Delhi NCR-based traveltech company RateGain has expanded its employee stock option plan (ESOP) pool by allocating 59,904 shares to the employees.

In an exchange filing on Monday (July 1), the company said it has allotted 23,880 equity shares to its employees under RateGain ESOP 2015 and 36,024 equity shares under the Stock Appreciation Rights Scheme – 2022.

“We hereby inform that the Nomination and Remuneration Committee of the Company vide its resolution dated July 01, 2024 approved the allotment to the eligible employee(s) of the Company of 23,880 Equity Shares of face value of Re. 1/- each, under RateGain Employee Stock Option Scheme – 2015 (‘ESOP 2015’) and 36,024 Equity Shares of face value of Re. 1/- each under RateGain – Stock Appreciation Rights Scheme – 2022 (‘SAR 2022’),” the filing said.

Consequent to the allotment, the paid-up share capital of RateGain will climb to INR 11.79 Cr from INR 11.78 Cr earlier.

As per the stock’s opening price on Tuesday, the newly-allotted ESOPs are worth nearly INR 4.49 Cr.

Founded in 2004 by Bhanu Chopra, RateGain is a global provider of SaaS solutions for travel and hospitality enabling them to accelerate revenue growth through acquisition, retention and wallet share expansion. The company claims it caters to more than 3,200 customers and has a presence in over 100 countries.

The development comes against the backdrop of reports that RateGain founder’s family members — Megha Chopra, its promoter, and Usha Chopra, part of its promoter group,  sold 3% of their total holding of 51.25% in March.

RateGain saw a more than two-fold jump in its net profit to INR 146.39 Cr in the financial year 2023-24 (FY24) from INR 68.40 Cr in FY23.

Meanwhile, revenue from operations grew 36% year-on-year to INR 255.81 Cr during the period under review versus INR 187.72 Cr in the previous fiscal.

It is pertinent to note that several new-age tech companies are banking on ESOPs to remake their employer brand image as job seekers become increasingly reluctant to join startups amid mass layoffs within the system.

A number of Indian startups such Delhivery, Paytm, Policybazaar, ideaForge and Nykaa have leaned on ESOPs recently to woo employees back to the startup ecosystem.

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Conversational engagement platform Gupshup has rolled out India’s first conversational buyer app on the government-backed Open Network for Digital Commerce (ONDC), aimed at boosting ecommerce inclusivity nationwide.

This app will enable buyers to discover, browse and buy products on the ONDC network via WhatsApp. It provides a shopping experience directly within the Meta-owned messaging platform, eliminating the need to download any additional apps.

Besides, Gupshup plans to soon offer enterprises to use this conversational commerce feature in their chatbots, making shopping easier for their customers.

The app is currently in Beta mode, meaning it is available to a limited group of users. At this stage, users can order food and beverages. They can share their location in a WhatsApp chat, browse nearby sellers, and make payments directly through WhatsApp.

Soon, users will also be able to use additional messaging services like Google RCS and voice commands to order. 

“India’s diverse population uses different mobile tools, varied languages, and possesses different levels of tech-savvy. But they all know how to chat via WhatsApp. Delivering conversational experiences via the messaging app is the only way to reach everyone,” said Gupshup’s CEO and founder Beerud Sheth.

“Gupshup’s Buyer App on ONDC brings the vast commerce network to users nationwide, usable in any language, quickly and easily. This will truly transform digital commerce on a population scale in India,” Sheth added.

Founded in 2004 by Sheth, Gupshup enables businesses to advertise, communicate, and converse with their customers by leveraging AI and CPaaS. It serves over 45,000 brands across the globe to deliver better customer experience, and increased revenue while saving costs. 

Its notable clients include Citibank, AkzoNobel, Khan Academy, Unilever, Dream11, Netflix, Flipkart, and Ola. With total funding of $486 Mn, it counts Tiger Global, Fidelity Management and Research Co. LLC, among others as its investors.

This comes as the latest addition to ONDC’s Buyer App portfolio with the likes of  Paytm, MagicPin, Pincode, Meesho, and Mystore already making the list. 

Notably, ONDC enables businesses to function as buyer apps and seller apps on its network. Buyer apps help sellers make their products discoverable to potential consumers nationwide.

Launched in 2021 under the aegis of the Department for Promotion of Industry and Internal Trade (DPIIT), ONDC is an open protocol-based network to enable local commerce across multiple segments, including grocery and mobility among others. 

Meanwhile, ONDC is expanding its services by entering new segments and onboarding new participants. Notably, it clocked a 23% month-on-month increase in the transactions on the platform in May. It posted a record 89 Lakh transactions across retail and ride-hailing segments in the same period. 

Startups in the likes of Paytm, Ola, PhonePe, Shiprocket, Delhivery, Dainik Jagran, Uber, IDFC Bank, Kotak, Dunzo, and Tata Neu have already integrated some of their services with the ONDC.

At the heart of all these is the burgeoning ecommerce landscape in India, expected to reach a size of $400 Bn by the end of 2030

The post Gupshup Rolls Out India’s First Conversational Buyer App On ONDC appeared first on Inc42 Media.

US-based retail major Walmart’s chief financial officer (CFO) David Rainey has said that ecommerce major Flipkart and digital payments giant PhonePe are on “path to profitability”. 

Speaking at an investor conference in London, parent Walmart’s CFO said that Flipkart’s “improving” losses are giving the the retail major a “lot of confidence” in what the ecommerce giant’s financial profile would look in a few years. 

“… They’re (Flipkart and PhonePe) all on their path to profitability. We’re seeing those ecommerce losses improve year after year after year, which gives us a lot of confidence in what the overall financial profile of this business looks like a few years from now,” said Rainey. 

On PhonePe, the Walmart CFO said that the fintech major is clocking “roughly $1.5 Tn of total payments volume (TPV)”. 

“They (PhonePe) are doing roughly $1.5 Tn of total payment volume… That has got to be up there as large as any payment company in the world, certainly outside of China. And how it’s resonating with customers there, it’s just amazing. So to be the largest payment provider in the largest market of the world, that’s exactly where you want to be,” Rainey added. 

He also expressed confidence over the growth clocked by PhonePe, saying Walmart is “pleased” with that performance of the fintech major. 

This comes a month after Walmart executives during a quarterly analyst call in May said that the initial public offerings (IPOs) of Flipkart and PhonePe could take a couple of years. During the same call, the CFO said Flipkart witnessed double-digit growth during the quarter ended April 2024. 

Interestingly, earlier this month, Rainey also said that Flipkart’s path to profitability would determine the timeline of the ecommerce major’s IPO.

This comes months after Flipkart group CEO Kalyan Krishnamurthy reportedly told employees that the ecommerce major was “close” to hitting profitability and had significantly trimmed its monthly cash burn. 

Overall, Flipkart continues to be one of the biggest players in the Indian ecommerce space and has been rapidly looking to expand its footprint in other categories, including quick commerce. The company last month added Google to its cap table. As per a report, the tech giant was part of a $1 Bn funding round, which valued Flipkart at $35 Bn to $36 Bn. 

On the financial front, the ecommerce giant’s B2C arm, Flipkart Internet Private Limited, saw its operating revenue surge 42% YoY to INR 14,845.8 Cr in the financial year 2022-23 (FY23). Meanwhile, loss reduced 9% to INR 4,026.5 Cr during the year under review from INR 4,419.5 Cr in FY22.

Meanwhile, PhonePe is another jewel in Walmart India’s crown. The fintech major is the biggest player in the digital payments space and has been accounting for nearly half of all the UPI payments almost every month.

However, PhonePe’s net loss grew 39% YoY to INR 2,795.3 Cr in FY23 while operating revenue rose 77% YoY to INR 2,913.7 Cr.

The post Flipkart & PhonePe On Path To Profitability, Says Walmart CFO appeared first on Inc42 Media.

Finnish telecom giant Nokia is reportedly considering shifting a large part of its global design capacity to India.

The move can be attributed to the presence of large designing talent in India, Economic Times reported, citing sources.

Nokia has a presence in five locations across India – Gurugram, Noida, Mumbai, Chennai, and Bengaluru – with two R&D centres in Chennai and Bangalore. 

The company is reportedly keen on localising more of its operations, recognising the need to move up the value chain in India. “Nokia could look to begin designing telecom network infrastructure equipment from its facility in Chennai,” one of the sources was quoted as saying.

 Currently, the majority of Nokia’s design work is carried out in Finland, the UK, and parts of the US. 

Nokia is prioritising design expansion in India while also considering increasing manufacturing. The company is building its local supply chain through its ongoing localisation efforts. 

Nokia already manufactures 5G/4G radios and GPON optical line terminals for both domestic and global markets in India, in partnership with Foxconn.

The company has manufactured over 7 Mn telecom network equipment units in India to date, with about 40% of these being exported.

India is a lucrative market for companies in the telecom space because of the country’s large telecom subscriber base. The country’s telecom subscriber base crossed the 1.2 Bn mark in April this year, as per the Telecom Regulatory Authority of India (TRAI). 

The latest development comes at a time when India is emerging as a global manufacturing hub. 

iPhone maker Apple has been gradually scaling up its manufacturing operations in the country, with India now accounting for about 7% of total iPhones produced globally. Apple manufactured iPhones worth INR 1 Lakh Cr in India last year and recorded a revenue of INR 49.3K Cr in FY23.

Besides, Google has also announced its decision to manufacture Pixel 8 in the country. Even Chinese manufacturers are setting up manufacturing plants in India. BBK Group, which owns Oppo, Vivo, and Realme, has partnered with Dixon Technologies and Karbonn Group for smartphone production. 

The electronics manufacturing sector in India is projected to reach $300 Bn by 2026. The smartphone industry alone is expected to create 1 Mn direct jobs by 2025.

India’s smartphone market, the world’s second-largest, shipped 146 Mn units in 2023. Despite a 2% year-on-year decline, the market is expected to recover in 2024 with an estimated 5-8% growth.

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Private equity firm Warburg Pincus is reportedly looking to lead a funding round of $100-150 Mn (about INR 833 Cr to INR 1,250 Cr) in SoftBank-backed B2B SaaS startup Whatfix. 

The round will be a mix of both primary and secondary transactions.

Citing sources close to the matter, ET reported that SoftBank is also expected to participate in the fundraise, while early investors Helion Venture Partners and Eight Roads Ventures are set to make partial exits. 

It is pertinent to note that SoftBank holds more than 13% in the Bengaluru-based startup.

The report further added that Whatfix is expected to raise primary capital at a valuation of $800 Mn.

“Warburg has been engaging with Whatfix for a while and has issued the term sheet now. They are set to lead the round,” one of the sources told ET.

In September last year, it was reported that Warburg Pincus had early stage talks with Whatfix.

This development follows deal activity among several SaaS unicorns, including Innovaccer and Icertis. SoftBank may increase its stake in Icertis, while US health and insurance giant Kaiser Permanente is expected to lead a new funding round at a flat valuation.

Founded in 2013 by Khadim Batti and Vara Kumar, Whatfix generates revenue through subscriptions and professional services provided to businesses. The digital adoption platform offers solutions for onboarding new customers, effective training, and enhanced user support by displaying contextual content at the moment of need. The startup claims to serve several Fortune 500 companies with its solutions.

In FY 2023, the B2B SaaS startup reduced its net loss by 53% by lowering expenses. The startup reported a net loss of INR 328.33 Cr for FY23, compared to INR 706.26 Cr in FY22. 

The company saw a 65.14% increase in operating revenue, rising to INR 284.74 Cr in FY23 from INR 172.42 Cr in FY22.

Whatfix has raised a total funding of nearly $140 Mn till date. Besides SoftBank, the startup counts the likes of Peak XV, Eight Roads Venture, F-Prime Capital, Anupam Mittal, Cisco Investments and Helion Ventures among its investors.

With its vibrant startup ecosystem and burgeoning talent pool, India has emerged as a key player in the global SaaS landscape. Government initiatives, vertical-specific solutions, and a focus on security and compliance are driving this growth. 

The Indian SaaS ecosystem has the potential to generate $50 Bn – $70 Bn in revenue and $500 Bn in enterprise value by 2030. With this growth, India can become the second-largest SaaS ecosystem globally. 

The post Warburg Pincus Likely To Lead $100-150 Mn Funding In SoftBank-Backed Whatfix: Report appeared first on Inc42 Media.

Community and security management startup Mygate reported a 35.3% rise in operating revenue to INR 96.2 Cr in the financial year 2023-24 (FY24) from INR 71.1 Cr in the previous fiscal, helped by growth in its key revenue streams of advertising and software-as-a-service (SaaS) subscriptions. 

The startup earned INR 85.4 Cr as enterprise revenue, which increased 35.1% year-on-year (YoY), as per the startup’s business summary. This includes income from enterprise sources, including resident welfare associations, security agencies, and builders.

On the other hand, revenue from consumer services, which includes utility bill payments, maintenance bills, and home services, also grew almost 38% YoY to INR 10.9 Cr in FY24.

Mygate said its total revenue stood at INR 109.1 Cr in FY24, an increase of 41% from INR 77.2 Cr the previous year.

Meanwhile, the startup claimed to have reduced its cash burn by 85% during FY24, with zero cash burn recorded in the March quarter (Q4).

However, it continues to be a loss-making entity. Mygate posted an adjusted EBITDA loss of INR 20.4 Cr as against INR 71.3 Cr reported in the last fiscal.

It claimed that between FY21 and FY24, its losses decreased by 81%. 

“Overall, the company’s financial performance reflects a positive growth trajectory. With significant revenue growth, efficient expense management, reduction in losses, and effective cash flow management, the company is well-positioned for continued success in the future,” said Mygate in its FY24 business summary.

Where Did MyGate Spend?

The startup managed to decrease its total expenses by almost 13% to INR 129.5 Cr in FY24 from 148.5 Cr in the previous year.

Its employee benefit expenses continued to be the biggest expense head. Mygate’s employee cost, excluding ESOPs, stood at INR 66.4 Cr in FY24 as against INR 79.6 Cr in the previous year.

It is pertinent to note that the startup laid off 30% of its employees in February 2023, which reportedly shrunk its total headcount to around 400 from 600 earlier.

Founded in 2016 by Vijay Arisetty, Vivaik Bharadwaj, Shreyans Daga, and Abhishek Kumar, Mygate offers security solutions for apartment complexes at entry and exit gates. It replaces other security-related systems such as RFID cards, biometrics and vehicle stickers.

In the last few months, there have been a few top-level rejigs at the company. Earlier this year, Mygate cofounder and former chief operating officer Kumar took up the position of CEO in the company, with cofounder and former CEO Arisetty promoted to the role of the chairman. Earlier this week, Inc42 reported that Arisetty has taken up the role of cofounder and CEO of fintech startup Aurm. 

Mygate said that the previous two years have been “what in the startup world is thought to be boring” – optimising expenses, lowering costs, and responsibly growing revenue. It said that with the organisation maturing, it would look forward to doing more of the same.

However, the startup’s other expenses grew 7.8% YoY to INR 61.5 Cr in FY24. The company did not provide a breakdown of these expenses.

Outlook

Mygate projects its revenue to grow 75% YoY in FY25.

“We are a startup at heart, and when any opportunity arises, we will look for areas where we can innovatively make a difference. Over the past few months, we have begun to pilot a large new initiative that will expand the foundations of the company, and take the magic of Mygate beyond gated communities, too,” said Mygate.

The startup claims to be the largest community management app in the country with a presence in over 4 Mn homes.

Mygate competes with the likes of Gate Keeper, NoBrokerHood, and JioGate. The startup has raised over $79 Mn in funding till date. 

The post Mygate’s Operating Revenue Jumps 35% To INR 96.2 Cr In FY24; Cost Optimisation Continues appeared first on Inc42 Media.

Early-stage venture capital (VC) firm Huddle Ventures said its Fund II has received strong response from investors and has been oversubscribed by 20% ahead of its final close. 

Launched in mid-2023, the fund had an initial corpus of INR 100 Cr for investment in 20 startups. However, the VC firm has activated the green shoe option following the oversubscription and is aiming for a final close at INR 150 Cr in the next four to eight weeks.

The fund has received commitments from family offices, founders, and high-net-worth individuals (HNIs), Huddle Ventures said.

The fund will have an average ticket size of $500K, extendable up to $1M, including follow-on investments, per company. It will invest in consumer brands, fintech, agritech, and healthcare startups.

The VC firm aims to deploy the fund’s entire corpus by early 2026.

Founded in 2017 by Ishaan Khosla and Sanil Sachar, Huddle Ventures launched its Fund I in 2021 and invested in a total of 25 startups. It counts the likes of sexual wellness D2C brand Bold Care, coffee chain Blue Tokai, EV companies Cell Propulsion and RACEnergy, and D2C brand CureSkin in its portfolio. 

Earlier, Huddle Ventures used to co-invest in startups with small cheques of approximately $150K-$200K. The VC firm has now changed its investment methodology.

Speaking to Inc42, its general partner Khosla said, “Earlier, we actively deployed smaller sums as compared to what we are doing today. And our investment methodology has evolved into largely being the lead/co-lead investor as part of the new companies.”

Khosla said Huddle Ventures has always tried to be among the first backers of businesses, and it is now doubling down on this strategy.

He said the VC firm has already made six investments, including in insect protein bioprocessing startup Greengrahi and D2C skincare brand Asaya, from its Fund II.

Speaking about the VC firm’s investments in the crowded D2C space, general partner Sachar said Huddle Ventures was fortunate to be the first backer of brands like Perfora and Bold Care. This, he said, helped the firm take a long-term view while making investment decisions. 

“The cliche is that we have to evaluate the founders from early on, their ability to hire a team around that has a sense of ownership, their ability to understand the space they are operating in. The other evaluation is what Huddle is bringing to the table for the companies. Because of these evaluations, 83-85% of our portfolio today has gone and raised successive rounds since we entered, 65% of them are in series A, B and C stages,” said Sachar.

Huddle Ventures, with its Fund II, aims to continue supporting early-stage ventures, enabling them to grow into established organisations. 

The latest development comes at a time when the Indian startup ecosystem is struggling to get out of the grip of the funding winter. Despite this, a number of new funds have been launched in recent times to invest in the country’s startups.

Last month, 360 ONE Asset launched a secondaries fund, ‘Special Opportunities Fund-12’, with a target corpus of INR 4,000 Cr.  Avendus also launched its late-stage ‘Future Leaders Fund (FLF) III’ with a total corpus of $350 Mn (about INR 3,000 Cr). 

Prior to that, Caret Capital and Ev2 Ventures came together to launch a new $50 Mn India-focussed fund.

The post Huddle Ventures’ Oversubscribed Fund II To Soon Close At INR 150 Cr appeared first on Inc42 Media.

SaaS unicorn Zoho has rolled out a host of product offerings for its global enterprise customers, including revamped Zoho CRM for Everyone, to boost customer growth and improve their experience.

Customer relationship management (CRM) has been one of Zoho’s primary revenue generators among its various other offerings, and the company said its new capabilities are aimed to improve visibility for every stakeholder in the customer journey, mitigate gaps in coordination and reduce turnaround time.

The company claimed India to be one of Zoho’s fastest growing markets, and particularly for its CRM product offering, the country stands as the second largest market, with a 33% YoY growth in customers in 2023.

“Zoho CRM for Everyone breaks down those silos for the first time, enabling different teams in a sales process to contribute productively by reducing CRM complexity and encouraging participation,” said Mani Vembu, chief operating officer at Zoho.

The company has also enhanced its offerings for professional developers within Catalyst, its pro-code full-stack development platform and Zoho Apptics, an application analytics solution that enables developers to track the in-app usage and performance of applications.

Sridhar Vembu, CEO at Zoho, said, “Businesses are looking for unified solutions that help them optimise for value, maximise their competitive advantages, and tap into new market opportunities amid tough economic conditions.”

He added, “Zoho CRM for Everyone, for instance, is the first true democratisation of the CRM paradigm and helps unify all customer operations teams onto the CRM to deliver better customer experiences. Likewise, the upgraded Catalyst and the privacy-focused Apptics solution work hand-in-hand to deliver an unmatched developer experience from concept to code, and deployment to analytics.”

Zoho’s announcement comes right after its US peers Salesforce trimmed its second quarter forecast and Freshworks cut its annual outlook, in May 2024, with reason to weak client spending and inflationary pressures.

Earlier this year, Zoho’s sales crossed the $1 Bn mark in the financial year ended March 31, 2023. The company reported an operating revenue of INR 8,703.6 Cr ($1 Bn) in the financial year 2022-23 (FY23), a jump of 30% from INR 6,710.7 Cr in FY22.

Founded in 1996, the Sridhar Vembu-led company was initially known as AdventNet INC. Zoho has various product offerings ranging from web applications for sales, marketing, finance, legal, to suites, mobile applications and such.

Last month, it was reported that the Chennai-based company was looking to enter the semiconductor space and was seeking approval to get incentives under the production linked incentive (PLI) scheme for setting up a chip fabrication plant. 

Prior to that in April, Vembu announced the launch of his new venture Karuvi, a power tools manufacturing company, which is a mechatronics startup that designs and builds consumer and industrial power tools and other mechanical systems. 

In February, the company also launched a new business division called Zakya in India, to cater to the retail businesses. Zakya offers a POS (point of sale) solution for retail stores to streamline their day-to-day operations and easily monitor them from one place.

The post Zoho Revamps CRM Product With Bigger Focus On Collaboration Across Sales Teams appeared first on Inc42 Media.

As a nation, India is taking huge strides digitally. This is obvious from independent research reports estimating that the digital economy of India will contribute nearly 20% from 8% currently to its GDP by 2030.

Among other technologies, the cloud has played a big role in enabling and accelerating the digital economy and forecasts from analyst firms indicate a monumental shift towards embracing public cloud services. 

Research firm IDC, for example, predicts that the public cloud services market in India will reach a mammoth $17.8 Bn by the year 2027, growing at an impressive CAGR of 22.9% from the year 2022 till 2027.  

However, despite the growing adoption of cloud, many Indian organisations are still grappling with common concerns centred around cost, risk, and security.

The Cost-Risk-Security Imperative

Often it has been observed that though the cloud promises enhanced flexibility and responsiveness many organisations in India remain apprehensive about migrating from traditional data centres. This reluctance often stems from perceived costs and risks associated with cloud adoption.

Contrary to conventional beliefs that on-premises data centres offer superior security, cloud providers can deliver superior security measures that ensure round-the-clock data protection while adhering to stringent industry and regulatory standards. Through robust service level agreements (SLAs), organisations can gain greater control over their applications and data and mitigate the risks of unauthorised data access. 

Cloud service providers invest heavily in state-of-the-art security infrastructure, employing a team of cybersecurity professionals dedicated to staying ahead of evolving threats. This expertise translates to a higher level of security compared to what many businesses might be able to achieve on their own, especially for smaller organisations. 

Cloud providers have sophisticated security monitoring systems in place that can detect and respond to security threats in real time. These systems analyse network traffic for suspicious activity, identify potential vulnerabilities, and automatically trigger security protocols to mitigate threats. 

This continuous vigilance provides a significant advantage over relying solely on in-house security personnel. Cloud infrastructure is also scalable, allowing resources to be provisioned and de-provisioned rapidly. In the event of a cyberattack, cloud providers can quickly isolate affected systems and scale up resources to maintain service and business continuity. 

This redundancy and scalability mitigate the risk of downtime and data loss associated with data centre breaches. 

There is also a misconception that on-premise solutions are inherently more cost-effective. This hypothesis is far from the truth.   A comprehensive evaluation of the total costs reveals hidden costs such as maintenance, upgrades, security, and performance optimisation.  

In this context, cloud migration, when viewed holistically, emerges as a financially prudent choice, offering potential cost savings and operational efficiencies that transcend traditional infrastructural limitations.

Tailoring Cloud Solutions To Unique Organisational Needs

For organisations attempting to move to the cloud, a one-size-fits-all approach in the adoption process is impractical. Hence, collaboration with cloud providers is crucial for organisations contemplating migration. 

They must choose their path towards the cloud meticulously: these should encompass upgrades, optimisation, and modernisation. Each component must be tailored specifically towards meeting the unique needs of each organisation. This is imperative for a successful cloud migration. 

Within the cloud landscape, Software as a Service (SaaS) has emerged as a preferred deployment model for new applications, with companies expressing a preference for scalable, subscription-based solutions. 

In the above-quoted IDC study, SaaS was the largest component of the overall public cloud services market. The SaaS model helps organisations with access to best practices, which previously was the prerogative of large enterprises. 

This enables and empowers organisations of all sizes to drive efficiency and innovation. The SaaS model also enhances cost savings, supports a flexible workforce, eliminates implementation and maintenance costs, and provides improved collaboration capabilities. 

Hence, for organisations in India aiming to enhance efficiency and agility, SaaS has emerged as a preferred deployment model. The IDC study previously quoted identifies SaaS as the largest component of all public cloud services markets. 

The Value Of Hybrid Cloud Management

With hybrid clouds being the norm rather than the exception, maintaining visibility and control across disparate environments can be difficult. Businesses struggle to monitor performance, ensure compliance, and optimise resource utilisation. 

Managing separate tools and processes for on-premises and cloud resources increases complexity. Siloed operations make it difficult to achieve consistent automation and orchestration across the entire IT ecosystem. 

The integration of different environments introduces new security concerns. Businesses need robust security measures that seamlessly integrate across both cloud and on-premises infrastructure. 

Hybrid cloud management solutions bridge the gap between on-premise and cloud environments, by offering a consolidated view of all IT resources, both on-premise and in the cloud. 

This enables businesses to monitor performance, manage deployments, and automate workflows across their entire hybrid infrastructure. By offering standardised tools and processes for managing cloud and on-premise resources, hybrid cloud management solutions streamline operations. 

This translates to increased efficiency, reduced operational costs, and faster time to market for new services. Additionally, by providing a holistic view of resource utilisation across the hybrid environment, businesses can identify and eliminate inefficiencies. 

This leads to optimised resource allocation, reduced cloud costs, and improved return on IT investments. 

The Importance Of FinOps

Cost is also one of the major considerations for evaluating the benefits of a cloud-driven process. Hence, cloud governance is important as left unchecked, cloud costs can spiral out of control. Here is where FinOps can play a vital role. 

FinOps isn’t a product or software; it’s a cultural and operational shift that fosters collaboration between finance, IT, and business teams. It emphasises continuous optimisation of cloud costs by providing a framework for informed decision-making. 

Cloud costs are tracked and allocated transparently to specific teams or projects. This fosters a sense of ownership and encourages responsible cloud resource usage. 

Cloud spending is also aligned with business objectives. FinOps helps identify opportunities to leverage cost-effective cloud services while ensuring optimal performance and value for the business. 

More importantly, FinOps is an iterative process. Costs are continuously monitored, analysed, and optimised through regular reviews and adjustments to cloud resources and pricing models.

Over some time, organisations adhering to FinOps principles can identify and eliminate wasteful spending on underutilised resources or poorly optimised configurations. By leveraging the cost-saving features of cloud providers and implementing right-sizing strategies, businesses can significantly reduce their cloud bills. 

Teams are empowered to understand their cloud usage patterns and make informed decisions about resource allocation. This promotes collaboration and eliminates finger-pointing when it comes to cloud bill management. 

FinOps also equips businesses with data-driven insights into their cloud spend. This allows for better forecasting, budgeting, and selection of the most cost-effective cloud services and pricing models based on evolving business needs.

In Conclusion

In the cloud migration journey, selecting the right cloud service provider is critical. Factors such as customer references, flexibility, integration capabilities, support services, robust security, certifications and compliance frameworks must be meticulously evaluated. 

For instance, products or platforms enabling cloud-certified Enterprise Information Management applications as managed services in private or public clouds can be extremely effective in cloud-based migrations. These platforms offer a seamless transition path for organisations seeking enhanced security, reduced TCO, and improved operational resilience.

As India marches towards a cloud-centric future, organisations must overcome their traditional biases. The cloud, with its promise of improved security, enhanced data protection, and operational efficiencies, is poised to become the standard backbone for businesses across industries.

The post Embracing A Cloud-Driven Future appeared first on Inc42 Media.

Traveltech company RateGain’s consolidated profit after tax (PAT) zoomed 48% to INR 50.02 Cr in the quarter ended March 31, 2024 (Q4 FY24) from the INR 33.78 Cr profit it reported in the year ago. 

In Q4 FY24, RateGain saw a 24% jump in profits from the previous quarter’s INR 40.42 Cr. For the full fiscal year of FY24, the company’s profits more than doubled to INR 146.39 Cr from FY23’s INR 68.40 Cr. 

RateGain’s operating revenue surged to INR 255.81 Cr in the quarter, up 36% year-on-year (YoY) from Q4 FY23’s INR 187.72 Cr and 1.5% quarter-on-quarter (QoQ) from Q3 F24‘s INR 252.02 Cr. 

Meanwhile, its expenses also increased marginally in the quarter to INR 211.40, a 0.2% sequential increase from last quarter’s INR 210.86 Cr. However, the number is up 30% YoY from Q4 FY23’s INR 161.88 Cr. 

In tandem with the increase in its profits for the full fiscal year, the startup’s operational revenue grew 69% to INR 957.03 Cr in FY24 from INR 565.12 Cr in the previous year. Total expenses also grew to INR 809 Cr in FY24, a 56% increase from previous fiscal’s INR 517.8 Cr. 

The company’s earnings before interest, tax, depreciation and amortisation (EBITDA) for the quarter stood at INR 54.2 Cr, up 68% YoY from Q4 FY23’s INR 32.2 Cr. Its EBITDA margins also expanded to 21.2% from previous quarter’s 17.6%.

Post the announcement, the startup’s stocks were trading 5.70% higher at INR 775.50 during the intra-day trading session on May 21. The RateGain stock hit a high of INR 810 per share around 2 PM on Tuesday, before settling slightly lower. 

For the uninitiated, RateGain offers SaaS solutions for the travel and hospitality industry. The platform claims to work with more than 3,000 customers and 700 partners spanning 100 countries.

Commenting on the company’s financial result, CEO Bhanu Chopra said, “FY24 was a transformative year for RateGain and it would not have been possible without the combined effort of our global teams to continuously deliver value to our clients.” 

The company said that it witnessed strong traction across the services it offers to online travel aggregators (OTAs), airlines and car rentals. Further, it said that it acquired 337 new customers during the quarter. Fresh customers for the company include Yatra, Rental, and Flyr. 

“We continue to see robust revenue growth coupled with strong margin expansion, clearly demonstrating the value we are delivering to our customers… The company continues to witness significant improvement across key operating metrics including customer retention and revenue diversification. With focused execution we witnessed doubling of our contract wins in the past year powered by healthy growth from key markets and a strong demand for our products in emerging markets positioning us well for future growth opportunities,” RateGain’s CFO Tanmaya Das said.

The quarter saw members of the promoter group offloading 3% stake. Megha Chopra, one of the company’s promoters, and Usha Chopra, part of the promoter group, together divested shares equivalent to 3% stake out of the total holding of 51.25%.

The post RateGain FY24 Results: Profits More Than Double To INR 146 Cr appeared first on Inc42 Media.

Market intelligence platform Tracxn Technologies reported a profit after tax (PAT) of INR 1.42 Cr in the quarter ending March 2024 (Q4) in the financial year 2023-24 (FY24). This represents a sequential decline of 36% from Q3 FY24’s INR 2.2 Cr. 

However, on a YoY basis, Tracxn has reported a 13% increase in net profits from Q4 FY23’s INR 1.25 Cr. 

For the complete fiscal year of FY24, Tracxn’s PAT shrank to INR 6.50 Cr, down 80% from the net profit of INR 33.09 Cr it recorded in the previous fiscal. 

However, its operational revenue zoomed by 7% to INR 87.03 Cr in the fiscal from FY23’s INR 81.18 Cr. Its net expenses also witnessed a similar increase, growing 3% to INR 78.35 Cr from last year’s INR 75.72 Cr. 

Tracxn’s operating revenue sank during the quarter to INR 20.31 Cr, a 3% quarter-on-quarter (QoQ) depreciation from last quarter’s INR 21.1 Cr. 

The number is also marginally down YoY from the INR 20.34 Cr it made in the corresponding quarter of the previous fiscal. 

On the other hand, the startup’s total expenses rose to INR 19.68 Cr during the quarter, up 2% QoQ from last quarter’s INR 19.32 Cr, again marginally down YoY from the INR 19.70 Cr in the year-ago period. 

Founded in 2013 by Abhishek Goyal and Neha Singh, Tracxn is a business intelligence platform that tracks companies across the globe. Its customer base includes private market investors such as venture capital and private equity firms and investment banks as well as corporates, government agencies, government banks, academic institutions, and startup accelerators.

This is the first fiscal where the India market accounted for the maximum share of Tracxn’s revenue. 

The company claimed that Q4 FY24 was the quarter where it acquired a maximum number of customers, precisely 88. With the addition, Tracxn’s customer base increased to 1,313 from last quarter’s 1,224. 

From a geographical lens, its revenue from India grew 14% YoY, accounting for 34% of its revenue for FY24. Contribution from the American countries stood at 32%, while the Europe, Middle East, and Africa (EMEA) region brought in 23% of its total revenue. 

Besides its focus on big ticket accounts, the company also announced that it has set up  a separate team to focus on  acquisition and expansion of customers in the startup segment. 

It reasoned the introduction of this separate team to it witnessing a high volume of inbound leads from startups which require differentiated use cases and workflows.

Further, the quarter also saw the company introduce its new offering Tracxn Lite for PLG (Product-Led Growth). Under this, Tracxn users get restricted access to the platform, with limitations like daily hits for profile views, exports and certain platform modules. 

It claimed that the user base for Tracxn Lite has grown to over 20K user sign ups since introduction in December 2023. Its monthly active user base has also crossed 8,000. 

The post Tracxn FY24 Results: Profits Shrink By 80% For Full Year appeared first on Inc42 Media.

Sridhar Vembu-led SaaS unicorn Zoho is reportedly looking to enter the semiconductor space and has applied to the Centre to seek approval to get incentives under the production linked incentive (PLI) scheme for setting up a chip fabrication plant.

The bootstrapped company is estimating an investment of around $700 Mn to set up the unit, Reuters reported citing sources.

“Zoho is proposing to manufacture compound semiconductors, which have specialised commercial applications and are made from alternatives to the more-commonly used silicon in chipmaking,” the report quoted a source as saying. 

The company’s proposal is under the IT ministry’s review. The ministry has also sought more clarity from Zoho on the customers it intends to do business with. 

Citing one of the sources, the report also said that Zoho has already identified a tech partner to set up the chip fabrication plant.

Zoho declined to comment on Inc42’s queries on the development.

The latest development comes almost two months after Vembu said in a post on X that Zoho was planning a semiconductor design project in Tenkasi district of Tamil Nadu. 

Zoho’s plans to get into the semiconductor space also come as a big boost for the government, which has taken a number of initiatives to promote semiconductor manufacturing in the country.

The Centre has allocated INR 76,000 Cr under the Semicon India programme to develop the semiconductor and display manufacturing ecosystem in the country.

Earlier this year in February, the union cabinet approved the country’s first semiconductor fab to be set up by the Tata Group, in partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corp (PSMC), with a net investment of INR 91,000 Cr. 

Further, it also greenlit two other semiconductor proposals of Tata Semiconductor Assembly and Test Pvt Ltd (TSAT) and CG Power and Japan’s Renesas. 

As per Inc42 analysis, the size of India’s semiconductor industry is expected to surpass the $150 Bn mark by 2030, growing at a 24% compound annual growth rate (CAGR) between 2023 and 2030.

While semiconductor manufacturing is capital intensive, it is unlikely to be an issue for the deep-pocketed Zoho. The company’s operating revenue zoomed 30% year-on-year to INR 8,703.6 Cr ($1 Bn) in the financial year 2022-23 (FY23), while net profit rose 3% to $340 Mn. 

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The Centre is mulling to build a dedicated research and development unit under the proposed India Semiconductor Research Centre (ISRC).

This facility will focus on semiconductor research that can “quickly go into industrial production”, ET reported.

“There is a recognised need for both private and public sectors, particularly in the semiconductor domain, to employ dedicated R&D professionals full-time. The goal is to foster an ecosystem driven by intellectual property rights (IPR) in manufacturing. We are considering structures where R&D efforts can be co-funded or conducted in public-private partnership (PPP) mode,” the report said, citing government officials.

The proposed R&D wing will operate separately from other research activities that have long project timelines. Its focus will be on developing the next generation of semiconductors, alongside advancements in packaging, systems technologies, processes and materials.

Based on the scheme’s viability, this dedicated R&D centre could even evolve into an independent entity, the report added.

The detailed plans for the initiative are likely to be revealed after the general elections in June. 

It is pertinent to note that last year an expert panel recommended the establishment of a semiconductor research centre to MeitY (The Ministry of Electronics and Information Technology) with an initial corpus of $8 Bn (INR 66,500 Cr) over the next five years.

ISRC is aimed at developing India’s capabilities in the semiconductor research space. Modelled on the lines of global institutions such as IMEC and the MIT Micro-Electronic Labs, it focuses on semiconductor processes, advanced silicon solutions, packaging R&D, compound/ power semiconductor and chip design.

India’s semiconductor ecosystem has gained significant traction in recent times. Earlier this year, the Union Cabinet approved three semiconductor proposals from private firms, totalling INR 1.26 Lakh Cr in investment. 

Additionally, US-based semiconductor giant Micron is in the process of establishing an ATMP plant in Gujarat, with an investment exceeding INR 22,000 Cr.

India has also inked agreements with various global semiconductor manufacturing giants to set up manufacturing units domestically. Moreover, companies like Advanced Micro Devices (AMD), Micron, and Qualcomm are also investing in India.

In 2021, the government introduced Semicon India program, allocating INR 76,000 Cr to provide incentive support to companies engaged in silicon semiconductor fabs, display fabs, compound semiconductors/sensors fabs, and semiconductor packaging and design.

Subsequently, the India Semiconductor Mission (ISM) was launched in 2022 to cultivate a robust semiconductor and display ecosystem, aiming to position India as a prominent global hub for electronics manufacturing and design.

The semiconductor industry in India is projected to reach a market value of $55 Bn by 2026, driven by rising demand for smartphones, automobiles, and data storage. 

The post Govt Mulls Separate Semiconductor R&D Unit With Short Project Timelines appeared first on Inc42 Media.

Data collaboration software provider Atlan has raised $105 Mn in its Series C funding round, co-led by Singapore’s sovereign wealth fund GIC and Meritech Capital. The round also saw participation from the startup’s existing investors Salesforce Ventures and Peak XV Partners.

Atlan said that its post-money valuation has increased to $750 Mn post this fundraise. 

Founded in 2018 by Prukalpa Sankar and Varun Banka, the Singapore-headquartered startup allows enterprise teams to collaborate on projects and help create a single source for all data assets on its platform. Today, in an AI-forward and data-driven business landscape, Atlan claims to have become a next-generation platform for data and AI governance.

Sankar, cofounder of Atlan, said that CIOs and CDOs across enterprises are being asked about their AI roadmaps, and they are all looking to bring in AI-ready data or data enriched with business context, trust, and security for AI adoption. 

Data sets and sources are exploding within disconnected systems and silos, said the startup, adding that cataloguing data for discovery and then utilisation across the enterprise becomes a highly manual, cumbersome process. 

Atlan claims to be addressing this issue by building the control plane for the data and AI stack, while also integrating trust and context into the digital fabric. The startup said that it centralises data management, uniting data producers and consumers throughout an organisation.

Cofounder Banka added that every organisation handles data differently across roles, structures, and platforms. The startup’s solution unifies data across warehouses, lakehouses, vector DBs, BI tools, and AI agents, he claimed.  

“In doing so, Atlan empowers data teams to leverage the entirety of their data at high velocity and scale by ensuring its quality, accuracy, and governance. This means data teams can efficiently and effectively collaborate on data that would be otherwise siloed for various use cases, including populating AI models with trustworthy data,” Banka added.

Atlan has a customer base comprising enterprises such as Cisco, Unilever, Autodesk, Ralph Lauren, Nasdaq, FOX, and HubSpot.  The startup claims to have witnessed over 7X growth in its revenue in the last two years, with a 75% win rate in competitive trials and a 400% enterprise sales growth in Q1 2024. 

The company’s operating revenue jumped 189.8% year-on-year (YoY) to INR 93.83 Cr in FY23. However, its PAT saw a decline that year partially hurt by high tax expenses. 

Earlier, Atlan raised $50 Mn in its Series B funding round in 2022. Overall, Atlan has raised $206 Mn so far across rounds. Its other major investors include Insight Partners and Waterbridge Ventures.

Rob Ward, cofounder of Meritech Capital, believes that the startup is setting a new standard for modern data governance, especially for enterprises with a cloud-first data strategy. “It’s increasingly viewed as the essential data control plane for major business initiatives like AI readiness and data democratisation. The enthusiasm within the data community for Atlan is extraordinary, reminiscent of the most transformative companies,” Ward said.

The post Atlan Raises $105 Mn To Strengthen Data and AI Governance Products appeared first on Inc42 Media.

In the Indian startup ecosystem, SoftBank is making its moves yet again. The multinational conglomerate is in early discussions to double down on its existing software portfolio firm Icertis.

As per ET, Pune-based Icertis is currently looking for a fundraise of around $150 Mn (around INR 1,252 Cr) via a secondary share sale, a deal that could see an increased investment from SoftBank.

“Icertis is well-capitalised and continues to lead the $30 billion contract lifecycle management market. It is common for new investors to seek shares in businesses like ours that demonstrate rapid growth and a sustainable future as a category leader. Icertis is not directly involved in any such secondary transactions and remains focused on empowering our customers to realise the full potential of their business relationships through contract intelligence,” the company said.

It is pertinent to mention here that SoftBank is not the only investor eyeing to increase its stake in Icertis with the fresh round. Other existing backers of the company are also considering upping their investment. This move comes as some early shareholders seek for an exit from the 15-year-old company.

The discussions between SoftBank and Icertis hinge significantly on valuation considerations.

Meanwhile, SoftBank’s Vision Fund is finalising plans to invest in the ecommerce platform Meesho as part of a larger funding round. This resurgence follows a hiatus of over a year during which SoftBank and Tiger Global refrained from deals.

Founded by Monish Darda and Samir Bodas in 2009, Icertis specialises in the enterprisetech sector. Its product Icertis Contract Intelligence (ICI) helps businesses manage, sell, buy and corporate enterprise contracts across the world.

Earlier it was reported that SoftBank was preparing itself to invest in Indian startups again, after a dry spell of nearly 18 months. Although the Japanese investment major had adopted a wait-and-watch strategy, now, it is actively looking to back new-age companies and strengthen its portfolio in the Indian market.

SoftBank which usually invests over $100 Mn per round will continue to do so, particularly in growth-stage investments.

Having funded nearly a fifth of India’s 100+ unicorns (startups with valuations exceeding $1 Bn), SoftBank has invested a total of $15 Bn in India.

The fair value of SoftBank India’s investment portfolio across Vision Funds I and II stands at nearly $14 Bn, up by 9% as of December 2023.

The article has been updated to include Icertis’ comments.

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India continued its reign as Swedish caller identification platform Truecaller’s largest market as the country accounted for 74.2% of its total net sales in the first quarter (Q1) of the calendar year 2024 (CY24). 

India contributed $29.2 Mn (INR 244.2 Cr) to Truecaller’s operating revenue in the quarter ended March 2024, up 8% YoY. In contrast, net sales jumped 9% YoY in Africa and the Middle East, and 24% YoY in the rest of the world.

Overall, Truecaller’s total revenue from operations grew 10% YoY to $39.4 Mn (approximately INR 329.3 Cr) in the quarter under review as against $35.7 Mn (INR 298.4 Cr) in the year-ago period. 

“… While overall ad demand remains subdued, the timing of events like the Indian Premier League (IPL) cricket tournament, which began in the first quarter of 2024 as opposed to 2023, also contributed positively to this quarter’s performance. Our expectation is that income from the full IPL season will be significantly lower in 2024 compared to 2023, with revenue evenly distributed between Q1 and Q2,” said Truecaller in a statement.

Truecaller posted a profit after tax (PAT) of $12.3 Mn in Q1 CY24, up 22% from $10.08 Mn posted in the year-ago period. 

On the operatonal front, Truecaller’s average number of global monthly active users rose by 39 Mn to 383.4 Mn at the end of March 2024. Of these, 272.6 Mn were from India alone. 

Meanwhile, the country accounted for 234 Mn of the company’s 314 Mn total average daily active users at the end of quarter. The Swedish giant’s average monthly and daily active users in India increased by nearly 8.5% and 11% YoY during the quarter. 

The upbeat numbers come as Truecaller continues to bolster its offerings in the country. In February this year, it rolled out its AI-powered call recording feature to Indian users. Last year, it also unveiled its AI-based feature called Truecaller Assistant to help users answer calls, which can converse in Hindi, English, and the Indianised ‘Hinglish’ languages in India.

The post India Remains Truecaller’s Top Revenue Source In Q1 CY24 appeared first on Inc42 Media.

SaaS giant Zoho’s cofounder Sridhar Vembu believes that leading a public company is a “lot lot” harder than running a private company. 

In a post on X, he termed helming a listed company akin to being on the treadmill all the time, adding that a private entity can invest in long-term research and development (R&D) and infrastructure without worrying about quarterly numbers.

His comments came in the backdrop of Girish Mathrubootham stepping down as the CEO of Nasdaq-listed SaaS company Freshworks. Prior to founding Freshworks, Mathrubootham served as the vice president of product management at Zoho for 12 years and worked closely with Vembu. 

The Zoho CEO also said that the “pressure” of managing the stock price of a public company could potentially be relentlessly brutal and could eventually lead to employee burnout and attrition.

“Personally, as a public company CEO, I won’t be able to live in a remote village and work on my own deep tech projects along with the school, the farm and rural works – the pressure to manage the stock price would be brutal and then I would have to transmit that pressure to everyone else in the company. That relentless pressure leads to employee burnout and attrition,” said Vembu in the post on X.

The Zoho CEO concluded the post by saying that the SaaS firm continues to remain private because he wants to work with people on long-term critical projects. 

In response to a question about how remaining a private company could serve the appetite for growth, Vembu said it is “much harder” for a listed company to grow people without pushing its employees too hard. 

“We are growing and promoting people as we grow, without pushing people so hard they burn out. We can afford that balanced attitude as a private company. Much harder as a public company,” responded Vembu. 

Responding to the post, founder and CEO of Capitalmind, Deepak Shenoy, opined that the move to list on bourses are “more about” raising funds, creating value for employees and to use “stock as a currency to acquire”. 

He added, “The downside is constant price feedback, but even Amazon, a very forward thinker, saw stock price plummet 90% once. Markets eventually reward long term thinking, but you should also ignore short term prices”.

The comments also came at a time when Indian new-age tech stocks continue to be on an upswing after the bloodbath of 2022, which saw stocks of many startups tank by half. However, things have been on the mend since the latter half of 2023 as more and more companies turned profitable or aggressively cut down their losses.

Meanwhile, Zoho continues to be a profitable bootstrapped venture. Its net profit rose 3% year-on-year (YoY) to 2,836 Cr in FY23, while operating revenue jumped to INR 8,703.6 Cr in the year ended March 2023 as against INR 6,710.7 Cr in the previous fiscal year.

In September last year, Zoho became the first bootstrapped company to cross the 100 Mn user mark. Additionally, Vembu recently unveiled his new venture Karuvi, a power tools manufacturing company, while Zoho launched a new business division, Zakya, in the country to cater to the retail businesses.

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Dronetech startup DroneAcharya Aerial Innovations has bagged a work order of INR 53 Lakh from Alter Dynamics & Artificial Intelligence.

The project entails utlisation of drones for inspection of piles above water, catering to the stringent requirements of Abu Dhabi National Oil Company (ADNOC).

The order will be executed within two weeks, the official statement read.

The startup said that this collaboration marks a much-needed integration of advanced drone technology with conventional industries, particularly in offshore assets. The deployment of drones equipped with high-resolution sensors promises a comprehensive, expedited, and intelligent inspection solution.

DroneAcharya’s founder and MD Prateek Srivastava said, “This milestone represents a significant entry into the relatively untapped drone survey market in the Middle East. Leveraging our extensive experience and domain expertise, we are poised to deliver professional, high- quality services to the architecture, engineering and construction (AEC) industries with unparalleled efficiency.”

Founded in 2017, DroneAcharya offers various drone solutions for multi-sensor drone surveys, pilot training, data processing and others.

In March, the company bagged an order from the Adani Group to provide Directorate General of Civil Aviation (DGCA) certified drone pilot training. Though the financial details remained undisclosed, the company said that the training will be given for mapping, monitoring, and inspection purposes within Adani Group’s diverse operations spanning energy, infrastructure, logistics, resources, and agribusiness.

In addition, this year, the company also signed a pact with Vimaan Aerospace to provide drones and drone-related training and services. The application will focus on agriculture sector, survey and surveillance, solar panel cleaning, windmill maintenance, facade cleaning, and defence. 

Amid the growing number of orders, in March, DroneAcharya’s shares recorded an upward tick by 5% on the BSE SME platform. The company bagged an order from the Ministry of Defence to supply IT hardware to set up a drone lab in Jammu and Kashmir (J&K). 

The post DroneAcharya Bags Order From Alter Dynamics appeared first on Inc42 Media.

Ace investor Shankar Sharma offloaded 2 Lakh shares or a 0.83% stake in drone startup DroneAcharya Aerial Innovations this week.

Sharma, a pre-IPO investor in the startup, sold the shares in a bulk deal worth almost INR 3.1 Cr on the BSE on Thursday (May 2).

Sharma held a 1.91% stake in DroneAcharya at the end of the September quarter of 2023. However, his name doesn’t feature in the startup’s shareholders list for the quarter ended March 2024.

The total number of shares of DroneAcharya held by Sharma remained unchanged at 4.57 Lakh at the end of the September quarter last year compared to his holding at the end of December 2022 after the startup’s listing on the BSE’s SME platform.

Following Sharma’s stake sale, shares of DroneAcharya fell 4.4% on the BSE on Thursday. However, the shares regained momentum again in Friday’s trading session and ended almost 3% higher at INR 155.85.

It is pertinent to note that on the back of important business developments and significant growth, shares of DroneAcharya witnessed an over 40% surge in 2023. However, the stock has shed some of the gains this year and is trading almost 19% lower year to date.

DroneAcharya posted a profit of INR 3.97 Cr in H1 FY24 and almost a 1000% jump in operating revenue to INR 20.89 Cr

Meanwhile, DroneAcharya continues to make significant strides in expanding its business. It recently secured contracts from the Indian Army, Adani Group, and others.

On Friday, the startup also said that it received a work order valued at INR 53 Lakh from Alter Dynamics & Artificial Intelligence. 

In an exchange filing, DroneAcharya said that the project entails the utilisation of drones for the inspection of piles above water, which would cater to the stringent requirements of Abu Dhabi National Oil Company (ADNOC).

Speaking on the development, Prateek Srivastava, founder and MD of DroneAcharya, said, “This milestone represents a significant entry into the relatively untapped drone survey market in the Middle East. Leveraging our extensive experience and domain expertise, we are poised to deliver professional, high quality services to the architecture, engineering, and construction (AEC) industries with unparalleled efficiency.”

The post Veteran Investor Shankar Sharma Offloads 2 Lakh Shares Of DroneAcharya In A Bulk Deal appeared first on Inc42 Media.

Nasdaq-listed SaaS major Freshworks has entered into a pact to acquire Delaware Corporation’s Device42 for $230 Mn (approximately INR 1,919.7 Cr).

In an SEC filing, Freshworks said that the purchase price would be paid in the form of $215 Mn of cash and an equity rollover of $15 Mn. As a part of this acquisition, Device42 will operate as a wholly owned subsidiary of Freshworks but the employees will be retained within the company. 

Device42 is a US-based company which offers tech support to companies for IT support, compliance and audit, asset management, etc. 

The latest development comes on the back of Freshworks posting a consolidated net loss of $23.3 Mn in the first quarter ended March 31, 2024, registering a 45.3% decline year-on-year (YoY).

Meanwhile, the company’s total revenue jumped 20% to $165.1 Mn in Q1 2024 from $137.7 Mn posted in the corresponding quarter of the previous year.

This comes parallel to the change in leadership within the company. 

In a major internal rejig, Freshworks’ chief executive officer Girish Mathrubootham has stepped down from his role, while the company’s president Dennis Woodside has been named as his successor effective May 1.

Mathrubootham will be redesignated as executive chairman. He will now allocate more time to the long-term product vision, innovation, and AI strategy. 

Freshworks has been going through major internal changes lately. 

The fresh development comes days after Freshworks’ India head Karthik Rajaram quit the startup to join software company Elastic.

In February this year, Freshworks’ chief revenue officer (CRO) Pradeep Rathinam resigned, while the company’s cofounder and chief technology officer (CTO) Shan Krishnaswamy bid adieu to the company in 2022 after a company-wide rejig.

Meanwhile, it recently roped in ex-Adobe executive Mika Yamamoto as its first chief customer and marketing officer (CCMO) and also appointed Johanna Jackman as the new Chief People Officer (CPO).

Founded in 2010 by Girish Mathrubootham and Shanmugam (Shan) Krishnasamy, Freshworks offers a suite of software for customer service and support, customer engagement and IT service management. The company went public in 2021.

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Nasdaq-listed Indian SaaS major Freshworks posted a consolidated net loss of $23.3 Mn in the first quarter ended March 31, 2024, registering a 45.3% decline year-on-year (YoY).

Meanwhile, the company’s total revenue jumped 20% to $165.1 Mn in Q1 2024 from $137.7 Mn posted in the corresponding quarter of the previous year.

Commenting on the Q1 results, Girish Mathrubootham, CEO and founder of Freshworks, said, “I’m particularly proud of the progress we’ve made in AI innovation across our products, and its tangible impact on our customers.”

“We remain more focused than ever on product innovation, bringing more large customers onto our platform, and expanding adoption of products across our portfolio,” said Mathrubootham, who is also stepping down from his position as a CEO in the company.

Along with announcing the Q1 results, Freshworks said Mathrubootham would be redesignated as executive chairman while president Dennis Woodside has been appointed as the next CEO.

Following the announcements, shares of Freshworks declined over 20% in the extended trading session on Wednesday (May 1).

On the other hand, Freshworks’s gross profit increased 24% YoY to $139.3 Mn in Q1.

The company said that the number of customers contributing over $5,000 in ARR stood at 20,549 in the reported quarter, an increase of 11% YoY. Dark Matter Technologies, British Transport Police, YoungCapital, Coeur Mining, and Kramp were among the new customers added in Q1. 

The company’s free cash flow stood at $38.7 Mn at the end of Q1 2024 as against $9.1 Mn in the corresponding quarter of the previous year.

Freshworks said it expects its Q2 2024 revenue in the range of $168 Mn-$170 Mn, registering a 16-17% growth YoY.

The post Freshworks Q1: Net Loss Narrows 45% YoY To $23 Mn, Revenue Jumps 20% appeared first on Inc42 Media.

In a major internal rejig, Freshworks’ chief executive officer Girish Mathrubootham has stepped down from his role, while the Nasdaq-listed SaaS giant’s president Dennis Woodside has been named as his successor effective May 1.

Mathrubootham will be redesignated as executive chairman.

“I have decided to step down as CEO of Freshworks and transition into the role of executive chairman. This decision was not made lightly and comes with a deep belief in our collective vision and the future of our company,” Mathrubootham said.

He added, “When I recruited Dennis to Freshworks, my hope was that he would eventually succeed me and that we would work together to make a thoughtful and smooth transition.”

Mathrubootham will now allocate more time to the long-term product vision, innovation, and AI strategy.

“Our mission remains unchanged, and our future is bright. The road ahead is filled with limitless possibilities, and I am excited to see where Dennis’ leadership takes us,” he added.

Since founding Freshworks in 2010, Mathrubootham has been instrumental in guiding the company’s transformation from a small startup in Chennai to a Nasdaq-listed software firm in the US.

Prior to this, Mathrubootham held positions at companies such as Zoho Corporation, AdventNet Inc., eForce, and HCL Cisco ODC.

Mathrubootham guided Freshworks through an IPO on Nasdaq in September 2021, a significant achievement as Freshworks became the first India-born SaaS firm to trade on a US exchange.

The top rejig coincides with a series of management changes within the SaaS firm.

Earlier this month, Freshworks’ India head Karthik Rajaram quit the SaaS startup to join software company Elastic. 

In Q4, the SaaS major’s chief revenue officer Pradeep Rathinam resigned, while the company’s cofounder and chief technology officer (CTO) Shan Krishnaswamy bid adieu to the company in 2022 after a company-wide rejig.

Meanwhile, it recently roped in ex-Adobe executive Mika Yamamoto as its first chief customer and marketing officer (CCMO) and also appointed Johanna Jackman as the new Chief People Officer (CPO).

Amid all this, Freshworks continues to narrow its losses while shoring up revenues. The Nasdaq-listed company narrowed its net loss 49% year-on-year (YoY) to $28.1 Mn in the fourth quarter (Q4) of 2023. Meanwhile, revenue jumped to $160.1 Mn for the quarter, up 20% from $133.2 Mn in Q4 2022.

Founded in 2010 by Girish Mathrubootham and Shanmugam (Shan) Krishnasamy, Freshworks offers a suite of software for customer service and support, customer engagement and IT service management. The company went public in 2021.

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Japan-based HRtech platform Mynavi Corporation has bought a majority stake in gig workers startup Awign in an all-cash deal.

However, the company did not disclose the financial terms of the deal.

Awign said in a statement that this partnership will also mark exit of its few early backers, including Capria, Lumis, MSDF, Amicus Capital and Pankaj Bansal.

The partnership and the patient capital will further enable Awign to focus on long-term strategic growth and deeper value creation without getting affected by the fundraising market environment, it added. 

“This partnership will help Awign to scale its operations and go beyond its core strengths. Our primary focus remains on strengthening our growth engine by onboarding enterprise customers worldwide and launching new categories in the HR space,” said Annanya Sarthak, cofounder and CEO of Awign. 

“The synergy between our visions, empowers us to tackle the challenges in the HR sector more effectively,” said Mynavi India’s MD Hidekazu Ito. 

Through this partnership, Awign aims to build three key areas, including building a power team of best-suited talent, enhancing brand visibility and investing in technology to expand its digital infrastructure and build better platforms. 

Launched in 2016 by Sarthak, Gurpreet S. Khurana, and Praveen Kumar Sah, Awign claims to have a network of more than 1.5 Mn gig workers with over 175 leading enterprises. It collaborates with enterprises in sectors including retail, FMCG, automotive, education, manufacturing, construction, pharmaceuticals and more. 

Talking to Inc42, Sarthak said that in terms of the global growth goals, Awign aims to onboard more global companies to the clientele. In the coming years, the startup aims to be one of the key HRtech players of Asia. 

Sarthak further confirmed that the startup raised the last funding in 2022 when it bagged $15 Mn in a Series B funding round. According to the CEO, as the cash burn is low, the startup is not planning to conduct any further round soon.

The post Japan’s Mynavi Corporation Picks Up Majority Stake In Awign appeared first on Inc42 Media.

India is experiencing an incredible shift fueled by technology, paving the way for a new era of socio-economic progress. As technology continues to evolve at a rapid pace, it has become a gateway to boundless opportunities, empowering individuals from tier 2, tier 3 and beyond to find meaningful jobs, acquire essential skills, and contribute significantly to the nation’s economic prosperity. 

With an enormous user base of over 750 Mn people, the internet has played a significant role in driving this transformation, reshaping how we live, work, and conduct business across the country.

However, despite the widespread impact of the internet, many challenges persist in ensuring that everyone has equal access to digital resources. Issues such as inadequate infrastructure, affordability constraints, and limited digital literacy levels prove to be barriers to widespread internet adoption. 

Acknowledging these challenges, the government has launched the “Digital India” initiative, aimed at bridging the digital gap and promoting digital inclusivity nationwide. 

In the Interim Budget 2024, Union Finance Minister Nirmala Sitharaman highlighted the critical importance of India’s digital infrastructure in driving economic formalisation in the modern era. She emphasised the need for robust digital frameworks to enhance economic growth and the country’s competitiveness on the global stage. 

Sitharaman’s remarks echoed the overarching vision of Prime Minister Narendra Modi’s – Viksit Bharat or Developed India. His vision represents a comprehensive roadmap towards prosperity, with a key focus on inclusive economic participation and building world-class infrastructure.

Yet, amidst these remarkable advancements, one crucial aspect cannot be overlooked – the importance of inclusive growth in India’s less developed regions. While technology has undoubtedly brought about significant transformations, there is an urgent need to empower small businesses in these areas to fully adopt the vision of a Digital India. 

A recent assessment by Vi Business (Arm of Vodafone Idea) encompassing nearly one lakh MSMEs says that less than 60% of businesses have embraced digitalisation across various verticals.

As we comprehend the transformative power of technology for small businesses, it becomes evident that these small businesses don’t need to just adapt to digital tools but also utilise them for expansion. The initiatives that can empower MSMEs of Viksit Bharat are as follows:

Digital Infrastructure Development

One of the key pillars to empower MSMEs is to bridge the digital divide through robust digital infrastructure development. Initiatives like ‘BharatNet,’ aim to connect all Gram Panchayats with high-speed optical fibre broadband, which has been essential in providing access to digital resources in rural areas. 

As of December 2023, over 1.5 lakh Gram Panchayats have been connected, laying the groundwork for a thriving digital ecosystem in these regions.

Digital Literacy

In addition to infrastructure development, digital literacy initiatives play a crucial role in empowering businesses. Programs like the ‘Pradhan Mantri Grameen Digital Saksharta’ Abhiyan (PMGDISHA) have been instrumental in imparting essential digital skills to rural citizens. 

As of March 2023, over 1 crore rural citizens have been digitally empowered through PMGDISHA, equipping them with the knowledge and skills needed to adopt digital tools for business growth.

Democratising Technology

Moreover, ensuring easy access to the right set of digital tools is essential for MSMEs to thrive in the digital age. Providing access to affordable and user-friendly technologies can enable these businesses to streamline their operations, explore new markets, and compete more effectively in today’s digital economy. 

Leveraging tools such as cloud computing, digital payment platforms, and business management software, businesses can overcome traditional barriers and unlock their extreme potential.

Empowering Personalised Connections

With the internet economy poised to hit $1 Tn by 2030, our nation’s wealth of tech talent is driving rapid innovation. Leveraging tools like generative AI, even local artisans can now craft customised messages for each customer, promoting genuine connections beyond transactions. 

This AI integration revolutionises customer interactions, offering real-time engagement and tailored recommendations that enhance the customer experience.

In 2023, the government launched – ONDC, a path-breaking initiative to revolutionise e-commerce by levelling the playing field for sellers and offering consumers more choices. This challenged the dominance of existing platforms, aiming to boost businesses and enhance consumer welfare.

Nurturing Local Talent And Promoting Sustainable Practices

Investing in skill development programs and entrepreneurship initiatives tailored to the needs of specific regions will nurture local talent, leading to a new generation of business leaders who are equipped to drive economic growth and innovation locally. 

Furthermore, promoting sustainable business practices will not only benefit the environment but also ensure the long-term viability of the business.

Conclusion

In essence, technology has the potential to transform small businesses while promoting inclusivity and empowerment. With India’s strong digital infrastructure and various initiatives by the government, the country is on a path to global digital leadership. 

By overcoming barriers and harnessing innovation, India’s digital landscape holds enormous promise for its people and the world. 

From improving governance to empowering citizens and driving economic growth, Digital India represents a path to a more inclusive, prosperous, and digitally connected nation.

The post Digital India, Digital MSMEs: Empowering Viksit Bharat’s Small Businesses appeared first on Inc42 Media.