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Trade Spotlight: How should you trade Grasim, Syngene, Birlasoft, ADF Foods, KFin Technologies, and others on Wednesday?

Money ControlMoney Control · 10m ago
Trade Spotlight: How should you trade Grasim, Syngene, Birlasoft, ADF Foods, KFin Technologies, and others on Wednesday?
Medial

The stock market closed with moderate gains, and here are some trading ideas for the near term: 1. Century Textiles and Industries: The stock is showing positive momentum and is currently trading at lifetime high levels. Use dips as a buying opportunity, with targets of Rs 2,650-2,700. 2. KFin Technologies: The stock witnessed a sharp rally and made a lifetime high. The trend is bullish, and one can adopt a buy-on-dips approach with targets of Rs 1,200 and Rs 1,240. 3. ADF Foods: The stock closed above a key level, confirming a breakout. The trend is positive, and one can consider buying on dips with targets of Rs 290-295. 4. Castrol India: The stock formed a bullish candle with higher volumes, indicating strong momentum. It is trading above its 20 DMA and has a positive outlook. Consider initiating a long position with a target of Rs 305. 5. Birlasoft: The stock is showing an upward trend and has strong volume participation. It is sustaining above its 20 DMA and has a bullish outlook. Consider buying with a target of Rs 700. 6. ICICI Prudential Life Insurance Company: The stock is forming higher highs and higher lows, indicating a sustained uptrend. It is positioned well above its short-term moving average, with a positive RSI reading. Consider buying with a target of Rs 790. 7. Syngene International: The stock is exhibiting robust momentum and is likely to extend its upward trajectory towards targets of Rs 880-900. Consider buying with a strict stop-loss. 8. Jindal Steel & Power: The stock is showing a solid upward trend with increasing volumes. Consider buying with targets of Rs 1,010 and Rs 1,026. 9. Grasim Industries: The stock is showing encouraging momentum and is approaching its support zone. Consider buying with targets of Rs 2,800 and Rs 2,825. 10. Dixon Technologies: The stock has recently broken out and is currently experiencing a pullback. Consider buying on declines with a target of Rs 14,000.

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Stock Radar: Titan, Jio Financial, Bandhan Bank, Lupin, CG Power, Diffusion Engineers, GAIL in focus on Monday

Money ControlMoney Control · 9m ago
Stock Radar: Titan, Jio Financial, Bandhan Bank, Lupin, CG Power, Diffusion Engineers, GAIL in focus on Monday
Medial

- Quarterly earnings (YoY) of companies such as Titan Company, Induslnd Bank, Bandhan Bank, Poonawalla Fincorp, Jammu & Kashmir Bank, AU Small Finance Bank, IDBI Bank, RBL Bank, Godrej Properties, L&T Finance, Macrotech Developers, Federal Bank, Metropolis Healthcare, Indian Bank, Union Bank of India, Utkarsh Small Finance Bank, Equitas Small Finance Bank, Dhanlaxmi Bank, Ujjivan Small Finance Bank, Adani Wilmar expected to be released. - SEBI grants in-principle approval for Jio Financial Services and BlackRock Financial Management Inc to set up a proposed mutual fund. - GAIL (India) signs MoU with AM Green to jointly develop renewable energy and green chemical projects. - Lupin receives five observations from the US FDA for its biotech facility in Pune. - Antony Waste Handling Cell's subsidiary wins a contract worth Rs 908 crore from Navi Mumbai Municipal Corporation for waste collection and transportation. - CFO resignations at Univa Foods (Sandhya Rani Koochana) and Mahanagar Telephone Nigam (Vinay Srivastav). - BLS International Services completes the acquisition of Citizenship Invest for $31 million. - Paytm's Chief Technology Officer - Payments, Manmeet Singh Dhody, steps down and transitions to a new role as an AI Fellow, while Deependra Singh Rathore is appointed as the new CTO - Payments. - Gravita India plans to raise up to Rs 1,000 crore through the issuance of equity shares and makes management changes. - Akzo Nobel India's parent company, Akzo Nobel NV, conducts a strategic review of its portfolio, focusing on its decorative paints positions in South Asia. - Apollo Tyres' stake increases as LIC buys 3 lakh additional shares. - R Systems International witnesses a significant stake sale by Non-Resident Indian Bhavook Tripathi. - HDFC Bank witnesses a block deal as BNP Paribas Financial Markets sells equity shares to Morgan Stanley Asia (Singapore) Pte and Citigroup Global Markets Mauritius. - SME listings on October 7: HVAX Technologies, Saj Hotels. - Stocks will trade ex-dividend: Jupiter Wagons, KP Energy. - Rights offered by Geojit Financial Services trade ex-date. - F&O ban on GNFC, Bandhan Bank, Birlasoft, Granules India, Hindustan Copper, Manappuram Finance, RBL Bank. Note: This content is for informative purposes only and not a recommendation to invest or trade.

Your-Space posts Rs 142 Cr revenue in FY24; losses up 20%

EntrackrEntrackr · 9m ago
Your-Space posts Rs 142 Cr revenue in FY24; losses up 20%
Medial

Student housing startup Your-Space recorded steady growth, with revenue surpassing Rs 140 crore in the fiscal year ending March 2024. However, the Delhi-based company also saw a slight increase in losses during the same period. Your-Space’s revenue from operations increased by 21.8% to Rs 142.7 crore in FY24 from Rs 117.2 crore in FY23, according to its consolidated financial statement filed with the RoC. Your-Space is a student housing company providing affordable PGs, hostels, and co-living spaces for girls and boys. The company operates over 60 smart spaces equipped with tech-enabled safety features such as facial recognition, biometrics, and digital locks. Income from residential services accounted for 99.5% of total operating revenue, which grew by 30%, reaching Rs 142.96 crore in FY24 compared to Rs 109 crore in FY23. The remaining income was derived from the sale of food, electricity, and other allied services. For the student housing startup, rental costs for accommodations accounted for 52.6% of total expenses, rising by 34% to Rs 92.2 crore in FY24 from Rs 68.9 crore in FY23. Employee benefits were Rs 21.1 crore in FY24. Additional overheads, including facility repairs and maintenance, advertising, and transportation, contributed to total expenses of Rs 175.3 crore in FY24, reflecting a 20% increase compared to FY23. See TheKredible for the complete expense breakdown. Your-Space recorded losses of Rs 30.7 crore in FY24, up from Rs 25.5 crore in FY23. Its ROCE and EBITDA margin stood at -809.54% and -69.15%, respectively. The company spent Rs 1.23 to earn a rupee of operating revenue in the last fiscal year (FY24). FY23-FY24 FY23 FY24 EBITDA Margin -14.47% -14.57% Expense/₹ of Op Revenue ₹1.24 ₹1.23 ROCE -69.15% -809.54% The eight-year-old startup has raised Rs 129 crore to date, including a $10 million round led by personal investments from Shantanu Rastogi (General Atlantic) and Ajay Gupta’s (Capital Foods) family office, AJAX Capital, along with Holy Basil Consultancy. The startup competes with Abuzz Oxfordcaps, Stanza Living, University Living, and Housr, among others. The student housing market offers two distinct opportunities. One, tie-in with large universities to manage hostels for them as a service provider, as Good Host Space has done with its hostel model, primarily in association with the Manipal Group. And then there is the second model to provide student housing in the environs of colleges and universities independently, to fill the gaps in those markets. Both models have their advantages, with the Your-Space model relatively insulated from policy impact, but facing higher marketing and promotion costs, for instance.Irrespective, much like higher education itself, the sector faces interesting times ahead should the murmurs around rising costs into a clamour for a deeper view on education costs, where hotel costs have become a significant component. A sector where cost escalations have to be considered very carefully, however large the potential and existing size, will always lead to some investor wariness, and explains the relatively later entry of these startups to the funding party. The student housing sector is fast reaching that point where a breakthrough on the stability of the business model and visibility of growth prospects will be needed more clearly soon to keep attracting investor interest.

RockClimber banks on authenticity and quality to tap into India’s beverage market

EntrackrEntrackr · 1y ago
RockClimber banks on authenticity and quality to tap into India’s beverage market
Medial

India has a massive beverage market with many established brands, though several new players, such as Bira, have also made their mark. Considering the sheer size of the market, it’s safe to say that there’s ample scope for newcomers. One such new player is RockClimber. The company creates fruit beverages and fruit spirits designed specifically for India, made from locally grown fruits like jamun, grapes, pomegranate, kiwi, mulberry, and litchi, among others. One of the company’s objectives is to help reduce fruit wastage and create a sustainable ecosystem for farmers and fruit produce. We spoke to Cofounder Hariprasad Shetty to learn more about RockClimber, what distinguishes it from the competition, and the roadmap ahead. Here are the edited excerpts: The beverage market is filled with multiple brands, including some very established ones. How do you plan to stand out from the competition? As a truly authentic fruit based beverage brand, we are committed to using high quality fruits with an experimentative approach to crafting unique fruit combinations that incorporate global flavour trends. This has allowed us to offer a very diverse range of exciting and refreshing beverages while keeping fruits at the center of everything we do. That’s what makes us stand out from the rest of the competition – we see ourselves as fruit experts and our products are fresh and engage with the evolving consumer preferences. So our focus is on delivering an uncompromising product experience. We source the finest fruits from across the country. This commitment to authenticity and quality sets us apart from many competitors who rely heavily on artificial flavors and preservatives. And the traction we have had in the last three years also points to how we have been accepted in the market. [FY 22 7 Cr, FY 23 7 Cr, FY 24 25 Cr, FY 25 60-70 Cr domestic and 30-35 outside India = 100 Cr+ target] 140 strong distributor network across 11 states. 3 million + bottles of beverages sold. 3000 tons of fruits processed sourced from a farmer base of 200,000 small scale fruit farmers producing grapes, pomegranate, pineapple, jamun, strawberry, mango etc. What is your offline and distribution strategy, usually the key to robust growth in your category? Most of the work should happen before Day Zero – the launch day. We recognized early on that a robust distribution network is the backbone of success in this business. We adopted a systematic approach to build our distribution network from the ground up. Mapping out territories and identifying potential distributors and retailers who could penetrate different markets. We only went ahead with experienced and reputable distributors who had an in-depth understanding of local market dynamics and consumer preferences. What is your strategy for online? Are you considering partnerships with any quick commerce platform? Yes, now that we have a headway in the distribution aspect and have achieved product market fit, we are now going to go aggressive on the marketing front especially online channels. What are the incentives for a farmer dealing with your platform other than the convenience of direct sale and price? Farmers are looking for a stable assured source of income every year. Timely procurement of their fruit produce, immediate payments, reduction in time to sale, and providing access to a large pool of buyers are all the benefits farmers get by working with us. We started with 500 tons of fruit procurement, and now at over 5000 tons. We aim for 10X procurement volumes in the next 2-3 years, thereby contributing to 10 times reduction in fruit loss, and hence a direct positive impact on small scale farmers livelihood and stable income generation. As we expand our facilities, we aim to recruit local talent to be part of our company and thereby directly provide employment opportunities as well. RockClimber aims to: Scale to 10,00,000 farmer base in the next 3 years Platform building for farmer outreach, communication, and forecasting Patented mobile fruit processing system Export unit in select locations for UAE and Africa markets You also mentioned entering the UAE and Africa markets. What is your roadmap for global expansion? And why particularly these two markets? We expect 30-35% revenues coming in from global markets in the near term. Particularly markets like UAE are huge on experimentation as consumers there are well traveled and have an international palette. We see a large market opportunity in the innovative – new age beverage category in this region.

Funding and acquisitions in Indian startup this week [25 - 30 Nov]

EntrackrEntrackr · 7m ago
Funding and acquisitions in Indian startup this week [25 - 30 Nov]
Medial

During the week, 18 Indian startups raised around $54.43 million in funding. These deals include 2 growth-stage deals and 13 early-stage deals while 3 startups kept their transaction details undisclosed. Last week, 23 early and growth-stage startups cumulatively raised around $596 million in funding. Among the growth-stage deals, 2 startups raised $13 million in funding this week. Direct-to-customer (D2C) e-commerce solutions provider ShopDeck is on top with $8 million in funding. MSME-focused digital lender NeoGrowth raised $5 million. Further, 13 early-stage startups secured funding worth $41.43 million during the week. Global manufacturer of plastic promotional toys SM Toys (Candytoy Corporate) led the list followed by commercial EV leasing and asset management ALT Mobility, cross-border specialty chemical distribution platform Elchemy, D2C platform for baby and mothercare products All Things Baby, and smart kitchen appliance brand Beyond Appliances. Meanwhile, DevX, BitSave, and ElecTrade also raked in funding but did not disclose the transaction details. For more information, visit TheKredible. In terms of the city-wise number of funding deals, Delhi-NCR-based startups led with 5 deals followed by Mumbai, Bengaluru, Ahmedabad, Indore, Kochi, Hyderabad, and Surat. Segment-wise, E-commerce startups are on the top spot with 6 deals. Manufacturing, EV, Chemicals, and Fintech startups followed the list among others. During the week, Series A and pre-Series A funding deals are at the top with 5 deals each followed by Seed, pre-seed, Series B, and Debt deals. On a weekly basis, startup funding dwindled 90.9% to $54.43 million as compared to around $596 million raised during the previous week. The average funding in the last eight weeks stands at around $263 million with 24 deals per week. As many as two startup-focused funds launched this week namely Stellaris Venture Partners and Kenro Capital. The startup ecosystem witnessed 2 notable hires this week. Battery Smart onboarded Amit Bhardwaj as CFO and Allianz Partners welcomed Michael Buttstedt as finance chief and board member. Additionally, Sriram Krishnan resigned from Andreessen Horowitz (a16z), Peak XV’s partner Anandamoy Roychowdhary left the firm, and Unacademy’s SVP of Design Hardik Pandya exited. E-commerce firm Nykaa announced acquired majority stakes in Earth Rhythm, Nodwin Gaming purchased Trinity Gaming, and ISMG took a majority stake in Nullcon. StockGro, a platform for learning about trading and investments, announced that it has conducted two Employee Stock Option Plan (ESOP) buyouts between 2023 and 2024. StockGro offered these buyouts purely to provide employees with the chance to cash in on their vested shares. Visit TheKredible to see series-wise deals along with amount breakup, complete details of fund launches, and more insights. Uber rolls out 'Uber One' loyalty programme in India. Meesho unveils Gen AI-powered multilingual voice bot. Miko set to raise Rs 28 Cr in Series C round. OneCard to secure $28.5 Mn in new funding round. Innov8 eyes fresh funds worth Rs 100 Cr. Sugar Cosmetics to raise funding from Anicut, Malabar. Univest plans to raise $16 Mn funding. Incupaze seeks $25 Md funding. Bloom Hotels posts Rs 250 Cr revenue in FY24; profit spikes 2.3X. CitiusTech’s profit balloons 6X to Rs 350 Cr in FY24. DailyObjects’ revenue spikes 34% to Rs 84 Cr in FY24. Pratilipi approaches Rs 60 Cr revenue mark in FY24, cuts losses by 62%. Cars24 sells 2 lakh cars in FY24, revenue nears Rs 7,000 Cr. ApnaKlub reports Rs 537 Cr gross revenue in FY24 with sound economics. Beardo crosses Rs 170 Cr revenue in FY24; regains profitability. Lendingkart posts Rs 1,090 Cr revenue in FY24, profit slips. With 500% growth, Pocket FM joins Rs 1,000 Cr revenue club in FY24. ShareChat’s revenue grows 33% in FY24 to Rs 718 Cr. EV firm Bounce on track to report over Rs 150 Cr revenue by FY25. Flipkart-owned Cleartrip spent Rs 988 Cr to earn Rs 97 Cr in FY24. Info Edge-backed Gramophone GMV shrinks 70% in FY24. HealthKart reports Rs 1,021 Cr revenue and Rs 37 Cr PAT in FY24. Zomato secures Rs 8,500 Cr via QIP. CCI probes Google after Winzo alleges anti-competitive practices. Awfis reports insider trading violation by a senior executive. Nazara Technologies raises over $100 Mn via preferential issue. CCI nods to Google's investment in Flipkart and Temasek's in Rebel Foods. IIMA Ventures and Google partner to boost 22 AI startups. Amazon India to debut in quick commerce with 'Tez' launch. Tata Neu expands into quick commerce with Neu Flash. Flipkart penalized for unfair trade practice over defective product. Zomato CEO Deepinder Goyal waives salary until FY26. Ola Electric launches affordable e-scooters for gig workers. Angel One receives SEBI approval to enter the mutual fund business. Honda enters the EV market with Activa E and QC1 e-scooters. IT department issues notices to Paisabazaar over vendor payments. Zomato’s hyperpure introduces a 4-hour express delivery service. On a weekly basis, startup funding dwindled 90.91% to $54.19 million as compared to around $596 million raised during the previous week. The week saw two startup-focused fund launches namely Stellaris Venture Partners and Kenro Capital. Amazon India is set to enter the quick commerce segment with a new delivery service, code-named ‘Tez,’ which is expected to launch by late December or early next year. Tata Group's e-commerce platform, Neu, has also introduced a quick commerce service, Neu Flash, offering 15-minute deliveries in over 20 cities across India. The District Consumer Disputes Redressal Commission (Mumbai Suburban) found Flipkart guilty of unfair trade practices over a defective product. The Commission directed Flipkart and the seller to refund the product’s cost with interest and pay INR 10,000 as compensation to the customer. It also criticized Flipkart’s ‘no return policy’ for the product, deeming it an unfair trade practice. Ola Electric has launched two electric scooter models, S1 Z and Gig, aimed at gig economy workers and budget-conscious consumers. Priced at INR 39,999, the Ola Gig directly competes with players like Yulu, catering to short-distance commutes and delivery services, while the Gig+ variant is priced at Rs 49,999. The S1 Z starts at Rs 59,999, with the premium S1 Z+ priced at Rs 64,999, offering a range of affordable options for diverse user needs. Paisabazaar, owned by PB Fintech, has received notices from the Income Tax Department regarding payments made to certain vendors and their associated entities. Issued under the Prohibition of Benami Property Transactions Act, 1988, and Section 142(1) of the Income Tax Act, 1961, the notices seek documents and explanations about these transactions. The company, in its regulatory filing, stated that it is complying with prescribed timelines and will take all necessary steps to present and defend its case before the authorities.

VLCC-owned Ustraa reports Rs 50 Cr loss with flat revenue in FY24

EntrackrEntrackr · 8m ago
VLCC-owned Ustraa reports Rs 50 Cr loss with flat revenue in FY24
Medial

Men’s grooming startup Ustraa was acquired by personal care brand VLCC through a share swap and secondary buyout in the first quarter of FY24. However, under the larger group, Ustraa experienced a slight decline in revenue along with an increase in losses. Ustraa recorded a 2.94% decline in its revenue to Rs 94.02 crore in FY24 from Rs 96.87 crore in FY23, according to its annual financial report with the Registrar of Companies. This marginal decrease indicates that it faced challenges in maintaining growth in a competitive market. Ustraa’s 95.08% of total revenue came from the sale of products, which saw a 5.1% decline compared to the previous year. The company also gained Rs 4.7 crore from other sources taking the total income to Rs 94.27 crore in the last fiscal year. On the expenses side, the largest component was the cost of materials, which surged by 63.16% to reach Rs 60.4 crore. Employee benefit expenses saw a decline of 17.5% to Rs 20.94 crore. Advertisement expenses saw a significant reduction by 64.46% to Rs 17.09 crore. In contrast, the commission's costs rose by 43.82% to Rs 10.93 crore. With miscellaneous expenses, the total expenditure of Ustraa stood at Rs 144.6 crore, a 5.11% jump from Rs 137.57 crore in FY23. As a result, Ustraa recorded a 25.27% surge in losses to Rs 50.32 crore for FY24 from Rs 40.17 crore loss in FY23. The company's ROCE and EBITDA Margin stood at 284.01% and -51.16% respectively. On a unit basis, the company spent Rs 1.54 to earn a rupee of operating revenue in FY24. The cash and cash equivalents for Ustraa as of FY24 was recorded at Rs 6.89 crore, compared to Rs 1.17 crore in FY23. No other significant bank balances apart from the cash and cash equivalents were reported for FY24 and the trade receivables for Ustraa was Rs 7.46 crore in FY24. Founded in 2015, Ustraa offers products such as fragrances, hair care, face care, and beard care. Following its acquisition, the company's founders, Rahul Anand and Rajat Tuli, continued to work with the brand while also leading VLCC's D2C initiatives. Before the acquisition, Ustraa had raised over $10 million from investors, including Info Edge, Wipro, and IIFL, among others. The brand directly competes with Beardo, The Man Company, and Bombay Shaving Company. Notably, all these companies are operating at a loss and have either become part of a larger group or sold a significant stake to a major corporation. Bombay Shaving Company registered Rs 182 crore in revenue for FY23 and aims to achieve a topline of Rs 260-280 crore in FY24. Beardo saw a 12.2% increase in its FY23 revenue to Rs 106.6 crore, while The Man Company recorded Rs 115 crore in revenue for FY23. Their audited FY24 results are yet to be released. So far, the Ustraa acquisition seems to be following a predictable pattern of a cut in manpower and advertising costs, and topline stagnation with worsening bottom line. That is nothing odd simply because it is almost a template when a firm is acquired for these events to follow, as acquirers ‘clean up’ legacy issues to try and start on a clean slate by the next financial year. The question is, will Ustraa survive the changes to deliver in the next financial year? Looking at the peer group, while profitability remains a challenge for all, topline growth should not be as difficult, especially if VLCC did the acquisition with a clear plan to infuse funds at a later stage. Where things get really sticky is when the parent firm runs into troubles of its own.

Funding and acquisitions in Indian startup this week [22 - 27 July]

EntrackrEntrackr · 11m ago
Funding and acquisitions in Indian startup this week [22 - 27 July]
Medial

During the week, as many as 22 Indian startups raised around $113.39 million in funding. These deals count 5 growth-stage deals and 8 early-stage deals while 9 early-stage startups kept their transaction details undisclosed. During the previous week, 35 early and growth-stage startups cumulatively raised more $261.21 million in funding. [Growth-stage deals] Among the growth-stage deals, 5 startups raised $49.3 million in funding this week. Renewable energy firm Rays Power spearheaded with its $15.1 million funding. Education loan provider Auxilo, NBFC NeoGrowth, EV company Ather Energy, and wealth and asset management firm Neo followed with $12 million, $11.2 million, $7 million, and $4 million in funding, respectively. [Early-stage deals] Further, 8 early-stage startups secured funding worth $64.09 million during the week. Manufacturer of high precision tooling for aero-engines and airframes Unimech Aerospace led the list followed by wealthtech startup Stable Money, co-working solution provider Incuspaze, quick service restaurant chain Charcoal Eats, and D2C luggage brand Nasher Miles. Provider of smart building solutions Nhance, two-wheeler service provider VOC Automotive, and HR technology platform Umwelt also raised funding. As many as 9 startups did not disclose the funding amount raised are; Pneucons, Godaam Innovations, VedaFit Foods, Aqin Biotech, Mkelly Biotech, Devnagri, WTF, Empyreal Galaxy, and Mayhem Studios. For more information, visit TheKredible. [City and segment-wise deals] In terms of the city-wise number of funding deals, Mumbai-based startups led with 6 deals followed by Delhi-NCR, Bengaluru, Ahmedabad, Bareilly, Hyderabad, Jaipur, Nashik, and Rupnagar. Segment-wise, Agritech and Fintech startups grabbed the top spot with 4 deals each. E-commerce, Manufacturing, and Proptech tech startups followed this list among others. [Series-wise deals] During the week, pre-Seed, Seed, and Series A funding deals led the list with 5 deals each followed by 3 Debt and 1 Angel, pre-Series A, Series B, and Series C deals each. [Week-on-week funding trend] On a weekly basis, startup funding slipped 56.6% to $113.39 million as compared to around $261.21 million raised during the previous week. This is the lowest weekly funding in the last 15 weeks. The average funding in the last eight weeks stands at around $323 million with 27 deals per week. [Fund launches] India Accelerator has launched a new vertical to support cleantech startups with substantial funding. Former defense secretary Ajay Kumar’s VC fund focused on defense, aerospace, and deeptech has successfully raised over its target corpus. Meanwhile, the Fashion Entrepreneur Fund has secured investments from prominent figures like Ravi Jaipuria and Akshay Kumar to empower fashion entrepreneurs in India. [ESOP buyback] Adda247 is buying back shares from over 130 employees at a price 40 times their initial purchase price. This move comes ahead of the company’s planned IPO in 2027. [Key hirings and departures] Ecom Express has strengthened its leadership by appointing Jitendar Kumar as Chief Business Officer and Abhinav Imandi as Senior Vice President. Meanwhile, Swiggy Instamart has expanded its team with key hires including Himavant Srikrishna Kurnala as SVP of Product, Mayank Rajvaidya as VP of Fruits & Vegetables, Manu Sasidharan as AVP of FMCG Category, and Kumar Rahul as AVP of Business Development. Drive FITT, Gupshup, and VC firm 360 ONE Asset Management also witnessed changes in their leadership teams. While, Asia managing partner of Eight Roads Ventures, Raj Dugar has reportedly stepped down after 17 years. [Mergers and Acquisitions] Business advisory firm Riveron has expanded its operations by acquiring Yantra. In the healthcare domain, Thyrocare has strengthened its presence in Northern India through the acquisition of Polo Labs. In the insurance and seafood industries, Acko and Captain Fresh have respectively acquired OneCare and Koral to bolster their market positions and service offerings. [Potential deals] Electric mobility startup Kazam is set to raise a $5 million funding round while Wingreens Farms seeking $4.3 million in debt financing. In the tech space, Glance is in advanced talks to raise $250 million, while Leap Finance is eyeing a $70-100 million round to achieve unicorn status. Additionally, Nykaa is securing Rs 125 crore through non-convertible debentures, as per media reports. Emami is set to acquire 100% stake in The Man Company, marking its entry into the D2C space. Visit TheKredible to see series-wise deals along with amount breakup, complete details of fund launches, and more insights. [New launches and partnerships] Google partners with ElectricPe to bring EV charging stations to Google Maps in India CRED launches financial management platform CRED Money [Financial results this week] Go Digit’s revenue falls in Q1 FY25 but profit spikes 90% Waycool posts Rs 1,251 Cr revenue and Rs 686 Cr loss in FY23 Urban company claims Rs 827 Cr revenue in FY24; 70% cut in losses [Key highlights of the Union Budget impacting startups] Angel tax: The government abolished the Angel Tax for all investors, effective April 1, 2024. This should make it easier for startups to raise funding. Focus on MSMEs: The budget allocated Rs 2 lakh crore to support MSMEs (Micro, Small and Medium Enterprises) with a focus on employment, skilling, and other opportunities. Easier foreign investment: The government plans to simplify rules and regulations for Foreign Direct Investment (FDI) to make it easier for overseas investors to invest in Indian businesses. Changes to tax rules: Non-reporting of movable assets up to Rs 2 lakh will no longer be penalized. While, income from share buybacks by companies will be taxed as dividends for the investor, starting October 1, 2024. [News flash this week] QIA seeks court injunction to halt sale or transfer of Byju Raveendran’s assets UPI in June: PhonePe, Google Pay see marginal decline, Paytm records flat growth Paytm fined for ESOP stamp duty lapses, gets NOD to invest in payments arm Ola Electric to launch IPO on August 2 The RBI fined Ola Financial Services for flouting KYC & PPI norms Delivery startup Dunzo faces new insolvency threat Manipal Group gets green light to increase stake in Aakash Cashfree Payments first to secure RBI’s cross-border payment license Google Maps to offer metro ticket booking in Kochi and Chennai Insurtech startup Covrzy gets broking license from IRDAI [Conclusion] The Indian startup ecosystem experienced a significant slowdown this week with funding plummeting by 56.6% compared to the previous week. While there were notable fund launches and new verticals emerging, the overall funding landscape was subdued. The Indian business landscape has seen a flurry of activity in recent weeks. Fintech giant Paytm has been fined for non-payment of stamp duties related to ESOPs, while simultaneously securing approval to invest in its payments arm. In the education sector, Manipal Health Systems is set to increase its stake in Aakash Educational Services. Bengaluru-based fintech startup Cashfree Payments has become the first company to obtain a Payment Aggregator Cross Border (PA-CB) license from the Reserve Bank of India (RBI). This license allows the company to process online transactions for both imports and exports, boosting cross-border trade and payments in India. Additionally, Google Maps is introducing a new feature that allows users in Kochi and Chennai to book metro tickets directly through the app. This service will be powered by the Namma Yatri app, which handles the payment and booking process. Cash-strapped delivery startup Dunzo is facing another legal challenge. A creditor has filed for insolvency proceedings against the company, claiming that Dunzo has only paid half of its owed dues. This is the latest financial setback for the Reliance-backed startup.

BluSmart drivers face uncertainty amid company troubles, founder issues

EntrackrEntrackr · 2m ago
BluSmart drivers face uncertainty amid company troubles, founder issues
Medial

BluSmart suspended its operations in April in Mumbai, Delhi-NCR, and Bengaluru, asking its 10,000 driver-partners to return their vehicles. The move has left several drivers scrambling to find new sources of income. Rajesh [name changed], a 35-year-old man in Gurugram, secured a driving job with a heavily VC-funded electric vehicle cab hailing company which once aimed to take on the duopoly of Ola Cabs and Uber in India. An average income of Rs 20,000 to Rs 25,000 per month, Rajesh admits, was not much for his family but managed to pay bills. Though, Rajesh, who also is a father of two young children, put in 10 hours to 12 hours daily - to reach the estimated monthly income. With his company now pausing the services, Rajesh has no source of earning, and does not know how he will pay his kids’ education fees. "... Now, I don’t know how I’ll manage. I missed my kids' school fees this month. My family depends on me, and I’ve never felt so helpless,” a visibly stressed Rajesh told Entrackr. One of the things that is agonising Rajesh the most is the deceptive way his employer pushed them out. “On Wednesday (April 16th), we [drivers] received a message saying the car needed to be submitted to the hub for a breakdown. We thought it was just a minor technical issue. When we got there, they told us it was a failure and we’d be informed later. But there was no word from the company after that. We just had to go home. We were left in complete shock," says Rajesh as his voice strains, reliving the fateful moment. Rajesh says he was among the first lot of employees, when the company had just 50 cars. Like many others, he too bought the company’s promise of stability. “Now, it feels like we’ve been left out to dry,” he said. “I’m considering working with Uber or Ola… I’m looking for something else, maybe a different field altogether. But BluSmart was my livelihood, and I’d go back in a heartbeat if they reopened. It was my only source of income,” he added. Rajesh’s story resonates with another thousands of drivers who are now scrambling to find new sources of income after BluSmart’s sudden suspension of its services. Entrackr has reached out to BluSmart seeking responses on how they plan to compensate the affected drivers. In case they respond, we will incorporate their inputs. Staging the protest On May 4, a group of BluSmart drivers raised their grievances at Jantar Mantar, a historic site for protests. They pressed for demands for alternative income avenues as well as called for crucial policy reforms to prevent similar abrupt dismissals. Additionally, they also sought a government intervention. Tajinder Singh, president of Parivahan Morcha Athavale and also among those spearheading the protest, told Entrackr that women drivers of BluSmart were among those bearing the brunt the most as other taxi companies refused to recruit them. He further said that some drivers were working on a per day basis as and when required but asserted that this was not a long-term solution. “We are demanding compensation for affected BluSmart drivers. We have also sought government intervention so that the drivers can continue to earn their livelihood,” Singh said. Singh also claimed that hundreds of BluSmart employees working at charging hubs were affected by the company’s sudden suspension of its services. A business model that promised to be different than rivals Even as ‘sustainability’ remained the headline grabber, BluSmart also deployed a rather different business model compared to rivals Ola Cabs and Uber. The company used a full-stack B2C model wherein they owned and managed the vehicles whereas Ola and Uber work with independent drivers. The model allowed BluSmart to have a better control on the quality of cars, maintenance, and subsequently better customer service. For drivers, the company offered a fixed salary along with incentives. An assured income was a big factor why a lot of drivers showed interest in joining BluSmart. Ola and Uber, on the other hand, operated on a familiar commission-based system, also common with several gig working-reliant service providers. Singh also highlighted this stark difference between BluSmart and its rivals. He said that the job of driver was to pick and drop the passenger and earn a regular income (per day payout and incentives). They needed to work 10 hours to 12 hours a day. Other things like maintenance and documentation was taken care of by the company, giving drivers a more relaxed environment to operate. Blusmart has raised over $180 million to date, including its $50 million series B round in January this year. Though, it received only Rs 61 crore out of $50 million. That said, a heavily-funded BluSmart juggernaut appeared unstoppable, until it did. Earlier this year, reports emerged that BluSmart delayed salary payments to cash crunch. It had also shut down operations in Dubai and also saw an exodus of top management employees, including CEO, CBO, and CTO. A month later, SEBI published findings of its probe into Gensol Engineering, BluSmart’s partner and EV lessor. The SEBI order highlighted misuse of funds, and also barred promoters Anmol and Puneet Singh Jaggi from accessing the securities market and holding key positions in Gensol Engineering. What next for BluSmart drivers BluSmart drivers facing joblessness due to the shutdown can go for legal remedy and urgently demand clearance of any unpaid dues and better severance compensation, if not given already. The legal course, which may take a relatively long time, may also help them investigate if BluSmart violated the contract by sudden halting of their services and returning vehicles. Moreover, they can also seek intervention from regulatory boards. Singh, however, did not appear enthusiastic about taking the legal course. “Companies like these make such contracts that they keep them protected in such incidents and don’t have to own any responsibility towards people working so hard for them,” he said [loosely translated from Hindi]. As far as the future of the company goes, it’s hard to predict considering the massive VC money riding on the company. Despite the major dent in public image and also several legal troubles, it’s likely that the company may stay afloat with a rather new management and new board - a few known steps troubled companies often take to course correct. It’s worth noting that quality of drivers and cabs were the top highlight of the platform, and if it resumes, it should continue with that. With the ongoing protests and lack of communication between drivers and management, it seems unlikely that the company will enjoy the same level of trust from its network drivers.

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