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Investment Options Tailored for Indian Investors

StartupTalkyStartupTalky · 1y ago
Investment Options Tailored for Indian Investors
Medial

The Indian economy holds significant potential for wealth creation, driven by a growing GDP and middle class. However, understanding the investment landscape can be overwhelming. Factors such as risk and return, tailored investment avenues, and emerging trends are important considerations for Indian investors. Building a winning investment portfolio involves assessing risk tolerance, setting SMART goals, seeking professional guidance if needed, starting early, diversifying investments, reviewing and rebalancing, and staying invested for the long term. Additionally, investment strategies may vary based on different life stages, such as young investors, mid-career investors, pre-retirees, and retirees. By navigating the Indian investment landscape with a disciplined approach, individuals can build a secure financial future.

Sanjeev Kapoor-backed Wonderchef turns profitable in FY24

EntrackrEntrackr · 8m ago
Sanjeev Kapoor-backed Wonderchef turns profitable in FY24
Medial

Wonderchef, the kitchen appliance brand backed by celebrity chef Sanjeev Kapoor, is seeing consistent revenue growth year-on-year and recorded a profit in the fiscal year ending March 2024. Wonderchef’s revenue from operations increased by 20% to Rs 377.6 crore in FY24 from Rs 315.5 crore in FY23, according to its annual financial statement sourced from the Registrar of Companies (RoC). Wonderchef offers a wide range of kitchen and home appliances, including non-stick cookware, pans, chimneys, flasks, bakers, and more, through its omnichannel, e-commerce platforms, and quick commerce. The sale of products was the sole source of revenue for the Amicus Capital-backed company. The company earned an additional Rs 3.3 crore from interest income which pushed its total income to Rs 381 crore in FY24, compared to Rs 322 crore in FY23. For the kitchen and home appliances seller, the cost of procurement of appliances naturally becomes the largest cost center forming 67% of its overall cost. To the tune of scale, this cost increased by 25% to Rs 251.6 crore in FY24. Its advertising expenses saw a notable reduction of 25.44% to Rs 17 crore, reflecting the company’s shift towards more cost-effective promotional strategies. Employee benefit expenses also grew moderately by 12.3% to Rs 32 crore, while transportation costs rose by 8.3% to Rs 17 crore. Overall, its total expense increased by 16.7% to Rs 374.6 crore in FY24 from Rs 321 crore in FY23. The continued growth and controlled cost helped Wonderchef to record a net profit of Rs 1.5 crore in FY24, compared to a loss of Rs 52 crore in FY23. Its ROCE and EBITDA margin improved to 3.88% and 2% respectively. On a unit level, the company spent Re 0.99 to earn a rupee of operating revenue in FY24. It’s worth noting that Wonderchef's enterprise value to revenue multiple stood at 1.6X in FY24. The company had a current asset worth Rs 222.6 crore including Rs 33 crore of cash and bank balance in the previous fiscal. Wonderchef has secured a total funding of $50 million to date, including its last $20 million round led by Sixth Sense Ventures in 2021. According to the startup data intelligence platform TheKredible, Sixth Sense Ventures is the largest external stakeholder with 15.83% followed by Amicus Capital. Sanjeev Kapoor along with his wife Alyona Kapoor holds 19.57% of the company. Last year, Ravi Saxena, founder and CEO of Wonderchef, mentioned that the company is targeting around Rs 820 crore in revenue for FY25. Wonderchef has done well to find space in a crowded category with a combination of smart offerings and distribution. With the founders pushing 60 years now, the firm does face the challenge of maintaining growth, even as the market changes rapidly. From the growing misgivings around non-stick cookware to the rise of cast iron utensils, cookware firms have to skirt a tricky market in India. Eking out a profit has meant that the firm is definitely in play for an acquisition, especially if the funding situation deteriorates for it. That is something we would not discount at all now, despite the ambitious talk of more than doubling turnover in a year, one way to attract the attention of suitors, one might add.

Funding and acquisitions in Indian startup this week [10 - 15 Jun]

EntrackrEntrackr · 1y ago
Funding and acquisitions in Indian startup this week [10 - 15 Jun]
Medial

As many as 31 Indian startups raised around $336.45 million in funding this week. These deals count 11 growth-stage deals and 18 early-stage deals. Moreover, two early-stage startups kept their transaction details undisclosed. In the previous week, about 17 early and growth-stage startups cumulatively raised over $400 million capital. [Growth-stage deals] Among the growth-stage deals, 11 startups raised $170.4 million in funding this week. Battery tech startup Battery Smart led the list with its $65 million funding followed by D2C skincare brand Foxtale with $18 million, and agri-finance company Samunnati with $16 million. D2C brand RENEE Cosmetics and managed workspace provider Smartworks also joined the top 5 list by raising $12 million each in their respective funding rounds. [Early-stage deals] Subsequently, 18 early-stage startups secured funding worth $166.05 million during the week. Invite-only networking platform SCOPE spearheaded the list followed by consumer electronics startup Indkal, advanced manufacturing startup Ethereal Machines, electric vehicle component startup Indigrid Technology, and cross-border B2B home décor brand Trampoline. The list of early-stage startups also includes two startups that kept the funding amount undisclosed: on-demand English tutoring platform Clapingo and provider of online and offline NEET, KEAM, CUET, and JEE classes Eduport. 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 11 deals followed by Delhi-NCR, Mumbai, Ahmedabad, and Chennai. Segment-wise, e-commerce startups grabbed the top spot with six deals. Fintech, EV, Edtech, Foodtech, and Healthtech startups followed this list among others. [Series-wise deals] During the week, Seed funding deals led the list with 10 deals followed by 7 Series A and 2 pre-Series A deals. Series B and debt funding also saw 6 and 3 deals, respectively. [Week-on-week funding trend] On a weekly basis, startup funding dropped 16.38% to $336.45 million as compared to around $402.34 million raised during the previous week. The average funding in the last eight weeks stands at around $335.62 million with 27 deals per week. [Fund launches] Debt marketplace Recur Club has introduced its new credit product, Recur Scale, designed to finance startups and SMEs at the Series A and B stages and beyond, with revenues of Rs 40 crore and above. The platform will offer debt financing up to Rs 100 crore (approximately $12 million) across various sectors including SaaS, e-commerce, manufacturing, EV, D2C, agritech, and more. South Park Commons (SPC), a technical community and early-stage venture fund, has announced its expansion outside the US with a new location in Bengaluru, India, in collaboration with Flipkart co-founder Binny Bansal. Hyderabad-based Pavestone VC has secured INR 15 crore (around $1.8 million) from Colruyt Group India, the engineering division of Belgian retailer Colruyt Group, for its maiden fund. Neo Asset Management, the asset management division of Fintech Neo Group, has closed its first special credit opportunities fund at around $308 million. Chennai-based VC firm Unifi Capital, through its subsidiary Unifi Investment Management LLP (UIML), has launched two new funds in the International Financial Services Centre at GIFT City, Gujarat. [Key hirings and departures] Among key hirings, Aurm, an asset protection firm providing safe deposit locker services, appointed Vijay Arisetty, founder of the community management app MyGate, as its founder and CEO. Meanwhile, hBits has welcomed Saumil Parekh, ex-VP of Marketing at Pharmeasy, as its new Chief Marketing Officer (CMO), bringing over seven years of experience in leading marketing, growth, and revenue. Additionally, VS Mani & Co, a South Indian filter coffee and snacks brand, has brought on music composer Anirudh Ravichander as a co-founder and brand ambassador. Hemesh Singh, the co-founder and chief technology officer of Unacademy, decided to quit after serving almost a decade at the Bengaluru-based edtech firm. He will now transition into an advisory role. [Layoffs] SaaS firm Kissflow has laid off around 45-50 employees, representing 15% of its workforce, across sales, marketing, and product development functions. According to a report by Moneycontrol, the layoffs were driven by product shutdowns and annual performance reviews. Suresh Sambandam, Kissflow’s founder and CEO, explained that approximately 20-25 employees were let go due to a strategic shift from land-motion procurement to expand motion to boost customer acquisition across their products. Additionally, around 20 employees were dismissed following their regular performance reviews conducted every two to three years. [M&A] Wealth and alternates-focused firm 360 One (formerly IIFL Wealth) has acquired Times Internet-owned wealth management platform ET Money for approximately Rs 365.8 crore. The transaction included Rs 85.83 crore as cash consideration, with the remaining payment made through the issuance of fully paid-up equity shares. In another deal, Suven Pharmaceuticals announced on Thursday that it will acquire a 67.5% stake in Hyderabad-based Sapala Organics for Rs 229.5 crore. Additionally, Nazara Technologies’ subsidiary NODWIN Gaming International Pte Ltd, part of NODWIN Gaming Private Limited, has acquired Ninja Global FZCO, an esports and gaming production company operating in the UAE and Turkey, for about Rs 29.8 crore in a cash and stock transaction. [ESOP buyback] Full-stack agritech platform DeHaat has completed its first employee stock ownership plan (ESOP) buyback program, worth Rs 10 crore ($1.2 million). According to Rishu Garg, who heads the people function at DeHaat, the buyback benefited 153 team members across various levels, from senior vice presidents to field teams, providing them with the opportunity for wealth creation. To date, DeHaat has issued ESOPs worth over Rs 100 crore ($12 million) to more than 200 individuals. [Potential deals] 82°E, a direct-to-consumer personal care startup, is raising $6 million in a seed round. Quick commerce company Zepto is aiming for a much larger haul of $650 million, which would significantly boost its valuation. Beauty platform Purplle is set to secure $100 million in funding. Audio and smartwatch maker boAt also is exploring investment opportunities. Visit TheKredible to see series-wise deals along with amount breakup, complete details of fund launches, and more insights. [New launches] Hood launches startup health indicator platform Whistle Swiggy relaunches grocery delivery services ‘Handpicked’ [Financial results this week] Games24x7 crosses Rs 2,000 Cr income in FY23; controls losses Fintech unicorn InCred posts 1,267 Cr revenue and Rs 316 Cr PAT in FY24 Go Digit crosses Rs 7,000 Cr revenue in FY24; profit surges 5X [News flash this week] South Park Commons enters India in collaboration with Binny Bansal Neobank Jupiter receives wallet license from RBI Stoa School has hit the pause button but is not dead Zomato to invest Rs 400 Cr in Blinkit and Zomato Entertainment Pocket FM initiated legal action against Disney+ Hotstar Ixigo’s IPO closes with over 98X oversubscription [Conclusion] The weekly funding slipped 16.38% to $336.45 million. The week saw five startup-focused fund launches by VCs namely Recur Club, South Park Commons, Pavestone VC, Neo Asset, and Unifi Capital. Additionally, the week saw a layoff as SaaS firm Kissflow has laid off around 45-50 employees. Pocket FM has filed a lawsuit against Disney+ Hotstar in the Delhi High Court, accusing the video streaming platform of copyright infringement related to its audio series ‘Yakshini’. Pocket FM is seeking an interim injunction to remove the trailer for the web series produced by Disney+ Hotstar’s parent company, Novi Digital Entertainment. The public issue of online travel aggregator Ixigo concluded on June 12 with significant investor interest, resulting in an oversubscription of more than 98 times. Interest from Qualified Institutional Buyers (QIBs) surged on the final day, with 254.81 crore shares bid against the 2.38 crore shares allocated, leading to an oversubscription of 106.73 times. Non-institutional investors (NIIs) also showed strong interest from the start, oversubscribing their quota by 110.53 times with 131.94 crore shares bid for the 1.19 crore shares reserved. Within the NII segment, bids exceeding Rs 10 lakh were oversubscribed by 117.40 times. Retail Individual Investors (RIIs) oversubscribed their quota by 54.85 times on the final day, placing bids for 43.64 crore shares against 79.58 lakh shares available. Early-stage venture capital firm Orios Venture Partners has achieved a partial exit from battery swapping startup Battery Smart, yielding 29X returns. This exit likely occurred through Battery Smart’s $65 million Series B funding round, led by LeapFrog Investments. The funding included both primary and secondary investments. Orios’ exit aligns with its strategy to provide limited partners with a significant return on their principal investment within four to five years. Additionally, Orios recently made a similar partial exit from Country Delight, garnering 45X returns on its investment.

How profitable InCred stands out among bleeding fintech lenders: Interview with Bhupinder Singh

EntrackrEntrackr · 1y ago
How profitable InCred stands out among bleeding fintech lenders: Interview with Bhupinder Singh
Medial

Lending has turned out to be the most obvious money making channel for fintech startups in India. Right from large to small fintech companies are resorting to distributing loans through own and third party lenders such as banks and NBFCs. Most growth stage fintech startups have been lending aggressively, but they still bear huge losses on a consolidated basis. However, the eight-year-old InCred is an exception as the firm’s operating revenue spiked 48% to Rs 1,267 crore in FY24. At the same time, its profit grew 160% to Rs 316 crore in FY24. InCred claims to have offered credit to 3,50,000 borrowers since its inception in 2016. InCred group operates three companies – InCred Finance, InCred Capital, and InCred Money. To understand InCred’s growth across segments, startup investments including Oyo and collection (recovery) among others, Entrackr spoke to the company’s founder and chief executive Bhupinder Singh. Here are the edited excerpts. How has the size of asset under management (AUM) across personal, education and business loans grown? Our asset under management or AUM grew 49% in FY24 and we closed FY24 with over Rs 9,000 crore in AUM, spread across personal loans which accounts for 44% of our AUM while micro, small and medium enterprises (MSMEs) contributed 35% of the total disbursal. Educational loans formed 21% of the entire loan book including third-parties capital. Can you talk about growth numbers across three segments: personal, business and educational in the last fiscal year? We have had strong growth across all three segments in FY24: Personal loans grew at 57% whereas educational loans spiked at 86%. Business (MSMEs) borrowing increased 32% during the last fiscal. Which factors led to the upsurge in educational loans? Strong preference to study abroad for superior exposure and growth prospects, along with growing awareness in terms of universities and courses through social media and internet are some of the key driving factors, which have accentuated further over the last few years. InCred has started equity investment across startups. Why has it entered into what’s widely dubbed as risky equity investment? We invest in startups through InCred Capital where we focus on identifying attractive investment opportunities in private companies. However, we only put money in startups which are available at reasonable valuations and have long-term structural growth potential. Besides InCred Capital, we also have a private equity fund providing growth capital to startups and other businesses. You said that InCred Capital looks for reasonable valuation while investing into startups. InCred capital recently invested in Oyo at a $2.38 Bn valuation. Do you think this is the right valuation of Oyo? Any investment opportunity we identify for our clients is based on our fundamental thesis of providing an attractive risk-return profile for our wealth clients. We believe that Oyo falls in that category and provides an opportunity for long term value creation. Collection is the hardest part of any form of lending be it traditional or digital. How did InCred solve this and what’s the size of NPA? Agreed. I think it starts right from our strong, proactive focus on risk and analytics, and then collections, which is more reactive. We have over 150 pan-India collections teams across products that track repayments and employ multiple modes, depending upon the product-specific requirement and level of customer delinquency. For early defaulters, we use techniques like tele-calling to educate them about default implications such as credit score deterioration. For late-stage defaulters, focus is more on limiting losses through field visits, vendor engagement among others. We also use mechanisms like setting up escrow accounts for superior collections. InCred efficiency has been consistently tracking at 98%. Our March 2024 NNPA stood at 0.8% and was among the best in the industry. InCred merged with KKR Financial services in 2022. How has the merger panned out in terms of business? Let me start by giving you some context. While technically it was a reverse merger of InCred with KKR India’s credit arm, substance over form, InCred acquired KKR’s corporate loan book. It was a win-win for both InCred and KKR. What KKR got was a profitable exit from its corporate book, which they were looking for, and the opportunity to be part of a successful and long-term lending growth story with InCred in the driver’s seat. For InCred, the deal was purely an equity raising exercise with KKR joining our cap table and our net worth swelling 3X to over Rs 3,200 crore as of December 2023. At the same time, we were able to quickly wind down the corporate loan book and focus on building a granular retail franchise, which is our broad vision for InCred Finance.

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