Hospitality giant OYO reportedly plans to prepay nearly a third of its outstanding term loan B (TLB) via a debt buyback process. 

As per news agency PTI, OYO plans to make payments to the tune of INR 1,620 Cr ($195 Mn) to repurchase 30% of its outstanding TLB. While the repayment of the debt is scheduled for June 2026, the exercise will reportedly be fully funded with cash on the balance sheet and from the cash collateral account.

As per the report, the travel tech major will execute the buyback deal at par value via a public bidding process, which commenced on November 14 and will go on till November 18. In the event bids breach the stipulated amount, OYO will then buy the loan back on a pro-rata basis.

The buyback exercise is expected to reduce OYO’s annual interest liabilities by more than INR 225 Cr. At the end of November 13, OYO’s debt paper reportedly closed at 90 cents on the dollar. 

This comes close on the heels of OYO cofounder and CEO Ritesh Agarwal telling top brass, in an internal email, that OYO was on the way to report its maiden profitable quarter in the second quarter (Q2) of the financial year 2023-24 (FY24) with a profit after tax (PAT) of INR 16 Cr. 

Curiously, a month ago, the Delhi NCR-based hospitality unicorn was said to be in talks to refinance its $660 Mn TLB with Apollo Management. The loan was taken at the height of the Covid-19 pandemic in 2021 as the hospitality business came to a standstill the world over. 

In the past, the startup led by Ritesh Agarwal publicly announced that it was operationally profitable in FY23, with an adjusted EBITDA of INR 277 Cr. During the fiscal year, the IPO-bound hospitality unicorn slashed its net losses 34% YoY to INR 1,286.5 Cr against a 14% YoY increase in operating revenue to INR 5,463.9 Cr in FY23. 

The company had also noted that it was well-placed to achieve an adjusted EBITDA of nearly INR 800 Cr in FY24. It is largely on the back of this turnaround that the startup expects to fund the prepayment of TLB. 

Meanwhile, plans are underway for OYO’s much-awaited IPO, which has seen the departure of key executives, including OYO’s India CEO Ankit Gupta and head of OYO Europe Mandar Vaidya. Many key appointments have also been made amid a major management reshuffle at the company. 

Amid all this, Agarwal is all set to join Shark Tank India’s upcoming season as the newest shark.

The post Flush With Funds, OYO To Prepay INR 1,620 Cr Via Debt Buyback Exercise appeared first on Inc42 Media.

The Reserve Bank of India (RBI) reportedly appointed executive director P Vasudevan as the new head of the fintech department earlier this month. With this, Vasudevan has become the second top official of the department since its formation in early 2022. 

Sources told The Economic Times that Vasudevan has taken over the reins from the incumbent chief and RBI executive director Ajay Kumar Choudhary, who is said to have retired. As per the report, Choudhary has now been appointed to the board of the Reserve Bank Innovation Hub.

“He has immense experience handling the payment ecosystem in the country, which will help him while dealing with the growing fintech ecosystem in the country,” a senior fintech executive reportedly said. 

The RBI hived off a separate fintech department in 2022 to foster innovation and provide impetus to the burgeoning Indian fintech industry. It is this department that industry stakeholders have to coordinate with for regulatory push and policymaking. 

Industry executives told the publication that Vasudevan will likely focus on streamlining coordination between various supervisory departments and ironing out policy bottlenecks. 

The fintech department will be an additional charge for Vasudevan who already oversees currency management, the corporate strategy and budget department at the central bank. 

This comes barely three months after Vasudevan was appointed as the executive director of the central bank in July this year. The RBI executive previously served as the chief general manager in charge of the department of payment and settlement systems before the elevation. 

The new appointment comes as the central bank has issued a slew of diktats and directives to streamline the entire fintech ecosystem. Just this month, the RBI issued rules to directly regulate entities facilitating cross-border payments. 

It has also been tightening its grip around fintech players, especially payment aggregators, and mandating greater compliance with rules and regulations. In September, RBI deputy governor T. Rabi Sankar also pitched for the creation of self-regulatory organisations (SROs) in the fintech sector to tackle key issues such as market integrity, data privacy, and cybersecurity.

A flurry of diktats from the RBI in the past one year also forced companies to pivot while the business models of many other players have also been rendered useless. 

As the fintech space grows in prominence, it remains to be seen how the space evolves. With a new official at the helm of affairs, all eyes are now on Vasudevan as to how he walks the tightrope between regulation and innovation.

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Online travel aggregator Yatra Online saw its consolidated net losses surge nearly 11X year-on-year (YoY) to INR 17.1 Cr in the second quarter (Q2) of the financial year 2023-24 (FY24) on the back of a fall in revenues. In contrast, the company reported a net loss of INR 1.56 Cr in the year-ago period. Sequentially, the company posted a net profit of nearly INR 6 Cr in Q1 FY24. 

Revenues from operations jumped 14% YoY to INR 94.1 Cr in Q2 FY24 compared to INR 82.4 Cr in Q2 FY23. On a quarter-on-quarter (QoQ) basis, operating revenue declined 14.5% from INR 110.1 Cr in Q1 FY24.

Including other income, total income rose 8% YoY to INR 97.3 Cr in the quarter ended September 2023. 

Meanwhile, expenses continued to drag the company down. In Q2 FY24, total expenses zoomed more than 25% YoY to INR 113.5 Cr, up from INR 90.5 Cr in the year-ago period. 

Employee benefit expenses emerged as the biggest cost centre and contributed INR 36.6 Cr to the total expenses in Q2 FY24. Other expenses stood at INR 18.6 Cr and service costs accounted for nearly INR 16 Cr in Q2 FY24. 

Yatra claims to be one of the country’s largest online travel companies in terms of gross booking revenues and competes with the likes of players such as MakeMyTrip and EaseMyTrip. Yatra also claims to cater to more than 700 corporate customers and offer hotel bookings, holiday packages and homestays. 

The online travel aggregator claims to have more than 1.03 Lakh hotels in India and over 15 Lakh hotels available on its platform for booking. The Indian arm of the Nasdaq-listed Yatra Inc. made a muted debut on the Indian bourses in September this year. 

The stock got listed at INR 127.50 per share on the NSE and INR 130 on the BSE against the issue price of INR 142. Since then, the company has been hovering around the same range. Yatra closed 0.32% lower at INR 138.60 on the BSE on Tuesday (November 11).

The post After A Profitable Q1 FY24, Yatra Online Slips Into Loss In Q2 appeared first on Inc42 Media.

Shared electric mobility startup Yulu has elevated chief financial officer (CFO) Anuj Tewari to the role of its newest cofounder. 

With this, Tewari formally joins the existing three-member founding team at the startup comprising chief executive officer (CEO) Amit Gupta, chief technology officer (CTO) Naveen Dachuri, and president of ecosystem partnerships RK Misra.

Commenting on the announcement, Tewari said, “It is a great honour to become a part of Yulu’s founding team. I am humbled as I accept this responsibility and look forward to working with this unstoppable team…”

Amit Gupta, cofounder and CEO, said, “We could not have asked for a better, or more natural, choice than Anuj to join Yulu’s founding team. Over the last three years, his rich experience, uncanny insights, sheer commitment and ‘founder mentality’ have helped Yulu embark on a strong growth trajectory. His presence will be a huge asset as we pursue our ambitious growth targets. On behalf of all the co-founders and the entire Yulu team, I heartily congratulate Anuj on his new role.” 

An alumni of Kanpur’s Chhatrapati Shahu Ji Maharaj University, Tewari has a masters degree in business and commerce and is also a chartered accountant. He has nearly two decades of experience under his belt and has had stints with companies such as Barclays Bank, Kipco Asset Management Company and logistics company Agility.

Since joining the electric mobility startup in 2020, Tewari has been instrumental in shaping Yulu’s growth strategy and has led fundraising negotiations for the startup. He also oversees the company’s finances and, as per Yulu, has been the one of the driving forces to put the startup on track to becoming EBITDA-positive by the end of the year.

The elevation comes at a time when the startup has been rapidly scaling up operations. Yulu said it plans to record a 7X-8X year-on-year (YoY) jump in revenue in the financial year 2023-24 (FY24). 

It also plans to grow its fleet size by 4X over the course of the next year, and is eyeing a ‘significant share’ of the last mile mobility market in Bengaluru, Delhi, Gurugram, Mumbai and Navi Mumbai during the period. 

Founded in 2017 by Gupta, Misra, Dachuri and Hemant Gupta, Yulu operates a fleet of electric two-wheelers that cater to daily commuters and last-mile delivery executives. The startup has so far raised $105 Mn in a mix of debt and equity across multiple rounds and is backed by names such as Bajaj Auto, Blume, Magna and Rocketship.vc.

Yulu’s net loss declined to INR 55.5 Cr in FY22 from INR 61.1 Cr in the previous fiscal year. Operating revenue more than doubled to INR 29 Cr from INR 13.6 Cr in FY21.

The post Shared Mobility Startup Yulu Names CFO Anuj Tewari As New Cofounder appeared first on Inc42 Media.

Delhi government has restricted the entry of app-based taxis, like Ola, Uber from other states into the capital. This decision was made in response to the deteriorating air quality in the city.

As per an ET report, only taxis registered in Delhi will be permitted to enter the city. This measure was implemented following a Supreme Court order, which highlighted the issue of a significant number of taxis from other states entering the capital with just one passenger.

The court also criticised the ‘odd-even’ scheme, which aimed to address air pollution concerns, labeling it as mere ‘optics.’ The court directed the Delhi government to control the entry of vehicles with orange tags into the city.

Delhi’s Transport Minister, Gopal Rai, mentioned in a press conference that the Delhi government is in the process of compiling a report based on two studies evaluating the effectiveness of the ‘odd-even vehicle’ policy in reducing air pollution.

Additionally, the Supreme Court instructed the Delhi government to oversee and prevent the burning of municipal solid waste within the city or in open areas during the period when GRAP IV is in effect.

At the time of reporting, New Delhi’s real-time Air Quality Index (AQI) for PM 2.5 and PM 10 air pollution levels was recorded at 384. The current PM2.5 concentration in New Delhi is 22.5 times higher than the recommended limit provided by the WHO’s 24-hour air quality guidelines. Just last week, the city’s Air Quality Index (AQI) breached the 400 mark, reaching 476.

PM2.5 air pollution in New Delhi has been attributed to an estimated 25,000 deaths since January 1, 2021, and has cost the city’s economy approximately $3.7 Bn this year, according to Greenpeace, a non-governmental environmental organisation.

The post Delhi Bans Entry Of Ola, Uber From Other States Amid Worsening Air Quality appeared first on Inc42 Media.

EV startup Euler Motors has raised INR 120 Cr (about $14.4 Mn) in its ongoing Series C extension round from British International Investment (BII), the UK government’s development finance institution and impact investor, and Green Frontier Capital. 

Existing investors, including Athera Venture Partners, ADB Ventures, Blume Ventures, Alteria Capital, GIC Singapore, and QRG Holdings, also participated in the round. 

The funding was raised at a valuation lower than during its last fundraise, Euler Motors’ founder and CEO Saurav Kumar told ET. The three-wheeler EV manufacturer had last raised $60 Mn in its Series C round in October last year.

In a statement, Euler Motors said the fresh funds would be deployed strategically to drive its pan-India expansion initiatives as it plans to enter 40 cities by the end of FY24. 

The additional funds will also enable the startup to reinforce its service and charging network nationwide to further facilitate the adoption of electric vehicles across the country, it added.    

With the latest fund raise, Euler Motors has raised a total of INR 570 crores till date. Euler Motors said it plans to raise fresh funds over the next year as and when needed to execute its plan to scale up production, presence and services.  

Founded in 2018 by Kumar, Euler Motors is an automotive original equipment manufacturer (OEM) focused on electric commercial vehicles. 

Euler claims that its products are road-ready, technologically superior and competent for ecommerce and third party logistics. It collaborates with ecommerce players such as BigBasket, Udaan, and Flipkart and helps them turn their fleet into EVs. 

The flagship model manufactured by the startup is the HiLoad EV, which is a cargo three-wheeler offering 13 (12.96) kWh battery pack, and a 30% higher payload capacity (688 Kg), with a proprietary liquid-cooled battery. 

Besides, Euler Motors also has a charging network of more than 300 stations in Delhi and Bengauluru. 

Earlier this year, the EV startup trimmed 10% of its workforce within just six months after raising $60 Mn in its Series C funding round. Its net loss also doubled to INR 36.3 Cr in FY22 from INR 19.1 Cr in FY21.

With the increasing focus on climate change and carbon emissions, coupled with the government’s efforts to promote EVs, the funding in the EV space has also picked up.

In the commercial space, electric bus manufacturer PMI Electro Mobility Solutions recently secured INR 250 Cr in a strategic funding round to develop more innovative solutions, bring technological advancements to its production capabilities, and scale its operations. 

Besides, EV startup Raptee secured $3 Mn in its pre-Series A funding round to enhance the manufacturing facility, procure machinery and tooling for the upcoming motorcycle launch, and expand the team.

The story has been edited to update the total amount of funding raised by Euler, upon clarification from the startup.

The post EV Startup Euler Motors Raises INR 120 Cr In A Down Round appeared first on Inc42 Media.

Foodtech major Zomato reported its second consecutive profitable quarter today, with profit after tax surging to INR 36 Cr during the September quarter of the financial year 2023-24 (FY24). This was an 18X jump from PAT of INR 2 Cr in the preceding quarter. 

It must be noted that Q1 FY24 was Zomato’s maiden profitable quarter. In Q2 FY23, the company’s net loss stood at INR 251 Cr.

Interestingly, Zomato also posted a profit before tax (PBT) of INR 21 Cr in Q2 FY24, as against a loss of INR 15 Cr in the prior quarter.

Meanwhile, Zomato said its quick commerce business Blinkit also turned contribution positive for the first time in Q2 FY24, which stood at 1.3% in the reported quarter as against negative 7.3% in Q2 FY23.

Zomato’s operating income jumped to INR 2,848 Cr during the quarter under review from INR 1,661 Cr in the year-ago quarter. 

Operating revenue also grew 18% from INR 2,416 Cr in Q1 FY24.

Zomato said its gross order value (GOV) surged 47% year-on-year (YoY) to INR 11,422 Cr in Q2 FY24, with improvement witnessed across business verticals.

Food delivery GOV grew 9% QoQ and 20% YoY to INR 7,980 Cr, and is recovering well from the demand slowdown it witnessed in the last two quarters of FY23, the company said.

Zomato said that the GOV growth in its core food delivery vertical was almost entirely led by growth in order volumes, while the average order value remained largely flat. 

“Order volume growth is typically negatively impacted in this quarter due to lower delivery partner availability during rains. However, this year we were able to improve on that through better all-round execution,” Zomato said in its statement. 

Another key driver of the GOV growth during the quarter was an increasing adoption of its Gold program.

The company said it had 3.8 Mn Gold members till the end of the September quarter, who contributed almost 40% of GOV in its food delivery business. Active Gold members on the platform stood at 2 Mn at the end of June 2023.

However, the contribution margin of its food delivery business grew to 6.6% in Q2FY24 from 6.4% in Q1 FY24.

Zomato saw its consolidated adjusted EBITDA also improve to INR 41 Cr in the reported quarter from a loss of INR 192 Cr in Q2 FY23.

Where Did Zomato Spend?

Zomato’s total expenses surged over 45% YoY and 16.3% sequentially to INR 3,039 Cr in Q2 FY24.

While its spending towards the purchase of stock-in-trade almost doubled to INR 685 Cr in the reported quarter, its employee benefit expenses increased 9.4% YoY to INR 417 Cr.

In the previous quarter, Q1 FY24, Zomato spent INR 338 Cr on employee benefit expense.

Meanwhile, the company also kept spending more towards advertisement and sales promotions, which increased 18.3% YoY to INR 355 Cr.

Zomato’s delivery and related expenses surged over 1.5X YoY to INR 919 Cr in Q2 FY24.

The Outlook

Zomato said it has noticed that festivals drive stronger growth for its quick commerce Blinkit compared to the food delivery business. With major festivals like Navratri, Dussehra, and Diwali coming up in the December quarter, Zomato expects another high growth quarter from Blinkit.

“The festive period in Q3 FY24 is usually a mixed bag for the food delivery business. While people order more around the festivals, at the same time, they also travel and eat-out more in this quarter,” it said.

However, the ICC World Cup should result in additional order volumes but the demand uptick is expected to be limited to a handful of match days, the company added.

Shares of Zomato ended today’s trading session 8.3% higher at INR 116.4 on the BSE today.

The post Zomato Reports Second Profitable Quarter, Q2 PAT Surges To INR 36 Cr appeared first on Inc42 Media.

Nasdaq-listed Indian traveltech company MakeMyTrip posted a net profit of $2 Mn in the September quarter (Q2) of the financial year 2023-24 (FY24) as against a loss of $6.8 Mn reported last year.

However, on a sequential basis, the company’s net profit nosedived from $18.6 Mn in the previous quarter – Q1 FY24, which the company attributed to the seasonality factors.

This was the fourth consecutive profitable quarter for the company.

MakeMyTrip’s revenue jumped 28.5% to $168.7 Mn during the quarter under review as against $131.3 Mn reported in Q2 FY23. 

The company had generated a revenue of $196.7 Mn in Q1 FY24.

“While the second quarter of fiscal year tends to be a seasonally weaker period for leisure travel, we are pleased to report strong year-on-year revenue growth and expansion in adjusted operating profit,” said Rajesh Magow, group CEO of MakeMyTrip. 

“Our innovative travel solutions, brand strength and ability to deliver superior value to our customers and our partners are helping us to drive profitable growth,” he added.

MakeMyTrip generated $48.6 Mn in revenue from its air ticketing business, which increased 22.7% year-on-year (YoY).

Meanwhile, revenue from its hotels and packages business jumped 30.9% YoY to $89.4 Mn in the quarter under review.

Its bus ticketing business generated $19.8 Mn in revenue in Q2 FY24, up 23% YoY.

MakeMyTrip’s gross bookings increased 23.8% YoY to $1,839.7 Mn in Q2 FY24 but it was a decline from $1,987.5 Mn in gross bookings witnessed in Q1.

MakeMyTrip’s expenses increased YoY during Q2 FY24. Its personnel expenses increased by 4.6% to $35 Mn in the quarter from $33.5 Mn the prior year’s quarter, primarily due to annual wage increases, said the company.

Meanwhile, service cost jumped 24.8% YoY to $40.3 Mn in Q2 FY24. The company attributed this increase primarily to the sustained elevated travel demand in India.

The traveltech major’s other operating expenses rose 69.4% YoY to $55.1 Mn in Q2, primarily due to a $12.6 Mn increase in operating expenses, including distribution costs, payment gateway charges, outsourcing fees and website hosting charges linked to the increase in bookings.

MakeMyTrip said that a $10 Mn impairment provision towards recoverable from Go Airlines also led to this rise.

However, it managed to keep its marketing and sales promotion almost flat at $25 Mn in the quarter under review as against $24.8 Mn in Q2 FY23.

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Ola Electric, which was once again in the news last week for one of its escooters catching fire in Pune, has blamed the incident on aftermarket parts.

“We have received a report of an incident with one of our scooters in Pune yesterday. The customer is safe and unharmed. Our investigation has revealed that aftermarket parts used in the scooter led to a short circuit which resulted in the incident,” the company said in a statement.

For the uninitiated, aftermarket parts are replacement parts in vehicles or any other electronic equipment that are not manufactured by the original equipment manufacturers (OEMs). 

Ola claimed that as per its findings, the battery of the vehicle remained intact and functional.

“At Ola, safety is the highest priority and we follow stringent vehicle safety & quality standards. We urge our customers to only use genuine spare parts and accessories for all service requirements,” the company added.

As per reports, the incident of the escooter fire took place at a parking area in a college in Pimpri Chinchwad. The fire brigade was able to douse the fire in a while and no casualties were reported.

Safety Concerns About Ola’s Escooters

This is not the first time that Ola Electric has found itself in controversies pertaining to the safety of its vehicles. 

The first fire incident with the company’s escooter took place in Pune in March last year. In July this year, another Ola scooter burst into flames in Kerala’s Thiruvananthapuram.

Besides, last year, an Ola escooter user from Guwahati alleged problems with Ola S1 Pro’s regenerative braking system, which led to an accident and resulted in severe injuries to his son. 

Earlier this year, an unverified user on X (formerly Twitter) complained that his wife was hospitalised after the front wheel of her Ola S1 scooter got detached while riding. 

While Ola Electric made the telematics data of the Guwahati user public, creating legal controversies, the Bhavish Aggarwal-led startup termed the second accident an “isolated” case.

The leading escooter maker also stated that at Ola, vehicle safety and quality standards are of “the highest priority” and Ola S1 Pro is built with “an uncompromising attention to quality in all aspects”.

However, within months, in March this year, Ola Electric announced a free upgrade of the front fork arm for its S1 customers.

Amid all these, Ola Electric has been successful in grabbing a lion’s share of the electric two-wheeler market in the country. The company’s vehicle registration numbers have been surpassing those of competitors like Ather Energy, TVS Motor, Hero Electric, Ampere, and Okinawa Autotech for the last few months.

In fact, Ola Electric continued to rule the market despite being slapped with fines by the government for keeping its vehicle prices lower to claim the FAME-II subsidies.

The company has also been launching multiple new product ranges, with S1X being the latest model. 

It has also announced several new launches in the electric motorcycle segment as well as four-wheelers over the coming years.

Ahead of its IPO, which is expected in 2024, Ola Electric recently raised INR 3,200 Cr ($384 Mn) in a new funding round, which was a mix of equity and debt, from the likes of Temasek and the State Bank of India.

The post Ola Blames Aftermarket Parts For Fire Incident With Its Escooter In Pune appeared first on Inc42 Media.

IPO-bound hospitality unicorn OYO reported a 34% decrease in its net loss to INR 1,286.5 Cr in the financial year 2022-23 (FY23) from INR 1,941.5 Cr, 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. It mainly earns revenue from sales of accommodation services, commission from bookings, and subscriptions. 

Including other income, total revenue also jumped 14% to INR 5,601.7 Cr from INR 4,904.7 Cr in FY22. 

Founded in 2012 by Ritesh Agarwal, OYO offers holiday homes, casino hotels, coworking spaces, budget hotels, corporate stays and more.

Where Did OYO Spend?

The startup, last valued at around $9 Bn, managed to reduce its expenses during the year under review despite the growth in its business. Total expenditure fell 3% to INR 6,799.6 Cr from INR 6,985.3 Cr in the previous fiscal year. 

Employee Benefit Expenses Fall: The hospitality unicorn spent INR 1,548 Cr on employee benefit expenses in FY23, a decline of 17% from INR 1,861.7 Cr a year ago. It must be noted that OYO laid off around 600 employees during FY23 as part of a restructuring exercise. 

Lease-Related Costs Rise: OYO’s lease-related costs, which include service component of lease and lease rentals, rose 10% to INR 2,843 Cr in FY23 from INR 2,578 in the previous year. 

Advertising Expenses Decline: OYO’s marketing expenses narrowed 17% INR 154.8 Cr in FY23 from narrowed its INR 1,861.7 Cr in FY22.

OYO, which entered the unicorn club in 2018, has raised over $3 Bn in funding till date. It counts the likes of Microsoft, Airbnb, Peak XV Partners among its investors

As per an internal mail accessed by Inc42, OYO was on track to report its first ever profitable quarter in the second quarter of FY24, with a projected profit of INR 16 Cr. Earlier, the startup told its employees that it posted an adjusted EBITDA of about INR 175 Cr in Q1 FY24.

Currently, the startup is looking to raise $250 Mn from investors amid the delay in its initial public offering (IPO). A substantial portion of this funding will be allocated to settle its $660 Mn term loan B. 

Earlier this year, the startup took the confidential route to pre-file its draft documents for its public offering and reduced its IPO size to INR 3,286 Cr–INR 4,929 Cr ($400 Mn – $600 Mn).

The post IPO-Bound OYO’s Loss Declines 34% To INR 1,287 Cr In FY23 appeared first on Inc42 Media.

Bhavish Aggarwal-led Ola Electric has closed an INR 3,200 Cr ($384 Mn) funding round, which was a mix of equity and debt. While the equity part was led by Temasek, the debt part of the round was led by the State Bank of India.

The company said it will use the fresh funds for the expansion of its electric vehicle (EV) business and to establish India’s inaugural lithium-ion cell manufacturing facility in Krishnagiri, Tamil Nadu.

“We are committed to developing core technologies in EVs and cell and are rapidly scaling up manufacturing to further accelerate the transition to sustainable mobility,” Bhavish Aggarwal, founder and chief executive officer of Ola Electric, was quoted saying.

Earlier, it was reported that the two-wheeler EV manufacturer signed an agreement to raise $140 Mn from Temasek and existing investors.

The fundraise comes ahead of Ola Electric’s public listing. While the startup was initially said to be eyeing a listing before the general elections in the country next year, it has reportedly accelerated its IPO timeline now. The company was said to be aiming to submit its draft red herring prospectus (DRHP) for its $700 Mn IPO by the end of October.

An Ola Electric executive urged external advisers, including Kotak, ICICI, Bank of America, and Goldman Sachs, to prioritise meeting a tight five-week deadline for this milestone, as reported by Reuters.

Previous reports suggested that Ola Electric aimed for a market capitalization of $10 Bn through its IPO. However, valuation experts expressed reservations, deeming such a valuation as unrealistic and unsustainable.

This fundraising comes amid various allegations concerning Ola Electric’s escooter quality, after-sales services, and potential misappropriation of FAME-II subsidies. Despite these challenges, Ola Electric has managed to emerge as the top-selling electric two-wheeler manufacturer in recent months.

While the company is yet to file its FY23 financial statement, Ola Electric’s operating loss reportedly stood at $136 Mn on a revenue of $335 Mn in FY23, missing its publicly disclosed revenue goal.

The post Bhavish Aggarwal-Led Ola Electric Raises INR 3,200 Cr Funding Ahead Of IPO appeared first on Inc42 Media.

Pune-based SuperGaming’s battle royale game Indus has surpassed the 7 Mn pre-registrations mark. 

In a statement, the company said users can access the closed beta version of the game after registering on Google Play Store. This will enable users to obtain the closed beta key to join the pilot run of the game. 

“We’re thankful for the community’s response to Indus… Since our last community playtest in our studio, we feel we’re ready to see how the game performs in competitive environments featuring India’s best teams. We’re grateful for their support in building India’s most ambitious battle royale to date,” said SuperGaming’s cofounder and chief executive officer (CEO) Roby John.

Meanwhile, the platform is preparing for its upcoming esports tournament, Indus Esports Invitational, which will have a prize pool of INR 10 Lakh. Of this, INR 5 Lakh will be earmarked for the winners while the runners-up and third-place finishers will receive INR 2.5 Lakh and INR 1 Lakh, respectively. 

The Most Valuable Player (MVP) will also be awarded INR 1 Lakh during the esports tournament. 

Indus has extended invitations to several prominent teams, including Orangutan, Godlike Esports, Team 8bit, Global Esports, Enigma Gaming, and Reckoning Esports for the esports tournament.

The event will also feature teams comprising Indus content creators, community members, and winners from previous playtests. 

The tournament will enable the participants to provide feedback on various aspects of the game play, which in turn will help the game creators refine the title and add more functionalities. Deploying its gaming community to test games has yielded positive results for the company in the past when it used the same tactic to craft other popular titles such as MaskGun and Silly Royale. 

Established in 2017 by John, Navneet Waraich, Sanket Nadhani, Christelle D’cruz, and Sreejit J, SuperGaming is actively involved in the development of mobile games, including popular titles like MaskGun, Silly Royale, and Tower Conquest. 

In addition to its game offerings, the company is also building its gaming engine, known as SuperPlatform, designed for managing hyperscale, real-time multiplayer games. Its latest project, Indus, focuses on the creation of a futuristic society set within the rich backdrop of Indian civilization, art, and culture. The goal is to provide gamers with a fresh yet relatable and immersive gaming experience.

Recently, SuperGaming released a cinematic trailer for the game, with several characters voiced by prominent personalities and creators such as Olympic pistol shooter Heena Sidhu, Indian gaming YouTuber Techno Gamerz, popular content creators such as Magsplay (Mansi Gupta) and GamerFleet (Anshu Bisht), among others. In just 2 months since late August, the company has added an additional 2 Mn pre-registrations to its kitty. 

This comes at a time when online gaming is witnessing rapid adoption among Indian masses. As per a report, the country was home to a massive gamer base of 450 Mn at the end of FY22, a number which is projected to grow manifold on the back of rising internet and smartphone penetration.

The post Homegrown Battle Royale Game Indus Notches 7 Mn Pre-Registrations appeared first on Inc42 Media.

Flipkart-owned online travel aggregator Cleartrip witnessed a nearly 2X jump in its net loss in the financial year ended March 31, 2023. The Bengaluru-based startup’s net loss surged 90% to INR 676.5 Cr in FY23 from INR 356.5 Cr in the previous financial year. 

The company’s loss widened despite a dip in its operating revenue. Cleartrip’s operating revenue stood at INR 49.8 Cr in FY23, a decline of 10% from INR 55.3 Cr in FY22. It earns revenue by charging a service fee on booking of flight tickets and hotel rooms. 

Including other income, Cleartrip’s total revenue stood at INR 96.7 Cr during the year under review, down 17% from INR 117 Cr in the previous fiscal year. 

Founded in 2006 by Hrush Bhatt, Matthew Spacie and Stuart Crighton, Cleatrip was acquired by Walmart-owned Flipkart in 2021 for $40 Mn in a distressed sale. Cleartrip is an online travel aggregator that allows users to book flight tickets and hotels. 

How Cleartrip Spent Money? 

While its revenue dipped, Cleartrip’s expenses continued to climb. Total expenses stood at INR 773.2 Cr in FY23, a jump of 63% from INR 473.4 Cr in the previous fiscal year. 

Employee Benefit Costs Biggest Expense: Employee benefit expenses accounted for 68% of the overall expenses. Employee costs surged 174% to INR 247.1 Cr in FY23 from INR 90.2 Cr in FY22. As per LinkedIn, Cleartrip has around 1,000 employees.

Marketing Expense Rise: The company’s spending on advertising doubled to INR 184 Cr in FY23 from INR 92 Cr in FY22.

Payment Gateway Charges: Cleartrip spent INR 76 Cr on payment gateway charges in FY23. However, it didn’t disclose the amount it spent on it in the previous fiscal year.

On a unit economics basis, the company spent INR 15 to earn every single rupee from operations.

Last year, Cleartrip was hit by a data breach. In an email sent to its customers on July 18, 2022, the company said personal details of some customers were leaked but no sensitive information was compromised. 

“This is to inform you that there has been a security anomaly that entailed illegal and unauthorised access to a part of Cleartrip’s internal systems,” the email read. 

Flipkart forayed into the hotel-booking space last year, piggybacking on the vast hotel network of Cleartrip. 

Currently, Cleartrip competes with the likes of IPO-bound Ixigo, EaseMyTrip, MakeMyTrip, and Ibibo. 

The post Flipkart Owned Cleartrip Spent INR 15 To Earn Every INR 1 From Ops In FY23 appeared first on Inc42 Media.

Ride-hailing major Ola, which relaunched its bike taxi services in Bengaluru last month with its ebikes, is reportedly wooing drivers with promise of a monthly income of more than INR 70,000 per month.

As per a pamphlet distributed at an onboarding centre in the city, Ola would be charging a security deposit of INR 5,000 from the drivers for renting its ebike. The Bhavish Aggarwal-led company claimed that drivers can earn more than INR 70,000 per month with Ola bike taxi service, as per Moneycontrol.

 In order to rent an Ola S1 Air and use it as a bike taxi, a driver would be required to provide PAN card, Aadhaar, bank details, and a valid driver’s licence.

The publication said that many young individuals were found to have queued up at the enrolment centre to join Ola’s ebike taxi service. 

However, Ola’s claim of earnings of over INR 70,000 per month come with several terms and conditions.

As per the pamphlet, Ola has set daily fixed earnings for its ebike taxi drivers at INR 800 for 10-14 bookings. However, the drivers will have to pay a daily rental of INR 100 for that.

For 15-19 bookings, the daily incentive has been set at INR 1,300, with the rental amount set at INR 50.

For daily bookings of more than 20 per day, the drivers are not required to pay any daily rental but can earn in a range of INR 1,800 to INR 2,800.

Meanwhile, the drivers are not eligible for any daily fixed income if their bookings are below 10 per day, but they are expected to pay INR 300 as rental amount. 

For the passengers, Ola has set a rate of INR 25 for 5 km and INR 50 for 10 km for the bike taxi service, as per the rate chart shared by the company last month.

On using the service, Inc42 found that passengers are being charged as per this rate card. However, ebike taxi service was found to be unavailable in several parts of Bengaluru, including Yeshwanthpur, Malleshwaram, and Whitefield. This was on expected lines as the service has been relaunched recently and the company is still onboarding drivers for it. 

Meanwhile, a questionnaire sent to Ola seeking further information about its claims of drivers earning over INR 70,000 per month, the number of ebike taxis on the road, and daily bookings for the service remained unanswered till the time of publishing this story.

As per the Moneycontrol report, a rider said that a fully charged Ola S1 escooter runs around 70-75 km. While he is required to complete 10 rides to earn an incentive of INR 800, the vehicle battery drains out after seven-eight trips. The escooter then takes more than six hours to fully recharge.

It must be noted that while Ola has used aggressive tactics to hire drivers in the past, it has also landed the startup in trouble in some cases. Last year Inc42 reported about Ola cab drivers taking the company to court alleging cheating, fraud, and exploitation.

Meanwhile, Ola hasn’t yet received a licence from the Karnataka transport department to run its ebike taxi services in the state. 

The company applied for a licence last month.

The post Ola Lures Drivers With Over INR 70K Per Month Earnings To Expand Bike Taxi Service appeared first on Inc42 Media.

A full-blown trademark infringement battle has erupted between electric vehicle (EV) startup Ultraviolette and two-wheeler giants Hero MotoCorp and Harley-Davidson. 

In the latest development in the legal saga, the Delhi High Court (HC) has issued a notice to Hero MotoCorp seeking clarification over the usage of name ‘X440’ for its bike, which is the bone of contention between the two sides. 

In an order dated October 12, a single-judge bench of Justice C Hari Shankar directed Hero MotoCorp to file an explanation or argument by October 26 in the trademark infringement case. Following this, Ultraviolette will have time till November 2 to file a rejoinder in the case, essentially a counter to Hero’s reply. 

The matter has been listed for next hearing on November 7.

“After some arguments, Mr. Sibal, learned Senior Counsel for the plaintiff (Ultraviolette) agrees to a short notice being granted to the defendant (Hero) to file a reply to this application before this application is taken up for hearing… List before the Court for hearing and disposal of this application on 7 November 2023,” the HC said. 

The case dates back to September 2022 when EV startup Ultraviolette filed a trademark application for the word ‘X44’ under ‘class 12’. In simple words, trademark class 12 pertains to vehicles, including ‘apparatus for locomotion by land, air or water’.

As per data accessed by Inc42, the application was eventually approved and the status now reflects ‘Accepted and Advertised’ on the government website. 

However, Hero MotoCorp also filed a similar ‘class 12’ trademark application for the word ‘X 440’ in November 2022 but it is yet to receive approval for it. As per public information, the application has been ‘Opposed’ and is being contested by Ultraviolette. 

However, problems for Hero MotoCorp go beyond a simple trademark infringement case. Hero MotoCorp in partnership with Harley-Davidson co-developed and launched the ‘X 440’ bike, starting at a price tag of INR 2.29 Lakh ex-showroom in July. 

Eventually, Ultraviolette approached the Delhi HC and filed a trademark infringement case. 

Hero MotoCorp has likely spent crores of rupees for publicising the new bike and has even received more than 25,000 booking for its new H-D X440 model. Any blow on the trademark side could lead to an expensive recall. 

On the other hand, Ultraviolette could have registered the trademark for a later launch, which remains under wraps as of now.

The case comes at a time when a clutch of big-ticket Indian startups and brands are involved in trademark infringement battles with smaller players. Zomato-owned Blinkit is locked in a similar case with Bengaluru-based company Blinkhit over the former’s name. 

Earlier this year, Bengaluru-based Happy Belly Bakes won a four-year-long trademark infringement case against ecommerce giant Amazon and its subsidiaries over the trademark for the words ‘Happy Belly’. 

In April, the Delhi HC directed consultancy firm Google Enterprises to pay INR 10 Lakh to tech major Google LLC for infringing upon the search major’s trademark. Last month, the Delhi HC dismissed a plea filed by Policybazaar that sought to prevent other companies from using keywords similar to the fintech major’s trademarks on Google’s AdWords Program. 

The post Delhi HC Issues Notice To Hero MotoCorp In Trademark Battle With EV Maker Ultraviolette appeared first on Inc42 Media.

Drivers of cab aggregators Ola and Uber went on a strike in Chennai on Monday, demanding fare regulation and a ban on bike taxi services that they believe are eroding their earnings.

The drivers are also seeking stringent action against toll booths operating beyond their contracted periods, news agency PTI reported.

The protesting drivers staged an agitation, urging immediate state government intervention to regulate app-based cab aggregators. They are also seeking a resolution to the issue of high commissions charged by these aggregators, which they claim are affecting their livelihoods.

The All India Road Transport Workers Federation and the Tamil Nadu Urimai Kural Driver Trade Union, which initiated the strike, are demanding a ban on bike taxi services.

Drivers have also called for a large-scale protest in the city on October 18 to emphasise their demands.

M. Bhoopathy, the general secretary of the Tamil Nadu Call Taxi Workers’ Union, said that the guidelines for motor vehicle aggregators issued by the Centre in 2020 have not been enforced in the state.

The absence of these regulations is negatively affecting drivers and passengers, he added. Bhoopathy said implementing these rules would ensure fair fares for commuters and better compensation for drivers.

This is not the first time when there have been protests against bike taxis in the country. In March this year, nearly 2 lakh auto-rickshaw drivers in Bengaluru took to the streets to voice their demand for a ban on bike taxis. This marked one of the most significant demonstrations against the bike taxi business model.

Auto drivers contend that bike taxis pose a threat to their livelihoods.
With increased government scrutiny of bike taxis, multiple state governments, including Karnataka, are actively considering the possibility of banning bike taxi services.

It must also be noted that gig workers in the country have held multiple protests over the last few years demanding higher wages and social security.

Earlier this year, the union labour ministry held discussions with startups, including Ola, Uber, Zomato, Swiggy, and Urban Company, that operate largely based on gig workers. The talks aimed to explore the provisions to provide benefits such as life insurance, personal accident coverage, and health insurance for workers operating in the gig economy framework.

Earlier, a report by Fairwork India Ratings 2022 revealed that some of the prominent startups, including Ola, Uber, and Dunzo, fared poorly in terms of providing favourable working conditions to gig workers.

The post Ola, Uber Drivers On Strike In Chennai, Call For Ban On Bike Taxis appeared first on Inc42 Media.

Online travel aggregator Yatra reported a 3% year-on-year (YoY) increase in its consolidated net profit to INR 6 Cr in the June quarter (Q1) of the financial year 2023-24 (FY24) on the back of strong air travel demand.

Yatra had reported a profit of INR 5.8 Cr in the corresponding quarter of last year. 

However, the company’s Q1 FY24 profit declined over 33% sequentially from almost INR 9 Cr reported in the prior quarter – Q4 FY23.

On the other hand, Yatra’s operating revenue jumped almost 24% to INR 110.2 Cr in the quarter under review from INR 89 Cr in Q1 FY23. However, it declined 7.5% sequentially.

Yatra said Q1 FY24 was its strongest quarter on the air front since the advent of the Covid-19 pandemic, with the highest number of air passengers booked since pre-Covid in December 2019.

Yatra’s domestic passenger traffic grew 6% sequentially, at 2X the pace of India’s domestic passenger traffic, reflecting strong market share gains for both consumer and corporate businesses, the company said.

“We started FY24 on a strong footing on the air front with the highest number of air passengers booked since pre-Covid, up 41.5% YoY, far outpacing India’s domestic air passenger industry growth of 14.8% YoY, clearly demonstrating our ability to gain market share,” said Dhruv Shringi, Yatra’s whole time director and CEO.

Shringi said Yatra further bolstered its position in the corporate travel sector by signing 19 new corporate customer accounts in the June quarter with an annual billing potential of INR 151 Cr.

Meanwhile, Yatra said its revenue from hotels and packages stood at INR 44.8 Cr as against INR 38.1 Cr in the year-ago quarter, an increase of 17.6%. The growth was helped by a recovery in domestic travel and the addition of new distribution partners. 

On the expenditure front, the company’s total spending jumped almost 24% to INR 105.3 Cr in Q1 FY24 from INR 85.1 Cr in the prior year’s quarter, with employee benefit expenses being the highest cost.

Yatra spent INR 26.2 Cr on employee benefits as against INR 25.7 Cr spent in Q1 FY23. 

Meanwhile, its service cost surged over 56% YoY to INR 21.6 Cr in Q1 FY24.

Shares of Yatra made a muted debut on the Indian stock exchanges last month. The stock listed at INR 127.50 on the NSE and INR 130 on the BSE, compared to its issue price of INR 142.

Shares of Yatra slumped after the announcement of its Q1 FY24 results, ending Monday’s trading session 4% lower at INR 146.1 on the BSE.

The post Yatra Reports INR 6 Cr Net Profit In Q1 FY24, Revenue Jumps 24% YoY appeared first on Inc42 Media.

Hospitality unicorn OYO is reportedly looking to raise $250 Mn from investors amid the delay in its initial public offering (IPO).

A substantial portion of this funding will be allocated to settle its $660 Mn term loan B, The Arc reported.

The startup also plans to offer secondary shares at a reduced price compared to the primary capital raise valuation to make the funding round more attractive for the investors, the report said.

While the final valuation remains undecided, discussions with investors have revolved in the range between $3 Bn and $5 Bn. If this estimate holds, it signifies a significant decline from OYO’s peak valuation of $10 Bn in 2019.

“Since the turnaround in our business performance, we regularly get approaches for institutional investments. We are, however, focused on the SEBI approval process. We have also heard many such rumours in the past few weeks with different valuation ranges and numbers. They are purely speculative market gossip,” an OYO spokesperson told Inc42.

Earlier, it was reported that amid the delay in the IPO, the Ritesh Agarwal-led unicorn was in talks to refinance its $660 Mn term loan B with Apollo Management.

The term loan B was availed by OYO during the height of the COVID-19 pandemic in 2021, when its core business was down as travel and tourism industry came to a standstill.

OYO initially filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) in 2021 for an INR 8,430 Cr IPO. However, its public listing has been delayed due to various reasons. Earlier this year, it took the confidential route to pre-file its draft documents and cut the IPO size to $400-$600 Mn.

In a recent internal email sent to OYO’s top brass, founder and CEO Agarwal claimed that OYO was on track to report its first-ever profitable quarter in Q2 FY24. He said the hospitality giant would report a profit of INR 16 Cr for the quarter.

The startup’s operating revenue rose 14% year-on-year to INR 5,463 Cr in FY23, while loss reduced 38% to INR 1,286 Cr.

The post Amid Delay In IPO, OYO Looking To Raise $250 Mn appeared first on Inc42 Media.

IPO-bound hospitality chain OYO has promoted Rakesh Kumar to the position of deputy chief financial officer (deputy CFO) of the company.

In the role, Kumar will be responsible for overseeing critical operational finance functions, including treasury, controllership, shared services, business finance, taxation, financial planning and analysis (FP&A) and execution of results, compliance, and timely audits across the organisation, OYO said in a statement.

He joined the hospitality unicorn over five years ago as the head of financial reporting. During the challenging period of the Covid-19 pandemic, Kumar played a pivotal role in ensuring timely audits and maintaining the company’s financial health, said OYO.

Furthermore, as per the startup, his leadership led to successful execution of over 10 equity and debt raises of the company.

Besides his finance function, Kumar also took on other business partnering roles and led the transition of acquisitions within OYO, including the two European organisations – Direct Booker and Bornholmske Feriehuse, the company said.

Kumar will continue to report to OYO CFO Abhishek Gupta.

“From spearheading our financial reporting efforts to leading complex acquisitions and driving our finance function’s strategic transformation, his dedication and expertise have played an instrumental role in the growth of the company,” said Gupta.

Founded in 2013 by Ritesh Agarwal, OYO today offers over 40 integrated products and solutions to patrons who operate almost 1.7 lakh hotels and home storefronts in more than 35 countries including India, Europe, and Southeast Asia.

After being a loss-making entity so far, the startup, like most others, has been aggressively looking to become profitable. In an internal mail sent to the leadership team last month, Agarwal said OYO would mark its “maiden profitable quarter” with an expected profit of INR 16 Cr in Q2 FY24.

Sources told Inc42 that the company saw an improvement in its financials on the back of a growing focus on core markets, centralisation of key functions, cost optimisation initiatives, divestment, and rationalisation of non-core businesses.

In Q1 FY24, OYO told its employees about achieving an adjusted EBITDA of about INR 175 Cr.

OYO initially filed its draft red herring prospectus (DRHP) with SEBI in September 2021 for a $1.2 Bn IPO. However, it took the confidential route earlier this year to pre-file its draft documents and cut the IPO size to $400-$600 Mn.

The post OYO Promotes Rakesh Kumar As Deputy CFO Ahead Of IPO appeared first on Inc42 Media.

Bhavish Aggarwal-led ride-hailing platform Ola announced the launch of its all-electric on-demand delivery service, Ola Parcel, in Bengaluru on Friday (October 6) to take on Swiggy Genie and Dunzo’s courier service.

Aimed at electrifying logistic services in India, Ola Parcel will serve as a highly affordable and accessible delivery solution for all, the startup said in a statement.

Ola Parcel service will be available across the city at different price ranges – INR 25 for 5 Km, INR 50 for 10 km, INR 75 for 15 km, and INR 100 for 20 km.

On the other hand, Swiggy Genie’s charges start from INR 60 for the first 2 Km of parcel delivery.

Founder Aggarwal also took to X (formerly Twitter) to announce the launch. 

“Launching Ola Parcel today in Bengaluru! Start of an all-electric 2W logistics ecosystem for India!,” he wrote, adding that the service will be available from tonight onwards. 

Ola plans to soon expand the service across India.

Meanwhile, an Ola spokesperson said in a media statement that electric two-wheelers will disrupt the logistics ecosystem in India and Ola’s on-demand delivery service will bring in a “paradigm shift” in the intra-city logistics industry. 

“Owing to its robust network of services spanning across ride-hailing, digital commerce, logistics and EV manufacturing capabilities, Ola is uniquely placed to bring in this transformation at speed and scale,” the statement said. “We are very confident that this collaboration between Ola and Ola Electric will revolutionise the 2W logistics ecosystem in India.”

Ola, besides building its EV manufacturing entity Ola Electric, has also been bolstering its offerings in the electric mobility segment.

The company recently restarted its ebike services in Bengaluru for everyday travel for the masses. 

Ola currently claims to have operations in 200 cities with over 1 Mn drivers on the platform. Recently, Ola is said to have also joined the government-backed Open Network for Digital Commerce (ONDC) to pilot a new food delivery platform. 

Ola reported a 1.3X widened net loss of INR 1,522.3 Cr in FY22 , up from INR 1,116.1 Cr in the prior fiscal. Its operating revenue doubled to INR 1,970.4 Cr in FY22.

The post Ola Launches Parcel Service To Take On Swiggy Genie, Dunzo appeared first on Inc42 Media.

Amid delay in its IPO, Delhi NCR-based hospitality unicorn OYO is in talks to refinance a $660 Mn loan with Apollo Management.

The term loan B was availed by OYO during the height of the COVID-19 pandemic in 2021, when its core business was down as travel and tourism industry came to a standstill.

The hotel aggregator is looking to extend the maturity deadline of its loan to 2027, compared to the existing deadline of 2026, a Bloomberg report said.

A decision could be reached as early as next month.

“We regularly get approached for cheaper financing options but the board hasn’t approved anything, including prepaying some portion,” an OYO spokesperson said on the matter.

OYO, which has been looking to go public, has hit multiple snags on its way to the bourses. The hospitality major had received a nod from India’s market regulator SEBI for an IPO worth INR 8,430 Cr in January 2022. However, given the prevailing adverse market conditions at the time, OYO decided to put its IPO in cold storage.

In a recent internal email to OYO’s top brass, founder and CEO Ritesh Agarwal claimed that OYO is on the way to reporting its first-ever profitable quarter in the second quarter of FY24.

He claimed that the hospitality giant will mark its maiden profit of INR 16 Cr for the period spanning July to September 2023.

Furthermore, the email highlighted that the IPO-bound unicorn recorded a 14% surge in its operating revenue, reaching INR 5,463 Cr in FY23. The company also managed to reduce its losses by 38%, reporting INR 1,286 Cr in FY23, a reduction from the previous year’s INR 1,939.8 Cr.

The developments at OYO come at a time when several key executives recently departed the hospitality unicorn. Ankit Gupta, OYO’s India CEO, and Mandar Vaidya, the head of OYO Europe, both moved out of OYO last month.

Prior to these departures, the company undertook a significant management overhaul. This reshuffle led to the founder, Ritesh Agarwal, delegating more roles to his core team.

In these changes, Gautam Swaroop, the CEO of OYO International, assumed responsibility for OYO’s affiliated ventures, such as Weddingz. Furthermore, COO Abhinav Sinha’s role was redefined as the Chief Product and Technology Officer.

It must be noted that Agarwal recently joined the TV show Shark Tank India as a shark for its upcoming season.

The post OYO Considers Refinancing $660 Mn Loan Amidst IPO Delays appeared first on Inc42 Media.

Bengaluru-based car rental platform Zoomcar is eyeing a listing on the American stock exchange Nasdaq in the ongoing quarter through a special purpose acquisition company (SPAC) deal.

It must be noted that Zoomcar last year inked a merger pact worth $456 Mn with SPAC, or blank check firm, Innovative International Acquisition Corp (IOAC) to list in the US. 

The IOAC, in a release on Tuesday (October 3), said its registration statement on Form S-4, initially filed with the US Securities and Exchange Commission (SEC) on February 7, 2023, has been declared effective by the SEC. 

As per the SEC’s regulations, Form S-4 is to be filed by publicly traded companies to register information about a merger or acquisition. Meanwhile, a blank check firm is a publicly traded company which has no business plan and is formed to raise funds through an initial public offering (IPO) by acquiring or merging with an existing company.

The IOAC said that following the SEC’s nod, it has scheduled an extraordinary general meeting of its shareholders on October 25 to seek approval and adoption of the merger agreement among the IOAC, Zoomcar and the other parties, and other related matters pertaining to the merger. 

“Upon closing of the transaction, (the) IOAC is expected to transfer by way of continuation out of the Cayman Islands and into the State of Delaware and be renamed Zoomcar Holdings, Inc., and will continue to operate under the Zoomcar management team, led by Greg Moran, cofounder and CEO of Zoomcar,” the statement said.

The combined company is expected to be listed on Nasdaq in the fourth quarter of 2023, it added.

Commenting on the development, Moran said, “We’re thrilled to announce this important milestone in our ongoing partnership with the IOAC team and we look forward to continuing the buildout of our peer2peer car sharing platform across our core emerging market geographies.”

On listing, Zoomcar will join Indian companies like MakeMyTrip, Freshworks and Yatra Online which are listed in the US.

Founded in 2013 by Moran and David Back (who exited the startup in 2015), Zoomcar has raised a total funding of over $290 Mn till date. It is backed by the likes of SternAegis Ventures, NKM Capital, and Sony Innovation Fund.

The company competes with the likes of Revv and IndusGo in the Indian market. Besides India, Zoomcar also operates in Indonesia and Egypt. 

Zoomcar’s Indian entity, Zoomcar India Private Limited , narrowed its loss nearly 54% to INR 74 Cr in FY22 from INR 160 Cr in FY21, while its operating revenue rose 1.2X to INR 95 Cr from INR 76.6 Cr in the previous fiscal year. 

The post Zoomcar Eyes US Listing In Q4 2023 Through SPAC Deal appeared first on Inc42 Media.

Online travel agent (OTA) startup Yatra made a disappointing debut on the bourses, with its shares opening at a 10% discount to its issue price.

The stock started trading at INR 127.50 on the NSE and INR 130 on the BSE against an issue price of INR 142, a discount of 10.2% and 8.5% against the issue price, respectively.

During early intraday trading on Thursday (September 28), the shares hit a high of INR 137.90 on the NSE and INR 137.75 on the BSE, before settling at INR 135.90 on the NSE and INR 135.95 on the BSE, 6.6% and 4.6% higher than the listing price, respectively.

The listing happened largely in line with analysts’ expectations, given that the public issue, which was open for subscription between September 15 and 20, had received muted demand. 

Yatra’s IPO comprised a fresh issue of INR 602 Cr and an offer-for-sale (OFS) element of 1.21 Cr equity shares. The startup had raised INR 348.75 Cr from anchor investors last week by allocating 2.45 Cr shares. Yatra set its IPO price band at INR 135-INR 142. At the upper price band, the total IPO issue size stood at INR 773.82 Cr.

The IPO was subscribed 1.61X, with bids for 4.98 Cr equity shares against an offer size of 3.09 Cr equity shares. For comparison, Zaggle, whose IPO opened a day before Yatra’s, saw its issue oversubscribed over 12X on the last day of its offering. Meanwhile, ideaForge’s public issue was oversubscribed 106X before the startup listed at a 94% premium on the bourses.

The OTA’s IPO documents showed that it had posted losses of INR 119.5 Cr for FY21 and INR 48.2 Cr for FY22. In FY23, the company managed to post a profit of INR 7.6 Cr. However, the said profit was down to a deferred tax expense, which allowed it to offset its losses against a profit in future periods.

Yatra claims to be India’s third-largest online travel company among key OTA players in gross booking revenues and operating revenue for FY23. It competes with the likes of MakeMyTrip and EaseMyTrip. The company claims to have the most significant hotel and accommodation tie-ups amongst key domestic OTA players. 

Yatra also said in its prospectus that it is India’s leading corporate travel service provider, with 813 large corporate customers and over 49,800 registered SME customers.

The post Yatra’s Lackluster Debut: Lists On Bourses With A 10% Discount appeared first on Inc42 Media.

Delhi NCR-based hospitality unicorn OYO is on track to report its first ever profitable quarter in Q2 of the financial year 2023-24 (FY24), according to its founder and CEO Ritesh Agarwal.

In an internal mail sent to the leadership team of the startup, Agarwal claimed OYO will mark its “maiden profitable quarter” with a projected profit of INR 16 Cr in July-September 2023. 

Inc42 has accessed the internal mail.

Agarwal said IPO-bound OYO reported an operating revenue of INR 5,463 Cr in FY23, a 14% increase from INR 4,781 Cr. The startup also narrowed its loss by 38% to INR 1,286 Cr in FY23 from INR 1,939.8 Cr in the previous fiscal year. 

“Our adjusted gross profit margin rose to 43% of revenue and adjusted gross profit increased by 23% to INR 2,347 Cr in FY23 from INR 1,915 Cr in FY22,” Agarwal wrote in the mail. 

As per sources, OYO attributed the improvement in its financials to its focus on core markets, centralisation of key functions, cost optimisation initiatives, divestment, and rationalisation of non-core businesses.

In the first quarter of FY24, the startup, in a town hall, informed its employees that it reported an adjusted EBITDA (earnings before interest, taxes and depreciation) of INR 175 Cr. 

The startup has also reduced its number of hotels to 12,938 at the end of FY23 from 18,037 at the end of FY22 citing an increased focus on quality customer service across OYO hotels globally.

“We have started thinking of shifting our mindset from offering a value first offering to an experience first offering for your customers. We have taken some initial steps in this area with initiatives such as ‘Spotless Stays’ and Super OYO’. The program’s pilot across 250+ hotels has seen customer satisfaction score improve by 35%,” Agarwal wrote in the mail.

Agarwal also said that the startup sees immense potential in future growth markets like the US & the UK. 

Earlier this month, it was reported that top executives at OYO – Ankit Gupta, its India CEO, and Mandar Vaidya, the head of OYO Europe – have quit the startup. 

“Both roles were already transitioned 6 months ago to Varun Jain, as COO India, and, Gautam Swaroop, as CEO OYO Vacation Homes, respectively,” an OYO spokesperson said then.

OYO first filed its Draft Red Herring Prospectus (DRHP) with market regulator SEBI in September 2021 for an INR 8,430 Cr ($1.2 Bn) IPO. However, it later took the confidential route to pre-file its draft documents and reduced the IPO size to INR 3,286 Cr – INR 4,929 Cr ($400 Mn – $600 Mn).

The post OYO To Report Maiden Profitable Quarter In Q2, FY23 Loss Declines appeared first on Inc42 Media.