The Centre is reportedly planning to improve accessibility for all its websites, digital applications and services across government-to-government, government-to-business and government-to-citizen space.

Citing a senior government official, ET reported that the Ministry of Electronics and Information Technology will anchor this project, suggesting ways to improve page and website loading times, enhance user interfaces on websites and apps and make them more accessible for people with disabilities.

“If you see the government websites of today, almost all the information is presented on the first landing page. This makes them (websites) slow. We plan to not only improve the accessibility for such websites but also make the UI (user interface) cleaner so that the user is not burdened with a lot of information at the same time,” the official said.

As per the report, in the initial phase, all IT ministry websites and applications will be upgraded to enhance accessibility. These upgrades are part of the IT ministry’s plan to improve the global visibility of Indian government apps and services.

“So, for example, we have a user who can not see very well. Why can a government website or app not have the option of narrating the contents to such users and guiding them to their choice effortlessly? If there is a need to integrate Bhashini, we can surely look into that as well,” the official added.

Meanwhile, in May the government announced plans to create a unified portal for all its digital public goods (DPGs), such as Aadhaar, the Unified Payments Interface, and the Open Network for Digital Commerce, to provide easy access to apps and services. 

The Ministry of Electronics and Information Technology will likely lead this initiative, collaborating with all ministries, departments, and agencies to detail the digital public infrastructure (DPI) they have created.

In April, the government established five working groups to address key issues such as data anonymisation, zero trust architecture, IoT and mobile device security, and digital education. MeitY formed these groups to develop guidelines and frameworks for the effective implementation of e-governance projects across various ministries and government departments.

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The home decor industry in India is undergoing a major transformation on the back of the growing D2C wave in the country. Ten years ago, when D2C wasn’t the norm, home furnishing meant buying local products or visiting premium offline stores. 

Then came the online shopping spurt and brands like Pepperfry and Urban Ladder entered the fray, serving customers at the comfort of their doorsteps. But this was not enough, as these brands had an unquenchable thirst to grow, so they invested heavily in moving offline, too. 

From 2018-2019 onwards, D2C brands like Trampoline, Chumbak and The Decor Kart emerged, meeting evolving consumer demands with diverse home decor solutions such as eco-friendly products, garden decor, bath essentials, kitchen utilities. 

In the same league emerged Nestasia, aiming to bridge the gap between low-quality local stores and high-end boutiques by offering a fresh perspective on home adornment.

Founded in 2019 by Aditi Murarka and Anurag Agarwal, Nestasia is a home decor brand, which offers products such as decor, bath, crockery, garden accessories, and kitchen utilities. 

Unlike other marketplaces, the Kolkata-based startup operates a full-fledged D2C business, buying products from Indian artisans and selling them directly to customers. It primarily sells on Amazon and Myntra and is also present on TataCliq, Pepperfry, and Nykaa.

The D2C brand generates revenue through shop-in-shops in modern trade and its own app, live on both the App Store and Play Store. It achieves 98% of its sales from digital channels and 2% from five offline stores. Its revenue is evenly split between Tier II cities and metros, with key markets in Maharashtra, Delhi NCR, and Karnataka.

Starting with 100-200 products, the D2C brand now offers about 4,500 items across six categories, fulfiling over 3 Lakh orders. According to Tofler, the company’s operating revenue increased by 63.8% from INR 21.90 Cr in FY22 to INR 35.88 Cr in FY23.  

The startup has raised $4 Mn from Stellaris Venture Partners, Varun Alagh of Mamaearth, Sahil Barua of Delhivery, and Anuj Srivastava and Ramakant Sharma of Livspace.

From Changing Homes To Nestling Nestasia

Before founding Nestasia, Aditi Murarka, an XLRI Jamshedpur alumna, worked as an associate manager at ZALORA Group in Singapore, where she handled strategy and planning for the company. 

Her job demanded frequent movement between Hong Kong and Singapore. And in a span of four years living outside India, she had already changed her house more times than she can remember.

However, she had always enjoyed setting up and decorating her abode. Slowly and gradually Murarka developed a deep passion for home decor products, so much so that the husband and wife duo then decided to pick this full time. 

They envisioned to build a brand that offered unique, contemporary, and premium quality home decor products. 

After a year of research, Murarka returned to India in 2019 to pursue her vision. In the same year, she launched Nestasia, seizing the opportunity presented by the rise of ecommerce and increasing interest in home decor.

Agarwal, who previously worked in equities trading at Goldman Sachs, joined her shortly before the Covid-19 pandemic began in early 2020. 

Initially, they started with a lean team, and the husband-wife duo relied on their savings to bootstrap the venture.  

Also, at the outset, the startup aimed to fill the gap in the homeware market by offering a wide variety of products. “We added a lot of SKUs because we aimed for variety. However, we realised that it wasn’t the width or variety that attracted customers but rather the quality and design of the products,” Murarka added. 

So, the cofounders decided to fine-tune their assortment, reducing it from 10,000-12,000 SKUs in 2023 to around 4,500 SKUs in 2024, ensuring each product was design-driven and of high quality.

The cofounders then banked on launching home decor products for seasonal and special occasion launches. The combination of a seasonal, design-driven approach became the brand’s USP.

The Pandemic Shot In The Arm

Just four to five months after its launch, the Covid-19 pandemic struck the world. During this time, Nestasia’s supply chain took a severe hit, making it almost impossible for the cofounders to fulfil customer orders (even though few). 

Now, with imports stuck and delivery services halted, the team often had to pack and ship products themselves. The gap between running out of stock and receiving replenishments was another significant challenge faced by the brand.

“To maintain customer trust, Anurag and I personally called every customer who placed an order, explaining the delays and reassuring them of eventual delivery,” Murarka said.

But, the cofounders were clever to read the market and amidst a series of challenges, they shifted their focus on crafting engaging content on social media. They started DIY projects to engage with their audience, which resulted in them building a strong social media presence. 

This content-first approach led to the creation of an in-house content team that still produces high-quality content, driving about 15% of referrals and conversions from social media.

This was also the time when Nestasia achieved its first 100 orders.  

Nestasia’s Product Folio

According to the cofounders, the startup today has been successful in positioning itself as a premier home and lifestyle product destination. 

Offering a wide array of products, from dining ware and kitchen essentials to decor items like candles and mirrors, bath accessories, soft furnishings, and now bags and accessories, the startup aims to establish itself as the go-to destination for all things home-related.

Murarka mentioned that previously, dining and kitchen formed a single category, representing 100% of their business. However, in April 2022, with the addition of new categories, the kitchen segment swiftly transitioned to constituting 25% of their business. It currently contributes to 45% of their revenue.

Transitioning to a design-driven focus, the startup launched visually appealing lunchboxes in 2023, meeting demands for quality and aesthetics. This success prompted an expansion into other offerings like shopping bags, organisers, and vanity boxes.

Currently, the cofounders have an in-house production unit for bags and accessories in Kolkata. The startup’s bags and accessories segment accounts for approximately 18% of its total revenue.

The Road Ahead

Notably, the home decor industry is experiencing a notable shift, with the online market projected to grow to $5.4 Bn by 2025.  To capitalise on this opportunity, the startup is focussing on growth strategies, including optimising product distribution, reducing logistics costs, expanding its presence across all channels, and significantly increasing offline expansion. 

The startup, currently operating five stores, aims to open five more this year and reach approximately 40 stores by next year. The cofounders have already finalised deals for upcoming locations, targeting Airia Mall in Gurgaon, DLF Mall of India in Noida, and potential sites in Pune and Mumbai. To facilitate this expansion, the cofounders are experimenting with store size, assortments, and locations to enhance the customer experience.

In the home decor segment, the startup competes with companies such as Trampoline, The Purple Turtles, Chumbak, Vaaree, Pepperfry, Furlenco, and Urban Ladder.

Additionally, the startup aims to offer a seamless online-offline shopping experience by allowing customers to pick up online purchases in-store and vice versa. 

The startup is also working on implementing loyalty programmes and enabling customers to place orders through their app for home delivery, enhancing convenience and flexibility for shoppers.

By increasing scale and efficiency, the startup plans to become EBITDA positive by 2025.

Looking ahead to FY25, Nestasia aims to prioritise expanding offline stores and enhancing branding efforts.

[Edited by Shishir Parasher]

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Beauty ecommerce marketplace Purplle has raised INR 1,000 Cr (about $120 Mn) in a funding round led by a subsidiary of the Abu Dhabi Investment Authority (ADIA). 

The round, which was a mix of primary and secondary share sale, also saw participation from other investors, the startup said in a statement, without disclosing their names.

While the startup didn’t disclose the valuation at which the funds were raised, a report last month said that it would be valued at $1.2 Bn-$1.3 Bn.

Commenting on the funding, Purple cofounder and CEO Manish Taneja said, “We will constantly innovate and leverage our technology and data capabilities to provide our customers with the best omnichannel experience. In increasing its shareholding in Purplle, ADIA has continued to support us as we pursue our vision of building a sustainable and profitable business.”

In addition to the funding round, Purplle announced its largest-ever Employee Stock Ownership Plan (ESOP) liquidity programme, offering liquidity of INR 50 Cr to its employees. 

Purplle said it has granted ESOPs to 320 employees till date, of which 85 have liquidated INR 75 Cr worth options across three buybacks. In the new ESOP liquidity programme, 26% of beneficiaries are women.

Founded in 2012 by Manish Taneja and Rahul Dash, Purplle sells beauty products and appliances. It sells products of several D2C brands, including Plum, WOW Skin Science, mCaffeine, Maybelline and SUGAR Cosmetics, on its platform.

Purplle claimed it has quadrupled its gross merchandise value (GMV) in the last three years. “Purplle is operationally profitable and expects to grow its online platform faster than the industry while scaling offline stores and improving profitability,” it added.

The startup saw its operating revenue rise 116% to INR 474.9 Cr in the financial year 2022-23 (FY23) from INR 219.8 Cr in FY22. However, net loss grew 13% to INR 230 Cr during the year from INR 203.6 Cr in FY22.

The Indian beauty and personal care (BPC) market is projected to reach a size of $30 Bn by 2027, growing at an annual rate of 10%, making it the fastest-growing among large economies. Major players like Nykaa, Myntra, Mamaearth, and Tira are intensifying efforts to capture market share. 

Reliance Retail ventured into the beauty and personal care (BPC) market last year with Tira, an omnichannel platform. Since then, it has expanded Tira’s offline presence to 10 stores across major cities in India. In April, Tira introduced two private labels. 

Meanwhile, Nykaa said its owned brands in the beauty segment grew 39% in FY24. 

As a result, investors are making a beeline to infuse capital in the startups in the beauty and personal care space. 

In June, D2C beauty brand RENEE Cosmetics raised INR 100 Cr (around $11.9 Mn) in its Series B1 funding round co-led by existing backers Evolvence India and Edelweiss Group. In the same month, personal care major Lotus Herbals floated a $50 Mn fund to invest in early stage startups in the beauty category. 

Last month, D2C personal care startup 82°E raised INR 50 Cr (around $6 Mn) as part of its extended seed funding round.

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The Ministry of Electronics and Information Technology will be hosting the Global IndiaAI Summit in New Delhi on July 3-4 to promote collaboration and knowledge exchange, while highlighting the country’s commitment to the ethical and inclusive growth of AI technologies.

The summit will provide a platform for international AI experts across science, industry, civil society, governments, international organisations and academia to share insights on key AI issues and challenges, MeitY said in a statement.  

It will focus on advancing AI development in key areas including compute capacity, foundational models, datasets, application development, future skills, startup financing, and safe AI.

The Global IndiaAI Summit 2024 aims to position India as a global leader in AI innovation, ensuring equitable access to AI benefits and fostering socio-economic development across the nation.

Besides, India will host member countries and experts to further Global Partnership on Artificial Intelligence (GPAI’s) commitment to safe, secure, and trustworthy AI.

This comes a month after the Centre reviewed the progress of the INR 10,372 Cr India AI Mission to work out various details of the programme.

In May, S Krishnan, secretary of MeitY, said that the Centre is planning to regulate AI in a way that does not deter innovation in the space. 

The IndiaAI Mission aims to build an ecosystem fostering AI innovation through democratizing computing access, enhancing data quality, developing indigenous AI capabilities, attracting top talent, enabling industry collaboration, providing startup capital, and promoting ethical AI. These pillars drive responsible and inclusive growth within India’s AI ecosystem.

The IndiaAI Mission comprises the following pillars:

• IndiaAI Compute Capacity: It envisions building a cutting-edge, scalable AI computing infrastructure by deploying more than 10,000 Graphics Processing Units (GPUs) through PPP model
• IndiaAI Innovation Centre (IAIC): With this, the Centre is looking to create a leading academic institution to retain top research talent, develop and deploy indigenous large multimodal models (LMMs) and domain-specific models
• IndiaAI Datasets Platform: This platform will be developed by IndiaAI’s independent business division (IBD) and will look to enhance accessibility, quality, and utility of public sector datasets
• IndiaAI FutureSkills: This program will focus on expanding the accessibility of graduate and post-graduate AI programs as well establishing AI Labs to impart foundational-level courses in the domain

This aligns with a time of rapid AI adoption by companies and growing investor interest in AI startups.

In June, audio streaming platform Pocket FM partnered with US-based GenAI platform ElevenLabs to enable writers to convert their text stories into audio series.

In the same month, Maxim AI raised $3 Mn (around INR 25 Cr) in a seed funding round led by Elevation Capital.

GenAI-powered product photography startup Ayna raised $1.5 Mn (about INR 12.5 Cr) to expand its AI capabilities and scale its team.

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The Ministry of Finance has said that India and the US have agreed to extend a 2% digital tax on ecommerce supplies until June 30. The move clarifies that American digital companies operating in India must pay the tax during this period.

As per the statement, both countries will stay in close communication to ensure a mutual understanding of their commitments and will work towards resolving any issues through constructive dialogue.

In November 2021, India and the US reached a deal permitting New Delhi to impose a 2% levy until March 31, 2024, or until the implementation of Pillar 1 of the OECD agreement on taxing multinationals and cross-border digital transactions. 

Earlier, in October 2021, India, the US, and 134 other members of the OECD/G20 Inclusive Framework (including Austria, France, Italy, Spain, and the UK) agreed on a two-pillar solution to address these tax challenges. 

The agreement was valid from April 1, 2022, until the implementation of Pillar One or March 31, 2024, whichever came first, as stated in public statements by both sides (‘November 24 Statements’)

As of December 18, 2023, there was a call to finalise the text of the Pillar 1 multilateral convention by March 2024, aiming for a signing ceremony by June 2024. However, consensus on the agreement has not yet been reached.

“In light of above developments, India and the United States have decided to extend the validity of the agreement reflected in November 24 Statements until June 30, 2024. All other terms of the transitional approach remain the same,” the statement said.

PTI reported the development first.

The Equalisation Levy was introduced in India in 2016 to tax digital transactions, specifically targeting income earned by foreign ecommerce companies from India. It focuses on business-to-business transactions and is commonly known as the “Google Tax.”

It was introduced to tax ecommerce companies which have a presence in India, but their billing is done in international markets. These companies often tend to escape the country’s cross-border tax regime by billing their customers from offshore units. The levy is meant to bring these non-resident companies which service Indian customers, under the ambit of tax. 

Equalisation Levy is a direct tax withheld at the time of payment by the service recipient. It applies when payments exceeding INR 1 Lakh in a financial year are made to non-resident service providers.

In 2020, India justified its imposition of a 2% equalisation levy on foreign companies for digital transactions, asserting that the levy is non-discriminatory.

In 2021, the equalisation levy imposed by India on non-resident digital companies had varied impacts across different sectors. Companies like Netflix opted not to pass on the levy directly to Indian consumers to maintain competitive pricing.

Google passed on India’s 2% equalisation levy, which was implemented in April 2020, to its clients whose advertisements were visible in India.

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At a time when Urban Company has seen a number of protests by the workers employed by the platform, the hyperlocal services startup’s cofounder Abhiraj Singh Bhal has reportedly alleged that local politicians and unions seek advantage from such conflicts and put pressure on the firm.

Bhal addressed the criticism around the startup’s new policy for partners, which penalises gig workers for sustained low ratings from users. “Sometimes there is pressure on us. Local politicians and unions get involved; some may seek political mileage,” he was quoted as saying by Moneycontrol.

“There is pressure on us to take back the protesting workers, but it would be unfair to the vast majority of other hardworking partners and customers.”

This also marks the company’s first public statement addressing the protests against its new policies, introduced early last year under ‘Mission Shakti’.

Earlier this month, women gig workers working with the platform went on a strike at the consumer services startup’s Bengaluru office to protest against its new terms of reference.

The protestors were part of the Gig and Platform Services Workers Union (GIPSWU), which described new work conditions as “horrific” and likened to placing thousands of partners in exploitative situations akin to slavery.

Over the years, Urban Company has faced protests from certain segments of its partners. According to Bhal, these protests mainly concern two policies — the ratings system and a newly implemented order scheduling system.

Bhal said that Urban Company’s service partners have maintained an average rating of 4.83 out of 5 in 2023 and 2024 so far, with category-specific minimum thresholds ranging from 4.5 to 4.7. Partners falling below these thresholds undergo retraining and feedback, but persistent low ratings result in removal from the platform.

Founded in 2014 by Bhal, Raghav Chandra, and Varun Khaitan, Urban Company offers a range of services such as salon and massage, home cleaning, appliance repair services, and painting.

Meanwhile, the startup claimed its consolidated business turned profitable before tax in the first quarter (Q1) of the financial year 2024-25 (FY25).

In May, Bhal took to LinkedIn to claim that the startup turned profitable before tax in April 2024. In his post, he also said that the platform will focus on growing profitably and sustainably while “prioritising” the interests of customers, service partners, employees, and shareholders.

Reportedly, the company is also on track for an IPO in 2025 and will soon announce a new independent director on its board.

Ubran Company said that as per its latest Partner Earnings Index, there has been a continuous rise in the earnings of the service partners earnings.

In the second half of 2023, service partners delivering more than 30 services per month earned an average monthly net income of INR 33,469, the startup said. Additionally, the top 20% of Urban Company service partners earned an average monthly income of INR 42,792 after deducting all commissions, fees, travel, and product costs, it added.

The startup also claimed that women service partners earn 23% more than their male counterparts.

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The Competition Commission of India (CCI) has dismissed a complaint against Google India alleging the tech giant abused its dominant position to favour Truecaller by allowing it exclusive access to user’s private contact information.

In a statement, the CCI said, “The Commission finds that no prima facie case of contravention of the provisions of Section 4 of the Act is made out against Google in the instant matter.”

It is pertinent to mention here that Section 4 of the Competition Act, 2002, prohibits large firms from abusing their dominant market position.

The ruling came in response to a complaint filed by Rachna Khaira, who accused Google of granting exclusive access to Truecaller for sharing private contact information while prohibiting other apps from doing the same. 

She further alleged that this practice distorted the market and created a monopoly for Truecaller. Khaira contended that Google’s developer policy prohibits unauthorised disclosure of non-public contacts, on the contrary Truecaller’s privacy policy allegedly permitted sharing of such information.

However, Google refuted the allegations saying that its Play Store explicitly prohibits unauthorised disclosure of users’ non-public contacts and that Truecaller’s app adheres to these policies, requiring user authorisation for access to contact information. 

The tech giant emphasised that the informant provided no evidence of violations by Truecaller’s Play Store app or any discriminatory treatment against other apps.

Furthermore, Google denied any exclusive commercial arrangements with Truecaller involving data sharing. 

“In respect of alleged conduct on part of Google, the Commission found merit in the argument of Google that the Informant, while making allegations against Google for giving preferential treatment to Truecaller and not taking any action for violating its own policies, has relied on a version of Truecaller’s app which is not available on Play Store. 

The Informant in her rejoinder has contested these submissions by Google, but has not substantiated the same. Therefore, the allegation of the Informant remains unsubstantiated,” the CCI order said.

The CCI also addressed allegations concerning Google’s commercial relationships, emphasising that mere commercial ties do not necessarily indicate preferential treatment unless substantiated. Despite claims, the regulator found no evidence supporting the assertion that these arrangements provided Truecaller with an unfair competitive edge over its competitors.

Furthermore, the informant’s request for interim relief, seeking to temporarily block Truecaller from the Play Store, was dismissed by the competition watchdog.

The Commission concluded that there was no prima facie evidence of a violation of Section 4 of the Act by Google in this case. Therefore, the Information was ordered to be closed.

This comes at a time when Google is “pausing” its plans to expand and allow new kinds of real-money games (RMG) list on the Play Store in India and globally, citing the absence of a central licensing framework and the complexities in developing an appropriate monetisation model.

It is pertinent to note that Google began onboarding a wider range of RMG apps on the Play Store with pre-existing licensing frameworks in 2021. In January this year, the tech giant announced plans to relax its Play Store policies to allow more types of games in the RMG category to be listed on its app marketplace. 

Besides, the tech giant rolled out the mobile app of its GenAI chatbot Gemini in India with new capabilities in English and nine Indian languages earlier this month.

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Apple’s supplier Foxconn has been alleged of following discriminatory hiring practices and excluding married women from jobs at its iPhone assembly facility in Tamil Nadu’s Sriperumbudur. 

Foxconn excludes married women from jobs on the grounds that they have more family responsibilities compared to unmarried counterparts, news agency Reuters reported.

The publication said it spoke to over a dozen employees from Foxconn’s hiring agencies in the country as well as four current and former executives from the human resources department of the company. All of them confirmed the discriminatory hiring practices.

Corroborating these claims, S Paul, a former human resources executive at Foxconn India, alleged that the company’s management verbally instructs hiring agencies to avoid recruiting married women, the report said.

According to Paul, who left Foxconn in August last year, Foxconn generally refrains from hiring married women due to perceived ‘cultural issues’ and societal pressures. 

He highlighted concerns within the company about post marriage challenges, particularly related to family responsibilities such as childcare. 

According to Paul, Foxconn believes that hiring married women poses increased risks to operations.

Paul’s account was corroborated by 17 employees from more than a dozen Foxconn hiring agencies in India, and four current and former Foxconn human resources executives. Twelve of these sources spoke on condition of anonymity to Reuters.

Three former Foxconn HR executives told Reuters that the Taiwan-headquartered manufacturer relaxes the practice of not hiring married women during high-production periods when it sometimes faces labour shortages. In some cases, hiring agencies help female candidates conceal their marital status to secure jobs, the publication found.

Between January 2023 and May 2024, Reuters made more than 20 trips to Sriperumbudur and spoke to dozens of jobseekers about the hiring process. Reporters also reviewed a candidate information pamphlet, dozens of job ads and records of WhatsApp discussions in which four of Foxconn’s third-party recruiters stated to prospective candidates that only unmarried women were eligible for assembly jobs. The ads make no mention of the hiring of men.

Responding to Inc42’s queries, Foxconn refuted allegations of any employment discrimination based on marital status, gender, religion or any other form.

“Foxconn’s priority is the well-being of our employees around the world. We hire workers of all backgrounds, genders, races and marital statuses, and we do not stand for discrimination in hiring or recruitment,” the company said.

The development comes at a time when Apple supplier and Foxconn subsidiary Rayprus Technologies is looking to venture into the Indian market with a facility in Bengaluru.

The Taiwan-based company, responsible for assembling approximately 70% of iPhones and holding the title of the world’s largest contract manufacturer, is strategically shifting its production away from China due to disruptions caused by COVID-19 and geopolitical tensions. Over the past year, Foxconn has significantly expanded its footprint in India, making substantial investments in manufacturing facilities in the southern part of the country.

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Edtech major BYJU’S has reportedly settled with French digital services company Teleperformance Business Services, the National Company Law Tribunal (NCLT) was told today (June 26).

Earlier today, it was reported that a year-long investigation by the government revealed that the edtech major fell short on compliance issues but found no proof of wrongdoing such as siphoning of funds or manipulation of financial accounts.

As per Moneycontrol’s report, the insolvency court instructed Teleperformance to file a memo indicating its intention to withdraw the insolvency plea in light of the settlement, to finalise the case closure.

NCLT has repeatedly advised BYJU’S to settle with Teleperformance within a week. The tribunal cautioned that if the dispute remained unresolved by then, it would proceed to hear the case on its merits and issue an appropriate order.

On February 7, the NCLT issued a notice to BYJU’S regarding an insolvency plea filed by French outsourcing firm Teleperformance Business Services. The edtech firm had previously engaged outsourcing agencies including Teleperformance, Cogent E Services, and iEnergizer until mid-2022. By mid-2022, BYJU’S discontinued services with Teleperformance and Cogent E Services as part of cost-cutting measures amidst mounting challenges.

On April 18, NCLT granted BYJU’S a week to settle its payment dispute with Teleperformance Business Services. BYJU’S counsel informed the Bengaluru bench that efforts were underway to resolve the issue with the French outsourcing firm and expressed confidence in reaching a settlement soon. The NCLT adjourned the proceedings until April 30, indicating it would hear both parties if no agreement was reached by then.

At the heart of the matter is the insolvency plea of Teleperformance Business Services India, the Indian arm of the French customer services company Teleperformance, against BYJU’S. The company alleged that the Byju Raveendran-led company failed to clear pending dues of about INR 3-4 Cr. 

Teleperformance entered into a service agreement in April 2022 and it raised over 20 invoices amounting to over INR 4 Cr between March and August 2023, which went unpaid.

According to a Moneycontrol report, Teleperformance stated that BYJU’S agreed to settle the amount in three installments: INR 1.5 Cr in the first tranche, INR 2 Cr in the second, and INR 2.2 Cr in the final installment. Although BYJU’S has resolved its dispute with Teleperformance, it is currently engaged in approximately 10 similar proceedings with other operational and financial creditors.

This comes days after  BYJU’S moved the Karnataka High Court challenging the order of the NCLT restraining it from going ahead with the second tranche of its $200 Mn rights issue.

The development comes at a time when BYJU’S is embroiled in multiple legal cases in courts across India and the US. Disgruntled investors have accused the company of violating the NCLT’s February order.

The story traces its origins to February 2024, when reports surfaced that the edtech major was looking to undertake a rights issue at a 99% valuation cut. Subsequently, investors organised an extraordinary general meeting (EGM) in a bid to remove CEO Byju Ravendran and his family from leadership at the company.

The edtech giant’s net loss widened by 81% to INR 8,245.2 Cr in FY22 from INR 4,564.3 Cr in FY21. Operating revenue rose over 120% year-on-year to INR 5,014.6 Cr during the year under review.

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General Atlantic’s India and Southeast Asia head and managing director, Sandeep Naik, will be transitioning into an advisory role within the private equity firm by the end of this year.

As per Moneycontrol’s report, Naik will be moving on from his position, following which responsibilities will be shared between Shantanu Rastogi in India and Neal Kok in Southeast Asia. Rastogi, a long-time executive at the firm, became managing partner in 2017 and has shared the title of India head with Naik for the past few years. 

General Atlantic has declined Inc42’s queries on the development.

Currently, Naik heads operations for India and the Asia Pacific region, managing and overseeing all of General Atlantic’s investments in these areas. He joined the firm as managing director and head of its India office in 2012, following his tenure at Apax Partners. 

Among his philanthropic endeavours, he cofounded ToolBox India, an organisation that connects professionals and non-profits to enhance productivity and efficiency in the social sector.

Since late 1990s, General Atlantic has invested over $6 Bn in 45 companies across India and Southeast Asia. 

The fund has backed over 440 firms, including BYJU’s, Unacademy, PhonePe, Acko, Amagi, BillDesk, and NoBroker. Besides, it also counts legacy companies like PNB Housing Finance, Rubicon Research, and Capital Foods (Ching’s Secret) among its portfolio.

Earlier this year, General Atlantic hired former KKR director Neal Kok to lead its investments in Australia and the Asia Pacific region. Last month, the firm announced that Anand Agarwal, CFO of Amazon’s consumer business in India, would join the regional leadership team as an Operating Partner for India and Southeast Asia.

Reportedly, General Atlantic plans to invest up to $1 Bn annually in India over the next few years, focusing on businesses aligned with Prime Minister Narendra Modi’s initiatives to expand financial inclusion and technology usage. 

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Women-focused neobanking startup LXME has raised $1.2 Mn (INR 10 Cr) in a seed funding exercise led by Kalaari Capital via its CXXO initiative.

The round also saw participation from a host of other investors, including Singularity Ventures’ founder and chief investment officer Yash Kela; Amaya Ventures; Capri Holdings; Aditi Kothari, vice chairperson of DSP Asset Managers, Vivek Vig, Sumit Jalan and Avinash Pahuja among others.

Founded by Harvard Business School graduate Priti Rathi Gupta, the Mumbai-based startup will use the fresh capital to ramp up its market outreach and expand product offerings. 

Further, the proceeds will be deployed for brand building, user acquisition across India as well as boosting technology and product stack.

“I am beyond thrilled and deeply emotional to share a major milestone in our journey at Lxme. We have successfully closed $1.2 Mn in our first round of funding.” Gupta said in a LinkedIn post.

Founded in 2021, LXME taps into the middle-income segment and helps women control their finances better. The platform offers the usual features of a neobank, investment and insurance products, financial planning calculators and financial literacy modules. It also provides financial education to help women make better financial decisions and access a community of over 400K women.

It claims cumulative downloads of more than 100K downloads as well as 30 Mn+ content views across a community of 4K+ women. It also plans to take the number of women on its platform to more than 10 Mn in the next five years.

Vani Kola, managing director, Kalaari Capital, said, “LXME’s dedication to financial literacy and inclusion for women perfectly aligns with the core values of Kalaari and CXXO.”

Kalaari Capital launched the CXXO initiative in 2021 to educate, empower, and invest in emerging women entrepreneurs. CXXO supports female founder-CEOs through its three pillars: capital, community, and coaching.

According to the LXME and Women Money Power 2022 report, out of 560 Mn women with bank accounts, only 8 Mn invest, with just 1% doing so independently. Women face challenges in growing their wealth, accessing credit, and securing funding for ventures, and 65% lack health insurance. LXME aims to address these gaps by offering women access to a transformative financial platform. 

It competes against the likes of Groww, Zerodha, among others.

Digital lending has become a lucrative business opportunity for India’s fintech players. According to Inc42’s ‘State of Indian Fintech Report Q4 2023’, the lending tech opportunity in the country is expected to reach $1.3 Tn by 2030.

The post Women-Focused Neobanking Startup LXME Bags Seed Funding From Kalaari Capital, Others appeared first on Inc42 Media.

Troubled edtech firm BYJU’S has moved the 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.

The plea is likely to come up for hearing today (June 24), ET reported.

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

This follows a previous order dated February 27, where the NCLT instructed BYJU’S not to issue shares without increasing its authorised share capital and to keep funds from a rights issue in a separate escrow account until the matter is resolved. 

The tribunal’s decision came after objections were raised regarding BYJU’S second rights issue, which began on May 13 and has been halted pending resolution of issues related to the first rights issue.

Following this, the tribunal restrained BYJU’S from going ahead with the second rights issue till the petition against the first rights issue is disposed of.

“The Respondents (BYJU’S) are further directed to keep the amounts collected so far since opening of the second rights issue in relation to this offer in a separate account which should not be utilised till the disposal of the main petition in CP No. 18/BB/2024. Further, status quo with regard to existing shareholders and their shareholding shall be maintained till the disposal of the main petition,” back then the tribunal said.

The development comes at a time when BYJU’S is embroiled in multiple legal cases in courts across India and the US. Disgruntled investors have accused the company of violating the NCLT’s February order.

The story traces its origins to February 2024, when reports surfaced that the edtech major was looking to undertake a rights issue at a 99% valuation cut. Subsequently, investors organised an extraordinary general meeting (EGM) in a bid to remove CEO Byju Ravendran and his family from leadership at the company.

Despite legal challenges, the EGM proceeded along with the rights issue, leading disgruntled investors to file a petition with the NCLT alleging oppression and mismanagement within the company. The investors, including Peak XV Partners, General Atlantic, Chan-Zuckerberg Initiative, and Prosus, claimed that BYJU’S was using funds from the $200 Mn rights issue against the Tribunal’s order to maintain shareholding status quo.

The investor plea also claimed that BYJU’S had not deposited the money it received from rights issue prior to February 27 in the escrow account. 

However, the company denied any wrongdoing. 

BYJU’S net loss surged 81% YoY to INR 8,245.2 Cr (close to $1 Bn) in FY22 even as operating revenues also rose over 120% to INR 5,014.6 Cr during the year under review, largely on the back of the coaching arm Aakash.

The post Second Rights Issue: BYJU’S Moves Karnataka HC Against NCLT Order appeared first on Inc42 Media.

Despite the sharp re-rating of internet stocks, foreign brokerage Morgan Stanley remains logged into internet stocks, preferring Zomato and PB Fintech over other players. 

The brokerage reiterated its overweight call on Zomato, setting a target price of INR 235 per share, implying a 21% upside from the previous close.

As per a Moneycontrol report, Morgan Stanley highlighted that all macro and micro factors are currently favourable for India’s internet stocks. 

As dispersion in stock returns increases, the focus on stock-specific selection becomes crucial, considering the operating environment, track record, outlook, and valuation. Based on these criteria, Zomato and PB Fintech are outperforming other internet players, making them Morgan Stanley’s top picks.

The brokerage noted that Zepto’s latest funding round has increased the relevance of the quick commerce channel. Zomato, a key player in this space, bolstered its position with the acquisition of BlinkIt in June 2022.

However, there is a strong likelihood of increased competitive intensity in the near term. If competition intensifies, Morgan Stanley believes BlinkIt could struggle to achieve profitability, failing to meet current assumptions.

This could lead to selling pressure on the stock. However, the brokerage stated that any potential correction in Zomato presents a good buying opportunity for long-term investors.

Zomato shares have surged 160% over the past year, significantly outperforming the 25% rise in the frontline index Nifty 50 during the same period, added Moneycontrol.

Over the past five quarters, it consistently gained momentum, becoming one of the hottest stocks with a market cap touching $20 Bn (INR 1.6 Lakh Cr) and recording record profits of INR 351 Cr ($40 Mn) by FY24. 

However, since its Q4 results, Zomato has experienced volatility, reaching an all-time high of INR 207 in May but subsequently declining over 11% to INR 183.65 by early June, reflecting investor uncertainty amid broader market fluctuations.

Last month, shares of foodtech major Zomato tanked about 5% during intraday trading on Friday, May 31, dropping to INR 172.5 from the previous day’s close of INR 180.55. This decline followed Macquarie’s prediction of a nearly 50% drop in Zomato’s share price over the next 12 months. 

The post Morgan Stanley Stays Bullish on Zomato, PB Fintech Amid Internet Stock Surge appeared first on Inc42 Media.

SaaS startup Unicommerce Esolutions has added Starfish I Pte Ltd and Snapdeal cofounders Kunal Bahl and Rohit Kumar Bansal as its promoters in its IPO documents filed with the Securities and Exchange Board of India (SEBI).

In an addendum filed with the markets regulator earlier this month, the startup said that the three will be tagged as promoters with effect from May 29.

Starfish is an investment holding company and is 100% owned by SoftBank. It did not hold any shares in Unicommerce as of May 29. SoftBank holds a stake in Unicommerce via SB Investments Holdings (UK) Ltd.

It is pertinent to note that Unicommerce, in its draft red herring prospectus (DRHP), filed in January this year, classified only AceVector Ltd (formerly Snapdeal) as a promoter.

Ahead of the new additions to the promoter list, SoftBank-owned Starfish also signed an indemnity agreement with AceVector, Bahl, and Bansal on May 17 to protect itself and its employees from any claims arising out of it being tagged a promoter of the startup, as per the addendum.

“In the event a Loss has arisen out of or on account of a Claim… against Starfish, its affiliates, its directors, agents, officers, representatives and employees (“Starfish Indemnified Persons”), in accordance with the terms of the Indemnity Agreement, among others, in connection with any Claims against the Starfish Indemnified Persons on account of Starfish being classified and named as a Promoter of our Company, the Responsible Promoters will be required to indemnify, defend and hold harmless Starfish Indemnified Persons… ” the addendum read.

The development was first reported by Moneycontrol.

Meanwhile, a Unicommerce spokesperson told Inc42, “AceVector, along with Bahl and Bansal, have been the operators of Unicommerce, whereas SoftBank has been a financial investor. Pursuant to all entities being classified as promoters of Unicommerce, the operating entities have agreed to indemnify the financial investor. The same has been recorded in the company’s filings with SEBI as well.” 

Unicommerce was founded by three classmates at IIT Delhi – Ankit Pruthi, Karun Singla and Vibhu Garg. It was later acquired by Snapdeal in 2015. Unicommerce provides a suite of SaaS products that it claims enables enterprises and small and medium businesses (SMBs) to efficiently manage their entire journey of post-purchase ecommerce operations. 

Its suite also includes a warehouse and inventory management system (WMS), a multi-channel order management system (OMS), an omnichannel retail management system (Omni-RMS), a seller management panel for marketplaces (Uniware), post-order services for logistics tracking and courier allocation (UniShip), and payment reconciliation (UniReco).

As per the startup’s DRHP, its IPO will comprise only of offer for sale (OFS) and there would be no fresh issue. of shares.

While SB Investment Holdings (UK) is looking to sell up to 1.6 Cr shares in the IPO, AceVector is looking to offload up to 1.14 Cr shares. B2 Partners intends to sell up to 22 Lakh shares via the OFS route. 

Unicommerce reported a net profit of INR 6.3 Cr in H1 FY24. In FY23, the startup’s net profit increased by 8% to INR 6.4 Cr from INR 6 Cr in the previous fiscal year. 

Operating revenue stood at INR 51 Cr in H1 FY24. In FY23, the operating revenue grew 52% to INR 90 Cr from INR 59 Cr in FY22.

The post Unicommerce IPO: SoftBank, Snapdeal Cofounders Added As Promoters appeared first on Inc42 Media.

A day after Goldman Sachs initiated coverage on the stock with a ‘buy’ rating, shares of geotech startup MapmyIndia reached an all-time high of INR 2,745.05 during the intraday trading on the BSE on Friday (June 21).

The company’s shares opened today at INR 2,547, marking a more than 6% increase from the previous close, before hitting the new peak.

Goldman Sachs initiated its coverage of MapmyIndia with a price target of INR 2,800. Following this, the stock jumped 20% and touched its upper circuit at INR 2,401.9 on the BSE on Thursday.

In its report, Goldman Sachs highlighted MapmyIndia’s advantageous early market position in high-growth sectors such as automotive navigation, mapping devices, connected vehicles, telematics, and government digitisation. 

The brokerage forecasts a revenue CAGR of 38% in the FY24-FY27 period, with a steady EBITDA margin in the 38% to 41% range.

MapmyIndia is a deeptech company focused on maps, navigation, tracking, analytics, GIS, GPS, IoT, and location technologies.

It offers its proprietary digital maps as a service, software as a service, and platform as a service, including its advanced digital map data, software products, platforms, application programming interfaces, IoT and solutions to new-age tech companies, large businesses, automotive OEMs, government organisations, developers and consumers.

MapmyIndia divides its revenue into two market categories – automotive and mobility technology (A&M) and consumer technology and enterprise digital transformation (C&E). The revenue of the C&E segment grew 49% year-on-year to INR 194 crore in the financial year 2023-24 (FY24), while A&M revenue increased 23% to INR 186 Cr.

During the FY24 earnings announcement, MapmyIndia highlighted that over 2.5 Mn new vehicles, spanning four-wheelers, two-wheelers, and commercial vehicles in both traditional internal combustion engine (ICE) and electric vehicle (EV) segments, integrated MapmyIndia Mappls — a 32% increase from the previous year.

Overall, MapmyIndia’s operating revenue stood at INR 379.4 Cr in FY24, an increase of 35% YoY. Its profit after tax rose 25% YoY to INR 134.3 Cr in the last fiscal.

Shares of MapmyIndia shed some of the gains after reaching the all-time high and were trading 5.2% higher at INR 2,526.60 on the BSE at 11:25 AM.

The post MapmyIndia Shares Touch All-Time High Following Goldman Sachs ‘Buy’ Rating appeared first on Inc42 Media.

D2C luggage maker EUME has raised INR 15 Cr ($1.7 Mn) in a Pre-Series A funding round led by ace investor Ashish Kacholia, who contributed 80% of the total amount. Kennis Ventures served as the strategic advisor for the funding round.

EUME will use the funds to streamline operations, expand its team, drive innovation, build an offline retail presence, invest in technology and enhance brand awareness through targeted marketing campaigns.

Founded in 2018 by Naina and Pranay Parekh, the Mumbai-based startup offers a diverse product range, including luggage, backpacks, vegan handbags, and accessories. 

In a statement, Naina, the cofounder of EUME, said, “This latest infusion of funding not only strengthens our market position but also demonstrates confidence in India’s growing travel and lifestyle sector.”

“Today’s Tier-II and Tier-III cities are also very well exposed to premium brands. So, to tap into these kinds of aspirational people is a very big expansion goal. Going international is also one of our goals,” she added.

The brand plans to open its first flagship store this year in Mumbai. 

The startup competes with the likes of Mokobara, Nasher Miles, ICON, and Nasher Miles in the luggage space.

The D2C brand is reportedly targeting a revenue of INR 65-70 Cr by the end of FY25.

According to a market study, the Indian luggage market is currently estimated to be worth $15.05 Bn and is expected to grow at a CAGR of 5.21% till 2028. As a result, startups in the sector are seeing a lot of investor interest.

Last month D2C luggage and travel accessories startup ICON raised $1.2 Mn (approx INR 10 Cr) in a seed funding round led by DSG Consumer Partners. 

In March, Safari Industries (India) raised INR 229 Cr (around $27 Mn) from growth-stage venture capital firm Lighthouse’s fourth alternative investment fund (AIF). 

In the same month, Mokobara secured funding worth $12 Mn led by Peak XV Partners, which took the startup’s valuation  to $80 Mn. 

The post D2C Luggage Maker EUME Bags Funding To Build Offline Presence appeared first on Inc42 Media.

Foodtech major Swiggy has launched its recruitment support initiative to assist restaurant partners with staff recruitment.  

As a part of this initiative, the company has partnered with staff hiring experts like Apna, WorkIndia, Kaam and Shiftz to help restaurants connect with qualified candidates across various roles, including cooks or chefs, kitchen helpers and service and cleaning staff.

Swiggy has integrated this staffing solution into the Swiggy Partner App. This will help restaurant partners find talent quickly and efficiently through direct access to job listings and candidate databases from top hiring experts, with exclusive discounts. 

With this initiative, the company aims to streamline the hiring process, cut down on costs and enable restaurant partners to concentrate on delivering exceptional food.

Through this partnership, Swiggy will facilitate the hiring of restaurant staff across different roles and offer restaurant owners access to a vast talent pool at competitive rates. 

Deepak Maloo, AVP of Supply at Swiggy, said, “The Staffing Support initiative reflects our commitment to provide comprehensive solutions for their operational challenges. By partnering with leading staffing vendors, we aim to simplify hiring, reduce costs, and help our partners focus on delivering great customer experience.” 

This comes days after Swiggy relaunched its gourmet grocery delivery in Bengaluru, introducing it as a new category on its quick-commerce platform, Swiggy Instamart. The revamped service allows users to access a diverse range of products, including local, regional, and select new-age brands, clean-label items, freshly prepared foods, and gourmet offerings, all with delivery promised within 10 minutes in the city.

Besides, last month, Swiggy revived its homestyle meal delivery service, Swiggy Daily, after a four-year hiatus during the pandemic. Additionally, it merged Swiggy Mall with Instamart and integrated its premium grocery vertical, InsanelyGood, with the quick commerce arm.

The development also coincides with Swiggy’s preparations for its IPO. Having filed its draft red herring prospectus (DRHP) last month through the confidential pre-filing route with SEBI, the Bengaluru-based foodtech giant secured approval from its shareholders for a public issue valued at INR 10,414.1 Cr ($1.2 Bn). 

This offering includes a fresh issue of shares worth INR 3,750.1 Cr (about $449 Mn) and an offer-for-sale component of INR 6,664 Cr (around $799 Mn), as indicated by regulatory filings.

Meanwhile, concerns persist regarding the startup’s valuation, previously marked at $10.7 Bn during its fundraising in 2022. Shares of Swiggy are currently trading at INR 320-350 in the unlisted market, indicating a valuation of $9 Bn to $9.5 Bn.

In anticipation of a substantial IPO, potentially the second-largest in India after Paytm, Swiggy has been aggressively cutting costs and optimising operations. This strategy resulted in a reduced net loss of $207 Mn (INR 1,730 Cr) in the first nine months of FY24 compared to INR 4,179.3 Cr for the entire FY23. 

The post Swiggy Rolls Out Initiative To Assist Restaurant Partners With Staff Recruitment appeared first on Inc42 Media.

Online travel aggregator (OTA) Yatra Online has agreed to buyout its partner’s stake in the joint venture Adventure and Nature Network Private Limited (ANN), operating in the field of adventure tourism, in an all cash deal. 

Yatra Online will be picking up an additional 45% stake in ANN, raising its shareholding from 50% to 99%. 

With this, ANN will become a subsidiary of Yatra Online.

The company has acquired 33,12,400 equity shares of INR 10 each, representing 49% of the issued and paid-up equity share capital (on a fully diluted basis) of the target company from the joint venture partner. The cost of acquisition for the shares is INR 98 Lakh, as per filings.

Founded in 2012, ANN has a paid up equity share capital of INR 6 Cr, consisting of INR 6 Lakh equity shares of INR 10 each. 

With this acquisition, the company aims to increase its presence in the adventure tourism space by focusing on key areas. It expects that acquiring the stake from the joint venture partner will enhance its activities by converting the JV entity into a subsidiary, bringing in valuable synergies.

The acquisition was formalised through a share purchase agreement (SPA) executed on June 19, 2024. With the completion of this transaction on the closing date specified in the SPA, Yatra Online Limited now holds a controlling interest in ANN.

As per a regulatory filing, this acquisition aligns with Yatra’s growth objectives and reinforces its commitment to expanding its footprint in the adventure tourism industry.

Gurugram-based Adventure and Nature Network Private Limited (ANN) is a private limited company engaged in providing services related to transport, travel, and tourism, and organises activities such as trekking, cycling, camping, and sports events.

Yatra reported a consolidated net loss of INR 4.5 Cr in the financial year 2023-24 (FY24), compared to a net profit of INR 7.6 Cr in the previous fiscal year. The loss was mainly due to a surge in expenditure outpacing sales.

Additionally, the OTA’s consolidated net profit declined 37% to INR 5.57 Cr in the fourth quarter (Q4) of FY24 from INR 8.96 Cr in the same period the previous year. Operating revenue increased by 11% to INR 422.3 Cr in FY24 from INR 380 Cr in FY23, but it dipped 10% year-on-year (YoY) to INR 107.7 Cr during January-March 2024.

Besides, last month, the company also rolled out an AI-based expense management solution to help international and domestic enterprises manage their business expenditures efficiently. 

It is pertinent to note that Yatra got listed on the US stock exchange in 2016. The company saw a muted listing on the Indian bourses last year in September. 

The post Yatra Online Picks Up Additional 45% Stake In ANN appeared first on Inc42 Media.

In 2014, when Direct-to-Consumer (D2C) wasn’t the norm and ecommerce giants like Flipkart and Amazon ruled the online retail arena with an iron fist, Mohali-based ayurvedic beauty and personal care startup Just Herbs had already marked its foray into the Indian D2C realm.

Now, it wouldn’t be wrong to say that today the trio of Just Herbs’ founders, Dr Neena Chopra, Arush Chopra and Megha Sabhlok, have seen it all — the beginning of the era of online marketplaces, the rise and fall of private labels, and the rise of the D2C paradigm in India.

Imperative to highlight the meteoric rise of D2C was marked by the influx of venture capital funding around 2016-2017 and the emergence of new fashion, beauty, furniture and other kinds of brands.

During this time, companies like Pepperfry, Urban Ladder, and an array of lesser-known brands received significant growth and investment. This led to an increase in competition and customer acquisition and retention costs. While some survived, many had to close shops as funding dried up in the ecosystem and runways ran thin.

Amidst the hysteria related to VC funding, break-neck growth and the wave of shutdowns, the Mohali-based startup continued unhinged, banking on consumer-centric innovation, in-house manufacturing, and adaptability to market trends.

This is probably what made Marico, an Indian consumer goods multinational, acquire Just Herbs, the brand that offers a range of Ayurvedic skin, hair care and makeup products, in 2021.

Among other factors could be Just Herbs’ cockroach-like approach, which is the ability to survive despite all odds.

Notably, before being acquired by Marico, the startup sold via its website and online marketplaces and had six exclusive brand outlets in Chandigarh, Hyderabad, and Mumbai.

It was also the time when several D2C brands had a heavy reliance on VC money but did not flinch before burning it all. Bucking the trend, Just Herbs decided to merge with Marico, a strategy that helped it expand to over 500 retail touchpoints across India, all manned with beauty advisors for an impeccable customer experience.

It is on the back of this pivot that the brand’s top line has grown substantially since its acquisition. From garnering INR 17.5 Cr in FY21, the cofounders claim to have crossed the INR 100 Cr revenue run rate in FY24.

Just Herbs’ Inception Story

The inspiration to incorporate Just Herbs comes from Arush’s mother Dr Neena, a biochemist who was invested in creating skincare products using herbs and plants.

Inspired by her formulations, Arush and Sabhlok envisioned turning her formulations into a brand, and from there emerged Just Herbs. While Sabhlok became the financial controller and COO, Arush drove the business as the CEO.

Although the cofounders listed their products on Amazon and Nykaa, their key focus has always been D2C. According to Arush, they have been focussed on doing D2C when the term did not even exist.

The cofounders told Inc42 that they were initially focussed on building a product company and a brand, without much fixating on online sales. However, selling online felt necessary, this is because traditional distribution methods like selling via chemist shops posed credit risks, and margins in supplying to hotels were too thin to sustain.

“The online space seemed promising and made sense because many competitors only had basic websites without ecommerce capabilities. So, we dove into online marketing, learning Facebook advertising and Google ads. Despite disagreements and concerns about spending our savings, we persisted,” Chopra said.

He added that despite their presence on online marketplaces, they wouldn’t conduct business there, and it was only in 2021 that they actively started promoting their sales on these platforms.

The brand that started with only three SKUs today boasts 150 formulations across segments like skin, hair, bath & body, natural makeup, fragrances, and gifting.

How Just Herbs Cracked The Customer Acquisition Code?

During the first five years of its ten-year journey, the startup focussed on and grew through customer support by taking feedback from customers and enhancing their range of products.

However, as per the Chopras, navigating ecommerce complexities proved challenging. The reality of low conversion rates and fierce competition quickly set in, as understanding and adapting to the nuances of online consumer behaviour became essential for survival.

From 2014-2016, the founders focussed on their website as the primary sales channel. Selling directly through their website ensured quick payments, typically within seven days.

In contrast, dealing with distributors or platforms like Amazon took longer credit terms and was fraught with delays.

It was also the time when the website data revealed a low conversion rate of 2-3%. Even marketing methods like Facebook ads failed to deliver results. Thus, the startup turned to WhatsApp for direct customer consultations and feedback.

In 2017, the founders launched JustHerbs Insiders, a Facebook community for direct feedback, enabling 3,000 to 4,000 women to share experiences. That year, the company achieved sales of over 30 Lakh through its website.

This period also marked the startup’s first breakthrough when some buyers from the US expressed interest in featuring its products on TV.

“Initially, we started with around 100 orders per day on our website. This gradually increased to 500 orders a day, and now we are touching 5,000 orders per day,” Chopra said.

Chopra added that a standout success factor for them has been the development of a lightweight foundation, requested by members. Through Just Herbs Insiders (JH Insiders), prototypes were distributed to 300-400 women, a strategy that eventually proved beneficial.

“This resulted in the successful development of 5-6 new products, including our lightweight foundations and natural makeup lines,” he added.

Following this success, the company expedited its customer engagement initiatives. Amid the pandemic, they launched 16 herb-enriched lipsticks, which became top sellers, crossing the 10 Mn mark in sales in 2020.

Post the Marico acquisition in 2021, the company refined strategies for the management of customer acquisition cost (CAC), shifting focus to customer retention and nurturing.

The founders diversified marketing channels, moving from over-reliance on meta apps to Google Ads, affiliates, and influencers while prioritising cost-effective channels and exploring partnerships with banks to optimise spending.

The startup also made significant investments in marketing initiatives, such as collaborating with celebrities like Athiya Shetty and producing brand films, aiming for brand visibility.

Just Herbs’ Strategy To Lure GenZes

Over the last five years, Just Herbs noticed a gap in India’s booming Ayurvedic beauty market. The cofounders saw that while interest in Ayurveda was growing, there was little appeal to these products.

Bridging this gap, they decided to modernise their packaging and branding to attract younger consumers with a fresh, modern look. This approach helped them stand out as leaders in combining Ayurveda with modern skincare, according to Chopra.

Next, instead of directly competing with well-known brands like The Ayurveda Co. (T.A.C), Forest Essentials, Kama Ayurveda, The Body Shop and L’Oréal, Just Herbs aimed to be a leader in merging traditional and modern beauty. Chopra mentioned that they found their niche by focussing on younger people who were interested in modern Ayurvedic products.

Initially, their target audience was people aged between 30 and 45. They later expanded this range to include those aged 25 to 45.

“We introduced innovative products like lip and cheek tints and Ayurvedic micellar water to connect with millennials and GenZ, reaching an underserved market,” the cofounder said.

Additionally, they focussed on creating products together with their customers to ensure they are relevant and authentic.

What’s Ahead For Just Herbs

Going forward into FY25, the startup plans are aligned with Marico’s overarching objectives.

“With a presence in four portfolios, we aim to foster cohesive growth across all segments. While the past 18 months have been dedicated to completing the makeup portfolio, our vision now extends to establishing Just Herbs as a household name both domestically and internationally. Our ambition remains to make the startup a recognisable brand beyond India’s borders in the future,” Chopra said.

The startup also aims to continue innovating with an average of 3-4 new product launches per month.

Besides, it plans to focus on its recently launched Fragrance category, which is divided into four subcategories (perfume, deodorant, body mist, roll-on deo) for both male and female. This category offers cruelty free and vegan products, with prices ranging from INR 295 to INR 649.

While the startup’s future plans are aligned with Marico, Arush wants the brand to become a go-to household name in the Ayurveda industry, which is anticipated to become an INR 3.2 Lakh Cr opportunity by 2032, growing at a CAGR of 17% between 2024-2032.

Update | June 21, 15:00 IST

The story has been updated to rectify the revenue run rate of the company.

[Edited by Shishir Parasher]

The post How Just Herbs Grew 5X To Hit INR 100 Cr Revenue Run Rate In 3 Years Post Marico Takeover appeared first on Inc42 Media.

The Centre is likely to review the progress of the INR 10,372 Cr India AI Mission this week to work out various details of the programme.

Citing a senior government official, ET reported that the meeting will focus on several key aspects, including the quantum of viability gap funding required to establish sufficient compute infrastructure in the country, strategies to address the AI skill gap, and the implementation of the IndiaAI Datasets Platform planned under the scheme.

The meeting is likely to be headed by union electronics and information technology minister Ashwini Vaishnaw.

This comes a month after S Krishnan, secretary of the Ministry of Electronics and Information Technology (MeitY), said that the Centre plans to regulate AI in a way that does not deter innovation in the space. 

Back then, Krishnan mentioned that the government would adopt a similar approach to that used while framing the Digital Personal Data Protection Act for preparing AI regulations.

In March, the Union Cabinet approved the IndiaAI Mission with an allocation of INR 10,372 Cr over the next five years. The funds will foster innovation in the homegrown AI ecosystem and implement the Mission’s vision via a public-private partnership (PPP) model. 

Additionally, part of the outlay will be utilised to facilitate funding for emerging AI startups and spur innovation in the sector.

As per the Centre, the allocation will cover initiatives such as IndiaAI Compute Capacity, IndiaAI Innovation Centre (IAIC), IndiaAI Datasets Platform, IndiaAI Application Development Initiative, IndiaAI FutureSkills, IndiaAI Startup Financing, and Safe & Trusted AI.

Among the seven pillars of the IndiaAI Mission, the government aims to provide streamlined funding support for deep-tech startups in the AI space, establish an India AI innovation center, and create an AI datasets platform.

The IndiaAI Mission comprises the following pillars:

• IndiaAI Compute Capacity: It envisions building a cutting-edge, scalable AI computing infrastructure by deploying more than 10,000 Graphics Processing Units (GPUs) through PPP model
• IndiaAI Innovation Centre (IAIC): With this, the Centre is looking to create a leading academic institution to retain top research talent, develop and deploy indigenous large multimodal models (LMMs) and domain-specific models
• IndiaAI Datasets Platform: This platform will be developed by IndiaAI’s independent business division (IBD) and will look to enhance accessibility, quality, and utility of public sector datasets
• IndiaAI FutureSkills: This program will focus on expanding the accessibility of graduate and post-graduate AI programs as well establishing AI Labs to impart foundational-level courses in the domain

The statements come at a time when the usage of AI, especially generative AI (GenAI), is increasing rapidly across the globe. While AI is expected to solve problems across countries and sectors, there are also concerns about its misuse.

Earlier this year, Prime Minister Narendra Modi mentioned the potential for AI misuse without proper training. Prior to that, Rajeev Chandrasekhar, Minister of State for MeitY, announced that the draft regulatory framework for AI would be released by July this year.

The Centre also issued an advisory earlier this year, asking digital platforms to get government’s approval before launching “under-tested” or “unreliable” AI models. However, the advisory was withdrawn following criticism from the industry.

Amid all these, AI adoption is on the rise in the country and a number of AI startups have emerged over the past few years.

Yesterday, Maxim AI raised $3 Mn (around INR 25 Cr) in a seed funding round led by Elevation Capital.

Two days ago, GenAI-powered product photography startup Ayna raised $1.5 Mn (about INR 12.5 Cr) to expand its AI capabilities and scale its team.

The post Govt Likely To Review Progress Of INR 10,372 Cr India AI Mission This Week: Report appeared first on Inc42 Media.

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.

Chinese smartphone maker Vivo is set to unveil one of India’s largest mobile phone manufacturing facilities next month.

This manufacturing unit will boast an annual production capacity of 120 Mn devices, set up with an investment of over INR 3,000 Cr, ET reported.

This comes days after it was reported that Tata Group was in talks to acquire a majority stake in Vivo’s Indian unit.

The report further said that Vivo is seeking an Indian joint venture (JV) partner for its manufacturing operations and also held talks with Tata Group and the Murugappa Group, but negotiations stalled due to disagreements over valuation.

Inc42 has reached out to Vivo for a comment on the development. The story will be updated based on the response.

“Vivo is keen on having a strong Indian partner for its operations. While nothing has been finalised so far around the JV, talks are on with a few stakeholders,” a source was quoted as saying by ET.

Besides, in April, OPPO and Vivo began discussions with several Indian companies in the handset sector as they seek potential partners for their operations in India. These discussions involved Dixon, Lava International, Optiemus, Bhagwati (Micromax), and UTL Neolyncs.

As per ET, Dixon is in initial talks with Vivo for a joint venture similar to its deal with Transsion for manufacturing operations.

The company recently vacated its leased manufacturing unit with a capacity of 40 Mn devices, which has now been taken over by Micromax Informatics’ manufacturing unit, Bhagwati Enterprises.

As per the report, Vivo’s new unit, spanning 170 acres in Greater Noida, compares with Samsung’s mobile phone manufacturing facility—the country’s largest—which was inaugurated in 2018 and also has an annual capacity of 120 Mn units.

With Chinese smartphone companies under scrutiny in India, including allegations of customs duty evasion and money laundering, the government is promoting local control in the mobile phone sector through its ‘Make In India’ initiative.

Meanwhile, BBK Group, the Chinese mobile phone maker, has partnered with Indian manufacturers Dixon Technologies and Karbonn Group to produce Oppo, Vivo, and Realme smartphones. Chinese brands like Xiaomi and Realme have also engaged Indian entities for distribution.

The post Vivo To Unveil INR 3,000 Cr Smartphone Manufacturing Plant In India Next Month: Report appeared first on Inc42 Media.

Personal care major Lotus Herbals has reportedly floated a $50 Mn fund to invest in early stage startups in the beauty category. 

As per ET’s report, the Lotus Innovation Fund is the second such fund to be launched in India. In 2022, New Incubation Ventures launched a strategic early stage investment fund with Nykaa.

Globally, L’Oreal has an Inclusive Beauty Fund, and Unilever invests in beauty startups through Unilever Ventures.

“We will invest in patent-driven startups that require capital; that’s a white and scalable space, amid a very cluttered market with limited differentiation and a lot of brands being deeply discounted,” Nitin Passi, managing director of Lotus Herbals told ET.

Inc42 has reached out to Lotus Herbals for a comment on the development. The story will be updated based on the response.

In 2022, Lotus Herbals acquired a 20% stake in Yogic Secrets. Following this deal, the nutraceutical startup secured an undisclosed amount of strategic funding from the family office of Lotus Herbals. This development came less than a month after Lotus Herbals invested $220 K in TV actress Anita Hassanandani’s D2C startup, Better Beauty.

Additionally, in October, Lotus Herbals backed the clean beauty marketplace Vanity Wagon, and in January, the cosmetics brand acquired a 25% stake in Conscious Chemist. 

Founded in 1993, Lotus Herbals is a natural cosmetics company that blends the 5,000-year-old science of Ayurveda with modern technology. They claim to offer a well-researched range of over 500 skincare, haircare, suncare, and makeup products for both retail and professional markets.

Lotus Herbals’ portfolio includes Fixderma India, the owner of Fixderma and FCL, and SoulTree.

Passi added the cosmetics maker is looking to invest in startups with an “innovation plus growth” mindset. “We will back select two-three companies every year, hand-hold them for five-seven years, and focus only on India.”

An Inc42 report estimates that India’s beauty and personal care market is growing at a CAGR of 12.5% and is projected to reach $37.2 Bn by 2025.

This development comes at a time when startups in the beauty and personal care segment are witnessing significant interest from investors. 

A few days back, D2C beauty brand RENEE Cosmetics raised INR 100 Cr (around $11.9 Mn) in its Series B1 funding round co-led by existing backers Evolvence India and Edelweiss Group.

In the same month, D2C personal care startup 82°E raised INR 50 Cr (around $6 Mn) as part of its extended seed funding round.

Earlier this month, Skincare solution startup CHOSEN by Dermatology secured seed funding of $1.2 Mn from friends and family. 

Last year, another BPC startup Clensta bagged INR 75 Cr in a funding round led by TradeCred.

The post Lotus Herbals Floats $50 Mn Fund To Back Beauty Care Startups: Report appeared first on Inc42 Media.

Tata Group is reportedly in discussions to acquire a majority stake in Vivo’s Indian unit, in response to government initiatives urging the involvement of domestic companies in operations such as manufacturing and distribution.

“The discussions have reached an advanced stage where talks began around valuations. Vivo has been seeking a higher valuation than what Tatas are offering. The Tatas are interested in the deal, but nothing has been finalised yet,” Moneycontrol reported, citing sources close to the matter.

This comes at a time when major Chinese smartphone companies in India are facing increased scrutiny, with allegations ranging from customs duty and income tax evasion to money laundering.

In April, Chinese smartphone companies Oppo and Vivo began discussions with several Indian companies in the handset sector as they seek potential partners for their operations in India. These discussions involved Dixon, Lava International, Optiemus, Bhagwati (Micromax), and UTL Neolyncs.

As per Moneycontrol, Bhagwati Products (Micromax) has taken over Vivo’s manufacturing facility in Greater Noida, where it is now hiring staff and preparing to commence smartphone production. 

The facility will operate under Bhagwati’s original design manufacturing joint venture with Huaqin. Approval from the Indian government is pending for this joint venture, the report added.

The report further added that Vivo has relocated its manufacturing operations to its new 170-acre factory in Greater Noida, which is expected to be fully operational in the near future.

Amid India’s ‘Make In India’ initiative, the government seeks to boost local control in the mobile phone sector. The Centre is also encouraging Chinese firms to partner with Indian companies, appoint Indian executives in key roles, and maintain a minimum 51% stake in joint ventures. 

Discussions also involve outsourcing smartphone manufacturing to domestic firms, leveraging Production Linked Incentive (PLI) benefits.

Meanwhile, BBK Group, the Chinese mobile phone maker, has partnered with Indian manufacturers Dixon Technologies and Karbonn Group to produce Oppo, Vivo, and Realme smartphones. Chinese brands like Xiaomi and Realme have also engaged Indian entities for distribution.

Additionally, Apple has significantly increased its manufacturing efforts in India amidst geopolitical tensions between Beijing and Washington. Currently, India accounts for approximately 7% of global iPhone production.

Apple began scaling up production in India in 2021 due to supply chain disruptions caused by COVID-19 restrictions in China and escalating tensions between the two global powers.

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