🚀 Medial Secures Investment on Shark Tank India - Fueling the Future of Professional Social Networking. 🔥
Login

News on Medial

Related News

Why Ola’s Path To Green Mobility Is Full Of Twists And Turns

Inc42Inc42 · 1y ago
Why Ola’s Path To Green Mobility Is Full Of Twists And Turns
Medial

Ola Cabs, a major ride-hailing company in India, has been slow to make progress in transitioning to electric mobility and has faced increased competition in the EV segment. While Ola Electric, a subsidiary of Ola Cabs, was established in 2017, the company has yet to achieve any significant milestones in its quest for an electric fleet. In contrast, competitors like Uber India and other emerging players such as BluSmart and Evera Cabs have already deployed thousands of electric vehicles. Ola's past initiatives, such as "Mission: Electric," have not come to fruition, and the company's current CEO, Hemant Bakshi, has offered limited clarity on its green mobility plans. Nevertheless, Ola aims to expand its electric vehicle offerings beyond two-wheelers to include three-wheelers, cars, and e-buses. However, Ola Electric's timeline for new products may not align with Ola Cabs' ambitions. Ola Electric plans to launch electric auto-rickshaws in the coming months, which could be integrated into Ola Cabs' fleet. The company also intends to enter the electric car market eventually but may need to partner with fleet operators and other original equipment manufacturers in the meantime. Ola's focus on scaling up its electric two-wheeler ride-hailing vertical is driven by the belief that state governments are more likely to favor two-wheelers over traditional internal combustion engines. However, Ola faces competition from established players such as Yulu and Rapido, as well as Uber's emphasis on Uber Moto. Ola still has to overcome challenges such as unit economics and profitability while catching up with existing rivals.

The transformative journey of used car startups in India: Report

EntrackrEntrackr · 1y ago
The transformative journey of used car startups in India: Report
Medial

The Indian used car market is witnessing a significant transformation, driven by various factors such as the COVID-19 pandemic’s impact on individual mobility preferences, increased financing options in the used car market, and reduced cash inflow for new car purchases. And perhaps most importantly now, the new and spreading norms on the scrapping of cars. This shift has led to a surge in availability, and demand for used cars, with buyers seeking alternatives to new vehicles. The market is poised for considerable growth, especially with the implementation of new emission standards and focusing on reducing diesel car production. As per a report by Motor Intelligence, the Indian used car market is expected to reach $31.62 billion in 2024 and grow at a CAGR of 15.10% to reach $63.87 billion by 2029. Among the used car companies in India, Cars24 is leading the pack with over Rs 5,500 crore in earnings. Spinny achieved the second position last year with nearly 30X growth in revenue. CarDekho, CarTrade, OLX and Droom are next on the list. The funding and valuation game The used car space has witnessed four unicorns so far including Cars24, Spinny, CarDekho, and Droom. Valuation-wise, Cars24 is on top with $3.3 billion followed by Spinny, CarDekho, and Droom. At the same time, CarTrade’s market capitalization stands at around $370 million. Notably, all of these raised their last funding in 2021. In contrast, OLX has not raised any funding for a long time. Rising scale of leading used car players Cars24’s revenue from operations marginally declined 8.9% to Rs 5,534 crore during the last fiscal year while in grabbing the second spot, Spinny’s scale jumped nearly 30X to Rs 3,261 crore. CarDekho also managed 46% growth with Rs 2,332 crore in revenue. However, the company is also involved in other operations like insurance, marketing et al. Its revenue from the sale of used cars stood at Rs 952 crore during the period. CarTrade’s sales grew 16.3% to Rs 363.7 crore in FY23 as compared to Rs 312.7 crore in FY22. OLX and Droom recorded Rs 514.92 crore and Rs 253.3 crore in revenue during FY23, respectively. For context, Cars24 makes over 90% of its revenue from the sale of cars while a small part comes from financial services. Similarly, Spinny made 95% of its revenue from the sale of cars while the remaining was from services, including commissions on car sales and financial services. Where are the used car companies spending? Cars24 spent over 80% of its expenses on the procurement of goods while Spinny and CarDekho booked 72% and 33.7%, respectively, under the same. CarDekho spent 21.7% of its cost on employee benefits and 21.1% on advertising and promotional expenses. CarTrade incurred the majority (55.9%) of its expenditure on employee benefits followed by promotional and other expenses. The red and green: Bottomline of the used car players Listed on the stock exchange, CarTrade is the only profitable company among the leading players as of FY23. The company posted Rs 40.4 crore profits in FY23 against Rs 121.3 crore in losses the previous year. On the back of rising expenses, Spinny has the highest losses, but not the worst margins. Its losses crossed the Rs 800 crore benchmark in FY23. CarDekho and Cars24 are next in line with Rs 566 crore and Rs 467.7 crore losses, respectively. Meanwhile, CarDekho’s auto business reported Rs 360 crore losses during the period. A look at Covid & Pre-Covid performance The COVID-19 pandemic impact on Cars24, CarTrade, and Droom was big enough to lead to a decline in revenue. On the other hand, CarDekho and Spinny managed to achieve positive growth, although below expectations. Consolidations in used car space The pre-owned car space also saw a bunch of consolidation as bigger brands took over smaller ones over the past five-six years. CarDekho topped the list with seven acquisitions including Revv, Carmudi, Carbiqi, Help on Wheels, ZigWheels, BuyingIQ, and Gaadi.com. Listed company CarsTrade took over Olx Auto, SAMIL, Adroit Inspection, and CarWale whereas Spinny acquired three startups – Scouto, Truebil, and HopCar – since its inception in 2015. OLX as a group acquired around 12 companies which also included global companies such as Sulit and Tokobagus. Recent Developments Delhi NCR-based Cars24 is reportedly piloting a new service that allows car owners to hire drivers on-demand on an hourly basis. The startup had launched a separate app – Autopilot Driver – a few months ago to onboard drivers for the new service. CarDekho shut down its used car retail business amid continuously losing money in the B2C model because of high burn on parking, showrooms, and manpower without any sight of profitability. User behavioural shift in the used cars segment Second-hand cars have been in fashion for eons. However, there has long been a stigma attached to owning a used car. Beyond social status and related concerns, people have had trust issues regarding sellers’ credentials, the history of cars, and so forth. The growing number of startups in this space, however, have democratized the process and have made it more accessible to common users. While increased accessibility and the shedding of stigma are commonly observed, there has been a big change in how people approach used cars. As mentioned above, the pandemic has also had a significant impact, alongside changes in policies and advancements in technology. The trend toward choosing used cars is growing stronger for several practical reasons, a Cars24 spokesperson said. “Buyers are discovering that used cars offer significant value, allowing access to higher-end models and features without the steep price of a new vehicle. The reliability of used cars has greatly improved, thanks to comprehensive inspections and refurbishments, making them a dependable choice. Additionally, the fact that new cars depreciate quickly makes pre-owned vehicles an appealing option for those looking to maximise their investment. This shift in consumer behaviour reflects a smarter, more value-conscious approach to car buying,” the spokesperson explains. The spokesperson further said that car buyers in India are ready to spend 30% (FY22 vs FY23) more on their vehicles, steering towards models with premium features and better overall quality. There is also a surge in demand for SUVs. EVs are too making their way in the used car segment. “In 2023, there was a phenomenal 5X surge in enquiries for EVs on the platform, reflecting a growing interest in alternative fuel options and a shift towards cost-efficient and eco-conscious driving,” the spokesperson said, adding that Cars24 is currently averaging 200 enquiries daily for EVs. CarDekho is also bullish on the used car segment. “Used cars will still continue to do fine as the older vehicles will migrate out of metros,” said Amit Jain, co-founder and CEO of CarDekho Group. Jain also highlighted that demand for used cars is mostly from individual users as cab drivers need a yellow plate which is expensive, making the proposition unviable for cab drivers. “Cab drivers also need CNG installations as most of the used cars are either petrol or diesel which add extra burden on them,” he added. TheKredible’s take Even as it is a huge and growing market, it is well known that making money in the market is a different ball game. Buyers have the option of direct deals with owners, free listing sites and of course, a massive unorganised market, before they approach the organised players. With the option of going with the firms floated by automakers such as Maruti Suzuki True Value and First Choice are always there in case of a purchase. Thus, beyond the obvious issue of price for both sellers and buyers, these firms have to invest in differentiators that will be valued. The high losses and lack of loyalty indicate just how little success they have had in this effort. We believe lasting success in the category will continue to demand a long-term, high-investment approach that not all the existing players will survive.

Park+ reports Rs 131 Cr revenue in FY24 with stable losses

EntrackrEntrackr · 10m ago
Park+ reports Rs 131 Cr revenue in FY24 with stable losses
Medial

Following over 2.5X revenue growth in FY22 and FY23, Gurugram-based Park+ reported a 36.5% year-on-year revenue increase for the fiscal year ending March 2024. Despite its rapid expansion, the five-year-old company maintained tight control on expenses as its losses increased only 4% in the last fiscal year. Park+ revenue from operations grew to Rs 131 crore in FY24 from Rs 96 crore in FY23, its consolidated financial statements sourced from the Registrar of Companies show. Founded by Amit Lakhotia, Park+ provides car cleaning, parking solutions for homes, malls, and offices, fine (challan) payments, insurance management, and car service. It also expanded into ancillary offerings like FASTag issuance and EV charging networks. The sale of services which includes commissions of FASTags, rental of access control, advertisement, valet service, and parking formed 80% of the total operating income which increased by 44% to Rs 104 crore in FY24. The rest of the collections came from the sale of products such as access control, FASTtag, radio frequency tag, and others. Employee benefits was the largest cost center for Park+, accounting for 41% of the overall expenditure. This cost increased 29.5% to Rs 101 crore in FY24 from Rs 78 crore in FY23. This includes Rs 27 crore as ESOP cost. The cost of materials consumed including the procurement of FASTags, radio frequency and related materials grew 65.7% to Rs 58 crore in FY24. Advertising, legal, technology, conveyance and other overheads took the overall expenditure to Rs 245 crore in FY24 from Rs 202 crore in FY23. A sharp rise in ESOP costs and material expenses resulted in a 4% increase in losses, bringing them to Rs 103 crore in FY24. Its ROCE and EBITDA margins stood at -72% and 68% respectively. On a unit level, it spent Rs 1.87 to earn a rupee in FY24. Park+’s total current assets were recorded at Rs 160 crore in FY24 including the cash and bank balances of Rs 102 crore. Park+ has secured $54 million in funding across various rounds and was valued at around $355 million during its Series C round in December 2022. According to the data intelligence platform TheKredible, Peak XV is the largest external stakeholder, followed by Matrix and Epiq Capital. Its founder and CEO Lakhotia owns 45% stake in the company. Park+ competes with Get My Parking, Park Smart, and Parky, among others. In June, the company ventured into the on-demand driver services segment with Drive+, positioning it as a potential competitor to DriveU, Drivers4Me, Driverzz, PickMyCar, Namma Driver, and Cars24. The segment, while high on activity and startups, remains in its infancy, with rules, technology and users still evolving. One feels the truly ‘killer’ use case is still not in hand, even as volumes continue to rise. However, much like fuel deregulation that allowed a huge rise in credit cards powered by discounts on fuel purchases, somehow, the idea of parking or toll charges driving the same sort of opportunity escapes this writer. Most of the aggregation also remains nowhere close to an ‘essential’ for a driver, further placing retention at risk, and driving up user acquisition costs. Could this be a case of problems that seemed big only in the rarefied world of well off VC’s? It won’t be the first time (or the last) VC’s confused a problem they face with a broader market demand. We should know soon enough over the next few quarters.

KickCash crosses $1 Mn ARR in India, eyes rewarded UA space in developed markets

EntrackrEntrackr · 1m ago
KickCash crosses $1 Mn ARR in India, eyes rewarded UA space in developed markets
Medial

Gurugram-based KickCash has clocked over $1 million in annualised revenue, riding on a performance-first approach to user acquisition for mobile games and apps. In a cluttered market grappling with privacy regulation and ad fraud, KickCash is positioning itself as a “frequent flyer program for mobile gamers”, where time spent equals real cash rewards. The startup, currently available exclusively on Android, offers users real world payouts for their playtime & participation in in-game events and campaigns promoted by partnered gaming studios. The earned rewards are credited to the user’s KickCash wallet and can be withdrawn directly, a real-world hook that is already translating into repeat usage. KickCash operates on a unique three-sided flywheel model that benefits players, game developers, and the platform itself. Players earn real rewards for engaging with games they already enjoy, turning playtime into tangible value. Game developers only pay when players show genuine in-game engagement, leading to better retention and ROI. For KickCash, revenue comes from verified performance, aligning its growth with client outcomes rather than superficial metrics. According to KickCash, campaigns on the platform have driven a 52% jump in Day-30 ROAS and 24% better Day-21 retention compared to traditional UA benchmarks. Supported by marquee global gaming studios like Playtika, Potato Play, Felicity Games, and TripleDot Studios, KickCash claims to have built a fraud-proof and privacy-compliant acquisition engine in a post-cookie world. Having stress-tested its multi-reward engine in India’s fiercely competitive market, KickCash is now preparing to launch in mature markets that still lack a friction-free, cash-out model. The move is a natural next step, leveraging the company’s data-driven moat to unlock higher ROI for publishers and a smoother payout loop for players. "Crossing the $1 million ARR threshold is an inflection point - one that positions us for the next phase of scale," said Co-founder Pratyush Nishantkar, hinting at larger ambitions.

Funding and acquisitions in Indian startup this week [01 - 06 July]

EntrackrEntrackr · 1y ago
Funding and acquisitions in Indian startup this week [01 - 06 July]
Medial

This week, 24 Indian startups raised around $270.3 million in funding. These deals count 4 growth-stage deals and 20 early-stage deals. In the previous week, over 25 early and growth-stage startups cumulatively raised more than $211 million in funds. [Growth-stage deals] Among the growth-stage deals, 4 startups raised $234.2 million in funding this week. E-commerce company Purplle topped with its $120 million Series F round. Hospitality firm OYO, EV startup Matter and agritech brand Arya.ag followed with $50 million, $35 million and $29.2 million funding respectively. [Early-stage deals] Moreover, 20 early-stage startups secured funding worth $36.13 million during the week. D2C brand Comet spearheaded the list followed by health startup Watch Your Health, fintech startup Dice, logistics tech firm Ripplr, and media & entertainment startup Pepul. Automotive tech Bike Bazaar, SaaS startup Wify, and logistics firm Lobb also raised funding among others. For more information, visit TheKredible. [City and segment-wise deals] In terms of the city-wise number of funding deals, Bengaluru-based startups led with seven deals followed by Delhi-NCR, Mumbai, Pune and Ahmedabad among others. Segment-wise, e-commerce startups grabbed the top spot with four deals. Healthtech, proptech, agritech and logistics startups followed this list. [Series-wise deals] During the week, Seed funding deals led the list with 5 deals followed by 4 Series A and pre-Series A deals. Pre-seed and debt funding also saw 3 deals and 2 deals respectively. [Week-on-week funding trend] On a weekly basis, startup funding slipped 76.73% to $211 million as compared to around $906 million raised during the previous week. The average funding in the last eight weeks stands at around $404 million with 28 deals per week. [Fund launches] Japanese automaker Suzuki is diving into Indian social impact investing with Next Bharat Ventures. This Rs 340 crore fund targets early-stage startups tackling challenges in rural areas and the informal economy. Focusing on sectors like agriculture tech and financial inclusion, Next Bharat Ventures will invest Rs 1 crore to Rs 8 crore per startup, aiming to support up to 20 ventures annually over the next few years. [Key hirings] Here’s a summary of the key hirings and departures: Among key hirings, Mandar Vaidya, formerly of OYO, took the helm as CEO at Cloudphysician. The investment world welcomed Ajay Mittal to ValuAble as a General Partner and Investment Manager, transitioning from Ascent Capital. Paytm saw a shift with Swati Rustagi taking on a Vice President role at Adobe. Pickrr bolstered their product team with Kunal Bariwal joining as Lead Product at CaptainBiz. Finally, Softbank appointed Lydia Jett as an Independent Director for Flipkart. [M&A] Indian crypto exchange CoinDCX has fully acquired BitOasis, a Middle Eastern virtual asset platform. Both teams will merge, with BitOasis retaining its brand. In the HR tech space, US-Indian platform Phenom gobbled up Tydy, a human resources tech firm, in its fifth acquisition. While Nodwin Gaming, the esports arm of Nazara Technologies, is acquiring German esports agency Freaks 4U Gaming in a two-part share swap deal worth Rs 271 crore, solidifying their position in the esports market. [Layoffs and shutdowns] Edtech giant Unacademy has laid off 250 employees in a restructuring effort aimed at streamlining operations and boosting efficiency. The company seeks to achieve sustainable growth and profitability. While the exact number of impacted employees is undisclosed, Unacademy assures support for those affected during this transition. Koo, the Indian microblogging platform that focused on local languages, is shutting down. Founder Apramyea Radhakrishna announced the closure on LinkedIn, stating they couldn’t find a buyer. Radhakrishna expressed his vision for a local language platform in India but acknowledged the high costs of running a social media app. [Potential deals] Bengaluru-based logistics and distribution platform Ripplr is close to securing Rs 40 crore (around $4.7 million) in debt financing from Northern Arc. Meanwhile, B2B sweets supplier Scandalous Foods, backed by investors like Anthill Angel Fund and EvolveX, is reportedly seeking fresh capital to fuel its growth. Visit TheKredible to see series-wise deals along with amount breakup, complete details of fund launches, and more insights. [New launches] Zomato stops Xtreme delivery service; relaunches intercity food delivery [Financial results this week] Ixigo posts Rs 656 Cr revenue and Rs 73 Cr PAT in FY24 Mylab’s op revenue nosedives to under Rs 100 Cr in FY23, slips into losses NoBroker in FY23: Op revenue grows 87% to Rs 609 Cr; losses up by 64% Akumentis’ income crosses Rs 400 Cr in FY24; posts Rs 57 Cr profit [News flash this week] DPIIT recommends removal of angel tax; Finance Ministry to take final call Zerodha set to stop zero brokerage model after SEBI’s new circular SoftBank-backed FirstCry, Unicommerce get SEBI approval for IPO Zomato receives Rs 9.5 Cr demand notice from GST Swiggy’s two-punch for users: Eatlists and UPI Payments on the Menu Karnataka cracks down on illegal bike taxis after driver protests Delhivery’s drone dream takes flight with MCA nod [Conclusion] After a sudden spike in the weekly funding last week, the startups saw a nearly 77% drop in funding to $211 million this week. Only fund startup-focused fund launched this week namely BizDateUp. The Commerce Ministry has proposed removing the “angel tax” on startups in India. This tax, currently at 30%, is levied on investments exceeding the fair market value of the startup. Many argue the angel tax stifles startup growth and innovation. The government implemented it in 2012 to combat money laundering, but its effectiveness is debated. While DPIIT-registered startups were exempted last year, many still received tax notices. The Commerce Ministry’s recommendation is a positive step for startups, but the final decision lies with the Finance Ministry. SoftBank-backed startups FirstCry and Unicommerce received approval from SEBI to launch their initial public offerings (IPOs). FirstCry, a kids’ retailer, initially filed its IPO application in December 2023 but faced delays due to SEBI requesting more financial data (beyond Q1 FY24). Unicommerce, an e-commerce software company, filed its IPO application in January 2024 and will only offer existing shares for sale, with no new issuance of shares. Food delivery giant Zomato recently shut down its intra-city logistics service “Xtreme” due to a lack of customer demand. Meanwhile, Zomato’s woes deepened with another Goods and Services Tax (GST) demand notice of Rs 9.45 crore from Karnataka authorities. This adds to previous notices exceeding Rs 585 crore, all stemming from a dispute over GST on delivery charges. Zomato argues they only collect these charges on behalf of partner restaurants and shouldn’t be liable for GST. In a separate move, Zomato is relaunching its intercity food delivery service “Legends.” IPO-bound Swiggy is piloting new features. The first feature “Eatlists” allows users to create and share curated lists of their favorite dishes within the app, similar to creating music playlists. Secondly, Swiggy is testing a new in-app UPI payment system developed in collaboration with Yes Bank and Juspay.

Download the medial app to read full posts, comements and news.