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Zepto revenue soars 2.5x to Rs 11,110 Cr in FY25

EntrackrEntrackr ยท 3d ago
Zepto revenue soars 2.5x to Rs 11,110 Cr in FY25
Medial

Zepto revenue soars 2.5x to Rs 11,110 Cr in FY25 Quick commerce unicorn Zepto clocked Rs 11,110 crore (nearly $1.3 billion) in turnover in FY25, a sharp 150% jump from Rs 4,454 crore in FY24, according to regulatory filings reviewed by Entrackr. Zeptoโ€™s FY25 performance comes on the back of aggressive execution and disciplined expansion. According to earlier Aadit Palichaโ€™s post, the company was at $3 billion in annualized gross order value (GOV) and halved its losses over the last year. In FY24, Zepto incurred losses of Rs 1,248 crore on revenue of Rs 4,454 crore. That means the startup spent Rs 1.29 to earn every Rs 1 of revenue in FY24, a figure it has reportedly improved in FY25 with better unit economics, higher fill rates, and stronger contribution margins. We are not comparing Zepto's FY25 numbers with Instamart and Blinkit due to differences in their business models and accounting practices. However, the NOV (net order value) of Blinkit stood at Rs 22,731 crore in FY25, while Swiggyโ€™s quick commerce biz Instamart GOV was recorded at Rs 14,600 crore in the same period. Zepto's founder Aadit Palicha did not comment on the story. As per a recent report, Zepto is in talks to raise $500 million at a potential $7 billion valuation, a significant jump from its previous valuation of $5 billion when it raised $350 million in November 2024. The fresh round is expected to bolster Zeptoโ€™s runway ahead of a potential IPO in 2026, as the company pushes toward EBITDA break-even in the next 12โ€“15 months.

Exclusive: Swiggy offers 20% discount to HNIs in pre-IPO deal

EntrackrEntrackr ยท 1y ago
Exclusive: Swiggy offers 20% discount to HNIs in pre-IPO deal
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The Swiggy IPO is around the corner and the company has started preparing the ground for a debut on the stock exchange, likely after the general election. The firm turned into a public entity earlier this week and shortlisted bankers for running the IPO syndicate. While Entrackr exclusively reported about the firmโ€™s conversion into the public entity and its financial numbers in three quarters of FY24, wealth managers on Swiggyโ€™s behalf have been pitching a pre-IPO deal to high net-worth individuals (HNIs) to buy its shares at 20% discount on its current valuation, according to three sources aware of the details. โ€œThe company is offering shares at Rs 350 a piece and at a valuation of Rs 80,000 crore ($9.6 billion) valuation. This is roughly a 20% discount,โ€ said one of the sources requesting anonymity According to sources, Swiggyโ€™s current valuation stands at around Rs 1,00,000 lakh crore (over $12 billion). โ€œThe minimum investment in the round is Rs 25 lakh,โ€ added the above-quoted person. Itโ€™s worth highlighting that US-based investor Invesco recently marked up Swiggyโ€™s valuation up to $12.7 billion, indicating an optimistic outlook for the food tech company. Itโ€™s worth noting that it was the second markup in its value by Invesco and overall third for the Bengaluru-based foodtech decacorn. Queries sent to Swiggy did not elicit an immediate response. Swiggy booked Rs 5,476 crore in revenue from operations and Rs 1,600 crore loss during the first three quarters of the financial year FY24. Its revenue and losses stood at Rs 8,265 crore and Rs 4,179 crore, respectively, in the fiscal year ending March 2023. Meanwhile, rival Zomatoโ€™s revenue from operations stood at Rs 8,552 crore during the first three quarters of FY24. The firm, which made its public debut in 2021, also booked Rs 178 crore profit during the period. Currently, Zomatoโ€™s market cap hovers around $20.7 billion. That being said, Swiggy is marching ahead with its IPO plans as market sentiments appear to turn increasingly bullish following a year of the so-called โ€˜funding winterโ€™. This is evident from recent valuation markups of several startups, including Meesho, PineLabs, FirstCry, and Ola Electric which are gearing up to go public either this year or early next year. While the sterling turnaround in peer Zomatoโ€™s numbers might give cause for optimism to Swiggyโ€™s investment bankers, they will be aware that powering Zomato is the sharp rebound in the performance of Blinkit, its quick delivery platform. Swiggyโ€™s Instamart by contrast, has been a laggard in the space. Lending further credence to the fact that profits on the IPO are hardly a given for investors is the matter of aggregate losses, unlike Zomato. It seems fairly certain that a successful IPO will be followed by at least a year or more of losses for Swiggy, or subdued growth, if it chooses to staunch losses. The $12 billion valuation in private markets, by that measure, seems too optimistic yet, perhaps a fairer indication of value in FY26, than in FY25, if at all.

Meesho gets NCLT nod to relocate base to India

EntrackrEntrackr ยท 1m ago
Meesho gets NCLT nod to relocate base to India
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Meesho gets NCLT nod to relocate base to India The National Company Law Tribunal (NCLT) has approved Meeshoโ€™s move to shift its headquarters back to India from Delaware in the US, taking it a step closer to its initial public offering (IPO). This allows Meesho to separate from its US entity and merge back with its Indian company, completing its move back to India. A Moneycontrol report also added that Meesho is likely to pay $288 million in taxes for the reverse flip. Confirming the development to Entrackr, a Meesho spokesperson said, โ€œThis filing is part of our ongoing transition to re-domicile in India. With the majority of our operations, including customers, sellers, creators and Valmo partners already based here, this step aligns our corporate structure with our day-to-day business footprint.โ€ However, the spokesperson did not comment on the tax amount paid by the company. Media reports suggest that Meesho has also shortlisted Morgan Stanley, Kotak Mahindra Capital, JP Morgan, and Citi as its bankers and is likely to launch its IPO by the end of this year. Last week, the homegrown e-commerce platform also transitioned into a public entity from a private one ahead of its $1 billion IPO. Meesho adds to the growing number of Indian startups such as Razorpay, PhonePe, Groww, Pine Labs, and Zepto that have paid hefty taxes to relocate their base back home after originally being incorporated overseas. While Zepto and Dream11 did not disclose the amount of tax paid for the reverse flip, Razorpay paid $150 million, PhonePe and Groww paid Rs 8,000 crore ($1 billion then) and Rs 1,340 crore ($157 million) in taxes, respectively, to complete the process. Meeshoโ€™s rival Flipkart, with an estimated valuation of $36 billion, is also working on relocating its domicile from Singapore to India.

Fashion brand Libas profit falls 64% in FY24, nears Rs 500 Cr revenue

EntrackrEntrackr ยท 3m ago
Fashion brand Libas profit falls 64% in FY24, nears Rs 500 Cr revenue
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Fashion brand Libas profit falls 64% in FY24, nears Rs 500 Cr revenue Libas, a direct-to-consumer brand specializing in ethnic and fusion wear, approached Rs 500 crore in revenue during the fiscal year ending March 2024. However, increased spending on advertising and employee benefits resulted in a 64% fall in profits during the same period. Libasโ€™ revenue from operations increased by 38% to Rs 487 crore in FY24, from Rs 352 crore in FY23, as per its financial statement sourced from the Registrar of Companies (RoC). Libas is a digital-first womenโ€™s ethnic wear brand offering kurtis, salwar suits, dresses, and bottoms in fabrics like cotton, silk, and georgette. The sale of these products was the sole source of income for the company in FY24. The growth in scale came with a sharp increase in expenses across the board. Total expenses rose 45% to Rs 483 crore in FY24 from Rs 334 crore in FY23. When it comes to expenses, Libasโ€™s material costs remained its largest expense, making up over 61% of total costs, which rose 41% to Rs 296 crore. Advertising expenses surged 121% to Rs 42 crore, and employee benefits increased 56% to Rs 28 crore, while shipping costs totaled Rs 49 crore. The sharp spike in advertising and employee costs led to a 64% decline in profit, falling to Rs 5 crore in FY24 from Rs 14 crore in FY23. The company reported a Return on Capital Employed (ROCE) of 26.32% and an EBITDA margin of 3.06%. On a per-unit basis, Libas spent Re 0.99 to earn every rupee in revenue. As of March 2024, the Delhi-based company reported current assets of Rs 269 crore, with inventory alone accounting for Rs 154 crore. Significantly, its cash and bank balance stood at just Rs 30 lakh. According to startup data intelligence platform TheKredible, Libas has raised $18 million of funding from India Advantage Fund. The companyโ€™s co-founders, Sidhant Keshwani and Sunil Keshwan, own 84% of the company. Womenโ€™s ethnic wear is a crowded market at the best of times, and Libas has done well to get close to Rs 500 crores. But every milestone in the segment takes a lot of effort with ever changing trends for a fickly consumer. Libas has its work cut out if it wants to regain better margins, and quite simply, there is no easy way to get there. Be it exports, an offline play, or a cutback on advertising, the brand faces tough choices ahead to ensure it does not flare out like so many fashion brands. The good news is that contrary to opinion you might hear, ethnic wear is not going anywhere soon, as the strength in even saree sales indicates. If anything, the top brands have moved to a premiumisation model after building a strong reputation for quality. With its online focused approach, Libas will not find that easy to do, hence our belief that the brand is set to make some tough calls soon.

Indian startups raise $1 Bn in July: Report

EntrackrEntrackr ยท 1y ago
Indian startups raise $1 Bn in July: Report
Medial

After closing the first half year on a promising note, Indian startups managed to cross the $1 billion monthly funding run rate in July too. Startups are also anticipating favorable market conditions with many set for their stock market debut in early August, be it Ola Electric or Infra.Market later in the year. Meanwhile, the Indian government has abolished angel tax which is seen as a positive for the entire ecosystem. As per data compiled by TheKredible, Indian startups raised over $1.03 billion across 126 deals in July. This consisted of 28 growth stage deals amounting to $725 million and 72 early stage deals worth $311.83 million. Meanwhile, there were 26 undisclosed transactions mainly in early-stage deals. [Y-o-Y and M-o-M trend] While the last month saw a sharp decline in funding from $1.93 billion in June, this is the highest funding for July in the past three years. The sudden jump in June was steered by Zeptoโ€™s $665 million megaround followed by Flipkart, PharmEasy and Lenskart. Indian startups have raked in $8 billion in the first seven months of 2024. If the trend continues, the overall funding is comfortably expected to cross the $11 billion milestone of 2023. To recall, Indian startups saw $38 billion and $25 billion funding in 2021 and 2022, respectively. [Top 10 growth stage deals] There were two $100 million plus deals in July with Purplle and Rapido raising $120 million each. Bike taxi firm Rapido also turned unicorn and became the third company to enter the billion dollar valuation club in 2024 so far. Hospitality firm Oyoโ€™s $50 million came in third position followed by home service marketplace Urban Company, fintech company Navi, electric vehicle firm Matter, and wealthtech startup Dezerv, among others. Itโ€™s worth highlighting that Oyo saw a major haircut in its valuation while Urban Company raised the amount in secondary and Navi raised the sum in debt. [Top 10 early stage deals] As many as 72 early-stage startups raised $311.83 million funding last month. Manufacturer of high precision tooling for aero-engines and airframes, Unimech Aerospace led the list with a $30 million fundraise followed by renewable energy services company BluPine, electric vehicle and clean energy startup Simple Energy, gen-Z focused fast fashion D2C brand Newme, and wealthtech startup Stable Money which pocketed $28.8 million, $20 million, $18 million, and $15 million, respectively. Further, artificial intelligence startup UptimeAI, biotech firm Immuneel Therapeutics, community-led mobility app Namma Yatri, wedding service provider Meragi, and NBFC Seeds Fincap also raised funding among others. The list of early-stage startups also includes 26 startups that did not disclose their funding amount. For more information, visit here. [Mergers and Acquisitions] The month witnessed 17 acquisition deals. Gaming company Nazara Technologies acquired an additional 48.42% stake in Paper Boat Apps (PBA) from its promoters Anupam and Anshu Dhanuka for a sum of Rs 300 crore while its gaming arm Next Wave Multimedia acquired the intellectual property rights of Ultimate Teen Patti from Games24X7 for Rs 10 crore. The list further counts acquisition of Excelmax Technologies by IT giant Accenture, OneCare by Acko, Ekagrata by Adda247, Koral by Captain Fresh, Centcart by CASHe, BitOasis by CoinDCX, Galleri5 by Collective Artists Network, SiliConch Systems by L&T, and Munitalks by Melooha, among others. [City and segment-wise deals] City-wise, Bengaluru-based startups maintained the top position with 42 deals, contributing around 37% of the overall funding in July. Delhi-NCR and Mumbai followed with 33 and 24 deals, respectively. The list further counts Ahmedabad, Hyderabad, Jaipur, Chennai, Pune, and Kolkata, among others. Segment-wise, fintech startups led the show followed by e-commerce (including D2C brands) and SaaS with 15 and 10 deals, respectively. Healthtech, AI, and Agritech were next on the list. Visit TheKredible for more details. [Stage-wise deals] Series-wise, equivalent to 36 startups raised funding in the seed round followed by 27 Series A, 15 pre-Series A, 13 pre-Seed, and 4 Angel funding deals. Debt-only funding contributed $160.76 million or 15.5% of the overall venture funding across deals. [ESOP buyback] Adda247 and Swiggy announced ESOP buyback programs this month. Edtech platform Adda247 has initiated its first-ever ESOP buyback benefiting over 130 employees, following its acquisition of Ekagrata Eduserv. Meanwhile, food delivery giant Swiggy has rolled out its fifth ESOP liquidity program worth $65 million, providing an opportunity for employees to monetize their equity. These moves highlight the growing trend of startups rewarding employees through ESOP buybacks. [Layoffs, shutdowns and departures] Edtech major Unacademy laid off 250 employees as part of its cost-cutting measures. Similarly, agriculture supply chain firm Waycool underwent its third round of layoffs, affecting over 200 employees. In the content creation space, Pocket FM laid off nearly 200 contract writers based in the US. The startup ecosystem also saw three shutdowns. Vernacular microblogging platform Koo has ceased operations after failing to secure a buyer or sufficient funding. Apollo Tyres has also reportedly discontinued its doorstep car service, Trumigo, due to a lack of traction. In the edtech space, Bluelearn has shut down and will return a significant portion of its raised capital to investors. Edtech major Unacademy has seen the departure of its COO for offline centers, Jagnoor Singh. Similarly, Simplilearnโ€™s Chief Product Officer, Anand Narayanan, stepped down after an eight-year tenure. Zoomcarโ€™s global president has resigned amidst company restructuring while Medikabazaarโ€™s co-founder Vivek Tiwari stepped down as CEO. Eight Roads Venturesโ€™ Asia managing partner Raj Dugar also stepped down after 17 years with the investor, as per media reports. Visit TheKredible to see series-wise deals along with amount breakup, complete details of fund launches, and more insights. [Trends] Itโ€™s raining startup IPOs: This year quite a few internet companies such as TBO tech, Digit Insurance, Awfis and Ixigo have got listed on the Indian stock exchange, with all delivering spectacular returns post listing as well. Three more companies including Ola Electric, FirstCry and Unicommerce are all set to make their stock market debut. Moreover, Mobikwik, Swiggy and Avanse have been waiting for approval from the market regulator. Wealthtech on the rise: A clutch of wealthtech startups have managed to score decent funding in the ongoing calendar year. In July, Deserv and Stable Money raked in $32 million and $15 million respectively. As per reports, more wealthtech startups are on the verge of raising new rounds. Geographic expansion: Traditionally dominated by metros like Bengaluru, Delhi-NCR, and Mumbai, the landscape is now witnessing a surge in entrepreneurial activity from smaller cities. Startups hailing from Ankleshwar, Bareilly, Bicholim, Nashik, Rupnagar, and Udaipur have recently secured funding, underscoring the growing potential of these regions. Family offices spreading out: Wealthy families are diversifying their portfolios. Traditionally focused on real estate and fixed deposits, theyโ€™re now actively seeking new investment avenues. This shift has led to the creation of separate investment pools and a growing interest in equity markets. In the past month, seven family offices participated in funding rounds. These include the family offices of Sunil Singhania, Jyothi Pradhan (CEO of Kurlon), MS Dhoni, Dr. A Velumani, Vasavi Family Office, Desai Family Office, and a Tamil Nadu-based family office. [Conclusion] As we had predicted in 2023, and earlier this year, the markets are expected to pick up by H2 this year, and here we are. Perhaps the last piece in the puzzle would be an interest rate cut by the Fed, to catalyse a whole chain of events that could lead to a mini-boom yet again. While expecting the highs of 2021 might be too much to hope for ($38 billion), it is not unreasonable to expect the Indian market to attract at least $15 billion in funding in 2025. The strong record of IPOs that is building up will not hurt investor confidence at all. The only thing to watch out for might be a rotation from Fintech and E-commerce to newer and important segments like Healthcare and Climate tech. Both are areas where India has large domestic markets, multiple use cases, and the crying need for solutions that can make a difference. With the kind of huge targets the country has in front, and massive schemes to get close, expect some large deals in the renewables space soon.

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