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Zerodha hits Rs 8,000 Cr revenue with over 50% profit margin in FY24

EntrackrEntrackr · 9m ago
Zerodha hits Rs 8,000 Cr revenue with over 50% profit margin in FY24
Medial

Stock broking platform Zerodha has reported more than Rs 8,000 crore in revenue and over Rs 4,500 crore in profit, according to a blog post by the company’s co-founder and CEO, Nithin Kamath. This marks a significant increase from the Rs 6,875 crore in operational revenue and Rs 2,907 crore in profit after tax reported in FY23. According to the company, these profits do not account for approximately Rs 1,000 crore in unrealized gains, which will reflect in its financials once recognized. The firm has not yet officially filed its audited annual report. The data disclosed by Zerodha indicates that more than half of its revenue has translated into profit. “Given the profitability of the last three years, our net worth is almost ~40% of the customer funds that we manage. It makes us one of the safest brokers to trade with,” said Kamath in the blogpost. Kamath also added that the firm is already encountering a plateau in revenue and profit, and it is gearing up for a substantial revenue decline later this year. The firm has linked the expected decline in scale to upcoming regulations from the Securities and Exchange Board of India (SEBI), which will eliminate the volume-based transaction fee model for free equity delivery trades affecting all brokers, including Zerodha. The SEBI’s true-to-label circular will go live on October 1 and Zerodha expects a 10% revenue dip due to the regulation. “We expect this paper to materialise into regulation sometime in the next quarter. Index derivatives today are a significant portion of our revenue, and any change will impact us. We anticipate a 30% to 50% drop in revenue,” said Kamath. Zerodha’s annual maintenance charges (AMC) will also be impacted by the new basic services demat account (BSDA) thresholds set by the regulator. Kamath explained that the company can charge the full AMC for customers with demat holdings of Rs 10 lakhs and above, up from the current threshold of Rs 4 lakhs. Along with the removal of the account opening fee, this would lead to a significant decline in revenue. Zerodha is confident that it can handle the slow period because of its small team, careful spending, and strong finances. It has 1,200 employees, but only a small portion of them runs the core business.

Zomato expects Rs 40 Cr tax refund to its delivery partners

EntrackrEntrackr · 11m ago
Zomato expects Rs 40 Cr tax refund to its delivery partners
Medial

Zomato has enabled Income Tax Return (ITR) filing for its delivery partners to get refunds on the 1% TDS (tax deducted at source) on delivery payouts. Within 48 hours, more than 1 lakh riders have initiated their ITR (income tax return) filing on its partners app, Zomato co-founder Deepinder Goyal said on X. Goyal disclosed that Zomato paid a total of more than Rs 4,000 crore to its delivery partners last year. This would roughly translate into Rs 40 crore as the TDS amount. So, delivery partners who have their income below the taxable income limit will be eligible for the refund. This is likely to apply to the majority of the delivery partners. Last year, the government directed businesses like Zomato and Swiggy to deduct 1% as TDS from the delivery partner payouts. “With this initiative, most of our delivery partners will be filing taxes for the first time in their lives, which should make their lives easier in the long run – for example – they will be able to get access to structured credit, they will qualify for scholarships for their kids at various educational institutions, etc,” said Goyal. The ITR filing by Zomato’s riders is a progressive move for the gig economy and government. Besides opening access to formal credit, TDS collection will also give income to the state’s exchequer. According to experts tracking gig economy, more players will now start TDS collection which eventually will provide income to the state’s exchequer. Such policy by the Gurugram-based firm makes sense as the company’s capitalization recently crossed Rs 2 lakh crore. The record jump in its share price also pushed Goyal into the billionaire club. Separately, Zomato received a Goods and Service Tax (GST) demand notice in Karnataka. The total amount includes Rs 5 crore in GST, along with Rs 3.93 crore in interest and Rs 50.2 lakh in penalties. Zomato, however, is appealing against the order before the appropriate authority.

CRED launches e₹ wallet in collaboration with RBI

EntrackrEntrackr · 5m ago
CRED launches e₹ wallet in collaboration with RBI
Medial

CRED launches e₹ wallet in collaboration with RBI Fintech unicorn CRED has launched a beta version of its e₹ wallet, developed in partnership with the Reserve Bank of India (RBI) and YES BANK as the sponsor bank. This launch makes CRED the first fintech platform to implement RBI’s Central Bank Digital Currency (CBDC). The e₹ wallet integrates the security and reliability of a sovereign currency with CRED’s payment experience. It will allow members whitelisted for the beta program to pay UPI-linked bank accounts, as well as send and receive money to other CBDC wallets. To begin, users must complete video KYC to activate their e₹ wallets, which can then be loaded via UPI. The wallet supports transactions of up to Rs 10,000 per transfer, with a daily limit of Rs 50,000, and can store up to Rs 1 lakh. As per the company, merchant transactions come at zero cost. In the future, CRED will include features like programmable merchant payments, integration with CRED Pay, and PIN-less transactions below Rs 500. The company added that full access for all CRED members is expected in the coming months. Kunal Shah, founder of CRED, said, “The e₹ wallet is a milestone in India’s financial evolution. With RBI’s support, we’re empowering the creditworthy to shape the future of digital currency in the world’s fastest-growing economy. Our aim is to make e₹ transactions seamless and accelerate its adoption among India’s most creditworthy citizens.” This initiative aligns with the RBI’s vision to reduce cash circulation, promote financial inclusion, and strengthen India’s position as a global leader in digital finance. In its April 2024 monetary policy, the RBI emphasized making CBDC-Retail accessible to broader segments of users and enabling non-bank payment operators to offer CBDC wallets. The sponsor bank, YES BANK, will facilitate the issuance of CBDC tokens from RBI to CRED.

Ola, Uber and Porter score zero in Fairwork India Ratings 2024

EntrackrEntrackr · 9m ago
Ola, Uber and Porter score zero in Fairwork India Ratings 2024
Medial

Mobility companies Ola, Uber, and logistics firm Porter ranked lowest in working conditions for gig workers, as reported by the Fairwork India Ratings 2024. The report underscores labor standards within India’s platform economy and emphasizes the urgent need to improve conditions for gig workers. The evaluation assessed 11 platforms across various sectors, including logistics, food delivery, and transportation, such as Amazon Flex, Bigbasket, BluSmart, Flipkart, Ola, Porter, Swiggy, Uber, Urban Company, Zepto, and Zomato. The Fairwork India Team, led by the Centre for IT and Public Policy (CITAPP) at the International Institute of Information Technology Bangalore (IIIT-B), in collaboration with Oxford University, has released the Fairwork India Ratings 2024. Tata Digital-owned BigBasket has emerged as the top performer in the Fairwork Index, along with Swiggy, Urban Company, and Zomato, each scoring 6 points. Notably, no platform scored more than 6 out of the maximum 10 points, and none fully met all five principles: Fair Pay, Fair Conditions, Fair Contract, Fair Management, and Fair Representation. The report further highlights that only BigBasket and Urban Company earned the first point under Fair Pay for implementing a minimum wage policy, ensuring that all workers earn at least the local minimum wage after work-related costs. In the 2023 Fairwork Ratings, BigBasket topped the list with a score of 6 out of 10, followed by BluSmart, Swiggy, Urban Company, and Zomato, each scoring 5. Zepto received 4 points, Flipkart scored 3, Amazon Flex scored 2, while Dunzo and Uber scored 1. Ola and Porter received zero points, reflecting significant gaps in working conditions for gig workers. BigBasket, which topped the Fairwork ratings, recently announced its full transition into quick commerce. Meanwhile, Swiggy is preparing for its stock market debut. Urban Company, which led the rankings in 2022, has recently been in the news for multiple secondary offerings and ESOP buybacks. Zomato, noted for its valuation, is currently India’s most valued tech company, with a market capitalization nearing $30 billion.

VoltUp raises $8 Mn in seed funding round

EntrackrEntrackr · 5m ago
VoltUp raises $8 Mn in seed funding round
Medial

VoltUp, a mobility-as-a-service (MaaS) platform and battery-swapping startup, has raised $8 million (Rs 67 crore) in a seed funding round, comprising equity and debt, which was led by EM Impact Capital. The Mumbai-based company had previously raised $10 million in the pre-seed round, bringing the total fund raised to $18 million with participation from prominent Family Office, HDFC Bank, cKers, Grip Invest and GetVantage. Founded in 2019 by Siddharth Kabra, VoltUp is a battery-swapping platform that is designed for electric 2-wheelers and 3-wheelers. Operating in 14 cities, VoltUp’s technology-first approach integrates AI and data analytics to optimize station locations, monitor battery performance in real-time, and predict user demand, offering a safer, more efficient, and time-saving alternative to traditional charging. With a core focus on safety, health, and efficiency (SHE), VoltUp claims to deliver a more sustainable mobility experience, making densely populated cities smarter and more connected. Through its Mobility-as-a-Service (MaaS) network, the startup empowers delivery agents, gig workers, and small businesses with reliable electric 2-wheelers powered by proprietary swappable battery technology. VoltUp plans to accelerate its MaaS offerings, integrating seamlessly with multiple electric vehicle platforms for two- and three-wheelers. It claims that its revenue has grown by over 4 times in the last 12 months and plans to deploy 1,000 new battery-swapping stations across 20 urban centres, supporting a growing customer base while promoting EV adoption and reducing range anxiety. Over the next two years, VoltUp aspires to invest in assets worth over $85 million, including swapping stations, batteries, and expanding the MaaS platform leading to additional job creation and bolstering India’s transition to sustainable mobility.

Meesho launches last-mile logistics marketplace Valmo

EntrackrEntrackr · 1y ago
Meesho launches last-mile logistics marketplace Valmo
Medial

Meesho on Wednesday announced the launch of Valmo, a last-mile logistics marketplace that allows the network of micro-entrepreneurs to become Meesho partners and deliver orders in their nearby areas. Presently, only the logistics partners deal with Meesho’s orders but the company may open it for other e-commerce companies as well, a company executive said during a media roundtable. The move appears to be an attempt to raise a logistics infrastructure. “Valmo aims to create a national logistics solution by eliminating entry barriers for local players and helping them grow their businesses,” the company said in a press release. The company said it is building technological capabilities internally as well as with SaaS providers for deliveries through what it describes as the disaggregated network. It has also partnered ElasticRun, FarEye, LoadShare and Shipsy to create tech stack for Valmo. Meesho added that Valmo currently helps manage over 9 lakh orders on a daily basis which accounts for nearly 18% of third party e-commerce shipments in India. “Nearly 3,000 micro entrepreneurs who act as business partners ensure smooth functioning of these operations. This initiative has helped generate 35,000 indirect jobs through sustained engagement with these local partners,” the company said. It is worth highlighting that several companies including Amazon and Myntra have already tried to create such networks for last-mile delivery. That said, the move makes sense for Meesho which has emerged as the third largest e-commerce company after Flipkart and Amazon. Flipkart and Amazon both have separate logistics units: eKart and Amazon Transport Services. Unlike Valmo, both companies are full-fledged logistics units. Raising a full stack logistics infra requires a lot of capital and Meesho appears not to go that way. Meesho continues to work with Delhivery, Shadowfax, XpressBees, Ecom Express, among others for its logistics requirements.

Funding and acquisitions in Indian startup this week [14 - 19 Oct]

EntrackrEntrackr · 8m ago
Funding and acquisitions in Indian startup this week [14 - 19 Oct]
Medial

During the week, 39 Indian startups raised around $449.33 million in funding. These deals count 12 growth-stage deals and 16 early-stage deals while 11 startups kept their transaction details undisclosed. Last week, 32 early and growth-stage startups cumulatively raised over $134 million in funding. [Growth-stage deals] Among the growth-stage deals, 12 startups raised $389.62 million in funding this week. Edtech startup Eruditus spearheaded with a $150 million funding round. Omnichannel beauty platform Purplle raised $60 million followed by cloud-based service intelligence platform Neuron7.ai, D2C jewelry startup Giva, and SaaS platform Everstage with $44 million, $30.3 million, and $30 million in funding, respectively. [Early-stage deals] Further, 16 early-stage startups secured funding worth $59.71 million during the week. Elder care startup Primus Senior Living led the list followed by cloud-based MLOps workflow orchestration platform Simplismart, a platform for teacher workforce development and global teacher mobility, Suraasa, AI startup Budy.bot, and gallium nitride (GaN) startup AGNIT Semiconductors among others. Meanwhile, Traqo, Brown Living, SuperUs, Evenflow, ANNY, Healspan, Magnus Farm Fresh, SportsSkill, PetStrong, Kingdom of White, and Medprime Technologies also raked in funding but did not disclose the transaction details. 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 16 deals followed by Mumbai, Delhi-NCR, Hyderabad, Pune, Ahmedabad, et al. Segment-wise, E-commerce startups are on the top spot with 12 deals. Fintech, AI, Edtech, Healthtech, Logistics, and Biotech startups followed the list among others. [Series-wise deals] During the week, seed funding deals are on top, with 15 deals followed by Series B, pre-Seed, pre-Series A, Debt, and Series A deals among others. [Week-on-week funding trend] On a weekly basis, startup funding jumped 234.27% to $449.33 million as compared to around $134.42 million raised during the previous week. The average funding in the last eight weeks stands at around $353.43 million with 30 deals per week. [Fund launches] Anicut raised $11 million for its Private Credit Fund 3 through the GIFT City Structure. SBI Foundation and Villgro launched a fund called “Innovators for Bharat” focused on agritech startups. Tetr College of Business launched a $10 million fund to invest in early-stage student entrepreneurs. Additionally, Sundaram Alternates launched its PCOF – Series I fund. [Key hirings and departures] The startup ecosystem witnessed 6 notable hirings this week. AuthBridge onboarded Naveen Goyal as Chief of technology and products. Invest4Edu welcomed Manish Sahijwani as chief business officer, and DMI Finance hired Niraj Khandelwal and Rachit Gupta to take on different roles. Meanwhile, Mamaearth’s chief product and technology officer Jayant Chauhan, upGrad’s co-founder and managing director Mayank Kumar, and Krutrim’s business head Ravi Jain resigned. [Mergers and Acquisitions] This week, four notable acquisitions took place in the Indian startup ecosystem. Licious acquired My Chicken and More, IBM purchased Prescinto, Indium took over Experion, and Jetapult acquired UMX Studio. Visit TheKredible to see series-wise deals along with amount breakup, complete details of fund launches, and more insights. [Potential Deals] OYO eying $200 Mn funding for US expansion strategy Temasek’s Fullerton to take control of Lendingkart in distressed acquisition Zepto to rake in $100 Mn funding from Motilal Oswal and family offices [Financial results this week] Qure.ai revenue soars 83% to Rs 141 Cr in FY24, slashes losses Licious reports Rs 685 Cr revenue in FY24; cuts losses by 44% BharatPe revenue climbs to Rs 1,426 Cr in FY24, losses shrink 50% Tractor Junction revenue soars 2.3X in FY24; cuts losses by 51% Acko hits Rs 2,000 Cr revenue threshold with lower losses in FY24 Rentomojo posts Rs 193 Cr revenue in FY24; profits jump 3.6X [News flash this week] RBI bars NAVI, DMI Finance, and others from loan sanctioning and disbursal Navi breaks into top 5 UPI apps in September as PhonePe maintains lead 8i Ventures earns 12X return on full exit from M2P Fintech Mamaearth ranks as India’s 3rd largest skincare brand: Euromonitor Zomato to raise $1 Bn funds via QIP Temasek files notice to CCI for investment in Rebel Foods CleverTap and Mensa Brands plan India return to pursue IPO BlueStone plans Rs 2,100 Cr IPO by Q2 2025 PayU defers IPO plan to next fiscal year Ola Electric taps EY to address service challenges Zerodha launches fund to support open-source projects Government to introduce social security policy for gig workers Karnataka to impose a transaction fee on online aggregators Swiggy executives and investors sell shares worth Rs 670 Cr ahead of IPO [Conclusion] After two weeks of a slow funding inflow, the weekly funding bounced back with 39 startups raising $449.33 million this week. The week saw four startup-focused fund launches namely Anicut Capital, Innovators for Bharat, Tetr College of Business, and Sundaram Alternates. Ola Electric has engaged consulting firm EY India to help improve its after-sales service operations. EY is expected to provide advice on streamlining business processes, inventory management, and expanding the company’s on-ground presence. This move comes in response to increasing customer complaints and declining sales volumes. Zerodha, a leading fintech unicorn, has launched a new fund called FLOSS/fund to support Free/Libre and Open Source Software (FOSS) projects. The fund aims to provide financial assistance to these projects, which often face challenges in financial sustainability. Zerodha believes that open-source software played a crucial role in its growth and development. The Indian government is working on a new policy to provide social security benefits to gig workers. The policy is expected to be rolled out early next year and will include features such as a unique identification for gig workers, employer contributions to social security schemes, and a registration module on the e-Shram portal. The government is actively engaging with gig workers’ associations to gather their input and ensure that the policy adequately addresses their needs. Meanwhile, Karnataka is set to introduce a 1-2% transaction fee on online aggregator platforms like Zomato, Uber, and others. The revenue generated from this fee will be used to fund the welfare of gig workers in the state. The Karnataka Labour Minister confirmed the decision and clarified that the fee will not be applicable to products or goods purchased through these platforms but only on transportation services. Swiggy’s founder Sriharsha Majety and several investors sold shares worth Rs 670 crore in the days leading up to the company’s updated DRHP filing with SEBI. The transactions involved multiple entities, including Torroz Fintech, Norwest Ventures, Strootaay Unlisted Brokers, and Moksh Capital Partners. These sales likely provided partial exits for investors ahead of the highly anticipated Swiggy IPO, which has generated significant interest from HNIs and companies.

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