Gaurav Munjal-led edtech startup Unacademy undertook another restructuring exercise last month, which resulted in 250 employees losing their jobs, sources told Inc42.

While 150 employees were from the sales department, who were fired for not being able to meet their “sales targets”, the remaining 100 employees were from various other departments, the sources said.

A spokesperson of Unacademy confirmed the development with Inc42 but didn’t disclose the number of employees impacted by the layoff round. 

“As part of our ongoing efforts to streamline operations and enhance business efficiency, we have recently undergone a restructuring exercise. This was necessary keeping in mind the company’s goals and vision for the year, as we focus all our efforts on sustainable growth and profitability. Consequently, some roles have been impacted. While this transition won’t be easy, we will be supporting all impacted individuals during this transition,” the spokesperson said.

Financial Express was the first to report the development. As per the report, around 600 employees were impacted by the restructuring exercise. 

It is pertinent to note that the latest restructuring exercise was an addition to the growing number of layoff rounds undertaken by Unacademy over the last couple of years. As per Inc42’s layoff tracker, Unacademy has laid off around 2,000 employees since the onset of the funding winter. 

In May this year, Inc42 exclusively reported that the startup’s medical entrance test preparation platform PrepLadder undertook a layoff exercise amid a shift in its sales strategy. Sources told Inc42 then that the NEET preparation platform laid off around 145 employees, which was almost 25% of its workforce. It was PrepLadder’s third round of layoffs in the past three years. 

Unacademy has been looking to raise funds for over a year now but hasn’t been successful so far. Recently, one of Unacademy’s cofounders, Hemesh Singh, stepped down from his executive role and moved to an advisory role. 

Singh, along with Munjal and Roman Saini, founded Unacademy in 2015. The Bengaluru-based startup claims to have a network of 91K registered educators (teachers) and over 99 Mn learners.

Sumit Jain, a partner at Unacademy, is reportedly going to replace Singh on the startup’s board seat.

Last month, Inc42 learnt that K-12 Techno Services held talks to acquire Unacademy. However, the talks are at initial stages.

Peak XV Partners-backed Unacademy narrowed its consolidated net loss by almost 40% to INR 1,678.1 Cr in the financial year 2022-23 (FY23) from INR 2,847.9 Cr in the previous year, on the back of a sharp reduction in costs.

Unacademy Group has raised about $800 Mn in funding till date. Last valued at $3 Bn, the startup counts Tiger Global, Elevation Capital, General Atlantic, and Meta among its backers.

The post Unacademy Fires Another 250 Employees To Turn Profitable appeared first on Inc42 Media.

Update | Jul 2, 3:30PM

Almost a month after Inc42 exclusively reported that D2C sneaker brand Comet was in advanced talks with Elevation Capital and Nexus Venture Partners for a fundraise, the startup confirmed the development in its regulatory filing. 

Comet has raised INR 42 Cr (about $5 Mn) from the investors, with Elevation Capital infusing about INR 33 Cr.

Original Story | May 11, 3:43 PM

Bengaluru-based D2C sneaker brand Comet is in advanced stages of discussions with Elevation Capital and Nexus Venture Partners to raise Series A funding, sources told Inc42.

“The round will be led by new investor Elevation Capital, while existing investor Nexus Venture Partners will also participate in this round,” one of the sources said. 

The terms of the deal have been finalised and the funding round will be closed soon, the sources added. However, Inc42 couldn’t ascertain the amount of capital the startup will be raising in this round.

Comet declined to comment on Inc42’s queries about the funding round and the deployment of the fresh capital. 

The sources said that the D2C startup would use the fresh funds to expand its team and product portfolio, grow its inventory, among others. Currently, Comet has a workforce of 10-20 employees.

The startup also plans to begin opening offline retail stores by early next year.

Founded by former Hotstar executive Utkarsh Gupta and ex-Urban Company executive Dishant Daryani in 2022, Comet was officially launched in 2023. 

The startup currently sells sneakers for both males and females in the price range of INR 4,000 to INR 4,500. It also sells slides and shoe laces. Currently, the startup primarily sells its product through its own website. 

Earlier, Comet raised seed funding from Nexus Venture Partners. 

Earlier this year, the startup collaborated with multidisciplinary artist Shantanu Hazarika to drop limited edition sneakers. 

Besides Comet, the Indian homegrown sneaker market has multiple startups like 7-10, Neemans, and Rare Rabbit. However, given its price range, Comet competes with the likes of Puma.

Meanwhile, Elevation Capital also counts popular D2C brands such as The Souled Store, Sugar Cosmetics, and Bliss Club among its portfolio.

It is pertinent to note that the last few years have seen the emergence of hundreds of D2C brands across sectors in the country. Not only this, these brands are also receiving strong interest from investors.

At the heart of all these is the rapidly expanding D2C market. According to an Inc42 report, D2C is one of the fastest growing subsector in the ecommerce sector. The country’s D2C market is poised to grow at a CAGR of 19% to reach a size of over $400 Bn by 2030.

The post [Update] Exclusive: D2C Sneaker Brand Comet Raises Series A Funding From Elevation Capital, Nexus appeared first on Inc42 Media.

Bengaluru-based Ripplr is raising INR 40 Cr ($4.7 Mn) debt from IPO-bound Northern Arc. According to Ripplr’s regulatory filings, the startup’s shareholders passed a resolution to allot up to 400 non-convertible debentures (NCDs) to the lender for a cash consideration of INR 40 Cr. 

Last month, the startup raised INR 6 Cr debt from another venture debt firm Trifecta Capital. 

In May, Ripple’s shareholders passed a resolution to raise up to INR 101 Cr through debt. The latest funding seems to be part of the same round.

Founded in 2019 by Abhishek Nehru and Santosh Dabke, Ripplr offers a B2B web platform and mobile application to connect retailers with distributors. The startup claims that the platform uses AI to make predictions and decisions which helps brands deliver an integrated customer experience by elevating certainty and quality for consumers.

It counts Dabur, Tata Consumer Products, and Godrej among its customers for the distribution service vertical, while its logistics services are used by the likes of BigBasket and Zomato. 

The startup raised $40 Mn in its Series B funding round in May last year, which was a mix of equity and debt. The equity funding was led by Fireside Ventures and also saw participation from Bikaji and Neo Foods, along with existing investors 3one4 Capital, Zephyr Peacock and Japanese conglomerate Sojitz Corporation.

Back then, Stride Ventures, Alteria Capital, Northern Arc Investments and Trifecta Capital participated in the debt part of the round. 

Ripplr has a presence in Maharashtra, Delhi, Kerala, Karnataka and Tamil Nadu. It manages over 24 warehouses in these states. 

The startup has raised about $50 Mn in funding till date.

In recent times, a number of logistics startups have raised funding despite the ongoing funding winter. In May, supply chain and logistics startup 3SC bagged $4 Mn from its existing investor GEF Capital’s South Asia Growth Fund.

Prior to that, LetsTransport, a trucking aggregator, bagged $22 Mn in its Series E funding round led by Bertelsmann India Investments. 

The post Exclusive: Logistics & Distribution Startup Ripplr To Raise $4.7 Mn Debt From Northern Arc appeared first on Inc42 Media.

Proptech unicorn NoBroker’s loss for the financial year 2022-23 (FY23) surpassed the INR 500 Cr mark. At a time when companies are about to file their FY24 financials with the Ministry of Corporate Affairs, NoBroker uploaded its financial statements for FY23 nearly 15 months after the end of the year. The documents revealed that the Tiger Global-backed startup’s net loss rose 64% to INR 506.2 Cr in FY23 from INR 309.1 Cr in the previous fiscal year.

Founded in 2014 by Saurabh Garg, Akhil Gupta and Amit Agarwal, NoBroker is a proptech platform that allows users to buy, rent, and list properties without any brokerage fees. It also offers tertiary real estate offerings, including packers and movers, rental agreement services, and painting and cleaning of houses. 

The startup’s operating revenue zoomed 87% to INR 609 Cr in FY23 from INR 325.8 Cr in the previous fiscal year. 

The startup primarily earns revenue through sale of subscriptions, which primarily includes renting of apartments and purchase of properties. Besides this, it also earns money from rental agreements, home interior renovation services, packers and movers, among others. 

Including other income, total revenue jumped 84.7% to INR 683.4 Cr during the year under review from INR 369.83 Cr in FY22. 

Where Did NoBroker Spend?

The startup’s total expenditure rose 75% to INR 1,189.7 Cr in FY23 from INR 678.9 Cr in the previous year. 

Employee Benefit Expenses: As it expanded its offerings, NoBroker went on an aggressive hiring spree. This was reflected in its employee costs, which jumped 66% to INR 435 Cr from INR 261.5 Cr in FY22. 

Miscellaneous Expenses: Expenses under this head soared 84% to INR 673 Cr in FY23 from INR 366 Cr in the previous year. While the financial statement didn’t provide a breakdown of miscellaneous expenses, it might include advertising expenses, payment gateway fees, among others. 

The startup last raised $5 Mn last year in a likely bridge round from internet giant Google. 

NoBroker entered the unicorn club in November 2021 after raising $210 Mn in its Series E round led by General Atlantic and Tiger Global Management. Overall, it has raised a total funding of about $365 Mn till date and was last valued The startup is currently valued at around $1 Bn. 

Soon after turning a unicorn, the startup forayed into the home interiors market in March 2022 and intended to invest INR 100 Cr for it, including expenditure on both marketing and hiring.

While NoBroker competes against the likes of MagicBricks, 99Acres, Booking in the home classified space, it competes against MyGate in the gated community space. In the home interior segment, its rivals are HomeLane, LivSpace, and Bonito Designs. 

The post Proptech Unicorn NoBroker’s FY23 Loss Crosses INR 500 Cr Mark appeared first on Inc42 Media.

After months of speculation, D2C fashion brand Rare Rabbit has received the first tranche of its INR 500 Cr investment. According to the startup’s regulatory filing, it received an investment of INR 150 Cr (about $18 Mn) from A91 Partners, Nikhil Kamath’s investment firm Gruhas, Ravi Modi’s family trust (promoter of Manyavar), among others. 

According to Inc42 estimates, the startup raised the funding at a pre-money valuation of INR 2,200 Cr (about $264 Mn).

It was first reported last month that Rare Rabbit was looking to raise INR 500 Cr in its maiden funding round. The funding round was said to be led by A91 Partners and see participation from the family office of Ravi Modi, founder of Vedant Fashions (which runs the ethnic fashion brand Manyavar), and Zerodha cofounder Nikhil Kamath.

As per the reports, the funding round would involve a primary infusion of INR 250 Cr. The remaining amount was to involve a secondary transaction, in which husband-wife duo Akshika and Manish Poddar would sell shares. 

Founded in 2015 by Manish and Akshika Poddar, The House of Rare operates Rare Rabbit, women’s fashion wear brand Rareism, and everyday wear brand Articale.

The startup’s operating revenue jumped 77% year-on-year (YoY) to INR 376 Cr in the financial year 2022-23 (FY23), while net profit grew 84% to INR 32.2 Cr. Total expenditure stood at INR 338.7 Cr during the year, an increase of 72% from INR 196.6 Cr in FY22. 

As per reports, the startup clocked a revenue of INR 600 Cr in FY24. It is yet to file its financial results for the year with the Ministry of Corporate Affairs. 

House of Rare competes against new-age D2C fashion brands like Bombay Shirt Company, Snitch, Damensch, and The Souled Store.

The post D2C Fashion Brand Rare Rabbit Bags INR 150 Cr From A91 Partners, Nikhil Kamath’s Gruhas appeared first on Inc42 Media.

Car-ownership solutions provider Park+ is piloting a new service which allows users to book drivers on demand. The startup’s founder and CEO Amit Lakhotia told Inc42 that Park+ is currently testing the new service in Gurugram.

“There’s a significant demand for on-demand driver services, especially in the metros. It is an essential service if you are in a car-related business,” Lakhotia said. 

While the startup currently allows select users to hire drivers for intercity travel currently, it plans to add intracity travel going ahead. 

Park+ will hire drivers from agencies for the services. However, Lakhotia added that the startup already has around 2,000 drivers on the platform who are working as valets for parking and car servicing services. The services of these drivers will be used for the new service.  

The development comes almost two months after Inc42 exclusively reported that used-car marketplace Cars24 was piloting on-demand driver hiring services. Park+ will compete against the likes of Cars24 and DriveU with its new offering. 

Founded in 2019 by former Paytm executive Lakhotia, Park+ offers a range of services for car owners, including car parking solutions, FASTag management, paying and viewing challans, car insurance, and locating EV charging stations. 

It also caters to businesses through deployment of products such as automatic boom barriers, gate automation, and a full fledged cloud-based vehicle access control management system.

On the financial performance, Lakhotia said that the startup posted an operating revenue of INR 140 Cr in the financial year 2023-24 (FY24), while its burn stood at INR 70 Cr. The startup is yet to file its FY24 numbers with the Ministry of Corporate Affairs. 

In FY23, Park+’s revenue zoomed 146% year-on-year (YoY) to INR 96 Cr while net loss jumped 65% YoY to INR 99 Cr. 

In January last year, the startup bagged INR 140 Cr in its Series C funding round led by existing investors Epiq Capital, Matrix Partners India, and Sequoia India at a post-money valuation of around $340 Mn. 

Park+ then said it would use the funding to expand its operations to around 100 cities and expand its team. Currently, the startup has around 700 employees. 

It has raised a total funding of about $54 Mn till date. Park+ competes with the likes of Get My Parking and ParkingRhino in the nascent parking solutions space. 

The post Exclusive: After Cars24, Park+ Pilots On-Demand Driver Hiring Services appeared first on Inc42 Media.

Update | June 27, 03:35 PM

Coworking startup Smartworks said it has raised $20.24 Mn (around  INR 168 Cr) this year so far from investors like Keppel Ltd, Ananta Capital Ventures Fund I, Plutus Capital LLC, family trusts, and a host of individual investors.

In a statement, Smartworks founder Neetish Sarda said, “We thank our investors for their continued confidence in our capabilities and the office experience and managed campus platform. Capital from the latest fund raising will be used for the growth and expansion of the business of the company and to meet its general corporate expenses.”

—————————————————————————————————————————

Original Story | June 11, 08:05 PM

Coworking startup Smartworks has raised around $12 Mn (about INR 100 Cr) in a fresh funding round led by Ananta Capital, the backer of Bella Vita Organic.

As per the startup’s filing with the Ministry of Corporate Affairs (MCA), the funding round saw participation from around 45 investors, including Plutus Capital, Kili Ventures LLP, and Dhawan Family Trust.

Smartworks didn’t respond to Inc42’s queries on the development till the time of publishing this story. The article would be updated on receiving a response from the startup.

The fresh investment comes almost a couple of months after Inc42 exclusively reported that the startup raised nearly $4 Mn from its existing investor, Singapore-based Keppel Land. 

It is pertinent to note that Smartworks cofounder Neetish Sarda said in May last year that the startup was looking to raise $70 Mn to $90 Mn. The latest fundraise could be a part of this funding round. 

Prior to this, the startup raised $25 Mn in its Series A funding round from Keppel Land. 

Founded in 2016 by Sarda and Harsh Binani, Smartworks is a shared workspace provider. It provides office spaces that can be rapidly configured and customised to the needs of enterprises. 

The startup claims to have over 8 Mn sq. ft. of office space across 40+ locations in 13 cities, including Bengaluru, Kolkata, Delhi NCR, Mumbai and Pune. It caters to over 600 organisations, including Forbes 2000/ Fortune 500 companies, multinational companies, unicorns and soonicorns.

Last month, the startup entered the Pune market by leasing a 14-floor tower in Balewadi area. The building is expected to accommodate 8,000 desks. 

SmartWorks’ revenue soared 98% year-on-year to INR 711 Cr in the financial year 2022-23 (FY23), while net loss increased 44% to INR 101 Cr.

 The startup competes against the likes of WeWork India, IndiaQube, and recently-listed Awfis. 

The post [Update] Exclusive: Smartworks Raises $20 Mn From Ananta Capital, Keppel, Others appeared first on Inc42 Media.

Bengaluru-based fintech unicorn slice is piloting a new lending product under the name ‘slice personal loan’, under which users can avail a loan of up to INR 5 Lakh for a tenure of 5 years (60 months), sources told Inc42. 

Currently, the product is being offered only to select users, the sources said, adding that it would be expanded to cover more consumers in the coming months. slice is charging an interest of up to 14% on these loans.

The startup is targeting users with high credit scores for the new product. The new offering is an extension of its existing product slice borrow, under which its users can borrow up to INR 2 Lakh from the startup and its NBFC partners with a repayment period of 12 months.

A query mail sent to slice on the new offering didn’t elicit any response till the time of publishing this story. 

Earlier this month, Inc42 exclusively reported that slice is raising $20 Mn (about INR 170 Cr) in a debt funding round from Neo Asset Management’s Credit Opportunities Fund. The funding is part of a larger $30 Mn (about INR 255 Cr) debt round. While the startup has received $20 Mn, it is expected to receive the remaining amount soon.

Back then, Inc42 learnt that slice would utilise the funds for corporate purposes and working capital requirements. 

Founded in 2016 by Rajan Bajaj, slice operated as a buy now pay later (BNPL) platform till 2022 and offered a credit card-esque prepaid payment instrument (PPI) that came with no annual fees, interest, or late charges. 

However, after the RBI cracked the whip on fintechs in 2022 and barred NBFCs from offering credit on PPI, slice discontinued the service. The regulatory headwinds forced it to change its business model and the startup began exploring merger options.

slice currently offers UPI payments, consumer credit, and a prepaid payment banking account through its app. 

Earlier this year, slice received the Competition Commission of India’s (CCI) approval for its merger with Guwahati-based North East Small Finance Bank.

slice, last valued at $1.5 Bn, is backed by marquee investors such as Tiger Global, Gunopsy Capital, Blume Ventures, Advent International’s Sunley House Capital, Moore Strategic Ventures, and Anfa.

The startup competes against the likes of KreditBee, MoneyTap and CASHe.

The post Exclusive: slice Doubles Down On Its Lending Play; Pilots Personal Loans Of Up To INR 5 Lakh appeared first on Inc42 Media.

Gold loan provider Rupeek is in advanced talks to raise around INR 200 Cr (about $24 Mn) in a funding round which will be a mix of primary and secondary transactions, sources told Inc42.

The funding round will see Elevation Capital joining the digital lending startup’s cap table. Besides, a couple of existing investors will also participate in the round.

Elevation Capital will be a “major contributor” in this funding round, which will value the startup at $250 Mn, – a decline of almost 60% from its peak valuation of $600 Mn, the sources added.

As part of the secondary transaction, Rupeek’s employees will be selling their shares to investors.

Earlier, Economic Times reported that Ranjan Pai’s investment office Claypond Capital is likely to join the funding round. 

The new funding round kicked off earlier this month, with Rupeek raising INR 51 Cr from 360 One Large Value Fund (formerly IIFL Wealth Management) and BlackSoil. 

Founded in 2015 by Sumit Maniyar and Ashwin Soni, Rupeek offers custom gold loans as well as other standard lending products, with gold as collateral. It claims to be present in more than 40 cities across the country and have a customer base of more than 5 Lakh.

Backed by the likes of Peak XV Partners, Accel, GGV Capital, and Bertelsmann, the startup has raised a total funding of over $164 Mn till date. 

Rupeek saw its net loss narrow more than 22% year-on-year (YoY) to INR 281.6 Cr in the financial year 2022-23. However, operating revenue also declined 27.7% to INR 88.9 Cr in FY23 from INR 122.9 Cr in the previous year.

The startup has been focussing on profitability for the last few years. As part of this, it fired almost 250 employees in two layoff rounds amid the ongoing funding winter.

The post Exclusive: Rupeek To Raise INR 200 Cr From Elevation, Others At 60% Haircut appeared first on Inc42 Media.

Taking a major step towards its initial public offering (IPO), electric two-wheeler manufacturer Ather Energy’s board passed a resolution last week, during its annual general meeting, to convert the startup into a public company from private.

Following this, the startup’s name has changed to Ather Energy Ltd from Ather Energy Pvt Ltd earlier, its regulatory filings revealed.

Besides the conversion into a public entity, the startup is also increasing its authorised share capital to INR 50 Cr from INR 93.6 Lakh. It will also issue bonus shares to its shareholders and allot them 2.96 bonus equity shares for every share held. 

The developments come months after it was reported that the electric vehicle (EV) startup roped in HSBC Holdings Plc, Nomura Holdings Inc, and JP Morgan Chase & Co to handle its initial public offering (IPO). Ather Energy was said to be eyeing a listing in the second half of 2024 at a valuation of around $2 Bn.

Earlier this month, Inc42 reported that Ather Energy raised INR 286 Cr through a mix of debt and equity from Stride Ventures and its cofounders. While Stride Ventures invested around INR 200 Cr via debentures, cofounder Tarun Mehta and Swapnil Jain infused INR 43.28 Cr. 

Besides, Hero MotoCorp acquired an additional 2.2% stake in Ather Energy for INR 124 Cr. Hero MotoCorp bought this stake from Flipkart cofounder Binny Bansal, who exited the startup by selling his entire 7.5% stake. Bansal sold the remaining part of this stake to Zerodha cofounder Nikhil Kamath.

Hero MotorCorp now owns around 40% stake in the EV startup. 

Founded in 2013 by Jain and Mehta, Ather Energy is one of the major players in the Indian electric two-wheeler market. Besides manufacturing and servicing electric two wheelers, the startup also operates its own charging infrastructure and is involved in storage, distribution and management of electric power and other ancillary services.

Ather Energy’s net loss surged 150% to INR 864.5 Cr in FY23 as against INR 344.1 Cr in the previous year. Meanwhile, operating revenue jumped 4.3X year-on-year (YoY) to INR 1,783.6 Cr during the year under review.

Ather Energy closely competes against Bhavish Aggarwal’s Ola Electric, which at the moment is dominating the EV two-wheeler segment in the country. It is pertinent to note that Ola Electric is also looking to go public and received the market regulator SEBI’s approval last week for its INR 5,500+ Cr IPO.

The post Exclusive: Ather Energy Converts Into A Public Entity As IPO Plans Gather Steam appeared first on Inc42 Media.

Netherlands-based Prosus, which is one of the biggest stakeholders in BYJU’S, has now written off its entire investment in the Bengaluru-based edtech startup. In a recent document, Prosus holds almost 10% (9.6%) in the edtech startup. 

“We impaired BYJU’S down to zero at the end of FY24. The fair value written down was $493 Mn for FY24. We have written down BYJU’S primarily because we have inadequate information on the company’s financial health, liabilities and future outlook,” Prosus shared in a press statement with Inc42.

To add some context, Prosus has invested around $536 Mn in BYJU’S since 2018. At BYJU’S peak valuation – $22 Bn, Prosus 9.6% stake would be worth roughly around $2.2 Bn. 

The fresh development comes close on the heels of financial firm HSBC casting serious doubt on the future of BYJU’S, assigning zero value to Prosus’ nearly 10% stake in the company.

“We assign zero value to BYJU’S stake amid multiple legal cases and funding crunch,” HSBC said in a note on May 21.

The development comes soon after BYJU’S raised a $200 Mn rights issue at a valuation of $225 Mn. This is a 99% discount to its peak valuation of $22 Bn.

Recently, US-based asset management company Baron Capital Group reduced the fair value of its investment in the edtech firm by 99.85% to $120 Mn as of March 31, 2024.

Last week, the edtech giant moved to Karnataka High Court challenging the order of the National Company Law Tribunal (NCLT) restraining it from going ahead with the second tranche of its $200 Mn rights issue.

On June 13, Inc42 reported that the NCLT directed BYJU’S to maintain the current status of existing shareholders and their shareholdings. 

BYJU’S has been grappling with fires on multiple fronts, including a looming debt crisis, impending mass layoffs, delayed salaries, a cash crunch and a bevy of legal and insolvency cases filed by its investors and vendors.

The post Prosus Writes Off Its Entire $500 Mn Stake In BYJU’S To Zero appeared first on Inc42 Media.

Delhi NCR-based logistics startup Ecom Express is in talks with existing investors Warburg Pincus, CDC Group, and Partners Group to raise a funding of about INR 350-400 Cr, sources told Inc42.

The discussions are in the final stages and the funding round could catapult Ecom Express’ valuation to over $1 Bn, making it the latest entrant to the country’s unicorn club, the sources said.

The startup intends to utilise the fresh funds to double down on reverse logistics and same-day delivery.

“The company will focus more on newer products in reverse logistics and same delivery. While reverse logistics has a better yield, there’s a growing demand for same day delivery in Tier-I and beyond cities,” one of the sources said. 

Reverse logistics is the process of moving goods back upstream from their typical final destination in the supply chain for various purposes such as returns, repairs, recycling, or disposal.

A detailed questionnaire sent to Ecom Express on the funding round didn’t elicit any response till the time of publishing this story. 

While Ecom Express is yet to file its financial statements for the financial year 2023-24 (FY24), Inc42 has learnt from sources that the startup turned EBITDA profitable during the year.

Founded in 2012 by Late TA Krishnan, Manju Dhawan, K Satyanarayana and Sanjeev Saxena, Ecom Express claims to have 3,000 delivery centres spanning 9.6 Mn sq. ft. of space. The logistics startup delivers packages to 27,000 pin codes in 2,700 cities and towns across the country.

The latest development comes almost a month after Inc42 exclusively reported that Ecom Express had partnered Skye Air for drone deliveries in Delhi NCR.

The startup last raised $39 Mn from Warburg Pincus, CDC Group, and Partners Group in 2022.

Last year, Ecom express appointed Ajit Chitkara as its managing director and chief executive officer following the demise of TA Krishnan. Earlier this year, it also roped in former founder of proptech venture Multiliving Technologies, Pankaj Singh, as the chief commercial officer (CCO). Last month, former Airtel vice president, product Pallavi Tyagi joined Ecom Express as the chief marketing officer (CMO). 

Ecom Express has raised a total funding of about $300 Mn till date and competes against the likes of publicly listed Delhivery, Xpressbees, and Shiprocket. 

The post Exclusive: Ecom Express In Talks To Raise INR 350-400 Cr From Existing Investors appeared first on Inc42 Media.

Three founders come together to launch a startup which is solving a real problem, the startup raises millions from VCs, launches many products and looks to scale up aggressively, but eventually the momentum is stalled and the startup has to wind down. 

This is a fairly typical and unremarkable montage of what happens to most startups. But ReshaMandi’s story is anything but typical, because instead of winding down, ReshaMandi is looking to respawn inside another company.

And in the process, investors in ReshaMandi are likely to be left with nothing to show for their capital, while employees that have waited for salaries for months might also be left empty-handed. 

Here’s a gist of what’s happening: Hit by a cash crunch and revenue challenges, ReshaMandi started laying off employees in June 2023. It offered employees a ‘chance’ to work without salaries for three months. The employees who did so found out that there was no cash for any of the pending salary payments. These employees are still awaiting their dues. 

ReshaMandi, which operates a B2B fibre, silk and yarns marketplace and other verticals for silk supply chain, scaled down over the past year. 

By December 2023, the workforce had been cut down by nearly 85%, and in March 2024, the few employees that were holding ReshaMandi together despite delayed salaries were given another ‘choice’ — Move from Bengaluru to Noida-based Genzr, operated by Genzr Solutions Private Limited, and get paid the salary backlog as a ‘signing bonus’. 

“It’s not just employees who are moving to Genzr. Even the two founders of ReshaMandi have joined Genzr and all key personnel have moved,” according to one of the dozens of former employees and other sources that Inc42 has spoken to over the past few months. 

It’s not that such deals are not commonplace, it’s just that Genzr — by all indications — is seemingly not in a position to pull off such a deal. 

In fact, till April 2024, Genzr Solutions Private Limited used to go by the name Top 12th Academy Private Limited, which was incorporated in 2009 as an education company.  There was no overlap in the business of ReshaMandi and Genzr (Top 12th Academy) till the latter amended its article of association in March 2024 to carry on the business of fibre and silk supply.

Founded in 2020 by Mayank Tiwari, Saurabh Agarwal, and Utkarsh Apoorva (who quit in 2022), ReshaMandi raised $40 Mn+ in equity funding from Creation Investments, Omnivore, Venture Catalysts and other VCs, as well as nearly INR 300 Cr ($25 Mn) in debt from venture debt investors and other lenders. 

In FY23, Genzr reported INR 50,000 in revenue — that is not a typo — whereas ReshaMandi reported INR 413 Cr in revenue in FY22 and in the past had claimed to have crossed INR 1,200 Cr in revenue in FY23. 

Worse still, employees who ‘joined’ Genzr were asked to do the same work they were doing at ReshaMandi. 

“The management is trying to recreate ReshaMandi in another startup as they don’t want to be associated with the previous corporate entity which ran ReshaMandi. So they are starting afresh in another company after burning all the funds raised for ReshaMandi,” one source told Inc42.

Are you starting to see why we said the ReshaMandi story is not simply a story about a failed startup? 

So what business does Genzr have paying lakhs of rupees of salary backlog for ReshaMandi? And why did a startup with millions in funding need such a drastic helping hand? Here’s what our investigation showed us.

Where’s The Funding? 

It was a yes or no question — “How many of you will be able to work without salaries for the next three months?” ReshaMandi cofounder Mayank Tiwari asked employees exactly one year ago. 

The question instilled fear and confusion among 400-odd employees of ReshaMandi, who till then were under the impression that the startup had already raised a new round which would set the company up for growth. 

The truth, as many employees alleged in conversations with Inc42, was that there was no money and what began as delays in salaries in June, worsened soon after with no salaries being paid at all.  

“I know people who had to take loans to survive in an expensive city such as Bengaluru, while the management didn’t have a clear response on the salary,” one former employee who worked at ReshaMandi until May 2023 and is still unpaid added. 

Sources told Inc42 that Reshamandi was facing a host of issues, with allegations ranging from lax corporate governance to financial mismanagement.

From 500 employees in January 2023 to around 100 by the end of the year, the company scaled down heavily. And in the process, 300-odd employees are still awaiting their final dues and salaries. Besides this, ReshaMandi is said to have failed to credit tax deducted at source (TDS) and provident fund contributions for these employees, despite deducting these amounts on the pay slip. 

In response to our questions, ReshaMandi said: “At the foremost, we would like to mention that ReshaMandi was established in 2020 to bridge the gap existing in the ecosystem today, solving for which could set India as the top silk superpower and would have helped us set our name in the agritech space.”

However, the company did not respond to specific questions around allegations of financial mismanagement, the involvement of Genzr Solutions, why Reshamandi expanded into new verticals and then scaled back in two years. 

The statement from the company further claimed that the first few quarters of 2023 saw tremendous growth where revenue grew by 3X compared to 2022. “However, we started to face some challenges which are a normal course of business for a company in our space i.e. collections from our retailers and the funding winter which impacted almost every startup in the ecosystem in one way or the other.”

ReshaMandi also claimed that there are no corporate governance issues or company restructuring. And it added: “Owing to the challenges we saw based on the financial crunch we are trying to navigate, we had to take some calls to keep the company afloat. Those decisions were taken in the best interest of the company and to be accountable for the fiduciary responsibility we have towards our shareholders, board members and lenders.”

But the company declined to explain the Genzr connection, nor did it tell us what happened to the millions that Reshamandi had already raised for its operations. 

Expansion Without A Plan 

ReshaMandi operates in the B2B fashion and textile supply chain space, which is rife with challenges related to scaling up. The high-profile controversy around Zilingo in 2022 and Accel-backed Fashinza’s hard pivot from fashion supply chain to fashion manufacturing are a testament to this.

The case once again typifies the misplaced optimism of startups that raised funds in an easy market in 2021 and then failed to live up to the expectations, thanks to a spray-and-pray approach and the lack of a clear product-market fit for many new verticals. Along the way, to rise up to the expectations of investors, startups have also turned to revenue inflation, double-booking revenue, invoice round-tripping and more. 

According to employees, ReshaMandi’s downfall was due to rapid expansion across verticals, immediately before and after it raised funds in October 2021. 

The company began as a crop advisory and supply chain platform for silk farmers, connecting them to reelers, weavers and manufacturers. It set up three new entities in March and April 2022 to manage new verticals — precision farming, financing, and a consumer brand, as shown above. 

Even before it had completed two years of operations and proven its supply chain model, the company had entered into territories that called for a completely different design thinking to develop products. 

Building a silk supply chain platform is leagues apart from running a D2C brand, or building an IoT-centric precision farming platform. While we can see the logic of building a vertically integrated platform for silk supply, ReshaMandi had not even ironed out the kinks in its primary business.

To add to these, Reshmandi also acquired a stake in Healios Wound Solutions LLP and launched beauty products under the brand SeriSkin, which is now manufactured by Esthetic Insights Private Limited, where ReshaMandi has no involvement.  

With these new verticals and millions of dollars in funding, there was pressure to grow. Naturally, ReshaMandi undertook extensive hiring and went on to launch ambitious programmes: 

• Set up a processing centre in Karnataka’s Ramanagara silk cocoon market, claimed to be Asia’s second-largest market of its kind
• Acquihired software development firm Hashtag to bolster IoT offerings, but the precision farming product has been wound down 
• Announced its foray into the Middle East and North Africa for silk supply; operations shut down as Reshamandi has scaled back

Most of these initiatives have either been phased out or transferred to other businesses, as seen in the case of SeriSkin.

Sources alleged that before it raised funding, the startup had around 200-250 employees. This count rose to around 600 by the mid of 2022. Teams were also sent to Paris and Dubai to represent ReshaMandi and bring in international business and promote the Resha Weaves D2C brand which has now been shuttered. 

Around this time, the company was also said to be in talks with Temasek for a Series B growth round in early 2023. But this round never went through. 

In August 2023, ReshaMandi cofounder Agarwal told a publication that Temasek will revisit the deal after a quarter, but given the current situation at ReshaMandi, this is unlikely to be on the table now. 

According to sources, the company fell victim to the growth-at-all-costs mindset, which drove it to inflate revenues in FY23 and FY22. It’s very likely that Temasek and other investors caught wind of the allegations now being raised by employees on social media and in their conversations with us. 

From Revenue Inflation To Fake Vendors

As of January 2023, ReshaMandi claimed to have revenue of INR 1,248 Cr in the first three quarters of FY23, and was targeting INR 2,000 Cr for the full year, as per its website. In comparison, the company reported revenue of INR 414 Cr in FY22 (March 2022). 

Incidentally, these projections, which were reported by ET in January 2023, have now been deleted from ReshaMandi’s website.

Screenshot of ReshaMandi’s Website

Former employees alleged that the revenue shown to investors and the public for FY23 was inflated through fake invoices, reporting pending collections as booked revenue invoice discounting, and sales to customers that never existed. The company is also said to have onboarded vendors that did not exist.

“Early last year, I was sent to check on our buyers in the Delhi NCR region. When I reached the location, I was shocked. The address housed a building with a rickety exterior. The outstanding amount from this buyer was almost half a crore,” one of the sources told us. 

The problem is compounded by the fact that most silk reelers, silk weavers, farmers and manufacturers deal in cash, as is the standard practice in the industry. Such cash-heavy models are typically more prone to revenue leakage and disparities in booked revenue and the collected revenue, as we have seen in multiple cases in the past two years.

Inc42 couldn’t independently verify these claims by employees around fake vendors because the startup is yet to file its FY23 financials with the Ministry of Corporate Affairs. 

Sources further claimed that ReshaMandi had a tough time in recovering payments from such sellers. There are other concerns which could be seen as red flags particularly related to financial controls. 

In March 2022, Reshamandi appointed former EY executive Ritesh Kumar Talreja as CFO, who quit within a year. He was replaced by former KPMG executive Samadrita Chakravarty, who quit within nine months. 

Other executive positions have also been vacated in recent months. For instance, Abhishek Kumar, the former SVP of marketing, and HR head Subramanya Srikan quit within seven and eight months of joining, respectively. This is in addition to the departure of cofounder Apoorva less than two years after starting the company.

Inc42 reached out to Chakravarty, who was CFO at ReshaMandi till October 2023, but did not receive responses about these allegations raised by employees. 

As stated earlier in the story, the company declined to comment on specific allegations and did not respond to questions about these discrepancies. 

Sources claim that ReshaMandi shut down most of its nearly 45 warehouses at the end of last year. The startup also shifted its registered office to a coworking space in Bengaluru, but it’s not clear how many employees are currently working there.

Reshamandi’s Streak Of Loan Defaults 

By all indications, ReshaMandi has all-but wound down operations across its various verticals. And it’s not just employees who are awaiting dues from ReshaMandi but also vendors and lenders.

As per sources, the startup has debt and trade payables to the tune of INR 250 Cr – INR 300 Cr to vendors and lenders. 

At least three venture debt lenders and another vendor have taken the company to the National Company Law Tribunal Court (NCLT) under Section 7 of the Insolvency & Bankruptcy Code, 2016. 

Northern Arc’s application pertains to a total debt of INR 14.4 Cr availed by ReshaMandi from Northern Arc. The debt was recalled through a notice dated July 7, 2023 pursuant to certain instances of default by ReshaMandi. The matter is currently pending with NCLT. 

Besides this, AU Small Finance Bank (AU SFB) has also filed an NCLT application against ReshaMandi to recover an amount of INR 9.7 Cr. Northern Arc, along with other creditors, holds a pari-passu charge over certain assets of Reshamandi that were hypothecated to secure borrowings from AU SFB. 

One of the above lenders told Inc42 that ReshaMandi is a delinquent borrower, which indicates that the company has fallen behind on repayments. “They have done business with high credit-risk vendors and sellers. And right now, they are not getting their money back,” the lender told Inc42. 

It must be noted that all venture debt investors have suffered. Stride Ventures and Innoven Capital were repaid the amount invested in ReshaMandi, Inc42 has learnt from the respective firms.

Decoding The Genzr Connection

Finally, the most striking aspect of the ReshaMandi meltdown is how the startup dealt with employees this year by forcefully transferring them to  Noida-headquartered Genzr — as mentioned at the beginning of this story. 

“In early 2024, we were told that ReshaMandi doesn’t have the money to pay pending salaries so we should resign and join Genzr. The management said we would get the pending three months of salary as a joining bonus from Genzr,” one such employee who joined Genzr from ReshaMandi told Inc42. 

No explanation was given for the transfer between the companies. But Genzr did clear the salary backlog for some employees who moved from ReshaMandi. 

The Genzr website doesn’t reveal much besides the fact that it is into the textile and apparel supply chain business, similar to ReshaMandi. This is despite the fact that Genzr Solutions Private Limited is registered to do business as an education company.

As per the MCA documents, Genzr made amendments in its articles of association in March 2024 to allow it to design, manufacture and trade in natural and artificial fibres, fabrics, textiles, and offer services in fibre supply chain with technology interventions for yarn manufacturers, fabric mills, and weavers, fibre farmers, and retailers. If that sounds familiar, it’s because this was ReshaMandi’s core business model. 

ReshaMandi’s two founders – Agarwal and Tiwari, as well as other management personnel, are now with Genzr, and are being paid by Genzr. Several sources alleged that ReshaMandi is still trying to recover its pending payments from customers through the employees being paid by Genzr today.

According to an offer letter from Genzr, seen by Inc42, the company’s HR director is Sophronia K, who is also the HR director of Reshamandi. 

So, has Genzr acquired ReshaMandi? And if so, how did it complete the transaction with no real revenue? And what about the VCs who had invested in Reshamandi? 

According to MCA records, Genzr’s directors are Kaustubh Das and Aditya Jaiswal, who were both appointed earlier this year. It’s not clear if they are related to Reshamandi, or why Genzr has stepped in to pay off the dues to Reshamandi’s employees. 

Incidentally, Genzr Solutions Private Limited has received INR 8 Cr (~$1 Mn) in funding in May 2024 from Ivy Icon Solutions LLP, a subsidiary of Hero MotoCorp.

We asked Hero MotoCorp why it chose to invest in a fashion supply chain company that seemingly had no operations till last year and was in an unrelated education business. Hero MotoCorp did not respond to the questions. 

Another Startup Bites The Dust

With ReshMandi’s debacle, numerous questions remain unanswered, which have primarily left employees with little to no recourse. Despite filing complaints against the company, sending numerous emails to HR and the founders, Reshamandi’s former and current employees find themselves out of options at this point. 

While some have considered legal action, they realise this would not be a swift solution. And many have lost hope of recovering their salaries and dues. 

The situation once again underscores the inherent challenges of the B2B fashion industry, and more specifically for the new-age tech companies heavily reliant on investor funding to scale up, and how this creates a pressure to show growth at all costs.

Incidentally, none of the investors who had backed ReshaMandi, responded to Inc42’s questions about the issues that plagued the Bengaluru-based startup.

Once again, an Indian startup’s failure has highlighted concerns about VCs investing without adequate due diligence — a theme that’s very common among startups that raised large early rounds in 2021. 

Of course, from a corporate governance point of view, ReshaMandi’s founders are also just as accountable for the mess. 

Does due diligence stop with the infusion of funds? Or should investors take responsibility about where the money has been used and whether employees that create value for their portfolio companies are indeed being paid and treated fairly? 

One also hopes that the ReshaMandi episode is the final nail in the coffin for the B2B fashion supply chain segment. There is plenty of evidence that this model is fraught with persistent challenges — from sourcing materials and establishing a robust network of genuine vendors and sellers to ensuring integrity of products during transit and storage and the ability to collect payments from vendors. 

These challenges have derailed startups and caused losses to investors in the past. Now, ReshaMandi finds itself in this less-than-august company.

Update | June 20, 4:20 PM

After our story was published, ReshaMandi shared additional clarification: 

Mayank Tiwari, cofounder of ReshaMandi, said, “We acknowledge that the company is facing severe headwinds in the journey but to make such allegations without proper evidence is tantamount to maligning the organisation name and also the individuals associated with it in the past and present. Hearsay from disgruntled employees to defame or malign the reputation of the org they leave cannot be the premise of work accomplished by the company since its inception. We have had big four doing Internal Audit, Process Control, Statutory Audits, Due Diligence over the whole course of Reshamandi. Multiple lenders, auditors have looked at our books without issues, while lenders continue to help us collect our receivables from the market together. Investors used to do periodic diligence of Reshamandi & it’s untrue to say that it was only done at time of fundraising.”

On the Genzr connection, the company added: “Founders and management remain committed to ReshaMandi, its shareholders, lenders & stakeholders. Founders are not absolved from our duties and continue to remain very much a part of ReshaMandi. We are very well working within the ambit of our fiduciary responsibilities and all efforts are towards reviving the company and settling all financial obligations in the near future. ReshaMandi is a functional entity and founders with current employees continue to be on its payroll. Many past and present business associates of ReshaMandi have engaged in various new ventures together or otherwise, jobs and we cannot control or comment on that.”

Edited By: Nikhil Subramaniam

The post Inside The Upheaval At ReshaMandi: A Questionable ‘2nd Innings’ After A $40 Mn Collapse appeared first on Inc42 Media.

Delhi NCR-based AVIOM Housing Finance has raised $5 Mn debt funding from InsuResilience Investment Fund, the startup’s regulatory filings revealed. 

AVIOM raised the funds by allotting 500 secured, listed US dollar denominated bonds to InsuResilience Investment Fund. 

InsuResilience Investment Fund, formerly known as Climate Insurance Fund, is an initiative by the German development bank KfW on behalf of Germany’s Ministry for Economic Cooperation and Development (BMZ). 

The objective of the fund is to reduce the vulnerability of micro, small, and medium enterprises (MSME) and low-income households to extreme weather events.

The fundraise comes almost a couple of months after Inc42 exclusively reported about AVIOM raising $10 Mn in debt funding from BlueOrchard Microfinance Fund.

Founded in 2016 by Kajal Ilmi, AVIOM provides housing loans to low-income households across the country. It claims to combine lending with social impact and caters to the niche informal housing market. The startup offers housing loans to individuals for home improvements, renovation, and sanitation. 

It primarily offers loans to women from predominantly semi-urban and rural regions who do not have any formal income documentation. It claims to have a live customer base of around 50,000.

AVIOM claims to have disbursed loans worth 80,000 loans across 13 Indian states till date. It has over 350 branches across the country. 

The startup counts BlueOrchard Impact Investment Managers, DFC, Triple Jump among its marquee investors. It is also backed by financial institutions like Vivriti Capital, Aditya Birla Capital, and Mahindra Finance Fund. 

In April last year, AVIOM raised $30 Mn in its Series D funding round led by Nuveen. It was a mix of primary and secondary investments and provided a partial exit to impact VC firm C4D Partners and Gojo & Co.

Prior to that, AVIOM raised $8 Mn in its Series C funding round. Overall, it has raised a total funding of $54 Mn till date. 

AVIOM competes against the likes of DMI Finance, Avanti Finance, and Moneyboxx. 

The post Exclusive: AVIOM Housing Finance Raises $5 Mn Debt From InsuResilience Investment Fund appeared first on Inc42 Media.

Bengaluru-based slice has raised $20 Mn (about INR 170 Cr) in a debt funding round from Neo Asset Management’s Credit Opportunities Fund, as per the fintech startup regulatory filings. 

The funding is part of a larger $30 Mn (about INR 255 Cr) debt round. While the startup has received $20 Mn, it is expected to get the remaining amount soon.

slice would utilise the funds for corporate purposes and working capital requirements, people aware of the development told Inc42.

slice didn’t respond to Inc42’s queries on the fundraise. 

The fundraise comes on the heels of Neo Asset Management closing the first Special Credit Opportunities Fund by raising INR 2,575 Cr from HNIs and family offices. 

The wealth management platform said that the credit fund focuses on investing in non-triple-A rated companies that are at least posting operating profits. 

Earlier this year, slice received the Competition Commission of India’s (CCI) approval for its merger with Guwahati-based North East Small Finance Bank. 

slice now awaits approval from National Company Law Tribunal (NCLT) for the merger. Following the merger, the fintech startup would get a banking licence. 

Founded in 2016 by Rajan Bajaj, slice (previously known as Slicepay) operated as a buy now pay later (BNPL) platform till 2022 and offered a credit card-esque prepaid payment instrument (PPI) that came with no annual fees, interest, or late charges. 

However, after the RBI cracked the whip on fintechs in 2022 and barred NBFCs from offering credit on PPI, slice discontinued the service.The regulatory headwinds forced it to change its business model and the startup began exploring merger options.

slice currently offers UPI payments, consumer credit, and a prepaid payment banking account through its app. 

The startup, last valued at $1.5 Bn, is backed by marquee investors such as Tiger Global, Gunopsy Capital, Blume Ventures, Advent International’s Sunley House Capital, Moore Strategic Ventures, and Anfa. 

The post Exclusive: Fintech Unicorn slice Raises $20 Mn Debt From Neo Asset Management appeared first on Inc42 Media.

KB NBFC, the non-banking financial company subsidiary of lending tech startup KreditBee, secured INR 268 Cr (about $32 Mn) debt funding from Yubi, Dzerv, Neo Group, OfBusiness, and Oxyzo, among others between April and June, the company’s regulatory filings revealed. 

The company received the latest tranche of INR 100 Cr last week from Dzerv and Neo Group after allotment of debentures.

The funding is likely to be used for working capital needs and to expand the business. 

KreditBee declined to comment on Inc42’s queries on the fundraise. 

It is pertinent to note that KB NBFC is one of the lending partners of KreditBee. Besides KB NBFC, KreditBee also has partnerships with Incred Finance, Vivriti Capital, Northern Arc, Pay U Finance, among others. 

The fresh development comes a little over two months after Inc42 exclusively reported about KreditBee raising $9.4 Mn from existing investors, including Advent International, Mitsubishi UFJ Financial Group (MUFG) Bank, Premji Invest, Motilal Oswal Alternates, NewQuest Capital Partners, and Mirae Asset Ventures.

Back then, a spokesperson of the startup confirmed the development and said the fundraise was part of its extended Series D round.

With the additional funding, KreditBee closed its Series D round at $209 Mn and was valued at around $700 Mn. 

To date, KreditBee has raised around $400 Mn in funding across multiple rounds and counts the likes of Arkam Ventures, TPG Growth, and Mirae Asset Ventures among its backers. 

Launched in 2018 by Madhusudan Ekambaram, Karthikeyan Krishnaswamy, and Vivek Veda, KreditBee serves credit and other personal finance requirements and claims to have a user base of over 30 Mn individuals, predominantly young professionals. This includes both salaried employees and self-employed individuals. 

The startup claims it has more than 11 Cr registered customers and over 1.2 Cr unique loan customers.

KreditBee competes with the likes of Navi, PB Fintech, LoanTap, and Capital Float. With an eye on going public, KreditBee is said to be looking to reverse flip to India.

The post Exclusive: KreditBee Subsidiary KB NBFC Raises $32 Mn In Debt Funding appeared first on Inc42 Media.

Times Internet is selling 100% of its stake in investment wealth platform ET Money for around INR 366 Cr (~$44 Mn) in a part cash and stock swap deal to wealth management platform 360 One WAM, the latter’s stock exchange filing revealed. 

360 One has paid INR 85.83 Cr in cash, with the remaining amount settled through the issuance of 35,90,000 fully paid-up equity shares. 

As a part of the deal, 360 One WAM is acquiring two entities of ET Money – Banayantree Services Pvt Ltd, and Moneygoals Solutions Pvt Ltd

The acquisition is expected to reinforce 360 One WAM’s (formerly known as IIFL Wealth Management) position as a premier wealth manager in the country. The acquisition is currently subject to approval.

360 One WAM is the wealth management arm of financial services provider 360 ONE. The parent company also invests in startups and counts BYJU’S, Swiggy, Policybazaar, Licious, Nykaa among other startups and listed companies.

Founded in 2014 by Mukesh Kalra and Santosh Navlani, Times Internet acquired moneysights, a personal finance company for an undisclosed amount. 

Post the acquisition, the business was renamed to SmartSpends. In 2016, SmartSpends was rebranded as ET Money. This move came in line with the team’s vision to create a mobile-first home for all the personal finance needs of the people in India.

ET Money claims to have over 9 Lakh transacting clients with more than 1 lakh revenue-generating users. It tracks an overall AUM of INR 70K Cr. The AUM invested in its platform is nearly INR 28K Cr of which mutual funds constitute more than INR 25K Cr. 

Besides offering a stock broking platform, it also offers a subscription-based advisory service – ET Money Genius. Currently, there are more than 75K active paying advisory clients with an AUM of INR 1,200 Cr. 

Times Internet’s Selling Spree

Times Internet, the digital arm of Times Group has been on a selling spree for some time now.

It began in January 2022, when it sold its dining and online restaurant booking service platform Dineout to food delivery giant Swiggy. Though neither Swiggy nor Time Internet disclosed the deal size, as per Inc42 sources, Swiggy acquired Dineout for somewhere between $150 Mn to $200 Mn. 

In February 2022, Times Internet sold its short video platform MX TakaTak to ShareChat for around $600 Mn. 

In June of 2022, D2C ecommerce aggregator Mensa Brands is all set to acquire MensXP, a content commerce platform, and iDiva from Times Internet. 

Last month, Inc42 exclusively reported that ecommerce giant Amazon was in the final stage of acquiring assets of its video streaming platform – MX Player. 

The post Times Internet Sells ET Money To 360 One WAM In A $44 Mn Deal appeared first on Inc42 Media.

Beauty ecommerce startup Nykaa has informed the stock exchanges that it passed a special resolution to reappoint Pradeep Parameswaran and Seshashayee Sridhara as a non-executive, independent director for a second consecutive term of three years from July 15, 2024 and July 26, 2024, respectively. 

Besides this, FSN E-Commerce Ventures Limited, the parent entity of Nykaa, also passed a special resolution to appoint Santosh Desai as a non-executive independent director for a term of five years effective from July 15, 2024. 

The exchange filing further revealed that the assent or dissent on the above passed resolution can be communicated by the members through e-voting between June 13, 2024 and July 12, 2024. The result of the outcome will be declared on or before July 15, 2024. 

Pramaeswaran who is the current global head of business development of Uber joined the board of Nykaa on July 15, 2021. He is also on the board of Nykaa E-retail Limited, one of the subsidiaries of FSN Ecommerce Ventures Limited. 

Sridharha joined Nykaa on July 26 and also holds the director position in Nykaa’s other subsidiaries – FSN Brand Marketing Private Limited, and FSN International Limited. 

Desai, whose Linkedin Profile states that he is currently the MD and CEO of Futurebrands India is also a director in D.B Corp Limited, Bidada Foods Pvt Ltd, Think9 Consumer Technologies Pvt Ltd, among others. 

Today’s notification comes almost two weeks after Nykaa announced the appointment of Desai as the independent director. Desai also served as the president of advertising agency McCann and brings with him over two decades of experience in the advertising industry.

Back then, commenting on the appointment, Nykaa founder and CEO Falguni Nayar said, “Santosh’s experience in understanding the interwoven relationship between culture and brands has helped build several iconic brands… We are confident that Santosh’s strategic guidance will help steer our vision to propel Nykaa’s brand equity and bolster our existing bouquet of brands for long-term global success.”

With Desai’s appointment, the ecommerce unicorn’s board comprises nine directors. Milind Sarwate, Anita Ramachandran, Seshashayee Sridhara, and Pradeep Prameshwaram are the other independent directors on the board.

The appointment and reappointment comes almost on the heels of the startup reporting a 1.2X jump in net profit year-on-year (YoY) to INR 9.07 Cr in Q4 FY24, while it plummeted by 48% on a quarter-on-quarter (QoQ) basis. Operating revenue jumped 28% YoY to INR 1,667.9 Cr but fell 6% sequentially.

The post Nykaa To Reappoint Pradeep Parameswaran and Seshashayee Sridhara As Independent Directors appeared first on Inc42 Media.

Update | June 11, 13:30 PM

Almost three weeks after Inc42 exclusively reported that Battery Smart is raising its Series B, today the startup announced that it raised $65 Mn in a Series B funding led by LeapFrog Investments. The equity round is a mix of primary and secondary investments and saw participation from new and existing investors, including MUFG Bank, Panasonic, Ecosystem Integrity Fund (EIF), Blume Ventures and British International Investment (BII).

Pulkit Khurana, cofounder and CEO said that the fresh capital will enable the startup to accelerate its expansion, enhance technology, and strengthen its market presence

Original Story | May 16, 16:08 PM

Delhi NCR-based battery-swapping startup Battery Smart is raising around INR 376.3 Cr (about $45 Mn) from existing and new investors in what seems to be a Series B funding round. 

As per the startup’s regulatory filing, the funding round will see participation from Acacia Inclusion Ltd, Japan’s MUFG Bank, Blume Ventures, The Ecosystem Integrity Fund (EIF), British International Investment (BII) and Panasonic-Kurashi Visionary Fund. 

Acacia Inclusion Ltd, MUFG Bank and Panasonic-Kurashi Fund are the new additions to the startup’s cap table. 

Post this fundraise, Aracia Inclusion Ltd will hold 9.83% stake in Battery Smart, while Blume Venture Partners will have 14.43% stake and EIF 6.56% stake on a fully-diluted basis.

As per Inc42 estimates, the funding round has valued the startup at around $350 Mn. 

The startup, in the filing, said that the capital will be utilised for business growth and expansion. 

A detailed questionnaire sent to Battery Smart on the funding round didn’t elicit any response till the time of publishing this story. 

The fundraise comes almost a year after the startup raised $33 Mn in its pre-Series B funding round from Tiger Global, Blume Ventures, EIF, and BII. 

In June 2022, Battery Smart raised $25 Mn in a Series A funding round led by Tiger Global, along with participation from Blume Ventures and Orios Ventures. Back then, the startup said it was aiming to add 100K customers to its network by 2025 and expand its geographical footprint.

Founded in 2020 by IIT Kanpur graduates Pulkit Khurana and Siddharth Sikka, Battery Smart offers battery swapping solutions and charging infrastructure across the country. Currently, it has the highest number of swapping stations in Delhi NCR. 

As per Battery Smart’s standalone financials, its operating revenue zoomed 597% to INR 55.4 Cr in the financial year 2022-23 (FY23) from INR 7.9 Cr in FY22. Meanwhile, net loss jumped 401% to INR 64.4 Cr in FY23 from INR 12.8 Cr in FY22. 

In the battery swapping space, Battery Smart competes against the likes of Chargeup, Sun Mobility, RACEnergy, among others.

The post [Update] Exclusive: Battery Smart Snags $65 Mn From LeapFrog Investments, Existing Investors appeared first on Inc42 Media.

Update | June 10, 11:00 PM

Nearly two months after Inc42 exclusively reported that Innoviti was looking to raise INR 115 Cr in Series E funding, the digital payments solutions provider on Monday (June 10) said it has initiated the second close of its Series E round with the participation of US-based Alumni Ventures.

“The second close of INR 75 Cr has been initiated with an investment by Alumni Ventures, USA,” it said in a statement.

The payment-focussed SaaS platform said additional investors are expected to join the Series E round in the coming weeks and the fundraise will be closed by June-end.

Meanwhile, the company also hinted at its IPO plans in its statement. “Series E is expected to be the last round before the company starts generating sufficient cash for its future growth, expected to happen in the next 12 months. The company will initiate its IPO planning subsequently,” it added. 

Innoviti said its enterprise business has been generating “operating profits for the past 10 quarters with operating profits of 18%”. It also said that the company’s electronics brand EMI mid-market business has been clocking an 8% month-on-month (MoM) growth and has captured 7% of the market in less than 12 months. 

“The online business is growing 10% month-on-month and is already operating at a contribution margin of 14% and expanding rapidly. Both mid-market and online business are growing 10% month-on-month and targeted to become operating profitable by September 24,” the statement added. 

Original Story | April 1, 06:01 PM

Digital payments solution company Innoviti is looking to raise INR 115 Cr ($13.7 Mn) in its Series E funding round from existing and new investors.

A company spokesperson told Inc42 that the round will comprise a rights issue and a preferential issue, and is expected to close by the end of April 2024.

Three new investors will join the company’s cap table following the fundraise, the spokesperson said but refused to disclose their names.

Earlier today, Innoviti announced raising INR 40 Cr via the rights issue, led by Bessemer Venture Partners and Patni Family Office. It also saw participation from early angels and founders.

Earlier, VCCircle reported that Innoviti was eyeing raising INR 124 Cr in a pre-IPO round. 

The company intends to utilise the fresh capital to fuel its mid-market and online expansion. Besides, it is also looking to expand its payment aggregator business. 

Last week, the company received the final approval from the Reserve Bank of India (RBI) for its payment aggregator licence. 

Innoviti operates payment aggregator ‘Innoviti Link’, which currently serves 2,500 online merchants.

The final approval for the licence came almost two years after Innoviti secured the central bank’s in-principle nod to operate as a payment aggregator. The company has been active in the digital payments space since 2002 and allows users to accept payments and integrate real-time sales data into critical business processes.

It also provides point of sale (PoS) terminals that enable retail enterprises to process card payments. Besides, it offers customer relationship management (CRM) solutions to retailers.

Innoviti last raised $45 Mn in its Series D funding round, led by Singapore-based equity firm Panthera Growth Partners.

Founded in 2002, the company claims to process over INR 75,000 Cr of purchase volume annually. It claims to have a network of over 20K retailers across 2,000 cities in India. 

The company is eyeing a public listing in the next 18-24 months. It is expected to post a revenue of $15 Mn in FY24. Innoviti claimed that its enterprise business has been profitable for the past 10 quarters, while the mid-market and online business combined are expected to break even in the next six months.

The post [Update] Innoviti Initiates Second Close Of INR 115 Cr Series E Fundraise, Hints At IPO appeared first on Inc42 Media.

Update | June 6, 03:30 PM

A week after Inc42 exclusively reported about Amazon acquiring MX Player, the ecommerce giant confirmed the development saying it has signed an agreement to purchase some assets of the video streaming platform. 

However, the company said that the transaction is not completed yet. 

“We are always looking for ways to introduce new products and services that help improve customers’ lives. We’re excited to continue to entertain India with the great local originals and exclusive content available across our Prime Video and miniTV services in India,” a spokesperson of Amazon said.

Original Story | May 29, 16:30 PM

After months of delays and speculations, US-based ecommerce giant Amazon is in the final stages of acquiring Times Internet-owned video streaming platform MX Player.

Sources told Inc42 that the ecommerce major is acquiring MX Player in an all-cash deal for a little over $100 Mn. 

“Everything’s in place and the due diligence process is over. A formal announcement will be made within a week,” people aware of the matter said. 

Post the acquisition, MX Player’s senior management will join Amazon. 

A query mail sent to Times Internet didn’t elicit any response till the time of publishing this story. Amazon India was not immediately available for a comment. The story will be updated on receiving responses.

It is pertinent to note that cash-strapped MX Player has been in the market for nearly a year for an acquisition.

Founded in 2011 as a video player by a South Korean firm, MX Player was acquired by Times Internet in 2018 for about $140 Mn. It was eventually remodeled to an ad-supported video streaming platform. 

In 2019, it raised $110 Mn funding from Tencent, which was considered one of the largest funding rounds at that time. As per media reports, the platform was valued at around $500 Mn during its last fund raise. 

Karan Bedi is currently the CEO of MX Player. He has been helming the top post since 2017.

It is important to note that Times Internet has been divesting its assets for some time now. Last year, it sold MX Takatak, Dineout, MensXP, iDiva and Hypp.

Amazon Resumed Acquisition Talks This Year

It was first reported last year that Amazon was planning to acquire MX Player to bolster its advertisement-supported MiniTV service in India. During the same time, MX Player announced that its chief operating officer Nikhil Gandhi stepped down from his role. 

However, as per a Mint report, the deal failed because of due diligence and valuation mismatch, resulting in MX Player to look for funding in the private market. The talks for the acquisition resumed again earlier this year.

While MX Player’s financial statement for FY23 is not publicly available, it incurred a net loss of $100 Mn on a revenue of $36.8 Mn in FY22. 

MX Player claims to have more than 150 Mn active users in the country. It competes against the likes of Netflix, Disney+ Hotstar, Amazon Prime, and Apple TV in the crowded Indian OTT market.

The post [Update] Exclusive: Amazon In Final Stages Of Acquiring MX Player From Times Internet For Over $100 Mn appeared first on Inc42 Media.

Bengaluru-based K-12 edtech startup Vedantu managed to narrow its consolidated net loss in the financial year ended March 31, 2023. The Vamsi Krishna-led startup’s loss declined 46% to INR 372.6 Cr in the financial year 2022-23 (FY23) from INR 696.2 Cr in the previous fiscal year. 

However, Vedantu also saw a decline in its revenue from operations during the year under review. Its operating revenue stood at INR 152.5 Cr in FY23, down 8% from INR 166 Cr in the previous year.

The startup’s primary source of revenue was the tuition fees for its online courses, which declined 13% to INR 144.3 Cr during the year under review from INR 166 Cr in FY22. 

Including other income, total revenue declined 9% to INR 174.7 Cr in FY23 from INR 191.8 Cr in the previous year.

Founded in 2014 by Krishna, Anand Prakash, and Pulkit Jain, Vedantu is an edtech startup which offers courses through online and offline medium. The startup offers tuition to school students and also courses for NEET and JEE entrance exams. Recently, it also started offering curated courses for kids 4 to 12 years of age. 

Where Did Vedantu Spend?

The primary reason for the drop in Vedantu’s loss was the decline in its expenditure. In FY23, the startup’s total expenses fell 38% to INR 553 Cr from INR 888 Cr in the previous fiscal year.

Employee Benefit Expenses: The edtech startup startup’s biggest expenditure was its employee cost. It spent INR 313.5 Cr on employee cost during the year under review, a decline of 36% from INR 489.2 Cr in FY22. 

It needs to be highlighted that Vednatu undertook multiple rounds of layoffs in 2022. As per Inc42’s layoff tracker, the startup fired around 1,000 employees in 2022. 

Advertising Expenses: Marketing expenses plummeted 58% to INR 76 Cr from INR 182 Cr in FY22. 

The Temasek-backed edtech startup acquired a majority stake in Karnataka-based test preparation platform Deeksha for around $40 Mn in 2022 to strengthen its offline presence. Last year, Vedantu also said that it was looking to further strengthen its offline presence by launching 30 more offline centres for JEE and NEET preparations across the country. 

The startup has raised around $300 Mn in multiple funding rounds till date. It entered the coveted unicorn club in September 2021 after raising $100 Mn in Series E round from Temasek-backed private equity firm ABC World Asia, with participation from existing investors Coatue Management, Tiger Global, GGV Capital, and WestBridge. 

In the K-12 space, Vendantu competes against the likes of BYJU’S, PhysicsWallah, and Unacademy. 

It is pertinent to note that most of the Indian edtech startups continue to post losses. While Unacademy posted a loss of INR 1,687 Cr in FY23, troubled BYJU’S is yet to release its numbers for FY23. PhysicsWallah continued to remain a profit-making entity, but its profit tanked 91% to INR 9 Cr in FY23.

The post Vedantu FY23: Loss Narrows 46% To INR 373 Cr, Revenue Also Declines appeared first on Inc42 Media.

Fintech unicorn Oxyzo saw its consolidated net profit surge 47% to INR 290 Cr in the financial year 2023-24 (FY24) from INR 197.5 Cr in the previous fiscal year.

The fintech arm of unicorn OfBusiness saw its operating revenue jump 59% to INR 903.3 Cr during the year under review from INR 569.9 Cr in FY23, as per the financial statements of the startup available on its website.

Including other income, the startup’s total revenue rose 58.5% to INR 904.1 Cr in FY24 from INR 570.4 Cr in the previous year. 

Founded in 2016 by OfBusiness founders Ruchi Kalra and Asish Mohapatra, Oxyzo provides loans to SMEs in the manufacturing and contracting sectors. 

Where Did Oxyzo Spend?

The startup’s total expenditure grew 66% to INR 514.2 Cr in FY24 from INR 309.4 Cr in the previous year.

Finance Cost: Being a lending-focussed startup, finance cost was the biggest expense for the startup. In FY24, Oxyzo’s finance cost jumped 73% to INR 317.3 Cr from INR 183 Cr in the previous year. 

Employee Benefit Expenses: Employee costs stood at INR 115.5 Cr during the year under review, an increase of 73% from INR 183.3 Cr in FY23. 

Oxyzo is building a full suite of financial offerings in the B2B space – from lending to capital markets. The startup has been diversifying its customer base to include micro, small-medium enterprises, mid-corporates, new economy and financial institutions. 

Oxyzo has expanded into the micro-enterprise lending segment through its investment in ZIEL Financial Technologies, which has a network of over 75 branches in Rajasthan, Uttar Pradesh, Haryana, Uttarakhand, and Punjab.

The startup claims to have disbursed $2.6 Bn across 40K+ nodes till date and leveraged this data warehouse to build a differentiated tech-enabled supply chain and embedded finance marketplace that aims to solve for the broader under penetration of formal credit in India’s broader economy.

It also claims to have an AUM of $360 Mn and is rated A+ by ICRA and CARE.

Oxyzo entered the unicorn club in March 2022 after raising a maiden funding of $200 Mn from Tiger Global, Norwest Venture Partners, Alpha Wave, Matrix Partners, and Creation Investments.

The post Fintech Unicorn Oxyzo’s Profit Zooms 47% To INR 290 Cr In FY24 appeared first on Inc42 Media.

In yet another top-level exit at Paytm, chief human resources officer (CHRO) Swati Rustagi is leaving the fintech giant, sources told Inc42.

Rustagi recently resigned from the Vijay Shekhar Sharma-led startup after a stint of over a year and is currently serving her notice period. Prior to joining Paytm, she worked with Amazon, Max Healthcare, Glenmark Pharmaceuticals, Johnson & Johnson, among others. 

Rustagi is likely to join US-based design software company Adobe, the sources said.

Query emails sent to Paytm and Adobe didn’t elicit any response till the time of publishing this story. Rustagi didn’t respond to our messages and calls. 

The development comes at a time when Paytm is going through a period of upheaval after the Reserve Bank of India (RBI) ordered a number of curbs on Paytm Payments Bank, bringing the payments bank’s business to a halt.

Consequently, besides the disruption in its lending business, Paytm has seen a number of key leaders quit the startup.

Earlier this month, Inc42 reported that Ajay Vikram Singh, Bipin Kaul, and Sandeepan Kashyap,  who were chief business officers handling three different verticals, left the company. 

These departures followed the resignation of president and COO Bhavesh Gupta. In addition, the company named new CEOs for its Paytm Money business, and also saw the exit of other business heads.

“We are committed to ensuring a sustained growth across key business verticals as we are going through a restructuring initiative that signals a reinvigorated approach under Paytm’s CEO. These changes are part of our approach to strengthen Paytm’s next line of leaders,” a spokesperson for Paytm said then.

Amid these exits, there have been some elevations as well. On Wednesday, Paytm Insider elevated its business head for live entertainment (intellectual properties and partnerships) segment, Varun Khare, to the position of chief operating officer (COO).

Last week, Paytm reported over 225% widening of its net loss to INR 550.5 Cr in Q4 FY24 from INR 167.5 Cr in the year-ago quarter. Revenue from operations declined 2.9% YoY to INR 2,267.1 Cr from INR 2,334 Cr in the same period last year. 

The startup’s payments business revenue grew by 7% YoY to INR 1,568 Cr in the fourth quarter, whereas financial services revenue dropped by 36% to INR 304 Cr YoY. 

The post Exclusive: Paytm CHRO Swati Rustagi Quits, Likely To Join Adobe appeared first on Inc42 Media.