Bengaluru-based business-to-business (B2B) ecommerce unicorn Udaan has fired close to 120 employees, just within a week after scooping up $340 Mn in its Series E funding round.

Although, it could not be ascertained which verticals were impacted by the layoff, but as per Moneycontrol’s report, the downsizing has majorly affected staff across marketing, finance and operations.

Confirming the development to Inc42, an Udaan spokesperson said that the company is working towards providing all requisite support to the impacted employees, which includes medical insurance and compensation package.

“Over the last few years, we have made significant investments to build a solid and sustainable business. We believe in efficiency as a driver of profitable growth and are continuously making efforts to enhance efficiency, grow business sustainably and further improve customer experience,” the spokesperson said.

“We have already made significant progress in our journey towards building a profitable business and continue to make relevant interventions to our already proven business model, while remaining customer-centric and agile. However, these interventions have also resulted in some redundancies in the system,” the spokesperson added.

Founded by Vaibhav Gupta, Sujeet Kumar and Amod Malviya, Udaan enables supply chain and logistics operations focused on B2B trade. It claims to enable daily delivery across over 1,000 cities and 12,500 pin codes through udaanExpress. It counts the likes of Lightspeed, Microsoft and Tencent among its backers. 

Last Thursday, the company raised fresh capital led by UK-based savings and investment firm M&G Prudential, with participation from its existing investors Lightspeed Venture Partners and DST Global.

Udaan plans to use these funds to further strengthen customer experience, market penetration, and strategic vendor partnerships, and to reinforce long-term supply chain and credit capabilities.

Earlier, Udaan conducted operations with a nationwide scope but has recently opted for decentralisation. Each warehouse now houses multiple products spanning categories such as FMCG, Food, Lifestyle, etc, as per the report.

In the past, the FMCG team operated on a national level; however, the new approach involves organising operations on a cluster basis. This means that distinct teams will be assigned to different clusters, each responsible for overseeing all products within their designated cluster, regardless of categories.

In FY23, Udaan saw its operating revenue shrink by 43% to INR 5,609 Cr from INR 9,897.3 Cr in the previous fiscal year.

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Mumbai-based GetSetHome, an online platform that manages and provides accommodations on rent, has raised $1 Mn in a seed funding round from Mumbai-based VC firm Mistry Ventures. The startup plans to use this capital to accelerate growth by expanding its presence into new micro markets, enhancing its platform and UX to strengthen its customer presence in Mumbai and Pune, where it currently operates. 

Founded in 2014 by Junaid Shaikh, Shabnam Virani and Muddassar Virani, GetSetHome offers fully furnished accommodations on a shared and non-sharing basis on rent. 

The startup primarily serves students and professionals relocating to and within these cities. Junaid claimed that to date, the startup has helped over 12,000 individuals secure accommodation and that all its partner properties run on more than 90% occupancy rate. 

GetSetHome aims to increase its user base to 50,000 within the next two years.

Finding rental accommodation often involves dealing with a fragmented brokerage system, high upfront payments, extensive travel and accommodations that lack amenities. 

To streamline this house-hunting process, the trio set up GetSetHome. It allows users to explore homes through verified photos and book accommodations directly. 

Further, the startup claimed that it improves rental yields of residential real estate assets for property owners, including developers, from a typical 2% industry standard to an average of 6%.

Junaid noted that once properties are listed, owners are relieved from frequent broker calls and showing properties to potential tenants. 

Additionally, property owners listing with GetSetHome are freed from the burden of follow-up calls for timely rent collection and navigating complex documentation, among other responsibilities.

While talking to Inc42, Junaid said, “Over the last few years, we have leveraged our understanding of the rental ecosystem and demand trends in different micro markets to develop a robust rental stack solution.”

GetSetHome provides rental solutions utilising AI, ML and big data for insights on micro market demands, predictive analytics and matches property owners with suitable tenants and conducts risk assessments. The startup stands in competition with other startups like Ishtara, Stanza Living, Nestaway, Zolo, among others.

Commenting on the investment in GetSetHome, Zahan Mistry of Mistry Ventures, said, “GetSetHome’s technological and operational capabilities address key pain points for tenants and owners within the rental ecosystem. Their strength is their ability to use capital efficiently which they have demonstrated through the pandemic. This shows the resilience of their business model. With a strong leadership team in place, we are excited to partner with them in their next growth phase.”

Mistry Ventures was founded in 2018 by late Cyrus Mistry and is currently led by Ashish Iyer , the firm’s managing director. Mistry Ventures funds startups across various stages to aid their growth and scaling efforts. The venture capital firm has made investments in diverse sectors such as D2C, SaaS, agritech, among others.

Poised to be a $1 Tn opportunity by 2030, India’s proptech sector has seen remarkable growth, with coliving being one of the key drivers. Early players like NestAway, Zolostays and Coho, all launched in 2015, have been pivotal in harnessing technology for growth in this specialised market.

Investments in Indian proptech startups have also soared, with $4 Bn being raised between 2009 and 2022. For instance, since launch, Zolostays has raised a total of $98 Mn in funding, while Stanza Living has raised a total of $227 Mn. Meanwhile, NoBroker became the first unicorn in proptech after it raised $210 Mn in 2021.

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Direct-to-consumer (D2C) snacking brand Farmley has raised $6.7 Mn (INR 55.6 Cr) in a Pre-Series B funding round led by BC Jindal Group, with participation from existing investors DSG Consumer Partners, Omnivore and Alkemi Partners.

The New Delhi-based D2C brand will deploy the fresh proceeds for product innovation, diversifying distribution channels and amplifying brand building.

Founded by Akash Sharma and Abhishek Agarwal in 2017, Farmley offers dry fruits and nuts in different flavours and snacking formats such as roasted peri peri makhanas, thai chilli cashews and date bites, among others.

It is available on all ecommerce and quick commerce channels like Amazon, Flipkart, Blinkit, Zepto, Instamart and Big Basket. It is also present in over 10,000 retail outlets across 50 Indian cities and aims to deepen its presence across offline retail touchpoints.

The startup has also onboarded former Indian cricket captain Rahul Dravid as its brand ambassador.
It claims to have crossed the annual recurring revenue (ARR) of INR 300 Cr, growing by over 400% for the past two years. It has also turned EBITDA positive.

“This new round of investment brings us a step closer to our mission of becoming a household brand and contributing to a healthier world. These funds will play a pivotal role in fuelling our product innovation efforts, in diversifying distribution channels and in amplifying the brand-building efforts,” Sharma said.

“With the increasing awareness about health and wellness, consumers are looking for options that not only taste good but also provide nutritional value. This fresh infusion of funds will allow us to take our brand to new heights and reach a wider audience of snack enthusiasts,” Agarwal said.

Earlier in 2022, Farmley raised $6 Mn in its Series A funding round led by DSG Consumer Partners and Alkemi Growth Capital.

India’s D2C market is likely to reach a size of $100 Bn by 2025. According to Inc42’s analysis, while the beauty and personal care (28.6%) segment tops the D2C market in India, it is closely followed by the food and beverages (F&B)industry at 27%. The F&B segment is expected to grow to $68 Bn by 2030.

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IPO-bound ecommerce furniture startup Pepperfry posted a marginal decline in its net loss in the financial year ended March 31, 2023. The Mumbai-based startup’s net loss narrowed 3% to INR 187.6 Cr in the financial year 2022-23 (FY23) from INR 194 Cr in the previous fiscal year.

Founded in January 2012 by late Ambareesh Murty and Ashish Shah, Pepperfry sells a wide range of furniture and other home products through its website, ecommerce marketplaces, and offline stores. 

The startup’s operating revenue rose 10% to INR 272.3 Cr during the year under review as against INR 246.9 Cr in the previous fiscal year.  

Pepperfry primarily generates revenue from the commission it earns by connecting customers with the merchants on its website. The startup earned INR 241 Cr from this in FY23, an increase of 7.4% from INR 224.4 Cr in the previous fiscal year.

Including other income, Pepperfry’s total income stood at INR 290.3 Cr, a jump of 10% from INR 264.3 Cr in FY22

Where Did Pepperfry Spent?

The startup’s overall expenses increased 3% to INR 474 Cr from INR 458 Cr in FY22.

Procurement Cost: Being an ecommerce marketplace, the startup’s biggest expense was the procurement cost. It spent INR 282 Cr on procurement in FY23, an increase of 36% from INR 207.4 Cr in the previous fiscal year.

Employee Benefit Expenses: Pepperfry’s employee benefit expenses rose 6% to INR 86 Cr in FY23 from INR 80.9 Cr in the previous fiscal year. Employee costs include salaries, provident fund payments, gratuity, among others. The small increase indicates that the startup’s headcount didn’t see a big rise this year. 

Advertising Expenses: While ecommerce marketplaces are known for spending big on advertising, Pepperfry managed to bring down its marketing expenses in FY23. The startup spent INR 106 Cr on advertising in FY23, a decline of 18% from INR 129.8 Cr in the previous year.

Pepperfry raised $23 Mn from its existing investors, including institutional investors and family offices, in September this year. It has raised around $300 Mn across multiple rounds till date and counts the likes of Pidilite, Goldman Sachs, Bertelsmann India, and Innoven among its backers.

Unfortunately, its cofounder CEO Murthy passed away in August this year. Shah later took the CEO role.

The startup, which competes against the likes of Urban Ladder, has been preparing for its initial public offering (IPO) since early 2022. It even converted itself into a public entity in May last year. However, like many other startups, it postponed its plans to go public considering the slowdown in the equity markets last year.

The post Pepperfry’s FY23 Loss Narrows Marginally To INR 188 Cr, Sales Up 10% appeared first on Inc42 Media.

You’ve crafted the perfect ad campaign, traffic is flowing in, but the conversions? They’re just not happening. It’s a marketer’s nightmare, isn’t it? This scenario is all too common in the digital marketing world, where the focus is often heavily skewed toward creating ads and driving traffic.

The Overlooked Half of Marketing: Conversion Rate (CR)

While attracting users is a crucial part of marketing, it’s only half the battle. The real challenge, and arguably the most critical aspect, lies in converting these visitors into customers. It’s not just about bringing them to the platform; it’s about making them stay, engage, and ultimately, convert.

Key Questions for Effective Conversion

To enhance your conversion rate, consider these pivotal questions:

• Ad and Landing Page Harmony: Does your ad speak the same language as your landing page? Consistency in messaging is key to not lose the user’s interest.
• Meeting User Intent: Is your landing page addressing the user’s intent? Understanding and answering their needs can significantly boost conversions.
• User Actions: Are visitors engaging in the way you intended on your page? Analyzing user behavior can provide insights for optimization.
• Content Strategy for Different Users: How does your content cater to new versus returning users? Tailoring the experience can lead to better engagement and conversions.

The Competitive Edge Of A High-Converting Landing Page

In today’s market, a landing page or product that converts better is not just an asset; it’s a competitive advantage. It’s the difference between a potential customer and a loyal one. The focus should be as much on converting the traffic as it is on generating it.

Your Role In The Conversion Journey

As a marketer, your role is to guide the user through a seamless journey from the ad to the landing page, ensuring each step is aligned with their expectations and needs. It’s about creating a cohesive experience that not only attracts but also convinces and converts.

Let’s shift our focus and redefine marketing success not just by the number of visitors, but by the quality of conversions. Together, we can bridge the gap between traffic and conversions, turning potential into profit.

Looking forward to hearing your thoughts and strategies on conversion optimization.

The post Beyond Ads and Traffic: Learning The Art of Enhancing Conversion Rate appeared first on Inc42 Media.

What Are Flat Rounds?

Flat rounds refer to investment rounds in which a company raises capital at a valuation that is roughly the same as or very similar to the valuation it had in its previous funding round.

In other words, the company’s valuation remains relatively unchanged, resulting in flat or stable pricing for the company’s equity or securities.

What Is A Flat Round Investment? 

A flat round investment occurs when a company secures funding from investors without a significant increase in its valuation. The investment amount and terms may change, but the company’s value remains relatively stable compared to the previous funding round.

Flat rounds can occur for various reasons such as when a company is in a challenging market or facing difficulties that are preventing it from commanding a higher valuation.

What Is An Example Of A Down Round?

A down round is a funding round in which a company raises capital at a lower valuation than it had in a previous round. For example, if a startup raised $10 Mn at a valuation of $50 Mn in its Series A round but later had to raise additional funds at a valuation of $30 Mn in its Series B round, the Series B round would be considered a down round.

However, in an up round, a company raises capital at a higher valuation than it had acquired in a previous funding round. 

What Are Private Rounds?

“Private rounds” typically refer to fundraising activities conducted by private companies that are not publicly traded on stock exchanges. In private rounds, companies seek investment from private investors or institutional investors, and these rounds often involve the sale of equity, debt, or other securities to raise capital.

Private rounds are a common method for early-stage startups and private companies to secure funding for growth and expansion.

What Are The Benefits Of A Down Round?

Down rounds are generally not viewed as beneficial for a company or its existing shareholders because they indicate a decline in the company’s valuation. However, there are potential reasons why a down round may be pursued or considered advantageous in certain situations:

Survival: A down round can provide a company with much-needed capital to survive and continue operations when facing financial challenges.

Attracting New Investors: A down round may attract new investors who see the company as undervalued and are willing to invest at a lower price, potentially leading to future gains.

Reset Expectations: A down round can help reset expectations and make the company’s valuation more realistic, which may lead to a stronger foundation for future growth.

Reducing Overvaluation: In some cases, down rounds can correct previous overvaluations, bringing a company’s valuation more in line with its true market value.

The post Here’s Everything You Need To Know About Flat Rounds appeared first on Inc42 Media.

It’s been a tale of two halves for PhonePe in 2023. But now at the end of the year, it would seem the stage is set for the fintech giant’s biggest onslaught so far.

If the first half of the year was all about getting armed for the battle with nearly $1 Bn in funding, the rest of it was about showing what it plans to do with all that money, with several new products ranging from lending to insurance to app development and digital commerce.

But beyond the announcements and the fundraises, PhonePe is perhaps signalling to the Indian tech ecosystem that this is its time.

To put things in context, the company has raised nearly 10% of all funding raised by Indian startups this year. Naturally, there’s a feeling that PhonePe is growing too big to fail, and many compared it to how Walmart gave Flipkart some much-needed impetus in 2017 and 2018 post the acquisition by the US retail giant and subsequently multiple rounds of capital infusion.

“This is what catapulted Flipkart in 2018 towards its current status as the de facto ‘Indian’ ecommerce player, and now it’s PhonePe’s time to grow into its valuation,” a CXO at a Bengaluru-based fintech unicorn told us.

Indeed, it’s hard to escape PhonePe in Bengaluru where it’s the default payments app and its soundboxes and point-of-sale devices are ubiquitous at most small merchants — whether roadside vendors or bakeries.

Such is the dominance of PhonePe in its hometown that spotting a Paytm soundbox or any other rival comes as a surprise. But it would be wrong to think that this is PhonePe’s endgame.

As we have seen throughout this year, PhonePe has much bigger plans. It has the capital, the key personnel and the burgeoning product line-up to bank on. The year has almost come to an end, but PhonePe’s era is just beginning.

With new products in lending, insurance and tax payments on the core PhonePe app, as well as separate apps for ecommerce (Pincode) and investment tech (Share.Market), PhonePe is gearing up in a big way for 2024. Even though some of these products are uncharted territory for PhonePe, it has the resources to succeed in these new areas.

In many ways, 2023 was about setting the stage for this completely new vision. Now as PhonePe prepares for a potential initial public offering (IPO) in 2024-2025, it’s important to understand where the company finds itself at the end of the year.

Recapping PhonePe’s 2023

It all started in late 2022 with the separation from Flipkart and redomiciling to India. This was a critical first step in the plan, which came with a huge tax bill for many of PhonePe’s investors.

The INR 8,000 Cr tax outlay seems like a huge expense, but it was a necessary step to bring PhonePe to India and ensure that the big product plans are not derailed by corporate structures.

Even beyond the tax bill, there was more confidence from investors when they poured millions into the fintech decacorn. The funding spree was led by Walmart, General Atlantic, Ribbit Capital, TVS Capital Funds and others. The plan was to raise $1 Bn, but  PhonePe managed to secure $850 Mn.

PhonePe had its war chest ready and soon after came a flurry of new products that have changed the company considerably and given observers a thing or two to ponder upon.

In April, it launched Pincode, an ONDC-integrated digital commerce app, followed by merchant lending services in June. Then came a new point-of-sale device for UPI and cards, income tax payments and health insurance products in July.

In August, we saw the introduction of Share.Market, a separate product for investments and stock broking, and finally the formal launch of the Indus Appstore in September.

Interestingly, with the last of these product launches, PhonePe is not just a fintech app any more. And indeed Indus Appstore holds plenty of potential for PhonePe in the long run.

A New Trump Card: Indus Appstore

In March, we said that PhonePe wants to be Paytm, but that comparison seems off the mark given the launch of Indus Appstore, which promises to be another lucrative long-term revenue stream.

The app store is an alternative to Google Play on Android, and PhonePe’s investment and acquisition was finalised soon after the Competition Commission of India ruled to allow third party app stores on Android devices.

So the more we think about what PhonePe is doing at the end of 2023, the more we wonder whether the Walmart-owned giant is indeed more than a fintech platform.

With 500 Mn lifetime registered users and 37 Mn+ merchants on its platform, PhonePe is poised to press ahead on other fronts besides payment and fintech.

The Indus Appstore product is unmatched by PhonePe’s primary competition such as Paytm, CRED or Groww. While these are also fast building up platform plays around multiple products, PhonePe’s Indus Appstore could be the trump card in the revenue race.

For context, in-app spending is forecast to reach $182 Bn by 2024 and $207 Bn in 2025, according to research firm Sensor Tower. Consumers are said to have spent $132 Bn in 2021, so the projected figures for 2024 represent nearly 40% growth in two years.

Google will get about $10.3 Bn in revenue from app sales and in-app purchases from the Play Store globally in 2023, according to a Time report. In this context, it’s easy to see why PhonePe has invested heavily in an app store. More importantly, Indus does not have Google’s stipulations around commissions and billing policy.

The likes of MPL, Dream11, Nazara, A23, Gameskraft and others have already come on board the Indus Appstore thanks to its zero commission policy. Plus, Indus Appstore is available in 12 Indian languages, which is also expected to be a major competitive advantage against Google and Apple.

While zero commissions have added to the initial attraction for Indus Appstore, PhonePe is likely to add commissions in the future to make this a veritable revenue source.

Both Google and Apple have been hit by antitrust cases in the US and India in relation to their app store policies. It’s the perfect entry point for PhonePe. PhonePe’s marketing machine has also stepped on the accelerator in recent times to show that it has the user base to capitalise.

The PhonePe-Verse 

“PhonePe is living up to its name. It wants to be everything on your smartphone, from the app store to financial services to digital commerce and more. The Indian market is fast maturing and this is perhaps the best time for a super app or platform play,” says the founder quoted above.

It is impossible to look at PhonePe’s year, without seeing the similarities with the competition that is on a comparable scale. The super app movement or the convergence of financial services is a clear theme emerging in 2023.

For several years, it was believed that Indian apps could replicate the success of super apps such as WeChat, Grab or Gojek in China and Southeast Asia.

But while the likes of Paytm tried this in the past, the strategy did not succeed fully due to a lack of market depth and consumer maturity. Even as late as 2021, Paytm bemoaned the fact that the platform model was not well understood by retail investors.

But times have changed and now the Indian market is looking like a better bet for super app players. Let’s look at two key pieces in PhonePe’s armoury in this battle — ecommerce and investment tech.

ONDC’s New Wings

Built on ONDC, the Pincode app was launched in Bengaluru in April where it has already delivered over 1 Lakh orders as of July 2023, and PhonePe has expanded to Delhi NCR, Mumbai, Chennai, Hyderabad, and Pune, among other cities.

ONDC has become the crutch for non-ecommerce players to scale up their digital commerce footprint quickly.

Take for instance, Paytm Mall, which was once a unicorn, but has faded into the background in comparison to marketplace giants Flipkart and Amazon India. Today, Paytm’s digital commerce business also hinges on ONDC, just like PhonePe’s Pincode.

CRED is relying on a highly curated marketplace approach, while Google Pay is playing the aggregator game. PhonePe’s dedicated app is an interesting approach in this space and unlike any other player in the super app race.

A company spokesperson told us, “The initial response and rapid consumer adoption of Pincode has given us the confidence to expand our services. We are fully committed to championing local sellers and delivering an exceptional shopping experience to our consumers.”

The company added that it will be investing heavily to expand to more cities and into more categories, including medicines, fashion, and electronics to become a full-fledged ecommerce app.

Entering The Investment Fray

The other big piece of the puzzle is Share.Market, which PhonePe has sequestered from its core business as is standard practice. Even though it’s a separate app with a stockbroking licence, Share.Market’s revenue growth will be a key contributor to PhonePe’s business in the long run.

The revenue model for stock broking is relatively straightforward as platforms take a cut on trades and transactions. With the right scale, profitability is not a long shot either.

Fellow Bengaluru fintech unicorn Groww reached profitability in FY23 thanks to its growing user base and today has more than 6.63 Mn+ active investors.

This makes the company the biggest discount brokerage by clients in India. PhonePe would be betting that its existing user base of 200 Mn+ monthly active users can help it leapfrog Groww, Zerodha and others.

At the scale that PhonePe operates on, even an incremental increase in the volume means tens of millions more revenue-generating transactions. For instance, Paytm Money turned profitable in FY23, posting a net profit of INR 42.8 Cr and bounced back from a loss of INR 10.7 Cr in FY22, helped by steadily growing brokerage income.

A PhonePe spokesperson added that in the past two years, the company has seen a huge increase in adoption from Tier III  and IV cities and beyond when it comes to payments and other in-app services.

And now is the time to press the accelerator on other products that are tied into the payments core. PhonePe said it registered INR 2,914 Cr as revenue on a consolidated basis in FY23, but the company did not reveal whether it has managed to bring its losses down from the INR 2,013 Cr it reported in FY22.

What we do know is that PhonePe has reached a $1.3 Bn in lifetime total payments value, according to Walmart CFO John David Rainey. Will this translate into profits in the next year?

Where Will PhonePe Go In 2024?

Revenue from the investment tech business will likely contribute in a major way towards bringing the consolidated business towards the black. But other parts of the PhonePe empire will also be key to getting out of the loss-making streak.

It’s interesting that the new products at PhonePe are grabbing a lot of the interest internally from the company, but let’s not forget that PhonePe’s fintech services primarily hold the key for the turnaround.

Merchant services — lending and device subscription — is likely to be a crucial piece. PhonePe is gearing up to roll out consumer lending services on its platform by January next year. Marking its foray into the consumer lending space, Walmart-backed company is likely to operate initially as a distributor for personal loans.

“The Indian market has seen a lot of maturity in 2023. The most active and habituated fintech customers have become familiar with digital-first financial services, and we believe the opportunity is rich for platforms to accelerate the process of unlocking the flow of money and access to services,” the company spokesperson added.

PhonePe’s trajectory is very similar to Paytm, even if there are many differences in strategy. The scale of both companies is similar in terms of the users, and they have got the market timing right on a number of new products. But Paytm is still a long way away from PhonePe in terms of revenue — INR 7,990 Cr for the listed giant vs INR 2,914 Cr for PhonePe.

For PhonePe, 2024 will be about not just proving its thesis around the platform play, but also utilising its deep pockets to grow sustainably and show profits by the end of the year. This is a critical juncture for the company.

Several startups seemed to have cracked the profitability question in FY23 and many of them did not have the luxury of having raised $850 Mn in the year. PhonePe is like royalty in that sense, but even empires face pressure eventually, even when they have a large war chest.

Funding is not a guarantee of success. PhonePe has the right tools and the stage is set, can the fintech giant make something of it in 2024?

The post PhonePe’s Billion-Dollar Year: A War Chest To Fight Super App Wars appeared first on Inc42 Media.

The Indian fintech landscape has been in a phase of rapid growth supported by new and sector-first tech innovations and thriving consumer/business demands. The total addressable market for Indian fintech is expected to reach $2.1 tn by 2030. 

In fact, the Economic Survey 2022-23 states that, India has the highest fintech adoption rate of 87% among the public, compared to a global average of 64%. These growth matrices testify India is one of the most innovative players in the fintech world. 

As a country that is enabling and empowering the unbanked and underserved population, India has a growing tech-savvy generation, a high number of enterprises as well as small businesses with inclusive financial services. Digital Payments, as a sector, has been essential in spearheading this revolution. 

While this upward trend is definitely boosting our economy, it also comes with certain vulnerabilities and challenges. In 2022, India encountered approximately 7 lakh cyber or malware attacks, ranking 10 among the nations that witnessed such attacks, with the finance sector being the most susceptible. 

In light of this, it is imperative to stay ahead of evolving breaches and vulnerabilities. This can only be done by consistently building, enhancing and addressing security aspects of fintech products and solutions.  

Innovative Security Measures Driving Digital Transactions 

Today, building and continuously strengthening the ecosystem for safe and secure digital transactions is non-negotiable. In fact, it is good to see the consistent progress in safeguarding customers/businesses through government initiatives, policies and regulations, and advanced tech innovations. 

For instance, the shift towards a risk-based KYC approach, particularly prioritizing higher-risk merchants, is a significant step towards enhancing the security and efficiency of the e-KYC process. 

This year’s Union Budget’s emphasis on this strategic shift indicates a proactive approach to risk mitigation, which is commendable. Similarly, Indian fintech companies are making significant strides by harnessing evolved technologies like contactless payments and tokenisation to protect sensitive information as well as prevent data exposure. 

Overall, the right government support and regulations will help foster a more robust and secure fintech ecosystem. Perhaps, a government-funded open-source infrastructure solely for security purposes that can be integrated into other software and platforms can help boost this further.

Payments Aggregators As Security Guardians 

Payment aggregators (PAs) have emerged as key players between merchants and the complex network of banks and payment gateways, simplifying transactions for both parties. As this particular type of intermediary, PAs have become synonymous with seamless and secure transactions because of robust security measures including encryption, tokenisation, and fraud detection algorithms. 

Besides protecting merchants and consumers from potential financial loss, PAs have also bolstered the market’s confidence in digital transactions, driving a swifter adoption of cashless payments. 

PAs leverage nuanced AI/ML integrations, which have demonstrated remarkable success in payment security. AI-powered fraud detection assists in identifying and preventing fraudulent transactions, leading to substantial reductions in financial losses and improved customer trust. For instance, AI algorithms can identify unusual spending patterns, detect unauthorised account access attempts, and analyse large-scale data breaches to proactively safeguard user accounts. 

Also, it can assist merchants in identifying fraudulent orders and preventing chargebacks, ensuring secure and seamless payment experiences for customers. The utility of such systems will certainly witness requisite refinements, creating robust and intelligent solutions to combat evolving security concerns.

This imperative is also attracting much-needed regulatory attention. For example, this June, the RBI rolled out Draft Master Directions on Cyber Resilience and Digital Payment Security Controls for payment system operators (PSOs) – making this another positive intervention for all stakeholders to enhance security control. 

The Roadmap Of Security Evolution 

The Indian fintech sector has drawn in investments exceeding $25.8 bn since 2014, leading to the creation of 22 unicorns and 33 soonicorns. Our country has a significant R&D advantage to combat cyber fraud and malware. 

As a matter of fact, India is among the very few nations that protect digital payment users with a two-factor authentication process. Along with government-backed initiatives, multiple stakeholders are making great efforts to ensure absolute cybersecurity in the world of finance. 

Interestingly, the unprecedented collaboration among fintechs, government bodies and regulators, collectively working to devise resilient solutions, distinguishes the current landscape from preceding years. Innovations such as next-gen firewalls, vulnerability management, and Secure Access Service Edge (SASE) are thriving in our country, inspiring new talent and international markets. Other technologies, such as Extended Detection and Retention (XDR), also take root in India from global markets. 

As the sector continues to innovate, digital payments will continue to further fuel the growth of our economy – offering convenience, efficiency, and inclusion. The Indian fintech space, dominated by the progress of digital transactions, has set precedence for other international markets to follow. 

This progress has put us on the map for its level of accessibility, interoperability and secure robust infrastructure, making us a critical innovation hub in APAC while expanding our financial inclusion programs to Europe and the rest of the world.

The post Security As A Lens For Navigating The Future Of Digital Payments appeared first on Inc42 Media.

India is the world’s third-largest startup ecosystem, with over 3000 deeptech businesses centred on high-tech inventions or scientific advancements in fields such as artificial intelligence and machine learning, big data analytics, IoT, blockchain, and more. 

These firms are expanding into disciplines such as agriculture, life sciences, chemistry, aerospace, and green energy, with the goal of reshaping industries through innovative technology solutions. 

The National Deep Tech Startup Policy (NDTSP) is a game-changing effort launched by the Government of India to guide innovation, generate economic growth, and promote societal development for such startups. 

The strategy seeks to foster innovation by offering incentives such as tax reductions for businesses and encouraging venture capital investments. 

Foundational Elements And Prospects

The NDTSP Consortium released the draft policy on July 31 for public consultation, seeking feedback from market stakeholders till September 15. The policy was drafted after extensive consultation with end-users and stakeholders in the deeptech startup ecosystem to identify the existing challenges and priority sectors. 

Investors, incubation centres, academia, and individuals and organizations were consulted through thematic focus group discussions and virtual consultations. The draft NDTSP 2023 at present is a strategic and well-thought-out policy aimed at fostering the growth and sustainability of deeptech startups. 

It aims to help startups overcome challenges relating to funding, access to the right talent, and scaling their research and development operations. 

The policy outlines a vision for the Indian deeptech startup ecosystem, encompassing four key pillars: 

• Securing India’s economic future
• Progressing towards a knowledge-driven economy
• Bolstering national capability and sovereignty through the Atmanirbhar Bharat imperative, and 
• Encouraging ethical innovation

Some of the key foundational elements of the policy are as follows – 

Funding and innovation: The strategy attempts to give financial assistance to deeptech firms through a variety of means such as grants, loans, and venture capital. It also aims to foster innovation by simplifying regulatory processes and encouraging collaboration between academia and industry. 

It suggests measures such as a centralised platform, fiscal incentives, specialised financial instruments, and technology impact bonds all aimed at boosting the growth and sustainability of deeptech business. 

It also recommends expert panels for economic evaluation and cooperative funding options to enhance technical infrastructure, thereby optimising funding for select startups. 

Talent development: Recognising the importance of human resources in the deeptech sector, the policy promotes steps to cultivate a skilled workforce. This includes promoting STEM education, offering training possibilities, and attracting international talent.

Access to advanced infrastructure and technology: The strategy emphasises the importance of deeptech startups having access to advanced infrastructure and technology. It suggests that deeptech incubation centres and testing facilities be established across the country, it also emphasises strengthening the existing tie-ups with IIT and IISc, etc to provide shared infrastructure resources at nominal fees. The policy also provides for the creation of domain expertise for data interpretation through a fee service model as well as network standardisation and field test sites to further facilitate testing of deep-tech startups. 

Public procurement and market opportunities: The strategy pushes government agencies to embrace deeptech solutions and opens up new markets for businesses as well as become the first market for such deeptech startups. It also encourages international cooperation and market access.

Intellectual Property (IP) protection: The policy recognises the necessity of IP protection for deeptech businesses. It suggests the establishment of a uniform IP framework and the implementation of strong cybersecurity measures. It further aims to support deeptech startups by building in-house capabilities and granting government-purpose rights for strategic technologies. 

In Conclusion

In essence, the NDTSP emerges as a beacon guiding the trajectory of India’s deeptech startup landscape, laying the groundwork for a future where technological innovation propels the nation to new heights on the global stage. 

As the policy moves from a draft to implementation, its success will be measured by the tangible impact it has on startups, the depth of innovation it fosters, and the positive transformation it brings to India’s economic and societal fabric. 

The NDTSP seeks to democratise the benefits of deeptechnology by making them available to all levels of society. Through the effective use of deeptech research-driven breakthroughs, the strategy is deliberately structured to boost innovation, spur economic growth, and promote societal development.

The post Decoding The National Deeptech Startup Policy appeared first on Inc42 Media.

After a troublesome 2022, when the Meta stock hit a low of $90, the company has bounced back strongly, surging as much as 271% on the US stock exchange this year, as of December 15. 

While the tech giant saw a revival on the back of stronger-than-expected financial results for the company’s second quarter of 2023, the exceptional performance of the company was anchored in various tailwinds, including a suitable growth environment in the home country, improving market sentiment, and aggressive cost-cutting, just to count a few.

However, in stark contrast, the company’s India stay was not very comfortable during the year, as it had its fair share of fires to douse on the regulatory front. 

While regulatory bottlenecks were one of the recurring peeves for Meta’s operations in the country, the social media major was time and again cornered by Indian courts and law enforcement agencies for failing to keep a check on notorious elements, such as deepfakes and misinformation, doing rounds on the platform.

During the year, Indian authorities also unearthed an alleged INR 10,000 tax fraud involving Facebook sellers. Meanwhile, weak global cues forced Meta to cut corners, resulting in an undisclosed number of mass layoffs at its India office. 

Amid all this, the company also grabbed headlines after some of its shareholders mounted an offensive for its alleged bias in India operations. 

Notwithstanding the challenges, 2023 also turned out to be the year during which Meta kicked into motion a full-scale monetisation plan with Meta verified and a slew of offerings for merchants. The Indian arm continued to rake in hefty revenues while the ad business saw considerable growth in the country. 

However, despite gaining a huge response at the outset, its much-touted new launch ‘Threads’ turned out to be a dud. For the uninitiated, Threads is Meta’s answer to X and is focussed on textual conversations, rather than visual media. 

As we approach the end of 2023, let’s steal a glance at the journey of the social media juggernaut in India this year.

Meta’s Sabre-Rattling With The Govt Continued In 2023

The Mark Zuckerberg-led company found itself roiling in a bevy of regulatory challenges throughout the year. As the Centre undertook a flurry of reforms in the form of the Digital Personal Data Protection Act and the new IT Rules, Meta found itself burdened with additional compliance requirements and mandates.

The adverse regulations also made the company liable for hefty fines and opened Meta to potential lawsuits if users’ grievances went unresolved. With little wriggle room under the new laws, the fear of losing safe harbour protections sent alarm bells ringing for the social media behemoth. 

“While the exact impact of the Digital Personal Data Protection (DPDP) Act is yet to be seen, there might be some implications on the storage and transfer of data of Indian subjects.  This might have more of an implication for Meta as their tech implementation might have to significantly change,” identity verification platform IDfy’s chief executive officer (CEO) Ashok Hariharan told Inc42.

What also proved to be a major headache for the company were the large number of content take-down requests by the Indian government. The country emerged as the second biggest source of government requests to Meta in the first half of 2023, second only to the US. 

Between January and June 2023, Indian authorities issued 70,612 requests, of which 63,586 were legal process requests while the remaining were ‘emergency disclosure requests’. 

Curiously, Meta’s worst hit arm in India appeared to be WhatsApp, which found itself at the centre of many regulations. A Competition Commission of India (CCI ) probe into WhatsApp’s 2021 privacy policy case continued to be in limbo. 

As if these issues were not enough, generative AI became a cause of concern for Meta. The deepfake controversy, involving actor Rashmika Mandanna, saw Facebook at the centre of enforcement action as authorities issued notices to the company to act on synthetic content and reveal information about the origins of the post. 

A Long List Of Troubles For Meta India

Amid a tussle with government authorities, Meta also found itself in the middle of other controversies that grabbed negative headlines throughout the year. 

A case in point is the consultation paper floated by the Telecom Regulatory Authority of India (TRAI), which explored the idea of bringing OTT communication apps under the regulatory ambit and selective banning of such apps. 

The aftermath triggered a full-blown war with telcos and startups as telecom operators pitched for a revenue-sharing framework with OTT platforms based on network traffic as a parameter. The proposed move directly strikes at the heart of Meta as it consumes a major chunk of telecom bandwidth domestically. 

Making matters worse was the surge in pesky job calls to WhatsApp’s India users from international mobile numbers. The controversy made the government crack its whip on Meta yet again. Subsequently, 66,000 WhatsApp accounts and 8 Lakh payment wallets were deactivated.

WhatsApp also continued to face outages in the country. Meanwhile, one of the major issues that shook Meta in India came from an unlikely place – its own shareholders. Some of the company’s stakeholders moved a proposal to probe alleged biases in Meta’s India operations and sought an assessment of the same. 

While the proposal was eventually vetoed, this added a new dimension to the already reported allegations that Meta favoured the ruling party. 

Meta’s Sob Story Of Leadership Exodus & Layoffs 

One of the biggest issues that gripped Meta India during the year was layoffs, as the company reportedly fired 400-450 employees in the country.

Even senior executives were not spared by the company as part of its restructuring drive. The company’s director of marketing, Avinash Pant, and director and head of media partnerships, Saket Jha Saurabh, were unceremoniously shown the exits as part of the exercise.

Curiously, just before the layoffs commenced, director and head of partnerships, Manish Chopra, put in his papers.

Meta Ramps Up India Push

Amid all these, the company undertook a slew of new launches in the country as it began to vociferously monetise its offerings. Following the footsteps of its peer X (formerly Twitter), Meta began rolling out its ‘Meta Verified’ service in India in June 2023 to build alternative revenue streams in the country.

It also announced a slew of business-focussed features on WhatsApp to tap into the B2B ecosystem.

On the financial front, Meta India continued to witness healthy growth, although the economic downturn slowed down the momentum. The Indian arm of social media major, Facebook India Online Services, recorded a net profit of INR 352 Cr in FY23, up 19% year-on-year (YoY), against gross advertisement revenue of INR 18,308 Cr, up 13% YoY.

To fuel its operations and build goodwill with the Centre, the company also announced several partnerships and accelerator initiatives with the government to mentor Indian startups, especially in emerging areas such as mixed and extended reality.

Meta In 2024: Gazing Into The Crystal Ball

With more digital laws expected to be promulgated in India in 2024, the company could be headed down a rough road as it looks to balance growth with regulations.

“If GDPR (General Data Protection Regulation) repercussions are anything to go by, India and Indian laws might have similar implications for Meta.  A case in point being the DPDP Act which, just like GDPR, has a requirement on the use of data from minors. Given that there are roughly 500 Mn Indians below the age of 18, it opens up a lot of exposure for Meta if they’re not compliant with the new law,” added IDfy’s Ashok Hariharan.

Meanwhile, emerging challenges such as GenAI could put a spanner in the works for the company even as compliance demands surge from authorities.

Notwithstanding this, India continues to be one of the biggest markets for Meta globally, accounting for more than 1 Bn users across three apps — Facebook, Instagram and WhatsApp. 

Walking on a regulatory tightrope in India, Meta’s India journey so far this year has been both bitter and sweet. Now, with global headwinds expected to ease and consumption likely to surge next year, Meta could put its Indian ambitions in full throttle in 2024. 

The post On A Regulatory Tightrope: Here Is How Meta India’s Odyssey Unfolded In 2023 appeared first on Inc42 Media.

What Is Anti-Dilution Protection?

Anti-dilution protection is like a safety net for investors. It is often included in investment agreements, especially in venture capital financing, to protect the rights of earlier investors in a company when new shares are issued at a lower price than the previous investment round.

It aims to prevent the dilution of the ownership stake and economic interests of existing investors in case of a down round.

The following are some of the examples of anti-dilution provisions:

• Full Ratchet Anti-Dilution: If new shares are issued at a lower price than what an early investor paid, the investor’s shares are adjusted downward to match the new lower price.
• Weighted Average Anti-Dilution: This method takes into account the number of new shares issued and the price at which they are issued, resulting in a less severe adjustment to the investor’s shares compared to the full ratchet.
• Broad-Based Anti-Dilution: It’s a more investor-friendly method that considers not only common stock but also convertible securities like stock options and warrants in the anti-dilution calculation, providing better protection to investors.

How Do You Protect Against Dilution Of Shares?

To protect against dilution of shares, you can:

• Invest in securities with anti-dilution provisions like preferred stock or convertible notes.
• Negotiate for stronger anti-dilution terms in your investment agreement.

What Does Anti-Dilution Protection Mean For Minority Shareholders? 

Anti-dilution protection ensures that any investor, regardless of their ownership percentage, is protected from losing value in their shares when the company issues additional shares at a lower price.

This protection maintains fairness and transparency in the ownership structure, benefiting all shareholders, not just the majority.

How Anti-Dilution Is Different From Preemptive Rights?

Anti-dilution and preemptive rights are both methods to protect existing shareholders from losing ownership when a company issues new shares. The key difference is in how they achieve this:

Anti-Dilution

• Protect existing shareholders’ ownership when new shares are issued at a lower price.
• Adjusts share price or the number of shares held by existing shareholders after new shares are issued.
• Full Ratchet and Weighted Average Anti-Dilution.
• Common in convertible securities such as preferred stock.

Preemptive Rights

• Allow existing shareholders to buy additional shares before others, maintaining ownership.
• Grants existing shareholders the right to purchase more shares before they are offered to others.
• Commonly referred to as Preemptive Rights.
• Often found in company bylaws or shareholder agreements.

The post Here’s Everything You Need To Know About Anti-Dilution Protection appeared first on Inc42 Media.

In the ever-evolving realm of finance, where data reigns supreme, a groundbreaking paradigm is reshaping the landscape for fintech companies. The convergence of two transformative technologies, Artificial Intelligence (AI) and Data Lakehouse, stands as a powerful force revolutionising how financial institutions harness the potential of data.

Gone are the days of traditional data warehousing solutions grappling with scalability challenges and fragmented data silos. Today, fintechs face the imperative need to integrate unstructured data, generate real-time insights, facilitate segmentation, and employ predictive analytics capabilities to navigate the dynamic financial markets. 

Enter the Data Lakehouse – a unified data platform poised to redefine how financial data is managed and analysed.

At its core, the Data Lakehouse harmonises the expansive storage capabilities of data lakes with the structured querying power of data warehouses. This fusion grants the flexibility to work with any type of data without the risk and complexity involved in copying and moving data around. 

You can directly interact with the data, whether it’s structured, unstructured, or semi-structured, within the data lake. A transaction layer operates between the data in your lake and the tools used for business intelligence, reporting, data science, machine learning, and other types of analysis. 

This liberation from data silos provides fintechs with a holistic view of their operations, crucial for making informed decisions in near-real time.

A Data Lakehouse isn’t just about consolidation; it’s a game-changer. It slashes infrastructure costs by breaking data silos, reducing computation costs of data transfers, and streamlining data management. 

This unified setup doesn’t merely grant access to extensive data and varied workloads in one spot; it unlocks endless possibilities beyond traditional analytics, empowering advanced applications like machine learning, data science, and even integrating with LLMs. 

This opens up the opportunity to deploy advanced solutions such as fraud detection Systems, Recommendation Engines for tackling delinquencies, quicker creditworthiness assessments, risk summaries for underwriters, and AI-augmented marketing campaign strategies, among many others.

Moreover, this union fortifies data security and compliance, ensuring continuous monitoring, anomaly detection, and proactive measures against potential breaches. As the financial industry navigates evolving regulations and data security challenges, the AI-driven Data Lakehouse stands as a fortress safeguarding sensitive financial information.

Most fintechs heavily rely on data to run their operations, but every organisation’s data landscape is unique. Determining if a data lakehouse suits specific needs depends on several indicators:

• Does your organisation ingest multiple types of data, such as text, images, video, audio, clicks, sensor data, or log files?
• Do you need to ingest data in real time but are currently limited to batch loads?
• Does your organisation acquire data from external (third-party) providers?
• Is deploying data science and machine learning for new use cases a challenge?
• Is your organisation burdened with disparate data silos, leading to frequent data duplication or movement?
• Does data transformation and analysis take longer than desired?
• Are manual methods or spreadsheets still predominant for data organisation?
• Do issues with outdated or duplicated data impact decision-making?

If your organisation is grappling with these challenges, then a Data Lakehouse could yield significant benefits. This synergy between AI and the Data Lakehouse signals just the beginning of FinTech’s transformation. With evolving AI models and advancing Data Lakehouse frameworks, anticipate deeper insights, fortified security, and seamless scalability. It marks an unprecedented era of data innovation.

In the intricate web of financial data, the fusion of AI and the Data Lakehouse emerges as an innovation beacon. For fintechs navigating a data-rich landscape, this fusion isn’t just a strategy; it’s imperative for sustained success. As technology evolves, the AI-driven Data Lakehouse shapes the future of data analytics, empowering fintechs to flourish in a changing financial terrain. This synergy heralds a new era of possibilities, where data becomes not just a tool but a guiding force propelling fintechs into the future.

The post Empowering Fintechs: How AI And Data Lakehouse Is Redefining Data Dynamics? appeared first on Inc42 Media.

As we edge closer to 2024, Indian startups are navigating through a transformational era marked by a global funding slowdown. The path to success isn’t about riding the wave — it’s about creating your own.

With a firm gaze on the horizon, here’s a pragmatic strategy for Indian entrepreneurs aiming to chart a course to triumph in the coming year.

Embrace Pragmatic Innovation

Innovation is the cornerstone of a startup’s ethos, but in 2024, it’s imperative that this innovation is pragmatic. Innovate with purpose and clarity to address genuine market gaps.

Startups that tailor their innovation to solve concrete problems will stand out to investors and build a dedicated user base.

Strategise For Sustainability

In an era of cautious capital, the startups that demonstrate sustainable growth and prudent financial stewardship will attract the right kind of attention.

Plan with an eye on long-term viability — profitability isn’t just an objective; it’s a necessity for securing investment and ensuring survival.

Data-Driven Decisions

With market volatility, data remains the most reliable source of truth. Let 2024 be the year where every strategic move is backed by solid data — focusing on metrics that directly correlate with your business health and customer satisfaction.

Lean Operations, Maximum Impact

Lean is in. Efficient, nimble operations that maximise output while minimising waste will be the gold standard in 2024.

Embrace technologies and methodologies that enhance productivity and ensure that every resource is optimised.

Foster a Resilient Culture

Culture will dictate resilience. Invest in building a team that’s flexible, innovative, and deeply connected to your startup’s mission.

A resilient culture attracts talent, fosters innovation, and sustains you through economic headwinds.

Your 2024 Roadmap: A 5-Point Checklist

• Define Your Value Proposition: Sharpen the articulation of what sets your startup apart. Your value proposition should resonate with your audience and clearly communicate the unique benefits of your product or service.
• Prioritise Profitable Growth: Craft a business model that balances growth with profitability. This should involve optimising your cost structure and focusing on revenue streams that promise long-term returns.
• Cultivate Data-Driven Culture: Foster a culture where decisions are made on insights derived from data, not intuition. Ensure that your team understands and utilises data to drive the startup forward.
• Adapt to Market Dynamics: Stay agile and be prepared to pivot strategies as market conditions change. Adaptability will be crucial in responding to new opportunities and challenges.
• Invest in Talent: Align your hiring strategy with your growth ambitions. Look for individuals who are not just skilled but also adaptable and capable of thriving in a dynamic startup environment.

In Conclusion

The upcoming year presents a unique set of challenges and opportunities for Indian startups. The startups that will rise to the top in 2024 will be those that have ingrained a culture of innovation, strategic sustainability, and operational agility into their DNA. 

The future belongs to those who can navigate the complexities of the market with a flexible, data-driven approach, delivering value that resonates with customers and sustains the business through every cycle.

The post Unlocking Startup Success In 2024: Strategies, Statistics, And Plannings appeared first on Inc42 Media.

Indian new-age tech stocks witnessed a revival this week, helped by the bull run in the broader market.

Thirteen out of the 19 new-age tech stocks under Inc42’s coverage gained in a range of 1% to 15% this week. Tracxn Technologies emerged as the biggest gainer, with its shares rising 14.8% during the week.

Yudiz, Yatra, Nazara Technologies, RateGain, Zaggle, and Zomato were among the other stocks which witnessed a northbound movement. Meanwhile, RateGain has now almost touched $1 Bn in market capitalisation following this week’s surge of almost 7%.

On the other hand, Paytm continued its slump, falling over 7% this week. Delhivery also declined a little over 7%, while PB Fintech and Fino Payments Bank fell over 3% each this week.

ideaForge and MapmyIndia declined 0.6% and 1.3%, respectively.

In the broader market, benchmark indices Sensex gained 2.4% to end the week at 71,483.75 while Nifty50 rose 2.3% to 21,456.65.

Prashanth Tapse, senior VP (research) at Mehta Equities, said, “There is a lot of enthusiasm amongst the investors, especially foreign investors, who are pumping in funds into domestic equities over the past few weeks post the state election results. Political stability and hopes of continuation of reforms going ahead, coupled with the US Fed’s dovish stance on rates, falling bond yields and sliding crude oil prices, has improved the sentiment.” 

However, Tapse believes that the benchmark indices could consolidate in the near term as they are in the overbought zone on the technical charts. 

Dr. Joseph Thomas, head of research at Emkay Wealth Management, also said that some consolidation around the current levels is expected in the near term. 

Now, let’s take a look at the performance of some of the major new-age tech stocks this week.

The total market capitalisation of the 19 new-age tech stocks under Inc42’s coverage stood at $38.48 Bn at the end of this week as against $38.35 Bn last week.

SoftBank Dumps PB Fintech Shares

After selling stakes in Zomato last week and Delhivery last month, SoftBank offloaded a significant portion of its remaining stake in the fintech major PB Fintech.

SoftBank’s SVF Python II (Cayman) Limited offloaded 2.53% of its stake, involving 1.14 Cr shares, in PB Fintech in multiple block deals worth a cumulative INR 913.7 Cr.

While many institutional investors, including Societe Generale, HDFC Mutual Fund, Goldman Sachs (Singapore) Pte, and ICICI Prudential Life Insurance Company Limited, lapped up the offloaded shares, shares of PB Fintech fell 2.3% on Friday to end the session at INR 789.45 on the BSE.

Meanwhile, the company on Thursday informed the exchanges that Income Tax (IT) officials ‘visited’ the offices of its subsidiary Paisabazaar earlier this week. PB Fintech noted that the business operations of Paisabazaar continue as usual and have not been impacted due to the survey proceedings.

Overall, PB Fintech fell 3.6% this week.

Largely helped by its improving bottom line, shares of the Policybazaar and Paisabazaar parent have gained over 22% in the last six months.

Paytm Continues To Fall

Paytm’s decision to scale down its loan disbursement business, largely affecting the BNPL or postpaid loan vertical, continues to weigh heavily on the fintech giant’s market performance.

After slumping a massive 25% last week, the stock fell almost 7.1% this week. 

Shares of Paytm ended the week at INR 605.85 on the BSE. The stock had last touched the INR 600 level or below towards the end of March this year. 

On the back of its improving outlook and bottom line, Paytm shares had gained a massive 86% this year till October. However, they are now trading only 14% higher year to date following the recent slide.

Rupak De, senior technical analyst at LKP Securities, said that Paytm seems to have reached its support level at INR 590. 

“Now, if Paytm holds above INR 590, then there is a possibility of some recovery towards INR 650-INR 700,” he said, adding that the stock might fall towards INR 500 if it slips below the support level.

Delhivery Trading At A Six-Month Low

Shares of the logistics unicorn started witnessing a significant slump in early October, days after it announced the allotment of some ESOPs. Since then, the stock has been on a downtrend. 

The company’s Q2 FY24 financial results also failed to add any major boost to the falling share prices. SoftBank selling its 1.83 Cr shares in November further added to the woes.

After a little over 7% fall this week, Delhivery shares have touched their lowest level since June 9. The stock ended the week at INR 357.6 on the BSE. In September, shares of Delhivery were trading around INR 440.

LKP Securities’ De said that Delhivery looks very weak on technical charts. It has support at INR 345 and a reversal is only possible above INR 376, he said.

The post Broader Market Bull Run Lifts Up New-Age Tech Stocks This Week, RateGain Nears $1 Bn M-Cap appeared first on Inc42 Media.

After the funding peak of 2021, when valuations of dozens of startups skyrocketed far away from their actual revenue, it seemed that a profitable startup was rarer than a unicorn.

But the sobering reality of the past two years has given unicorns and soonicorns of India a lot to think about. And primarily, their thoughts turned to one big question: How do we get to profitability?

Several startups have managed to answer this question in FY23 and even the likes of Zomato have turned the course around. What explains this new phase for Indian startups and tech giants?

We’ll look to get the answer about the profitable startup brigade in India, but after a brief detour into these top stories from this past week:

• Omidyar Hits The Eject Button: Omidyar Network, one of the oldest active VC firms in India, is exiting the market. Did the firm’s legal problems with regulators force its hand?
• Groww’s Super App Year: Groww thinks like a D2C company and looks at problems from a consumer-first perspective, says cofounder Harsh Jain as he gives us a peek into how the fintech giant is looking beyond investment tech
• Decoding CRED’s 2023: This was a big year for CRED — embracing the platform life with multiple new and revamped products, and proving that financially too, it is on the right track with its FY23 numbers

Startups Don The Profitability Hat

When we last looked at the financial state of Indian unicorns in March this year, as many as 55 out of 74 Indian unicorns who had released their FY22 numbers were in losses. Their combined loss of $5.9 Bn in FY22 was almost double their cumulative loss in FY21.

While losses are not new in any way, the fact that investor sentiment was turning sour meant that startups had to focus on generating cash from their business rather than relying on VC funding to expand and grow. In other words, VC money was used to widen the top of the funnel, but when the tap is turned off startups have to find a way to get more revenue from the users they have acquired.

“VCs have always wanted startups to monetise and generate free cash flow, but the reality of the market was such that startups needed scale to make this possible. They relied on funding to grow their cache of users and are now looking to capitalise on this base,” Naganand Doraswamy, founder of early-stage VC firm Ideaspring Capital, told us.

Doraswamy, who founded Ideaspring in 2016, claims that this is how tech has grown in the Silicon Valley ecosystem, too. He pointed out that India is going through the phase, which Silicon Valley saw in the late 90s when a few startups emerged and are now tech giants after three decades.

The Profitable Startup Brigade

Other investors believe that if anything, India is maturing faster and profitability is part of the maturity curve. Even younger startups are turning profitable faster because they are focussing on profits and not scale, says the cofounder of a Mumbai-based micro VC firm.

But a lot of this has to do with the sector and segment that the startup operates in. It’s not possible to eke out profits in ecommerce in the first two or three years, but in fintech or enterprise tech, this is very much a possibility.

B2B models are better suited to churn out profitable startups, especially if factors like customer segmentation and product-market fit are right. And this is particularly true for startups that are targeting small businesses, where the TAM is still high and untapped.

B2C startups still need to spend to acquire users but those which did this in the past two years are reaping the rewards. Take Groww for instance, which turned profitable on a base of 6.5 Mn+ users. In a conversation with Inc42, Groww claims that profitability is an outcome of its product, other B2C companies still have to focus sharply on their revenue modelling and reducing customer acquisition costs.

Who Gets The Credit?

But who is to be credited for this change in the outlook among startups? Is it just that investors wanted startups to focus on profits, or to put it differently, would this change have been possible without the global economic slowdown, tight liquidity and the funding winter?

As investors tightened their purse strings, realisation struck that they needed to focus on their bottom lines to extend their runways and get fresh funding. This resulted in the start of restructuring exercises across startups through layoffs and cutbacks.

The fact is that a clear and short path to profitability is a condition for growth capital in 2023, so perhaps this phase would not have come without market conditions. There’s been a flurry of claims by startups around profitability, which is meant to perhaps act as a lure for investors. Startups have relied on vastly different terminologies and parameters for profitability — from profit after tax to EBITDA and adjusted EBITDA to profit as of a single month or the most recent quarter.

“We know many of the larger investors are also stipulating milestone-based tranches for investing in startups. Most startups that have raised large rounds this year have to have demonstrated their path to profitability or the potential for an exit in the next couple of years,” the Mumbai-based investor added.

Exits are, of course, on the cards for many investors with IPOs plans being revived in 2024 and 2025. Listed companies face the most visible pressure from investors to show profits and in Zomato’s case, the profitability has come after a decade of fine-tuning the revenue structure and charging customers directly per order. The rationalising of costs associated with Blinkit’s quick commerce model has also helped Zomato in a major way.

Zomato’s two profitable quarters show that the company has capitalised on the revenue momentum in FY24 and seems poised to become a profit-making machine.

Will The Tide Turn? 

Of course, it’s too early to say whether the profitability streak of FY23 will continue in 2024 and 2025. Like many have pointed out, the profits are in many cases a result of startups slowing down expansion of operations and user base. The focus has instead shifted to maximising revenue. Will Indian startups be back to their loss-making ways if and when they have to scale both revenue and users?

“It’s very much possible that startups go back to their old ways, but one thing is that those which need VC money will know that investor confidence can shift on a dime and if you don’t show the results there are a lot of questions, like in the case of BYJU’s today,” according to a Bengaluru-based edtech cofounder and CEO.

There’s also a feeling among startups that profits are possible without raising mega rounds, especially because talent costs have been rationalised. In addition, startups are replicating the business strategies that are working — Zomato and Swiggy’s platform fees and commission changes this year, for example.

One potential issue for startups that just focus on profits is that they might find their profits stagnating in the long run. “It’s a tricky balance. This year is about profits, but perhaps next year many companies will reinvest this profit into growing and expanding. And then the market will be asking questions about how long before they hit profits again,” the founder quoted above observed.

Profitability is also on the agenda for startups looking to get listed in 2024 and 2025. Showing profits before the listing is a recipe for a successful IPO, and it’s a motivation for the likes of OYO, Swiggy, PayU among others.

Startups go through cycles all the time. This year, startups are in the midst of a market that demands they show profits, but perhaps this expectation will change next year. And if so, will startups forget some of the hard lessons that brought them to profits in the first place?

In Focus: 2023 In Review 

Our wrap of the year continues with a flurry of stories on everything from the most controversial stories and personalities of the year to taking a look at the state of layoffs in the ecosystem.

• Swiggy vs Zomato: While Zomato has grown into a profitable entity, has it managed to outperform Swiggy among consumers in 2023? Here are the results of our survey of the consumer sentiments for these two food delivery giants
• Layoffs Outlook For 2024: After 35,000+ job cuts in 2022 and 2023, will the forthcoming year bring a positive change when it comes to startup layoffs and cutbacks?
• Startups Caught In Controversies: From boardroom battles at BharatPe to founders deceived at a startup event to financial mismanagement at VC-backed first, here’s what brought startups to the headlines for the wrong reasons
• Founders Start Up Again: More than 30 CXOs, including founders, have switched their tracks to float new ventures or join other companies in pursuit of new opportunities. What explains this transition?

Sunday Roundup: Startup Funding, Tech Stocks & More

• Funding Galore: Bright sparks for startup funding this week, with over $527 Mn raised by Indian startups across 21 deals
• Krutrim AI: Bhavish Aggarwal’s latest venture Krutrim has unveiled new large language models and a chatbot, claiming to be “India’s first full-stack AI”
• Alma Better: From a cash crunch to layoffs and opaque performance reviews, upskilling startup Alma Better’s story has gone from promising to problematic
• Grok In India: Elon Musk’s OpenAI and ChatGPT challenger Grok is now available in India for X Premium+ users

• SoftBank’s Sell Streak: Japanese major SoftBank offloaded 2.53% of its stake in Policybazaar this week after its exit from Zomato

We’ll be back next week with another roundup as we close the curtains on 2023.

Don’t forget to stay tuned to our social media channels during this time of the year. Join Inc42 on Instagram, X/Twitter and LinkedIn for the latest news as it happens.

The post Startups In Their Profitability Era appeared first on Inc42 Media.

Minister of State (MoS) for Information Technology Rajeev Chandrasekhar on Saturday (December 16) said that the Centre plans to fund and support artificial intelligence (AI) startups in the country. 

Modelled on the lines of a similar framework for the semiconductor industry, Chandrasekhar said that funding and incentives will be rolled out to scale the burgeoning ecosystem. 

“AI compute (part of India AI Mission) will have two segments – one led by the private sector, similar to the design of the semiconductor ecosystem with incentivised investments. The other segment involves indigenously developed public sector capacity for AI emerging from C-DAC, which will be available to the Indian ecosystem,” Chandrasekhar said while speaking at an event in Bengaluru.

The government will also deploy ‘financial resources’ to build foundational AI models, large language models (LLMs), and various use cases for the emerging technology. He also said that the Centre would explore synergies between AI and semiconductor industries in areas such as development of AI chips. 

The minister said that the Centre is focussed on building a close knit ecosystem of academia, industry and startups to push the AI space in India. Chandrasekhar also called for nurturing AI talent in the country to fuel the demand from the booming AI space.

Meanwhile, he also called for formulating a global framework to regulate AI, saying that the emerging technology, over the course of next six to nine months, may take shape in a way that the world ‘may not anticipate or fully understand’.

“We need a global framework urgently because, in the next six to nine months, AI will take shape and evolve in a way that we may not anticipate or fully understand… Therefore, we need to establish this framework quickly, with a granular set of principles and rules that all countries can follow,” added Chandrasekhar.

He also termed AI as a ‘significant bolt’ to the ‘already galloping’ Indian digital economy. The MoS said that AI can propel India’s digital economy and foster growth in sectors such as healthcare, agriculture, and governance. 

On the rising menace of GenAI-powered deepfakes, misinformation, and disinformation, the minister reiterated that the Centre has proactively taken steps to address challenges on the digital front.

“Deepfakes are a classic example because misinformation and patently false information are diseases that social media has spread, causing harm, especially in democratic countries. It creates divisions, incitements, and fake narratives. Misinformation has been a problem in social media; now imagine misinformation powered by AI,” the minister added.

The move to fund homegrown AI startups comes at a time when generative AI has become a buzzword among Indian entrepreneurs. From Google’s Bard to OpenAI’s ChatGPT, the GenAI space has caught the imagination of people across the globe in the recent past. The adoption of the emerging technology is further expected to soar as businesses and consumers deploy and use applications such as text, image, audio and video, among others. 

This has spawned a host of new Indian startups in the domains. As per Inc42 data, India is home to more than 70 GenAI startups that have raised capital in excess of $440 Mn between 2019 and Q3 2023. 

Inc42 also estimates the homegrown GenAI market to grow to a market size of $17 Bn by 2030 from $1.1 Bn in 2023.

The post Centre To Support, Fund Indian AI Startups: MoS Rajeev Chandrasekhar appeared first on Inc42 Media.

The University Grants Commission (UGC) has yet again warned edtech platforms of stern action for offering online degree courses in association with foreign institutions. 

The Commission noted that franchisee arrangements between edtech startups and foreign universities are barred. Flagging ads published by edtech companies, it added that degrees issued as part of such courses would not be valid. 

“It has also come to the notice of UGC that some edtech companies are… offering degree and diploma programmes in online modes in association with some foreign… institutions… Action will also be taken against all the defaulting edtech companies as well as the HEIs (higher educational institutions) under applicable laws/rules/regulations,” said UGC in a public notice issued on December 12.

The Commission also advised the general public to exercise ‘due caution’ while enrolling for such courses, adding that those opting for such degrees would be doing the same at their own risk and consequences.

It is pertinent to note that the amended UGC Act, 1956 bars HEIs from offering courses via franchising agreements with foreign universities. Current rules stipulate that such courses are not recognisable by the Commission. 

The move is expected to rein in edtech startups that offer such courses and ensure that students and parents do not spend resources and time on earning degrees that have no recognition. 

However, this is not the first time that authorities have cracked the whip on edtech companies.for offering non-recognised educational programs. In early 2021, the Commission had directed HEIs to withdraw any degree or diploma programmes being offered in partnership with edtech companies.

Afterwards in October 2022, the UGC again issued a fresh order that noted that online Ph.D programmes offered by edtech players in partnership with foreign institutes were not recognised.

The development comes at a time when the Indian edtech sector has been mired in a slew of troubles. 

The funding winter, increased regulatory compliance, layoffs, and a merger and acquisition wave headlined the Indian edtech startup ecosystem in 2023. From BYJU’s to Unacademy, the sector has seen companies slashing headcount by thousands. As per Inc42, 24 Indian edtech startups have fired more than 14,616 employees since 2022.

The post UGC Warns Edtechs Of Action For Selling Courses In Partnership With Foreign Institutes appeared first on Inc42 Media.

Have you ever felt overwhelmed by the constant barrage of promotional SMS messages on your phone? I certainly have. 

Just the other day, I was sifting through a sea of unread messages, all screaming for attention, and it struck me: Is this strategy effective?

The Reality Of SMS Marketing In India

The once-celebrated SMS marketing landscape in India is undergoing a transformation, with its effectiveness facing scrutiny. The click-through rate (CTR) has witnessed a sharp decline, dipping below 0.1%, raising concerns about the channel’s cost-efficiency. 

While the cost of sending an SMS remains relatively low at around 10 paise, the average cost per click (CPC) has soared to INR 100, creating a significant disparity. 

This imbalance is particularly concerning given the generally lower conversion rates observed on mobile devices compared to desktops.

A Closer Look At Customer Acquisition Costs

Imagine sending out a thousand text messages and only gaining ten new customers. That’s the reality for many businesses that rely on SMS campaigns to acquire new customers. 

With a conversion rate of just 1%, the cost of acquiring a customer (CAC) through SMS can reach a staggering INR 10,000 ($120). While this approach still holds value for some industries with high customer lifetime values, it’s essential to weigh the costs and benefits carefully before embarking on an SMS marketing campaign.

Who Still Benefits?

Financial Products: Considering the high referral bonuses offered by some banks for credit card sign-ups, a customer acquisition cost (CAC) of INR 10,000 can be justified.

Real Money Gaming Apps: While their low ticket size might suggest otherwise, their high user engagement and frequency make the high CAC worthwhile. This is because their loyal customer base brings in consistent revenue and repeat business, which ultimately justifies the initial investment in acquiring new customers.

Real Estate: In the real estate industry, the substantial transaction values make it easier to bear the higher customer acquisition cost.

The Vicious Cycle And A Possible Solution

This reliance on SMS marketing has led to a vicious cycle: more messages lead to lower click-through rates and higher CACs. Many, including myself, have turned off SMS notifications to escape this deluge. 

A potential solution? Increase the cost of sending promotional SMS. This approach, already adopted in several developed countries, could break the cycle, encouraging more targeted and thoughtful campaigns.

As we navigate the ever-evolving landscape of digital marketing, it’s crucial to reassess our strategies and adapt to changing trends. The current state of SMS marketing in India is a clear indicator that what once worked may not be as effective today. 

By initiating a dialogue on these issues, we can collectively steer towards more innovative, efficient, and user-friendly marketing practices that respect both the consumer’s space and the marketer’s budget.

The post Is SMS Strategy A Costly Mistake? appeared first on Inc42 Media.

In the past couple of decades, there has been a huge shift in the food lifestyle patterns in India. In recent years particularly, there has been a huge rise in the demand for organic food and products. 

There have been many drivers behind this development. The biggest one is that the country’s food and beverage industry, especially in the category of organic food, has experienced gradual growth in the past few years.

Organic food is pricier and the growth in the income levels of the middle class of India has enabled the population segment to shift in lifestyle. More Indians can now afford organic food and can make a cautious decision to choose such ingredients and food items. 

Tech startups and tech companies in India have been working to spread awareness about food and lifestyle change in India and promote organic food. They are further pushing the growth of the organic food industry and making it reach out to a larger chunk of the population.

Spreading Awareness For Adoption of Organic Food

Tech startups who track the country’s income and expenditure trends can understand the food industry’s pulse as a whole. They plan their communication and marketing tactics in a way to target the correct audience for the correct product or service. 

The primary way to reach out to the audiences is through targeted online advertisements on various social media and other means. The communication reaches the handheld devices of the particular user and is considered the most effective means. 

These companies also involve influencers for better and more effective outreach. The main aim of such communications is to break the myths surrounding organic food and spread better awareness.

Communicating Benefits Of Organic And Doing It On Right Time

The major reason for the non-adoption of organic food by the masses is due to the myths and disbelief associated with it. A major part of the population is not aware of the exact benefits of organic foods and this is where communication plays an important role. 

The lack of knowledge forces people to assume certain things about the organic food industry and thus are pushed away from adopting the lifestyle. More than communicating the benefits of organic foods, it is also important to communicate them at the right time. In this case, the right time is when people are making a shift in their lifestyle. Internet trends of users play an important role in tracking their preferences. 

When a user is making a shift in behavioural patterns and making lifestyle-related changes like starting to exercise, joining a gym or shifting to a new diet regime. 

This is the optimum time to communicate about the benefits of organic foods as at this time, the audience would be more receptive and the communication would be the most effective.

Informing Them From Where To Purchase

Other than communicating about the benefits of organic foods, it is also important to talk about the right sources from which such products can be purchased. Nowadays, there are numerous sellers of organic food items and there have been cases, where some sellers sold non-organic products, claiming them to be organic. 

Such incidents hamper the trust of the consumers and they develop a dislike for the whole segment of foods. It is highly important to verify the right and certified sellers of such products and promote them to the right audience. 

Consumer trust must be developed and this is what the new age tech startups are focusing on. Only the right sellers are promoted on various platforms, after a thorough background check and verification.

Delivering Organic Food In Less Than 20 Minutes

In recent times, food and grocery delivery startups and apps have upped the ante and there is now a cut-throat competition to fulfil such deliveries in as short time as possible. This has a positive impact on the organic food industry as these startups and food delivery apps also list the organic products in their offering. 

People wanting to buy organic foods can do it in a few clicks and get the products delivered within a few minutes to their doorstep, without any hassle.

Solutions For Pertaining Issues Related To Food, Health, Environment Sustainability

Tech startups are solving many problems at once by promoting organic foods. They are helping people overcome the issues related to chemical and fertiliser-infused foods by spreading much-needed awareness. 

Such foods cause long-lasting health issues and are a root cause of developing several complications within the human body. Other than that, the use of organic foods is very beneficial for the environment as the use of no chemicals does not impact the soil, water or air and gives a chance for the land to sustain itself for the next crop. 

It is a step ahead in the direction of environmental sustainability, something which is being promoted on international forums.

Using Technology To Reach Tier 3 Cities And Towns

A lifestyle change can only be considered complete and absolute for the whole population, when there is a vast outreach and people at the remotest level are impacted. This is why it is important to reach out to the people in Tier 2 and 3 cities. 

Technology plays a vital role in creating this outreach and communicating the benefits of organic food and creating both job and consumer opportunities at that level.

The post Disrupting The Plate: How Tech Startups Are Revolutionising Organic Food Distribution In India appeared first on Inc42 Media.

It has been a year of oxymorons for the Indian startup land and its incumbent. While the year was mostly bogged down in the extended wave of an unforgiving funding dry spell (aka the infamous funding winter), it also saw a spring of Indian founders rolling out their second or even third ventures.

It is imperative to mention that the year so far has seen more than 30 CXOs, including founders, switch their tracks to join other companies, float new ventures or assume new roles within existing companies. 

While many stepped down under mysterious circumstances or took an exit after their ventures were acquired or for various other reasons, the zeal of Indian founders to start afresh cannot be ignored.  

Interestingly, the trend of entrepreneurs not sticking to one particular venture in the world’s third-largest startup ecosystem is not new but became more evident with examples like Ola cofounder Ankit Bhati quitting the ride-hailing giant to focus on his SaaS venture Amnic.

The past few years have also seen eminent entrepreneurs like Kunal Shah (Freecharge to CRED), Jitendra Gupta (Citrus Pay to Jupiter), Anant Goel (Milkbasket to Sorted), et al. raise funds to start their new ventures.

However, one may ask if this trend is having any particular impact on the world’s third-largest startup ecosystem, especially investors. 

According to industry experts, investors tend to have more confidence in second and third-time founders, making them preferred choices for investment. And there is a simple explanation for this  — such entrepreneurs are already well-versed in the industry cycles and the rules of the game.

As far as the realm of the Indian startup ecosystem is concerned, such founders are more likely to succeed, without relying much on vanity metrics like valuations, and mentor new breeds of entrepreneurs entering the domain.

As we inch towards embracing new hopes for the Indian startup ecosystem with the year 2024 in sight, let’s steal a glance at some of these founders who started up again.

8 Founders Who Started Up Again In 2023

Dineout’s Cofounder Vivek Kapoor Marked His Healthtech Foray

This year, Dineout cofounder Vivek Kapoor left Swiggy to join Delhi-based healthcare financing startup AyushPay as its cofounder and chief business officer. 

The transition was also triggered by his desire to make a meaningful contribution to the Indian healthtech sector. Notably, he was AyushPay’s angel investor for a considerable period and had actively mentored the AyushPay team.

AyushPay (formerly known as DoctCo), a healthcare solutions provider, announced his appointment in July.

Founded in 2021 by Nimith Aggarwal and Col Hemraj, AyushPay provides financing and payment solutions to patients to make healthcare accessible and affordable. 

Kapoor became part of Swiggy’s leadership team after Dineout’s acquisition by Times Internet last year at a valuation of $150 Mn-$200 Mn. 

Anshuman Kumar Left Teachmint For The Love Of His Dating App

In a bid to focus on his new venture Duolop, a dating and relationship management app, Teachmint’s cofounder and CTO Anshuman Kumar quit the edtech startup in March.

“I am stepping into a new role as the founder of Duolop, a dynamic and innovative Indian app revolutionising how couples connect and grow together,” Kumar announced about his exit in a LinkedIn post.

Duolop is an app for couples, both married and unmarried, which aims to simplify the complexities of managing a relationship. It offers a private chat feature where couples can send messages, images and videos to each other and help them plan dates.

The app has already been launched on the Google Play and Apple Stores.

Founded in 2020 by Kumar, Mihir Gupta, Payoj Jain and Divyansh Bordia, Teachmint helps teachers and schools digitise their classrooms. The startup counts Lightspeed India, Rocketship.vc and Better Capital as among its marquee investors.

In November 2022, Teachmint laid off 45 employees or around 5% of its workforce. The startup’s net loss skyrocketed 24X to INR 131.70 Cr in FY22 from INR 5.52 Cr in FY21, while its operating revenue stood at INR 77.45 Lakh.

Zolostay’s Akhil Sikri Set Sail For A New Expedition

Akhil Sikri, cofounder of Zolostays, stepped away from his operational role at the coliving startup to pursue his new entrepreneurial venture.

In August, Sikri, along with his fellow directors Ketan Kapoor and Ayon Dutta, floated Quick Response Financial Technologies Pvt. 

The Bengaluru-based Quick Response engages in activities encompassing computer programming, consultancy and related services.

As per Sikri’s LinkedIn profile, he transitioned out of his active role at Zolostays in March. However, he continued to retain his position on the company’s board. His LinkedIn bio lists him as the cofounder of an upcoming, unnamed project.

Launched in 2015 by Sikri, along with Isha Choudhry, Nikhil Sikri and Sneha Choudhry, Zolostays offers affordable paying guest accommodations, service apartments and independent flats to students and working professionals via its AI-powered app.

The startup competes with the likes of Isthara and Stanza Living, among others.

On A New Adventure, GoMechanic’s Cofounders Deny To Throw In The Towel

Automobile after-sale services startup GoMechanic’s cofounders Rishabh Karwa and Nitin Rana stepped down from their roles after admitting to financial misreporting.

The story began in January this year, when GoMechanic cofounder Amit Bhasin, who continues to be associated with the startup as per his LinkedIn profile, admitted to committing “errors in judgement” regarding financial reporting while trying to pursue growth. 

While the dust is far from settled on the GoMechanic front, Karwa and Rana joined the list of founders starting up again.

Both of them are now working on two separate and unnamed new startups. 

Not much details are known about Rana’s new startup, except that his latest venture focusses on “Building Travel & Hospitality Product for Indian Subcontinent and World”.

However, Karwa has been quite vocal about starting anew, posting about the journey of building a new product and startup. His social media posts about Figma plugins and projects indicate some degree of progress. As per his LinkedIn profile, he is “building for local businesses”.

Both Karwa and Rana have not publicly announced raising any funds for their new startups till now. Now, it remains to be seen if the controversies around GoMechanic change anything for their new ventures. 

Polygon’s Cofounder Is Now The Captain Of Two New Ventures

In October, Polygon cofounder Jaynti Kanani resigned from his position at the blockchain scaling platform to focus on his new opportunities.

As per Kanani’s LinkedIn profile, he has cofounded two new startups – Mozak and Morphic. 

While Morphic is developing a platform designed to assist creators, filmmakers, and animators in producing high-quality content using AI technology, not many details are available for Mozak except that it is a Web3 platform. 

“After kickstarting Polygon in 2017, around six months back, I decided to step back from the day-to-day grind,” Kanani said in a post on X while announcing his decision to quit.

His LinkedIn profile shows that he served as the cofounder of Polygon until March 2023. 

Kanani is said to have stepped down from Polygon around the same time when the company undertook mass layoffs earlier this year. In February, the blockchain scalability platform culled 20% of its workforce as part of a restructuring exercise amid the ongoing crypto winter.

ShareChat’s Cofounders Quit To Incorporate A Robotics Startup

After quitting their first venture ShareChat in January, cofounders Bhanu Pratap Singh and Farid Ahsan established their second venture, General Autonomy, in May this year.

In November, the cofounders raised $3 Mn in seed funding from venture capital firms India Quotient and Elevation Capital for the robotics startup, General Autonomy.

Before leaving ShareChat, Singh also served as its CTO, while Ahsan held the COO’s role. The third ShareChat founder, Ankush Sachdeva, continues to be the CEO of the social media unicorn.

The cofounders’ exit coincided with ShareChat’s parent firm, Mohalla Tech, laying off 20% of its workforce or 500 individuals earlier in the year.

Founded in 2015, parent Mohalla Tech positions ShareChat as an Indic language social media platform. In 2022, it acquired Times Internet-owned social short-video platform MX TakaTak for over $600 Mn to foray into the competing short-video social space. 

Mohalla Tech’s loss jumped 38.17% year-on-year to INR 4,064.31 Cr in FY23, while operating revenue grew 62% to INR 540.21 Cr.

The post 8 Indian Startup Founders Who Started Up Again In 2023 appeared first on Inc42 Media.

In a landscape teeming with buzzwords like disruption, innovation and scalability, the stark reality of numbers often tells a different story. While 87 leading new-age tech companies in India have released their FY23 financials, the performance figures offer a cautionary tale. 

Despite a cumulative operating revenue of a staggering INR 1.97 Lakh Cr, 60 of these companies reported a combined loss of INR 38,933.6 Cr in FY23. In contrast, the rest managed to eke out a collective profit of INR 5,675 Cr. The divide becomes more intriguing considering that 19 of these companies are listed. 

We are over eight months into FY24, but a majority of Indian startups are yet to release their financial numbers for FY23, leaving many to wonder what lies beneath the surface. In the ongoing fiscal year, Inc42’s Indian Startup Financials Tracker FY23 aims to be your eyes and ears, updating you on the financial performance of startups.

It’s important to note that FY23 was far from smooth sailing for the Indian startup ecosystem. Faced with dwindling funding, startups resorted to mass layoffs. In addition, various Indian startups adopted restructuring measures, including elimination of some business units and reductions in marketing budgets, to navigate the downturn.

While the capital crunch was painful and humbling, it also pushed startups to control their expenditure and focus on profitability. As such, FY23 financials are more than numbers. They reveal how Indian tech companies navigated the funding winter and showed resilience while continuing to push for growth. Now, let’s delve deeper into the financial performance of Indian startups.

Editor’s Note: This list is not a ranking of any kind, we have placed companies alphabetically. This is a running list; we will be updating it periodically.

Inside The FY23 Financials Of Indian Startups

Note: All amount in INR Cr

Acko’s FY23 Loss Jumps To INR 739 Cr

Bengaluru-based fintech unicorn Acko saw its operating revenue rise 32% to INR 1,758.6 Cr in FY23 as compared to INR 1,334.4 Cr in the previous year. Loss jumped over 50% to INR 738.5 Cr during the year under review as against INR 482.3 Cr in the previous fiscal year. Earlier this year, the startup received the licence from the Insurance Regulatory and Development Authority of India (IRDAI) to commence life insurance business.

Read: Acko Earned INR 1,759 Cr By Selling Insurance In FY23

Apna’s Revenue Jumps 3X

Tiger Global-backed professional networking platform Apna’s revenue from operations surged nearly 3X to INR 180.2 Cr in FY23 from INR 63.8 Cr in the previous fiscal year. 

The startup incurred a loss of INR 120.3 Cr in FY23, an increase of 7% from INR 112.5 Cr in FY22.  The Nirmit Parikh-led startup’s total expenses also rose 73% to INR 308.4 Cr in FY23 from INR 178.3 Cr in the previous fiscal year.

Read: Tiger Global-Backed Apna’s FY23 Revenue Nearly Triples To INR 188 Cr

Atlan’s Profit Takes A Hit

Data collaboration software startup Atlan reported a profit after tax (PAT) of INR 7.74 Cr in FY23, a decline of 18.70% from INR 9.52 Cr in FY22.

The Salesforce-funded startup’s operating revenue rose 189.78% to INR 93.83 Cr from INR 32.38 Cr in FY22

Total expenses jumped 203.45% to INR 85.53 Cr in FY23 from INR 28.19 Cr in FY22.

Read: SaaS Startup Atlan’s Profit Slips 19% To INR 7.74 Cr In FY23

Ather Energy’s Revenue Quadruple In FY23

Bengaluru-based two-wheeler electric vehicle (EV) manufacturer Ather Energy’s operating revenue jumped 4.3X to INR 1,783.6 Cr in FY23 from INR 408.5 Cr in the previous fiscal year. Despite this, the Hero MotoCorp-backed startup’s net loss surged over 150% to INR 864.5 Cr from INR 344.1 Cr in FY22. 

The two-wheeler EV manufacturer’s total expenses more than tripled to INR 2,670.6 Cr from INR 757.9 Cr in FY22

Read: Ather Energy’s Loss Shoots Up 2.5X To INR 865 Cr IN FY23

BankBazaar’s Loss Falls 15% To INR 37 Cr

Fintech startup BankBazaar’s net loss narrowed over 15% to INR 36.71 Cr in FY23 from INR 43.23 Cr in the fiscal year ended March 2022. The startup’s operating revenue stood at INR 158.69 Cr in FY23, up from INR 95.52 Cr in FY22.  

Eight Roads-backed BankBazaar’s total expenditure zoomed 40% YoY to INR 196.93 Cr in FY23.

Read: BankBazaar Trims FY23 Loss By 15% As Top Line Jumps 66% To INR 158.69 Cr

Beardo Slips Into The Red, Posts INR 6.1 Cr Loss In FY23

Marico-owned men’s grooming D2C brand Beardo slipped into the red during the financial year under review. The Ahmedabad-based D2C brand reported a net loss of INR 6.1 Cr in FY23 as against a net profit of INR 75.5 Lakh in the previous fiscal year. 

Beardo’s revenue from operations rose 12.3% to INR 106.6 Cr in FY23 from INR 94.8 Cr in FY22, as per Marico’s annual report for the year ended March 31, 2023.

Total expenditure stood at INR 115.3 Cr in FY23, a rise of 20% from INR 96.1 Cr in FY22. 

Read: Marico-Owned Beardo Slips Into The Red, Posts INR 6.1 Cr Loss In FY23

BigBasket Crosses INR 16,000 Cr Revenue Mark 

Tata-owned BigBasket reported a total revenue of INR 16,903 Cr in FY23, a jump of 8.4% from INR 15,593 Cr in the previous fiscal year. 

The combined B2C and B2B business of BigBasket incurred a net loss of INR 3,320 Cr in the financial year 2022-23 (FY23), a 79% increase from INR 1,853 Cr reported in the previous fiscal year.

BigBasket spent INR 770 Cr for advertisement and promotional expenses during the year under review.

Read: BigBasket B2C Arm’s Net Loss Surges 89% To INR 1,535.2 Cr In FY23

Bira 91’s Sales Inch Closer To INR 1,000 Cr Mark

Delhi NCR-based beer brand Bira 91 reported an operating revenue of INR 824.3 Cr in the year ended March 31, 2023, an increase of 15% from INR 718.8 Cr in the previous fiscal year. 

Bira 91’s net loss increased 12% to INR 445.4 Cr in FY23 from INR 396 Cr in the previous fiscal year. Total expenditure increased 14% to INR 1,282.4 Cr during the year under review from INR 1,122.5 Cr in FY22.

Read: Bira 91 Incurred Loss Of INR 445 Cr From Sales Of Beers In FY23

BlueStone’s Expenses Dip 45%

Jewellery startup BlueStone’s operating revenue increased over 1.6X to INR 770.7 Cr in FY23, an increase of 67% from INR 461.3 Cr in the previous fiscal year. 

The startup’s loss plunged 86% to INR 167.2 Cr from INR 1,268.4 Cr in FY22 on account of a one-time non-operating expense in the previous fiscal year. The jewellery startup’s total expense declined 45% to INR 955.1 Cr in FY23 from INR 1,739 Cr in FY22. 

The startup is in the process to raise $65 Mn from Nikhil Kamath’s office, Deepinder Goyal, Amit Jain, and Ranjan Pai

Read: Ratan Tata-Backed BlueStone Earned INR 771 Cr By Selling Jewellery In FY23

boAt Slips Into The Red For First Time Since Inception

Aman Gupta-led consumer electronics startup boAt slipped into the red for the first time since its inception as the increase in its expenses outpaced the rise in sales. boAt reported a net loss of INR 129.4 Cr in FY23 after posting a profit of INR 68.7 Cr in FY22.

Operating revenue rose 18% to INR 3,376.7 Cr from INR 2,873 Cr in the previous fiscal year.

The startup earned INR 2,350.8 Cr in FY23 from the audio segment, which accounted for 70% of its operating revenue. The wearable segment contributed INR 901.5 Cr to boAt’s topline this year.

Total expenses jumped 28% to INR 3,562 Cr in FY23 from INR 2,786.9 Cr in the previous fiscal year.

Read: Aman Gupta’s boAt Sold Audio Products, Smartwatches Worth INR 3,376 Cr In FY23

BookMyShow Turns Profitable After COVID

Online ticketing platform BookMyShow turned profitable and posted a consolidated net profit of INR 85.1 Cr in FY23 as against a loss of INR 92.2 Cr in the previous fiscal year.

As more people stepped out and went to movie theatres and attended live events post the Covid-19 pandemic, the startup’s operating revenue surged 252% to INR 975.5 Cr in FY23 from INR 277 Cr in the previous fiscal year. 

BookMyShow’s total expenses also jumped 138% to INR 940.9 Cr in FY23 from INR 395.2 Cr in the previous financial year

Read: BookMyShow Posts INR 85 Cr Profit In FY23 On Post-Pandemic Boost, Sales Jump 3X

CaratLane’s Sales Cross INR 2,000 Cr Mark

Titan-owned jewellery startup CaratLane’s operating revenue surged 73% to INR 2,169 Cr in FY23 from INR 1,255.6 Cr in the previous fiscal on the back of growing demand.

Despite the rise in revenue, CaratLane’s net profit dipped 8% to INR 82 Cr during the year under review from INR 89.2 Cr in the previous fiscal year.
Total expenditure jumped 69% to INR 2,068.5 Cr in FY23 from INR 1,225.9 Cr in the previous fiscal year.

Read: Titan-Owned CaratLane’s FY23 Sales Jump To INR 2,169 Cr, Profit Dips To INR 82 Cr

CarTrade Back In The Black In FY23

CarTrade, which recently acquired OLX’s India business, returned in the black in the financial year ended March 31, 2023. The Rajasthan-based startup reported a net profit of INR 40.4 Cr in FY23 as compared to a loss of INR 121.3 Cr in the previous year. 

Operating revenue rose around 16% to INR 363.7 Cr in FY23 from INR 312.7 Cr. 

The auto marketplace also reported an over 300% rise in profit after tax at INR 13.5 Cr in the first quarter of the financial year 2023-24 (FY24) from INR 3.3 Cr posted in the year-ago quarter. 

Read: CarTrade’s PAT Jumps 4X YoY To INR 13.5 Cr In Q1

Amazon-Backed Cashify’s Revenue Crosses INR 800 Cr Mark

Delhi NCR-based recommerce startup Cashify’s sales jumped 67% to INR 815.9 Cr during FY23 from INR 497.9 Cr in the previous fiscal year. 

Despite the rise in revenue, Cashify’s net loss increased in FY23. Its net loss grew 49% to INR 147.9 Cr during the year under review from INR 99.3 Cr in FY22.

The Amazon-backed startup saw its expenditure grow 61% to INR 973.4 Cr in FY23 from INR 603.1 Cr in the previous fiscal year.

Read: Cashify Earned INR 816 Cr By Selling Refurbished Phones, Laptops In FY23

Classplus’ FY23 Loss Widens To INR 257 Cr

The Tiger Global-backed edtech startup’s net loss rose 57% to INR 256.6 Cr in FY23 from INR 163.5 Cr in FY22. Operating revenue jumped 4X to INR 102.04 Cr in FY23, compared to INR 25.9 Cr in the previous year.

Earlier this year, Classplus faced legal trouble when Saarthi’s cofounder, Chiraag Kapil, and its investors filed a lawsuit against it in the Delhi High Court (HC) for alleged cheating and criminal breach of trust.

Read: Tiger-Backed Classplus Spent INR 4 To Earn Every INR 1 From Ops In FY23

Clear’s Revenue Crosses INR 100 Cr Mark

Peak XV Partners-backed Clear’s (formerly known as ClearTax) operating revenue jumped over 85% to INR 108.8 Cr in the financial year 2022-23 (FY23) from INR 58.7 Cr in FY22.

Despite the increase in revenue, the startup’s net loss grew nearly 5% to INR 233.5 Cr in FY23 from INR 222.7 Cr in FY22.

Total expenditure increased over 21% to INR 343.7 Cr from INR 283 Cr in FY22.

Read: Tax Filing Platform Clear’s FY23 Revenue Jumps Over 85% To Cross INR 100 Cr Mark

Flipkart-Owned Cleartrip’s Loss Doubles 

Flipkart-owned online travel aggregator Cleartrip witnessed a 90% surge in its loss to INR 676.5 Cr in FY23 from INR 356.5 Cr in the previous financial year. The startup’s operating revenue declined 10% to INR 50 Cr, whereas expenses jumped 63% to INR 773.2 Cr in the financial year. On a unit economics level, the startup spent INR 15 to earn every INR 1 from its operations. 

Read: Flipkart Owned Cleartrip Spent INR 15 To Earn Every INR 1 From Ops In FY23

Kunal Shah’s CRED’s Revenue Jumps 250% In FY23

Kunal Shah-led fintech unicorn CRED’s total revenue jumped over 3.5X in the financial year ended March 31, 2023 to INR 1,484 Cr from INR 422 Cr in the previous fiscal year. 

While the loss grew 5% to INR 1,347.4 Cr in FY23 from INR 1,279.5 Cr in the previous fiscal year, the startup’s total expenditure jumped 1.6X to INR 2,831.9 Cr in FY23 from INR 1,702.1 Cr.

CRED, which is known for splurging on advertisements, reduced its marketing costs by 26% to INR 713.4 Cr from INR 975.7 Cr in FY22.

Read: Kunal Shah-Led CRED’s Revenue Jumps 3.5X To INR 1,484 Cr In FY23

Darwinbox’s Loss Jumps To INR 158 Cr

HRtech unicorn Darwinbox’s consolidated net loss soared 2.4X to INR 158.25 Cr in FY23 from INR 65.72 Cr in the previous fiscal year.

The Microsoft-backed startup’s operating revenue almost doubled to INR 224.04 Cr in FY23 from INR 116.73 Cr in FY22. 

The SaaS-based startup’s total expenses soared 2.2X to INR 407.22 Cr in FY23 from INR 186.93 Cr in the previous fiscal year.

Read: HRtech Unicorn Darwinbox’s FY23 Loss Surges 2.4X To INR 158 Cr

Delhivery Sees Meagre Uptick In Revenue

Logistics company Delhivery saw a 5% YoY jump in operating revenue in the financial year ended March 31, 2023. The Lee Fixel-backed startup reported an operating revenue of INR 7,225.3 Cr in the financial year under review as compared to INR 6,882.2 Cr it had reported in the previous quarter. 

The startup also reported a loss of INR 1,007.7 Cr in FY23, a 0.3% dip as compared to the loss of INR 1,011 Cr it had reported in the previous year. 

However, the logistics startup reported almost a 78% decline in net loss at INR 89.5 Cr in the first quarter of FY24 from INR 399.3 Cr reported in the last year’s quarter.

Read: Delhivery’s Q1 Loss Narrows 78% YoY To INR 89.5 Cr On Strong Growth Across Verticals

DroneAcharya Witnesses 700% Jump In Profit

Of the listed companies, Pune-based drone startup Droneacharya reported the highest jump in profit on a YoY basis. The company reported a profit of INR 3.4 Cr in FY23, a jump of over 700% from INR 0.4 Cr it had reported in the previous fiscal. 

The startup’s operating revenue also increased by over 429% to INR 18.5 Cr in FY23 as compared to INR 3.5 Cr it had reported in the previous fiscal year. 

Read: DroneAcharya’s FY23 Profit Jumps Over 700% YoY To INR 3.42 Cr On Increase In Offerings

Dunzo’s Loss Quadruples

Reliance-backed Dunzo’s loss nearly quadrupled in the financial year ended March 31, 2023. The Bengaluru-based hyperlocal delivery startup’s loss surged to INR 1,801 Cr in FY23 from INR 464 Cr in the previous fiscal year. 

Meanwhile, operating revenue increased 317% to INR 226.6 Cr in FY23 from INR 54.3 Cr in FY22. The startup’s total expenses ballooned 286% to INR 2,054.4 Cr in FY23 from INR 531.7 Cr in the previous fiscal year

Read: Dunzo Spent INR 9 To Earn Every Single Rupee From Operations In FY23

EaseMyTrip Nears INR 500 Cr Mark in Sales

Prashant, Nishant, and Rikant Pitti-led online travel aggregator – EaseMyTrip – reported a 91% jump in operating revenue in the year under review. The Delhi-NCR-based startup reported an operating revenue of INR 448 Cr in FY23, an almost 2X jump from INR 235.3 Cr it had posted. EaseMyTrip also reported a profit of INR 134 Cr in FY23, a 27% jump from INR 106 Cr it had reported in the previous fiscal.

However, the startup’s profit declined by 22% YoY to INR 26 Cr in the first quarter of financial year 2023-24 (FY24).

Read: EaseMyTrip’s Q1 PAT Declines 22% YoY To INR 25.9 Cr On Deep Discounts

ElasticRun’s Revenue Cross INR 4,000 Cr Mark

Softbank-backed logistics unicorn ElasticRun’s revenue from operations saw a YoY increase of 24.71% to INR 4,754.86 Cr from INR 3,812.65 Cr in FY22. Further, the total revenue saw a YoY increase of 26.71% to INR 4,851.09 Cr from INR 3,828.24 Cr in the previous fiscal.

However, the startup loss nearly doubled to INR 618.82 Cr from INR 358.59 Cr in FY22. 

ElasticRun’s total expenditure surged 30.65% YoY to INR 5,469.91 Cr from INR 4,186.66 Cr in FY22.

Read: SoftBank-Backed ElasticRun’s FY23 Loss Doubles To INR 619 Cr

Flipkart’s B2B Arm’s Loss Jumps 42%

Flipkart India, the B2B arm of Flipkart, saw its standalone net loss balloon over 42% to INR 4,845.7 Cr in FY23 from INR 3,404.3 Cr in FY22. 

Operating revenue increased a mere 9.7% to INR 55,923.9 Cr in FY23 from INR 50,992.5 Cr in the previous fiscal year.  Total expenses rose 11.5% to INR 60,858.5 Cr in FY23 from INR 54,580 Cr in FY22.

Read: Flipkart’s B2B Arm’s FY23 Loss Surges 42% To INR 4,846 Cr

SaaS Unicorn Fractal Posts INR 194 Cr Profit 

New York-based AI intelligence unicorn Fractal turned profitable in FY23, posting a profit of INR 194.4 Cr as against a loss of INR 148.4 Cr in FY22. 

Operating revenue increased 53% to INR 1,985.4 Cr in FY23 from INR 1,295.3 Cr in the previous fiscal year. Total expenditure surged 52% to INR 2,225.2 Cr from INR 1,461.5 Cr in the previous fiscal year. 

Read: Exceptional Gain Helps SaaS Unicorn Fractal Post INR 194 Cr Profit In FY23

Fino Reports 50% PAT Jump In FY23

Mumbai-based Fino reported a 166% increase in its operating revenue to INR 95 Cr in FY23 as compared to INR 35.6 Cr it had reported in the previous fiscal year. The payments bank further reported a 52% increase in net profit to INR 65 Cr in FY23 as compared to INR 42.7 Cr it had reported in the previous financial year. 

The payments bank reported an 85% YoY jump in its profit after tax (PAT) to INR 18.7 Cr in the June quarter (Q1) of the financial year 2023-24 (FY24) as compared to a PAT of INR 10.1 Cr on a revenue of INR 289 Cr in Q1 FY23.

Read: Fino Payments Bank’s Q1 PAT Jumps 85% YoY To INR 18.7 Cr; To Apply For Small Finance Bank Licence

Groww Turns Profitable In FY23

Bengaluru-based stock broking platform Groww’s parent entity Billionbrains Garage Private Limited turned profitable in the financial year ended March 31, 2023. It reported a net profit of INR 448.7 Cr in FY23 as against a net loss of INR 239 Cr in the previous fiscal year. 

Operating revenue jumped over 3X to INR 1,277.8 Cr in FY23 from INR 351 Cr in the previous fiscal year. Groww’s expenses increased by a muted 41% to INR 932.9 Cr in FY23 from INR 663.6 Cr in the previous fiscal year

Read: Groww’s Revenue Crosses INR 1,000 Cr Mark, Posts Profit Of INR 449 Cr In FY23

HealthifyMe’s Loss Dips

Healthtech startup HealthifyMe saw its total loss decline by around 10% to INR 142 Cr in FY23, down from INR 157 Cr reported in the year-ago fiscal. 

Meanwhile, total revenues from operations rose 23% to INR 228.7 Cr in FY23 from INR 185.25 Cr in FY22. Total expenditure stood at INR 371.72 Cr during FY23, up 8.23% YoY.

Read: HealthifyMe’s Revenue Cross INR 200 Cr Mark, Losses Dip 10% In FY23

HomeLane’s Net Loss Jumps Over 15% 

Home interior startup HomeLane witnessed a 1.1X increase in net loss in the financial year ended March 31, 2023. The Bengaluru-based startup reported a net loss of INR 173.5 Cr in the financial year 2022-23 (FY23), a 15% increase from INR 150.8 Cr in FY22. 

The MS Dhoni-backed startup saw its total expenses increase over 1.3X to INR 757.2 Cr in FY23 from INR 581.7 Cr in the previous fiscal year. 

Read: HomeLane’s Loss Widens 15% To INR 173.5 Cr In FY23

ideaForge’s Profit Dips In FY23

Listed in 2023, drone manufacturing startup ideaForge saw its profit drop in the financial year ended March 31, 2023. The company reported a 28% drop in profit to INR 32 Cr in FY23 from INR 44 Cr it had reported in the previous fiscal year. 

The Mumbai-based startup’s operating revenue rose 17% to INR 186 Cr in FY23 from INR 160 Cr it had reported in the previous fiscal year. 

Moreover, in the first quarter of the ongoing fiscal year, the company saw over 50% decline in profit to INR 18.9 Cr as compared to INR 41.2 Cr it had reported in the corresponding quarter last year. 

Read: ideaForge’s PAT Declines 54% YoY To INR 18.9 Cr In Q1

iD Fresh Food’s Loss Halves In FY23

Ready-to-cook food maker iD Fresh Food’s net loss narrowed over 50% in FY23. The Bengaluru-based startup, which sells idli batter and parota, incurred a loss of INR 328.8 Cr in FY23, a 53% decline from INR 703.7 Cr in the previous year. 

Operating revenue increased 26% to INR 479.2 Cr during the year under review from INR 381.6 Cr in FY22. The startup’s expenses grew 14% to INR 517.1 Cr in FY23 from INR 453.9 Cr in the previous fiscal year. 

Read: iD Fresh Food Earned INR 479 Cr By Selling Idli & Dosa Batter In FY23

IndiaMART Nears INR 1,000 Cr In Sales

The only new-age publicly listed ecommerce marketplace, IndiaMART, witnessed a slight improvement in its revenue in the financial year ended March 31, 2023. Dinesh Agarwal-led B2B ecommerce marketplace reported an operating revenue of INR 985.3 Cr in FY23, a 31% increase from INR 753.4 Cr it reported in the previous fiscal year.  

The company’s profit dipped around 5% to INR 283.8 Cr in FY23 as compared to INR 298 Cr it had reported in the previous fiscal year. 

In Q1 FY24, it reported a consolidated revenue of INR 282.1 Cr, up 25.65% YoY. 

Read: IndiaMART At 52-Week High Following Q1 Results

Indifi In The Black In FY23

Lendingtech startup Indifi Technologies turned profitable in the financial year ended March 31, 2023. The Delhi NCR-based startup reported a net profit of INR 5.1 Cr in FY23 as compared to a loss of INR 32.8 Cr in FY21. 

Revenue from operations jumped over 2X to INR 197.9 Cr in FY23 from INR 96.29 Cr in the previous fiscal year. 

The startup’s total expenditure stood at INR 202.8 Cr in FY23, an increase of 1.4X from INR 138.4 Cr in the previous fiscal year. 

Read: Alok Mittal Led Indifi Reports INR 5.1 Cr Profit In FY23

INDMoney’s Operating Revenue Doubles 

Investment tech startup INDmoney reported a 7.7% rise in its net loss to INR 73.9 Cr in FY23 from INR 68.6 Cr in the previous fiscal year.

The startup’s operating revenue  increased to INR 40.6 Cr during the year from INR 21.8 Cr in FY22.

INDmoney’s overall spending grew 1.5X to INR 200 Cr in FY23 from INR 133.4 Cr in the prior fiscal year. 

Read: INDmoney’s FY23 Net Loss Widens To INR 73.9 Cr, Revenue More Than Doubles

Info Edge In The Red In FY23, Revenue Crosses INR 2,000 Cr Mark

Sanjeev Bikhchandani-led Info Edge, the first Indian internet company to go public, reported a 47.6% jump in operation revenue to INR 2,345.7 Cr in FY23 from INR 1,589 Cr it had reported the previous year. However, the company slipped in the red in FY23. 

The parent entity of Naukri.com reported a net loss of INR 70.4 Cr in FY23 as against a net profit of INR 1,288.2 Cr in FY22. It must be noted that Info Edge wrote off investment worth INR 276 Cr in Rahul Yadav led 4B Network during this period. 

However, it reported a profit of INR 147.4 Cr in the first quarter of FY24. 

Read: Info Edge Back In The Black With INR 147.4 Cr Net Profit In Q1

InsuranceDekho Narrows Loss To INR 51.5 Cr 

InsuranceDekho, the insurance arm of CarDekho, managed to narrow its net loss by 29% to INR 51.5 Cr in FY23 from INR 72.2 Cr in FY22, on the back of a strong growth in its business.

The Haryana-based insurtech startup’s operating revenue doubled to INR 96.4 Cr during the year under review from INR 47.9 Cr in the previous fiscal year. The startup’s total expenses rose 25% to INR 151.8 Cr from INR 121 Cr in FY22

Read: InsuranceDekho’s Net Loss Narrows 29% To INR 51.5 Cr In FY23

Jar Spent INR 16 To Earn Every Rupee

Fintech startup Jar’s loss increased 77% to INR 122.8 Cr in FY23 from INR 69.5 Cr in FY22.

The Bengaluru-based investment tech startup’s revenue from operations jumped to INR 8.7 Cr in FY23 from INR 73.8 Lakh a fiscal ago. 

The Tiger Global-backed startup’s expenses doubled to INR 137.5 Cr in FY23 from INR 70.3 Cr in FY22.

Read: Tiger Global-Backed Jar Spent INR 16 To Earn INR 1 In FY23

Jupiter Spent INR 54 To Earn Every Rupee

Neobanking soonicorn Jupiter Money’s loss jumped over 2X to INR 327 Cr in FY23 from INR 156.3 Cr in the previous fiscal, hurt by a sharp jump in its employee benefit expenses.

The Jitendra Gupta-led startup reported an astronomical increase in revenue to INR 7.1 Cr from a mere INR 40 Lakh it had reported in the previous year. The startup’s FY23 expenses increased 115% to INR 383 Cr in FY23 from INR 178 Cr in FY22.

Read: Neobank Jupiter Spent INR 54 To Earn Every Rupee In FY23

Justdial’s Profit More Than Doubles In FY23

Reliance-acquired hyperlocal search engine Justdial reported a 130% jump in profit in the financial year ended March 31, 2023. The Mumbai-based company reported a net profit of INR 162.7 Cr in FY24, a 2.2X increase from INR 71 Cr it had reported in the previous financial year. 

The company reported an operating revenue of INR 844.7 Cr in FY23, a 30.5% increase from INR 647 Cr it had reported in the previous year. 

Even in the first quarter of the ongoing financial year, the company reported a net profit of INR 83.4 Cr, a 72% increase from INR 48.4 Cr it had reported in the corresponding quarter of previous fiscal year. Operating revenue stood at INR 247 Cr in Q1 FY24.

Read: Justdial’s User Traffic Crosses 17 Cr Mark In Q1, Posts Record Revenue Of INR 247 Cr

LEAD School’s Loss Narrows 

Mumbai-based edtech startup LEAD School’s net loss declined 18.5% to INR 321.9 Cr in FY23 from INR 395.3 Cr in FY22 on strong growth in business and reduction in cash burn.

The startup’s revenue from operations increased by more than 2X to INR 273.1 Cr in FY23 from INR 132.3 Cr in the previous fiscal year, as per its filing with the Ministry of Corporate Affairs.

Total expenses increased over 14.7% to INR 617.4 Cr in FY23 from INR 538.1 Cr in FY22. 

Read: LEAD School’s FY23 Loss Narrows 18.5% to INR 322 Cr

Licious Narrows Loss By 38% To INR 529 Cr

Bengaluru-based meat delivery startup Licious witnessed a marginal rise of 9.5% in its operating revenue to INR 748 Cr in FY23 from INR 682.5 Cr in the previous fiscal year.

Meanwhile, the startup managed to decrease its net loss by over 38% to INR 528.5 Cr in FY23 from INR 855.6 Cr in the previous year due to reduction in its cash burn. 

Licious’ total expenses rose 9.8% to INR 1,309.2 Cr in FY23 from INR 1,191.4 Cr in the previous fiscal year. 

Read: Licious Sold Meat Worth INR 748 Cr In FY23 But Growth Plateau

Mamaearth Slips Into The Red 

IPO-bound D2C unicorn Mamaearth slipped into the red with a net loss of INR 151 Cr in FY23 as against a net profit of INR 14.4 Cr in the previous fiscal year on the back of a one-time loss of INR 155 Cr.

The startup reported an operating revenue of INR 1,492.7 Cr in FY23, a jump of 58% from INR 943.4 Cr in the previous fiscal year. Total expenditure surged 59% to INR 1,501.6 Cr in FY23 from INR 942 Cr in the previous year, in line with the increase in its operating revenue.

Read: Goodwill Impairment Hits IPO-Bound Mamaearth, Posts INR 151 Cr Loss In FY23

MapmyIndia’s Profit Crosses INR 100 Cr Mark

Geotech startup MapmyIndia saw a 40% jump in operating revenue to INR 281.4 Cr in the financial year ended March 31, 2023 from INR 200 Cr in the previous fiscal year. Besides increase in operating revenue, the startup reported a jump of 32% in profit on a YoY basis to INR 107.5 Cr in FY23. 

In Q1 FY24, it reported a 32.2% YoY rise in consolidated net profit to INR 32 Cr.

Read: MapmyIndia Q1 Net Profit Zooms 32.2% YoY To INR 32 Cr

Matrimony Sees Dip In Profit In FY23

Indian online matchmaking site Matrimony saw its profit after tax slip 13% to INR 46.6 Cr in  FY23 from INR 53.5 Cr in the previous financial year. The matrimonial site’s operating revenue rose just 5% to INR 455.7 Cr in FY23 from INR 434.4 Cr in the previous fiscal year.

Matrimony saw a 18% increase in profit to INR 4.16 Cr in the first quarter of FY24 as against INR 11.95 Cr it had reported in the corresponding quarter in previous year. 

Read: Matrimony’s Q1 PAT Rises 18% YoY To INR 14 Cr

MediBuddy’s Loss Crosses INR 300 Cr Mark

Bengaluru-based healthtech startup MediBuddy’s net loss widened 24% to INR 321.7 Cr in FY23 from INR 259.3 Cr in the previous fiscal year.

The operating revenue of the startup, founded by Satish Kannan and Enbasekar Dinadayalane, grew 27.2% to INR 297.7 Cr during the year under review from INR 234.1 Cr in FY22.

MediBuddy’s total expenses jumped over 30% to INR 648.9 Cr in FY23 from INR 497.4 Cr in the previous year, with the cost of materials consumed being the single biggest contributor at 35%.

Read: MediBuddy’s FY23 Loss Jumps 24% To INR 321.7 Cr As Business

Fintech Giant MobiKwik Narrows Loss To INR 83.8 Cr

Delhi NCR-based fintech unicorn MobiKwik’s net loss fell 35% in the financial year ended March 31, 2023. The startup reported a net loss of INR 83.8 Cr in FY23 as against a loss of INR 128.1 Cr in the previous fiscal year. 

While the startup reduced its expenditure to INR 617 Cr in FY23 from INR 652.5 Cr in the previous fiscal year, MobiKwik’s operating revenue remained almost flat at INR 539.4 Cr in FY23. 

Read: MobiKwik’s FY23 Loss Declines 35% To INR 84 Cr, Operating Revenue Flat

Moglix’s Revenue Crosses INR 4,000 Cr Mark

Rahul Garg’s B2B ecommerce startup Moglix reported an operating revenue of INR 4,664.7 Cr in FY23, a jump of 83% from INR 2,554.6 Cr in the previous year. The Bengaluru-based startup saw its loss increase 12% to INR 196 Cr from INR 175.3 Cr in FY22. Total expenditure jumped 80.5% to INR 4,941 Cr in FY23 from INR 2,736.8 Cr in FY22. 

Earlier this year, the Tiger Global-backed startup laid off around 40 employees. 

Read: Moglix FY23 Revenue Jumps To $560 Mn, Founder Sells Shares Worth $10 Mn

Nazara’s Sales Zooms Past INR 1,000 Cr Mark

Nitish Mittersain-led gaming company Nazara Technologies saw a sharp increase in revenue in the financial year ending on March 31, 2023. The Mumbai-based technology company reported an operating revenue of INR 1,091 Cr in the financial year under review, a 75% jump from INR 621.7 Cr it had reported in the previous year. Profit jumped 21% to INR 61.4 Cr from INR 50.7 Cr in FY22. 

In the first quarter of FY24, the company saw its operating revenue jump to 14% to INR 254.4 Cr during the quarter under review from INR 223.1 Cr in the year-ago quarter.

In Septmeber 2023, the gaming giant also raised INR 510 Cr from Zerodha founders and SBI Mutual Fund.

Read: Nazara Tech’s Q1 Net Profit Soars 31% YoY To INR 20.9 Cr

NeoGrowth Turns Profitable In FY23

Mumbai-based non-banking financial company (NBFC) NeoGrowth turned profitable in the financial year ended March 31, 2023. The NBFC reported a profit of INR 17.2 Cr in FY23 as against a net loss of INR 39.4 Cr in FY22. 

The Lighrock-backed NBFC reported an operating revenue of INR 380.8 Cr in FY23, a meager 5.3% increase from INR 361.5 Cr in the previous year. Meanwhile, it saw a 13.7% decline in expenses to INR 357.4 Cr from INR 414.5 Cr in FY22. 

Read: NeoGrowth In The Black In FY23, Posts Profit Of INR 17.2 Cr

Noise Profits Takes A Plunge

Gurugram-based bootstrapped startup Noise saw its profit nosedive to INR 88 Lakh in the financial year 2023-23 (FY23) from INR 35.5 Cr a year ago.

However, the startup’s operating revenue jumped 1.8X to INR 1,426.5 Cr in FY23 from INR 792.8 Cr in FY22. 

The smartwatch and earphone manufacturer’s expenses surged 1.9X to INR 1,431.6 Cr in FY23 from INR 752.6 Cr in FY22. 

Read: Noise’s FY23 Revenue Soars Past INR 1,400 Cr, But Profit Fails To Create A Buzz On Rising Expenses

Nykaa Reports 50% Dip In Profit In FY23

Beauty fashion giant Nykaa, which listed on the bourses in 2021, reported an operating revenue of INR 5,143.8 Cr in FY23, a 36% increase from INR 3,773.9 Cr it had reported in the previous fiscal year. 

The Falugni Nayar-led ecommerce startup saw its profit dip by around 50% to INR 21 Cr in the year under review as compared to INR 41 Cr it had reported in the previous fiscal year.

Employee benefit expenses jumped to INR 492 Cr in FY23 from INR 326.4 Cr in FY22. Of late, the company has also seen several top-level exits.

However, the Mumbai-based company posted a net profit of INR 5.4 Cr in Q1 FY24 as compared to a profit of INR 5 Cr in the same quarter of previous fiscal year. 

Read: Nykaa Q1: Net Profit Rises 8% YoY To INR 5.4 Cr

OfBusiness’ Revenue Crosses INR 15,000 Cr Mark

Delhi NCR-based B2B marketplace OfBusiness’ revenue from operation crossed the INR 15,000 Cr mark in FY23. The unicorn marketplace reported an operating revenue of INR 15,342.5 Cr in FY23, an increase of 115% from INR 7,139.5 Cr in the previous fiscal year.

Net profit surged 130% to INR 463.2 Cr in FY23 from INR 201.1 Cr in the previous fiscal year. 

Total expenditure more than doubled to INR 15,037.4 Cr during the year under review from INR 6,993.5 Cr in FY22

Read: OfBusiness Posts INR 463 Cr Profit In FY23, Revenue Crosses INR 15,000 Cr Mark

OneCard’s Operating Income Jumps 6X

Credit card startup OneCard reported a 6X increase in its operating revenue to INR 541.1 Cr in FY23 from INR 83.7 Cr in the previous fiscal year. 

Meanwhile, loss more than doubled to INR 405.6 Cr in FY23, an increase of 122% from INR 182.7 Cr in FY22. 

Total expenditure rose 3.5X to INR 999.5 Cr in FY23 from INR 280.6 Cr in the previous fiscal year. 

Read: Fintech Unicorn OneCard Spent 60% Of Its Operating Revenue On Advertising In FY23

Oxyzo’s Profit Triples In FY23

Fintech unicorn Oxyzo’s profit after tax almost tripled to INR 197.5 Cr in the financial year ended March 31, 2023 from INR 69.3 Cr in the previous financial year. 

Oxyzo’s revenue from operations increased by over 82% to INR 570 Cr in FY23 from INR 313 Cr in the previous financial year. 

The company also reported a 1.7X jump in employee benefit expense to INR 78 Cr in FY23 from INR 46 Cr in the previous year. 

Read: Fintech Unicorn Oxyzo’s FY23 PAT Jumps Over 2.8X To INR 198 Cr

OYO’s Loss Declines 34% To INR 1,287 Cr 

IPO-bound hospitality unicorn OYO reported a 34% decrease in its net loss to INR 1,286.5 Cr in FY23 from INR 1,941.5 Cr in the previous fiscal year, as expenses declined marginally despite growth in business. 

The SoftBank-backed startup’s operating revenue grew 14% to INR 5,463.9 Cr in FY23 from INR 4,781.3 Cr in the previous fiscal year. Total expenditure fell 3% to INR 6,799.6 Cr from INR 6,985.3 Cr in the previous fiscal year. 

Read: IPO-Bound OYO’s Loss Declines 34% To INR 1,287 Cr In FY23

Paper Boat’s Sales Cross INR 500 Cr Mark

Hector Beverages, the parent company Paper Boat, saw its net loss widen 71% to INR 90.6 Cr in the financial year FY23 from INR 53 Cr in FY22.

The juice maker’s loss widened, despite it crossing the INR 500 Cr mark in sales for the first time. The startup’s sales rose 56% to INR 504 Cr during the year under review from INR 324 Cr in FY22.

Paper Boat’s total expenses rose to INR 599.1 Cr in FY23 from INR 378.1 Cr in the previous fiscal year.

Read: Paper Boat’s FY23 Loss Surges 71% To INR 90.6 Cr, Revenue Crosses INR 500 Cr Mark

PayMate Manages To Narrow Its Loss

IPO-bound B2B payments solutions provider PayMate managed to narrow its consolidated net loss by a marginal 3.5% to INR 55.7 Cr in FY23 from INR 57.7 Cr in the previous fiscal year. On the other hand, operating revenue rose 11.7% to INR 1,350.1 Cr in FY23 from INR 1,208.9 Cr in FY22.

The fintech startup’s total expenses increased 11% to INR 1,407.3 Cr during the year under review from INR 1,266.9 Cr in FY22. In that, the cost of materials accounted for a significant 95%.

Read: IPO-Bound PayMate’s FY23 Loss Narrows Marginally To INR 55.7 Cr

Paytm’s FY23 Loss Drops By 26%

Vijay Shekhar Sharma-led Paytm improved its financial performance in FY23. The Delhi NCR-based fintech giant reported a 1.6X jump in operating revenue at INR 7,990.3 in FY23 from INR 4,974.2 Cr in the previous fiscal year. 

Its net loss also reduced 26% to INR 1,766.5 Cr in FY23 from INR 2,396.4 Cr in the previous fiscal year. 

Even in the first quarter of FY24, the startup reported a revenue of INR 2,342 Cr, a 39% jump from INR 1,680 Cr it reported in the previous quarter.

Read: Paytm Q1 Net Loss Declines 45% YoY To INR 358.4 Cr But Jumps 113% QoQ

PB Fintech’s Operating Revenue Jumps To INR 2,558 Cr

Mumbai-based insurtech startup PB Fintech saw its operating revenue jump over 80% to INR 2,557.8 Cr in FY23 from INR 1,425 Cr in the previous fiscal year. Despite the startup’s advertisement expense jumping 1.6X to INR 1,357 Cr in FY23, PB Fintech reduced its net loss by 41.4% to INR 488 Cr from INR 832.9 Cr in FY22. 

In the first quarter of FY24, the startup managed to reduce its loss by over 94% to INR 11.9 Cr from INR 204 Cr in the year-ago quarter.

Read: PB Fintech’s Q1 Net Loss Narrows 94% YoY To INR 11.9 Cr

Porter’s FY23 Revenue Crosses INR 1,700 Cr Mark

Intra-city logistics service provider Porter reported a 2X jump in operating revenue on a YoY basis in the financial year ended March 31, 2023. The Tiger Global-backed startup reported an operating revenue of INR 1,753.5 Cr in the year under review as against INR 847.6 Cr in the previous fiscal year. 

Porter’s net loss jumped over 43% to INR 157.7 Cr in FY23 as compared to INR 122 Cr in the previous year. The startup, which has raised $132 Mn in funding so far, spent INR 185 Cr on employee benefit expenses, a 75% increase from INR 106 Cr in the previous year. 

Read: Logistics Startup Porter’s Operating Revenue Doubles To INR 1,753 Cr In FY23

Purplle’s Sales Inches Closer To INR 500 Cr Mark

Beauty ecommerce marketplace Purplle’s operating revenue more than doubled to near the INR 500 Cr mark during the year ended March 31, 2023. The startup’s operating revenue or sales stood at INR 474.9 Cr in FY23, an increase of 116% from INR 219.8 Cr in FY22. 

Despite the rise in operating revenue, Purplle’s net loss grew 13% to INR 230 Cr from INR 203.6 Cr in FY22. 

The startup’s total expenditure grew 71% to INR 738.3 Cr from INR 431.2 Cr in FY22.

Read: Purplle’s FY23 Sales Inch Closer To INR 500 Cr Mark, Loss Widens To INR 230 Cr

RapiPay’s Loss Doubles In FY23

After raising $15 Mn in 2022, fintech startup RapiPay saw its net loss jump over 2X in the financial year ended March 31, 2023. The Noida-based startup incurred a net loss of INR 93.3 Cr in FY23 as against a loss of INR 40 Cr in the previous financial year. The significant rise in startup’s loss could be attributed to an increase in service and commission charges, which grew to INR 360.8 Cr in FY23 from INR 322.2 Cr in the previous year.

The startup’s revenue from operations also rose to INR 439.2 Cr in FY23 as compared to INR 371.4 Cr in the previous fiscal year. 

Read: Fintech Startup RapiPay’s Net Loss Jumps 2.3X To INR 93.3 Cr In FY23

RateGain’s Profit Jumps Over 700%

Traveltech SaaS startup RateGain reported a whopping 714% jump in profit to INR 68.4 Cr in FY23 from INR 8.4 Cr in the previous fiscal year. The Delhi NCR-based company saw its revenue from operations jump over 54% to INR 565 Cr from INR 366 Cr in FY22. 

In Q1 FY24, the company tripled its profit after tax to INR 24.9 Cr from INR 8.4 Cr in the previous year. The company reported an 80% YoY increase in operating revenue to INR 214.5 Cr in Q1 FY24.

Read: RateGain Q1 PAT Almost Triples YoY To INR 24.9 Cr On Robust Travel Demand

Recykal Slips Into The Red 

Morgan Stanley-backed waste management marketplace Recykal slipped into the red in FY23, reporting a net loss of INR 25.7 Cr as against a net profit of INR 1.2 Cr in FY22. 

However, the Hyderabad-based startup’s operating revenue jumped 291% to INR 745.1 Cr in FY23 from INR 190.4 Cr in the previous fiscal year. 

Read: Morgan Stanley-Backed Recykal Slips Into The Red, Posts INR 25.7 Cr Loss In FY23

Rupeek’s Loss Declines 23% 

Gold loan startup Rupeek reported a 22.7% narrowed loss of INR 281.6 Cr in FY23 from INR 364.4 Cr in FY22. The Bengaluru-based startup’s revenue from operations dropped 27.7% to INR 88.9 Cr in FY23 from INR 122.9 Cr in FY22.

Total expenses fell one-fourth to INR 376.9 Cr in FY23 from INR 499.4 Cr in the previous fiscal year.

Read: Fintech Startup Rupeek’s FY23 Loss Declines 23% To INR 282 Cr, Sales Slide 28%

Pine Labs-Owned Setu’s Loss Jumps Over 100%

Bengaluru-based fintech startup Setu’s FY23 net loss jumped 118% year-on-year (YoY) to INR 62 Cr. The startup’s operating revenue increased 22% to INR 14.2 Cr from INR 11.6 Cr a fiscal ago.

The fintech startup’s overall expenditure rose by over 77% to INR 79.6 Cr during the year under review from INR 44.9 Cr it spent in the previous fiscal year. 

Read: Pine Labs Owned Setu Spent INR 5.6 To Earn Every Rupee In FY23

Servify’s Operating Revenue Almost Doubles

Device management startup Servify’s net loss narrowed to INR 229.1 Cr in FY23 from INR 2,860.8 Cr posted in the previous fiscal, helped by a sharp decline in non-operating expenses.

Servify’s operating revenue almost doubled to INR 313 Cr during the year under review from INR 611.2 Cr in FY22.

The startup reported an over 73% decline in its total expenses to INR 846.7 Cr in FY23 from INR 3,176.4 Cr the previous year.

Read: Decline In Non-Operating Expenses Helps Servify Narrow FY23 Loss Over 90% To INR 229 Cr

ShareChat’s Loss Crosses INR 5,000 Cr Mark

India’s indigenous social media platform ShareChat saw its loss increase to INR 5,144 Cr in FY23 on the back of amortisation expenses due to the acquisition of MX Taka Tak. In FY22, the startup’s loss stood at INR 2,988.6 Cr in FY22.

ShareChat’s revenue from operations increased 59% to INR 552.7 Cr in FY23 from INR 346.9 Cr in FY22.

The startup’s total expenses increased 72% to INR 5,862.1 Cr in FY23 from INR 3,407.5 Cr

Read: Google Backed ShareChat’s Losses Ballooned To INR 4,064 Cr In FY23 

Shiprocket’s Revenue Crosses INR 1,000 Cr Mark

Zomato-backed logistics unicorn Shiprocket’s revenue from operations increased over 78% to INR 1,088.8 Cr in FY23 from INR 610.5 Cr on the back of its acquisition spree.

The startup’s loss increased over 425% to INR 333.8 Cr during the year under review from INR 63.6 Cr in the previous fiscal year.

On the expenses front, the Saahil Goel-led startup spent a total INR 1,397 Cr in FY23 as against INR 697.8 Cr it had spent in FY22.

Read: Shiprocket’s FY23 Revenue Crosses INR 1,000 Cr Mark, Reports 3.6X Surge In Loss

Spacetech Startup Skyroot’s Loss Doubles 

Indian spacetech startup Skyroot Aerospace saw its standalone net loss widen to INR 55.2 Cr in FY23 from INR 23.7 Cr in the prior fiscal year.

While the startup’s operating revenue rose to INR 44 Lakh in FY23 from INR 1.5 Lakh in the previous year, its expenses surged to INR 63 Cr during the year under review from INR 24 Cr in FY22.  

Read: Skyroot Aerospace’s FY23 Net Loss Jumps Over 2X To INR 55 Cr

Tata 1mg’s Sales Cross INR 1,600 Cr Mark

The online pharmacy, owned by the Tata Group, saw its net loss jump over 2X to INR 1,254.8 Cr in FY23 from INR 526 Cr in FY22. 

However, operating revenue jumped over 2.6X to INR 1,627 Cr in FY23 from INR 627 Cr it reported in the previous fiscal year. Unlike most startups, Tata 1mg reduced its marketing expenditure by 25% to INR 135 Cr in FY23 from INR 180 Cr in FY22. 

Read: Tata 1mg’s Net Loss Soars 2.3X To INR 1,259 Cr In FY23

Testbook’s Loss Almost Triples In FY23

Government job test prep startup Testbook’s loss surged 2.7X to INR 129.8 Cr in FY23 from INR 48 Cr in FY22.  The Mumbai-based startup’s revenue from operations rose 59% to INR 56.1 Cr in FY23 from INR 35.2 Cr in the previous fiscal year. 

Testbook’s expenses rose a whopping 2.2X to INR 186.7 Cr during the year under review from INR 81.4 Cr in the previous year, with employee benefit expenses climbing 200% to INR 95 Cr from INR 31.8 Cr in FY22. 

Read: Testbook Spent INR 3.3 To Earn Every Rupee From Operations In FY23

Tracxn Reports Profit In FY23

The Bengaluru-based market intelligence startup turned profitable in the financial ending on March 31, 2023. In FY23, Tracxn reported a net profit of INR 33 Cr as opposed to a net loss of INR 4.4 Cr it had reported in the previous fiscal year. Tracxn’s operating revenue stood at INR 78.1 Cr, a 23% increase from INR 63.4 Cr it reported in the previous fiscal year. 

However, Tracxn’s net profit declined 18% to INR 0.69 Cr in Q1 FY24 from INR 0.84 Cr in the year-ago quarter. 

Read: Tracxn’s Q1 Net Profit Halves QoQ To INR 69 Lakh, Revenue Slips 2.5%

True Balance’s Profit Jumps Over 17X 

Softbank-backed digital payments and lending platform True Balance saw its profit jump over 17X in the financial year 2022-23 (FY23). The Delhi NCR-based fintech startup reported a net profit of INR 59 Cr in the year under review, a 1,600% jump from INR 3.4 Cr it reported in the previous fiscal year. 

True Elements’ Spent INR 84 Cr To Earn INR 57 Cr

Marico-owned healthy snacks brand True Elements’ net loss jumped 37% to INR 18.6 Cr in FY23 from INR 13.6 Cr in FY22. 

While the startup’s operating revenue saw a 25% jump to INR 57.3 Cr in FY23 from INR 45.8 Cr in FY22, expenditure increased over 44% to INR 84.2 Cr in FY23 from INR 58.4 Cr in the previous fiscal year. The startup’s biggest expenses, cost of materials consumed, increased over 43% to INR 36.5 Cr in FY23 from INR 25.5 Cr.

Read: True Elements Spent INR 84 Cr To Earn INR 57 Cr From Selling Healthy Snacks In FY23

Udaan’s FY23 Revenue Declines 43%

Bengaluru-based B2B ecommerce startup Udaan’s operating revenue declined 43% to INR 5,609.3 Cr in FY23 from INR 9,897.3 Cr in the previous fiscal year. Its net loss also fell 33.5% to INR 2,076 Cr in FY23 from INR 3,123.4 Cr in the previous fiscal year.

As per some media reports, Udaan is in discussions to raise around $250 Mn in  fresh round of funding. 

Read: Udaan’s Operating Revenue Drops 43% To INR 5,609 Cr In FY23

Unicommerce’s Profit Inches Up 

IPO-bound SaaS startup Unicommerce’s operating revenue zoomed 52% to INR 90 Cr in the financial year 2022-23 from INR 59 Cr in the previous fiscal year on strong demand for its services.

This resulted in the SoftBank-backed startup’s net profit rising 8% to INR 6.4 Cr in FY23 from INR 5.9 Cr in FY22.

The startup’s overall expense rose 55% to INR 84.1 Cr in FY23 from INR 54.4 Cr in the previous fiscal year.

Read: IPO-Bound Unicommerce Posts INR 6.4 Cr Profit In FY23, Revenue Nears INR 100 Cr Mark

Uniphore’s Net Profit Quadruples

Uniphore, one of the few profitable unicorns, saw its net profit rise further in FY23. The startup’s profit jumped over 4X to INR 142.7 Cr in FY23 from INR 33.4 Cr in FY22. This was the second consecutive profitable year for the startup after it reported a net loss of INR 281.8 Cr in FY21. 

However, operating revenue fell 28% to INR 488.4 Cr and overall expenses also dropped 29% to INR 492.7 Cr in FY23. 

Read: Uniphore’s FY23 Profit Quadruples To INR 143 Cr As Revenue From India Soars 272X

upGrad’s Loss Jumps Past INR 1,000 Cr Mark

Mumbai-based edtech unicorn upGrad’s net loss surged 76% to INR 1,141.5 Cr in the financial year 2022-23 (FY23) from INR 648.2 Cr in the previous fiscal year.

The startup’s bottom line took a hit due to goodwill writedown of INR 410 Cr despite its operating revenue crossing the INR 1,000 Cr mark. The Ronnie Screwvala-led startup reported an operating revenue of INR 1,169.6 Cr in FY23, an increase of 97% from INR 595 Cr in the previous fiscal year.

The startup’s overall expenses increased 56% to INR 1,938 Cr from INR 1,241 Cr reported in the previous fiscal year.

Read: upGrad’s FY23 Loss Surges To INR 1,141.5 Cr On Goodwill Writedown Of INR 410 Cr

Urban Company’s Employee Expenses Drops 15%

Delhi NCR-based consumer service startup Urban Company saw its net loss drop by 39% to INR 312.4 Cr in FY23 from INR 514 Cr in the previous fiscal year. The Dragonner-backed unicorn reported a net operating revenue of INR 636.5 Cr in FY23, a 45% jump from INR 437 Cr it had reported in the previous financial year. 

Interestingly, the company reduced its employee benefit expenses by 15% to INR 377 Cr in FY23 from INR 443.8 Cr in the previous fiscal year. Since the beginning of this year, the startup has been facing a series of protests from its partners over permanent blocking of their IDs due to a sudden increase in the required customer rating to continue working with the platform.

 Read: Urban Company’s India Biz Achieves Adjusted EBITDA Breakeven In Q1 FY24

Wakefit’s Operating Revenue Crosses INR 800 Cr Mark

D2C furniture and mattress startup Wakefit’s net loss widened by 37% to INR from INR 107 Cr in the previous fiscal year. 

Revenue from operations increased 28% to INR 813 Cr during the year under review from INR 632.5 Cr in the previous fiscal year.  Total expenses grew 30% to INR 965.6 Cr in FY23 from INR 743.5 Cr in the previous fiscal year.

Read: After Spending INR 96 Cr On Advertising, Wakefit Incurs INR 146 Cr Loss In FY23

Xpressbees’ Loss Surges Over 6X 

Logistics unicorn Xpressbees’ net loss widened over 500% to INR 180.4 Cr in FY23 from INR 27.1 Cr in FY22. Operating revenue increased a mere 1.3X to INR 2,531.5 Cr during the year under review from INR 1,904.4 Cr in FY22.  

The TPG-backed startup’s total expenses grew 42% to INR 2,784.7 Cr in FY23 from INR 1,957.1 Cr in the previous fiscal year. 

Read: Logistics Unicorn Xpressbees’ FY23 Loss Surges Over 500% To INR 180 Cr

Yulu’s Loss Inches Closer To INR 100 Cr Mark

Emobility startup Yulu saw its consolidated net loss widen 71% to INR 94.9 Cr in FY23 from as against INR 55.5 Cr in FY22.

The cleantech startup’s operating revenue rose to INR 41.7 Cr, a 43.8% from INR 29 Cr it reported in the previous fiscal year. 

Yulu reported a total expenditure of INR 140.1 Cr in FY23, a sharp 60.5% increase from INR 87.3 Cr spent in the prior fiscal.

Read: Yulu’s FY23 Net Loss Widens 71% To INR 94.9 Cr As Business Expands

Zepto’s Revenue Suprasses INR 2,000 Cr Mark

Zepto, the latest entrant to the unicorn club, reported an operating revenue of INR 2,024.3 Cr in FY23, a 14X increase from INR 140.7 Cr in the previous fiscal year.

At the same time, the startup’s loss soared 3.2X to INR 1,272.4 Cr from INR 390 Cr in FY22.

Total expenses stood at INR 3,350 Cr in FY23 as against INR 532.7 Cr in the previous year.

Read: Zepto’s FY23 Revenue Jumps 14X To INR 2,078 Cr, Loss Triples To INR 1,272 Cr

Kamath Brothers’ Led Zerodha’s Revenue Inches Closer To INR 7,000 Cr Mark

Bootstrapped stock-broking platform Zerodah, led by Nithin and Nikhil Kamath, reported a total income of INR 6,875 Cr in FY23, an increase of 38% from INR 4,964 Cr in the previous fiscal year. 

The Bengaluru-based unicorn, which is valued at $3.6 Bn, saw its net profit jump 39% to INR 2,907 Cr from INR 2,094.3 Cr in FY22.

Read: Zerodha’s FY23 Net Profit Rises To INR 2,907 Cr As Revenue Nears INR 7,000 Cr Mark

Zomato’s Loss Under INR 1,000 Cr

Delhi NCR-based food delivery giant saw its consolidated revenue surge over 68% to INR 7,079.4 Cr during the year under review. In the previous financial year, the startup had reported an operating revenue of INR 4,192.4 Cr. Zomato, which completed the acquisition of quick commerce delivery startup Blinkit in FY23, saw its net loss drop by 20.5% to INR 971 Cr in FY23 from INR 1,222.5 Cr in FY22. 

In the first quarter of FY24, the startup reported an operating revenue of INR 2,416 Cr as against INR 1,413.9 Cr in Q1 FY23. The startup also reported its first-ever profitable quarter. It posted a consolidated profit after tax (PAT) of INR 2 Cr in Q1 as against a consolidated net loss of INR 186 Cr in the corresponding quarter of the previous fiscal. 

Read: Zomato Turns Profitable, Reports INR 2 Cr PAT In Q1

Edited By: Vinaykumar Rai
Last Updated: 16th December, 17:30 PM IST

The post Indian Startup FY23 Financials Tracker: Tracking The Financial Performance Of Top Startups appeared first on Inc42 Media.

Union minister Smriti Irani took a dig at the venture capital (VC) funds for not backing enough women-led innovative startups, and instead focussing more on entities founded by men.

At an event on Friday (December 16), the minister said that there are many women-led startups in science and technology but they are not getting translated into commercial ventures.

“Even today, risk taking by VCs for women-led initiatives which are based on innovation is far lower as compared to those by men,” PTI reported Irani as saying. 

The union minister for women and child development acknowledged that her recent statement in Parliament opposing period leaves for women has caused an “uproar” but stuck to her stance, saying allowing so will have deep concerns on privacy.

Irani also suggested business schools impart negotiating skills to their students, especially girls. 

The minister’s statement is in line with the findings of Inc42’s funding report. Amid the funding winter, the women-led startups saw an 88% YoY decline in funding during H1 2023. 

The Indian Tech Startup Funding Report H1 2023 points out that Indian startups with at least one woman founder raised $290 Mn between January and June 2023 versus $2.4 Bn raised in the same period a year ago. In terms of the deal count, the women-led startups saw a 55% YoY decline to 62 during H1 2023 from 140 during the same period of 2022. 

However, the startup landscape of India is witnessing a shift never seen before. Even amid the crisis, women founders and investors are gradually seeing an increase in their share in the Indian startup ecosystem. 

Anjali Bansal, Deepika Padukone, Aarti Gupta, Bhawna Bhatnagar, Debjani Ghosh, Namita Thapar, and Padmaja Ruparel are among the leading women investors and entrepreneurs who are frequently talked about in the startup ecosystem.

The post VCs Betting On Fewer Women Startups Than Men-Led Ones, Says Minister Smriti Irani appeared first on Inc42 Media.

What Is Fair Market Value?

Fair Market Value (FMV) refers to the price at which any tangible asset changes hands between a willing buyer and a willing seller when both parties have reasonable knowledge of the relevant facts and neither is under any compulsion to buy or sell. It represents the true and objective value of an asset in a free and open market.

FMV is used in various contexts in real estate, securities, and charitable contributions.

How Do You Calculate FMV?

The calculation of FMV can vary depending on the type of asset or property involved. Generally, FMV is determined by considering various factors such as comparable sales, income potential, replacement cost, and the condition of the asset. Common methods used to calculate FMV include:

Market Comparison Approach: This method involves comparing the asset in question to similar assets that have recently been sold in the market.

Income Approach: This approach is used for income-generating assets and considers the potential income the asset can generate in the future.

Cost Approach: This method assesses the cost to replace or reproduce the asset at the current market rates.

Is Market Value The Same As FMV?

Market value and FMV are closely related concepts but are not the same. Market value is a broader term and can sometimes include factors such as buyer and seller motivations and special circumstances.

FMV, on the other hand, focusses on a hypothetical transaction in a typical market with willing parties, devoid of external influences or pressures.

How Is FMV Calculated For Shares?

Calculating the FMV for shares typically involves evaluating the financial health of the company, its earnings, growth potential, and other relevant market factors. The market price of publicly traded shares is often used as a starting point.

For private company shares, more complex methods may be employed, considering the company’s financial statements, industry trends, and any recent transactions involving similar shares.

How Does FMV Impact Valuation Methods & Taxes?

FMV is a crucial concept in valuation methods and taxation. Its impact can be significant in determining the value of assets and in tax assessments.

Valuation Methods:

• Asset Valuation: FMV is often used to determine the value of assets during various transactions such as sales, mergers, acquisitions, or for financial reporting purposes. It helps in assessing the worth of an asset in a competitive and open market.
• Estate Planning: In estate planning or during inheritance, FMV is essential to determine the value of assets passed on to beneficiaries. It ensures fairness in the distribution of assets and can have implications for estate taxes.
• Financial Reporting: Companies use FMV for financial reporting purposes, especially for assets and liabilities carried on the balance sheet. The assigned value impacts financial ratios, disclosures, and potential impairment charges.

Tax Implications:

• Income Tax: FMV is used to determine the tax liability arising from the sale or exchange of property or assets. Capital gains or losses are calculated based on the difference between the selling price and FMV at the time of acquisition.
• Estate and Gift Tax: FMV is crucial for estate and gift tax purposes. The value of assets subject to gift tax or estate tax is based on their fair market value at the time of gifting or the decedent’s death.
• Property Tax: Local governments often use FMV to assess property taxes. The assessed value of real estate or personal property determines the tax obligation of the property owner.

Impact:

• Accuracy In Valuation: FMV ensures a fair and accurate assessment of assets, reducing the potential for undervaluation or overvaluation, which could impact tax liabilities and financial decisions.
• Compliance: Adhering to FMV standards is essential for compliance with tax laws and regulations. Failure to use an accurate FMV can lead to penalties or legal issues.
• Negotiations and Transactions: FMV plays a crucial role in negotiations, especially during transactions. Parties involved often refer to the FMV as a benchmark for fair pricing.
• Economic Conditions: Fluctuations in market conditions can impact FMV, affecting valuations and, subsequently, tax implications.

The post Here’s Everything You Need To Know About Fair Market Value appeared first on Inc42 Media.

Japanese investment major SoftBank offloaded 2.53% of its stake in PB Fintech in multiple block deals worth a cumulative INR 913.7 Cr.

SoftBank’s SVF Python II (Cayman) Limited held 1.97 Cr shares, or a 4.39% stake, in the parent entity of the insurtech platform Policybazaar in the quarter ended September 2023. 

Following the deal on Friday (December 16) involving 1.14 Cr shares, SoftBank is now expected to hold 83.23 Lakh shares in PB Fintech.

The offloaded shares were lapped up by Societe Generale, HDFC Mutual Fund, Goldman Sachs (Singapore) Pte, Smallcap World Fund, ICICI Prudential Life Insurance Company Limited, and a few others.

While Societe Generale and HDFC Mutual Fund bought 15.5 Lakh PB Fintech shares each in block deals, Government Pension Fund Global bought 16.5 Lakh offloaded shares. New World Fund lapped up 16.4 Lakh shares from SVF Python II’s offloaded stake.

SoftBank’s stake sale in PB Fintech comes a year after the Japanese conglomerate sold over 5% stake in the company last year.

Following SoftBank’s stake sale, shares of PB Fintech fell 2.3%, ending Friday’s session at INR 789.45 on the BSE.

SoftBank’s stake sale in PB Fintech comes a week after it offloaded 9.35 Cr shares of foodtech giant Zomato in an INR 1,127 Cr block deal last Friday, likely exiting the company.

In November, SVF Doorbell (Cayman) had also offloaded 2.5% of its stake in logistics unicorn Delhivery for almost INR 740 Cr. 

The Japanese investment major has been cutting its shareholding in most Indian listed entities since last year amid its increasing losses.

Meanwhile, PB Fintech has been seeing an improvement in its bottom line for the last few quarters. Its net loss declined over 89% year-on-year (YoY) to INR 21 Cr in Q2 FY24. The fintech major also reported its third consecutive adjusted EBITDA-positive quarter in Q2.

On Friday, PB Fintech also informed the exchanges that Income Tax (IT) officials ‘visited’ the offices of its subsidiary Paisabazaar earlier this week.

The post SoftBank’s Stake Sale Continues, Offloads 1.14 Cr PB Fintech Shares Worth INR 914 Cr appeared first on Inc42 Media.