The startup ecosystem in India has witnessed remarkable growth and innovation over the past decade. With a surge in entrepreneurial ventures, investors, and aspiring founders, it’s essential for stakeholders to ensure that their interests and investments are protected. 

This is where a shareholders’ agreement comes into play, serving as a crucial document that lays down the rules of engagement, expectations, and safeguards for all parties involved.

A shareholders’ agreement is a legally binding contract among the shareholders of a company. Its primary purpose is to establish a framework for governance, decision-making, dispute resolution, and the protection of shareholder rights. In the context of India’s bustling startup ecosystem, the importance of such agreements cannot be overstated.

One of the primary roles of a shareholders’ agreement is to provide clarity on fundamental aspects of the business. This includes the allocation of shares, decision-making processes, and the rights and responsibilities of each shareholder. This clarity helps in avoiding misunderstandings and disputes down the road.

I hardly know of any business which does not have disagreements as these are almost inevitable in any business venture. A well-drafted shareholders’ agreement provides a mechanism for resolving disputes without resorting to lengthy and costly litigation. 

It can include procedures for mediation, arbitration, or even buyout provisions in case of irreconcilable differences. Shareholder’s disagreements have been increasing over the years and there have been numerous instances in the past on these.

Key Reasons Shareholder’s Agreement Is A Must For Startups

Startups often have a dynamic model: In a startup, usually a few founders or investors hold the majority of shares. Minority shareholders need protection, and a shareholders’ agreement can ensure they have a say in critical decisions, preventing their interests from being marginalised. A well-structured shareholders’ agreement can instil confidence in investors, making it easier for startups to secure funding.

Startups are inherently risky ventures: A shareholders’ agreement can help mitigate some of that risk by addressing potential issues before they become major problems. Since India has become a fertile ground for tech startups, protecting intellectual property is paramount. A well-drafted agreement can include provisions regarding the ownership and protection of intellectual property developed by the company.

Besides these, an agreement can outline the process for selling or transferring shares, ensuring that founders and early investors can exit the business when they choose to do so. It can also set operational guidelines, defining the roles and responsibilities of key stakeholders, which is particularly important in the early stages when responsibilities may overlap.

In Conclusion

While shareholders’ agreements are crucial, they must be meticulously drafted to avoid potential pitfalls. Vague or ambiguous language can lead to misinterpretations and disputes. It’s vital to be precise and explicit in outlining the terms and conditions. 

Many startups focus on getting off the ground and overlook exit strategies. A well-drafted agreement should address how shares can be sold or transferred, preventing complications when shareholders want to exit. 

Thus, drafting a shareholders’ agreement without legal expertise is risky. Engaging legal counsel ensures that the agreement complies with Indian laws and regulations and covers all necessary aspects.

Without a doubt, a successful shareholders’ agreement in the Indian startup ecosystem hinges on the clarity of its fundamentals. They provide clarity, protection, and a framework for growth and collaboration. 

When done correctly, these agreements can be instrumental in securing the future success of a startup while mitigating potential conflicts along the way.

The post Unlocking Success: The Significance Of Shareholders’ Agreements In India’s Startup Ecosystem 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.

The ongoing funding winter has brought about a significant transformation in the country’s startup ecosystem. The scarcity of capital compelled new-age tech companies to shift their focus from pursuing growth at any cost to achieving profitability. This also meant cutting down the cash burn, which resulted in companies taking aggressive cost-cutting measures, including pay cuts and layoffs.

According to Inc42’s layoff tracker, Indian startups have laid off more than 29,000 employees since the onset of the funding winter in 2022. 

While these drastic measures helped some startups turn profitable or reduce their losses, most of the startups still continue to be saddled with losses. As per Inc42’s ‘FY23 Financial Tracker’, 39 of the 54 new age Indian tech companies that have filed their financial statements for the year reported a combined loss of INR 25,905.21 Cr. 

Amid all these, it’s natural for one to ask that if the employees are losing their jobs and taking pay cuts, have the founders of the new-age tech companies also seen a decrease in their remunerations? To answer this question and keep our readers up to date with the remunerations earned by the founders, Inc42 has launched the ‘Founder Salaries FY23 Tracker’. 

The tracker will keep you informed about the remunerations earned by the founders in FY23, the percentage increase/decrease in their salaries compared to FY22, and more.

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

Founder Remuneration Tracker FY23

Companies are placed in alphabetical order | Data has been sourced from MCA filings, annual reports, and DRHPs | The remuneration Includes salary, wages, & bonus

Nitish Mittersain | Nazara Technologies

Nitish Mittersain, CEO and cofounder of publicly listed Nazara Technologies, was one of the highest-paid founders in the year under review. Mittersain took home INR 4 Cr as remuneration in FY23. His remuneration increased 21% from INR 3.3 Cr he earned in the previous fiscal year. 

Meanwhile, the Mumbai-based company reported an operating revenue of INR 1,091 Cr in FY23, a jump of 75% from INR 621.7 Cr in the previous fiscal year. Net profit rose 21% to INR 61.4 Cr from INR 50.7 Cr in FY22. 

Vijay Shekhar Sharma | Paytm

Vijay Shekhar Sharma, the founder of Paytm and the poster boy of the Indian fintech sector, took home INR 4 Cr as remuneration in FY23. Sharma’s annual remuneration increased 8% from INR 3.7 Cr in FY22. 

On the other hand, Paytm reported a 1.6X jump in operating revenue to INR 7,990.3 in FY23 from INR 4,974.2 Cr in the previous fiscal year. Net loss reduced 26% to INR 1,766.5 Cr in FY23 from INR 2,396.4 Cr in the previous fiscal year. 

Dinesh Agarwal | IndiaMART

Dinesh Agarwal, the founder of publicly listed B2B ecommerce marketplace IndiaMART, took home the second highest salary in FY23. Agarwal, who founded IndiaMART in 1999, took home INR 3.8 Cr in salary, an increase of 11.8% from INR 3.4 in the previous year. 

The company reported an operating revenue of INR 985.3 Cr in FY23, an increase of 31% from INR 753.4 Cr in the previous fiscal year. Profit, however, dipped around 5% to INR 283.8 Cr from INR 298 Cr in FY22. 

Sahil Barua & Kapil Bharati | Delhivery

Sahil Barua, the cofounder and CEO of Delhivery, was fourth on the list with an annual remuneration of INR 3.1 Cr in FY23. This was a 11% increase from INR 2.88 Cr that he took home in the previous fiscal year. 

Kapil Bharati, the CTO of Delhivery, was fifth on the list with a remuneration of INR 3 Cr in FY23, an increase of 24% from INR 2.42 Cr in FY22.

Meanwhile, Delhivery reported a 5% jump in operating revenue to INR 7,225.3 Cr in FY23 from INR 6,882.2 Cr in the previous fiscal year. Loss was almost flat at INR 1,007.7 Cr in FY23 as against INR 1,011 Cr in FY22. 

Bhanu Chopra | RateGain

Bhanu Chopra, the cofounder of RateGain, took home INR 3 Cr as an annual compensation in FY23. While his remuneration was unchanged from FY22, Pratap also received bonus and incentives worth INR 3.1 Cr in FY23. His bonus and incentives stood at INR 3 Cr in FY22.

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

The post Founder Salaries Tracker FY23: Amid The Funding Winter, How Much Did Startup Founders Earn? appeared first on Inc42 Media.

The second week of November saw a revival in startup funding, aligning with the festive spirit.

Between November 6 and November 10, Indian startups garnered a collective $159 Mn across 18 deals, marking a 19.5% uptick from the previous week’s $133 Mn total funding.

Funding Galore: Indian Startup Funding Of The Week [Nov 6 – Nov 10]

Key Startup Funding Highlights Of The Week

• Bengaluru-based B2B logistics startup Xpressbees bagged $80 Mn from the Ontario Teachers’ Pension Plan, making it the biggest funding deal of the week.
• Fuelled by Xpressbees funding, the enterprisetech sector emerged as the most funded sector, raising $80 Mn.
• The ecommerce sector witnessed the most number of deals this week. The sector bagged $6.8 Mn across four deals.
• This week, the seed funding saw a marginal improvement with $3.9 Mn being raised across three deals. 
• Alteria Capital was the busiest investor of this week as it participated in two deals.

Other Major Developments From This Week

• Rainmatter-backed Game Theory acquired sports analytics startup Matchday.ai for an undisclosed amount.
• India might get its second unicorn of 2023, as fintech startup Incred announced receiving commitments of $60 Mn, which will allow it to join the unicorn club.
• Travel Boutique Online, or TBO Tek Ltd, has filed its draft red herring prospectus (DRHP) to raise upto INR 400 Cr through a fresh issue of shares. The IPO offer also includes an offer-for-sale (OFS) component of 1.56 Cr equity shares.
• In a big relief to BYJU’S, the family office of Manipal Group chairman Ranjan Pai has acquired the $250 Mn debt availed by Aakash Educational Services Limited (AESL) from Davidson Kempner.

The post From Xpressbees To Zepto — Indian Startups Raised $159 Mn This Week appeared first on Inc42 Media.

There’s a new wave of reality TV in India and it’s all about startups. The wild success and popularity of Shark Tank India has spawned a number of ‘clones’.

Shark Tank India is clearly SonyLIV’s crown jewel, and the premier reality show for startup pitching. But it’s been joined in recent times by Indian Angels, JioCinema’s latest big bet. Besides this Mission StartAb, an upcoming Amazon Prime Video show, is expected to also cast a spotlight on the journey of being an entrepreneur.

Despite being just two seasons old, Shark Tank India has gripped the attention of programming heads at major OTT platforms. Since its launch in December 2021, the show’s popularity has grown like wildfire. Not only has the Indian version of “Shark Tank” become one of the topics of discussion at the Indian dinner table, but it has also made startups a household name.

It’s no surprise then that so many new shows are now vying for the viewer’s attention, and looking to replicate the Shark Tank magic.

While one cannot debate that such reality shows have turned the spotlight on the startup ecosystem and the entrepreneurial mindset among Indians, we also have to wonder whether these shows or platforms are actually helping founders or creating unrealistic expectations around how arduous the actual process of raising funds is.

And as we have covered in the past, Shark Tank India has become as much a platform for the investors or sharks as it is for the founders and startups pitching. The celebrity ‘shark’ culture has been criticised by many observers especially because many of the investors on the show do not run profitable businesses themselves.

With the launch of new shows along the same lines, is there a risk of these concerns getting amplified and snowballing into bigger problems?

Shark Tank Clones: Old Wine In New Bottles

Rival streaming platforms are looking to put their unique spin on the format, but Shark Tank’s format of an eye-catching pitch and a jury of investors or sharks remains the most popular.

Produced by Digikore Studios and streamed on Jio Cinema, Indian Angels is billed as the world’s first angel investment show on an OTT or streaming platform.

Indian Angels follows the same format as Shark Tank, with entrepreneurs and angel investors such as Ajinkya Firodia, MD of Kinetic Group; Ankit Agrawal, founder & CEO of InsuranceDekho; Aparna Thyagarajan, cofounder of fashion brand Shobitam; Kunal Kishore, founder of PR firm Value 360; Rikant Pittie, cofounder of listed travel platform EaseMyTrip and Shreedha Singh, CEO & cofounder of The Ayurveda Co.

So far two episodes of the show have aired, and the response has been tepid and unlike Shark Tank, no viral memes have come out of Indian Angels so far.

One of the judges/investors on the show told Inc42 that there’s only so many ways that shows can experiment on the main concept popularised by Dragon’s Den and Shark Tank globally. Instead the differentiation for Indian Angels comes from the fact that the investors on the show have been working to build businesses out of the typical spotlight.

“We [Indian Angels] have the likes of Rikant [Pittie] and Ankit [Agrawal] who have built huge businesses. EaseMyTrip is a listed company already and growing in value, so in my opinion, these investors are different from what we saw on Shark Tank when it launched,” one of the six investors on Indian Angels told Inc42.

Season 3 of Shark Tank India was launched with great fanfare and a litany of high-profile investors. This year, six new guest ‘Sharks’ have been added to the show including Zomato CEO Deepinder Goyal and OYO CEO Ritesh Agarwal. Besides this, the controversies surrounding Ashneer Grover and BharatPe in the first year also gave Shark Tank a big boost.

So far Indian Angels has remained relatively muted in its promotions, but it will be interesting to see whether it prefers to remain the more reserved version of Shark Tank India for too long. But JioCinema does have a wider reach than SonyLIV with 221 Mn monthly active users as of June 2023, according to reports. This could be a big advantage for Indian Angels as a platform.

Setting Unreal Expectations

Unlike Indian Angels, which follows the Shark Tank Way, Amazon Prime Video’s Mission Start Ab is taking a different route.

The show which has roped in Alia Bhatt as an ambassador hopes to follow the journeys of different entrepreneurs as they build their startups. Amazon has partnered with the Principal Scientific Adviser (PSA) of the Indian government to create the show, which is billed as a series “that will showcase India’s grassroots innovators as they turbo-charge their business growth”.

It will focus on the scaling-up journey of made-for-India innovations and offer entrepreneurs a series of challenges before giving them an opportunity to raise funding.

Mission Start Ab claims ambitiously that the show is a search for India’s next unicorn, even though such a thing usually takes many years and is certainly not something that happens just because a startup is being promoted on a streaming platform.

Indeed, we have seen many such shows come and go in the past, as seen in our graphic below.

According to a second Indian Angels investor, the short lifespans for reality TV shows that came before Shark Tank India is because they did not have the branding power to stay for long.

Keen observers might recall The Vault, which had a short stint on TV in 2016 or MTV Dropout which aired for a single season in 2017. Neither could sustain despite having the same model and a similar format.

The longevity of the Shark Tank brand and the localisation of Shark Tank for different geographies has garnered the show a cult following. This is something flash-in-the-pan efforts cannot hope to match, said the second Indian Angels judge we spoke to.

Who’s to say whether Indian Angels or Mission Start Ab will stay the course and compete for many years with Shark Tank India? “Ultimately, this is reality TV and here content will win. It’s not about the quality of investments or startups,” said the first Indian Angels judge.

Investors In The Spotlight

Of course, unlike Shark Tank in the US, where judges earned fame for being on TV, in India sharks were already popular in the mainstream to some degree.

The meteoric rise in Shark Tank’s popularity brought a lot of spotlight for the businesses that the judges have built. For instance, Aman Gupta, cofounder of boAt, has claimed that his appearance on the show has helped the company cut marketing costs significantly.

IPO-bound OYO’s Agarwal and listed giant Zomato’s Goyal would be looking for something similar for their companies too in the upcoming season.

But at the same time, being on the show means investors run the risk of making a hasty decision that they might not otherwise make in the real world.

The camera and the editing of the pitch do seem to add some drama and pressure to the dealmaking, which might bring sentiments or emotions into the equation. Investors usually tend to take a cold hard look at businesses in the real world, as opposed to on the small screen.

“Being on the show means making a decision in an hour versus the many months it takes in real angel investing. There’s definitely some pressure and a good pitch can sway you as well. I had to force myself to not invest in some startups on Indian Angels that made a great pitch, and then we went back to these founders to discuss a potential deal again,” said the first investor we spoke to.

Of course, not all founders are happy with the way these shows cut short their pitches or edit their narratives for dramatisation, a critical part of reality TV. Other founders have bemoaned the lack of response or delay in dealmaking by ‘Sharks’, something we have covered in detail here.

Many have called Shark Tank India the TV version of funding festivals where founders are often taken for a ride or where investors disappear after making commitments. That may be a bit too harsh given that we have seen sham events like the ‘World Startup Convention’, but the commoditisation of Shark Tank can potentially bring the same risk factors to reality TV.

“Because of Shark Tank India, a lot many Indians now know what a startup is. But the show is only successful because it has done things in one way for a number of years. This consistency will be key for any show looking to become the new Shark Tank,” said a Delhi NCR-based founder who pitched on the show in season one in early 2022.

Another aspect of Shark Tank India that cannot be overlooked is the outcome beyond TRPs and viewership data. What we cannot deny is that the show has made startups a bigger part of the public consciousness and its audience gets to see one side of the entrepreneurial journey up close.

But building a startup is more than just a pitch, and that’s something that no reality TV show has so far managed to capture well.

Shark Tank India is definitely the north star for any show looking to replicate the magic. Now the question is can any other show assert its own brand identity and not just remain a Shark Tank clone.

The post The Rise Of The Shark Tank India Clones appeared first on Inc42 Media.

In a landscape teeming with buzzwords like disruption, innovation and scalability, the stark reality of numbers often tells a different story. While 64 leading new-age tech companies in India have released their FY23 financials, the performance figures offer a cautionary tale. 

Despite a cumulative operating revenue of a staggering INR 1.75 Lakh Cr, 42 of these companies reported a combined loss of INR 28,226.31 Cr in FY23. In contrast, the rest managed to eke out a collective profit of INR 5,493.7 Cr. The divide becomes more intriguing considering 19 of these companies have the additional scrutiny that comes with being publicly listed. 

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

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

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

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

Inside The FY23 Financials Of Indian Startups

Note: All amount in INR Cr

Acko’s FY23 Loss Jumps To INR 739 Cr

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

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

Apna’s Revenue Jumps 3X

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

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

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

Ather Energy’s Revenue Quadruple In FY23

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

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

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

BankBazaar’s Loss Falls 15% To INR 37 Cr

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

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

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

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

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

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

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

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

BigBasket Crosses INR 16,000 Cr Revenue Mark 

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

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

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

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

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

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

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

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

BlueStone’s Expenses Dip 45%

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

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

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

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

CarTrade Back In The Black In FY23

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

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

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

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

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

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

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

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

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

Classplus’ FY23 Loss Widens To INR 257 Cr

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

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

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

Flipkart-Owned Cleartrip’s Loss Doubles 

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

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

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

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

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

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

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

Delhivery Sees Meagre Uptick In Revenue

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

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

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

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

DroneAcharya Witnesses 700% Jump In Profit

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

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

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

Dunzo’s Loss Quadruples

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

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

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

EaseMyTrip Nears INR 500 Cr Mark in Sales

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

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

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

Flipkart’s B2B Arm’s Loss Jumps 42%

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

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

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

SaaS Unicorn Fractal Posts INR 194 Cr Profit 

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

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

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

Fino Reports 50% PAT Jump In FY23

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

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

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

Groww Turns Profitable In FY23

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

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

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

HomeLane’s Net Loss Jumps Over 15% 

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

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

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

ideaForge’s Profit Dips In FY23

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

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

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

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

iD Fresh Food’s Loss Halves In FY23

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

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

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

IndiaMART Nears INR 1,000 Cr In Sales

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

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

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

Read: IndiaMART At 52-Week High Following Q1 Results

Indifi In The Black In FY23

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

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

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

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

INDMoney’s Operating Revenue Doubles 

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

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

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

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

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

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

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

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

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

InsuranceDekho Narrows Loss To INR 51.5 Cr 

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

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

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

Justdial’s Profit More Than Doubles In FY23

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

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

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

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

LEAD School’s Loss Narrows 

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

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

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

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

Licious Narrows Loss By 38% To INR 529 Cr

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

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

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

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

Mamaearth Slips Into The Red 

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

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

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

MapmyIndia’s Profit Crosses INR 100 Cr Mark

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

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

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

Matrimony Sees Dip In Profit In FY23

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

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

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

Fintech Giant MobiKwik Narrows Loss To INR 83.8 Cr

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

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

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

Moglix’s Revenue Crosses INR 4,000 Cr Mark

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

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

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

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

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

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

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

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

NeoGrowth Turns Profitable In FY23

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

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

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

Nykaa Reports 50% Dip In Profit In FY23

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

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

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

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

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

OfBusiness’ Revenue Crosses INR 15,000 Cr Mark

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

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

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

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

OneCard’s Operating Income Jumps 6X

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

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

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

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

Oxyzo’s Profit Triples In FY23

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

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

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

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

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

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

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

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

Paytm’s FY23 Loss Drops By 26%

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

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

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

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

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

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

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

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

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

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

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

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

RapiPay’s Loss Doubles In FY23

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

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

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

RateGain’s Profit Jumps Over 700%

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

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

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

Recykal Slips Into The Red 

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

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

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

Rupeek’s Loss Declines 23% 

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

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

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

Spacetech Startup Skyroot’s Loss Doubles 

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

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

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

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

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

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

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

Testbook’s Loss Almost Triples In FY23

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

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

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

Tracxn Reports Profit In FY23

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

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

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

True Balance’s Profit Jumps Over 17X 

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

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

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

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

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

Udaan’s FY23 Revenue Declines 43%

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

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

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

Uniphore’s Net Profit Quadruples

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

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

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

Urban Company’s Employee Expenses Drops 15%

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

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

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

Wakefit’s Operating Revenue Crosses INR 800 Cr Mark

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

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

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

Xpressbees’ Loss Surges Over 6X 

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

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

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

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

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

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

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

Zomato’s Loss Under INR 1,000 Cr

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

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

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

Edited By: Vinaykumar Rai
Last Updated: 10th November, 21:30 PM IST

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

OpenAI, the leader in AI innovation, continues to revolutionise the tech landscape with each new update. Following its recent high-impact keynote event in San Francisco, the tech world finds itself in a state of both anticipation and apprehension.

During OpenAI’s DevDay organised on November 6, the Sam Altman-led company unveiled a series of new updates. It released GPT-4 Turbo, boasting a remarkable context length increase to 1,28,000 markers, 16 times that of GPT-4. New speech synthesis and image processing features were also introduced. Moreover, the company initiated copyright protection for API and ChatGPT Enterprise Edition for users, committing to customer support in legal matters.

Moreover, an Assistants API, offering session thread support, code interpretation, and a sandbox environment was also introduced during the event. The ChatGPT product now includes GPT-4 Turbo, streamlining interactions by removing the model selector and allowing web browsing, code execution, data analysis, and image processing.

Furthermore, OpenAI also said that over 100 Mn users are now using their tools weekly. Additionally, the company revealed that their API has attracted over 2 Mn developers who are actively building innovative solutions and applications using OpenAI’s technology. The numbers underscore the impact OpenAI has had on today’s tech landscape.

However, post the event, numerous industry experts raised concerns globally, expressing apprehensions that the new updates could spell trouble for smaller AI startups, potentially jeopardising their competitive standing in the field.

The updates introduced by OpenAI may pose challenges for smaller companies in the AI sector, making it imperative for them to constantly adapt or innovate to stay relevant.

Now, before we dive any deeper into discussing opportunities and threats, here is a quick sneak peek into OpenAi’s key updates.

GPT-4 Turbo

OpenAI introduced the GPT-4 Turbo during its developer event, offering an enhanced version of the popular GPT-4 model. This release comes in two variants, one for text analysis and another for understanding both text and images.

The pricing structure for the text-only model of GPT-4 Turbo is set at $0.01 for every 1,000 input tokens and $0.03 for every 1,000 output tokens. Additionally, for image processing, GPT-4 Turbo is available at $0.00765 per 1080×1080 pixel image.

While these developments are impressive, industry experts see OpenAI becoming a threat to smaller AI startups. This is because the pricing structure and capabilities of GPT-4 Turbo have the potential to outdo anyone in the competition.

The larger context window and updated knowledge cut-off give OpenAI a significant advantage, potentially making it harder for smaller players to carve out their space in the AI market.

Text-to-Speech APIs

OpenAI introduced an Audio API for text-to-speech conversion, offering six preset voices and two generative AI model options. Pricing starts at $0.015 per 1,000 input characters. This feature promises more natural and accessible app interactions, with applications spanning language learning and voice assistance.

Unlike some tools, OpenAI doesn’t provide direct emotional control over the generated audio, as factors like capitalisation and grammar can influence the voice’s emotional tone. However, results vary based on internal tests, the company clarified. According to industry experts, this may impact many startups that are working in the Speech-AI domain.

GPTs For Users And A New GPT Store

OpenAI has unveiled GPTs, enabling users to create their own versions of ChatGPT. “GPTs are tailored versions of ChatGPT for a specific purpose,” OpenAI CEO Sam Altman said at the OpenAI DevDay event in San Francisco.

Beyond personal use, there’s a plan to introduce the GPT Store, allowing users to publish their creations and potentially earn income.

“We designed GPTs so more people can build with us. Involving the community is critical to our mission of building a safe AGI that benefits humanity. It allows everyone to see a wide and varied range of useful GPTs and get a more concrete sense of what’s ahead,” OpenAI said in a blog post.

Assistants API

During OpenAI’s inaugural developer day event, the company introduced the Assistants API, enabling developers to create their own “agent-like experiences”.

OpenAI’s Assistants API will enable customers to construct customised “assistants” with precise instructions, the ability to access external information, and the capacity to use OpenAI’s generative AI models and tools for various tasks.

The potential applications are wide-ranging, from creating natural language-based data analysis applications to developing coding assistants.

OpenAI has launched the beta version of its Assistants API, which is now accessible to all developers. Usage of the API will incur charges based on the selected model’s per-token rates, with “tokens” representing individual components of raw text.

Why Startups And VCs Are Seeing Troubles Brewing For Startups

OpenAI’s introduction of smaller, specialised GPT models poses a threat to small AI startups that have built products by wrapping OpenAI’s API, according to many experts. These startups may find themselves outpaced and overshadowed by OpenAI’s similar offerings.

Moreover, the growing use of OpenAI’s GPTs may divert search traffic from Google and niche websites for specific queries, potentially impacting these platforms’ user engagement and revenue.

OpenAI’s plans to launch a GPT marketplace and a feature to create a GPT are expected to further intensify the above trends. This development could empower users to access and deploy GPTs with even greater ease.

Startups and venture capitalists speculate about changes in the SaaS landscape as well. They anticipate more cost-effective challenges emerging in various verticals, potentially reducing organisations’ reliance on SaaS for certain functions.

While some foresee the demise of numerous AI startups, others view OpenAI’s developments as an opportunity to unlock new possibilities for entrepreneurs. These tools could significantly lower the barriers to entry, making it more affordable to launch businesses that leverage AI.

Who Is Set To Gain?

OpenAI’s advancements are indeed poised to reshape the AI landscape. While they present a formidable challenge to foundational model providers, they are likely to catalyse the proliferation of consumer-based AI products, according to industry experts.

OpenAI is gradually becoming a foundational platform akin to Android, Apple, or web browsers. Startups focussing on consumer products seem poised to thrive, benefiting from OpenAI’s robust technology stacks. In contrast, those building foundational models, such as an API for image-to-text recognition, may face risk, as OpenAI’s advancements render their offerings less competitive. However, consumer-facing products like a PDF-scanning app appear less vulnerable, indicating a potentially prosperous future for consumer-centric AI innovations.

“OpenAI is a threat to other companies building similar stuff. That is because they have a superior product and most others will not have access to the resources and databases that OpenAI has,” Swapnil Vats, founder of AI-based femtech platform SocialBoat said.

As per an Inc42 report, “India’s Generative AI Startup Landscape, 2023”, the generative AI market in India is poised to see a substantial increase from $1.1 Bn in 2023 to over $17 Bn by 2030, growing at a CAGR of 48%.

India currently boasts over 70 generative AI startups. These startups have collectively secured more than $440 Mn in funding between 2019 and the third quarter of 2023.

The post OpenAI Levels Up; Should Indian AI Startups Be Worried? appeared first on Inc42 Media.

Sustainable beauty care brand WishCare has secured INR 20 Cr ($2.4 Mn) in its first round of funding from Unilever Ventures. 

The funds will be deployed to amplify research and development capabilities and increase focus on formulating high-efficacy products fortified with clinically tested ingredients. 

Founded in 2019 by Stuti Kothari, Ankit Kothari and Ayush Kothari, WishCare offers sustainable but science-backed skincare and haircare products.

Commenting on the product range, WishCare’s cofounder Kothari said, “As we enter the next phase of growth, we look forward to working together with Unilever Ventures’ to help the brand set new benchmarks in the industry.”

Currently, WishCare claims to be serving over 10 Lakh customers across 15+ marketplaces including its own D2C website and Nykaa, Amazon, Flipkart, Purplle, Myntra, among others. 

The brand currently offers a diverse range of haircare and skincare products ranging from bond repair hair treatments, hair growth serums, face serums, sunscreens, and active-based body lotions that are well-researched and formulated with clinically proven effective ingredients.

Besides working on strengthening its domestic market hold, WishCare is also planning to expand internationally, capitalising on the growing online market for transparent and science-backed skincare and haircare products.

Currently, WishCare claims to be at INR 85 Cr ARR, having grown 4x in the last 12 months, while maintaining a strong double-digit EBITDA. 

According to Inc42’s State Of Indian Ecommerce Report Q3 2023, the beauty and personal care segment is estimated to reach $28 Bn+ market size by 2030, growing at 20% CAGR. 

Some of the recent funding announcements in this segment include — RAS’ $1.5 Mn funding from Green Frontier Capital (GFC), and Clensta’s $9 Mn fundraise.

The post Unilever Ventures Backs Sustainable Beauty Care Brand WishCare appeared first on Inc42 Media.

In a significant development, the Ministry Of Corporate Affairs (MCA) last week issued a notification mandating the dematerialisation of securities for unlisted companies.

The move is expected to benefit startups and is in line with the recommendations of industry experts highlighted in our previous covered on “What Startups Want? Settling The Angel Tax Debate Once & For All“. In the article, the experts proposed dematerialisation as a measure to address issues related to angel tax concerns. 

Under the new regulations, unlisted private companies, excluding small companies, are required to dematerialise their shares by September 2024.

The MCA notification states that every private company, except small companies, will now be required to issue securities solely in dematerialised form and must facilitate the dematerialisation of all of their securities. Private companies that don’t fall under the “small company” category, as of March 31, 2023, have an 18-month window, expiring in September 2024, to comply with these regulations. 

According to Harry Parikh, a partner at BDO India, the mandated demat rule is applicable to private companies, which have paid up capital exceeding INR 40 Mn or turnover exceeding INR 400 Mn. 

“The paid-up capital threshold is of a lesser issue for startups since there is a tendency to have higher valuations. Hence, startups tend to issue shares at a premium, which results in a lower paid-up capital base. Having said that, the threshold on the turnover is a tricky one and could pose a challenge to the startups because many startups are valued based on gross merchandise value,” Parikh said. 

As per the MCA notification, any company making offers for issuing securities, conducting buybacks, issuing bonus shares, or rights offerings after the compliance deadline must ensure the dematerialisation of the entire holdings of securities held by its promoters, directors, and key managerial personnel. Additionally, individuals holding securities of private companies are also required to have their shares dematerialised.

Commenting on the development, Siddarth Pai, the founding partner of 3one4 Capital, said that the dematerialisation of shares has been a long-standing demand for private companies. Startups, as they scale, often choose to dematerialise their shares as it simplifies shareholder management and facilitates faster exits. 

Pai noted that the move will bring transparency in ownership, and he now sees the streamlining of one of the most complicated tax regimes on the cards. Opaque holding structures within private companies have been cited as one of the reasons for the persistence of angel tax concerns, and this regulatory change is expected to address this issue, he added.

What Do The New Rules Say? 

Earlier, on October 2, 2018, Section 29 of the Companies Act, 2013, in conjunction with Rule 9A, of the Companies (Prospectus and Allotment of Securities) Rules, 2014 came into effect, which stipulated that every unlisted public company (barring a few like Nidhi, govt’s and subsidiaries) should issue securities only in dematerialised form and facilitate the dematerialisation of existing securities. However, this regulation did not encompass private companies at the time.

The latest notification, issued by the MCA on October 27, 2023, has introduced two significant amendments to the rules under the Companies Act, 2013 — the Companies (Management and Administration) Second Amendment Rules, 2013 and the Companies (Prospectus and Allotment of Securities) Second Amendment Rules, 2023. These amendments are aimed at enhancing transparency in the administration of corporate affairs.

Under the latest amendments, private companies are required to obtain International Securities Identification Numbers (ISINs) for all existing securities issued by them, facilitate the dematerialisation of all existing securities upon requests from security holders, and ensure that the complete holdings of their promoters, directors, and key managerial personnel are maintained in dematerialised form before making any offers for issuing or buying back securities on or after September 30, 2024.

The amended rules seek to eliminate bearer share warrants due to difficulties in tracing ownership, while share warrants issued to identified individuals following legal transfer procedures remain unaffected.

Will The New Rules Help Fight Angel Tax Demons? 

The Centre introduced the angel tax in 2012 to curb the flow of black money. The regulators have been facing difficulties in tracing the ultimate beneficiary for startup investments. 

The new amendments mandating dematerialisation are expected to help tax authorities identify the ultimate beneficial owners, according to CA Prerna Peshori, partner at Peshori Pachori & Jain. 

The amendments would be relevant in the case of the application of angel tax provisions for the company issuing shares at premium and invocation of Section 68, which relates to unexplained cash credit in the hands of the company. 

Section 68 seeks to tax the amount received on share application money or share capital or securities premium if the nature or source of such amount cannot be proved by the company as well as the resident shareholders who invested the funds. With the dematerialisation of shares, the tax department can trace and pursue the shareholders who try to invest unaccounted funds.

Recently, the Income Tax Department issued notices to startups, asking them to furnish the income tax returns (ITRs) of their shareholders for the past three years to ascertain if the investment made by such shareholders was commensurate with their income shown in tax returns. Many startups have raised concerns about this requirement as investors may not be willing to share their ITRs with the company. Peshori believes the amendments will solve this problem.

“With dematerialisation, the tax department would be able to trace the shareholding of the company without requiring the company to maintain the personal information of all the shareholders. Further, this can even be reconciled with the data submitted by the shareholders, who are required to report their shareholding in the unlisted companies in their ITR.

Like the share transfer of listed companies, which gets reported in the Annual Information Statement (AIS), a similar mandate can be created for share transfer of private or unlisted companies so that the tracking can easily be made by the tax department,” Peshori added.

As such, the latest amendment is expected to enhance the transparency of transactions in unlisted companies, marking a significant step forward in India’s regulatory landscape.

The post Is Dematerialisation Of Securities The First Step In Resolving Angel Tax Concerns Of Startups? appeared first on Inc42 Media.

Global cybersecurity solutions provider Sequretek has secured $8 Mn in a Series A funding round led by Omidyar Network India, with participation from the Narottam Sekhsaria Family Office and Alteria Capital. The company has raised $5.5 Mn as equity and remaining as debt funding.

Sequretek, founded in 2013 by Pankit Desai and Anand Naik, specialises in safeguarding businesses against cyber breaches. The startup utilises machine learning and artificial intelligence to detect and thwart threat actors attempting to breach customer systems from various entry points.

The funds will be used to expand global operations and enhance go-to-market strategies. Additionally, they will be employed to drive greater adoption of cybersecurity solutions for businesses in India and other global markets, increase market share, and improve profitability in the small and medium business segment.

In a recent interaction with Inc42, Desai said that the funds will also be allocated towards building infrastructure. Desai explained that they currently operate a substantial data centre serving over 150 customers and need to expand it due to processing approximately 4 Bn events on their platform.

He added, “Every day, around two terabytes of data flow into our platform. Supporting this massive volume of data is a critical aspect of our infrastructure, especially as we scale.”

The cyber security startup works with various government organisations, startups, BFSI (banking, financial services, and insurance) companies, and mid-size firms in sectors such as media, pharmaceuticals, automotive, and manufacturing.

Over the past four years, it has expanded its presence beyond India to capture the United States, the United Kingdom, Germany, Switzerland, the Netherlands, and African markets. Headquartered in New Jersey, Sequretek has offices in Mumbai, New Delhi and Bengaluru.

“India remains our primary market, representing 70% to 80% of our business. However, by 2026, we aim for a 50:50 split while deepening our presence in both the Indian and US markets,” Desai said.

Sequretek: Growth So Far

Until 2017, Sequretek operated exclusively in the Indian market with two products: Avatar and Kawach, which were customised and sold to enterprises. In 2017, it raised a Series A funding round led by Unicorn India Ventures.

Following this influx of capital, Sequretek embarked on an overhaul of its product line. As Desai pointed out, building a product and handing it over to a customer or service provider had become excessively complex and often a frustrating experience. Managing the multitude of technologies had become tedious and mostly insufficiently handled, making it a nightmare for customers.

“We realised that the fundamental change we needed to make was not only to create an easy-to-use and manage product but also to provide the necessary underlying infrastructure and the people required to operate it,” he explained.

Consequently, the team introduced a unified, end-to-end platform in 2019, the AI-powered Percept Cloud Security Platform (CSP), designed to meet the diverse needs of clients across various industries. The Percept CSP encompasses products like Percept Extended Detection & Response (XDR), Percept Identity Administration & Governance (IGA), Percept Endpoint Detection & Response (EDR), and Managed Security Services (MSS).

Shilpa Kumar, a Partner at Omidyar Network India, emphasised that in today’s hyper-connected digital landscape, cyber-attacks present a substantial threat to end-users. She added, “Sequretek’s digital plus working model has also demonstrated the business viability of serving the burgeoning Indian SMB sector, which often lacks dedicated information security resources.”

Currently employing over 450 individuals and serving more than 150 customers, the company has achieved a consistent annual growth rate of 35% to 40% during the last four years. It competes with companies such as F-Secure Corporation, Fortinet, Flowmon Network, and SentinelOne, among others.

Target Segments And Road Ahead

According to a report by Fortune Business Insights, the global cybersecurity market is projected to reach $424.9 Bn by 2030, with a CAGR of 13.8% during the forecast period from 2023 to 2030.

Simultaneously, the India Cybersecurity Market is estimated to be $3.97 Bn in 2023, and it is expected to grow to $9.21 Bn by 2028, at a CAGR of 18.33% during the forecast period (2023-2028), a Mordor Intelligence report suggests. This growth is driven by increased digitisation and technology adoption in the post-Covid era.

In 2022, India witnessed 13.91 lakh cybersecurity incidents, as per CERT-In. According to Desai, their sweet spot lies in customers who are in a regulated industry and thus require robust security but lack the resources and bandwidth to manage security on their own. Alternatively, they target customers who prioritize security.

Today, SMBs, one of the largest unaddressed sectors for cybersecurity solutions, constitute three-fourth of the company’s client base. This includes businesses in BFSI, healthcare, pharmaceuticals, media, manufacturing, retail, and logistics sectors across Tier-1, Tier-2, and Tier-3 cities.

Over the past few years, Sequretek has developed an in-depth understanding of the SMB segment and successfully identified the right channels to reach them — a feat many global companies struggle with. This has driven the company’s growth, contributing to a remarkable CAGR of 50% over the past five years.

Sequretek is currently preparing to launch a new offering as the customer management is becoming a huge challenge for enterprises as customers move to cloud.

Additionally, Sequretek has won two contests with the Government of India as part of the Make In India defence programme, allowing them to extend some of their products to the defence sector and replace certain industrial products required by the sector.

The post Sequretek Secures $8 Mn Funding To Fuel Expansion In The US And Indian Markets appeared first on Inc42 Media.

The Birla Institute of Technology and Science (BITS), Pilani, successfully concluded the 19th edition of its student-led startup accelerator programme, Conquest, with a Demo Day in August.

Over a period of six weeks, the selected cohort of 11 startups benefited from comprehensive online mentorship, networking opportunities, and skill enhancement through hackathons and virtual entrepreneurial sessions. The programme culminated in the ‘finale week,’ featuring an in-person demo day event in Bengaluru.

This year’s Conquest attracted around 2,200 applications from entrepreneurs across India. From these, the chosen 11 startups were awarded an equity-free grant of $12K (approximately INR 10 Lakh) each, with the opportunity to secure additional funding from an investment pool of $5 Mn. 

The panel of investors included industry stalwarts such as Pranav Pai from 3one4 Capital, Sharan Aggarwal from Leviosa, and Sameer Brij Verma from Nexus Venture Partners, among others.

The 2023 cohort showcased a diverse range of startups operating in sectors such as AI, social impact, agritech, SaaS, fintech, and robotics. 

Here Are The Startups From Conquest Accelerator Programme

Glovatrix

• Founded In: 2021
• Founders: Aishwarya Karnataki, Parikshit Sohoni
• Headquarters: Pune, Maharashtra
• Sector: AI, social impact

Launched in 2021 by Aishwarya Karnataki and Parikshit Sohoni, Pune-based Glovatrix aims to revolutionise communication for individuals with hearing impairments. Its product ‘Fifth Sense,’ is an AI-driven device that facilitates communication by converting sign language gestures into spoken words and text.

The ‘Fifth Sense’ is a wearable device resembling a glove. It’s engineered to convert sign language gestures directly into audible speech and written text, making sign language accessible and comprehensible to all. It allows users the freedom to engage in everyday activities, from medical consultations to office presentations, independently, without the intermediary of sign language interpreters. 

Equipped with sophisticated sensors that detect intricate finger movements, the device is adeptly trained in Indian Sign Language, incorporating a real-time feedback system for continual improvement. Glovatrix unveiled the ‘Fifth Sense’ on September 17, 2023, in conjunction with World Deaf Day, marking a pivotal moment in the company’s journey.

Verdant Impact

• Founded In: 2020
• Founders: Manish Kumar
• Headquarters: Jaipur, Rajasthan
• Sector: Agritech

Jaipur-based Verdant Impact is dedicated to empowering farmers with advanced livestock management and agricultural techniques. As a comprehensive full-stack animal husbandry platform, it harnesses the power of technology to provide a suite of services tailored for modern agriculture. 

One of the key innovations of Verdant Impact is its adoption of blockchain technology to create a secure and transparent online marketplace where farmers can trade livestock with ease and confidence. 

Additionally, Verdant Impact integrates RFID technology through smart ear tags, enabling farmers to monitor and evaluate the health and quality of their livestock. This technological synergy assists farmers in making well-informed purchasing decisions. 

The startup also prioritises animal health through its ‘animal ICU’ service. This aspect of the platform gives farmers regular health check-ups, vaccinations, and the ability to quickly find medical help in emergencies. Complementing these services is ‘Kisan Radio,’ a round-the-clock broadcasting service that shares vital agricultural information with the farming community. 

To address the critical need for quality animal feed, Verdant Impact retails these essentials via its online portal. They further distinguish themselves with their innovative ‘cattle credit card’ programme, allowing farmers to acquire feed on credit, thus maintaining a continuous supply of necessary nutrients for their livestock. Verdant Impact takes pride in having positively impacted over 4.5 Mn farmers across the country.

Greenpod Labs

• Founded In: 2019
• Founder: Deepak Rajmohan
• Headquarters: Chennai, Tamil Nadu
• Sector: Agritech

India ranks as the world’s second-largest producer of fruits and vegetables, yet an alarming 40% of this bounty deteriorates before it ever reaches the consumer. 

Observing this critical issue, Deepak Rajmohan established Greenpod Labs, a startup focussed on extending the freshness of produce. 

Greenpod Labs has developed an ‘Active Packaging’ (FSSAI certified) solution designed to prolong the shelf life of fruits and vegetables. This packaging technology decelerates the ripening process and prevents the growth of detrimental microorganisms. 

Each packet is meticulously tailored for specific types of produce, ensuring optimal preservation. This advanced packaging has demonstrated the capacity to extend the longevity of fruits and vegetables by 40-80%, a significant leap in combating food wastage. 

Moreover, Greenpod Labs claims that its packaging leaves no harmful residues on the produce and retains the essential nutrients. 

Flo Mobility

• Founded In: 2019
• Founders: Manesh Jain, Mohan Sivam
• Headquarters: Bengaluru, Karnataka
• Sector: AI, Robotics

Founded in 2019, Bengaluru-based Flo Mobility aims to democratise autonomous technology, making it both affordable and accessible. 

The startup’s premier product, Flo Atom, is an autonomous electric outdoor mover that can be operated remotely. It not only facilitates the management of vehicle fleets but also provides real-time data crucial for operational efficiency. 

Originally, Flo Mobility concentrated its efforts on the construction industry by automating vehicles such as dumpers. With time, the startup broadened its technological applications to encompass sectors like hospitality, mobility, agriculture, and warehousing. 

The primary objective is to streamline the adoption of self-driving technology across various industries. The founders’ compelling vision and the transformative potential of their technology have captivated investors. Notable backers include DevX Venture Fund, Venture Garage Angels, and Blume Founders Fund, collectively contributing $400K in funding in 2021.

Hackrew

• Founded In: 2018
• Founders: Sai Krishna Kothapalli
• Headquarters: Hyderabad, Telangana
• Sector: SaaS

In 2018, Sai Krishna Kothapalli identified two significant cybersecurity hurdles for businesses: escalating data breaches and the complexity of regulatory compliance for data protection. In response, Kothapalli founded Hackrew to streamline security testing and regulatory adherence for businesses. 

Hackrew offers a unified dashboard designed for both internal and external security and development teams in organisations. This tool facilitates the detection of security vulnerabilities, sharing of penetration testing reports, and proactive measures to prevent future security weaknesses. 

Paddleboat

• Founded In: 2022
• Founders: Shaswat Mishra, Ashutosh Raj, Sri Prasad Rajendran
• Headquarters: Chennai, Tamil Nadu
• Sector: SaaS

PaddleBoat offers a dynamic knowledge-sharing platform for companies, infusing gamification to stimulate employee learning. It promotes a culture of mutual learning among peers, accelerating onboarding processes, enhancing productivity, and fostering teamwork. 

Dew, PaddleBoat’s AI assistant, boosts personal productivity by providing customised suggestions, aiding in brainstorming, and facilitating collaborative creation. Dew also acts as a knowledge repository, enabling team leaders to monitor training time investments, recognise significant contributors, and pinpoint skill deficiencies among their teams. 

For instance, consider the collaboration between PaddleBoat and the digital sexual wellness clinic Allo Wellness. Allo struggled with a scarcity of sexual health experts and limited treatment offerings. Their primary hurdle was to onboard and train healthcare professionals efficiently, create compelling content, and ensure accountability. 

PaddleBoat addressed this challenge by offering an intuitive, cross-learning platform that streamlined the training process for health experts. This partnership resulted in rapid onboarding and an enhanced quality of sexual wellness services provided to Allo’s clients.

Swift Robotics

• Founded In: 2020
• Founders: Sunny Duseja, Michael Kostyal
• Headquarters: Mumbai, Maharashtra
• Sector: Robotics

Frustrated by the lengthy queues in mall food courts and the slow pace of medicine delivery and report handling in hospitals, software engineers Sunny Duseja and Michael Kostyal took the plunge to solve it. 

Swift has developed robots that enhance indoor food delivery efficiency in malls and speed up medicine distribution in hospitals through automation. It aims to reduce human dependency, allowing people to move away from monotonous tasks and ultimately elevating service standards. 

The startup has made its mark in locations such as Delhi’s Ambience Mall, an NHS hospital in London and Mumbai’s Reliance Hospital. Duseja and Kostyal envision deploying 1,500 robots in the near future, transforming service delivery mechanisms. 

Ving Hybrid

• Founded In: 2020
• Founders: Aditya Pisupati, Amitabh Patney
• Headquarters: Bengaluru, Karnataka
• Sector: SaaS

During the COVID-19 pandemic, as the global workforce transitioned to a new working paradigm, Aditya Pisupati and Amitabh Patney, product developers at CISCO, recognised the critical need for tools that support a hybrid working model. 

Experiencing the challenges of remote work firsthand, they understood the importance of fluid communication and seamless virtual collaborations, particularly for meetings. In response to this need, they developed Ving Hybrid, a video conferencing platform designed to streamline remote collaboration. 

Ving Hybrid distinguishes itself with a user-friendly interface that initiates meetings through a simple QR code scan, eliminating the complexities often associated with virtual meeting setups. The platform claims to be cost-efficient, reducing licensing and hardware costs by 70%, presenting organisations with an economical solution for their communication needs. 

It’s designed for universal compatibility, ensuring that users can connect effortlessly across various devices. 

VouchPay

• Founded In: 2020
• Founders: Nithin Prakash, Krishna Jonnakadla
• Headquarters: Bengaluru, Karnataka
• Sector: Fintech

Nithin Prakash and Krishna Jonnakadla launched VouchPay in 2020, focusing on enhancing trust and security in escrow transactions. Escrow services play a pivotal role in safeguarding both buyers and sellers by holding the payment in a secure account until the terms of the agreement are met.

Recognising that trust is a fundamental component in transactions, VouchPay expedites the trust-building process. The platform offers a digital escrow dashboard, designed to cater to diverse transaction needs, streamlining the process for individuals and businesses alike. Its efficiency in facilitating trust makes it easier for users to execute and receive bulk payments securely.

With a positive impact on over 50 organisations, startups, and businesses, VouchPay has established its value in the market. The startup is now setting its sights on expanding its services to accommodate international payments, broadening its scope and potential impact.

Workroom Automation

• Founded In: 2022
• Founders: Abhinav Atthota, Rohan Agarwal
• Headquarters: Hyderabad, Telangana
• Sector: SaaS

Recognising the inefficiencies plaguing manufacturing enterprises, such as manual operations, scattered data, and lack of real-time insights, software engineers Abhinav Atthota and Rohan Agarwal founded Workroom Automation. The startup’s no-code application, ‘Connected Factory’, addresses these challenges head-on. 

‘Connected Factory’ enables manufacturers to easily create custom apps without any coding knowledge, effectively centralising shop floor data. This consolidation of information enhances visibility, efficiency, and product quality. By integrating people, processes, and machines into a singular system, ‘Connected Factory’ facilitates the collection and analysis of real-time data. This allows manufacturers to streamline their operations, improve decision-making, and ultimately boost productivity.

Zeyka

• Founded In: 2021
• Founders: Yug Aggarwal, Vipul Takkar
• Headquarters: Gurugram, Haryana
• Sector: AI

Zeyka has developed a 3D design software that revolutionises the designing and planning processes for designers and architects, enhancing their productivity. 

Cofounded by Yug Aggarwal and Vipul Takkar in 2020, Zeyka cuts the time required for design projects by 58%. The platform allows architects and designers to incorporate real materials and products from leading brands directly into their design phase, facilitating accurate visualisations and minimising the need for subsequent revisions. 

By streamlining material discovery, selection, and procurement, Zeyka enables architects to focus their expertise on the creative aspect of designing, optimising both time and resources.

The post Meet The 11 Early Stage Startups From BITS Pilani Conquest’s 19th Edition appeared first on Inc42 Media.

upGrad cofounder and chairperson Ronnie Screwvala, Edelweiss Mutual Fund CEO Radhika Gupta, and Acko’s Varun Dua, have joined Shark Tank India as the new sharks, for the upcoming third season. This brings up the total number to 12 this season.

Season three, currently in production, also features Ritesh Agarwal (founder and Group CEO of Oyo Rooms), Deepinder Goyal (founder and CEO of Zomato), and Azhar Iqubal (cofounder and CEO of Inshorts) as sharks.

Gupta serves as the CEO and managing director at Edelweiss Mutual Fund since 2017. Under her leadership, the company has grown into one of India’s leading mutual fund houses.

On the announcement, Gupta tweeted, “Founded a company. Building another one. And investing in many others that are building the India of tomorrow. Love everything about entrepreneurship and want to do everything to cheer for those who are building this country. This weekend at Shark Tank India is just about that. Super excited to learn, share and be part of the magic of new.”

She further clarified on X that her investments in Shark Tank will be in a personal capacity.

Meanwhile, upGrad has garnered support from prominent investors, including Temasek, Lupa Systems led by Murdoch, the International Finance Corporation, and IIFL. Established in 2015 by Screwvala, the edtech unicorn has raised over $650 Mn in funding to date.

The edtech startup has lately been in the news for all the wrong reasons. In July, GST officials visited upGrad’s office, which the startup termed as a routine survey. Prior to that, it laid off 40% of workforce at its subsidiary Harappa Education. It also fired 120 employees at its video learning arm upGrad Campus in March this year. 

On the other hand, the Bengaluru-based insurtech unicorn Acko, founded in 2016 by Varun Dua and Ruchi Deepak, is a digital insurance policy provider. It entered the coveted unicorn club in 2021 after raising $255 Mn in Series D round led by General Atlantic and Multiples Private Equity Fund. 

Acko, which sells automobile, health, and travel insurance on its platform, has raised around $458 Mn to date. 

Acko saw its net loss more than double in the financial year ending on March 31, 2023. The startup reported a loss of INR 738.5 Cr for the fiscal year 2022-23 (FY23), marking a 53% increase from INR 482.3 Cr in FY22, primarily due to an increase in expenses.

Other sharks in season three include — Aman Gupta (cofounder and CMO of boAt), Anupam Mittal (founder of People Group), Namita Thapar (executive director of Emcure Pharmaceuticals), Peyush Bansal (cofounder and CEO of Lenskart), Vineeta Singh (cofounder and CEO of Sugar Cosmetics) and Amit Jain (cofounder and CEO of CarDekho).

The former Shark Tank judge and BharatPe’s Ashneer Grover recently expressed his thoughts on the latest season of Shark Tank.

In response to a promo video for the third season of this popular reality show, Ashneer Grover humorously criticised the show for its emphasis on quantity over quality.

“Shark Tank 3 feels like an ‘audition’ for Shark Tank 4! There’s a life lesson – don’t change something that’s already working well and create unnecessary problems. Let’s hope that the increased quantity doesn’t compromise the quality!” he tweeted.

Shark Tank India has transformed its judges into celebrity CEOs, a phenomenon detailed in a recent Inc42 story. Our analysis found a 68X surge in Instagram followers for the Sharks, spotlighting not just the individuals but their businesses as well. However, experts caution that the companies run by these celebrity CEOs must offer substantive value beyond their newfound stardom to sustain growth.

The post Shark Tank Season 3: upGrad’s Ronnie Screwvala, Acko’s Varun Dua, Edelweiss MF’s Radhika Gupta Join As Sharks appeared first on Inc42 Media.

The year so far has thrown many challenges at Indian startups, yet founders have emerged more powerful than ever in the face of adversities.

Well, speaking about adversities, the startup funding has regressed to 2020 levels. The $8.3 Bn raised in 2023 so far is nearly one-fourth of what the Indian startup ecosystem had raised during the same period in 2021.

From a macro lens, things may look quite challenging for Indian startups and new-age sectors, however, a closer glance would unravel the dark horses of the Indian startup realm. 

One such example is the Indian SaaS market, which is scaling quite impressively and is projected to become a $50 Bn market opportunity by 2030, quadrupling its current size. Notably, Indian SaaS startups have raised more than $899 Mn so far this year. 

Not only this, even though the funding winter engulfed most of 2023, the month of October infused some hope, as Indian startups raised $1.1 Bn during the month, up from $846 Mn raised in the corresponding month last year. 

While this was hardly any respite for Indian startups, who continue to see a funding famine, we decided to stick to our tradition of bringing some of the most past-breaking startups to the fore every month.

In this edition of ‘30 Startups To Watch’, we have endeavoured to shine the spotlight on SaaS startups, accounting for the maximum number of startups in the list, followed by AI, edtech and fintech startups.

Amid the current scheme of things, we yet again raise a toast to Indian founders for their resilience as we bring you the 41st edition of ‘30 Startups To Watch’.

Editor’s Note: The list below is not a ranking of any kind. We have listed the startups alphabetically.

AccioJob

Unlocking India’s Tech Potential

In today’s tech-driven world, data analysts and software developers are in high demand. This is because businesses have increased their reliance on data-driven strategies and software-powered solutions. These fields offer promising career prospects, luring a significant number of undergraduates to seek and cultivate the requisite skills.

Based in Gurugram, AccioJob has positioned itself to cater to this burgeoning market by providing structured online learning programmes, which are tailored to help recent college graduates launch their careers in software development and data analytics.

At the heart of its offerings are comprehensive, live training courses in areas like Java full-stack development, MERN full-stack development, and data analytics.

Established in 2018 by Yashwardhan Burad, Priyanshu Agarwal, Vishu Bansal, and Harsh Sharma, AccioJob has plans to include high-demand domains such as DevOps, Testing, and Data Science by 2024.

AccioJob’s vision for the future includes exploring opportunities in formal education. This entails potential collaborations with colleges to integrate their programmes into undergraduate and postgraduate degree curricula. Additionally, AccioJob is considering establishing its proprietary degree offerings, either in partnership with institutions or with its physical infrastructure.

Algomage

The AI-Powered Photography Companion

In a bid to help fellow photographers ease their workloads and deliver images to their clients faster and with greater efficiency, Anand Rathi, Canon India ambassador, founded Algomage in 2021.

The startup, which also made an appearance on Shark Tank India, has three flagship products – AlgoCull, AlgoEdit and AlgoShare.

AlgoCull automates the culling and rating of thousands of images within an hour, based on user-defined parameters. AlgoEdit, on the other hand, uses AI to edit images in Lightroom, learning a photographer’s style and preferences over time as it receives user input. AlgoShare employs facial recognition to ensure that all event attendees receive their images.

The startup monetises its products through a freemium subscription model, allowing photographers to subscribe to any of Algomage’s three apps on a monthly or annual basis. Algomage also offers a free plan with limited features.

Altitude

Invest In Modern Assets With Mutual Funds-Like Ease

While there is a growing number of Indians who are making investments across a wide variety of assets, alternative assets like private credit, agronomy, real estate and private equity remain one of the most attractive classes of assets. While they promise high returns, only a few have the acumen to invest in such assets.

The gap in knowledge and the absence of a platform to help users invest in such assets prompted Krisha Maggo to build Altitude, a fixed-income platform enabling investments in alternative assets. The startup is set to soon launch its first investment opportunity, Prism Fund, on the National Stock Exchange.

The fund is a multi-asset structured investment opportunity designed as a diversified basket of 10+ modern assets, including real estate, private credit, litigation, inventory and revenue-based finance, structured notes, and private equity, among others. Altitude is also in the middle of establishing thematic investment schemes within the alternative asset category.

While Altitude has yet to receive SEBI’s approval for the Prism Fund, it claims to have 35K+ investors waiting for the fund launch.

It is looking to reach INR 100 Cr ($12 Mn) in assets under management (AUM) by November 2023, with an eye on scaling the number to $30 Mn (INR 250 Cr) AUM by December 2024.

AuditCue

Streamlining Audits With Flexible Solutions

Effective solutions for risk and audit programs have often proven elusive for many companies. Legacy options tend to complicate processes, while other established players often offer one-size-fits-all solutions that fail to address specific challenges.

AuditCue aims to disrupt this paradigm by delivering tailor-made solutions that boost process resiliency and agility for its clients. Founded in 2022 by entrepreneurs Gaurav Kulkarni and Naren Janakiraman, AuditCue wants to redefine the audit experience for both auditors and auditees.

What sets this Chennai-based startup apart is its flexible and modular platform. AuditCue understands that each organisation has unique challenges and needs, and it is committed to tailoring its services to meet those specific requirements.

AuditCue’s SaaS solution not only streamlines audit lifecycles but also enhances process resiliency and agility. It accelerates audit cycles, allowing organisations to stay ahead of the ever-evolving risk landscape.

Avidii

On-Demand Personalised Learning Platform

Amid the rapid growth of edtech platforms in India over the past five years, Switzerland and Bengaluru-based Avidii, which is now expanding in the Indian market, distinguishes itself through its unique approach. Avidii offers immediate, personalised, and commitment-free educational services, catering to individual preferences and needs, setting it apart from the crowd of other edtech platforms.

Founded in 2021 by Deepak Subbarao, Avidii claims to have onboarded over 400 expert tutors across India and has garnered more than 5,000 downloads within a short period. Avidii, which is active in four countries, has plans to reach 1 Mn users and downloads in India by the end of the year.

Avidii’s core offering is a 24×7 on-demand learning service, providing customised support in subjects such as mathematics, physics, chemistry, biology, commerce, and arts, primarily aimed at students aged between 11 and 18.

The platform operates with two primary business models. While its B2B segment focusses on partnerships with educational institutions to enhance the learning experience within schools and colleges, the startup’s B2C segment enables direct one-on-one interactions between students and tutors, creating a personalised deep-learning experience.

BellyRubs

Comprehensive Pet Supply With Care

In a country like India, where pet ownership is on the rise, the pet care industry plays a pivotal role. The significance of this industry extends beyond convenience; it underscores the bond between humans and their pets. The growing awareness of pet care reflects an evolving society that values its four-legged members as family. BellyRubs understands this shift and stands at the forefront, offering a curated selection of high-quality products sourced from around the world.

BellyRubs, an online pet supply store founded by Shirin Lamba and Ridhi Verma, is a one-stop shop for all your pet-related needs. The startup boasts an extensive array of products, spanning grooming essentials, premium food, engaging toys, and fashionable clothing for dogs.

At BellyRubs, the focus is clear: happy owners, happy pets, and a happier world. It is not just about pet products; it is about improving the lives of beloved animals, ensuring they receive the best care possible.

Brown Living

Providing Easy Access To Sustainable Products, Deliveries

With the growing environmental concerns, businesses are increasingly acknowledging the need to minimise their environmental impact and maximise social contributions. However, challenges such as limited capital, small-scale production, and building brand credibility persist in the ever-expanding eco-conscious market, hindering the growth of sustainable businesses.

Established in 2019 by Chaitsi Ahuja, Brown Living aims to bridge this gap by making sustainability a mainstream choice through the doorstep delivery of eco-friendly everyday-use products via its ecommerce platform. The company follows a drop-ship model to ensure plastic-free deliveries and support remote businesses.

The ecommerce startup hosts over 500 brands on its platform, offering more than 65,000 SKUs across various sectors, including fashion, home decor, lifestyle, food, and kitchen essentials. Using its proprietary curation method, The Brown Lens, the company claims to have physically assessed over 1,200 businesses.

Beyond being an ecommerce platform, Brown Living provides knowledge and education to support a sustainable lifestyle through its media service content. According to the company, 78% of its GMV comes from its online platform, followed by B2B orders and offline sales.

ClearFeed

AI-Powered Conversational Support Platform

Incorporated in September 2021, Bangalore-based ClearFeed is a conversational support platform designed to improve customer service and streamline internal communication for enterprises. Cofounded by Ankit Jain, Joydeep Sen Sarma, and Lalit Indoria, the startup leverages the power of AI and deep integration with popular tools like Slack and Microsoft Teams to revolutionise how businesses handle customer and employee requests.

As remote work has become the norm, communication platforms like Slack and Microsoft Teams have become integral to business operations.

ClearFeed recognises the growing need for efficient conversational support tools to bridge the gaps across various departments. The startup uses AI models to track and escalate inquiries and requests. This allows different departments to interact seamlessly, enabling service teams to manage high query volumes and provide quick responses.

ClearFeed has introduced innovative features such as triage channels, one-click ticket filing, and live two-way syncing of data. The startup’s platform also integrates OpenAI’s GPT-4, which indexes product documentation, knowledge bases and wikis. This system can automatically generate answers in response to user queries, assisting agents in resolving user issues.

With a strong focus on product development, ClearFeed has experienced exponential growth since its launch. The platform is now used by over 100 organisations globally, including industry leaders like Atlan Data, Last9, Sprinto, and Plum Insurance.

Clinikally

Expert Dermatology At Your Fingertips

India’s professional skincare market has experienced significant growth, driven by an increasing awareness of the benefits of skincare. While this market initially focused on women, it now attracts a growing number of men who recognise the significance of maintaining healthy skin and addressing skin and hair-related concerns.

Founded in 2021 by Arjun Soin, Clinikally is a healthtech startup that addresses the scarcity of dermatologists in India by offering a comprehensive and convenient telehealth platform. The company connects consumers with licenced dermatology practitioners, who create personalised treatment plans for various skin conditions.

In addition to its core services, Clinikally has expanded into pharma distribution with private-label products under the Clinikally brand for aesthetic conditions and the Soteri Skin brand for chronic skin conditions. The platform offers dermatologist consultations at an affordable rate of INR 199 and presents innovative skincare products to its customers.

Clinikally’s short-term objectives revolve around strengthening its telehealth services, broadening its nutrition and nutraceutical offerings, and increasing the number of private-label partnerships from 175 to 500+ doctor clinics. Looking ahead to 2026, the company aspires to become a comprehensive platform for dermatology and nutrition care, featuring telehealth services, an online pharmacy, premium consumer brands, a nationwide network of dermatology specialists, and offline clinic partnerships.

Contiinex

High-Accuracy Private Cloud Speech AI Platform

In an era of automation, speech AI has a crucial role to play in improving user experiences and aiding data-driven decision-making. Founded in December 2020 by Prateek Mehta and Vijay Krishna BS, Contiinex is looking to target the English-speaking global speech market.

With its proprietary speech-to-text engine and the Contiinex Open Framework for Insights (COFI), driven by Language Model (LLM) technology, the company has already made progress in the healthcare and insurance sectors.

The startup is focussed on transforming customer experience, enhancing business productivity, and optimising costs for companies in India, the US, and Australia. Contiinex’s Speech AI platform can analyse voice files and empower businesses to understand their customers better and make strategic business decisions.

The Bengaluru-based startup is also looking at expanding its Gen AI product offerings to address the space of unstructured data across all mediums like voice, chat, email, videos and visuals. With its in-house LLM capabilities, Contiinex wants to expand its horizons to other verticals like banking, retail and utilities.

DPDzero

Debt Collections Made Stress-Free

In recent years, India has witnessed numerous instances of debt recovery gone awry, leaving both lenders and borrowers in distress. The use of unscrupulous tactics by collection agencies employed by banks and NBFCs has exacerbated the situation, sometimes pushing borrowers to take extreme measures.

Recognising that the tech-enabled intervention in this domain has been limited, Ananth Shroff and Ranjith Ramachandra founded DPDzero, an AI-powered collections and debt recovery platform, in 2020. The startup serves both secured and unsecured products while maximising collection efficiency, especially for unsecured lending products.

In recent months, DPDzero has forged partnerships with major NBFCs, including Tata Capital, KreditBee, Cashe, LazyPay and Snapmint, witnessing an impressive 7X growth in revenue within the past ten months. The startup generates revenue by earning a share of collections.

In the short term, DPDzero aims to assemble a high-calibre team, bolster information security measures, and optimise its processes. By 2026, the company plans to invest in advanced AI models to introduce hyper-personalisation, expedite default prediction, and implement advanced borrower negotiation models.

Dressfolk

Ethical Fashion, Sustainably Sourced

The state of child labour in the fashion industry is appalling at best. According to a report, nearly 60% of the workers in Indian mills were under 18 when they were first hired.

Dressfolk, founded in 2017 by Nitin Mehrotra, specialises in creating traditional Indian dresses from across the country. The startup has partnered with 720+ artisans to empower the local weavers’ community, focussing on sourcing its products responsibly and free of child labour at any stage of its supply chain.

Dressfolk is also focussed on building collaborative relationships with artisans to understand craft regions and traditions.

The startup sells its products across categories such as sarees, blouses, fabrics, dupattas and suit sets via its website and several offline multi-brand and online marketplaces in the premium price category. Dressfolk claims to have a user base in 20 countries and boasts that it has increased the income of its partner artisans by more than 150%.

Equal

Consumer Verification Platform

Founded by Keshav Reddy and Rajeev Ranjan in 2022, Equal is a pioneering startup that envisions a world where access to essential services and opportunities is based on merit, not identity. In a nation as diverse as India, where numerous individuals are denied access to credit, housing, benefits, and products due to various factors, Equal seeks to level the playing field for over a billion Indians.

At the heart of their mission is the Equal ID Gateway, a product that empowers businesses to establish seamless and secure identity-sharing workflows for consumers. Much like a payment gateway facilitates financial transactions, the Equal ID Gateway facilitates the exchange of personal identification information when requested, all while maintaining privacy and security.

It spans a wide array of use cases, from healthcare to education, employment, and travel, essentially anywhere a consumer needs to share their identity with a business.

Equal’s revenue is generated through a pay-per-verification model. It claims to have over 1 Mn consumers currently.

Fairdeal

Revolutionising Retail Distribution With Data-Driven Insights

D2C brands have gained substantial traction in recent years, but expanding beyond online channels has been challenging due to high costs. The primary issue is establishing efficient offline distribution networks.

Fairdeal, founded by Prateek and Yash Bansal, aims to disrupt the retail distribution landscape in India with its innovative data-driven approach. The startup provides comprehensive offline distribution services to D2C brands, enabling them to tap into the vast potential of the Indian market.

Fairdeal connects D2C brands with a network of over 10,000 retailers. Leveraging data, Fairdeal ensures optimal brand-to-retailer matching, resulting in faster and more substantial sales. Additionally, the company helps brands co-create new products and develop pricing strategies. This approach benefits not only emerging D2C brands but also established local brands seeking expansion into new territories.

Figr

Next-Gen Design Tools On Offer

The user interface (UI) is a critical component of app and website design, serving as the initial point of interaction for users. However, many design teams struggle with a lack of inspiration, motivation, resources, or time, resulting in subpar UI and disappointing user experiences.

Founded in 2023 by Chirag Singla and Moksh Garg, Figr aims to address these challenges with its AI-driven tools, including Lookr, Flash UI, and Prokit.

Lookr provides users with a vast database of high-quality design work, helping them find design inspiration through a search-based method and recommendations for needed elements.

Flash UI takes that inspiration and offers editable templates, enabling users to create customised apps or websites. Prokit provides design resources such as icons, fonts, and colour palettes, allowing users to develop a unique design language for their brand.

Figr is also in the process of launching two new products, Identity and Construct, which will enable users to build a brand identity from scratch and visualise concepts in a UI format. The startup operates on a subscription-based model, monetising its platforms through monthly or annual subscriptions.

FlexifyMe

Curing Postural Syndrome With Technology

According to a 2023 report, approximately 19% of India’s adult population is grappling with chronic pain, often stemming from poor postural habits and a sedentary lifestyle. Additionally, India witnesses nearly 2 Lakh cases of spinal injuries every year, with the majority attributed to chronic bad posture and habits.

In response to these pressing health concerns, Manjeet Singh, who successfully recovered from Lumbar Spondylitis in 2016-17, joined forces with his long-time friend and tech veteran, Amit Bhayani, to launch FlexifyMe in 2021.

FlexifyMe is an AI-powered platform designed to assist individuals in correcting their posture and alleviating chronic pain. Utilising advanced AI motion tracking, it can detect postural defects, muscle inflexibility, and musculoskeletal disorders (MSD).

The startup claims its AI motion coach generates the world’s first physical posture analysis report that identifies the root cause of chronic pain and creates a custom plan combining the latest physiotherapy postures with yoga and meditation. FlexifyMe offers personalised subscription plans, with an average cost of INR 16,000 for six months.

Currently, FlexifyMe claims to have attracted 2,000 paying clients from India and 24 other countries. They have ambitious plans to expand their user base to over 10,000 by the end of 2024, establishing partnerships with over 200 doctors in the process.

Giga ML

On-Premise Custom LLMs For Enterprises

One of the biggest problems is that most LLMs are only available as cloud-based services, meaning enterprises need to share data with third parties to use LLMs. That is not a viable option for many enterprises due to privacy concerns or compliance requirements.

Solving these problems is Bengaluru-based Giga ML, set up by Varun Vummadi and Esha Manideep Dinne in 2023. The startup provides on-premise deployment, fine-tuning and privacy for LLMs. Its X1-Large model is currently the most powerful LLM available for on-premise deployment. Giga ML also offers an API compatible with OpenAI’s API, so users can switch to the startup’s API seamlessly without rewriting code.

The startup targets enterprises that need to use LLMs for internal purposes but don’t want to use cloud-based services or share their data with third parties. Giga ML’s on-premise deployment option gives enterprises full control over their data and their LLMs. The startup also offers fine-tuning services for LLMs, so enterprises can train LLMs on their data to perform specific tasks. This allows enterprises to create LLMs that are tailored to their specific needs.

Giga ML’s privacy features are designed to protect the confidentiality of enterprise data. The startup does not use any data its customers upload to its platform. Giga ML monetises its product through a subscription model. Enterprises can pay a monthly fee to use Giga ML’s platform to deploy, fine-tune, and use LLMs on their servers.

Novatr

Empowering AEC Professionals

India has witnessed a significant surge in the edtech sector, primarily focussed on K-12 education, test preparation, and upskilling in areas like data science and marketing. However, Novatr, formerly known as Oneistox, stands out as an educational technology startup with a unique emphasis on transforming the architecture, engineering, and construction (AEC) industry.

Founded in 2021 by a team of architects and engineers, including Harkunwar Singh, Vipanchi Handa, Mehul Kumar, and Chaithanya Murali, Novatr aims to bridge the gap between traditional AEC education and the rapidly evolving technological landscape, equipping learners to become future-ready professionals.

The platform offers a diverse range of courses and programmes, including Building Information Modeling (BIM) and Computational Design, to help learners develop essential skills and stay at the forefront of industry advancements.

Established by accomplished professionals with backgrounds from prestigious institutions such as SPA Delhi and IIT Madras, Novatr empowers learners to become forward-thinking AEC professionals. It achieved remarkable net revenue growth of 30% MoM in FY23 and is projected to experience a 12X revenue growth in FY24.

Oyela

Empowering The New Wave Of Digital Entrepreneurs

There is an emerging trend of millennials and Gen Z starting online businesses on social media. Recognising the potential and challenges, two IIT Bombay alumni Rahul Gope and Anjan Kumar Patel launched Oyela in 2021 to empower the creative entrepreneurship explosion in India by providing essential tools and opportunities through social media.

Oyela assists emerging businesses, product creators, and artists in effectively selling their products and expanding their online presence. It offers features such as digital storefront management, collaboration tools for wider exposure, and seamless integration with Instagram for automated sales through social media.

A core focus of Oyela is building trust among Indian consumers by providing transparent ratings and reviews, instilling confidence in sellers’ digital storefronts. Furthermore, Oyela prioritises operational efficiency by offering tools to streamline operations and logistics, ultimately enhancing the overall selling process and delivering a more personalised and efficient shopping experience to buyers.

Oyela currently operates across India, charging a 6-10% commission on orders, thereby facilitating seller collaborations and benefiting them. The platform boasts over 20,000 sellers who have joined at no cost and facilitates more than 1 Mn seller collaborations each month.

This Gurugram-based startup has set its sights on reaching $1 Mn in revenue and empowering 200K social stores by 2024. Its long-term aspirations encompass nurturing entrepreneurship and empowering 2 Mn social stores to capture a substantial market share in the Indian ecommerce and social commerce arena.

Pep

Social-first Content Marketplace

Founded in early 2023 by IIT alumni Nav Agrawal and Swapnil Upadhyay, Bengaluru-based Pep aims to revolutionise the content creation landscape in the era of Gen AI. The rapid evolution of technology has made content creation more accessible, but it has also inundated the internet with a deluge of low-quality content. Pep addresses this challenge through a unique approach, emphasising curation, categorisation, and content credibility.

Pep’s mission is to establish a social-first online marketplace for content that empowers users to explore, purchase, and monetise a wide variety of content and services. The platform offers a one-stop destination, granting users access to live sessions, one-on-one consultations, and the ability to purchase various content formats, including PDFs, videos, and audio.

Recognising content discovery as a major pain point for online users, Pep employs personalised machine learning algorithms to facilitate tailored content discovery at reasonable prices, making it effortless for users to discover valuable and relevant content.

Its core concept revolves around user-generated content, with a focus on micro-courses and micro-payments. The marketplace offers content ranging from INR 29 to INR 2,000, catering to a wide spectrum of user interests, from cooking and DIY crafts to fashion and health and fitness.

Pep empowers users to easily monetise their expertise by selling content through a commission-based model, with fees varying from 20% to 50%, contingent on the content category. With its machine learning algorithms, the startup ensures that customers discover and purchase content at affordable prices, fostering a no-regret approach to content consumption.

Platos

Simplifying Cafeteria Management

Running cafeterias without the use of technology often leads to operational inefficiencies such as manual order processing, inventory mismanagement, and a lack of transparency. To address these challenges, Arjun Subramanian and Raj Jain founded Platos in 2019.

At the heart of Platos’ vision are three distinct applications designed to create a smarter cafeteria experience for customers, food partners, and cafeteria managers. The Platos App empowers customers to effortlessly place orders, track their food, and provide feedback.

The Platos Partner App, tailored for on-site vendors, simplifies inventory management and order cycle control. Meanwhile, the Admin Web Dashboard offers comprehensive real-time data and financial insights, enabling administrators to efficiently manage cafeterias.

The journey of Platos began with thorough market research and hands-on experience running cafeterias without technology. Before the pandemic, the founders operated cafeterias in Chennai which clearly illustrated the imperative need for technological solutions to optimise and elevate cafeteria management.

Platos aims to tackle issues such as high aggregator commissions, cafeteria management inefficiencies, and transparency gaps, ultimately enhancing the cafeteria experience for clients and food partners. With its commitment to seamless technology and professional food partnerships, Platos is set to reshape the corporate catering landscape.

QuriousBit

Redefining Casual Gaming

Casual gaming has gained immense importance in recent years, reflecting the changing dynamics of the gaming industry, which like many other sectors and industries has greatly benefited from the widespread availability of affordable mobile data. Even those with basic smartphones can easily access and contribute to the growing mobile gaming community through app stores.

Founded by Ramakrishna Reddy Y L and Shubham Joshi in 2023, QuriousBit, a gaming studio based in Bengaluru, is on a mission to revolutionise the mobile gaming industry by offering high-quality casual puzzle games. In a genre largely dominated by match3 and blast-themed games, QuriousBit seeks to introduce a fresh and personalised gaming experience.

The founders bring a wealth of experience, having previously developed and managed games for PlaySimple Games, a global leader in word games that was acquired for over $500 Mn in 2021. QuriousBit is fuelled by the ambition to put India on the map of hit puzzle games globally.

With the global mobile casual games market valued at around $18 Bn in 2023 and projected to reach $25 Bn by 2027, QuriousBit is well-positioned to tap into the growing casual gamers of the country.

SYSOTEL.AI

Transforming Hospitality with AI, ML Solutions

Founded in 2021 by Raj Sahu, Kiran and Ravish, SYSOTEL.AI is on a mission to revolutionise the hospitality industry through innovative technological solutions. At the heart of SYSOTEL.AI’s product suite is a platform, Intelligent Booking Engine (IBE), that not only ensures secure online reservations but also simplifies the booking process for guests.

This engine integrates with Google’s extensive travel services, making it the preferred choice for hotels seeking to solidify their online presence.

The company also has a fully automated revenue management system, Intelligent Yield Automation (IYE), that harnesses the power of AI and ML to recommend competitive rates based on real-time market data and native demand trends. It also provides invaluable insights into market dynamics, event planning, and reputation management.

The 1% Club

Helping Indians Achieve Financial Freedom

Today, a majority of Indians are worried about their financial well-being, and there are several reasons behind this. One such reason is that India, despite being a savings-first nation, saw its household savings hit a 47-year low in FY23, according to the RBI data.

Amid the current scheme of things, many individuals get stuck in situations, be it poorly paying investment cycles or even investment scams, which only deteriorate their financial health further.

Having been in this space for a long time, finfluencers Sharan Hegde and Raghav Gupta set up The 1% Club in 2022 to address the challenges budding investors face in their investment journey.

The 1% Club is a members-only financial education platform that offers educational resources, mentorship, entrepreneurial opportunities and networking avenues to its members looking to achieve financial independence.

The platform offers curated courses across personal finance and the stock market. Each module starts with the basics and then goes deeper. For instance, the personal finance segment goes from investments across different asset classes to insurance planning and, finally, tax planning. Similarly, the stock market module starts with the stakeholders and moves to IPOs, financial statements, annual reports and the psychological aspects of investing.

The startup claims to be the first influencer-backed venture to delve into entrepreneurship. In the short term, The 1% Club is looking to get registered with the market regulator SEBI.

The Cube Club

Weights, Workouts, Tech & More

India is fast becoming the world capital for lifestyle diseases such as obesity and diabetes. Despite this, a lack of motivation to pursue a healthier lifestyle continues to grip most individuals.

Having sensed the underlying problem, Pratik Agarwal, Siddhesh Ghuge and Yash Thakur came together to launch The Cube Club in 2020. The Cube Club is an online marketplace from where users can buy fitness equipment and accessories such as dumbbells and weights, benches, pull-up bars, yoga mats, and more.

In October 2023, the startup launched its fitness app, Dopamine, which allows users to embark on their fitness journey with friends from the comfort of their own homes. Users can create workout channels on the app, allowing them to track their progress and stay motivated. The Dopamine app uses AI-based tech to track a user’s workout routine, which then can be shared with friends in a gamified manner.

Currently, The Cube Club generates revenue by selling fitness equipment on its website, Amazon, and over 100 offline stores. Looking ahead, the startup plans to diversify its revenue streams by monetising Dopamine.

Valo

Invest In The Stock Market And Earn Rewards

At the end of January 2023, Indians held more than 11 Cr demat accounts, up from around 8 Cr accounts a year ago. The high number still translates to a mere 3% of India’s total households actively investing in the stock market. The market’s complexity and the lack of substantial returns have made it a daunting prospect for many.

Recognising the challenges, Ayush Agarwal, Mihir Verma, Hemant Patil and Ajay Sharma, all avid stock market investors, seized the opportunity to create a platform that rewards investors for their consistent participation in the stock market. Thus, Valo was born in 2023.

The startup has formed partnerships with numerous brands, including Domino’s, Spotify, Netflix, Swiggy, Zomato, and others, to incentivise users for their stock market investments. Valo also offers a dedicated finance community where investors can engage, learn, and grow together in the personal finance domain. Additionally, it features a finance marketplace similar to the Google Play Store but for finance-only apps.

The platform utilises broker API to access investment data, providing users with rewards and key metrics without the need for email or SMS access, thus safeguarding user privacy.

Valo generates revenue through brand partnerships and commissions from trades, without imposing any charges on its users. Despite its recent launch in September 2023, the platform has already attracted over 1,000 users within a month. Valo’s ambitious plans involve expanding its user base to 10,000+ by the end of 2024.

Vegapay

Streamlining Credit Card Issuance For Enterprises

Credit cards are rapidly gaining popularity in India. This has prompted many companies across segments to launch co-branded credit cards with major banks and networks. However, the process takes anywhere between 12 and 15 months and requires 10+ tech integrations across processes.

With the NPCI and banks targeting 300 Mn credit cards in the next five to seven years, banking and technology veterans Gaurav Mittal, Abhinav Garg, Himanshu Agrawal and Puneet Sharma founded Vegapay in 2022. The startup offers a core Credit Card Management System (CCMS) for both the supply side (banks) and the demand side (co-brand partners).

Vegapay enables hyper-configurable solutions for credit card offerings, alongside white-label dashboards for the issuers to create and manage programmes without any dependency on tech.

Currently, Vegapay has established partnerships with a bank to oversee all aspects of credit card management and aims to onboard four banks by the end of the coming year. Vegapay has also recently introduced a multi-currency card in collaboration with two issuers and a co-branding partner.

Vegapay’s revenue model relies on a one-time fee and subsequent commission from minimum monthly billing done by the user banks. The startup is now working to expand to Middle East and North African regions and reach 15+ banking partners by the end of 2025.

Wootz.work

Custom Engineering Procurement Simplified

Founded by Karan Anand and Himanshu Uniyal in 2023, Wootz.work is a global sourcing platform specialising in custom engineering equipment and solutions. It is dedicated to streamlining the cross-border buying experience for light engineering products through technology and ownership of the entire process, from design to delivery.

The platform not only connects buyers with sellers but also offers a unique capability to link them directly to products and solutions tailored to their specific needs. The startup’s technology leverages an understanding of basic parameters, the buyer’s geography, industry, and application to instantly customise products. This approach reduces the procurement timeline, providing quotations within 24 hours.

In a rapidly evolving engineering equipment industry valued at $1.7 Tn, Wootz.work addresses the challenges faced by Western buyers looking to source from Southeast Asia. The platform simplifies the complex landscape of SME suppliers, overcoming language barriers, long pre-sales times, and other complexities. Wootz.work aims to bridge this gap and create a reliable global procurement channel for SMEs, allowing them to access value-driven capital expenditure.

Wootz.work emphasises value engineering, offering products optimised for easy installation and efficient shipping, with components chosen for end-market serviceability and compliance. The platform also provides virtual factory tours, comprehensive fulfilment dashboards, and round-the-clock after-sales support.

Zeron

Enhanced Cybersecurity For Enterprises

Cybersecurity challenges persist as threats become increasingly sophisticated. Issues such as data breaches, ransomware attacks, and vulnerabilities in technology infrastructure remain prominent. Addressing these challenges demands robust defence strategies, threat intelligence, and innovative solutions.

Founded in 2020 by Sanket Sarkar, Zeron, the cyber risk posture management platform, is working on cybersecurity for enterprises. It offers a comprehensive suite of solutions, following an ABCD framework, to address various aspects of cyber risk management. These modules include attack surface automation, business posture assessment, compliance automation, defence automation, and a cloud monitor.

Zeron’s flagship product serves as the single source of truth for cybersecurity, providing real-time insights into an organisation’s vulnerabilities, strengths, compliance alignment, and defence effectiveness. Zeron’s compliance automation and AI solutions automate workflows, technical evidence mapping, and policy enhancements, reducing compliance time and errors, improving audit readiness, and ensuring proactive policy improvements.

Zeron operates on a subscription-based revenue model, granting clients flexibility in payment terms. The company’s presence extends globally, with its headquarters in Mumbai, India, and outreach in the ASEAN, MENA, the Americas, and the EU regions through strategic partnerships.

In the short term, Zeron aims to onboard 50 customers and strengthen its presence in the MENA and ASEAN regions. In the long term, the company envisions creating an ecosystem for cybersecurity trust among organisations, simplifying their business journey.

Zopnote

Giving A Tech Boost To Local Commerce

India had 2.79 Cr formalised jobs as of August 2023, according to the latest data from the Ministry of Statistics and Programme Implementation. However, this figure represents only about 5% of the 52.4 Cr Indians actively participating in the labour force. The vast unorganised sector is gradually recognising the potential of technology and its transformative capabilities.

At the forefront of this transformative movement is Zopnote, a B2B2C SaaS platform dedicated to local commerce. Founded in 2019 by Rajesh Badgeri and Chengappa Chottera, this innovative startup offers two distinctive apps — a merchant mobile app and a customer app.

The former empowers small local businesses with features like customer engagement, automated billing, online collection, bookkeeping, and business intelligence. The latter enables end customers to discover and purchase products and services in their vicinity, track expenses, and make payments seamlessly. For instance, businesses can list their products and services on the platform, allowing users to explore and place orders directly from the app.

Although currently operational only in Bengaluru, Zopnote has successfully garnered over 52,000 B2C customers across 1,000+ communities in the city, processing more than 2.3 Cr bills each month. The startup monetises its platform through a subscription fee that merchants pay to utilise its services.

In the short term, Zopnote aims to achieve product-market fit (PMF), with long-term plans involving the creation of a decentralised model to leverage the Open Network for Digital Commerce (ONDC) and expand its reach across India.

[Edited by Shishir Parasher]

The post 30 Startups To Watch: Startups That Caught Our Eyes In October 2023 appeared first on Inc42 Media.

Within the landscape of finance and business, few milestones are as significant as taking a company public. Initial Public Offerings, or IPOs, mark a company’s transition from a privately held entity to one open to public investment. 

This pivotal moment can transform a company’s fortune and its stakeholders, including founders, employees, and investors. There is no doubt that it is a moment that requires meticulous planning, strategic vision, and strong leadership.

At the helm of this transformative journey stands the Chief Financial Officer (CFO), a key player responsible for making the company IPO-ready. 

The CFO’s role extends far beyond managing the financial aspects; they are instrumental in shaping the company’s governance, ability to attract investors, and potential for future growth.

CFO’s Significant Role In Preparing A Company For An IPO

From an investor’s perspective, a company’s decision to go public is an opportunity to become part of its journey, carefully evaluating financial health, growth potential, and overall management. 

In this context, the CFO emerges as a central figure, serving as both the guardian of the company’s financial data and the voice of the financial narrative. 

Investors look to the CFO for transparency, reliability, and a comprehensive understanding of the financial landscape. With this in mind, let’s look into how a CFO can help make a company IPO-ready.

Fundamental Financial Preparation

Effective financial preparation for an IPO is paramount and involves multiple critical aspects. Firstly, the CFO must meticulously review the company’s financial fundamentals to address any vulnerabilities in its structure. This ensures that financial statements, cash flow management, and debt structures are rock-solid.

To instill trust in potential investors, the CFO’s second crucial task is building proficient finance teams across various functions. These include controllership, Financial Planning and Analysis (FP&A), Investor Relations (IR), financial operations (FinOps), business finance, tax, treasury, and more. 

These teams must excel at their roles and prioritise continuous training and development to meet the high standards of transparency that investors expect.

Furthermore, an efficient Enterprise Resource Planning (ERP) system is the backbone of the company. It promptly provides trustworthy and detailed financial information, a key factor in fostering investor confidence. Besides, strengthening financial controls is imperative. 

CFOs must uphold compliance with accounting standards and take a cautious approach to accounting positions, often providing additional disclosures in situations with any potential for debate. 

Long Term Revenue And Profit Growth With Disciplined Operating Rigor

Investors are naturally attracted to companies that offer a compelling and sustained story of revenue and profit growth. In this pursuit, the CFO takes on a central role, bearing the responsibility of crafting a persuasive and enduring long-term business narrative. This narrative must withstand the ebb and flow of market fluctuations and unforeseen disruptions. 

A crucial aspect of the CFO’s role is benchmarking the company’s profitability against both local and global peers. Through this benchmarking process, gaps and opportunities for improvement become apparent. It’s not sufficient to merely maintain profitability; the CFO’s mandate is to drive the company towards achieving industry-standard or superior profitability, with compounding growth rates that outpace revenue compounding. 

Simultaneously, the CFO conducts meticulous reviews of costs, identifying levers for expense optimisation to align with monthly and quarterly margin targets. 

Moreover, the CFO delves into an in-depth analysis of revenue, dissecting it by various segments and cohorts. This deep dive uncovers key areas and insights that contribute to achieving the coveted growth targets. 

Additionally, the CFO champions the creation of disciplined operating rigour in collaboration with operating teams. This commitment ensures that teams are held accountable and consistently deliver on promises, thereby upholding a high say-do ratio, further enhancing the company’s growth narrative.

Custodianship Of Shareholder Money

As the custodian of shareholder funds, the CFO plays a pivotal role in making critical decisions about capital allocation. This entails aligning reinvestment, dividend distribution, or share buyback choices to maximise shareholder returns. 

Also, vigilant monitoring of the return on capital for all forms of investments – whether organic or inorganic – underscores the CFO’s commitment to sound financial stewardship.

Furthermore, Enterprise Risk Management (ERM) is a cornerstone of the CFO’s responsibilities. They are tasked with spearheading the development and execution of an ERM strategy that embraces proactive risk management. This comprehensive strategy encompasses emerging risks such as cybersecurity and evolving customer and competitive trends. 

Additionally, beyond managing the company’s finances, the CFO is critical in upholding world-class corporate governance standards beyond managing the company’s finances. Central to this mandate is championing the Environmental, Social, and Governance (ESG) charter and cultivating a robust compliance team. 

In an era where governance lapses can yield severe consequences, the CFO fosters an environment that takes governance issues seriously and addresses them, even at the highest levels of management, to ensure swift resolution. 

Building A Positive Brand Image

A critical facet of preparing a company for an IPO is the proactive engagement with investors. Here, the CFO’s role extends to fostering a favourable image of the company, encompassing its business, activities, management, and performance. Beyond mere numbers, investors seek assurance in the people guiding the company, making the CFO’s role in creating this trust of paramount importance.

Building and nurturing relationships with an array of stakeholders, including auditors, the Board of Directors, shareholders, bankers, partners, and others, is also a central responsibility of the CFO. Trust forms the bedrock of these associations, with the CFO assuming a pivotal role in its establishment. 

Furthermore, the CFO collaborates with the Chief Human Resources Officer (CHRO) to cultivate a meritocratic culture within the organisation. This inclusive culture encourages employee engagement and responsible conduct, transforming them into brand advocates and bolstering the company’s long-term sustainability.

In Conclusion

The journey towards an IPO is a significant transition for any company. As it unfolds, the CFO emerges as a central figure responsible for preparing the organisation for this moment. Beyond the financial intricacies, they are crucial in shaping corporate governance, managing risks, and optimising capital allocation. 

Their ability to foster investor confidence and cultivate trust among various stakeholders is paramount to the success of the IPO. 

Furthermore, their dedication to nurturing a meritocracy and employee engagement culture contributes to the company’s long-term sustainability. In the dynamic landscape of finance and business, the CFO’s multifaceted role is indispensable, ensuring that a company is truly IPO-ready and equipped for a promising future. 

The post Role Of CFO In Making A Company IPO Ready appeared first on Inc42 Media.

The Startup India Seed Fund Scheme (“SISFS”) is a government initiative to provide financial assistance to early-stage startups in India. The SISFS aims to bridge the funding gap faced by startups at the seed and proof of concept stage. SISFS provides grants to eligible startups through incubators across India.

The SISFS is open to startups that are recognised by the department for promotion of industry and internal trade (“DPIIT”) and incorporated not more than 2 years ago at the time of application. 

The startup must have a business idea to develop a product or service with a market fit, viable commercialisation, and scope of scaling. 

The SISFS will help early-stage startups to validate their business ideas and develop their products and services. This will enable them to attract further investments from angel investors, venture capitalists, and other financial institutions.

Need For SISFS

The Indian startup struggles to obtain sufficient funding during its early stages, especially in the seed stages. The capital needed during this phase can often determine whether a startup with a strong business idea will succeed or fail. 

Providing seed funding to promising startups can have a significant ripple effect. It can help validate the business ideas of many startups, leading to job creation. 

This financial support benefits not only individual startups but also the entire Indian startup ecosystem, ensuring that promising business ideas are not stifled by a lack of early-stage capital, fostering innovation and economic development in the country.

Eligibility Criteria For Incubators  

To become eligible, incubators must be registered as legal entities, have a minimum of two years of operational experience, and have the physical capacity to accommodate at least 25 individuals. 

Additionally, they should have a full-time chief executive officer with expertise in business development and entrepreneurship, along with a capable team to mentor startups in various aspects. 

The selection process for incubators is comprehensive and evaluates various parameters as determined by the Experts Advisory Committee (“EAC”) such as:

• Eligibility criteria fulfilment
• Quality of the incubator team
• Infrastructure capacity
• Presence of an Incubator Seed Management Committee
• Past incubation performance
• Funding support
• Mentoring efforts
• Industry engagement
• Startup support plans, and other relevant factors  

Stringent Criteria For Incubators Without Government Assistance

For incubators that haven’t received government support, the eligibility criteria are more stringent, requiring at least three years of operation, a minimum of ten startups undergoing incubation, and the presentation of audited annual reports for the past two years. 

The selection process for incubators under SISFS is designed to assess their capabilities and track record comprehensively.

Selection Criteria For Startups

The application process involves online submissions through the startup India portal. Startups can apply to up to three incubators of their choice, and the applications are shared with the respective incubators for evaluation. 

Incubators assess startups based on the established selection criteria to determine their eligibility for seed support.

To identify the most deserving startups for SISFS, a clear and straightforward set of criteria has been established:

• Need for the Idea: Startups must address real-world problems, fill market gaps, and demonstrate potential impact.
• Feasibility: The technology or methodology used must be practical and capable of validation, supported by a clear development plan.
• Potential Impact: Startups should benefit customers and, when applicable, hold national significance.
• Novelty: The technology or idea must possess uniqueness and may include special rights or patents.
• Team: A strong and capable team with the right expertise is crucial.
• Fund Utilisation Plan: Startups must present a clear plan for how they intend to use the seed fund.
• Additional Parameters: Incubators may consider other relevant factors in their evaluations.
• Presentation: Effective communication of the idea is vital.

In Conclusion

Startups are eligible to receive a grant of up to INR 20 Lakhs to support proof of concept, prototype development, or product trials. This grant is distributed in milestone-based installments. 

Additionally, startups can access up to INR 50 Lakhs for activities related to market entry, commercialisation, or scaling, which can be provided through convertible debentures or debt instruments. 

It’s essential to emphasise that the funds must be used exclusively for their designated purpose and not diverted for creating facilities. Incubators have the authority to allocate a maximum of 20% of their total funds to startups. 

The interest rate on any unutilised funds held by the incubator is taken into account and adjusted in the subsequent release of funds by DPIIT, ensuring efficient utilization of resources.

This SISFS carries immense potential for nurturing the Indian start-up ecosystem. It empowers early-stage start-ups to validate their concepts and develop their products or services, thereby enhancing their attractiveness to angel investors, venture capitalists, and other financial institutions, and ultimately fostering innovation and growth in the sector.

The post Unlocking Opportunities For Indian Startups: The Startup India Seed Fund Scheme appeared first on Inc42 Media.

As I browsed the digital marketplace, I came across my friend Ravina, who was visibly frustrated and overwhelmed by the impersonal marketing messages flooding her inbox and social media. 

Her preferences were ignored, and her loyalty to brands went unnoticed. Seeing her discontent, I had a thought: what if brands could create a journey that truly sees and values each customer? 

As Don Peppers popularly calls it 1:1 Marketing.

This revelation sparked a deep dive into personalised customer journeys. My goal is to explore and create experiences where every individual feels seen and valued.

Welcome to a space where you are seen, heard, and valued. 

A recent study found that many consumers, especially younger ones, are willing to share their data in exchange for personalised experiences. 

This is a clear signal that brands need to focus on creating customer journeys that are relevant and meaningful to each individual.

Let’s work together to create a new and exciting chapter in your journey with us: 

Putting Your Wants First

Imagine a place where your unique preferences are valued and celebrated. You should use transparent data collection methods, like fun quizzes, to get to know the customer and its interests. Then, one should use this information to curate product recommendations that are perfectly suited to customers.

Conversations That Matter

It’s time to say goodbye to generic emails! With the power of AI, communications should be tailored to the individual preferences and needs. This means one will only receive messages that are relevant and valuable to them.

Dynamic Content That Changes With You

Consumers’ experience is constantly evolving, adapting to their interests and behaviours. From emails that highlight what they care about to a website that shapeshifts to their liking, every interaction should be tailored to them.

A Website Experience That Remembers

Whenever someone visits a website, it should help them find exactly what they are looking for. Recommend products based on their past purchases and browsing history, and even remember the items they’ve viewed recently. So that they can pick up where they left off, and discover new things they will love.

A Journey Beyond Purchase

One’s purchase should just be the beginning of their journey with your brand. Be there to support them at every step of the way, from answering their questions to resolving any issues they may have. Focus on creating a system that focuses on post purchase marketing e.g. customised VIP program, marketing flows, NPS, testimonials, referrals etc.

The post How 1:1 Marketing Empowers Personalised Customer Journeys 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]

The post New-Age Tech Stocks Rebound This Week; RateGain, Zomato Among Top Gainers appeared first on Inc42 Media.

After witnessing a V-shaped rebound in terms of startup funding last month, November kicked off on a sombre note. In the first week of the eleventh month of 2023, the startup ecosystem secured $133 Mn in funding across 18 deals, marking a significant 71% decrease from the $466 Mn raised in the previous week.

Funding Galore: Indian Startup Funding Of The Week [Oct 30 – Nov 4]

Key Startup Funding Highlights Of The Week

• Karnataka-based precision manufacturing startup Aequs raised $54 Mn in a funding round led by Amansa Capital, making it the biggest funding deal of the week.
• Fuelled by Aequs funding, the enterprisetech sector emerged as the most funded sector this week, raising $64 Mn across three deals.
• The enterprisetech and agritech sector witnessed the most number of deals – three each. While enterprisetech startups bagged $64Mn, startups in the agritech sector raised $3.6 Mn.
• Seed funding continued to see a decline this week as well. In the first week of November, seed funding stood at $2.1 Mn across three deals

Startup Acquisitions This Week

• Cloud kitchen startup Curefoods acquired foodtech startup Yumlane for an undisclosed amount.
• Peyush Bansal’s Lenskart acquired AI-powered computer vision startup Tango Eye for an undisclosed amount.
• Angel One acquired the team of Bengaluru-based learning app Dstreet Finance

Other Major Developments From This Week

• Healthtech unicorn PharmEasy recently conducted an INR 3,500 Cr rights issue that was oversubscribed, claimed cofounder Dhaval Shah.
• Java Capital closed its INR 50 Cr fund, with participation from startup founders and HNIs located in India, the Middle East, and the United States. 
• Anicut Capital received a commitment of over INR 30 Cr from HDFC AMC’s Fund of Fund, with possible additional allocation in the near future.
• Kratos Studios earmarked INR 50 Cr grant for Kratos Games Network to encourage gaming studios to migrate their games to its blockchain platform.
• JSW Ventures divested its stake in ecommerce unicorn Purplle by selling it to Manipal Education and Medical Group Family Office (MEMG)

The post From Aequs To Skyroot Aerospace — Indian Startups Raised $133 Mn This Week appeared first on Inc42 Media.

Global expansion is a crucial phase in the journey of many startups, offering new horizons and growth opportunities.

Here are some practical insights on how Indian startups can formulate their strategies for global expansion. No fluff, just straightforward advice tailored for tech-savvy founders.

Identify Your Global Markets

Before you start on the global expansion journey, you need a clear roadmap. Start by pinpointing the markets where your product or service can thrive. This is where data-driven decision-making comes into play. 

For us, it meant identifying markets with higher average salaries and a willingness to invest in SaaS solutions. Conversely, we ruled out regions with lower salaries and resistance to SaaS fees. 

Your selection criteria should be crystal clear. Assess the global demand for your offering, considering factors like economic conditions, technological readiness, and cultural compatibility.

Learn From Local Players

Local competition can be your best teacher. Study the strategies of established players in your target market. What worked for them, and what didn’t? Keep in mind that what succeeded in India might not apply elsewhere. 

You must discover your unique selling proposition and craft strategies to take on the competition. While pricing can be a competitive factor, it shouldn’t be your sole differentiator in the long run. Understand your market’s specific needs and tailor your approach accordingly.

Find The Right Product-Market Fit 

Your product might have achieved success in your home market, but it’s essential to recognise that one size doesn’t fit all. Each market has its unique characteristics and maturity levels. 

Your product-market fit in India may need adjustments to match the needs and preferences of a new geography. The goal is to find that sweet spot where your offering aligns perfectly with the local market.

Leverage Existing Relationships

Starting with a foundation of trust can significantly expedite your entry into a new market. Begin by expanding with existing clients who already have a presence there. These clients can provide valuable insights into the local landscape and make introductions to potential partners or customers. However, don’t let this limit your ambition. Actively seek out new clients to drive growth and establish a broader client base in the new market.

The Founder’s Role

In the initial stages of global expansion, the founder’s personal involvement is indispensable. As a founder, you must be prepared to dive into the nitty-gritty of setting up operations in the new market. 

While your executive team can take the reins in established markets, you’ll need to be the driving force in uncharted territories. Your active involvement not only instills trust in your customers but also ensures that the essence of your startup’s vision and culture is effectively communicated.

Adapting Your Role As Founder

Founders often wear multiple hats, adapting to the changing needs of their startup. In mature markets, your focus may shift towards team management and strategic vision. 

However, in new markets, it’s back to the basics. You’ll need to be hands-on, ready to adapt quickly, and lead by example. 

This hands-on approach is vital for building trust, understanding local dynamics, and overcoming the unique challenges of the new market.

Build A Local Dream Team

The success of your venture in a new market heavily depends on the strength of your local team. Hiring local talent is non-negotiable. Local employees bring an understanding of the local culture, consumer behavior, and market nuances that you simply can’t replicate from afar. 

Building a strong local team is not just about hiring; it’s about cultivating a culture of collaboration, adaptability, and shared goals.

In Conclusion

In the world of startups, global expansion represents a significant milestone and a promising opportunity for growth. By following these practical steps, you can navigate the complexities of international expansion while minimising risks and maximising your chances of success.

Keep it simple, learn from local players, and remain true to your startup’s core values. The journey may be challenging, but with a well-thought-out strategy, your Indian startup can thrive on the global stage, achieving remarkable success and realising its full potential.

The post Strategies For Global Expansion: A Pragmatic Guide For Indian Startup Founders appeared first on Inc42 Media.

Picture this: A bustling coffee shop in the heart of a vibrant city. The aroma of freshly brewed beans wafts through the air as patrons queue up, eagerly anticipating their morning caffeine fix. Among the patrons are you, a devoted coffee drinker.

The personal touch, not just the quality of their brew, keeps you coming back to this particular coffeehouse. Every morning, as you approach the counter, the barista greets you with a warm smile and says, “The usual?” You nod, and without needing to ask, the barista prepares your signature order.

In a world teeming with information and choices, the success of any product or service hinges on the ability to forge meaningful connections with customers. In this digital age, customers like you aren’t merely looking for products; they are searching for experiences that align with their unique preferences and needs. 

To unlock the full potential of the customer lifecycle, businesses must embrace a powerful approach: contextual engagement.

The Power Of Contextual Engagement

Contextual engagement in lifecycle marketing is a game-changer. It revolves around the idea of delivering personalised and relevant content to customers based on their individual preferences, behaviours, and needs. 

The key here is to bridge the gap between what products aim to deliver and what customers truly benefit from in the long run. 

Meaningful engagement on a continuous basis between products or brands and individuals is the catalyst for a chain reaction: increased interest leads to engagement, and engagement culminates in conversion.

Here are some of the key elements of an engagement strategy

• Understanding Your Customers’ Needs and Preferences: The foundation of contextual engagement lies in comprehending your customers’ needs and preferences. Invest in gathering data, conducting surveys, and actively listening to customer feedback. The more you know about them, the better you can serve them.
• Matching Needs to Your Product’s Benefits: Once you understand your customers, align your product’s benefits with their needs. Make it crystal clear how your product can solve their problems and enhance their lives.
• Building Contextual Campaigns: Armed with insights into individual preferences, behaviours, and needs, create highly tailored marketing experiences. Craft messages, offers, and recommendations that resonate with each customer on a personal level.
• Continuous Iteration: Don’t rest on your laurels. Continuously analyse real-time data, including product usage habits, interaction history, and social interactions. These insights will reveal what your customers are seeking, enabling you to adapt and provide exactly what they need.
• Breaking Through the Clutter: In an information-saturated world, customers carefully choose which products to engage with. Therefore, timing and channel selection are paramount. Interact with your customers at the right time and through the right channels to cut through the noise effectively.
• Building Loyalty: When your communication reflects a deep understanding of your customers’ aspirations and challenges, they’re more likely to trust your brand and become loyal advocates. Loyalty isn’t just about repeat purchases or desired product actions; it’s about forging enduring connections.

The Art Of Personalisation

Personalisation is the linchpin of contextual engagement. It involves two crucial components:

• Segmentation and targeting: Use data analysis to segment your customers based on their preferences and behaviours. This enables you to create highly targeted campaigns that resonate with specific customer segments. The result? Higher response rates and improved ROI.
• Storytelling: Beyond transactional interactions, storytelling plays a critical role in building a deeper relationship with your customers. Share narratives that connect on an emotional level, painting a vivid picture of how your product can transform their lives. Stories create lasting impressions and solidify brand loyalty.

The Power Of Contextual Communication In Action

If you’ve reached this point, then let me tell you something. You’ve probably been hearing about personalisation all throughout your professional career, so what’s new? In the digitally cluttered world, its become far more important to set context for any communication. 

Sending the right message with the wrong context will never really help you achieve your communication objective.  Now let’s go back to where we started. 

Consider the example of the same coffeehouse chain you go to. Instead of sending generic promotions to all customers, they employ contextual engagement. A customer who consistently orders black coffee in the morning receives an offer for a free pastry with their next purchase. In contrast, a customer who prefers iced beverages in the afternoon gets a discount on their favourite drink. 

Building context with the customer and delivering an offer is a critical element of the entire process. How often do we engage with brands who keep sending a few dozen offers and most do not even align with your purchase behaviour? This not only boosts bottom-line metrics but also fosters a sense of belonging and appreciation with your customer.

In conclusion, unlocking the full potential of the customer lifecycle through contextual engagement is a journey towards building meaningful, lasting relationships with your customers. 

By understanding their unique needs and preferences, crafting tailored campaigns, and weaving captivating stories, you can maximise success and create brand advocates who will champion your product for years to come. 

In the ever-evolving landscape of marketing, contextual engagement is the compass that guides you towards the pinnacle of customer satisfaction and loyalty.

The post Maximising Success: Contextual Engagement To Drive Action Across The Customer Lifecycle appeared first on Inc42 Media.

Azim Premji’s Bengaluru-based investment arm Premji Invest has witnessed the departure of three of its four seasoned partners this year. The latest to resign is Rajesh Ramaiah, who stepped down in August following a thirteen-year tenure with the company, as per a report by ET.

Ramaiah joined Premji Invest in 2010 as Director and CFO. He was promoted to the role of partner in 2018.

Rahul Garg and Atul Gupta were two other partners who left earlier this year. Gupta joined as a partner in 2008 to led PE investments in enterprise and consumer technology, education, healthcare and business Services.

On the other hand, Garg joined in 2010 to lead investments and portfolio companies in sectors like BFSI including insurance, payments and consumer/retail sectors.

Except Ramaiah, the other two partner’s LinkedIn profiles are not yet updated. Although Inc42 couldn’t verify the development, ET mentioned that a representative of Premji Invest has confirmed the acquisition.

“This is because each of the partners completed approximately 12-15 years, closed three funds and have different aspirations in their personal journey,” the representative said.

All three partners who have exited will continue to have an advisory engagement with the firm. Also, a cooling off period up to one year precludes them from taking up any other work commitments, as per the report.

Subsequent to the exits, the investment firm promoted its chief financial officer and operating partner, Manoj Jaiswal, as well as principal Saravanan Nattanmai as partners. It also hired former Amazon executive Kaveesh Chawla as a partner in June. Chawla had previously worked at Korean ecommerce firm Coupang.

Premji Invest has been active in the Indian startup ecosystem for more than a decade.

In November 2022, Premji Invest Opportunity Fund led a Series B round of INR 177 Cr in homegrown mattress and sleep-tech brand The Sleep Company. It has invested in more than 50+ startups, including Lenskart, FirstCry, Signifyd Icertis among others. It also has gained 15+ exits from companies such as Policybazaar, Myntra, Zuora and ICICI Prudential Life Insurance among others.

The post Three Long-Term Partners Bid Farewell To Premji Invest In 2023 appeared first on Inc42 Media.

After the funding surge in 2021, the Indian startup ecosystem is stabilising, with metrics returning to 2020 levels. The past 10 months have shown investors concentrating more on genuine growth and profitability metrics, leading to a tempered investment environment.

Despite having over $18 Bn in dry powder as of December 2022, startup investors have been circumspect. Only one startup, Zepto, achieved unicorn status, and many late-stage funding rounds fell short of reaching a $1 Bn valuation.

From January to October 2023, Inc42 reports that 718 Indian startups raised about $8.3 Bn, nearly matching the $8.7 Bn raised during the same period in 2020 by over 650 startups.

Prominent funding rounds in 2023 include Lenskart ($500 Mn), DMI Finance ($400 Mn), Ola ($384 Mn), and PhonePe ($350 Mn).

However, a substantial year-over-year drop in both the number of deals and the funding amount is evident. In 2022, Indian startups raised $22 Bn across more than 1,200 deals.

The ecosystem also experienced a 52.96% decrease in M&As, down to 103 from 219 in the comparable 2022 period.

Here are some other key trends observed during the last 10 months.

Number Of Funded Startups Continue To Decline

Between January to October 2023, 718 startups raised funding. This is a decline of almost 40% from 1,200 startups who raised funding in 2022 for the same period.

Although, the number is a bit higher than 650 startups raising funding in 2020.

In terms of funding, the maximum decline has been seen at late stage startups, which raised $610 Mn, down 56% on a year on year basis.

On the contrary, in terms of number of deals, seed stage saw the maximum fall having 30 deals, down 43% on an year on year basis. To be noted, India’s seed stage startups recorded a massive funding influx during the second half of 2022, raising $1.02 Bn.

October Shows Signs Of Recovery

On a positive note, the month of October showed signs of revival after months of fluctuations. The Indian startups raised $1.10 Bn,  a slight uptick from $960 Mn raised in previous month.

The rise in funding in this particular month can be attributed to the festive rush and the anticipation of high growth which push founders to invest in marketing and expansion opportunities.

Nonetheless, the monthly deal count declined significantly by 24.7%, dropping from 89 in September to 67 in October. This suggests that while investors are committing larger sums than in previous months, they remain selective, with only a limited number of startups meeting their criteria.

Cleantech Sector Dominate Funding In October

In the aggregate for the past 10 months, ecommerce has consistently led the pack. Yet, in October specifically, cleantech and fintech took the spotlight.

Ola’s substantial $384 Mn funding round significantly bolstered the cleantech sector, while neobank Zolve’s $100 Mn debt funding round provided a strong lift to the fintech industry.

Cleantech startups raised a total of $440 Mn in funding, followed by fintech ($255 Mn) and ecommerce ($148 Mn). In terms of number of deals, fintech and ecommerce top the charts with 17 deals each followed by enterprisetech (7) and deeptech (6).

The Road Ahead

According to analysts and investors Inc42 interacted with said that the startup ecosystem is now marked by more balanced valuations. Both investors and startups are exercising caution, carefully considering the long-term implications of fundraising.

Despite holding significant dry powder reserves, experts foresee a cautious yet gradual uptick in startup funding in the months ahead. Simultaneously, the investor community is bracing for an increase in startup IPOs. As companies increasingly focus on stability and profitability, things are expected to stabilise in the times to come.

The post Indian Startup Funding Rebounds To 2020 Levels, $8.3 Bn Raised In 2023 So Far appeared first on Inc42 Media.

Pre-seed stage fund Eximius Ventures has appointed former Flipkart executive Preeti Sampat as its cofounder and general partner. 

Sampat will lead Eximius’ investment strategy and decisions, taking a thesis-driven approach to investing in startups that have the potential to scale globally. She will also leverage her global network and insights to support the portfolio companies with follow-on fundraising, strategic hiring, and partnerships, the fund said in a statement.

Sampat pursued engineering at BITS Pilani, following which she worked in the technology, media, and telecom (TMT) sector. She was one of the first few employees of Flipkart, where she gathered experience of working with startups. 

“Preeti also possesses a profound grasp of the global venture and startup ecosystem, which will enable us to broaden our fund’s reach across geographical boundaries and extend our investment focus into AI/Gen AI, SaaS, health, and commerce,” said Pearl Agarwal, the founder and MD of Eximius. 

Sampat started her entrepreneurial and investment journey in 2018 when she cofounded a micro VC fund in the US that invested in pre-seed and other early stage funding rounds of startups in the US and the Latin American regions. 

Eximius claimed that half of Sampat’s investment portfolio startups have achieved annual revenue of more than $5 Mn. 

Commenting on the appointment, Sampat said, “I believe that there is a huge opportunity for early-stage investing in India, especially in frontier tech sectors that can create impactful solutions for India and the world. I look forward to working with Pearl and the rest of the team to support exceptional founders who are building the next wave of innovation.”

Founded in 2020, Eximius counts startups like Skydo, VegaPay, Hood, Oyela, among others as its portfolio. 

The development comes at a time when the Indian startup ecosystem continues to reel under the ongoing funding winter. Despite this, a number of new funds have been launched in recent times to invest in Indian startups at the opportune time. As per Inc42 data, 63 funds worth more than $5 Bn have been launched in 2023 so far out of which 46% are focussing on early-stage startups.

Meanwhile, a number of fund managers and partners are also leaving venture capital firms to start their own funds and even launch startups.

The post Eximius Ventures Ropes In Ex-Flipkart Executive Preeti Sampat As General Partner appeared first on Inc42 Media.