and Eastern India).

The data comes close on the heels of the Centre tabling the much-awaited Telecommunications Bill, 2023 before the Parliament. The proposed law seeks to replace the archaic century-old Indian Telegraph Act of 1885, as well as the Indian Wireless Telegraphy Act of 1933.

Not heeding to the demands of the telcos, the Bill kept OTT platforms outside the ambit of the regulatory framework but critics claimed that the proposed legislation covertly brings internet-enabled services under its purview. 

The Bill also charted out a new definition for ‘telecommunication’ and reiterated a host of compliance mandates for the operators. It also set the stage for the allocation of satellite communication licences through administrative process to private players, ruling against an auction process for the same. 

With this, the fight between telecom giants Jio and Airtel is expected to spill into the satcom domain as their arms Jio Satellite Communications and OneWeb respectively, have licences to offer such services.

The two players have also begun to roll out unlimited 5G data packs for their prepaid and postpaid users as they look to monetise the new generation technology for which they spent billions of dollars for spectrum in auction.

The post Reliance Jio Continues Winning Streak, Adds 3.4 Mn Subscribers In September 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.

Ecommerce took centre stage on the 13th day of the Parliament’s Winter Session as the government answered a slew of questions regarding regulation, competition, ONDC and ecommerce exports.

Responding to a question, the Minister of State (MoS) for Commerce and Industry Som Parkash on Wednesday (December 20) said that the ONDC network was now live in 500 towns and cities across the country. 

“The geographic coverage of ONDC is determined both by the capability of its Network participants and the independent business decisions of merchants onboarded by the Network participants,” he added.

Parkash’s comments were part of a written response to a question by Lok Sabha member Ravikumar D on whether ecommerce regulations extended to the state-backed ONDC. 

“All existing laws and regulations of India, related to ecommerce apply to ONDC and the Network Participants on [the] ONDC network,” Parkash said.

The government also added that ONDC was also taking ‘comprehensive’ steps to ensure trust, fairness and transparency on the network, including fairness in search and discovery, payment mechanisms, KYC requirements, reviews and ratings, and enforcement, among other factors.

During the session, Parkash also pointed out that the government has so far not undertaken any studies to address competition-related issues identified by the 172nd report of the Rajya Sabha on the promotion and regulation of ecommerce in India. 

The minister added that the government had filed an ‘Action Taken’ report in response to the recommendations of the Parliamentary Standing Committee on Commerce on the matter.

Incidentally, the government had then decided not to take any recommendations on the aspect of competition.

The standing committee had recommended changes related to the current regulatory regime encompassing ecommerce, the Competition Act of 2002, abuse of dominant position by big players as well as mergers and acquisitions. The committee had also recommended that the Ministry of Corporate Affairs take ‘concerted efforts’ to finalise and enact the Competition Amendment Bill ‘at the earliest’.

The government, in its action-taken report, noted that the amendment bill would already include most of the recommendations made by the standing committee in terms of competition and address gaps in the current regulatory regime. 

DGFT Collaborating With Ecommerce Cos: MoS Commerce & Industry

On the question of whether the government has tied up with any startup or private players for ecommerce exports, MoS Commerce and Industry Anupriya Patel said that efforts were being taken to promote ecommerce exports in partnership with various stakeholders.

“… outreach events are being held in the districts under Districts as Export Hubs initiative with [a] focus on promoting ecommerce exports of the identified goods from the districts in collaboration with various stakeholders,” said Patel in a written response.

According to Patel, the Directorate General of Foreign Trade (DGFT) is collaborating with various ecommerce platforms to promote ecommerce exports from the country. 

“The core objective of this collaboration is to leverage ecommerce platforms operating in other countries to support local exporters, manufacturers, and MSMEs in India in reaching potential international buyers,” the MoS added.

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Taking on troubled startup Dunzo, logistics startup Shadowfax on Wednesday (December 20) announced its foray into the on-demand delivery space with the launch of its app Flash. 

The new service will offer last-mile delivery solutions to customers in more than 50 cities within 30 minutes. Users will be able to make pickup and drop-off requests through the app, which will cater to both merchants and end customers within the city limit. 

In a statement, the startup said that the Flash platform has introduced a new concept of ‘milk run deliveries’, enabling customers to consolidate multiple shipments on a single route which, in turn, would optimise efficiency and lower delivery costs. 

Touting the new platform as a ‘cost-efficient logistics solution’ that prioritises speed and reliability, Shadowfax said that Flash also integrates GPS technology to offer full visibility into delivery and ensuring real-time tracking capabilities.

Commenting on the launch, Shadowfax cofounder and chief business officer Praharsh Chandra said, “We are thrilled to introduce Flash by Shadowfax… This service aligns with our commitment to innovation and customer satisfaction, providing a comprehensive solution for efficient, on-demand logistics…”

The new offering pits Shadowfax directly against Dunzo. Flash will enable the company to tap into the growing demand for on-demand delivery and further diversify its portfolio. Alongside, the move will also enable the company to further scale up its offerings and create alternative revenue streams. 

The development comes at a time when Dunzo is facing a major cash crunch and has shelved its expansion plans. With the hyperlocal startup in disarray, it looks like an opportune time for Shadowfax to enter the space that has been dominated by Dunzo for the past many years. 

Interestingly, the new launch comes a month after the Competition Commission of India (CCI) greenlit Mirae Group’s proposal to acquire a minority stake in Shadowfax. The move also comes months after reports surfaced that the logistics giant was finalising a $60 Mn funding round led by TPG NewQuest.

Founded in 2015 by Vaibhav Khandelwal, Abhishek Bansal, Chandra and Gaurav Jaithliya, Shadowfax is a third-party logistics platform that caters to hyperlocal and delivery businesses. 

The startup claims to have a network of more than 1.25 Lakh monthly active delivery partners that deliver to more than 15,000 pincodes and 35 Lakh registered users. 

It is backed by big names such as Mirae, Flipkart, Qualcomm Ventures and Eight Roads Ventures. With customers such as Meesho, Myntra, Zomato-owned Blinkit, and Flipkart in its kitty, Shadowfax has raised more than $120 Mn till date.

Shadowfax reported a net loss of INR 142.63 Cr in the fiscal year 2022-23 (FY23), down 19% year-on-year (YoY), while total income rose 42% YoY to INR 1,423 Cr.

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Foodtech major Swiggy has begun charging restaurants a 2% ‘collection fee’ on all orders to facilitate payments from customers on the food delivery platform. 

While the company declined to comment on the matter, sources told Inc42 that the platform has begun levying the new charge. As per reports, the fee will be deducted from the payouts to the listed restaurants.

This comes days after the company informed select partner restaurants about the impending move. 

As per a correspondence seen by The Economic Times, Swiggy said, “Commencing from December 20, 2023, we will be introducing a standardised 2% collection fee on all orders. This fee is designed to facilitate smooth customer payments on the Swiggy platform. It is important to note that this amount will be subtracted from your payouts.”

Interestingly, Swiggy is following the suite of competitor Zomato, which already imposes a similar ‘payment gateway fee’ of around 1.8% on all orders. However, the new development from Swiggy comes more than four to five years after the Deepinder Goyal-led company instituted its gateway fee. 

Meanwhile, the move seems to have sparked a major discontent within a section of the members of the National Restaurants Association of India (NRAI). The industry body’s vice president and founder of QSR chain Wow! Momo, Sagar Daryani, reportedly termed the new charges by Swiggy an ‘unwelcome distraction’.

He told ET that the ‘collection fee’ is essentially a method of indirectly raising commission costs. However, the NRAI declined to comment on Inc42’s queries on the matter. 

The new charge could likely be part of Swiggy’s strategy to create alternative revenue streams and boost its top line as it prepares for a public listing later next year. Just this year, the foodtech major also hiked its platform fee to INR 3 per order, irrespective of cart order, to enhance unit economics and spruce up revenues. 

As per reports, Swiggy’s average order value hovers around INR 400, which means that a 2% collection fee would translate into an additional INR 8 in revenue per order for Swiggy. This could pave the way for better unit economics for the company as it looks to show a healthy balance sheet to investors while filing for its IPO papers. 

As per the half yearly financial report of Swiggy’s investor Prosus, the startup’s food delivery business saw a 28% year-on-year growth in gross merchandise value (GMV) to $1.43 Bn in the first six months of FY24. 

The foodtech major was also one of the best performers in the Dutch investor’s books with an IRR of 7% in H1 FY24. 

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At its annual general meeting (AGM) on Wednesday (December 20), troubled edtech major BYJU’S‘ stakeholders approved its financial statements for the fiscal year 2021-22 (FY22). 

With close to 60 shareholders in attendance, BDO was reappointed as the statutory auditor of the company during the three-hour long AGM, BYJU’S said in a statement, adding that all the resolutions proposed by the company were passed. 

“Think and Learn, the parent company of BYJU’S, held its Annual General Meeting (AGM) today with close to 60 shareholders in attendance. All the resolutions were passed, including the accounts for FY22. BDO was reappointed as the statutory auditors of the company,” the statement said. 

As per the edtech major, cofounder and chief executive officer (CEO) Byju Raveendran kicked off the AGM with an ‘account of the state of business and its challenges’. This was followed by chief financial officer Nitin Golani briefing the stakeholders about the audit while India CEO Arjun Mohan spoke about business updates and plans. 

The AGM also saw auditor BDO answering questions from shareholders about the newly furnished financial statements. 

The audited financial results were finally approved by the stakeholders after multiple delays from the company in furnishing them. This resulted in the resignation of previous auditor Deloitte and exit of three key board members, including GV Ravishankar of Peak XV Partners, Prosus’ Russell Dreisenstock and Vivian Wu of Chan Zuckerberg Initiative.

In November this year, the troubled startup released select financial numbers for its core operations. Think and Learn Private’s standalone EBITDA loss stood at INR 2,253 Cr in FY22 compared to an EBITDA loss of INR 2,406 Cr in the previous fiscal. Total income stood at INR 3,569 Cr in the year ended March 2022 as against INR 1,552 Cr in FY21. 

While there was no mention of the net loss figure in FY22, the edtech major’s consolidated net loss stood at INR 4,588 Cr in FY21, up 1,880% year-on-year.

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. 

To tide over the crisis, the company has been scouting investors to raise funds and has also been in the market to reportedly sell subsidiaries Epic and Great Learning to repay the loan.

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Bengaluru-based B2B food and ecommerce marketplace Jumbotail’s net loss more than doubled during the year ended March 31, 2023. The startup’s loss surged 112% to INR 264.16 Cr in the financial year 2022-23 (FY23) from INR 124.74 Cr in the previous fiscal year.

The bottom line took a hit despite revenue from operations jumping 117% to INR 819 Cr from INR 377.36 Cr in FY22.

Founded in 2015 by S Karthik Venkateswaran and Ashish Jhina, Jumbotail offers a suite of go-to-market services for brands looking to reach the kirana market. It runs an online B2B marketplace for groceries and food and primarily caters to wholesale buyers.

How Did Jumbotail Make Money In FY23?

Being an ecommerce marketplace, the startup primarily earns revenue from the sale of products. It also earns revenue from the sale of services via its omnichannel retail brand J24, which integrates offline kirana stores and helps them sell both online and offline.

The startup also gets service income via its Golden Eye retail operating system, a cloud-based retail POS Operating System.

During the year under review, Jumbotail earned INR 766.59 Cr from the sale of products, an increase of 117% from INR 351.74 Cr in FY22. Revenue from services shot up 105% to INR 52.42 Cr in FY23 from INR 25.61 Cr a year ago.

Including other income, total income rose to INR 849.87 Cr from INR 398.85 Cr in FY22.

Where Did The Startup Spend In FY23?

In line with the rise in its top line, Jumbotail’s total expenses zoomed 113% to INR 1,114.04 Cr in FY23 from INR 523.60 Cr in the previous year. 

Purchase Of Stock Expenses Shot Up: Purchase of stock-in-trade accounted for the biggest chunk of expenses. The startup spent INR 760.99 Cr under the head in FY23, almost double that of INR 352.29 Cr in the previous fiscal year. 

Employee Benefits Expenses Doubled: Jumbotail’s employee costs grew to INR 101.51 Cr in the year ended March 31, 2023, from INR 52.34 Cr in FY22. 

The sharp increase indicates that the startup may have increased its headcount during the year. The startup spent INR 82.31 Cr on wages in FY23, up 84% from INR 44.69 Cr in the previous financial year.

Distribution Costs Jump: In line with its business, the transportation and distribution costs incurred by Jumbotail also saw significant growth. During the period under review, the startup spent INR 60.44 Cr on transportation, up 108.76% from the INR 28.95 Cr it recorded in FY22.

Ad Spend Increases: The startup spent INR 17.11 Cr on advertisements and other promotional activities, up nearly 90% compared to the INR 9.16 Cr it spent during FY22. 

The startup’s EBITDA margin contracted to -9.83% in FY23 from -9.26% in FY22. On a unit economic basis, Jumbotail spent INR 1.36 to earn every INR 1 in FY23.

Earlier this year, during its INR 75 Cr debt round, Jumbotail said it planned to achieve operational profitability in the next 12 months. 

In a statement, Jumbotail said it is now aiming to expand its retailer base to about 4 Lakh and reach over 80% penetration in the addressable market in FY24. Currently, Jumbotail claims to have 2.5 Lakh+ retailers across 50+ cities. The startup also said it is looking to double its operating revenue and increase the number of J24 stores to 300 stores in FY24.

Jumbotail competes with the likes of Udaan and BigBasket. It has so far raised a total funding of around $139 Mn in equity and debt from investors, including Kalaari Capital, Invus, Heron Rock, VII Ventures, Nexus Ventures, Arkam Ventures, Alteria Capital, and Innoven Capital.

The post Jumbotail’s FY23 Loss Surges 112% To INR 264 Cr Despite Doubling Sales appeared first on Inc42 Media.

Unicommerce eSolutions Pvt Ltd, which offers a software-as-a-service (SaaS)-based order management and fulfilment platform to ecommerce and retail businesses, has roped in five industry leaders to its board.

The startup, which aims to go public late next year, has appointed former SoftBank India head Manoj Kohli, along with Ullas Kamath and Sairee Chahal as independent directors and Kunal Bahl and Rohit Bansal as non-executive directors. 

These appointments are poised to boost reach, institutionalise governance structure and steer the company into the next phase of growth, Unicommerce said in a statement.

Other than SoftBank, Kohli has served as the executive chairman of SB Energy Projects Private Limited as well as a managing director and CEO of Bharti Enterprises Limited. He had been instrumental in driving growth, profitability and operational excellence across multiple sectors, the statement added.

Meanwhile, Kamath was the joint managing director of Jyothy Labs, where he played a crucial role in the transformation of the company into a multi-brand FMCG corporate entity. 

Chahal is the founder of SHEROES, a women-focussed digital platform and an ecosystem with over 20 Mn women. She is also the founder of Mahila Money, a neobank for women, and cofounder of Fleximoms, which works towards creating, enhancing and co-creating workflex opportunities for women professionals.

Bahl and Bansal are the cofounders of Snapdeal, AceVector and Titan Capital.

“The depth and diversity of their expertise aligns seamlessly with our vision of anticipating and serving the evolving technology needs of our customers both in India and in other countries,” said Kapil Makhija, MD and CEO of Unicommerce.

Unicommerce was launched by three classmates at IIT Delhi – Ankit Pruthi, Karun Singla and Vibhu Garg. It was later acquired by Snapdeal in 2015.

The startup enables end-to-end management of ecommerce operations for D2C brands, retail companies, and other online sellers through its comprehensive suite of SaaS-based technology products.

Unicommerce’s platform keeps track of stocks across multiple warehouses, keeps inventory information updated across multiple sales channels (both offline & online) and automates order pick-ups to support faster and more accurate deliveries.

The startup generates revenue by selling its SaaS solutions. Including other income, its total revenue stood at INR 92.9 Cr in FY23 as against INR 61.3 Cr in the previous fiscal year.

Unicommerce’s operating revenue zoomed 52% to INR 90 Cr in the financial year 2022-23 from INR 59 Cr in the previous fiscal year on strong demand for its services. This resulted in the SoftBank-backed startup’s net profit rising 8% to INR 6.4 Cr in FY23 from INR 5.9 Cr in FY22.

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