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Ather files DRHP to raise Rs 3,100 Cr via IPO; Hero MotoCorp won’t sell shares

EntrackrEntrackr · 10m ago
Ather files DRHP to raise Rs 3,100 Cr via IPO; Hero MotoCorp won’t sell shares
Medial

Electric two-wheeler firm Ather Energy has filed its draft red herring prospectus (DRHP) with the Security Exchange Board of India (SEBI) for an initial public offering (IPO) on Monday. Ather will be the second two-wheeler EV maker to make its debut on the stock exchange. Ola Electric went public last month. The firm has proposed to raise funds through a fresh issue of equity shares aggregating up to Rs 3,100 crore (approximately $370 million) and an offer for sale (OFS) of up to 2.2 crore equity shares, according to the DRHP. GIC Ventures through its subsidiary Caladium Investment will divest 47.8% of the total offer for sale (OFS) while Tiger Global and 3 States Ventures will offload 18.1% and 2.18% of the offer for sale. Tarun Mehta and Swapnil Jain will also participate by offering 10 lakh shares each. The fresh issue and OFS will be allotted at a face value of Re 1 while the company will decide the price band and minimum lot band in consultation with the book-running lead managers shortly. According to the DRHP, Hero MotoCorp is the largest external shareholder with 37.2% followed by GIC (Caladium Investment) and NIIF which hold 15.04% and 10.29% respectively. However, Hero MotoCorp won’t participate in the OFS, which is a bit surprising for the observers. Its co-founders Tarun Sanjay Mehta and Swapnil Babanlal Jain cumulatively hold 13.26% of the company. Axis Capital, HSBC Securities, Nomura Financial, and JM Financial are the book-running lead managers of the issue. The company will use the proceeds from the fresh issue of shares on capital expenditure to establish their E2W factory, repayment of borrowing, research and development, and expenditures towards marketing, the DRHP further added. Ather recently turned unicorn after $71 million in funding from existing investor National Investment and Infrastructure Fund. The Bengaluru-based firm became the second unicorn from the electric vehicle space after Softbank-backed Ola Electric. Ather has raised over $500 million out of which $125 million came in the last three months for the Mehta-led company. The company also disclosed its Q1 FY25 numbers and it recorded Rs 339 crore in revenue in the first quarter of FY25 with a net loss of Rs 183 crore in the same period. In FY24, the firm reported a modest decline in its revenue which stood at Rs 1754 crore. Ather’s customer base increased by 34% to 1,14,000 in FY24. During FY23, the firm posted 270% customer growth, as per the DRHP. Notably, during the previous fiscal (FY24), Ather imported 28% of the raw materials from China where the figures stood at 10% in FY23. Ather competitor Ola Electric posted Rs 1,644 crore in revenue in Q1 FY25, marking its net loss down by 17%. Among two-wheeler EVs, Ather had 9% market share as of Q1 FY25 while Ola was at the top with 49%.

Exclusive: Euler Motors’ valuation remains flat in Series D round

EntrackrEntrackr · 2m ago
Exclusive: Euler Motors’ valuation remains flat in Series D round
Medial

Exclusive All Stories Exclusive: Euler Motors’ valuation remains flat in Series D round Commercial electric vehicle manufacturer ​​Euler Motors is raising Rs 638 crore (around $75 million) in its Series D round led by Hero MotoCorp. The company has already announced a $60 million investment from Hero MotoCorp, and the round is expected to see further participation from other existing investors. While the investment will provide a much-needed breather for Euler, which has been seeking funds for some time, the Delhi-based company will have to settle for a flat valuation in this round. To delve deeper into Euler’s latest funding round, Entrackr has reviewed the company’s regulatory filings to uncover details such as the round's breakdown, shareholding structure, and current valuation. The board at Euler Motors has passed a special resolution to approve the issue of 8,33,047 Series D Cumulative Compulsorily Convertible Preference Shares and 10 equity shares at an issue price of Rs 7,659 to raise Rs 638 crore or $75 million. Hero MotoCorp led the round with an investment of Rs 510 crore ($60 million) whereas British International Investment and Caladium Investment (GIC) will contribute Rs 96 crore ($11.3 million), Rs 32 crore ($3.76 million), respectively. As per Entrackr’s estimates, the Saurav Kumar-led company is expected to be valued at approximately Rs 1,496 crore ($176 million) post-allotment, reflecting a flat valuation compared to the previous round. According to startup data intelligence platform TheKredible, Euler Motors has raised around $128 million prior to this round including debt and equity. Following the allotment of Series D round, Hero MotoCorp will be the largest external shareholder in the company with 34.10%. Caladium Investment (GIC) and British International Investment will hold 18.00% and 10.40% stakes respectively. Launched in 2018, Euler Motors is a commercial electric vehicle startup specializing in the production of three-wheelers. The company has deployed its EV fleets for major clients such as BigBasket, Ecom Express, Amazon, and Udaan. On a year-on-year basis, Euler recorded over a 3X jump in its operating revenue, reaching Rs 189 crore in FY24 from Rs 62 crore in FY23. However, it also incurred a loss of Rs 227 crore during the same fiscal. The firm has yet to disclose last fiscal year numbers (FY25). It competes with Altigreen, along with established players such as Mahindra Electric, Piaggio, Kinetic Green, Tata, and others. The three-wheeler market is perhaps the one market that has evolved at its own pace. It has been the same story in the electric version, with nothing like the horde that entered the two-wheeler space hoping to strike it big. Margins are way healthier for the established players, and Euler has done enough to show it can punch its weight or even above as well. That explains the continued interest from Hero MotoCorp, albeit at the flat valuation to reflect the rising challenges or Euler’s present situation. With EV mandates only spreading faster to more and more states and some of the biggest buyers known to be open to a better deal, Euler certainly has a better than even chance of gaining further traction and enjoying a good ride. The key will be the ability to produce newer products for a market with a variety of needs by size and features.

Funding and acquisitions in Indian startups this week [15-20 Apr]

EntrackrEntrackr · 1y ago
Funding and acquisitions in Indian startups this week [15-20 Apr]
Medial

During the week, equivalent to 37 Indian startups raised nearly $310 million in funding. These deals include 10 growth-stage deals and 17 early-stage deals. Meanwhile, one growth-stage startup and nine early-stage startups did not disclose the amount raised. Last week, about 21 early and growth-stage startups collectively raised around $105 million capital. [Growth-stage deals] Among the growth-stage deals, 10 startups raised $225.86 million in funding this week. Cleantech startup GPS Renewables led the list with $50 million in debt funding. The list was followed by vernacular social media platform ShareChat, housing finance company Altum Credo, B2B procurement marketplace ProcMart, and aerospace components manufacturer JJG Aero which raised $48.86 million, $40 million, $30 million, and $12 million, respectively. Further, consumer lending app RING, ESG and accounting and reporting consultation provider Uniqus Consultech, education-focussed NBFC Varthana, QSR chain Wow! Momo, and provider of decentralized solar-hybrid mini-grids Husk Power Systems. Electric cycle maker EMotorad also secured undisclosed funding this week. [Early-stage deals] Subsequently, 17 early-stage startups scooped funding worth $83.76 million during the week. Climate-focused deeptech startup Ecozen spearheaded the list followed by training, certification, and recruitment services provider for grey collar Emversity (Beyond Odds), gaming startup LightFury Games, NBFC FincFriends, and shipping intelligence platform ClickPost. The list further includes quick-service burger chain Good Flippin’ Burgers, emergency healthcare provider Medulance, elder care startup VitusCare, RevOps startup Clientell, and SaaS-based customer experience startup ZEPIC among others. The list of early-stage startups also includes nine startups that kept the funding amount undisclosed: IWill, TraqCheck, Svish, Advance Mobility, IndoSup, Almonds Ai, 100KMPH, Payinstacard, and BlackCarrot. For more information, visit TheKredible. [City and segment-wise deals] In terms of the city-wise number of funding deals, Delhi-NCR-based startups led with 13 deals followed by Bengaluru, Mumbai, Pune, Kolkata, Patna, and Hyderabad. Segment-wise, fintech and e-commerce startups shared the top spot with six deals each. The list further counts healthtech, SaaS, foodtech, Gaming, and Automotive tech startups among others. [Series-wise deals] During the week, Seed funding deals led the list with 16 deals while Series A deals are at the second position with 7 deals, both collectively forming around 30% of the total funding. Further, Debt, Series B, and Pre-Seed are next on the list among others. [Week-on-week funding trend] On a weekly basis, startup funding grew 195% to $109.6 million as compared to around $105 million raised during the previous week. The average funding in the last eight weeks stands at around $267 million with 27 deals per week. [Departure] During the week, Arjun Mohan, the chief executive officer of Byju’s, stepped down from his position seven months after joining the edtech firm. His departure is part of the company’s efforts to restructure and streamline its businesses. [Fund launches] Four startup-focused funds were launched this week. The list includes a non-dilutive, grant-based fund (WTFund) for young entrepreneurs by Zerodha co-founder Nikhil Kamath. Venture capital firms Caret Capital and Ev2 Ventures teamed up to launch a new $50 million fund focused on India. Angel investing platform BizDateUp Technologies introduced a $24 million Category I Alternative Investment Fund (AIF) for technology startups. Additionally, Inviga Healthcare Fund (IHF), a new healthcare-focused private equity fund, raised $20 million in its first close. [Layoffs] Content-to-commerce platform The Good Glamm Group has reduced its workforce by 15% or 150 employees in the last 12-15 months, according to the company. The reduction in the workforce appears to be part of efforts to cut costs and extend the runway amidst a tight funding environment. [Mergers & Acquisitions] This week witnessed four merger & acquisition deals. Agilitas Sports acquired the brand license for the Italian sports brand Lotto from WHP Global. VerSe Innovation, the parent company of Dailyhunt, acquired Magzter, a digital newsstand with a vast library of premium magazines and newspapers. Aurionpro Solutions Limited announced the strategic acquisition of banking and insurance-focused PaaS startup Arya.ai. Moreover, OneVerse Gaming, a Metaverse and gaming tech startup, acquired the online poker platform PokerSaint, marking its fourth acquisition in the gaming sector. Visit TheKredible to see series-wise deals along with amount breakup, complete details of fund launches, and more insights. [New launches] ▪️ Zomato unveils all-electric ‘Large Order Fleet’ ▪️ CASHe launches CASHe Green to forays into EV financing ▪️ Namma Yatri launches ride-hailing services in Bengaluru [Financial results this week] ▪️ LoadShare’s scale remains flat in FY23, losses shrink 19% ▪️ Heads Up For Tails posts flat scale in FY23; losses mount 5X ▪️ InMobi’s Glance records 77% growth in FY23; losses cross Rs 1,000 Cr ▪️ Otipy posts 50% GMV growth in FY24; losses down by 21% [News flash this week] ▪️ KreditBee plans ‘Ghar Wapsi’ from Singapore to India ▪️ Baron and Invesco mark up Pine Labs’ valuation ▪️ Jio-BlackRock JV to enter wealth management, stock broking biz ▪️ Swiggy merges Mall offering with Instamart ▪️ RBI’s draft KYC guidelines add burden and cost for payment aggregators ▪️ Bhavish Aggarwal plans $500 Mn IPO for Ola Cabs [Conclusion] After a significant drop in funding, the weekly funding again rose nearly 3X this week. The week saw three fund launches namely WTFund, Caret Capital, BizDateUp, and Inviga Healthcare Fund. The week also witnessed a layoff as The Good Glamm Group fired a part of its workforce. Fintech company KreditBee is relocating its domicile from Singapore to India, following a trend among new-age firms like Pine Labs, Groww, Razorpay, Meesho, and Zepto. US-based investment firms Baron Funds and Invesco have marked up the valuation of fintech unicorn Pine Labs, with Baron valuing it at $5.8 billion and Invesco at $4.8 billion as of December 2023. In another development, Swiggy is integrating Swiggy Mall with its quick commerce offering, Instamart, to expand its product range. Additionally, after postponing its IPO plans in 2021, Ola Cabs is preparing for a $500 million IPO at a valuation of around $5 billion, and reportedly planning to file draft papers with SEBI within three months.

Layoffs, departures continue as Indian startups raise $1 Bn in April: Report

EntrackrEntrackr · 1y ago
Layoffs, departures continue as Indian startups raise $1 Bn in April: Report
Medial

The year 2024 started on a good note for Indian startups: an average of $1 billion in monthly funding, which is a significant growth when compared to the previous year during which monthly funding went below $500 million three times. In April 2024, however, startups crossed the $1 billion threshold on the back of a couple of pre-IPO funding, a few late-stage rounds, and debt deals. Indian startups raked in more than $1 billion across 124 deals in April, according to data compiled by startup data intelligence platform TheKredible. This included 36 growth-stage deals worth $813 million and 65 early-stage deals amounting to $225.75 million. Moreover, there were 23 undisclosed rounds, primarily early-stage deals. During the recent Startup Mahakumbh festival, Peak XV Partners’ managing director Rajan Anandan said that Indian startups are expected to raise $8 billion to $12 billion this year. He also added that around $20 billion of private capital is lying uninvested and is committed to investment in private firms and startups in India. This estimate appears close considering the current rate of monthly funding. [Month-on-Month and Year-on-Year trend] In April 2024, there was a 14% year-on-year jump in funding from $912 million in the same month last year. Even on a monthly basis, April almost matched March’s $1.18 billion funding. Interestingly, only one startup i.e. PharmEasy managed to raise funding in three digits during the last month. Since January, homegrown startups have raised close to $4 billion, and at this rate, it may cross the $11 billion funding raised in 2023. [Top growth stage deals] Healthcare startup PharmEasy’s $216 million pre-IPO round stood at the top, though its valuation dropped nearly 90% from $5.6 billion to $710 million during the latest fundraise. Financial services firm Northern Arc also announced its $80 million Series C round while Ola Electric raised $50 million in debt even after filing draft IPO papers. Altum Credo, ProcMart, SingleInterface, Infinity Fincorp, CloudExtel, and LetsTransport also featured in the top 10 growth stage deals in April. [Top early-stage deals] Omnichannel fashion startup Lyskraft, founded by Zomato’s co-founder Mohit Gupta and Myntra and Cultfit’s co-founder Mukesh Bansal, scooped up $26 million in a seed funding round and was on the top of the list in early-stage deals in April. Gen AI startup Neysa bagged $20 million whereas spacetech company Dhruva Space and edtech firm Emversity (Beyond Odds) raised $15 million and $11 million, respectively. The rest of the early-stage startups in the top 10 list raised less than $10 million each. The list includes Traya, LightFury Games, GTM Buddy, FincFriends, and Accacia. [City and segment-wise deals] City-wise, expectedly, Bengaluru-based startups are on top with 42 deals, contributing around 26% of the overall funding in April. Delhi-NCR and Mumbai followed with 30 and 26 deals, respectively. However, Mumbai-based startups topped the list in terms of the total amount raised. The list further counts Kolkata, Hyderabad, Pune, and Ahmedabad among others. Segment-wise, e-commerce startups (including D2C brands) and fintech startups co-led the list with 19 deals each followed by healthtech (16), SaaS (15), EV (5), automotive tech (4), and foodtech (4) startups among others. Visit TheKredible for more details. [Stage-wise deals] Series-wise, 44 startups raised funding in the Seed round followed by 20 Series A deals, 13 Pre-Series A, 11 Series B deals, and 7 Pre-Seed deals. As many as 14 startups raised debt funding worth $199.2 million during the period. [Mergers and acquisitions] Indian startups saw nearly a dozen mergers and acquisitions in April of which most deals were undisclosed. Among the disclosed deals, National Investment and Infrastructure Fund (NIIF) acquired a majority stake in digital infrastructure solutions company iBUS for about $200 million. US-based Aurionpro Solutions also acquired Indian fintech company Arya.ai for $16.5 million. The notable list of M&A also includes the acquisition of Shy Tiger brands by Ghost Kitchens India, Orbit by Postman, Awign by MyNavi, and Magzter by Dailyhunt’s parent company VerSe Innovations. [Layoffs, top-level exits, and shutdown/s] The mass firing in startups continued in April as they laid off nearly 1,500 employees during the month. April surpassed the cumulative layoffs of 1,100 employees during the first quarter of 2024. Troubled edtech company Byju’s remained on top with 500 layoffs, followed by The Good Glamm Group, Healthify, and Scaler with 150 layoffs each. Check the full list here. April also saw high-profile exits from startups including five chief executives. Sujot Malhotra, CEO of Beardo, Surinder Chawla, CEO of Paytm Payments Bank, Arjun Mohan, CEO of Byju’s India, Sukhleen Aneja, CEO of The Good Glamm Group’s D2C Brands Division and Hemanth Bakshi, CEO of Ola Cabs, have quit this month. Besides layoffs and departures, Nintee, a digital health startup launched by Wingify founder Paras Chopra, announced shutting down its operations after a year of launch. During the first three months of 2024, six startups announced their shutting down operations in India. [ESOP buyback] Employees’ stock buyback also continued in April as three growth-stage companies – Pocket FM, XYXX, and The Sleep Company – announced their ESOP buyback program last month. Pocket FM bought back $8.3 million worth of stocks from employees while the rest two did not disclose the transaction details. The March quarter saw four ESOP buybacks including MyGate, Meesho, Classplus, and Imagekit. Visit TheKredible to see series-wise deals along with amount breakup, complete details of fund launches, and more insights. [Conclusion] While the trajectory of fund raising is positive, its quality might worry some, as it has gone to a firm that was clearly in distress and at a massive haircut (PharmEasy), besides the large, lumpy deal from NIIF. It might also be time to relook debt funding numbers as part of overall startup funding figures, as debt is usually taken by startups that are running operations sustainably from a financial perspective, or where founders do not want to dilute stakes any more. So it’s not quite the risk capital that equity funding is. With a host of IPOs being lined up, we expect the growth trajectory to sustain as pleased investors return to find the next big opportunity.

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