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HCLTech chairperson Roshni Nadar conferred France's highest civilian award

YourStoryYourStory · 1y ago
HCLTech chairperson Roshni Nadar conferred France's highest civilian award
Medial

Roshni Nadar Malhotra, Chairperson of HCL Technologies, has been awarded the Chevalier de la Légion d'Honneur, the highest civilian award in France. This recognition reflects the growing economic and technological cooperation between France and India, acknowledging the contributions of Indian IT companies to France's digital ecosystem. As HCLTech has had a long-standing presence in France, Malhotra expressed commitment to scaling operations in the country in order to support the digital transformation of French businesses. In addition to her role at HCL Technologies, Malhotra is actively involved in education initiatives and children's empowerment through the Shiv Nadar Foundation.

HDFC Bank approves 100% stake sale of subsidiary HDFC Education to Vama Sundari Investments for ₹192 crore | Mint

LivemintLivemint · 10m ago
HDFC Bank approves 100% stake sale of subsidiary HDFC Education to Vama Sundari Investments for ₹192 crore | Mint
Medial

- HDFC Bank has approved the sale of its subsidiary HDFC Education and Development Services for a total of ₹192 crore. - The sale is being made to Vama Sundari Investments (Delhi) Private Limited, the successful bidder in the sale process. - The cost of sale is ₹9.60 per share, with a total of 20,00,00,000 shares being sold. - HDFC Bank will divest a 91% stake in HDFC Education on or before October 31, 2024, and the remaining stake by June 30, 2025. - Vama Sundari Investments (Delhi) Private Limited is a related party of HDFC Asset Management Company Ltd, a subsidiary of HDFC Bank. - The sale is in compliance with RBI's mandate for a full divestment from HDFC Education within two years from the merger of e-HDFC Limited with HDFC Bank.

HCL invests $20 Mn in edtech firm Educational Initiatives via secondary

EntrackrEntrackr · 1y ago
HCL invests $20 Mn in edtech firm Educational Initiatives via secondary
Medial

Education software company Educational Initiatives (Ei) has raised Rs 166 crore (approximately $20 million) in a secondary round from the HCL Group. The IT company will also acquire a minority stake in the Bengaluru-based company from private equity firm Gaja Capital. According to an ET report, Ei plans to expand to new markets like South Africa, Kenya, Ghana and Saudi Arabia. It currently operates in India, South Africa, Singapore, and the UAE. The firm is also looking to acquire edtech product companies focused on improving learning outcomes. Founded in 2001, Ei is a B2B company that provides schools with a suite of assessment and adaptive learning products for teachers and students to help improve learning outcomes. Ei, which claims to have over a million paid users, has tied up with several schools, state governments in India, international organisations, non for profit organisations and CSR initiatives. Led by Pranav Kothari, Ei registered a more than 56% jump in its revenue from operations to Rs 97 crore in FY23 from Rs 62 crore in FY22. During the period, the company’s profit saw a minor increase from Rs 4.2 crore to Rs 5.5 crore. India’s third largest IT services company HCL also invested in edtech company Guvi in September 2022. Guvi raised $1.9 million from Vama Sundari Investments, which is a promoter of HCL. It’s worth highlighting that HCL Technologies rebranded itself as HCLTech in 2022.

Third Wave Coffee’s scale grows 4.5X to Rs 144 Cr in FY23

EntrackrEntrackr · 1y ago
Third Wave Coffee’s scale grows 4.5X to Rs 144 Cr in FY23
Medial

Coffee chain firm Third Wave Coffee secured $35 million led by homegrown private equity firm Creaegis in September last year. The funding was followed by its notable growth in scale during FY23. Third Wave’s revenue from operations surged 4.5X to Rs 144 crore in the fiscal year ending March 2023 as compared to Rs 32 crore in FY22, its annual financial statements filed with the Registrar of Companies show. Just like StarBucks, Third Wave Coffee offers curated food menus and handpicked coffee, and has over 90 cafes across Hyderabad, Coonoor, Bengaluru, Delhi (NCR), Mumbai, Chandigarh, and Pune. The firm claims to have about 109 stores, of which 50% are operational in Bengaluru. Income from the sale of coffee and food items were the two revenue sources for TWC. The firm also made Rs 2 crore from the interest on bank deposits which took its total income to Rs 147 crore in FY23. For Third Wave Coffee, its employee benefits emerged as the largest cost center accounting for 28.8% of the firm’s overall expenditure. This cost surged 3.8X to Rs 58 crore in FY23 from Rs 15 crore in FY22. Third Wave Coffee’s costs of procurements (coffee and food materials), rent, legal, freight-logistics, marketing, and other overheads took its total expenditure to Rs 201 crore in FY23 from Rs 47 crore in FY22. See TheKredible for the detailed expense breakup. Expenses Breakdown Total ₹ 47 Cr https://thekredible.com/company/third-wave-coffee/financials View Full Data To access complete data, visithttps://thekredible.com/company/third-wave-coffee/financials Total ₹ 201 Cr https://thekredible.com/company/third-wave-coffee/financials View Full Data To access complete data, visithttps://thekredible.com/company/third-wave-coffee/financials Cost of materials consumed Cost of materials consumed Employee benefit Employee benefit Rent Rent Legal professional Legal professional Travelling conveyance Travelling conveyance Transportation distribution Transportation distribution Discounting charges Discounting charges Selling and marketing Selling and marketing Others To check complete Expense Breakdown visit thekredible.com View full data The increase in employee benefits and rent led its losses to increase 3.6X to Rs 54 crore in FY23 from Rs 15 crore in FY22. Its ROCE and EBITDA margin improved to -38% and -25.9% respectively. On a unit level, TWC spent Rs 1.40 to earn a rupee in FY23. Third Wave has raised over $66 million to date including its $35 million Series C round in September last year. According to the startup data intelligence platform TheKredible, WestBridge Capital is the largest external stakeholder with 32.62% followed by Creaegis. As per Fintrackr’s estimates, its enterprise value to revenue multiple is 8.86X as of FY23. FY22-FY23 FY22 FY23 EBITDA Margin -38% -25.9% Expense/₹ of Op Revenue ₹1.47 ₹1.40 ROCE -47% -38% Towards the end of current fiscal year (FY24), Third Wave Coffee went through a tough phase as it laid off more than 100 employees soon after the $35 million fundraise. The company’s chief executive Sushant Goel also moved to a board role and Rajat Luthra, former head of KFC India and Nepal, was appointed as the new CEO. Goel had 7.89% stake in Third Wave Coffee. It competes with Blue Tokai, Sabko Coffee, Rage Coffee, Slay Coffee, Sleepy Owl, and Seven Beans Co., among others. Its closest competitor Blue Tokai registered Rs 129 crore in revenue with Rs 42 crore loss in FY23. While the mushrooming of coffee chains is not a surprise considering the rapid urbanization and aspirational whiffs around these, the sector has an unusual amount of volatility for the hospitality segment. Coffee chains by default seek the premium end of the market, leaving an opportunity for smaller setups to grab share in the lower price points, and perhaps even eventually add lower priced coffee to their offerings. Doing it all with an aura of cool can be a deadly combination for the newer coffee chains, and something they should watch out for.

Leverage Edu revenue spikes 3.2X to Rs 69 Cr in FY23

EntrackrEntrackr · 1y ago
Leverage Edu revenue spikes 3.2X to Rs 69 Cr in FY23
Medial

Leverage Edu, which helps Indian students enroll in global colleges, has registered over three-fold growth in its operating scale in the fiscal year ending March 2023. At the same time, the Delhi-based firm’s losses rose 70%. Revenue from operations for the edtech startup spiked 228% to Rs 69 crore in FY23 from Rs 21 crore in FY22, its consolidated financial statements filed with the Registrar of Companies show. Founded in 2017 by Akshay Chaturvedi, Leverage Edu provides full-stack services including counseling, application-admission support, and financing to students pursuing international education. It assists students from India, Nigeria and Nepal, among others. The student placement services formed 90% of the Leverage Edu’s total operating revenue which shot up 3.26X to Rs 62 crore in FY23. The remaining income derived from other support services. Notably, 84% of the total revenue was generated from international sources, with India contributing 16% of the company’s income. On the cost front, employee benefits became the largest burn accounting for 38% of the overall expenditure. This cost grew 2.1X to Rs 66 crore in FY23 whereas advertising cum promotional cost saw a surge of 2.6X to Rs 55 crore in the previous fiscal year (FY23). Leverage Edu’s information technology, legal professional, rent, commissions, and other overheads took its total expenditure up by 154% to Rs 173 crore in FY23 from Rs 68 crore in FY22. Head to TheKredible for the detailed expense breakup. At the end, Leverage Edu’s losses grew 70% to Rs 103 crore in FY23 from Rs 47 crore in FY22. Its ROCE and EBITDA margin stood at -272% and -136.6%, respectively. On a unit level, it spent Rs 2.51 to earn a rupee. FY22-FY23 FY22 FY23 EBITDA Margin -142% -136.6% Expense/₹ of Op Revenue ₹3.24 ₹2.51 ROCE -31% -272% The company had raised around $70 million across rounds and was last valued at around $140 million. According to the startup data intelligence platform TheKredible, Blume Ventures is the largest external stakeholder with 16.9% followed by Tomorrow Capital and DSG Consumers Partners which command 14.82% and 12.52% stake, respectively. As LeverageEdu has grown, it has also expanded the breadth of its offerings, be it test prep or even funding arrangements. While that indicates focus on its target group, the firm is exposed to multiple risks due to its high costs. Disruption in markets like Canada has been well documented, but other lucrative western markets in Europe, besides the US, could also see a slowdown due to a poor job market there. Chaturvedi builds a strong narrative, reflected in the backing of over 50 investors he has garnered over the time since he launched the firm. That also provides him many avenues to seek tie-ups, expansions and more. However, eventually it all has to come back to something that can move ahead more sustainably. In a sector particularly loyal to strong brands, a drop in marketing costs should be expected now that the firm claims significant success behind it.

Funding and acquisitions in Indian startup this week [24 - 29 Jun]

EntrackrEntrackr · 1y ago
Funding and acquisitions in Indian startup this week [24 - 29 Jun]
Medial

This week, 25 Indian startups raised around $211 million in funding. These deals count 9 growth-stage deals and 15 early-stage deals. Moreover, one growth-stage startup kept its transaction details undisclosed. In the previous week, over 40 early and growth-stage startups cumulatively raised more than $900 million in funds. [Growth-stage deals] Among the growth-stage deals, 9 startups raised $150.84 million in funding this week. Edtech company upGrad topped with its $35 million debt funding. SaaS startup Rocketlane, co-working space solutions provider Smartworks, D2C apparel brand Rare Rabbit, and online gold loan platform Rupeek followed with $24 million, $20.24 million, $18 million, and $15 million funding. Healthcare startup Doceree, D2C jewellery brand Bluestone, EV startup Matter, and consulting firm NovaVente also raised capital while IT services provider Celebal Technologies raised an undisclosed sum from BlackSoil [Early-stage deals] Moreover, 15 early-stage startups secured funding worth $60.13 million during the week. B2B platform for apparel sourcing and manufacturing platform Zyod spearheaded the list followed by AI health startup Cloudphysician, D2C dairy brand Sid’s Farm, agriculture tech firm Two Brothers Organic Farms, and fabless semiconductor startup Morphing Machines. Credit card bill payment management platform CheQ, revenue-as-a-service platform for e-commerce and D2C brands Nitro Commerce, and hazardous waste management platform Neo San also raised funding among others. 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 10 deals followed by Delhi-NCR, Jaipur, Mumbai, and Ahmedabad among others. Segment-wise, fintech startups grabbed the top spot with 4 deals. E-commerce, Manufacturing, Agritech, and Healthtech startups followed this list. [Series-wise deals] During the week, Seed funding deals led the list with 7 deals followed by 6 Series A and 4 pre-Series A deals. Debt and Series B funding also saw 3 deals each followed by Series F and Series D. [Week-on-week funding trend] On a weekly basis, startup funding slipped 76.73% to $211 million as compared to around $906 million raised during the previous week. The average funding in the last eight weeks stands at around $404 million with 28 deals per week. [Fund launches] BizDateUp, a startup supporter organization, is allocating ₹40 crore to fund women entrepreneurs in India. This initiative aims to promote diversity and economic growth. Starting July 1st, women entrepreneurs can apply through BizDateUp’s website. The program offers funding based on a business plan, financial projections, and impact potential. In addition to funding, BizDateUp will connect beneficiaries with mentors and industry experts. [Key hirings and departures] Here’s a summary of the key hirings and departures: Equirus has announced Krishna Jha as a venture partner for their InnovateX Fund, adding his 25 years of experience to bolster their commitment to innovation and strategic growth. Meanwhile, Bengaluru-based early-stage VC firm Mela Ventures has appointed R Kalyan Sundar as the Head of Finance and Legal. Greg Moran, co-founder of Zoomcar, has been terminated as CEO after 12 years. Following his termination on June 20, 2024, he is required to resign from the board as per his employment agreement. Additionally, General Atlantic’s Sandeep Naik will transition to an advisory role by the end of the year. Responsibilities will be divided between Shantanu Rastogi in India, who became managing partner in 2017 and has shared the India head title with Naik, and Neal Kok in Southeast Asia. [M&A] London-based private equity firm Finnest has acquired a majority stake of 53.75% in Bengaluru-based cloud kitchen startup, Kitchens@, making it a subsidiary of Finnest Holdings. Additionally, Nazara-backed Nodwin Gaming announced that its Singapore-based subsidiary will increase its stake in Berlin-based Freaks 4U to 100% through a share swap deal. Nodwin’s Singapore unit, currently holding 13.51%, will initially raise its stake to 57%, with the remaining 43% to be swapped later. The total deal is valued at Rs 271 crore ($32.6 million). [Potential deals] Logistics firm Ecom Express is set to raise Rs 1,424 crore (approximately $172 million) from existing investors via a rights issue, marking its first round of investment this year. Meanwhile, quick commerce unicorn Zepto is reportedly in talks to secure an additional $400 million at a $4.6 billion valuation, just a week after raising $665 million. Visit TheKredible to see series-wise deals along with amount breakup, complete details of fund launches, and more insights. [New launches] Flipkart Group launches UPI app super.money to offer financial services CoinDCX introduces Web3 mode to allow users purchase crypto in INR Acko enters car repair and service space; launches Acko Drive Service Centre Park+ pilots on-demand driver hiring services Zomato launches restaurant services hub to simplify operations [News flash this week] IPO-bound Ather converts itself into a public entity Kota-based institutes see admissions drop by 31% in 2024 Prosus 2024 report card: Byju’s write-off, Swiggy and PayU growth Prosus writes off $500 Mn investment in Byju’s Zomato holds 56-57% food delivery market: Goldman Sachs DGGI asks online gaming companies to disclose cashback offered Avanse Financial joins IPO rush, files DRHP [Conclusion] After a sudden spike in the weekly funding last week, the startups saw a nearly 77% drop in funding to $211 million this week. Only fund startup-focused fund launched this week namely BizDateUp. A recent Goldman Sachs analysis indicates a shift in the Indian food delivery market, with Zomato emerging as the new leader. Zomato’s market share has grown to 56-57%, surpassing Swiggy, whose growth is slowing. Zomato’s food delivery business grew faster than Swiggy’s in 2023, and Goldman Sachs projects a strong future for Zomato with a 31% CAGR and higher profit margins. Zomato has also launched a “restaurant services hub” to streamline restaurant operations. Meanwhile, Flipkart has entered the Indian fintech market with its new app “super.money,” offering real cashback and faster UPI payments. The app plans to introduce credit cards, loans, and fixed deposits. Flipkart and PhonePe are also on the path to profitability, as per reports. Indian tax authorities are investigating online gaming companies for offering cashback to users, possibly to avoid GST. Companies like Delta Corp are under scrutiny for their cashback promotions from October 2023 to June 2024. Additionally, education lender Avanse Financial has filed for a Rs 3,500 crore IPO, with plans to use the funds for business expansion. Avanse reported a net profit of Rs 342.4 crore in FY24.

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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