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Startups in India grew over 300 times in ten years: Union Minister Jitendra Singh

Economic TimesEconomic Times · 1y ago
Startups in India grew over 300 times in ten years: Union Minister Jitendra Singh
Medial

India's startup ecosystem has experienced tremendous growth in the past decade under the leadership of Prime Minister Narendra Modi. The number of startups in the country has increased from around 350 in 2014 to become the 3rd largest globally. This growth can be attributed to the government's efforts in promoting entrepreneurship and diversifying employment opportunities beyond traditional government jobs. Additionally, PM Modi has also played a crucial role in expanding India's space research sector and opening it up to the private sector. These initiatives have propelled India's economy to become the 5th largest globally, with the aim of reaching the top position by 2047.

Japan’s Mizuho set to acquire Avendus Capital for $700 Mn: Report

EntrackrEntrackr · 1m ago
Japan’s Mizuho set to acquire Avendus Capital for $700 Mn: Report
Medial

Japan’s Mizuho set to acquire Avendus Capital for $700 Mn: Report Japanese financial major Mizuho Financial Group is reportedly set to acquire KKR-backed Avendus Capital in a deal valuing the Indian investment bank at Rs 6,000 crore ($700 million). The Economic Times, which first reported the development, said the agreement comes after months of negotiations and will mark Mizuho’s largest investment in India. The deal includes KKR exiting its 60%, along with early investors and co-founder Ranu Vohra. The remaining founders, Kaushal Aggarwal and Gaurav Deepak, will stay on to lead operations, though Mizuho will have veto rights. Mizuho is likely to own up to 70% of Avendus post-deal. Established in 1999, Avendus operates across investment banking, credit solutions, institutional equities, wealth, and asset management. Its acquisition of Spark in 2022 bolstered its capital markets presence. For the nine months ending December 2024, the firm reported Rs 1,035 crore in revenue and Rs 170 crore in net profit. KKR, which invested Rs 950-1,000 crore in Avendus in 2015, is expected to make a 3.5x return. Other bidders like Carlyle and Nomura were in contention, but Mizuho emerged the frontrunner due to strategic alignment and cross-border synergy potential. Recently, SMBC invested in Yes Bank and Mizuho took a 15% stake in Kisetsu Saison Finance. With five branches in India, Mizuho has already infused $500 million into its operations and appointed KKR’s former India head Sanjay Nayar as an advisor.

Tracxn slips into losses in Q4 FY25 amid flat revenue

EntrackrEntrackr · 1m ago
Tracxn slips into losses in Q4 FY25 amid flat revenue
Medial

Data and research platform Tracxn announced its financial results for the fourth quarter of the last fiscal year (Q4 FY25) on Monday. The firm slipped into losses during the quarter, while its revenue grew by a mere 5% over the same period. Tracxn's revenue from operations stayed flat at Rs 21 crore in Q4 FY25, compared to Rs 20 crore in Q4 FY24, its financial statements sourced from the National Stock Exchange (NSE) show. For the full fiscal year (FY25), Tracxn’s operating revenue increased 2% to Rs 84.5 crore in FY25 from Rs 83 crore in FY24. Tracxn generated its entire operating revenue from subscription sales, offering access to its data and software. However, the Bengaluru-based firm did not provide a detailed revenue breakdown for the quarter. The company also made Rs 1.5 crore from non-operating sources which took Tracxn’s total revenue to Rs 22.7 crore in the fourth quarter. Meanwhile, for the full fiscal year (FY25), total income stood at Rs 90.36 crore. Employee benefits remained the largest cost center for Tracxn, accounting for 86% of its total expenditure. These expenses increased by 5.6% year-on-year, rising to Rs 19.36 crore in Q4 FY25 from Rs 17.77 crore in Q4 FY24. Overall, Tracxn's total costs grew by approximately 10%, reaching Rs 22 crore in Q4 FY25. For the fiscal year ending March 2025, total expenses increased to Rs 84 crore. The stagnant revenue and a nearly 10% increase in overall costs caused Tracxn to slip into losses. The company’s loss after tax stood at Rs 8 crore in Q4 FY25 from a profit of Rs 1.42 crore in Q4 FY24. However, the company reported a profit before tax of Rs 73 lakhs. Meanwhile, for the full fiscal year (FY25), its losses stood at Rs 9.5 crore. The company recently approved an ESOP grant of over 2 lakh shares, valued at Rs 41.6 lakh. As of the last trading session, Tracxn’s share price was Rs 63, giving the company a market cap of Rs 674 crore ($79 million).

ProcMart GMV zooms 3X to Rs 621 Cr in FY24; profit slips 56%

EntrackrEntrackr · 10m ago
ProcMart GMV zooms 3X to Rs 621 Cr in FY24; profit slips 56%
Medial

B2B procurement marketplace ProcMart has been growing at a scorching pace over the past two fiscal years, with its gross merchandise value (GMV) spiking 5X in FY23 and FY24 compared to FY22. In FY24, the company achieved 3X GMV growth, but its profit nosedived by 56.5% ProcMart’s gross revenue shot up over 200% to Rs 621.5 crore during the fiscal year ending March 2024 in comparison to Rs 206.07 crore in FY23, the company’s consolidated financial statements sourced from the Registrar of Companies (RoC) show. ProcMart is engaged in the trading business of industrial automation, electrical, mechanical, electronics, IT items, abrasive, fasteners, safety & security items, various tools & consumables. The sale of these products accounted for 98% of the total gross revenue in the last fiscal year. The company also provides business procurement assistance services which formed the remaining part of the GMV during the last fiscal year. Overall, the company generated Rs 624.3 crore in gross revenue including Rs 2.79 crore from interest and gains on financial assets. Moving forward, the cost of materials was found to be the largest burn and formed 93.4% of the total expenses. This cost ballooned 216.3% to Rs 582 crore in FY24. The company spent 3% of its total expenses on employee benefits which stood at Rs 19 crore during the same period. Further, expenses such as transportation, legal & professional, rent et al took over the company’s total cost by 205.6% to Rs 623.4 crore during FY24 from Rs 204 crore in FY23 For the complete expense breakdown, head to TheKredible. Despite accelerating scale, ProcMart barely finished staying in the green. The company’s profits slipped 56.5% to Rs 73 lakh in FY24 against Rs 1.68 crore in FY23. Its operating cash flows however turned positive at Rs 15.81 crore crore during the last fiscal year. FY23-FY24 FY23 FY24 EBITDA Margin 2.28% 1.33% Expense/₹ of Op Revenue ₹0.99 ₹1.00 ROCE 7.33% 5.45% As per TheKredible, the firm’s EBITDA margin and ROCE registered at 1.33% and 5.45%, respectively. On a unit level, ProcMart spent Re 1 to earn a rupee of operating revenue during the previous fiscal year. ProcMar has raised over $40 million in funding to date across three rounds. Its last funding round came in April this year where it raised $30 million funding co-led by Fundamentum and Edelweiss Discovery Fund. As per TheKredible, the company was valued at around Rs 724 crore or $88 million (post-money). The B2B procurement space has been a surprise winner with the storied success of multiple firms. There is however little doubt that margins are thin, prompting changes in the model to contract manufacturing, financing and more by players. ProcMart for now seems to be sticking to the plain vanilla procurement based model. As it scales up, it will be interesting to see if it sticks to the model, or finds its own way into a higher margin revenue stream. Until then, it will know that maintaining a strong growth rate will be the least expected of it.

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

EntrackrEntrackr · 8m 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.

Funding and acquisitions in Indian startup this week [07 - 12 Oct]

EntrackrEntrackr · 9m ago
Funding and acquisitions in Indian startup this week [07 - 12 Oct]
Medial

During the week, 32 Indian startups raised around $134.42 million in funding. These deals count 4 growth-stage deals and 22 early-stage deals while 6 startups kept their transaction details undisclosed. Last week, 21 early and growth-stage startups cumulatively raised over $92.63 million in funding. [Growth-stage deals] Among the growth-stage deals, 4 startups raised $55.8 million in funding this week. Industrial robotics maker Haber spearheaded with $38 million funding round. SaaS platform for physical therapy professionals Spry Therapeutics raised $15 million followed by aerial intelligence platform Aereo and pharmaceutical packaging startup Sorich Foils with $1.8 million and $1 million in funding, respectively. [Early-stage deals] Further, 22 early-stage startups secured funding worth $78.62 million during the week. D2C diaper brand Bumtum (Millennium Babycares) led the list followed by EV firm UrjaMobility, vacuum and process solutions provider Economy Process Solutions, space-tech firm XDLINX, and dental care platform Dezy among others. Meanwhile, Jivi, Suraasa, Adloggs, Humm Care, A4 Hospital, and Deftouch 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 11 deals followed by Delhi-NCR, Mumbai, Pune, Coimbatore, et al. Segment-wise, Healthtech startups are on the top spot with 5 deals. SaaS, E-commerce, Fintech, Media and entertainment, Edtech, and Robotics startups followed the list among others. [Series-wise deals] During the week, seed funding deals are on top, with 18 deals followed by Series A, pre-Series A, Series B, and pre-IPO deals among others. [Week-on-week funding trend] On a weekly basis, startup funding went up 45.11% to $134.42 million as compared to around $92.63 million raised during the previous week. The average funding in the last eight weeks stands at around $358.15 million with 28 deals per week. [Fund launches] D2C Insider, a community of D2C founders, launched the Super Angels Fund with a corpus of Rs 25 crore. LC Nueva Investment Partners launched the LC Nueva Momentum Fund with a target corpus of Rs 150 crore. Northern Arc launched the Finserv Fund with a target corpus of Rs 1,500 crore. [Key hirings and departures] The startup ecosystem witnessed 17 notable hirings this week. Evenflow onboarded Priyesh Singh, Aparajitha Vijayaraghavan, Prashant Agarwal, and Ruchi Shaikh at different leading positions. Oyo also welcomed Sonal Sinha, Rachit Srivastava, Shashank Jain, Pankhuri Sakhuja, and Ashish Bajpai to fill different roles. Meanwhile, Orios Venture Partners’s CFO & CEO Gaurav Bindal, Zomato’s Independent Director Gunjan Soni, and Menhood’s Compliance Officer resigned. [Mergers and Acquisitions] This week, three notable acquisitions took place in the Indian startup ecosystem. Ozonetel acquired CloudConnect Communications, eBikeGo purchased Varcas Automobiles, and Exicom took over Tritium. [ESOP buyback] Whatfix, a digital adoption platform (DAP), has introduced a $58 million liquidity program for its employees and investors. Online gaming startup Winzo has also announced the completion of its fourth round of employee stock options plan (ESOP) liquidation. [Shutdown and layoffs] Plug-and-play platform Toplyne is shutting down operations and returning capital to investors. While two-wheeler marketplace BeepKart reportedly fired another 60-70 employees. Visit TheKredible to see series-wise deals along with amount breakup, complete details of fund launches, and more insights. [New launches] Fintech startup Jar forays into the D2C jewelry space with the launch of Nek Blinkit to launch ‘Cafe’ for quick snack deliveries IPO-bound Swiggy rolls out large order fleet in Gurugram Ranveer Singh-backed Bold Care ventures into women’s wellness Innov8 launches Managed Office Spaces vertical ShareChat launches social media app ‘Vibely’ [Potential Deals] D2C fashion brand Zouk set to raise $10 Mn led by Aavishkaar Capital Prosus to double down on Urban Company in a secondary deal Amazon-backed ToneTag in talks to raise $50 Mn [Financial results this week] Servify posts Rs 755 Cr revenue in FY24; cuts losses by 59% Kuku FM reports Rs 88 Cr revenue in FY24; spends Rs 100 Cr on marketing Pine Labs India posts Rs 1,384 Cr revenue in FY24; losses jump 3X DCGpac hits profitability as revenue nears Rs 100 Cr in FY24 Leegality turns profitable with 87% revenue growth in FY24 boAt cuts losses by 47% in FY24, revenue holds steady at Rs 3,122 Cr Your-Space posts Rs 142 Cr revenue in FY24; losses up 20% Info Edge revenue touches Rs 1,230 Cr revenue in H1 FY25 [News flash this week] Ola, Uber, and Porter score zero in Fairwork India Ratings 2024 Ola Electric faces show-cause notice amid rising complaints Magicpin becomes the largest food delivery seller app on ONDC Govt. eyes action against e-commerce firms for dark pattern violations Zetwerk begins talks with JP Morgan and other bankers for an IPO Physics Wallah selects four investment bankers for $500 Mn IPO BlackBuck gets SEBI nod For Rs 550 Cr IPO Zomato’s Deepinder Goyal exits, Titan Capital’s Kunal Bahl joins Shark Tank India [Conclusion] After a dip in funding last week, the weekly funding surged over 45% $134.42 million this week. The week saw three startup-focused fund launches namely D2C Insider (Super Angel Fund), LC Nueva Investment, and Northern Arc (Finserv AIF Fund). The Indian government is poised to take action against e-commerce companies that have been accused of flouting dark pattern regulations during the festive season sales. The Central Consumer Protection Authority (CCPA) is investigating complaints alleging that these companies have used deceptive design elements to trick consumers into making purchases. Dark patterns, such as creating a false sense of urgency or misleading customers, have become a growing concern as e-commerce has boomed in India. To address this issue, the government introduced guidelines last year to regulate the use of dark patterns and curb deceptive practices by e-commerce companies. Around tech IPOs, Zetwork and Physics Wallah are in talks with investment bankers for their respective IPOs while logistics firm Blackbuck has received SEBI’s green signal for the public listings. Kunal Bahl, the founder of Snapdeal and Titan Capital, is joining Shark Tank India as a new shark. His addition comes after Zomato’s Deepinder Goyal stepped down from his role as a judge due to Swiggy’s sponsorship of the show. A new report by Fairwork India has ranked Ola, Uber, and Porter lowest for working conditions for gig workers in India. The evaluation assessed 11 platforms and found that while BigBasket, Swiggy, Urban Company, and Zomato performed well, no platform fully met all five principles of fair labor standards. The report emphasizes the urgent need to improve conditions for gig workers in the country’s rapidly growing platform economy.

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