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Exclusive: ShareChat’s CBO Gaurav Jain quits

EntrackrEntrackr · 2m ago
Exclusive: ShareChat’s CBO Gaurav Jain quits
Medial

Exclusive: ShareChat’s CBO Gaurav Jain quits Gaurav Jain, the Chief Business Officer of social media platform ShareChat, has resigned, according to an update shared by the company’s founder and CEO, Ankush Sachdeva on the company’s Slack channel. “Gaurav has played a pivotal role in shaping our Ad Sales and B2B Marketing teams. His steady leadership and thoughtful approach has helped us navigate some tough periods and drive progress,” said Sachdeva. According to the internal announcement, Jain will be with the company until July to ensure a smooth handover. He joined ShareChat in October 2022. Prior to that, he was Head of APAC Business Expansion at Snap for less than a year, and Head of Mid-Market Business for Meta India for more than three years. In the interim, ShareChat has named Manohar Charan, who will be stepping in to lead the business during the transition. Charan, who is the Chief Financial Officer of ShareChat, was recently elevated to the position of Co-founder of the Bengaluru-based company.

Exclusive: BharatPe’s CHRO and chief data scientist quit

EntrackrEntrackr · 8m ago
Exclusive: BharatPe’s CHRO and chief data scientist quit
Medial

Fintech unicorn BharatPe is navigating another phase of transition as its Chief Human Resources Officer (CHRO) and Chief Data Scientist have decided to step down, sources familiar with the matter told Entrackr. Smriti Handa, who took on the role of CHRO in April 2022, and Ritesh Mohan Srivastava, who joined as Chief Data Scientist in July 2022, are set to leave the organization, as per sources. Before joining BharatPe, Srivastava was on the advisory board at N44 Capital, while Handa was the global talent acquisition director at Reckitt. Confirming the development to Entrackr, a BharatPe spokesperson said, “We would like to confirm that Ms Smriti Handa is moving on from BharatPe to pursue exciting career opportunities abroad. She has been instrumental in spearheading various HR initiatives and her efforts have made a lasting impact. As she embarks on a new chapter, we extend our heartfelt wishes for her continued success." The spokesperson did not comment on Srivastava’s exit. In April, BharatPe made leadership changes across three verticals – Resilient Innovations Private Limited (merchant app), Resilient Payments Private Limited (payment unit), and Resilient Digi Services Private Limited (lending unit). Entrackr exclusively reported the development then. During this period, BharatPe appointed Nalin Negi as its full-time Chief Executive Officer (CEO), following his tenure as interim CEO for over a year. BharatPe has demonstrated remarkable growth over the past three fiscal years, with revenue increasing from Rs 119 crore in FY21 to Rs 1,426 crore in FY24. The company’s losses also dropped by 50% to Rs 474 crore in FY24 from Rs 941 crore in the previous fiscal year. In a progressive step, BharatPe settled its long-standing differences with former co-founder and managing director Ashneer Grover.

Exclusive: Pravega and IIFL invest in GrayQuest’s Series B

EntrackrEntrackr · 11m ago
Exclusive: Pravega and IIFL invest in GrayQuest’s Series B
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Education loans-focused fintech startup GrayQuest is set to raise Rs 53 crore ($6 million) in a Series B round co-led by Pravega Fund and IIFL Fintech Fund. The board of GrayQuest has passed a resolution to offer and issue 6,228 fully paid up and 1,530 partly paid up Series B preference shares at an issue price of Rs 69,062 each to raise Rs 53.57 crore. Pravega Ventures and IIFL Fintech Fund each invested Rs 21.50 crore, while the company’s founder, Rishab Sumer Mehta, also participated with shares worth Rs 10.56 crore. The shares allotted to Rishab are partly paid, meaning the remaining amount will be called upon when the board decides. GrayQuest will utilize the fresh funding to meet financial requirements and support its expansion plan, the firm’s regulatory filings disclosed. The company has also increased its ESOP pool size by adding 1,204 new options, bringing the total ESOP pool to 5,718 options, as per a separate filing. Entrackr estimates that GrayQuest’s ESOP pool is currently valued at $4.5 million. The Mumbai-based startup had raised $7 million in its Series A round back in March last year, and $1.2 million worth pre-Series A round in August 2020. According to the startup data intelligence platform TheKredible, GrayQuest has been valued at around Rs 530 crore ( $64 million) post-allotment. The Series B round appears to be ongoing, and the startup is likely to raise additional funds, which could result in a variation in its valuation. Following the fresh proceeds, Pravega Ventures will hold 10.94% of the company, while IIFL Fintech Fund will own 4.07%. Its Founder Rishab Sumer Mehta will command a handsome 38.59% stake in the company. Seven-year-old GrayQuest is an integrated fee collection platform for educational institutions, allowing parents to pay annual education fees in flexible monthly installments with zero interest. Recently, Grayquest was selected for Co-Lab initiative, which was launched by HDFC Bank in collaboration with Pravega Ventures. For the fiscal year ending in March 2023, the startup reported Rs 8.76 crore in operating revenue with Rs 26.3 crore loss. It has yet to publish FY24 results. According to data compiled by TheKredible, GrayQuest and its competitors, including Leap, Auxilo, Avanse Financial, Financepeer, Propelld, Mpower Financing, and Eduvanz, have collectively secured approximately $500 million in funding over the past 24 months. In July, Entrackr exclusively reported that Leap is in talks to raise a new round at unicorn valuation.

Exclusive: Panacea Biotec to acquire Power Gummies

EntrackrEntrackr · 4d ago
Exclusive: Panacea Biotec to acquire Power Gummies
Medial

Exclusive: Panacea Biotec to acquire Power Gummies Pharma major Panacea Biotec Pharma Limited is set to acquire nutraceutical brand Power Gummies, according to sources aware of the matter. “The transaction is close to being finalized. Panacea Biotec will acquire the entire stake in Power Gummies, including its patents and trademarks,” said one of the sources. Regulatory filings reviewed by Entrackr show that the company is divesting certain assets to Panacea Biotec Pharma Limited, with the proceeds earmarked primarily for debt repayment. Founded in 2018, Power Gummies has positioned itself as a health and wellness brand tailored for modern lifestyles. It claims to offer unique formulations validated by WHO-standard clinical trials, backed by strong R&D and sustainable manufacturing practices. The company’s portfolio spans across categories including hair, skin, sleep, immunity, stamina, and gut health. As per sources, the deal is in the last leg and all terms and conditions have been finalised. Responding to Entrackr’s queries, Power Gummies’ founder and CEO Divij Bajaj said, “As part of the business strategic realignment process, we continuously review our portfolio. In line with this strategy, we may divest brands to a reputed pharmaceutical company to continue to build Happiness for our customers. As of now as we are still evaluating.” Queries sent to Panacea Biotec did not elicit a response until publication of the story. According to the startup data intelligence platform TheKredible, Power Gummies has raised around Rs 76.6 crore ($9 million), including its $6 million Series A funding led by 9Unicorns (now 100Unicorns). The company also raised Rs 10 crore from Jaipuria Family Office and Quadrant in December last year. For the fiscal year ending in March 2024, Power Gummies reported an operating revenue of Rs 17.4 crore against Rs 21.1 crore in FY23. Its net loss widened to Rs 21 crore from Rs 19.1 crore year-on-year. Panacea Biotec, which offloaded its domestic formulations business to Mankind Pharma in 2022 for about Rs 1,900 crore, is now eyeing growth through acquisitions. Its planned takeover of Power Gummies signals a pivot towards the nutraceutical and lifestyle wellness space, expanding beyond its traditional pharma and vaccine portfolio.

Exclusive: Aakash CEO Deepak Mehrotra gets Rs 5 Cr in annual salary

EntrackrEntrackr · 1y ago
Exclusive: Aakash CEO Deepak Mehrotra gets Rs 5 Cr in annual salary
Medial

Deepak Mehrotra, who was appointed as the managing director and chief executive officer of Byju’s-owned Aakash Educational Services Limited (AESL) in April, will receive Rs 5 crore in annual salary starting from the current fiscal year (FY25). As per documents accessed by Entrackr, Mehrotra will get Rs 41.66 lakh as monthly salary which includes HRA, special allowance and provident fund effective from April this year. The filings further added that he will get a maximum of 20% bonus on the annual salary which is subject to achievement of goals or key performance indicators. The board at Aakash has also allotted employee stock ownership plan (ESOPs) worth Rs 25 crore to Mehrorta which can be vested in four years equally every year starting from April 2025. Prior to joining AESL, Mehrotra was the Managing Director at Ashirvad Pipes and has more than 35 years of experience in executive roles in FMCG, telecom, and education sectors. At the time of the appointment, Byju’s said that Mehrotra will be a part of AESL’s strategic vision to improve its offerings, expand its reach, and create a positive impact on the education landscape. In November 2023, Aakash also raised $168 million from Manipal Education and Medical Group chairman Ranjan Pai to clear the debt raised from Davidson Kempner in May last year. Byju’s had acquired Aakash for $940 million in April 2021. However, Chaudhry family, the founder of AESL, refused to swap their remaining stake citing governance issues. Three years later, both firms withdrew the merger petition and they are running independently as separate entities under the Think and Learn brand. Aakash is likely to cross Rs 2,300 crore in operating revenue in FY23 according to its valuation report but it’s yet to file audited financials for the past two fiscal years (FY23 and FY24). It competes with FIITJEE and Kota-based Allen Career Institute. While FIITJEE slipped into losses with Rs 542 crore revenue in FY23, Allen registered Rs 429 crore profit with Rs 2,277 crore revenue in the said financial year. Both are yet to file their FY24 numbers.

Exclusive: Waterfield Advisors raises Rs 123 Cr at Rs 723 Cr valuation

EntrackrEntrackr · 6m ago
Exclusive: Waterfield Advisors raises Rs 123 Cr at Rs 723 Cr valuation
Medial

Exclusive: Waterfield Advisors raises Rs 123 Cr at Rs 723 Cr valuation Wealth management platform Waterfield Advisors is raising Rs 123 crore (approximately $14.6 million) in a new funding round, led by Jungle Ventures. The company’s board has approved a special resolution to issue 10,92,362 preference shares at an issue price of Rs 1,126 each, raising Rs 123 crore ($14.6 million), according to its regulatory filing accessed from the Registrar of Companies. Jungle Ventures is leading the funding round with an investment of Rs 100 crore. The remaining amount is being contributed by co-founder and CEO Soumya Rajan, along with individual investors, including Bharat Dhirajlal Shah, Vijay Singh, Bandi Vamsikrishna, Corel Traders, Parthasaradhi Reddy, Kekoo Colah, and Smita D Parekh. The company plans to utilize the proceeds for growth, expansion, marketing, and general corporate purposes, as determined by the board. According to Entrackr estimates, Waterfield Advisors will be valued at approximately Rs 723 crore ($86 million) post-allotment. The company is reportedly raising Rs 130 crore in this round. Founded in 2011 by Soumya Rajan, Waterfield Advisors is a fee-based multi-family office and wealth advisory firm, that ensures unbiased financial, investment, and succession planning services. Waterfield advisors had raised over $25 million in funding to date including $6 million from family offices, and ultra-high net worth individuals. According to the startup data intelligence platform TheKredible, Jungle Ventures will be the largest external stakeholder with 13.83%. Its co-founders Soumya Jain along with Sanjay Teli will cumulatively hold 40.07% of the company. Waterfield Advisors has recorded a 33.2% year-on-year increase in its revenue to Rs 45.7 crore in the fiscal year ended March 2024. Moreover, it managed to decrease losses by 9.5% to Rs 28.6 crore in FY24.

Funding and acquisitions in Indian startup this week [17 - 22 Jun]

EntrackrEntrackr · 1y ago
Funding and acquisitions in Indian startup this week [17 - 22 Jun]
Medial

As many as 41 Indian startups raised around $906.7 million in funding this week. These deals count 10 growth-stage deals and 22 early-stage deals. Moreover, eight early-stage and one growth-stage startup kept their transaction details undisclosed. In the previous week, about 31 early and growth-stage startups cumulatively raised over $336 million in capital. [Growth-stage deals] Among the growth-stage deals, 10 startups raised $857.4 million in funding this week. Quick commerce company Zepto grabbed the limelight with its $665 million funding. Ummeed Housing Finance, which provides housing and secured small ticket business loans, followed with its $76 million funding. Microlending platform Aye Finance, craft beer maker Bira 91, and fintech firm Slice also made it to the top five with $30 million, $25 million, and $20 million fundraises, respectively. D2C men’s apparel brand WROGN, small financing company Shivalik Small Finance Bank, Dvara KGFS, Aviom Housing Finance, and Jupiter’s NBFC arm Amica Finance are next on the list. [Early-stage deals] Moreover, 22 early-stage startups secured funding worth $49.3 million during the week. AI sales operating system OrbitShift spearheaded the list followed by healthtech platform Alyve Health, agriculture machinery company Balwaan Krishi, D2C fashion brand focused on custom-made The Pant Project, and SME-focused digital lending platform Supermoney. The list of early-stage startups also includes eight startups that kept the funding amount undisclosed: TaxGenie (Regime Tax Solution), Landeed, Praan, ThriveCo, Fanisko, Nirwana.ai, Lazy Cocktails & Co, and LEO1. 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 13 deals followed by Mumbai, Delhi-NCR, Chennai, Ahmedabad, Hyderabad, and Jaipur. Segment-wise, fintech startups grabbed the top spot with 12 deals. E-commerce, AI, SaaS, Food & beverages, and Healthtech startups followed this list among others. [Series-wise deals] During the week, Seed funding deals led the list with 17 deals followed by 7 Series A and 5 pre-Series A deals. Debt funding also saw 4 deals followed by Series F, Series B, pre-Seed, Series E, and Series G. [Week-on-week funding trend] On a weekly basis, startup funding surged 170% to $906.7 million as compared to around $336.45 million raised during the previous week. The average funding in the last eight weeks stands at around $421 million with 29 deals per week. [Fund launches] This week saw three significant fund launches. VentureSoul Partners launched their debut fund of Rs 600 crore to invest in established startups through venture debt. Gujarat Venture Finance Limited announced the first close of their Rs 200 crore “Prarambh Fund” targeting seed-stage tech startups with investments between Rs 1 crore and Rs 3 crore. 8X Ventures achieved a first close of Rs 60 crore for their second VC fund, aiming to invest in 18-20 early-stage deeptech startups, with a potential final corpus of Rs 300 crore. [Key hirings and departures] Here’s a summary of the key hirings and departures: Flipkart: Cleartrip, Flipkart’s travel booking unit, has appointed Anuj Rathi as its new Chief Business and Growth Officer. Vidyakul: Edtech startup Vidyakul has promoted Akhil Hari Angira to Co-founder and Chief Business Officer. He will oversee strategic partnerships, business growth, and expansion into underserved areas. Paytm: Paytm roped in Rajeev Krishnamuralilal Agarwal as a new non-executive independent director, while Neeraj Arora stepped down from the same position. Agarwal brings experience from companies like U GRO Capital and Star Health, while Arora is the founder of Halloapp and previously held positions at Meta and Google. [Layoffs] Silk product B2B marketplace ReshaMandi seems to be in deep trouble. After failing to secure Series B funding, the company has reportedly laid off 80% of its workforce and is significantly scaling down operations. It’s over Rs 300 crore debt leads to legal challenges and potential insolvency. [M&A] Ananta Capital’s beauty and wellness arm, Guardian, has acquired a 55% stake in D2C personal care startup Anveya Living, with plans to increase its stake further. Anveya Living, which owns the brands ThriveCo, Curlvana, and Anveya, will use the investment to launch new products and expand globally. Meanwhile, online travel aggregator Yatra Online has agreed to buy out its partner’s stake in the joint venture Adventure and Nature Network Private Limited (ANN), which operates in adventure tourism. Yatra Online will increase its stake in ANN from 50% to 99%, making ANN a subsidiary of Yatra Online. [Potential deals] The Indian startup scene is buzzing with potential deals. Here’s a glimpse of what’s brewing: AI-powered comic creation platform Dashtoon, with offices in India, is in late-stage talks to raise $10-12 million from a mix of new and existing investors. HealthTech startup HealthPresso is aiming to secure $1 million in pre-Series A funding, capitalizing on strong investor interest in its AI engine and distribution network. B2B SaaS platform Whatfix is on the verge of a $100-150 million funding round led by Warburg Pincus. Edtech giant Unacademy is reportedly in discussions for a historic merger with K12 Techno, the operator behind Orchids International Schools. This potential 50/50 merger could be the first major consolidation in the edtech space, which has faced a funding slowdown in recent years. Notably, Unacademy previously invested in Orchid Schools and both companies share an investor. Logistics firm Ecom Express is also reportedly in advanced talks with existing investors Warburg Pincus, CDC Group, and Partners Group to raise Rs 350-400 crore. The discussions are nearing completion, and this funding round could elevate Ecom Express’s valuation to over $1 billion, potentially making it the latest entrant to India’s unicorn club. Visit TheKredible to see series-wise deals along with amount breakup, complete details of fund launches, and more insights. [New launches] Bellavita co-founder Aakash Anand launches new venture, Unikon.ai Pocket FM partners with ElevenLabs to convert scripts into audio [Financial results this week] Awfis nears Rs 900 Cr income in FY24; losses contract 62% [News flash this week] Ola Electric gets SEBI nod for $660 Mn IPO Financial Intelligence Unit imposes Rs 18.82 Cr penalty on Binance VC firms General Catalyst and Venture Highway merge to focus on India CCI approves WeWork Inc exit from Indian co-working space Ixigo’s market cap spikes nearly 80% from the pre-IPO round Zomato, Paytm confirm acquisition talks for movie, ticketing business Flipkart-backed Blackbuck converts into a public company Peak XV tops the chart of Hurun India Future Unicorn Index 2024 Delhivery, Xpressbees looking to enter quick commerce space: Report OYO gets approval from shareholders to raise Rs 417 Cr: Report [Conclusion] The weekly funding surged around 170% to $906 million this week, majorly followed by the mega funding deal of Zepto worth $665 million. A bunch of financing companies also contributed significantly. The week saw three startup-focused fund launches by VCs namely VentureSoul Partners, GVFL, and 8X Ventures. Additionally, the week saw a layoff as Reshamandi laid off around 80% of its employees. Six months after filing a draft red herring prospectus (DRHP), Ola Electric has received approval for its initial public offering (IPO) from the Securities and Exchange Board of India (SEBI). The company, which filed the DRHP in December 2023, aims to raise Rs 5,500 crore ($660 million) through the public listing. Ixigo made a remarkable debut on the National Stock Exchange (NSE) on Tuesday, opening at a 48.5% premium above its issue price. Initially priced at Rs 93, Ixigo’s shares listed at Rs 138.5 on the NSE, while on the Bombay Stock Exchange (BSE), the shares opened at Rs 135, according to data from both exchanges. Later, the price touched Rs 194.38. Zomato and Paytm are in talks for Zomato to acquire Paytm’s movies and ticketing business. This deal is estimated to be around Rs 1,600-1,750 crore ($190-210 million). While no final decision has been made yet, Zomato says this potential acquisition aligns with their plan to focus on their core businesses and expand their “going-out” offerings. OYO got the green light from shareholders to raise Rs 416.85 crore by issuing preference shares. The funds will come from InCred Wealth by purchasing 14.37 crore Series G preference shares at Rs 29 each. Additionally, in a move to capitalize on the booming quick commerce market, logistics players Delhivery and Xpressbees are expanding their services beyond traditional e-commerce deliveries. Delhivery is now managing larger warehouses for Swiggy Instamart, which fulfills orders for quick commerce deliveries through a network of smaller, localized stores. Xpressbees is also exploring entry into this space, reportedly in talks with several players. This shift in focus highlights the growing importance of quick commerce deliveries and the potential logistics companies see in this rapidly developing market.

XpressBees turns EBITDA positive in FY24, warehousing biz grows 60X

EntrackrEntrackr · 4m ago
XpressBees turns EBITDA positive in FY24, warehousing biz grows 60X
Medial

XpressBees turns EBITDA positive in FY24, warehousing biz grows 60X E-commerce-focused logistics and supply chain firm XpressBees managed only modest double-digit growth in the fiscal year ending March 2024. However, the company turned EBITDA positive during the same period, despite an increase in overall expenses. XpressBees’ operating revenue increased by 12% to Rs 2,831 crore in FY24 from Rs 2,531 crore in FY23, as per its consolidated financial statement sourced from the Registrar of Companies (RoC). XpressBees provides B2B/B2C express delivery service, cross-border logistics, and warehousing services to e-commerce players including Snapdeal, Myntra, Meesho, Netmeds, and Bigbasket, among others. Revenue from logistics services remained the primary source of income for XpressBees, accounting for 97% of the company’s total revenue. However, the company’s warehousing business, though smaller in size, posted an impressive jump (60X) — soaring from Rs 0.77 crore in FY23 to Rs 48 crore in FY24, signaling a strong push toward expanding its non-courier biz. The remaining revenue came from warehouse services (Rs 48 crore) and support services (Rs 31 crore), both of which witnessed notable growth. The firm also added Rs 109 crore from non-operating activities, which pushed its overall income to Rs 2940 crore in FY24. On the expense side, courier charges remained XpressBees’ largest cost component, rising 12% to Rs 1,816 crore in FY24. Linehaul charges saw a modest 6% increase to Rs 494 crore, while employee benefit expenses rose by nearly 10% to Rs 355 crore in the said fiscal year. Depreciation costs spiked 49% to Rs 159 crore, and other operational expenses contributed an additional Rs 319 crore. Overall, XpressBees’ total expenditure increased 13% year-on-year, reaching Rs 3,143 crore in FY24 from Rs 2,785 crore in FY23. With expenses growing faster than revenue, XpressBees' net loss widened by 11%, rising to Rs 200 crore in FY24 from Rs 180 crore in FY23. However, the Pune-based firm achieved EBITDA positivity, reporting an EBITDA of Rs 5 crore for the same period. The company’s ROCE stood at -8.32%, while its EBITDA margin came in at a modest 0.17%. On a per-unit basis, XpressBees spent Rs 1.11 to earn every rupee in revenue during FY24. XpressBees recorded current assets worth Rs 1867 crore in FY24, including Rs 1331 crore in cash and bank balances. Recently, Xpressbees acquired courier firm Trackon and named Uday R. Sharma as CBO for B2B, 3PL, and cross-border operations. According to startup data intelligence platform TheKredible, XpressBees has raised a total of $625 million in funding to date, having Norwest Venture Partners and Alibaba Group as its lead investors. The company’s Co-Founder & CEO Amitava Saha owns 3.15% of the company.

Startups rope in new CEOs amid cash crunch, layoffs, profitability and IPO plans

EntrackrEntrackr · 1y ago
Startups rope in new CEOs amid cash crunch, layoffs, profitability and IPO plans
Medial

Management rejig and layoffs at several prominent startups have continued to make headlines this year. For layoffs, startups have cited a familiar reason i.e. redundancies, efficiencies as well as getting a step closer to profitability. As far as management changes go, reasons and circumstances vary. For instance, DealShare’s CEO position was vacant for a long time. These changes, however, also bring a fresh wave of optimism in the ecosystem, which has of late faced a host of challenges, ranging from funding crunch to stringent regulatory actions. Data compiled by TheKredible shows that this year more than 10 Indian startups have appointed, elevated or are on the verge of naming their new chief executive officers (CEOs). The list includes the likes of DealShare, MyGate, Inshorts, Cult.fit, Third Wave Coffee, Byju’s, Ola, PhonePe, and Setu, among others. Interestingly, half of them have been elevated to the role of chief executive whereas some founders took charge as the operational leaders after the exit of the existing CEO. [Elevated CEOs] The year 2024 started with a new trend of appointing new CEOs and e-commerce platform DealShare was first when they elevated Kamaldeep Singh as the new chief executive of the company from being the president of their retail business. The firm faced several challenges during the second half of 2023 as its three co-founders left the firm in a short span of time and it also had to shut down its B2B vertical after a flat growth in FY23 with rise in losses. Community management app MyGate, news aggregator InShorts and fitness tech firm Cult.fit also elevated Abhishek Kumar, Deepit Purkayastha and Naresh Krishnaswamy, respectively, as their new chief executive officers. All previous CEOs of these three companies namely Vijay Arisetty, Azhar Iqubal and Mukesh Bansal have now taken the role of chairman. Iqubal recently joined Shark Tank India season III as a judge. Also, InShorts is pivoting from news aggregation to influencer led platform which could be the reason behind this reshuffle in leadership. Cult.fit also faced challenges early this year as it fired more than 150 employees. As per the company, it reduced some redundant positions with the aim of streamlining operations. Meanwhile, fintech unicorn BharatPe finalized Nalin Negi as its full time CEO. Negi, the former chief financial officer of the company, had been working as interim CEO since January last year. Freshworks also went through a reshuffle as the firm’s founder Girish Mathrubootham stepped down from the position of CEO after 14 years. Mathrubootham has transitioned into the role of executive chairman while the company’s president Dennis Woodside has been elevated as the new CEO. Freshworks went public in September 2021. It’s important to note that most of these companies in this list had losses until FY23. Though, a few of them managed to control losses during the fiscal year. For context, DealShare’s GMV remained flat but its losses jumped 14% to Rs 502 crore in FY23. InShorts posted flat scale with 33.6% jump in losses to Rs 310 crore in FY23. MyGate, Cult.fit and BharatPe also managed to control its losses. Check the graph below for more details. [New CEOs appointed in 2024] In January, PhonePe announced the appointment of Ritesh Pai as CEO of its International Payments business while Infibeam Avenues announced the appointment of Rajesh Kumar SA as CEO of its AI business venture Phronetic.AI. These appointments appeared to be a positive sign for both companies which are expanding their businesses. Third Wave Coffee’s co-founder and CEO Sushant Goel stepped down as the firm’s chief executive role and transitioned to a board member in March this year. The WestBridge-backed company named KFC India and Nepal CEO Rajat Luthra as Goel’s replacement. Before the exit of Goel, Third Wave Coffee also went through layoffs, firing more than 100 employees. In April, Aakash Educational Services, owned by edtech company Byju’s, appointed Deepak Mehrotra as its new managing director and chief executive officer. Mehrotra joined Aakash after the exit of its chief executive Abhishek Maheshwari. Recently, the firm raised money from Manipal Group’s Ranjan Pai to clear the debt raised from Davidson Kempner in May last year. Aakash has plans for a public listing this year. Last month, API infrastructure company Setu, owned by Pine Labs, named Anand Raisinghani as new CEO of the company. Raisinghani will succeed Sahil Kini, who is the erstwhile chief executive of Setu. Earlier this month, Paytm Money’s CEO Varun Sridhar also quit the position and Rakesh Singh has been appointed as the new chief executive of the stock trading platform. Before joining Paytm Money, Singh was the CEO of fintech company Fisdom. On Monday, Adda247 appointed Bimaljeet Singh as its chief executive for skilling and higher education business. Like several edtech firms, Adda247 also went through layoffs in the last quarter of 2023. It’s worth noting that Paytm Money and Phronetic.AI are owned by public companies One97 Communications and Infibeam, respectively. In terms of financial performance, Aakash reported profit in FY22 and expected to replicate same growth in FY23. Pine Labs reported more than Rs 1,600 crore revenue with control in its losses to Rs 227 crore in FY23. Third Wave Coffee reported a three fold jump in its revenue with same growth in losses to Rs 54 crore in FY23. During FY23, PhonePe as a group posted revenue of Rs 2,914 crore and Rs 1,755 crore loss. During the period, Adda247 reported Rs 115 crore revenue and Rs 110 crore loss. [Founders, executives took the charge after CEOs exit] Last month, Arjun Mohan, the CEO of Byju’s India operations, stepped down from his position seven months after joining the edtech firm. After his exit, the company’s founder Byju Raveendran returned as the operational leader to see day-to-day functioning. During the process, Byju’s also sacked more than 500 employees. It’s worth highlighting that Byju’s has been facing a cash crunch for a long time and failed to pay the salary of its employees on time. Recently, Ola Cabs’ CEO Hemant Bakshi left the firm after three months of joining. His departure came at a time when Ola is gearing up for an initial public offering (IPO). The company also fired 10% of its total workforce. In the interim, Ola founder Bhavish Aggarwal will oversee operations until a new executive is appointed. In January, Indus Appstore’s CEO Rakesh Deshmukh announced quitting the firm. Since then, the firm has been led by ⁠its CPO and co-founder Akash Dongre, and CBO Priya Meenakshi Narasimhan. The firm is yet to announce the name of the official CEO. As per a media report, Beardo’s CEO has gone on a year-long sabbatical from April this year. During his absence, CBO Siddharth Vaya, and Koteshwar LN, head of digital first business, are expected to lead the company. Beardo was acquired by Marico Group in June 2020. In the ongoing calendar year, Sukhleen Aneja, CEO of The Good Glamm D2C vertical and Subramanyam Reddy, CEO of upGrad’s Knowledgehut also announced their departure from the company. While Knowledgehut is yet to name the new CEO, The Good Glamm has decided not to appoint a new CEO for the D2C vertical. As per reports. Ketan Bhatia and Ankita Bhardwaj will lead the brand’s business operations. Last month, The Good Glamm Group resorted to layoffs and went through top level restructuring as it is gearing up for public listing. More recently, Paytm Payments Bank’s CEO and MD Surinder Chawla decided to hang up his boots. He will be relieved from his positions on June 26 while the firm is yet to announce his replacement. Public company Paytm laid off more than 1,000 employees in December 2023 in a cost cutting effort. As per reports, the firm also went through layoffs amid back to back departures of top level executives and the recent diktat by RBI. However, Paytm denied any fresh layoffs at the company. When it comes to financial performance, Byju’s and Ola are in deep losses and Beardo slipped into the red in FY23. Edtech unicorn upGrad reported close to Rs 1,200 crore revenue in FY23 with Rs 558 crore loss in FY23. Good Glamm Group is yet to file its annual financial report for FY23. [Conclusion] For those who have sniped at CEO salaries at startups, the last year should be a good indication of just why salaries refuse to moderate. Besides the high turnover, it is no secret that many investors and even founders have considered CEO’s as a horses for courses option, taking in people with specific skill sets when they were relevant for the organisation. Thus, be it fundraising, cost cutting, or all out for growth mindset, we have seen how different CEO’s bring their own competencies, which, unfortunately, have a use by date in most cases. Many of course can simply struggle to adapt to the startup culture and the unstructured challenges it throws up, which can be the worst outcome for a startup with little achieved during their tenures. Perhaps the toughest ask of a startup CEO is what she is expected to do in what seems like compressed time to most, making it most challenging to attract quality personnel at times. That is also one reason why we see investors take over the job of bringing in the CEO when they feel a founder needs to move on to a more strategic role or simply take a break from the intense pressure. Don’t expect the CEO churn to slow down anytime soon for these reasons.

Funding and acquisitions in Indian startup this week [09 - 14 Sep]

EntrackrEntrackr · 11m ago
Funding and acquisitions in Indian startup this week [09 - 14 Sep]
Medial

During the week, 24 Indian startups raised around $228.79 million in funding. These deals count 6 growth-stage deals and 13 early-stage deals while 5 startups kept their transaction details undisclosed. During the last week, 26 early and growth-stage startups cumulatively raised $421.29 million in funding. [Growth-stage deals] Among the growth-stage deals, 6 startups raised $182.65 million in funding this week. Mobile advertising network software InMobi spearheaded a $100 million debt funding round. MSMEs-focused fintech lender FlexiLoans raised $35 million followed by, employee healthcare platform Onsurity, spiritual tech startup AppsForBharat, consumer lending platform Moneyview, and HRtech platform HROne with $21 million, $18 million, $4.65 million, and $4 million in funding, respectively. Moneyview also joined the unicorn club following the fresh capital. One growth-stage startup that did not disclose the transaction details is Transcell Biologics. [Early-stage deals] Further, 13 early-stage startups secured funding worth $46.14 million during the week. Wealthtech startup Centricity led the list followed by D2C home decor and lifestyle brand Nestasia, AI reality intelligence platform Track3D, biotech-driven material R&D startup Dharaksha Ecosolutions, and sales outreach platform Futwork among others. As many as 4 startups that did not disclose the funding amount raised are; Trisu, Leezu’s, Fitday, and Agilitas Sports. 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 8 deals followed by Delhi-NCR, Mumbai, Hyderabad, and Kolkata. Segment-wise, E-commerce startups are on the top spot with 5 deals. Fintech, Healthtech, Cleantech, HRtech, Adtech, and AI startups followed this list among others. [Series-wise deals] During the week, seed funding deals are on top, with 9 deals followed by 4 Series A, 3 pre-seed, 2 pre-Series A, 2 Series B, 1 debt deal, and more. [Week-on-week funding trend] On a weekly basis, startup funding slipped 45.7% to $228.79 million as compared to around $421.29 million raised during the previous week. The average funding in the last eight weeks stands at around $331.70 million with 26 deals per week. [Fund launches] Three new funds launched this week to invest in startups. Playbook Partners has raised over $130 million for its growth capital fund. Proparco has invested $5 million in Omnivore’s third fund focused on agritech and climate sustainability. Arka Investment Advisory Services has launched its second alternative investment fund, focusing on real estate opportunities in India. [Key hirings and departures] Sudharshan Sharma, formerly with Google, joined CarDekho as a CBO for the auto business. Meanwhile, Cleartrip’s CBO Prahlad Krishnamurthi, and the CFOs of InCred (Vivek Bansal) and TAC Infosec (Vishal Jain) resigned from their respective companies. [Mergers and Acquisitions] Nazara Technologies, a prominent gaming company, made two major acquisitions. This includes a controlling stake in Moonshine Technology, the parent company of PokerBaazi, for a substantial sum of Rs 982 crore ($100 million) and a 15.86% stake in Stan, a blockchain-based e-sports fan engagement startup, for $2.2 million. GoKwik, an e-commerce enabler, acquired Return Prime, a global returns management app. Additionally, Moneyview, a digital lender, acquired Jify.co, an early salary/on-demand salary service provider. Yudiz Solutions, a listed blockchain and IT development startup expanded its offerings by acquiring a majority stake in ABCM App, a Mumbai-based digital payment solutions company. The acquisition was valued at Rs 6.14 crore. [Shutdown] InsurStaq.ai, a Delhi NCR-based startup developing generative AI solutions for the insurance industry, has shut down its operations. Despite a year of development and collaboration with insurance professionals, the company faced challenges that ultimately led to this decision. This news comes amidst a period of growth for the generative AI sector in India. Visit TheKredible to see series-wise deals along with amount breakup, complete details of fund launches, and more insights. [New launches and partnerships] IBV and FedTech unveil Indo-US launchpad to boost Indian startups D2C Insider launches Cohort-3 for early-stage D2C brands Zomato launches developer platform for PoS partners [Potential Deals] Slice set to raise over $35 Mn in funding via convertible debt Finova Capital to raise Rs 800 Cr funding Flipkart’s Super.money plans to raise external funds [Financial results this week] Virat Kohli-backed WROGN’s revenue dips 29% in FY24 Purplle hits Rs 700 Cr revenue in FY24, trims losses by 46% NPCI posts Rs 2,876 Cr revenue and Rs 1,134 Cr profits in FY24 [News flash this week] Peak XV, others divest stake worth Rs 1,600 Cr in MamaEarth’s parent Govt. exempts overseas startups from NCLT clearance for reverse flipping Kotak downgrades Nykaa to ‘Sell’, cuts fair value amid concerns Ather files DRHP to raise Rs 3,100 Cr via IPO; Hero MotoCorp won’t sell shares Swiggy to raise Rs 5,000 Cr via fresh issue, to file DRHP soon MobiKwik Xtra suspends ‘anytime withdrawals’; draws flak from users Aditya Birla Finance accuses BYJU’S resolution professional over alleged fraud Delhivery accuses Ecom Express of misinformation in DRHP Pravin Jadhav-led Dhan storms into top 10 stock broking apps Accel announces fourth cohort of the pre-seed investment program, Atoms Pixxel becomes the first Indian space startup to secure a NASA contract DroneAcharya share surges 20% on BSE, hits upper-circuit After Bengaluru, Flipkart Minutes goes live in Gurugram Ather Energy to manufacture electric motorcycle [Conclusion] The weekly funding shrank around 46% to $228.79 million this week. Meanwhile, three startup-focused funds launched this week namely Playbook Partners, Omnivore, and Arka. Peak XV, Stellaris Ventures, Sofina Ventures, and Fireside Ventures collectively sold shares worth Rs 1,600 crore in Honasa Consumer Limited, the parent company of MamaEarth. Kotak Institutional Equities downgraded Nykaa, a leading beauty and fashion e-commerce company, citing concerns about rising fulfillment costs and potential margin pressure. This highlights the challenges faced by e-commerce companies in maintaining profitability amidst increasing competition and operational complexities. Ather Energy, an electric two-wheeler firm, filed its DRHP for an IPO, marking the second such listing in the EV sector. Swiggy, a food delivery and quick commerce company, also planning to file the DRHP soon and is set to raise Rs 5,000 crore via a fresh issue. MobiKwik’s Xtra investors faced withdrawal issues due to changes in the withdrawal policy by its lending partner Lendbox. This was triggered by recent RBI regulations on P2P lending. MobiKwik clarified that withdrawals will be made on a monthly basis and assured customers of receiving their principal and interest.

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