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How Fampay's Rs 200 Cr bet on fintech for teenagers fell flat

EntrackrEntrackr · 1y ago
How Fampay's Rs 200 Cr bet on fintech for teenagers fell flat
Medial

Narratives are considered as important as the business plan for startups. And fintech startup Fampay sold its narrative very well. During the funding boom of 2021 it raised $38 million in what’s been one of the largest series A funding rounds. The firm’s pitch-to target the teens below 18 years of age found ready takers among venture funds, including Elevation Capital, Peak XV (formerly Sequoia Capital), General Catalyst. How things will pan out for a startup that’s high on narrative but low on core business fundamentals is anyone’s guess. An abrupt pivot From a peak of 10 million users in 2022, Fampay’s troubles stem from a single event – when IDFC Bank pulled the rug out from under it in February 2023 as its payments partner. This forced account holders to exhaust their balance within a short deadline. It was all downhill from there, as not only did Fampay lose its not-so-loyal users acquired at a high cost, but also struggled to recover from the blow. This is not the first time and won’t be the last time teenagers surprise those who thought they have figured them out. Fampay, however, is still struggling to come to terms with the losses it suffered. Two years after the mammoth fundraise, Fampay pivoted to become a UPI-focused app (TPAP like PhonePe and Paytm) in March 2023. The pivot was much needed for the survival of the firm which burnt over Rs 200 crore on the abandoned biz. The Bengaluru-based firm lost Rs 120 crore alone in FY23 with a single digit revenue figure. Numbers unmask the dud Fampay finally published its annual financial statement for FY23 with the RoC after a year-long delay. The five-year-old fintech firm reported Rs 7.7 crore in revenue. Income from commissions and partnerships accounted for 50% of the total operating revenue, which stood at Rs 3.8 crore in FY23. Meanwhile, payment facilitation brought in Rs 1.3 crore, whereas subscription fees added another Rs 2.8 crore to the company’s coffers. The Peak XV-backed firm’s employee benefits surged 2.95X to Rs 65 crore in FY23. This cost is more or less going to be much smaller in the following fiscal as the firm laid off some of its staff at all levels in April. Moving on, Fampay’s marketing spends jumped 2.7X to Rs 41 crore in FY23. The burn on legal, subscription, technology, traveling, and other overheads took the company’s overall cost to Rs 137 crore in the fiscal year ending March 2023 from Rs 51 crore in FY22. Importantly, the company extended an unsecured loan of Rs 55 crore to Pehe Limited to acquire Tri O Tech Solution Private Limited ( a wholly owned subsidiary of Pehe) with a PPI license, at a 6% interest rate for one year. However, after a year of non-payment, the timeline was extended, with the interest rate increased to 7.6%. With a marginal revenue and a baggage of mounting expenditures, Fampay’s losses surged 2.8X to Rs 120 crore in FY23 from Rs 43 crore in FY22. Its ROCE and EBITDA margin worsened to -67.4% and -700%, respectively. On a unit level, it spent Rs 17.79 to earn a rupee in FY23. Fampay has raised $48 million to date including its $38 million led by Elevation Capital in 2021. According to the data intelligence platform TheKredible, Peak XV, Elevation Capital, and Venture Highway are the notable investors in the company. Post pivot, Fampay entered the top 10 list of UPI-based payments apps in November last year. As per data published by NPCI, Fampay registered more than 50 million transactions through UPI in July 2024. It surpassed other apps such as BHIM, WhatsApp, MobiKwik and Flipkart UPI. Do or die, or just sell? A selloff, rather than survival, seems to be the plausible route Fampay is headed for, assuming that suitors are available for it. Having burnt so much on its original premise, even as the firm seems to have done a decent job of cracking the UPI payments code, it might be too little, too late. One would have to assume that the final throw of the dice for this firm is to do well enough on the UPI pivot, and show enough momentum for a suitor to consider it a worthwhile acquisition. Like many firms in the space, Fampay would have had a much better chance if the government/RBI had finally relented on allowing UPI providers some leeway on charging fees for their services, but until that division hangs in the air, the company might just hang up its boots in the business.

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IIFL Fintech floats Rs 500 Cr Fund II

EntrackrEntrackr · 14h ago
IIFL Fintech floats Rs 500 Cr Fund II
Medial

IIFL Group backed IIFL Fintech Fund has announced the final close of its second fund after raising Rs 500 crore from domestic family offices and high net worth individuals. The Series II fund targets early to growth stage fintech startups, with a focus on companies using generative artificial intelligence to build financial services products. The fund plans to invest in 20 to 25 startups across lending, payments, compliance, wealthtech, insurtech, and embedded finance. Around 20 to 25 percent of the second fund will be allocated for follow on investments in top performing companies from its first fund. IIFL Fintech had announced the first close of its second fund at Rs 200 crore in January 2025 and has already backed five startups through this. These include companies such as education focused fintech GrayQuest, voice AI startup Fundamento, banking infrastructure startup Knight Fintech, and a secondary share purchase in document infrastructure firm Leegality, among others. According to IIFL Fintech, it actively partners with fintech founders to help them validate, deploy, and scale their solutions within a large financial services ecosystem. The fund closed its first fund in 2022 after raising Rs 200 crore. IIFL Fintech Fund was set up in 2021 with the aim of investing in early stage fintechs that the IIFL Group could collaborate with. Over the last four years, the IIFL Fintech Fund has invested across multiple fintech segments. Its portfolio includes Leegality, FinBox, DataSutram, Finarkein Analytics, Finvu, Trendlyne, Insurance Samadhan, Xtracap Finance, Castler, Vitra.ai, EasyRewardz, Multipl, Riskcovry, and TrustCheckr, which was sold to Truecaller.

Paytm posts Rs 1,911 Cr revenue and Rs 23 Cr loss in Q4 FY25

EntrackrEntrackr · 8m ago
Paytm posts Rs 1,911 Cr revenue and Rs 23 Cr loss in Q4 FY25
Medial

Fintech firm Paytm announced its financial results for the fourth quarter of the current fiscal year (Q4 FY25) on Tuesday. The Noida-based company reported a revenue of Rs 1,911 crore and a net loss of Rs 23 crore for the period. According to Paytm’s consolidated quarterly report filed with the National Stock Exchange, its revenue from operations declined by 16% year-on-year from Rs 2,267 crore in Q4 FY24 to Rs 1,911 crore in Q4 FY25. Meanwhile, for the full fiscal year, the Noida-based firm’s revenue fell 31% to Rs 6,900 crore in the fiscal year ending March 2025 from Rs 9,977 crore in FY24. Paytm has not disclosed its revenue breakup. The company also added Rs 224 crore from other non-operating sources, bringing its overall revenue to Rs 2,135 crore in Q4 FY25. According to the company, its Gross Merchandise Value (GMV) for the quarter stood at Rs 5.1 Lakh crore, while its average monthly transacting users (MTUs) increased to 7.2 crore in the previous quarter. For the fintech firm, its employee benefits remained the largest cost center, accounting for 35% of the overall cost, which decreased by 32% to Rs 748 crore in Q4 FY25. Its payment processing charges reduced by 27% to Rs 52 crore, and marketing expenses increased by 10% to Rs 142 crore in Q4 FY25. Software, communication, legal, cashback, and other overheads took the total expenditure to Rs 2,155 crore in Q4 FY25 from Rs 2,691 crore in Q4 FY24. Paytm reduced its losses by 96% to Rs 23 crore in Q4 FY25, down from Rs 536 crore in Q4 FY24. This figure excludes a one-time cost of Rs 522 crore, which includes Rs 492 crore in ESOP expenses and Rs 17 crore in transaction costs related to the sale of its movie ticketing business. As of May 6, Paytm’s share price fell over 6% to Rs 816 with the total market capitalization standing at Rs 52,082 crore.

Exclusive: BigBasket secures Rs 200 Cr debt

EntrackrEntrackr · 2m ago
Exclusive: BigBasket secures Rs 200 Cr debt
Medial

Exclusive: BigBasket secures Rs 200 Cr debt BigBasket’s consumer-facing arm, Innovative Retail, has secured Rs 200 crore (approximately $22.7 million) in debt funding from DBS Bank Ltd. This is its first major capital injection in nearly three years, after the $200 million round led by Tata Digital in December 2022. According to its filing with the Registrar of Companies (RoC), the board of Innovative Retail Pvt Ltd (BigBasket’s B2C arm) has allotted 20,000 non-convertible debentures (NCDs) at a face value of Rs 1,00,000 each to raise the above-stated amount. The aforementioned debentures are issued for a tenure of 18 months and a coupon rate of 8.2% per annum, the filing added. The filing added that the proceeds from the debt raise will be used to set up and maintain dark stores, along with other general corporate purposes. Founded in 2011, BigBasket operates an inventory-led online grocery model, managing its own dark stores and delivery network while offering a wide range of products, including private labels. In August 2024, BigBasket fully pivoted to quick commerce, making 10-minute delivery its primary focus. According to startup data platform TheKredible, the company has raised over a billion dollars in funding to date from major investors such as Mirae Asset, British International Investments, and Bessemer Venture Partners. Tata Digital acquired BigBasket in May 2021. On the financial front, BigBasket’s (B2C) losses widened to Rs 1,850 crore in the fiscal year ended March 2025 while its revenue remained flat at Rs 7,673 crore during the period.

Simplilearn revenue slips to Rs 556 Cr in FY25, cuts losses

EntrackrEntrackr · 1d ago
Simplilearn revenue slips to Rs 556 Cr in FY25, cuts losses
Medial

Simplilearn has struggled to scale up in the last fiscal year, with its operating revenue declining 26% following a sharp fall in income from its self-learning segment. However, the company managed to curb its losses with the help of expense rationalisation. Simplilearn’s operating revenue fell to Rs 556 crore in FY25 from Rs 750 crore in FY24, according to its consolidated financial statements sourced from the Registrar of Companies (RoC). Simplilearn is a digital upskilling platform that provides training in cybersecurity, cloud computing, project management, digital marketing, and data science, among others. It offers postgraduate programs, master's programs, and certification courses. Revenue from online self-learning courses declined steeply by 95% to Rs 23 crore in FY25 from Rs 451 crore in FY24, accounting for just 4% of operating revenue. In contrast, income from live learning programs surged 65% to Rs 565 crore in FY25 from Rs 341.5 crore a year earlier. Including other income of Rs 22 crore, the company’s total income stood at Rs 578 crore in FY25. On the spending side, Employee benefit expenses, the largest cost component, fell sharply by 42.5% to Rs 187 crore in FY25 from Rs 325 crore in FY24. Advertising and marketing costs fell 35% to Rs 134 crore, while cost of materials declined 11.5% to Rs 162 crore during the year. Depreciation expenses rose 10% to Rs 63 crore. Subscription fees, however, increased 50% to Rs 24 crore in FY25. Finance costs stood at Rs 6 crore during the year. Overall, Total expenses declined 29% to Rs 621 crore in FY25 from Rs 879 crore in FY24. Simplilearn’s loss decreased by 60% to Rs 43 crore in FY25 from Rs 107 crore in FY24. It is worth noting that the company booked an exceptional expense of Rs 141 crore in FY25, primarily on account of amortisation of its content library. Since this charge is non-cash in nature, we have calculated the adjusted loss excluding the exceptional item. On a unit basis, the company spent Rs 1.12 to earn a rupee during FY25, compared to Rs 1.17 in the previous fiscal year. As of March 2025, Simplilearn reported cash and bank balances of Rs 145 crore, down from Rs 236 crore in FY24. Its current assets stood largely flat at Rs 319 crore. According to startup data intelligence platform TheKredible, Simplilearn has raised over $118 million to date, having Blackstone and GSV Ventures as its lead investors.

Euler Motors reports Rs 191 Cr revenue and Rs 200 Cr loss in FY25

EntrackrEntrackr · 2m ago
Euler Motors reports Rs 191 Cr revenue and Rs 200 Cr loss in FY25
Medial

Euler Motors reports Rs 191 Cr revenue and Rs 200 Cr loss in FY25 Euler’s revenue grew by 12% during the fiscal year ending March 2025. The Delhi-based firm also managed to limit losses at a similar rate during the year. Commercial electric vehicle startup Euler Motors raised Rs 638 crore in its Series D round in May 2025, led by Hero MotoCorp. While the impact of this funding is likely to reflect in its FY26 numbers, Euler’s revenue grew by 12% during the fiscal year ending March 2025. The Delhi-based firm also managed to limit losses at a similar rate during the year. Euler Motors’ revenue grew 12% year-on-year to Rs 192.26 crore during the last fiscal year as compared to Rs 170.82 crore in FY24, according to the company’s annual financial statement with the RoC. The company primarily manufactures and sells electric vehicles. According to Vahan data, it sold around 3,305 electric vehicles in FY25, generating Rs 173 crore from vehicle sales, while battery, accessories, and other operating income contributed an additional Rs 12 crore to its total operating revenue. Euler Motors also earned Rs 14.73 crore in non-operating income including interest income, which pushed its total revenue to Rs 206 crore in FY25. On the expense side, material costs remained the biggest expenditure, making up 47.5% of total expenses at Rs 192 crore in FY25. This cost was reduced by 10% compared to FY24. Employee benefit expenses rose 46% year-on-year to Rs 74.4 crore in FY25. Security and manpower service costs also jumped 55% to Rs 24.44 crore during the year, while finance costs and depreciation and amortization expenses stood at Rs 17.3 crore and Rs 18.46 crore, respectively. Further, advertising expenses surged 4.6X to Rs 12.77 crore in FY25 from Rs 2.75 crore in FY24. Other overheads including rent, R&D, travel, professional fees, transportation, repair and maintenance, software, and other expenses added Rs 64.8 crore to the total cost. Overall expenditure remained flat compared to FY24, at around Rs 404 crore. In the end, a 12% rise in operating revenue, coupled with higher non-operating income and controlled spending, helped the Hero MotoCorp-backed company reduce its losses by 12% to Rs 200 crore in FY25. On a unit level, Euler spent Rs 2.11 to earn a rupee of operating income. Its EBITDA margin and ROCE improved to -92.6% and -93.7% respectively. As on March 2025, the company’s current assets stood at Rs 214.3 crore, including cash and bank balances of Rs 95 crore. According to startup data platform TheKredible, the Delhi-based firm has raised over $200 million to date, with Hero MotoCorp, GIC, and British International Investment among its lead investors.

Peak XV-backed Scapia reports Rs 83 Cr loss on Rs 29 Cr revenue in FY25

EntrackrEntrackr · 1m ago
Peak XV-backed Scapia reports Rs 83 Cr loss on Rs 29 Cr revenue in FY25
Medial

Travel fintech startup Scapia has raised $40 million in a Series B round led by Peak XV shortly after FY25, as investors doubled down on the company’s growth potential. The fundraiser follows over 70% year-on-year growth in scale. However, losses continue to remain a key challenge for the company. Scapia’s operating revenue surged to Rs 29 crore in FY25 from Rs 17 crore in FY24, according to its financial statements sourced from the Registrar of Companies (RoC). Founded by Anil Goteti, Scapia operates as a fintech-travel platform, offering a lifetime-free credit card with travel rewards. It generates revenue through interchange fees, interest on EMIs, and partner commissions from travel bookings. Service income remained the largest contributor to the company, which accounted for 82.8% of operating revenue. This income increased 60% to Rs 24 crore in FY25. Revenue from convenience fees more than tripled to Rs 3.4 crore, while commission income grew 71.4% to Rs 1.2 crore during the year. On the cost side, employee benefit expenses emerged as the largest cost head, accounting for nearly half of the total cost. This expense jumped 71.8% to Rs 61 crore in FY25 from Rs 35.5 crore in FY24. Advertising expenses declined sharply by 35% to Rs 32 crore in FY25 from Rs 49.5 crore in FY24. Other operating costs, such as lounge service expenses remained flat at Rs 7 crore, while subscription charges rose 17% to Rs 7 crore. Customer support costs increased marginally to Rs 4 crore, and other expenses climbed 21% to Rs 12.5 crore. Overall, Scapia’s total expenses increased 10% to Rs 123.5 crore in FY25 from Rs 112 crore in FY24. With Scapia’s revenue outpacing expense growth, its net loss reduced to Rs 83 crore in FY25 from Rs 88 crore in FY24. Its ROCE and EBITDA margin stood at -22.98% and -322.41%, respectively. On a unit basis, Scapia spent Rs 4.26 to earn a rupee in FY25, an improvement from Rs 6.59 in FY24. The company strengthened its balance sheet during the year, with cash and bank balance worth Rs 305 crore, while its current assets more than doubled to Rs 331 crore. Scapia has raised a total of $72 million of funding to date, having Peak XV Partners, Matrix Partners and Elevation Capital as its lead investors. The company’s founder, Anil Goteti, owns 40% of the company.

MamaEarth-parent reports Rs 39 Cr profit on Rs 538 Cr revenue in Q2 FY26

EntrackrEntrackr · 2m ago
MamaEarth-parent reports Rs 39 Cr profit on Rs 538 Cr revenue in Q2 FY26
Medial

Honasa Consumer Limited, the parent company of personal care brand MamaEarth, has announced its financial results for the second quarter of the ongoing fiscal year (Q2 FY26). The Gurugram-based company reported a 16.5% growth in scale, while it posted a profit of Rs 39 crore in the same quarter. MamaEarth’s revenue from operations increased to Rs 538 crore in Q2 FY26 from Rs 462 crore in Q2 FY25, its financial statements accessed from the National Stock Exchange (NSE) show. On a half-yearly basis, MamaEarth’s operating revenue increased 12% to Rs 1,133 crore in H1 FY26 from Rs 1,016 crore in H1 FY25. The company has not disclosed its revenue breakdown for the last quarter. It also added Rs 20 crore from non-operating activities which tallied its overall revenue to Rs 558 crore in Q2 FY26. For the D2C brand, the cost of procurement of products accounted for 32% of the overall expenditure. This cost increased by 10% to Rs 159 crore in Q2 FY26 from Rs 144 crore in Q2 FY25. Employee benefit expense rose 18% to Rs 60 crore in Q2 FY26 from Rs 51 crore in Q2 FY25. Marketing, legal, rent, and other overheads fell 9% year-on-year which kept the total expenditure flat at Rs 505 crore in Q2 FY26 as compared to Rs 506 crore in Q2 FY25. In the end, the company reported profit after tax of Rs 39 crore in Q2 FY26, as compared to a loss of Rs 18.56 crore in Q2 FY25. On a unit basis, the company spent Re 0.94 to earn a Rupee of operating revenue. For the six months ending September 2025, the company’s profit spiked 3.7X to Rs 80.5 crore in H1 FY26 from Rs 21.6 crore in H1 FY25. During the period the company picked up 25% stake in Couch Commerce Private Limited which owns brand “Fang Oral Care” for a consideration of up to Rs 10 Crores. At the end of today’s trading session, MamaEarth parent’s shares were trading at Rs 283 with a total market capitalization of Rs 9,238 crore ($1 billion).

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