Insurtech major Go Digit General Insurance, which is gearing up for its initial public offering (IPO), has received a show cause notice and multiple advisories from the Insurance Regulatory and Development Authority of India (IRDAI) last month, the company said in a new addendum to its draft prospectus filed with the Securities And Exchange Board of India (SEBI).

The development comes at a time when the company’s IPO is yet to receive final approval from the SEBI even after Go Digit refiled its draft red herring prospectus (DRHP) addressing certain concerns that the market regulator had raised earlier.

Go Digit revealed that the show cause notice from IRDAI has alleged non-disclosure of change in the conversion ratio of the CCPS issued by Go Digit Infoworks Services (GDISPL), the parent of Go Digit General Insurance, to FAL Corporation.

FAL Corporation is a part of Canada-based Fairfax Financial Holdings, which is one of the major investors in Go Digit.

“In terms of the Notice, the change in the conversion ratio of 6,300,000 CCPS issued by GDISPL to FAL Corporation, from ‘1 CCPS for 2.324 equity shares’ to ‘2.324 CCPS for each equity share’, which was reflected by way of an amendment to the JV Agreement dated August 11, 2022, is a material change to the information furnished at the time of applying for registration to the IRDAI,” the company’s regulatory disclosure to SEBI said.

As per the notice, Go Digit was expected to provide the details of such change to the IRDAI but it did not furnish the “full particulars”. Hence, IRDAI has also alleged that the startup is in violation of Section 26 of the Insurance Act.

If an adverse order is passed against Go Digit and its officers responsible for the non-compliance, the insurtech unicorn would be slapped with a maximum penalty of INR 1 Lakh for each day during which such failure continues, or INR 1 Cr, whichever is lower, the addendum mentioned.

Besides, IRDAI has also issued certain advisories and cautioned Go Digit on a few aspects.

The advisory notice has been issued for failing to take the insurance regulator’s approval for the change in remuneration of its Chief Executive Officer (CEO) on the account of the change in ESAR 2018 (employee stock appreciation rights scheme) to ESOP 2018 (employee stock option plans) and for failing to inform IRDAI of the retrospective grant of ESARs prior to the date of grant of the company’s certificate of registration.

“In the event the IRDAI is not satisfied with our responses or we fail to adhere to the advisories and cautions issued by the IRDAI, we may be subject to warnings, show-cause notices and/ or penalties in the future, which would, amongst other things, adversely impact our brand and reputation,” Go Digit said in its regulatory disclosure to SEBI.

Meanwhile, the IRDAI has also cautioned the startup to ensure due care and correct disclosures in the offer documents, of the position in relation to the commission on long-term policies and that acquisition costs incurred in the year, among several other advisories issued.

It is pertinent to note that Go Digit filed its DRHP with the SEBI in August last year. Within months, it also received the IRDAI’s approval to launch the IPO in November last year though SEBI had kept the IPO in ‘abeyance’.

In March this year, the startup refiled the DRHP with the market regulator for its $440 Mn, addressing the latter’s concerns about its ESOPs. 

In the latest filing, Go Digit said its erstwhile Go Digit – Employee Stock Appreciation Rights Plan, 2018 has been amended and changed to ESOP 2018, pursuant to the resolutions passed by the board and shareholders on March 21, 2023 and March 27, 2023, respectively. 

Founded in 2017 by Kamesh Goyal, Go Digit offers insurance policies across verticals including motor vehicle, health, travel, and property. Besides Prem Watsa’s Fairfax, the startup is also backed by prominent names such as Sequoia, cricketer Virat Kohli, and actor Anushka Sharma. 

Go Digit’s IPO comprises a fresh issue of shares worth INR 1,250 Cr and an offer for sale (OFS) of 109.45 Mn shares.

The post IPO Bound Go Digit Gets Show Cause Notice, Multiple Advisories From Insurance Regulator appeared first on Inc42 Media.

Fintech SaaS startup Perfios turned profitable in the financial year 2022-23 (FY23), posting a consolidated net profit of INR 7.8 Cr on the back of a significant jump in its service income due to strong performance of its India business.

The startup had reported a net loss of INR 16.8 Cr in FY22 on an operating revenue of INR 136.5 Cr.

In FY23, Perfios’ operating revenue jumped almost 200% year-on-year (YoY) to INR 406.8 Cr.

Founded in 2008 by VR Govindarajan and Debasish Chakraborty, Perfios provides software solutions to financial institutions for credit decisioning, analytics, onboarding automation, due diligence, among others. It earns a majority of its revenue from the sale of services.

At INR 198.5 Cr, income from software support for loan processing had the biggest contribution to its operating revenue and grew almost 90% YoY.

Meanwhile, service income jumped over 28X YoY to INR 166.5 Cr, contributing the second-highest portion to sales revenue.

Perfios also earns revenue from software coding and maintenance services, licence and subscription fees.

On the other hand, if looked at geographically, India continues to be the biggest contributor to the startup’s income.

Perfios posted a 211% surge in its domestic revenue to INR 382 Cr in FY23 from INR 122.6 Cr in the previous fiscal year.

Meanwhile, the startup earned INR 24.7 Cr from its international businesses during the reported year, as against INR 13.8 Cr in FY22.

In a recent statement, Perfios said it processes 1.7 Bn transactions a year with $36 Bn of assets under management (AUM).

Zooming Into The Expenses

In line with the rise in its revenue, Perfios’ total expenses more than doubled to INR 386.4 Cr in FY23 from INR 155.9 Cr in the prior year.

Employee Costs The Biggest Expense: Employee benefit expenses accounted for over 55% of the startup’s total spending during the year.

Perfios’ total employee costs surged to INR 213.5 Cr in FY23 from INR 99.7 Cr in the prior fiscal. In that, a majority was spent towards salaries and wages.

The startup also spent INR 7.1 Cr on employee share-based payments (equity settled).

Other Major Expenses: Depreciation, depletion, and amortisation expense increased by over 200% to INR 32 Cr in the reported period.

Perfios’ legal professional charges surged 80% to INR 41.1 Cr in FY23, while miscellaneous expenses also increased to INR 70 Cr from INR 13.5 Cr in FY22.

In the recent past, there have been a number of new developments at the startup. In September, Perfios signed an agreement with Kedaara Capital for an investment of $229 Mn in its Series D funding round.

Recently, it also acquihired Chennai-based open finance platform Fego.ai and announced an ESOP buyback of shares worth INR 154 Cr.

Perfios also appointed Sumit Nigam as the startup’s chief technology officer (CTO) and Anu Mathew as chief people officer (CPO). At that time, the startup also said that it is eyeing an IPO in the next 18-24 months.

The post Fintech SaaS Startup Perfios Turns Profitable In FY23, Revenue Triples To INR 406 Cr appeared first on Inc42 Media.

After a distasteful 2022 in terms of Indian startups embarking on the stock market route, the ongoing year has done a slightly better job. Well, against the three startups that went public in the year infamous for breeding the funding winter, 2023 has seen five startups floating their IPOs so far.

However, had it not been for the sharp correction in the stock prices of the listed tech giants like Paytm, Zomato, and PB Fintech last year, 2023 could have mirrored 2021 when as many as 11 new-age tech startups got listed on the Indian bourses.

Not to mention, these sharp corrections, triggered by the subdued sentiments of investors, forced the likes of OYO, Navi, GoDigit, PayMate and many others to reassess their decisions to commence their journey on the D-Street. The list excludes startups like ixigo, Droom, Snapdeal, PharmEasy, Capillary and MobiKwik who have either delayed or withdrawn their IPO plans since 2022.

The current dilapidated state of Indian startup IPOs is independent of the revival witnessed in the broader IPO market in 2023, particularly around June-July, after Mankind Pharma’s stellar debut.

The Indian IPO Oxymoron?

While, on the one hand, many Indian tech startups were seen fighting shy of getting listed due to multiple reasons, including witnessing the bloodbath of their peers, an EY report suggests that India has emerged as the global leader in terms of the number of IPOs year-to-date in 2023. Quite an oxymoron, if you will.

As per BSE data, the year so far has seen a total of 92 IPOs, including 40 mainboard listings, compared to 90 IPOs in 2022 with 38 mainboards.

Moving on, in Q3 2023 there were a total of 21 IPOs in the Indian main market, a sharp jump from just four in the same period of last year. Even the proceeds raised during the quarter amounted to $1,770 Mn, a 376% rise from $372 Mn in Q3 2022, the EY report notes.

Meanwhile, no one sector is dominating the Indian IPO space, as a diverse mix of companies are going for public listings. 

As Sunil Nyati, MD of Swastika Investmart pointed out, the Indian IPO market has started witnessing a significant diversification in the IPO landscape in contrast to earlier times when a single sector typically dominated the mainboard IPOs.

“Various sectors, including small finance banks, biotechnology, supply chain management, apparel, jewellery, infrastructure, and cable manufacturing, have been active participants in this IPO surge,” Nyati said, adding that companies are racing to file for IPOs ahead of 2024 general elections, as there is a remarkable demand for these offerings.

So, what continues to pull back some of the top tech startups from taking the public route?

The Tale Of Startup IPOs In 2023

Some of the market experts Inc42 spoke with opined that though the IPO market and the sentiment towards tech startups have revived, there continues to be a sharp focus on profitability. Hence, loss-making entities might find themselves in trouble even if they decide to go public now. This is probably why we are witnessing many Indian startups deferring their IPO plans.  

Besides, after the examples set by Paytm and Life Insurance Corporation (LIC) last year, retail investors would hardly subscribe to any public issues with very high valuations.

Given the market is cautious about these two factors (vanity valuations and profitability), it was rather wise for several of these tech startups to go slow on their public listing plans this year, analysts believe.

Speaking on the matter, Prashanth Tapse, research analyst, senior VP (research) at Mehta Equities said that several tech startups have delayed their IPOs looking at the market sentiment, and till the end of this year, there is no chance of more new-age, loss-making businesses entering the Indian market. 

These tech startups will not take any risk of going public right now, he said, pointing at the low subscriptions of Mamaearth’s IPO.

We must note that while many held back, two prominent names – Mamaearth and Yatra – made their debut on the Indian bourses this year, but their entries were rather cold.

Traveltech major Yatra listed on the BSE and the NSE at sharp discounts of 8.5% and 10.2%, respectively. Meanwhile, the recent debut of D2C unicorn Mamaearth was flat on the BSE and at a mere 2% premium on the NSE.

However, it is worth noting that in July, drone startup ideaForge listed at a 94% premium on the bourses. 

Though this emerging tech startup IPO can only be deemed as “stellar” this year, compared to its startup peers, shares of ideaForge have already witnessed a sharp correction of over 30% since its listing.

At a time when the focus remained on the public market debuts of the high-valuation startups, blockchain and IT development firm Yudiz Solutions made its entry at an over 12% premium on the NSE SME platform.

Meanwhile, another mainboard IPO of fintech SaaS startup Zaggle saw a muted response as its shares were listed at a 1.2% discount on the BSE and made a muted entry on the NSE. However, it is pertinent to note here that while Zaggle’s IPO wasn’t hyped as much as some of the others, its shares are trading 40% higher than their listing price.

Amid concerns over valuation and profitability, OYO reduced its IPO size earlier this year to $400 Mn-$600 Mn from $1.2 Bn earlier. 

Additionally, in pursuit of turning profitable, OYO has carried out several restructuring measures in the last one year. Interestingly, OYO claimed to have achieved its first-ever profitable quarter in Q2 FY24, with a projected profit of INR 16 Cr. However, there is still no clarity on the IPO, which was expected to happen around Diwali this year.

On the other hand, in March this year, insurtech unicorn GoDigit refiled its DRHP with SEBI but is yet to receive the green light from the regulator. 

Navi and PayMate’s IPO timelines also remain unclear.

While startup IPOs have been few and far in 2023 when compared to the overall momentum in the Indian IPO market, the situation is, of course, much better than in 2022. 

A major reason behind this shift is the change in investor sentiment towards new-age tech companies in 2023, as several listed loss-making companies turned profitable or are aggressively marching towards their profitability targets.

Will 2024 Be Any Better?

Next year is expected to be even more interesting for the startup IPOs.

This is because several prominent startups from diverse sectors, including electric mobility major Ola Electric, Zomato’s rival Swiggy, Prosus-backed digital payments giant PayU, and Peak XV Partners-backed co-working space Awfis are eyeing public listings in 2024. And this is besides the pending IPOs mentioned above.

In fact, Ola Electric is reportedly eyeing a market capitalisation of $10 Bn following the IPO, raising somewhere between $800 Mn-$1 Bn. However, its filing with the market regulator was expected by October end, which is yet to take shape.

Meanwhile, foodtech decacorn Swiggy has also started preparing for its debut on the public market with an IPO size expected at around $1 Bn.

As per a recent report, Awfis is also likely to file its DRHP soon for an IPO worth $100 Mn-$125 Mn. PayU, too, is expected to file DRHP with SEBI in February next year for a $500 Mn IPO.

Amid the IPOs of unicorns and decacorns, there is a possibility that some smaller tech startups make humble public market debuts next year.

Recently, agri-drone company AITMC Ventures also filed its DRHP with the market regulator to list on the NSE’s SME platform.

Mehta Equities’ Tapse opines that valuation is the most sensitive metric that will decide the fate of IPOs in the current market scenario. He added that the companies that have listed at valuations lower than INR 10,000 Cr are doing much better.

“This is a market where companies should create shareholders’ value and not value for themselves. Tech startups have burnt cash significantly and now they want to get listed to get brand coverage and other advantages but valuations for these loss-making entities should be decided extremely carefully,” he added.

Echoing similar sentiments, Swastika Investmart’s Nyati also said, “Investors, understandably cautious after some recent disappointments, appear reluctant to commit to these high valuations, especially in the backdrop of an environment marked by elevated interest rates.”

Meanwhile, on the back of achieving profitability, Zomato’s valuation has almost doubled. Also helped by lowered losses, Paytm’s market cap has surged over 40% since May this year. The rally is also seen in shares of Nykaa, PB Fintech, MapmyIndia, and others.

Considering the substantial increase in the share prices of listed tech startups, could a more thoughtful valuation approach simplify the path for upcoming new-age tech IPOs? 

[Edited by Shishir Parasher and Vinaykumar Rai]

The post Decoding The Startup IPO Sentiment On D-Street appeared first on Inc42 Media.

After a significant rally last week, the Indian new-age tech stocks witnessed a mixed performance this week as the broader market remained tepid amid weak global cues.

Eleven out of the 18 new-age tech stocks under Inc42’s coverage gained in a range of 0.4% to 26% this week, with CarTrade Technologies emerging as the biggest gainer following its positive Q2 FY23 earnings.

Tracxn Technologies (up about 23%), Yatra (up over 7%), Nykaa (up 6.8%), Zomato (4.2% higher), and Nazara Technologies (up 1.3%) were among the other gainers this week.

On the other hand, six new-age tech stocks, including RateGain, Fino Payments Bank, Paytm, and EaseMyTrip, fell in a range of 0.9% to over 4%. Shares of Yudiz remained unchanged week-on-week.

This week also saw the much-awaited listing of Honasa Consumer, the parent entity of D2C unicorn Mamaearth, on the Indian bourses. 

In the broader market, benchmark indices Sensex and Nifty50 gained 0.8% and 1%, respectively. After witnessing some pressure, the market closed in the green this week. While Sensex ended the week at 64,904.68, Nifty50 closed at 19,425.35.

“Reflecting the mixed global sentiments on account of a more than expected fall in Chinese exports, highlighting a continued slowdown in global trade, the Indian market is mired to a range bound trend,” opined Vinod Nair, head of research at Geojit Financial Services. 

Though cues from the US Fed chair Jerome Powell’s speech have reduced the likelihood of a rate hike in the near term, leading to an ease in US treasury yields and calming the market, headline inflation remains above the US central bank’s target. In the coming weeks, there will be a focus on inflation data in the US and India, Nair said.

On Sunday (November 12), the BSE and the NSE will open for an hour between 6 pm and 7:15 PM for Diwali muhurat trading.

Now, let’s dig deeper into 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 $40.45 Bn at the end of this week as against 18 stocks’ market cap of $40.67 Bn last week.

CarTrade Touches 52-Week High

Shares of CarTrade Technologies rallied a sharp 20% during the intraday trading on Friday (November 10) to touch a fresh 52-week high at INR 874.5 on the BSE. As a result of the rally, the stock also touched its upper price band on the day.

However, the stock shed some of the gains later in the day to settle 19% higher at INR 867.3 on the BSE.

The shares of the auto marketplace emerged as the biggest gainer this week following the rally. Overall, the stock gained 25.6% this week.

While the stock witnessed a northbound movement throughout the week, it jumped on Friday following the company reporting its Q2 FY24 results.

On Thursday, the startup posted a 132% year-on-year (YoY) jump in its Q2 profit after tax (PAT) while reporting a record revenue of INR 314.33 Cr.

While the company’s net profit declined 4% sequentially, it must be noted that its Q2 also included numbers for OLX India business, which it recently acquired. 

Commenting on the stock, Rupak De, senior technical analyst at LKP Securities, said that following the breakout, it now has a resistance at around INR 900. 

If it breaks the INR 900 level, the stock is expected to witness a further rally till INR 1,050-INR 1,100 in the short term, De added.

CarTrade shares are trading over 86% higher year to date (YTD).

Mamaearth Makes A Muted Market Debut

With the market already showing that it’s averse to loss-making entities, the shares of Mamaearth saw a muted listing.

Earlier this week, the shares listed on the NSE at INR 330 at a premium of about 2% compared to the issue price of INR 324. On the BSE, shares of Mamaearth listed flat at INR 324.

Following its listing on Tuesday, the shares nosedived further to end Thursday’s close at INR 302.15 on the BSE. 

However, the shares gained over 5% on Friday to end the week at INR 319.5, down 1.4% from the listing price.

It must be noted that given the company posted a loss in FY23, high offer for sale (OFS) component in the IPO, and a valuation which many perceived to be high, there were already expectations that the stock wouldn’t receive much interest from retail investors.

After the listing, Prashanth Tapse, senior VP research analyst at Mehta Equities said that though risky investors feel the price is good for the long term as the business model has a high potential for growth, the brokerage remains cautious on Mamaearth.

Nykaa’s Q2 Numbers Divide Brokerages

Shares of Nykaa gained 6.8% this week on the back of the beauty and fashion ecommerce giant’s Q2 FY24 results, which showed a strong rebound in its fashion business.

While the consolidated gross merchandise value (GMV) of Nykaa’s beauty and personal (BPC) vertical grew 23% YoY, the growth was 27% YoY for Nykaa Fashion.

Overall, Nykaa’s Q2 PAT grew 50% YoY to INR 7.8 Cr. It also rose 44.4% sequentially.

However, brokerages were divided on the company’s Q2 earnings, which slightly missed the market estimates.

Bernstein pointed at the increasing competition in the BPC space as a reason for this miss.

On the other hand, emphasising its positive stance on the fashion business, JM Financial said  Nykaa would retain its competitive edge as the preferred platform for brand launches in the BPC business with its marketing initiatives to provide brand visibility and its premium and sticky customer base.

Shares of Nykaa ended the week at INR 149.85, 1.7% higher than Thursday’s close.

LKP Securities’ De said the stock has formed its base and now it needs to clear the INR 160 mark to witness a decent rally in the short term.

Once Nykaa clears the INR 160 level, it might move towards the INR 180 level, he added.

The post New-Age Tech Stocks Witness A Mixed Week; CarTrade Emerges The Biggest Winner After Q2 Earnings appeared first on Inc42 Media.

Travel Boutique Online, or TBO Tek Ltd, has filed its draft red herring prospectus (DRHP) with the markets regulator Securities and Exchange Board of India (SEBI). The company’s initial public offering will comprise a fresh issue of shares up to INR 400 Cr and an offer-for-sale (OFS) component of 1.56 Cr equity shares.

As per the company’s draft filing, promoters Gaurav Bhatnagar, Manish Dhingra and LAP Travel, along with investors TBO Korea and Augusta TBO, will be selling their stakes via the OFS. 

TBO aims to utilise the net proceeds from the fresh issue towards growing and strengthening its platform by adding new buyers and suppliers, unidentified inorganic acquisitions, and general corporate purposes. 

Founded in 2006, TBO is a B2B travel portal which provides solutions to travel agents and tour operators. TBO offers white label solutions, hotel and flight booking APIs, dynamic packages, among others. 

The platform claims to connect over 1,47,000 buyers across over 100 countries with more than 1 Mn suppliers, as of June 30, 2023. It also claims to offer over 7,500 destinations and facilitate 33,000 bookings every day. 

As per the DRHP, TBO’s profit increased to INR 148.49 Cr in FY23 from INR 33.72 Cr in FY22. The company’s total income also jumped to INR 1,085.77 Cr in FY23 from INR 511.93 Cr in FY22.

Meanwhile, the platform clocked a total income of INR 347.88 Cr and a profit of INR 47.3 Cr in Q1 FY24.

It is pertinent to note that this is TBO’s second attempt to go public. It first filed its DRHP in December 2021 and had received the market regulator’s approval for an INR 2,100 Cr IPO. However, it did not launch the IPO.

The latest draft filing by the company comes at a time when the new-age technology IPO market is witnessing some revival after a lull.

Five new-age tech companies have gone public so far this year, though the investors’ reaction to them remained largely muted, except for ideaForge that listed at the bourses at a 94% premium to its issue price. 

Last month, Gurugram-headquartered integrated agri-drone company AITMC Ventures also filed its DRHP with the SEBI for an initial public offering (IPO) on the NSE’s SME platform, NSE Emerge.

The post TBO Tek Files DRHP For IPO, To Raise INR 400 Cr Via Fresh Issue appeared first on Inc42 Media.

Gaming major Nazara Technologies’ consolidated profit after tax (PAT) jumped 53% to INR 24.2 Cr in the September quarter (Q2) of the financial year 2023-24 (FY24) from INR 15.8 Cr in the year-ago quarter, with the esports vertical driving the growth.

The company’s PAT also rose 15.8% from INR 20.9 Cr in Q1 FY24. 

Nazara’s operating revenue grew 13% to INR 297.2 Cr in the reported quarter from INR 263.8 Cr in Q2 FY23. This was almost a 17% jump from INR 254.4 Cr operating revenue the company posted in the June quarter of the current fiscal.

The esports vertical witnessed the highest growth during the quarter, with revenue jumping almost 26% year-on-year (YoY) and 46% sequentially to INR 172 Cr.

On the other hand, the gaming vertical, which includes NODWIN gaming and SportsKeeda, registered a 13.8% YoY rise to INR 104.3 Cr in revenue. However, this was a slight dip on a quarter-on-quarter (QoQ) basis.

Meanwhile, the adtech vertical saw a contraction in the September quarter, with revenue dipping 36.5% YoY and 18.4% QoQ to INR 22.5 Cr. 

The company’s EBITDA rose 30% YoY to INR 27.9 Cr in Q2 FY24.

During its Q2 earnings announcement, Nazara reiterated that it is bolstering its acquisition playbook.

Nitish Mittersain, founder, CEO and joint MD of Nazara, said that with a consolidated cash position of around INR 1,300 Cr, Nazara is “exceptionally well-positioned” to seize acquisition opportunities and expedite its growth in the years ahead.

It must be noted that during the reported quarter, Nazara raised a fresh capital of INR 510 Cr from investors including Zerodha’s Nikhil Kamath and SBI Mutual Fund.

Recently speaking to Inc42, Mittersain said the gaming company was planning to deploy a large portion of the freshly raised capital for new investments, with some acquisitions, especially in gaming studios.

During its Q2 FY24 earnings, Nazara also announced granting 9,000 employee stock options (ESOPs) under the Nazara Technologies Employee Stock Option Scheme 2023 to the eligible employees of the company. 

The ESOPs have an exercise price of INR 833.35 per option.

Nazara’s Expenses In Q2

The gaming unicorn’s expenses grew 9.7% to INR 288.3 Cr in the reported quarter from INR 262.7 Cr in Q2 FY23.

At INR 84.7 Cr, content, event, and web server expenses accounted for the largest chunk of expenditure.

Meanwhile, the company’s spending towards the purchase of stock in trade more than doubled YoY to INR 69.7 Cr in Q2 FY24.

Nazara’s employee benefit expenses jumped to INR 48.9 Cr during the quarter under review from INR 34.4 Cr in the previous year’s quarter.

However, the company managed to bring down its advertising and business promotion expenses to INR 47.4 Cr in Q2 FY23 from INR 71.3 Cr in the year-ago quarter.

Shares of Nazara ended today’s session marginally lower at INR 831.3 on the BSE.

The post Nazara’s PAT Jumps 53% YoY To INR 24.2 Cr In Q2 appeared first on Inc42 Media.

Investech startup INDmoney reported a 7.7% rise in net loss to INR 73.9 Cr in the financial year 2022-23 (FY23) from INR 68.6 Cr reported in the previous fiscal year, hurt by a sharp jump in its employee benefit expenses.

The bottom line was hurt despite INDmoney’s operating revenue almost doubling to INR 40.6 Cr during the year from INR 21.8 Cr in FY22.

Founded by Ashish Kashyap in 2019, INDmoney claims to be a one-stop super finance app for saving and investing. The startup allows users to invest in stocks, mutual funds, IPOs, and fixed deposits. Users can also invest in US stocks through the INDmoney app.

As such, the startup earns operating revenue from the sale of services, which includes income from advisory and distribution services and income from broking activities.

In FY23, INDmoney earned a majority of its revenue from other income, including gain from sale of investments and other non-operating income.

INDMoney’s other income stood at INR 46.7 Cr in FY23 as against INR 19.7 Cr in the previous year.

Overall, the startup’s total revenue jumped 111% year-on-year (YoY) to INR 87.4 Cr in FY23.

INDmoney is backed by marquee investors like Tiger Global, Steadview Capital,  Sixteenth Street Capital, and angels like Lenskart founder Peyush Bansal and influencer and founder of Nearbuy.com, Ankur Warikoo.

The startup competes with the likes of Upstox, Groww, and Zerodha. 

Zooming Into The Expenses

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

Employee Costs The Biggest Expense: At INR 111.9 Cr, employee benefit expenses accounted for 56% of the startup’s total expenditure. 

Employee benefit expenses jumped 2.6X YoY from INR 42.3 Cr due to a sharp increase in ESOP costs.

While INDMoney spent INR 58.9 Cr towards salaries and wages, its employee share-based payment (equity settled) jumped over 11X YoY to INR 47.6 Cr in FY23.

Marketing Expenses Decline: INDmoney managed to cut its marketing costs by over one-fourth to INR 41 Cr in the reported year from INR 57 Cr in FY22.

Among other expenses, the startup’s total depreciation, depletion, and amortisation expense grew to INR 5.4 Cr in the reported period from INR 3.7 Cr a year ago. Meanwhile, software, cloud storage, and server charges grew 1.3X YoY to INR 32.1 Cr in FY23.

INDmoney last raised $11 Mn in its Series D funding round in March last year.

The post INDmoney’s FY23 Net Loss Widens To INR 73.9 Cr, Revenue More Than Doubles appeared first on Inc42 Media.

From horse wagons to iconic black and yellow Fiat Padmini cruising through the bustling streets of Indian metropolises, the evolution of taxis in India is rich and quite elaborate. It’s a journey that has also seen transformative changes, from the emergence of Ola and Uber to the current era of hassle-free electric vehicle cabs. 

The history of taxis in India also tells us that the highly unorganised sector underwent a major transition 10 years ago when Uber entered the country in August 2013 and Android smartphones were baptising Indian telecom users at a break-neck speed.

Up until the entry of Uber in India, autorickshaws (three-wheelers), too, remained the dominating force for passenger intracity transit. However, by the time 2013 ended, a majority of Indians were seen ditching traditional taxis, only to shift to the new ones – Ola and Uber. This is because Indians could now book cabs with a single tap on their smartphone and get discounts and free rides while using these services. 

On the other hand, a wave of new drivers entered this segment and joined Ola and Uber, lapping up handsome monthly earnings. Finally, the market was disrupted, dominated and captured by these new players, outpacing traditional taxis.

A decade later, history seems to be repeating itself, as a new race of taxi service providers has now started disrupting the ride-hailing market, freeing customers from inconveniences such as ride cancellations, surges, and subpar quality of services in many cases.

At the forefront of this seismic shift are Mayank Bindal and Jaydip Mukherjee, who want to address the existing pain points in urban transportation with their electric cab service, Snap-E Cabs.

Incorporated in 2022, the Kolkata-based startup offers several unique value propositions — from no-cancellation policies to no-surge fees — to passengers, who rely on the duopoly of Ola and Uber to move from point A to point B in the city.

Since its inception, the e-cabs provider has expanded its business significantly in Kolkata, with hardly any commitment to pipeline emissions. 

With a push from the government to increase passenger and commercial EVs in the country, the sector is expected to witness unprecedented growth soon. 

As per Vahan data, of the total 1.77 Lakh motor cabs registered till November 1 this year, more than 8K vehicles are electric. In 2022, the number stood at 1.14 Lakh versus 4.9K+ units.

Humble Beginnings Of The Bootstrapped Snap-E

When Snap-E initiated its operations in August 2022, the startup did not have an app and instead partnered with Uber to deploy its e-taxis on the streets of Kolkata.

Acquiring customers is one of the most challenging parts of app-based B2C businesses, cofounder and CEO Bindal told Inc42, reminiscing how the startup began its humble journey.

This very dilemma led Snap-E to opt for collaborating with Uber’s platform but with Snap-E’s branding on vehicles. This strategic decision helped the startup curtail the initial expenses associated with managing an app, customer relationships, and onboarding.

Much to everyone’s surprise, the startup witnessed a demand surge within two months of its operations. This also proved to be a huge learning curve for Bindal, who told Inc42 that they were able to disrupt the market and establish themselves just by streamlining the supply side of the sector. 

“After seeing an unexpected demand surge, we realised that the real problem was in supply and not demand, following which we launched our app in October 2022, which received 30K downloads within weeks, giving us the window to emerge as a separate brand,” Bindal said.

The Snap-E app today has 4-5 Lakh downloads, and the startup receives close to 12K-15K ride requests daily in and around Kolkata.

“Unfortunately, with supply being a challenge, we are only able to do anywhere between 2,500-3,000 rides a day,” he added.

To resolve the demand side of the issue, the cofounder wants to take his current fleet of around 600 EVs to 1,000 by March next year.

An Uber challenger, Snap-E has procured about 160-170 cars from leasing firms like Mahindra and Muffin Green. For the remaining cars in its current fleet, the startup has taken bank loans. 

According to Bindal, with about INR 20-22 Cr internal investment, Snap-E is bootstrapped so far. 

Snap-E’s Always On Roads 

 In addition to its B2C taxi service model, Snap-E also operates a B2B business segment. The company has established partnerships with corporations such as TCS, Wipro, Cognizant, and several others to offer pick-and-drop services to their employees.

“Compared to cities like Delhi, Mumbai, and Bengaluru, Kolkata is still more of a day city and there is little traffic post 11 PM. That is predominantly the reason that we thought B2B was going to give us a steady stream of revenue with the maximum utilisation for our cars. And since the IT companies need cars for employee transportation, we decided to tie up with them,” Bindal said.

Snap-E effectively deploys all its vehicles during the day, with approximately 30-35% of them dedicated to providing employee pick-and-drop services during the nighttime hours.

Currently, around 75% of the company’s total revenue is derived from its B2C operations, while the remaining 25% originates from its B2B engagements.

In terms of its overall business performance, Snap-E achieved a gross merchandise value (GMV) of INR 2.45 Cr in September alone. Over the past six months, the total GMV has amounted to INR 11 Cr.

Snap-E follows a pricing structure that entails a flat fee of INR 150 for journeys up to 5 Km. Beyond this initial distance, the charge increases by INR 22.5 per km.

Building The Ecosystem

We cannot ignore the fact that building a robust charging infrastructure is the most important aspect when it comes to increasing the number of EVs and boosting the overall EV ecosystem. 

Staying one step ahead in ensuring that its business runs seamlessly, Bindal said that Snap-E has established partnerships with various charge point operators (CPOs) such as Jio-bp, Tata Power, Chargezone, Evre, and others.

However, in the long run, the startup wants to do more than just depend on these CPOs. It wants to operate its own charging stations. 

Snap-E has already signed an MoU with Kolkata Port Trust for building the charging stations, and the authority is ready to give them parcels of land on lease for 20-25 years.

Furthermore, the startup has commenced the process of entering into contracts with various potential parking aggregators to facilitate the operation of its vehicles in key locations, including airports and railway stations.

Meanwhile, Snap-E aims to deploy 2,000-3,000 more cars in Kolkata in the next 18-24 months. Moving forward, the startup aims to expand to other cities that have less access to ride-hailing platforms.

Raipur in Chhattisgarh and Bhuvaneshwar in Odisha are the two Indian cities Snap-E is currently planning to foray into, all while expanding its footprint in Kolkata.

Meanwhile, the startup is in talks with some VC firms and angel investors to raise funds. If the talks move through, Snap-E may announce the news in the next few months. The cofounder, however, has not disclosed the amount that he wishes to pick.

It’s worth noting Snap-E competes with players like BluSmart, Uber, Ola, and others, making significant strides in the EV ride-hailing space. 

BluSmart, for instance, promotes customer-friendly features such as no surge fees and a no-cancellation policy, although its operations are currently limited to Bengaluru and Delhi-NCR.

Notable, Snap-E, too, is part of this rapidly evolving landscape and seems to be carving a niche for itself as one of the pioneering e-cab service providers.

However, going ahead, it will be fascinating to observe how the startup positions itself in the market in the years to come, especially when it comes to operating alongside established ride-hailing giants.

The post How The Uber Challenger Snap-E Cabs Is Disrupting Kolkata’s Ride-Hailing Market appeared first on Inc42 Media.

Shares of Nykaa jumped almost 5% to INR 154.65 on the BSE on Tuesday (November 7), a day after the beauty and fashion ecommerce major reported Q2 FY24 earnings, which showed its fashion vertical making a strong comeback.

Nykaa posted a 50% year-on-year (YoY) jump in consolidated net profit to INR 7.8 Cr in Q2, which was also a 44.4% rise on a quarter-on-quarter (QoQ) basis. While the company witnessed growth across verticals, particularly in the fashion vertical, it was also able to cut down some expenses. 

Following the release of the results, Kotak Institutional Equities revised its fair value on the stock to INR 170 from INR 165 earlier, which implies an upside of 13.9% to the stock’s last close of INR 149.3 on the BSE today.

The brokerage maintained its ‘add’ rating on the stock but cut FY24 earnings estimates due to lower gross margin and higher depreciation charges. It also trimmed FY24-26 revenue estimates for Nykaa, primarily on account of lower BPC revenues, which is expected to result in lower gross margin value (GMV) to revenue conversion.

On the other hand, Bernstein retained INR 140 price target (PT) on Nykaa. However, with the competition intensifying, the brokerage expects Nykaa’s margins to remain under pressure.

Bernstein also said that the company missed its Q2 EBITDA margin and PAT estimates due to increasing competition in the beauty and personal care (BPC) vertical.

It must be noted that Nykaa’s consolidated GMV in the BPC category grew 23% YoY to INR 2,001.6 Cr in Q2, while GMV in the fashion vertical rose 27% YoY to INR 762.8 Cr.

With the BPC segment expected to be in focus in Q3 due to festive sales, Nykaa Fashion garnered a majority of the attention in Q2, JM Financial said in its report. 

Speaking during the earnings call on Monday, Adwaita Nayar, CEO of Nykaa Fashion, said that the vertical has reached its peak loss and its books are set to improve from hereon. 

“I do also feel that some of the challenges we faced in Q4 and Q1, the last two quarters, were pretty unique, I don’t see that coming back. I do find that Q2, Q3 and onwards, both the growth as well as the profitability will be moving in the right direction,” she added.

JM Financial, in its research report, retained its ‘buy’ rating on Nykaa with a PT of INR 210, implying an upside of 42% as it has strong conviction on the fashion vertical achieving profitability earlier than expected. 

The higher growth of net sales value (NSV) also reflects that the company has been successful in plugging leakages by undertaking line-by-line efforts such as reducing RTOs, minimising returns, churning out abusive customers and pin codes while increasing cart charges, along with improving assortment and focus on women and the premium category, the brokerage added.

For the BPC business, the brokerage expects Nykaa to retain its competitive edge as the preferred platform for brand launches, with marketing initiatives to provide brand visibility, along with its premium and sticky customer base.

The post Nykaa Jumps 5% Intraday On BSE After Q2 Earnings; Brokerages Divided appeared first on Inc42 Media.

Shares of Honasa Consumer Ltd, the parent entity of D2C unicorn Mamaearth, ended Tuesday’s (November 7) trading session at INR 337.15 on the BSE, up 4.06% from their listing price.

The new-age tech startup made almost a flat debut on the Indian bourses today. While its shares listed at a 2% premium at INR 330 on the NSE, Mamaearth shares listed at INR 324 on the BSE.

The price band for the IPO was set at INR 308-INR 324. 

Mamaearth shares jumped almost 5% to INR 340 during the intraday trading, but later pared some of the gains to settle at 4% above the IPO price.

On the NSE, the shares ended the trading session at INR 337.3, up 2.21% from the listing price.

Mamaearth’s market cap currently stands at $1.3 Bn.

Founded by the husband-wife duo of Ghazal and Varun Alagh in 2016, Honasa Consumer retails several beauty and personal care brands, including Mamaearth, The Derma Co., Ayuga, Aqualogica and Dr Sheth’s. The company filed its draft red herring prospectus (DRHP) in December last year. 

The IPO was oversubscribed 7.61X, with the highest demand coming from qualified institutional buyers (QIBs).

The public issue comprised a fresh issue of shares worth INR 365 Cr and an offer for sale (OFS) component of 4.12 Cr shares. However, the company’s loss of INR 151 Cr in FY23 raised concerns in some quarters about the stock’s outlook for the near to medium term.

Meanwhile, the early investors in the company, many of whom sold their shares through the OFS route, made big gains from the IPO.

At the upper end of the IPO listing price, INR 324, Snapdeal cofounders Rohit Bansal and Kunal Bahl made nearly 101X returns on their initial investment, while actor Shilpa Shetty’s returns stood at about 7.74X. 

On the other hand, Mamaearth is reportedly Peak XV’s fourth investment in the country to offer a 10X or greater returns in the past six months since the split from its parent Sequoia. 

The post Mamaearth IPO: Shares End First Trading Session 4% Higher From Listing Price appeared first on Inc42 Media.

Online classifieds major Info Edge reported a consolidated net profit of INR 239.7 Cr in the September quarter (Q2) of the financial year 2023-24 (FY24), a jump of 155.3% from INR 93.9 Cr in the year-ago quarter helped by cost control measures and growth in two verticals – Naukri.com and 99acres.com.

Sequentially, net profit rose almost 63% from INR 147.4 Cr. 

It must be noted that Info Edge made an exceptional gain of INR 46.01 Cr during the quarter under review. While it incurred a loss of INR 15 Cr from the provision for diminution in the carrying value of its investments during the reported quarter, Info Edge said it gained INR 61.10 Cr from disposal of a joint venture.

Info Edge’s operating revenue jumped to INR 625.8 Cr in the reported quarter from INR 604.1 Cr in Q2 FY23. 

However, on a quarter-on-quarter (QoQ) basis, the company’s operating revenue remained almost flat compared to INR 625.9 Cr posted in the June quarter of the current fiscal.

Meanwhile, Info Edge’s other income jumped over 161% QoQ to INR 166.2 Cr in Q2 FY24.

Info Edge’s online recruitment platform Naukri.com posted revenue of INR 468 Cr, a 7.4% rise YoY, while its real estate portal 99acres.com’s revenue jumped 27% YoY to INR 87.3 Cr.

Meanwhile, its other segments, which comprise matrimony portal Jeevansathi.com and education platform Shiksha, witnessed a decline in income to INR 70.6 Cr in Q2 FY24 from INR 98.6 Cr in the corresponding period of last year.

Info Edge also announced an interim dividend of INR 10 per share for FY24, which would be paid on or after November 29, 2023.

Following the announcements, the company’s shares fell and were trading marginally lower at INR 4,306 on the BSE by 2.30 PM IST.

Info Edge’s Expenses In Q2

The company’s total expenditure increased 7.7% YoY and 1% QoQ to INR 455.3 Cr in Q2 FY24, with employee benefits expenses continuing to comprise the largest portion of it.

However, Info Edge managed to bring down its employee cost on YoY and QoQ basis to INR 276.4 Cr in the quarter under review. The company spent INR 299.6 Cr in Q2 FY23 and INR 281.7 Cr in Q1 FY24 towards employee benefits.

Info Edge’s advertising and promotion cost also declined almost 18% YoY to INR 86.5 Cr in the September quarter this year. However, this was a slight increase from INR 85.6 Cr in Q1 FY24.

Other expenses more than halved YoY to INR 40 Cr in Q2 FY24, while network, internet and other direct charges increased almost 11% YoY to INR 18.3 Cr during the quarter.

We must note that Info Edge had returned to black in the previous quarter after reporting a net loss of INR 503.2 Cr in the March quarter of FY23 due to the writing-off of its investment in Rahul Yadav’s 4B Networks and Bijnis.

The post Info Edge’s Q2 Net Profit More Than Doubles YoY To INR 239.7 Cr appeared first on Inc42 Media.

Shares of Zomato touched a fresh 52-week high at INR 123.9 on the BSE on Monday (November 6) as they jumped as much as 6.4% during the intraday trading on the back of the company’s robust Q2 FY24 earnings and positive Street view on the stock.

The foodtech major reported its second consecutive profitable quarter on Friday as its Q2 PAT jumped to INR 36 Cr from INR 2 Cr reported in Q1 FY24. Zomato saw strong growth across business verticals, including quick commerce platform Blinkit, during the quarter under review.

Following the announcement of results, at least nine brokerages raised their price targets (PTs) on Zomato.

Raising its PT on the stock to INR 145 from INR 120 earlier, Bernstein said that Zomato flywheel is not only turning but also accelerating into a dominant platform across food delivery and commerce.

The brokerage increased its PT on the back of Zomato’s better-than-expected growth in the quarter, positive outlook, and an improvement in the market conditions that led to a higher uptick in monthly transacting users (MTUs). It also increased Zomato’s food delivery revenue estimate for FY24 and FY25 by 3% and 4%, respectively.

On the other hand, Kotak Institutional Equities increased its fair value for the stock to INR 130 from INR 125 earlier, which implies an upside of 5.4% to the stock’s last close of INR 123.3 on the BSE today.

The brokerage also upgraded its FY2024-26 revenue estimates by 10-11%, which it expects to be driven by all three segments of Zomato’s business. However, Kotak expects higher ESOP costs for FY25.

JM Financial said that following its Q2 results and strong gross order value (GOV) growth outlook for key businesses, Zomato’s shares will remain buoyant. 

“With food delivery EBITDA margin gradually moving towards steady state levels and Blinkit business turning contribution level profitable, we now use a lower WACC (Weighted Average Cost of Capital) assumption of 12% versus 13% earlier,” said the brokerage as it raised its PT on Zomato to INR 155 from INR 115 earlier.

It must be noted that Q2 FY24 was the first full contribution positive quarter for Blinkit. 

Highlighting that Zomato’s gold subscribers contributed about 40% to Zomato’s food delivery GOV compared to 33% and 19% in Q1 FY24 and Q4 FY23, JM Financial said this development augurs well for the business as subscriptions typically have a positive impact on customer stickiness and ordering frequencies. 

At a time when the entry of the government-backed ONDC in the food delivery space has raised some concerns about the impact on Zomato’s business, Motilal Oswal reiterated that it does not expect the competition to intensify further for the Deepinder Goyal-led company. 

It also reiterated its positive stance on the long-term growth opportunity for Zomato and increased PT to INR 135, which implies an upside of 9.5% to the stock’s last close.

Elara Capital increased its PT on Zomato to INR 150 from INR 140 earlier, implying an upside of over 21% to its last close.

“We believe Zomato’s clout in the food business (duopoly nature) and scalability prospects in Blinkit may drive share price performance,” the brokerage said.

Jefferies increased its PT on the stock to INR 165 from INR 130.

It is pertinent to note that shares of Zomato have gained 107.7% so far this year on the back of strong growth and the company turning profitable. Its market cap has also crossed the $12 Bn mark from $6 Bn at the end of last year.

Twenty three out of the 27 brokerages covering Zomato have a ‘buy’ or above rating on the stock, while four rate the stock as ‘sell’ or lower.

The post Zomato Rallies Further To Touch A New 52-Week High At INR 123.9 After Strong Q2 Show appeared first on Inc42 Media.

Beauty and fashion ecommerce major Nykaa’s consolidated net profit jumped 50% to INR 7.8 Cr in the September quarter (Q2) of the financial year 2023-24 (FY24) from INR 5.2 Cr in the last year’s quarter, helped by growth across business verticals and cost control measures.

Even on a sequential basis, the net profit grew 44.4% from INR 5.4 Cr in Q1 FY24.

Meanwhile, operating revenue grew 22.4% to INR 1,507 Cr in the reported quarter from INR 1,230.8 Cr in Q2 FY23. It also increased on a quarter-on-quarter basis from INR 1,421.8 Cr. 

In a statement, Nykaa said “the quality of its business” continues to witness improvements. EBITDA margin expanded to 5.4% in Q2 FY24 on the back of both direct and indirect cost efficiencies, it added.

However, Nykaa’s gross margin as a percentage to revenue from operations contracted 221 basis points YoY. It was stable on a sequential basis. 

Nykaa’s overall gross merchandise value (GMV) increased 25% YoY to INR 2,943.5 Cr in Q2 FY24. This was also a 10.3% increase compared to INR 2,667.8 Cr reported in the prior quarter.

Nykaa said its consolidated GMV in the beauty and personal (BPC) category grew 23% YoY to INR 2,001.6 Cr during the quarter under review. In Q1 FY24, the BPC major’s GMV for the segment stood at INR 1,850.8 Cr.

The company said that the festive season is a big driver of consumption in the beauty category and a shift of around 20 days in the festive calendar impacted some growth in the BPC category in Q2.

Meanwhile, discounting in the vertical also increased in the quarter, which Nykaa attributed to the increasing proliferation of home-grown and international brands.

The net sales value (NSV) of Nykaa’s BPC vertical grew 19% YoY to INR 1,167.5 Cr in Q2 FY24.

Nykaa’s “Hot Pink Sale” event held in July this year also resulted in a strong engagement. The sales witnessed over 18 Mn visits with an order to visit conversion of 1.3%, it said.

CEO of beauty and ecommerce of Nykaa Anchit Nayar, during the company’s post-earnings call, said Nykaa witnessed a trend of increasing interest towards Korean beauty brands in the September quarter.

On the other hand, Nykaa’s fashion vertical also saw strong growth in Q2. GMV grew 27% YoY to INR 762.8 Cr. In Q1 FY24, the GMV of Nykaa’s fashion vertical stood at INR 653.7 Cr.

Nykaa’s Cost-Control Measures 

Nykaa was able to reduce employee costs, spending towards purchase of traded goods, and cost of material consumed on a QoQ basis in the September quarter. In the post-earnings call, Nykaa said cost optimisation and cost control resulted in a strong uptick in its profit margins.

The beauty ecommerce major spent INR 136.3 Cr towards employee benefits in Q2 FY24, down from INR 138.6 Cr in the June quarter. As a result, Nykaa’s employee expenses as a percentage of revenue fell to 9% from 9.7% in Q1 FY24. On a YoY basis, this fell from 9.9% posted in Q2 FY23.

Nykaa’s cost of materials also declined 16.7% sequentially to INR 15.5 Cr in Q2 FY24. 

On the other hand, the company’s expenses towards the purchase of traded goods fell 43.5% QoQ to INR 553 Cr in the reported quarter.

However, Nykaa’s marketing and advertising expenses increased 25% YoY and 6% QoQ to INR 169 Cr in Q2 FY24. But the expenses in this bucket as a percentage of revenue remained unchanged QoQ at 11.2%.

The company’s selling and distribution expenses also increased 16% YoY and 7% QoQ to INR 34.6 Cr.

Meanwhile, Nykaa said that its regionalisation strategy, as part of which it expanded its warehouse locations and capacity in FY23, led to reduction in its fulfilment expenses as a percentage of revenue in Q2 compared to the year-ago quarter. 

Nykaa’s fulfilment expenses stood at INR 145.9 Cr in Q2 FY24 as against INR 145.4 Cr a year ago. 

Overall, the company’s total expenses increased 5.9% sequentially and 22.3% YoY to INR 1,502.3 Cr in Q2 FY24.

Shares of Nykaa ended today’s trading session 5.1% higher at INR 147.45 on the BSE.

The post Nykaa Q2 Net Profit Jumps 50% YoY To INR 7.8 Cr appeared first on Inc42 Media.

From bullet trains to state-of-the-art maglev (magnetic levitation) systems, countries across the globe have long been obsessed with making their locomotives run at break-neck speeds, all while maintaining safety. 

However, this fascination reached new heights in 2013 when Tesla CEO Elon Musk, in one of his research papers, introduced the concept of hyperloop. 

This innovative technology envisions trains hurtling through low-pressure tubes at more than 1,200 km/h, paving the way for a new era of rapid transit. For context, the fastest train in the world is the Shanghai Transrapid Maglev Train in China, which is capable of reaching speeds of over 400 km/h.

Despite intriguing the interest of many nations across the globe, the technology, which today is being envisioned as the fifth mode of transportation, continues to be a distant dream even a decade later.

Meanwhile, something quite interesting is happening back home. Well, several entities, including state governments and private players, have been mulling the development and deployment of hyperloop technology in the country for a few years now. And at the forefront of this paradigm shift is a Pune-based startup, Quintrans.

Founded in 2021 by Pranay Luniya, Kartik Kulkarni, Aniruddha Atigre, and Prasanna Kadambi, Quintrans is developing the country’s very own hyperloop technology, aiming to connect the Pune-Mumbai route. 

Notably, the startup is already in discussion with the Maharashtra government to deploy its tech on the route. The project, if sees the light of day, has the potential to reduce the 3-hour journey to just 30 minutes. 

Amid this, the most interesting part of the Quintrans story is that it is working in a space that is yet to become fully tangible. Nevertheless, with several projects and research across the globe, the hyperloop technology is expected to soon cater to an increasing need for a faster and cheaper transportation system.  

As per a research report, the global Hyperloop train market size is projected to achieve a market size of $57.5 Bn by 2032.

Quintrans: The Genesis

Before becoming a fully functional business, a startup if you will, Quintrans was initially a research unit, which the then engineering students of MIT Pune (now the cofounders of Quintrans) started in 2018.

Speaking with Inc42, the CEO of Quintrans, Luniya, said that the research unit got a startup makeover after the team realised the commercial viability of the project were working on.

Taking clues from Musk’s research, the cofounders developed their Hyperloop technology, which they showcased at several global competitions, including the SpaceX Hyperloop pod competition and European Hyperloop Week.

These competitions gave them a major push and they were able to attract the attention of companies like IBM India, Festo India, and Aeron Systems, which gave them financial backing. 

Currently, Quintrans has reached a stage where it is developing a 30-metre full-scale pilot setup of its Hyperloop in Pune to showcase the technology and its potential to different authorities, including the Railway Ministry, NITI Aayog, the Maharashtra government, and others. The startup aims to develop the prototype by the end of 2024.

Quintrans has so far received around INR 80 Lakh-INR 85 Lakh as grant money. Luniya said that currently, an agreement for another INR 60 Lakh-INR 80 Lakh government grant is under process, which is expected to happen by December this year or January 2024.

Unlocking New Avenues In Cargo Movement

As per Luniya, the proposition for passenger hyperloops is going to take at least another decade. Hence, Quintrans is not limiting itself to only speeding up the Pune-Mumbai route railway movement with its technology.

The startup has already started exploring alternate ways of generating revenue from industries that require guided movement of vehicles for cargo, particularly in the logistics space.

The company is already in talks with a few port authorities in India where Quintrans’ technology can power the movement of shipping containers from ports to cargo hubs. 

Besides, the startup is also in talks with some industrial corridors to help them fast-track the transportation of goods from one corridor to the other, built 30-40 km apart.

Quintrans has held discussions with the Maharashtra Industrial Development Corporation (MIDC) and the National Industrial Corridor Development Corporation (NICDC) for the same. It is also looking to collaborate with Bengaluru International Airport to help the authority in exploring ways to connect the airport with the centre of the city.

While most of these entities are interested in deploying the technology, they require a better understanding of Hyperloop, Luniyas said, adding that the startup’s 30-metre pilot track is a step in that direction.

Forging Ahead In The Hyperloop Frontier

While Quintrans aims to keep itself open to various other channels for generating revenue, its research to further develop the 30-metre track will continue. Also, the company is in talks with a few VCs to raise funds.

Establishing Hyperloops is cost-intensive, which has also been one of the barriers to deploying it at scale anywhere in the world.

Today, the 30-metre pilot set up by Quintrans in India costs around $1 Mn. “Going ahead, the per km cost of the hyperloop would be somewhere around INR 150 Cr,” Luniya said.

While regulatory challenges in the implementation and execution of Hyperloops, particularly due to safety concerns, also remain a major roadblock, Luniya believes that more tests carried out by tech players like Quintrans would help prove the merits of the technology.

In India, the startup competes with DGWHyperloop and research units like Avishkar Hyperloop. In the global market, some of the startups working on this tech include Europe’s Zeleros Hyperloop and Hardt Hyperloop.

While many, including Richard Branson’s Hyperloop One (Virgin Hyperloop), have failed to make the technology a reality even after millions of dollars of investment, it will be interesting to see how Quintrans pulls it off.

[Edited by Shishir Parasher]

The post The Need For Speed: Pune-Based Startup Quintrans Wants To Bring Hyperloop To India appeared first on Inc42 Media.

Shares of listed new-age tech startups saw some recovery this week on the back of a rally in the broader market and positive Q2 FY24 earnings.

Twelve out of the 18 stocks under Inc42’s coverage, including RateGain, Zomato, EaseMyTrip, Zaggle, Nazara Technologies, and Paytm, gained in a range of 0.2% to over 11% this week.

RateGain, which reported doubling of its Q2 profit last Friday, emerged as the biggest gainer this week, with its shares rallying 11.6%. It was followed by Zomato, which jumped almost 10%.

On the other hand, ideaForge, Fino Payments, Delhivery, DroneAcharya, IndiaMART, and Yudiz witnessed a decline this week, falling between 0.6% and over 6%. IndiaMART was the biggest loser this week.

Amid the ongoing volatility in the market, another new-age tech startup, Mamaearth, is all set to make its stock market debut. The D2C unicorn’s IPO closed this week and was oversubscribed 7.61X.

Meanwhile, benchmark indices Sensex and Nifty50 gained 0.91% and 0.96%, respectively, this week. While Sensex ended Friday’s trading at 64,363.78, Nifty50 closed at 19,230.60. After falling at the beginning of the week, the market rallied in the last two sessions.

“The market exhibited a cautious tone at the outset, influenced by the uncertainty surrounding the US Fed’s policy meeting. However, as the week progressed, the apprehension dissipated, and market sentiments rebounded. This turnaround was partly attributed to a modest decline in oil prices, which raised optimism about a potential pause in Fed actions,” opined Vinod Nair, head of research at Geojit Financial Services.

Besides, robust corporate earnings from Indian companies and stable domestic macroeconomic PMI also provided a boost, he said.

“Next week, the market is anticipating results from major PSU banks,  auto, and metal sectors with an optimistic outlook,” Nair added.

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

The total market capitalisation of the 18 new-age tech stocks under Inc42’s coverage stood at  $40.67 Bn at the end of this week as against $37.24 Bn last week.

Zomato Reports Second Profitable Quarter

Shares of Zomato rallied over 8% on the BSE to INR 116.4 on Friday, ending above their listing price on the bourses after almost 22 months. The rally followed the foodtech startup’s announcement of a second consecutive profitable quarter in Q2 FY24.

Zomato posted a profit of INR 36 Cr in Q2 on Friday, which was an 18X jump sequentially. Its operating income stood at INR 2,848 Cr during the quarter under review.

Meanwhile, its quick commerce business also showed impressive growth in Q2 and turned contribution positive for the first time.

Following the release of the results, the company also announced allotting about 10.65 Cr equity shares under multiple employee stock option plans (ESOPs).

Kush Ghodasara, CMT and an independent market expert, believes that Zomato will be a multibagger stock from here on as all its business verticals are growing. The company is also finding new ways to monetise, he said, citing the recent launch of Zomato Xtreme. 

Currently, INR 100 or its 50-day simple moving average is a good support for the stock, he said. Ghodasara expects the stock to cross INR 200 level by the end of next year.

Meanwhile, Zomato’s market cap has now crossed the $12 Bn mark.

RateGain Shares Touch An All-Time High

Shares of traveltech SaaS startup RateGain rallied sharply in three consecutive sessions this week, ending at a historical high of INR 697.45 on the BSE.

Overall, the shares rose about 12% this week.

RateGain reported a 132% YoY jump in its consolidated profit after tax to INR 30.04 Cr in Q2 FY24, while its operating revenue also increased over 88% to INR 234.7 Cr.

RateGain shares have gained 145% year to date.

While the stock looks steady in terms of momentum, Ghodasara believes it is not advisable to buy the stock at this level as there could be some corrections.

A fresh buy is recommended at INR 540 level, he said.

PB Fintech Yet To Achieve Profitability

At a time when there is an increased focus on profitability and market participants are betting big on technology startups that have started turning profitable, PB Fintech reported yet another loss-making quarter.

The fintech major, which runs Policybazaar and Paisabazaar, reported a loss after tax of INR 21 Cr in Q2, a decline of 89% YoY. However, the loss widened from INR 11.9 Cr in Q1 FY24.

Shares of PB Fintech rose 5% this week, ending Friday’s trading session at INR 702.6 on the BSE. 

A further downside is possible in the stock till INR 642 in the coming months, Ghodasara said, adding the stock has the strongest support at that level.

It must be noted that the shares of PB Fintech have gained almost 60% this year on the back of the YoY decline in its losses and the change in sentiment towards listed new-age tech stocks.

[The article has been updated with the correct table]

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Logistics unicorn Delhivery posted a net loss of INR 102.9 Cr in the September quarter (Q2) of the financial year 2023-24 (FY24), down 59.5% from INR 254.1 Cr reported in the corresponding period of the previous fiscal.

However, loss jumped 15% from INR 89.5 Cr Delhivery reported in the previous quarter – Q1 FY24.

The logistics major’s revenue from services increased both on a year-on-year (YoY) and a quarter-on-quarter (QoQ) basis to INR 1,941.7 Cr in Q2 FY24. 

This was an 8% rise from INR 1,796.1 Cr operating revenue generated in the year-ago quarter. In Q1 FY24, the startup’s operating revenue stood at INR 1,929.8 Cr.

Delhivery said its adjusted EBITDA loss reduced 90% YoY to INR 13 Cr in Q2 FY24. Meanwhile, this was also a reduction from INR 25 Cr adjusted EBITDA loss posted in the June quarter of the current fiscal.

The startup said that despite the delayed festive season sales this year, which fell in the September quarter of last year, its express parcel shipment volumes grew 12% YoY to 181 Mn in the quarter under review.

Delhivery’s revenue from express parcel services also grew 8% YoY to INR 1,210 Cr in Q2 FY24.

Meanwhile, the company’s part truckload (PTL) volumes jumped 22% YoY to 348K tonnes in the reported quarter, helping the company generate INR 373 Cr in revenue from this vertical, up 28% YoY.

Its truckload business saw a robust YoY and QoQ revenue growth of 46% and 15%, respectively, said Delhivery.

Sahil Barua, MD and CEO of Delhivery, said the company’s overall operating and financial performance in H1 was satisfactory.

“Service quality remained robust throughout H1 and network utilisation remained stable even as we expanded capacity in Q2, setting us up well for H2,” said Barua.

In fact, he said Delhivery’s H2 began with express volumes of over 70 Mn and daily PTL volumes beginning to touch 4,700-5,000 MT levels in October. 

“Volume levels at our mega-facilities have also been consistently high and our Tauru gateway recorded throughput beyond our original design expectations, which bodes well for our newer automated gateways at Bhiwandi and Bangalore,” Barua added. 

Zooming Into The Expenses 

Delhivery’s sequential rise in loss was largely driven by increase in expenses in Q2 FY24, which grew to INR 2,148.2 Cr from INR 2,129.7 Cr in Q1.

On a YoY basis, expenses declined 0.45% from INR 2,157.8 Cr.

However, its freight, handling and servicing cost grew both on QoQ and YoY basis to INR 1,442.1 Cr in the quarter under review. In Q2 FY23, the cost stood at INR 1,435.8 Cr.

On the other hand, employee benefits expenses increased almost 4% YoY to INR 366.3 Cr in Q2 FY24.

We must note that along with its September quarter earnings, Delhivery also announced a few leadership appointments on Saturday (November 4).

Cofounder of Delhivery, Suraj Saharan would take over as the chief people officer, while Varun Bakshi would take over as the head of business development and part truckload freight business effective January 9, 2024. 

Vivek Pabari, SVP of corporate finance, will also take up additional responsibilities of investor relations & treasury, the company said.

Shares of Delhivery ended Friday’s trading session marginally higher at INR 402.25 on the BSE.

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Shares of foodtech major Zomato jumped 8.3% on the BSE on Friday (November 3), ending today’s trading session at INR 116.4, above the company’s listing price of INR 115 for the first time ever since January 20, 2022.

Zomato listed on the BSE and NSE in July 2021 at INR 115 and INR 116, respectively, at a premium of about 53% to its IPO price of INR 76. The stock started rallying in the next few months and reached an all-time high of INR 169.1 in November of that year. Post that, the stock started nosediving and slipped below the listing price in January last year.

While shares of Zomato have rallied sharply since April this year on the back of its improving bottom line, it touched a level above its listing price today following its Q2 FY24 results.

Even on the NSE, Zomato ended today’s trading session at INR 117.9, above its listing price.

The stock also touched a fresh 52-week high during the intraday trading at INR 120 by jumping about 12% on the BSE.

Meanwhile, Zomato reported its second consecutive profitable quarter and posted a profit after tax of INR 36 Cr in Q2 FY24. 

The company witnessed strong growth across verticals and its quick commerce business Blinkit turned contribution positive for the first time since its acquisition.

The company had reported its maiden profitable quarter at INR 2 Cr in Q1.

The broader market, too, gained today but market participants remained cautious due to worries over high inflation rates globally and the ongoing war in the Middle East.

The post Zomato Closes Above Listing Price For The First Time In Over 22 Months appeared first on Inc42 Media.

Venture capital (VC) firm Induckt Global has received the nod from the Securities and Exchange Board of India (SEBI) to launch its maiden INR 320 Cr fund, Induckt Vision Fund, for early- and growth-stage technology startups.

The fund would be sector-agnostic with a mission to catalyse the growth and success of emerging companies, said Induckt Global.

To begin with, the VC firm is looking to invest in startups from sectors like healthcare, education, and ecommerce, among others. 

Induckt Global is committed to providing mentorship, industry expertise, and a network of valuable connections to foster growth and innovation, the VC firm said in a statement. 

Founded by Ayush Goyal, Induckt Global aims to foster overall growth and innovation in its portfolio companies by providing mentorship, industry expertise, and networking opportunities.

Speaking to Inc42, Goyal said Induckt Global started as a management consultancy firm in 2017 that worked with the likes of Paytm and OYO. Later, it also started an investment banking vertical. In 2022, the firm registered a separate VC firm. 

Induckt Global is registered under category-I AIF fund with SEBI.

The newly launched fund also includes a green shoe option of INR 120 Cr. The ticket size of the fund will be between INR 1 Cr to around INR 16 Cr. 

“With the backing of SEBI, we are confident that this fund will play a pivotal role in accelerating the growth of promising startups in India. We are excited to work closely with dynamic entrepreneurs and be a part of their journey towards success,” Goyal, who is also the CEO of Induckt Global, said in a statement.

The VC firm is currently in the process of raising capital from various LPs, including entrepreneurs and high-net-worth individuals (HNIs).

Despite a lull in the startup ecosystem amid the ongoing funding winter, many VC firms, angel investors, and PE firms, including 3one4 Capital, Arkam Ventures, Soonicorn Ventures, and Paytm CEO Vijay Shekhar Sharma, have launched new funds this year. 

Since January this year, Indian startups have announced funds worth $5 Bn for Indian startups.

As per Inc42’s analysis, 718 startups raised funding in this year till October, a decline of almost 40% from 1,200 startups which raised funding during the same period in 2022.

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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.

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D2C unicorn Mamaearth’s public issue was oversubscribed 7.61X on the last day of its initial public offering (IPO) on Thursday (November 2) on the back of huge demand from qualified institutional buyers (QIBs).

The issue received bids for 22 Cr shares as against 2.89 Cr shares on offer. The bids by QIBs accounted for 82% of the total bids.

While 1.57 Cr shares were on offer for the QIB category, it received bids for 18.11 Cr shares and was oversubscribed 11.5X. In that, foreign institutional investors (FIIs) placed bids for 14.88 Cr shares.

On the other hand, the non-institutional investors’ (NIIs) category was oversubscribed 4.02X at the end of the last day. Of the 78.72 Lakh shares on offer for the category, it received bids for 3.17 Cr shares. 

However, retail investors seemed the least interested in Mamaearth’s IPO. The portion reserved for them was oversubscribed by only 1.35X. Retail investors placed bids for 70.67 Lakh shares as against 52.48 Lakh shares on offer for the category.

At the end of day 2, the retail investors’ portion was subscribed 0.62X, QIBs quota was oversubscribed 1.02X, and the NIIs portion had the lowest subscription at 0.09X.

At the end of day 3, the employees’ portion was subscribed 4.88X, receiving bids for 1.65 Lakh shares.

Mamaearth’s IPO opened on Tuesday (October 31). The startup plans to raise up to INR 1,700 Cr via its IPO at a valuation of $1.2 Bn. 

Mamaearth’s public issue comprises a fresh issue of shares worth INR 365 Cr and an offer for sale (OFS) component of 4.12 Cr shares. The IPO price band was set at INR 308-INR 324 per share.

Founded in 2016 by the husband-wife duo of Varun and Ghazal Alagh, Honasa Consumer, the parent of Mamaearth, retails other beauty and personal care brands including The Derma Co., Ayuga, Aqualogica and Dr Sheth’s. 

Post its listing, the company would become the fifth new-age tech startup after ideaForge, Yudiz, Zaggle, and Yatra to go public this year. Among these companies, the public issue of drone startup ideaForge saw the highest subscription at 106X. Shares of ideaForge got listed on the BSE at a 94% premium to the issue price. 

Mamaearth reported a net loss of INR 151 Cr in FY23 due to a one-time loss. The loss, along with the high OFS portion in the public issue, raised concerns in some quarters about the success of the IPO.

Some analysts also raised concerns on the valuation of the startup. 

The post Mamaearth IPO: Public Issue Oversubscribed 7.61X As QIBs Lead The Way appeared first on Inc42 Media.

Fintech company Infibeam Avenues reported a 191% jump in its profit after tax (PAT) to INR 38.3 Cr in the September quarter (Q2) of the financial year 2023-24 (FY24) from INR 13.2 Cr in the last year’s quarter.

However, as per Infibeam’s financial statements, its profit from operations after tax stood at INR 40.5 Cr as against INR 39.9 Cr in Q2 FY23. 

For the adjusted PAT of INR 38.2 Cr, the company excluded the notional value of mark-to-market investment gain/loss. 

On the other hand, Infibeam’s operating income also jumped 66% year-on-year (YoY) to almost INR 790 Cr in the quarter under review.

In the previous quarter, Q1 FY24, the company had posted a PAT of INR 25.46 Cr on an operating revenue of INR 742.3 Cr.

Speaking on the steady growth in the quarter under review, Vishwas Patel, joint MD of Infibeam Avenues, said that the company witnessed an “unprecedented” onboarding of merchants, primarily small businesses, which resulted in a higher take rate.

Its payment net take rates increased 25% YoY to 9.3 basis points.

“In addition to our exceptional performance in the domestic market, our payment business,

CCAvenue, is experiencing significant growth in the international market, particularly in the UAE.

In August, we achieved a historic milestone by recording a monthly transaction volume of AED 1 Bn in the UAE,” Patel added.

Recently, Infibeam also announced the launch of a mobile QR Code payment solution through its payment gateway CCAvenue.ae in the UAE market.

Infibeam said that the higher growth in its operating revenue was led by a 28% growth in transaction processing value (TPV) and an increase in gross take rate by 36% to 112 basis points.

Its TPV jumped 79% YoY to INR 1.8 Lakh Cr. Payments TPV alone rose 28% YoY to INR 76,900 Cr in the quarter.

Infibeam claimed to have added a total of 0.6 Mn merchants in H1 FY24, of which 0.27 Mn merchants were added in Q2 alone, which implies an average addition of 2,900 merchants daily in the domestic payment aggregation business, CCAvenue.

Meanwhile, the company’s total expenses surged over 63% to INR 737.4 Cr in Q2 FY24 from INR 452.1 Cr in the corresponding period of last fiscal.

While Infibeam’s operating expenses increased to INR 679 Cr in the quarter under review from INR 398 Cr in Q2 FY23, its employee benefits expenses increased over 14% YoY to INR 32.9 Cr.

The company sees achieving a PAT of INR 130 Cr-INR 150 Cr in the full year, which would be a 37%-59% YoY jump, while clocking a gross revenue of INR 3,000 Cr-INR 3,300 Cr.

Following the earnings announcement, shares of Infibeam ended Thursday’s trading session 3.6% higher at INR 19.65 on the BSE.

Besides, the company also announced acquiring a partially constructed building from Aavas Trust in Gujarat, which would be an extension of its planned GIFT city AI Hub. 

The post Infibeam Avenues’ Q2 Profit Almost Triples To INR 38.3 Cr appeared first on Inc42 Media.

Shares of fintech SaaS startup Zaggle jumped 4.4% to INR 215.75 on the BSE on Wednesday (November 1), a day after the company announced entering into a cobranding agreement with Kotak Mahindra Bank.

As part of the pact, Zaggle will offer corporates an integrated package of financial products, including Kotak’s payroll banking services, such as salary accounts and co-branded prepaid cards, which would be incorporated with Zaggle’s SaaS solutions, among others.

Zaggle said that the agreement is for a period of three years and is valued at an estimated INR 76 Cr.

Founded in 2011 by Raj P Narayanam, Zaggle provides a spend management platform for businesses, along with an employee benefits platform. It made its stock market debut in September at INR 162 apiece on the BSE. Its IPO price band was set at INR 156-INR 164 per share.

Zaggle’s announcement on agreement with Kotak Mahindra Bank came days after it bagged a $20 Mn order from the global payments major Visa for making prepaid forex cards.

Following this announcement earlier last month, Zaggle’s shares had jumped 9%.

Shares of Zaggle rose today despite several other new-age tech stocks ending the trading session in the red amid a lull in the broader market.

Shares of Zaggle are trading over 33% higher on the BSE from its listing price.

Zaggle is expected to report its September quarter results for the current fiscal next week, on November 7. In Q1, Zaggle reported a 67.4% year-on-year fall in its net profit to INR 2.06 Cr while its operating revenue increased 33.7% YoY to INR 118.5 Cr.

The post Zaggle Jumps Over 4% After Winning INR 76 Cr Order From Kotak Mahindra Bank appeared first on Inc42 Media.

The Parliamentary Standing Committee on Information Technology (IT) is planning to summon Apple representatives to address the threat alerts sent by the company to Indian political leaders, saying their iPhones may be under attack from state-sponsored attackers. 

“The Committee’s secretariat has expressed ‘deep concern’ and is treating the matter with the utmost seriousness,” a Committee secretariat official was quoted as saying by the ANI.

On October 31, several Indian opposition leaders claimed to have received an alert message on their iPhones from Apple that their devices could be targeted by state-sponsored attackers.

Opposition MPs, including Mahua Moitra of All India Trinamool Congress, Congress’ Shashi Tharoor and Pawan Khera, CPIM’s Sitaram Yechury, and AAP’s Raghav Chadha, said they received such notifications from Apple.

The matter turned into a political controversy as the leaders accused the Centre of snooping on them.

Following this, Apple came out with a vague clarification over the notifications. In a statement, the company said it does not attribute the threat notifications to any specific state-sponsored attacker. 

“State-sponsored attackers are very well-funded and sophisticated, and their attacks evolve over time. Detecting such attacks relies on threat intelligence signals that are often imperfect and incomplete. It’s possible that some Apple threat notifications may be false alarms, or that some attacks are not detected. We are unable to provide information about what causes us to issue threat notifications, as that may help state-sponsored attackers adapt their behavior to evade detection in the future,” Apple said.

It must be noted that Apple, like other US-based tech giants, has been under the radar of Indian agencies due to allegations pertaining to anti-competitive practices.

However, in recent times, Apple has been witnessing a significant improvement in its India business. While the company’s sales are on the rise, it is also aggressively ramping up manufacturing in the country.

In Q2 2023, Apple surpassed Samsung as India’s largest smartphone exporter, accounting for 49% of the country’s 12 Mn smartphone shipments during the period.

The post Apple Threat Alert Row: Parliamentary Committee To Summon The Tech Giant’s Officials appeared first on Inc42 Media.

India is planning to cut import duties on electric vehicles to a range of 15-30%, specifically for vehicles priced between $25,000 and $35,000. This decision is part of ongoing discussions that gained momentum after Tesla engaged with the Indian government.

People aware of the development told Mint that at a 15% import duty, all completely built-up (CBU) vehicles will be on par with the import duty for completely knocked down (CKD) cars.

For the uninitiated, CKD and CBU are two terms commonly used to refer to types of assembled and imported cars. While CKD cars are assembled domestically with imported parts, CBU vehicles are imported as a whole unit.

Currently, CBU vehicles priced below $40,000 face an import duty of 70% while vehicles above this price face an import tax is 100%.

Though the Centre is expected to relax the import duty, it would also come with a few caveats, the publication reported. The EV players would have to begin local manufacturing in the next two to three years and there could also be a clause to claw back the import duty sop if the OEMs fail to do so.

The development comes months after Tesla boss Elon Musk made a second attempt to tap the Indian market and held talks with Prime Minister Narendra Modi on the matter.

“I am confident that Tesla will be in India and will do so as soon as humanly possible,” Musk had told the media during the meet in June this year.

The US-based automotive giant is targeting customers at the top end of India’s growing mass-premium EV segment and is not looking to be a luxury player, the Mint report added.

We must note that in 2021, Tesla was all geared up to launch its cars in India. However, due to high import duties and the government’s decision to not compromise on that front as a step to boost domestic manufacturing, made the company stall those plans.

In August this year, Reuters had also reported about India working on a new electric vehicle policy to slash import taxes to as low as 15%. However, Union Finance Minister Nirmala Sitharaman said soon after at an event that there is no such proposal before the ministry.

It goes without saying that reducing import duties for overseas EV companies will benefit those firms, while also intensifying the competitive landscape for Indian electric vehicle original equipment manufacturers such as Tata Motors and Mahindra.

Meanwhile, India’s EV adoption is now growing slowly and steadily. Of the total of 28.8 Lakh motor cars registered in India so far in 2023, more than 58K vehicles were electric, as per Vahan data.

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