IPO-bound Ola Electric has become the first Indian electric two-wheeler (e2W) company to become eligible for the government’s production-linked incentive (PLI) scheme.

The Ministry of Heavy Industries (MHI) has given its approval after a four-month-long process.

While there has been no official confirmation from either the government or Ola Electric, it is worth noting that other major players like Hero MotoCorp, TVS Motor Company, and Bajaj Auto have also applied for the PLI scheme.

As per Moneycontrol’s report, citing an official close to the matter, Ola Electric has successfully met the scheme’s eligibility criteria, such as minimum 50% domestic value addition in its vehicles. 

“For e2W startups, fresh investment of Rs 1,000 crore is required to avail of the PLI scheme, while OEMs must have a minimum revenue of Rs 10,000 crore,” the source further added. 

Meanwhile, industry experts are of the view that the incentive payout under the PLI scheme will be up to 18% of the sales value.

The electric scooter maker has already filed a red herring prospectus with the markets regulator Securities and Exchange Board of India (SEBI) for an INR 7,250 Cr initial public offering (IPO). According to media reports, in total, the public issue will comprise an OFS component of up to 9.5.1 Cr shares. 

Last year, the company, along with Reliance New Energy Ltd and Rajesh Exports, signed a contract with the MHI under the PLI scheme for the manufacturing of advanced cell chemistry (ACC) battery manufacturing.

Back then, the government said that as a part of the contract, the companies would receive incentives under the INR 18,100 Cr PLI scheme. In addition, the government the expectations that three companies would set up a manufacturing capacity of around 95 GWh to be set up by these companies.

Earlier this year, the company announced that it had already started the construction of the country’s biggest gigafactory in Tamil Nadu. Ola Electric reported that during FY23, its sales were at INR 2,630.9 Cr, a 605%, an increase from INR 373 Cr in FY22. 

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Last week, Bhavish Aggarwal-led electric vehicle (EV) maker Ola Electric filed its draft red herring prospectus with the Securities and Exchange Board of India (SEBI) for an INR 5,500 Cr initial public offering (IPO). 

With this, the startup is set to be the first full-fledged EV player to go public. 

The startup’s public issues comprises a fresh issue of INR 5,500 Cr and an offer-for-sale (OFS) component of up to 9.51 Cr shares. 

Besides the offering, Ola Electric’s DRHP also shed light on the startup’s organisation structure and the shareholding pattern. 

Founder and chief executive officer (CEO) Aggarwal is the single-biggest shareholder in the EV manufacturer, owning 136.1 Cr shares. This translates to 36.94% pre-offer equity share capital in the company on a fully diluted basis.

Taking the second spot on the list is SoftBank’s SVF II Ostrich fund, which owns 81.04 Cr shares, or 21.98% stake. Tiger Global’s Internet Fund III has a 6.03% stake, or 22.24 Cr shares, in the company, as per the DRHP.

Meanwhile, promoter group entities Ola Cabs’ parent ANI Technologies and Indus Trust account for 4.35% and 3.85% stakes, respectively. 

Other major institutional investors include Alpha Wave Ventures with 3.49% stake, followed by Matrix Partners India, which owns 3.51% stake in the original equipment manufacturer through its two funds. 

Singaporean sovereign wealth fund Temasek, which led a $140 Mn funding round in Ola Electric in September 2023, owns 1.25% stake, or 4.6 Cr shares, in the EV company through MacRitchie Investments.

Similarly, Tekne Capital owns 0.99% stake in the company, while Nuvama Private Investments Trust accounts for 0.85% stake in the EV maker. 

Key People At Ola Electric 

At the top of the pyramid is Bhavish Aggarwal, who is the chairman and the MD of Ola Electric. An alumnus of Indian Institute of Technology, Bombay, he cofounded Ola Cabs in 2010 and currently also helms the ride-hailing major. Recently, he also jumped into the GenAI space with his newest venture Krutrim.

Next on the executive ladder is Harish Abichandani, who joined the EV startup as its chief financial officer (CFO) in December 2023. Another key managerial personnel (KMP) at Ola Electric is Pramendra Tomar, who currently serves as the startup’s company secretary and compliance officer. 

Both Abichandani and Tomar worked in various capacities at Ola Cabs’ parent ANI Technologies before joining the EV manufacturer. 

Other senior managerial personnel include Anshul Khandelwal, who is the chief marketing officer at subsidiary Ola Electric Technologies, while Hyun Shik Park is the chief operations officer of the startup’s another arm – Ola Cell Technologies. 

Meanwhile, Ola Electric also said that it saw five changes at the C-Suite executive level in 2023, including that of CFO and company secretary. While the startup did not explicitly state reasons for the change, the rejig was reportedly attributed to a new leadership taking charge of the company as it gears up for the IPO.

The startup also continues to be plagued by high employee attrition. The DRHP mentioned that Ola Electric’s employee attrition rate stood at 47.48% in the fiscal year ended March 2023. 

“Our employee attrition rate was 42.06% and 47.48% in the seven-month period ended October 31, 2023 (on an annualised basis) and Fiscal 2023, respectively,” read the draft prospectus. 

Despite these issues, Ola Electric appears well poised to leverage its full-fledged omnichannel distribution network, comprising 935 experience centres, including 414 service centres, at the end of October 2023, to increase its share in the Indian EV market.

Ola Electric has also been clocking healthy growth in two-wheeler registrations, which grew more than 14% month-on-month (MoM) to 27,331 units in November 2023 from 23,821 units in October.

Following the filing of the DRHP, all eyes would now be on SEBI’s approval. Ola Electric’s IPO is expected to be among the most awaited new-age tech IPOs next year.

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It’s been a busy year for Bhavish Aggarwal and 2024 promises to be nothing less. With Ola Electric filing for its IPO on the cusp of the new year, Aggarwal is in for a nervous few months and lots of twists and turns ahead.

Ola Electric’s INR 5,500 Cr+ IPO, coming just seven years after its incorporation, is not just going to be crucial for Aggarwal, but also a test for India’s electric vehicle market. Interestingly, Ola Electric is looking to go public at a time when India’s EV ecosystem has just begun to find its feet. It’s also the first auto sector listing in two decades.

Despite doubts about how quickly the EV market can grow, the stage is set for Ola Electric to be the first Indian EV startup to go public, and it’s now time to look ahead. The big question for Ola Electric and Aggarwal will be whether public markets will embrace EVs and a new-age company in a sector led by giants.

But for now, we can of course read between the lines of Ola Electric’s pre-IPO filings to see where the EV giant stands today. But first, here are our top stories from the newsroom this week:

• Bhavish Aggarwal’s Other Big Bet: At a time when the LLM fight seems to be intensifying worldwide and in India, Aggarwal-led Krutrim aspires to develop AI-centred cloud infrastructure and more. Here’s our deep-dive
• The Big VC Rejig: Partner exits, venture capital firms pulling out of India, rebranding and separation of VC structures and new fund managers coming into the picture — we recap a troubled year for India’s investor ecosystem
• PhonePe’s Billion-Dollar Year: PhonePe built a war chest in early 2023 and soon after came a flurry of new products that have changed the company considerably, as it steps into 2024

Ola Electric IPO In A Nutshell

Firstly, let’s look at the key details of the IPO itself. The public issue comprises a fresh issue of INR 5,500 Cr and reports indicate an offer-for-sale (OFS) component of INR 1,750 Cr for 9.5 Cr shares.

Aggarwal and major investors such as SoftBank, Temasek, Tiger Global, Alpha Wave, Tekne Capital and Matrix Partners are slated to offload their shares, with the founder and CEO leading the way here with half of the OFS section.

The EV unicorn plans to deploy the capital raised towards setting up its Ola Gigafactory project — targeting 100 GWh capacity for battery production at full scale —  to manufacture EVs, batteries and other components. Proceeds will also be utilised for research and product development, organic growth and general corporate purposes, including paying off some debt raised by Ola Electric.

Finally, the draft red herring prospectus (DRHP) made financial disclosures that Ola Electric reported a loss of INR 1,472 Cr in FY23, growing 1.87X from INR 784.1 Cr in the previous fiscal. Revenue from sales of EVs jumped more than 7X to INR 2,630 Cr in FY23 from INR 373.4 Cr in FY22.

The company also shed light on its financial numbers for the first quarter (Q1) of FY24 where loss stood at INR 267.1 Cr on an operating revenue of INR 1,242.7 Cr. So, essentially, Ola Electric has reached nearly half of its FY23 revenue in the first quarter itself.

That is significant growth for a company that’s just over two years into actually starting its OEM business by shipping units. How exactly has Ola Electric managed this?

What Can Ola Count On?

The company started with two models in 2021 and currently has a portfolio of five scooter models, which it retails through the Ola Cab app, dealers and experience centres.

As per the DRHP, the company operates a full-fledged omnichannel distribution network that comprises 935 experience centres, including 414 service centres, as of October 2023.

In October, Ola Electric also raised a mammoth INR 3,200 Cr funding round, in a mix of equity and debt, that saw participation from Temasek, SBI and others. This is the capital it is deploying to ramp up sales in 2023.

EV two-wheeler registrations have been seeing a solid growth momentum for the last few months, and rose 14% month-on-month (MoM) in November to cross the 85,000 units mark. Ola Electric made the most of the festive season rush for new EV two-wheelers and continued to lead the market by a distance. Its scooter registrations jumped over 14% MoM to 27,331 units in November 2023 from 23,821 units in October.

Besides the festive season, the high demand for Ola Electric scooters comes from its new product offerings. Ola Electric launched a new S1X model in three variants in August this year, with deliveries beginning in mid-September.

Further, Ola Electric tied up with Ola Cabs and brought its EVs into the ride-hailing arena.

As per Ola rider partners that Inc42 spoke to, the company is offering these bikes at an upfront security deposit of INR 5,000 (as of early December) and there are no other costs involved for the rider partners. This model, which opens up a new channel for Ola Electric, is also expected to play a big role in the surge in registrations and potential sales in the months to come.

These are all positives for the company in the crucial run-up to the public listing when its bankers would pitch the model to potential investors.

But in balance, the sales boom for Ola Electric masks many of the pain points that industry experts have raised in the past. Beyond this, the DRHP also includes some of Ola Electric’s admissions of risk factors.

What Are The Red Flags?

For one, the DRHP also gave an insight into the risks of growing operating losses in the near term, adding that it may face significant delays in setting up its Gigafactory due to the uncertain timelines around key government approvals. Any delay would result in rising costs for the company in the near future.

There is also the risk that the company is unable to achieve the level of automation and precision required for cell manufacturing, the DRHP highlighted.

As we had reported in the past, Ola Electric currently has a production capacity of up to 2 Mn scooters annually. It plans to increase this capacity to 10 Mn scooters per year. However, last year the company sold just over 155K scooters.

Speaking to Inc42 earlier, Dr Deb Mukherji, the former MD of Omega Seiki Mobility, said that Indian EV two-wheeler penetration is far too low and Ola Electric’s projections seem too bullish, unless the company expands to international sales.

“India hardly consumes 6 Mn scooters in total. Even if we assume a 50% conversion to EVs, the figures claimed by Ola Electric simply don’t add up,” Mukherji had said then.

There’s another potential risk for Ola Electric in the long run.

The fire incident involving Ola S1 Pro scooters in Pune last year led to Ola Electric paying a fine of INR 15 Lakh. Whether the company is likely to face a similar fine in the future is uncertain, but there have been other reports of safety incidents since last year, which may still be investigated.

After commencing deliveries in December 2021, the company has allocated INR 68 Cr for warranty expenses as of June 30, 2023, increasing from INR 44 Cr and INR 12 Cr as of March 2023 and March 2022, respectively.

Ola Electric is yet to complete a full warranty cycle since the policy covers three years, and the company says it has only seen a limited number of claims for the scooters it has sold. The key here would be to ensure high-quality production and high safety standards, where the EV market is yet to prove itself.

Will Markets Ride On Ola Electric?

While Ola Electric has joined a growing list of Indian startups looking to list on the bourses in 2024, it is pertinent to see what the market is looking for right now.  It’s widely expected that the bearish sentiment of the past couple of years will subside in mid-2024. That could be fortuitous for Ola Electric given that it would potentially only list after this period.

Even though investor sentiments might improve, there is still a risk for new-age tech companies, given that most have weak fundamentals.

Ola Electric’s losses don’t paint the most accurate picture either. As seen in our graphic above, the company currently has negative cash flows to the tune of nearly INR 885 Cr in FY22.

This is going to be a major sticking point for investors. Plus, there will be more questions about the valuation given that the company is eyeing a potential post-listing valuation of $7 Bn (more than 2X its current private valuation).

Investors are likely to ask themselves if it is worth investing in Ola Electric at the IPO stage or they should wait for the valuation to become less rich. Of course, valuation will depend on the IPO pricing.

In the past, massive IPOs such as Paytm, Zomato and Nykaa saw big pressure on their valuations in the early days. While Zomato has turned its course with back-to-back profitable quarters, Paytm and Nykaa are still trying to grow into their IPO valuations.

“There are two kinds of companies that can pull off massive IPOs. One they have really great fundamentals, and two, they have very charismatic promoters. Right now, Ola Electric is in the second category, so investors will look into Bhavish Aggarwal’s capabilities and leadership as a key success factor,” said a Delhi-based cofounder of a VC firm, adding that the EV boom should reduce some of the burden on the CEO.

EV companies could potentially attract higher valuations given that technology is a constant growth area. Plus, investors are likely to be attracted to the fact that this is the only EV company in the market, and positive EV policy changes will give them a big upside on the stock.

But IPO pricing will be key. Many public market investors are reading through the fact that venture capitalists pay a premium price, knowing they are investing for the future. But public market investors think relatively short-term.

Substantial revenues are no guarantee when it comes to retaining investors’ faith, especially when cash flow is poor. Bottom-line profitability and consistent financial reporting are the only true metrics that unlock this faith.

Ola Electric has just kick-started its journey and it has serious momentum, and while it does have some experience dealing with questions about range anxiety in EVs, does it have enough charge to prevent investor anxiety?

Wrapping Up 2023 And Looking Ahead To 2024 

• Next Big Things In Gaming: As RMG fades into the background, the gaming sector is anticipated to witness springtime for mid-core and casual gaming studios in 2024. But there’s a lot more too
• 2023’s Newsmakers: Which personalities, founders and leaders drove prominent themes and trends in Indian tech this past year. Here are the newsmakers of the year gone by
• Will 2024 Prove IPO Friendly? Considering the current bull run in the domestic equity market and a healthy pipeline of startups aiming to go public, the year 2024 is expected to see a sharp increase in new-age tech IPOs
• Climate Tech Outlook: Despite policies in place to support climate tech and given India’s net zero goals, the sector is yet to show the impact that was expected. Will 2024 change the game?

Sunday Roundup: Startup Funding, Tech Stocks & More

• Funding Picks Up: Indian startups raised $349 Mn in funding across 25 deals in the past seven days, a jump of 34% week-on-week
• Big Loss For slice: The fintech unicorn saw its loss surge to INR 405.8 Cr in FY23, even as it is looking to merge with loss-making North East Small Finance Bank
• BCCI Vs BYJU’S: The cash-strapped edtech giant assured the NCLT about its ‘good health’ in relation to the dues recovery case filed by BCCI, despite its losses reportedly growing to INR 8,200 Cr+ in FY22

• Awfis Joins IPO Parade: Coworking startup Awfis, which counts VC giant Peak XV Partners as a promoter, has filed its DRHP ahead of its potential INR 160 Cr+ IPO

We’ll be back next week with our last weekly roundup of 2023.

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

Correction Note | December 26, 2023; 12 Noon

• An earlier version of this story included a graphic with erroneous figures about Ola’s net loss from operating activities. The error has now been rectified

The post Ola Electric Charges Up For IPO  appeared first on Inc42 Media.

Bhavish Aggarwal-led Ola Electric Mobility has filed its draft red herring prospectus (DRHP) with the market regulator Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) to raise INR 5,500 Cr by issuing new shares. 

Besides this, Ola’s existing investors, including Agarwal himself, will participate in a massive offer-for-sale (OFS) component of the IPO, which comprises over 10 Cr equity shares.

As per the latest financials, in the first three months of FY24, which includes April, May and June, Ola Electric reported sales of INR 1,242.7 Cr, almost achieving half the revenue that the Bengaluru-based startup reported in FY23.

Between April 1, 2022 and March 31, 2023 i.e. FY23, Ola Electric’s sales were at INR 2,630.9 Cr, a 605% increase from INR 373 Cr in FY22. This impressive growth could be attributed to the startup’s strong electric sales in 2022.

It is pertinent to mention here that the startup’s primary source of revenue is earned by two-wheelers sales.

Including other income, the EV unicorn has reported a total revenue of INR 1,278.6 Cr in the first quarter of FY24. The startup’s total income in FY23 stood at INR 2,782.6 Cr as against INR 456.2 Cr in the previous fiscal year.

In the first quarter (Q1) of FY24, Ola Electric’s losses stood at INR 268 Cr. In FY23, the startup reported a net loss of INR 1,471.6 Cr, an 88% increase from INR 783.4 Cr in the previous fiscal year.

Where Did Ola Electric Spend?

Ola Electric, in the first three months of FY24, reported a total expenditure of INR 1,460.7 Cr. In FY23, its expenses stood at INR 3,883.3 Cr, a 231% increase from INR 1,173.8 Cr in FY22.

• Procurement Cost: Being an EV manufacturer, Ola Electric’s major expense was the procurement of materials required for building its scooters. In the first three months of FY24, the startup had spent INR 1,109.4 Cr. This is almost 76% of the total expenditure. In FY23, it spent INR 2,570.4 Cr for procurement, a 434% increase from INR 480.9 Cr in the previous fiscal year.
• Employee Benefit Expenses: Between April and June this year, Ola Electric spent INR 94.3 Cr to pay employees their salaries. In FY23, the firm’s employee benefit expenses stood at INR 426.7 Cr, a 51% increase from INR 282.4 Cr in the previous year.
• Advertising Expenses: Ola Electric spent INR 13.1 Cr for advertising and promotional activities in the first three months of FY24. The startup spent INR 61.4 Cr for marketing in FY23, a 24% increase from INR 49.4 Cr in the previous year. 

Founded in 2017, Ola Electric entered the celebrated unicorn club within two years after raising $250 Mn from Masayoshi Son-led SoftBank. In October this year, the company raised a funding of INR 3,200 Cr ($384 Mn), which was a mix of equity and debt. While Temasek led the equity part, the debt was led by the State Bank of India.

To date, the EV unicorn has raised close to a billion dollars in funding and counts backers like Tiger Global, Matrix Partners, Alpha Wave and SoftBank, among others.

In the EV space, Ola Electric competes against the likes of Ather, Bounce Infinity, Hero, Revolt, TVS, Okinawa, among others.

The post Ola Electric Clocks INR 1,242.7 Cr In Q1 FY24 Sales, Nearly 50% Of FY23 Revenue appeared first on Inc42 Media.

Ola Electric’s promoter entity, ANI Technologies, is under the scanner of the Enforcement Directorate (ED) in connection with a copyright infringement case involving the music company Lahari.

The development came to light in the draft red herring prospectus (DRHP) filed by Ola Electric with the market regulator SEBI. ANI Technologies is the parent of Ola Cabs. 

As per information shared in the DRHP, the music company had filed an FIR against ANI Technologies and Ankit Bhatti (Ola cofounder, left in 2019) for playing songs on the ‘Ola Play’ devices without a valid license. However, the two companies eventually entered into an agreement in August 2022 to settle the matter. 

Subsequently, ANI Technologies filed a joint application with Lahari as well as a petition under Section 482 of the Code of Criminal Procedure, 1973 before the Karnataka High Court (HC) to quash the FIR. The matter is currently pending before the HC.

However, the matter brought ED sleuths to the company’s doorsteps. The agency, in early December 2023, issued summons to Ola Electric’s promoter entity (ANI Technologies) under provisions of the PMLA, 2002, seeking information and documents pertaining to copyright licenses owned by ANI. 

As per the IPO papers, the ED also sought details of the settlement made by the company with Lahari in connection with the FIR.

Eventually, the company submitted the information to the Directorate in a reply on December 13. Almost a week later, the agency issued another summons seeking information pertaining to movable and immovable properties in the name of ANI and the ongoing disputes between the two parties. 

As per latest information, ANI is in the process of furnishing a reply to the data sought by the Directorate in compliance with the summons. 

Apart from this, Ola Electric has been dragged to consumer grievance redressal commissions in connection with as many as 169 cases filed by its users. These cases span non-delivery of EVs, defective deliveries, cancellation of purchase orders, improper servicing, among others. 

Aggrieved customers have sought damages to the tune of INR 4.47 Cr from the EV maker.

“… there are 189 such matters against us involving an aggregate amount of INR 44.77 Mn, to the extent quantifiable. These matters are presently pending at various stages of adjudication,” added the DRHP. 

The original equipment manufacturer’s (OEM’s) non-executive director, Krishnamurthy Venugopala Tenneti, is also in dock for allegedly dishonouring cheques, amounting to INR 1.04 Cr, issued by him in his capacity as a non-executive director of a different company. 

The revelations are part of Ola Electric’s much awaited DRHP which sets the stage for the company’s public listing. The IPO comprises a fresh issue of INR 5,500 Cr and an on-off-for-sale (OFS) component of 9.51 Cr shares. 

Founder and CEO Bhavish Aggarwal will offload 4.7 Cr shares in the OFS, accounting for half of the total. On the other hand, names such as SoftBank, Tiger Global and Alpha Wave Ventures have also lined up to pare their shareholding in the company. 

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Electric vehicle (EV) maker Ola Electric has filed its draft red herring prospectus with the markets regulator Securities and Exchange Board of India (SEBI) for an INR 7,250 Cr initial public offering (IPO). 

As per the DRHP, the IPO comprises a fresh issue of INR 5,500 Cr. However, as per a  Moneycontrol report, the IPO will comprise an offer-for-sale (OFS) component of INR 1,750 Cr. In total, the public issue will comprise an OFS component of up to 9.5.1 Cr shares. 

“The issue is being made through the book-building process, wherein not less than 75% of the issue shall be available for allocation on a proportionate basis to qualified institutional buyers, not more than 15% of the issue… to non-institutional bidders, and not more than 10%.. to retail individual bidders,” the company said in a statement.

Cofounder CEO Bhavish Aggarwal and major investors such as Softbank, Temasek, Tiger Global, Alpha Wave, Tekne Capital, and Matrix Partners are slated to participate in the OFS. The company will be listed on the BSE and NSE.

Aggarwal, who is also the promoter, will account for more than half of the total OFS corpus and will offload 4.7 Cr shares during the IPO. Japanese tech investor SoftBank will offload 2.38 Cr shares in the company, which it acquired for INR 50.94 apiece. 

Promoter group Indus Trust will sell another 41.7 Lakh shares while Alpha Ventures and Tiger Global’s Internet Fund III will dump 37.82 Lakh and 63.6 Lakh shares, respectively. 

Along similar lines, Matrix Partners India will sell 37.27 Lakh shares and Tekne Capital will offload 9.75 Lakh shares in the EV maker. With this, the stage has been set for Ola Electric to be the first Indian EV startup to go public.

As per the DRHP, the proceeds from the fresh issue will be deployed for capital expenditure that will be incurred towards the setting up of the Ola Gigafactory project. It will also be utilised for investment into research and product development, organic growth initiatives and general corporate purposes.

The proceeds will also go towards repayment or prepayment of the indebtedness incurred by the subsidiary Ola Electric Technologies. 

As per the draft document, the original equipment manufacturer (OEM) reported losses to the tune of INR 1,472 Cr in the fiscal year ended March 2023, growing 1.87X from INR 784.1 Cr in the previous fiscal year. 

During the same period, revenues from operations jumped more than 7X YoY to INR 2,630 Cr FY23 as against INR 373.4 Cr in FY22. 

The company also shed light on its financial numbers for the first quarter (Q1) of FY24 where losses stood at INR 267.1 Cr against an operating revenue of INR 1,242.7 Cr during the period. 

Kotak Mahindra Capital, Citigroup Global Markets India, BofA Securities India, Goldman Sachs (India) Securities, Axis Capital, ICICI Securities, SBI Capital Markets and BOB Capital Markets have been appointed as the bookrunners for the IPO. 

The DRHP also gave an insight into key internal risks faced by the company. Ola Electric conceded that it may continue to incur operating losses in the near term, adding that it may face significant delays in setting up its gigafactory. 

“We may face significant delays in setting up of the factory, including procurement and successful integration of local and imported machinery, shortcomings in the operation and maintenance of the factory and delays or failure in receipt of key government approvals. We may also be unable to achieve the level of automation and precision required for cell manufacturing,” the DRHP highlighted. 

It also came to the fore in the document that the fire incident, involving Ola S1 Pro scooters, in Pune in March last year led to the Ministry of Road Transport and Highways (MoRTH) imposing a fine of INR 15 Lakh on the company, which has since been paid.

A brainchild of Ola Cabs cofounder Bhavish Aggarwal, Ola Electric is an EV manufacturer that currently retails a portfolio of five scooter models. As per the DRHP, the company operates a full-fledged omnichannel distribution network that comprises 935 experience centres, including 414 service centres, at the end of October 2023. 

The filing of the DRHP comes a month after the EV juggernaut converted into a public company and changed its name to Ola Electric Mobility Limited. In October, Ola Electric also raised a mammoth INR 3,200 Cr funding round, in a mix of equity and debt, that saw participation from the likes of Temasek and the State Bank of India.

The markets regulator will now take a call on the company’s DRHP and will mull approval for the much-awaited public listing. 

With this, Ola Electric has joined a growing list of Indian startups looking to list on the bourses in 2024. As market headwinds and investor sentiments improve, new-age tech companies are bullish on listing on the bourses and it is this positive trend that Ola Electric aims to capitalise on. 

However, it remains to be seen whether the startup eventually moves ahead with the much-awaited IPO even as markets intently keep an eye on the same.

The post It’s Finally Happening! EV Major Ola Electric Files Papers For Its Mega INR 5,500 Cr IPO appeared first on Inc42 Media.

Traveltech major EaseMyTrip has acquired a non-controlling stake of about 13% in Eco Hotels and Resorts Limited in a share swap deal to enter the hotel and hospitality industry.

“…the company’s investment in equity shares of Eco Hotels India Private Limited is swapped with equity shares of Eco Hotels and Resorts Limited in the ratio of 1:1 and the company has acquired 40,00,000 equity shares of INR 10 each of Eco Hotels and Resorts Limited, issued on preferential basis,” said EaseMyTrip in a statement.

The startup said that the primary objective of the strategic investment in Eco Hotels is to acquire a minority interest and promote environmentally friendly practices within the hospitality sector. 

All the hotels operated by Eco Hotels will be carbon net zero hotels, claimed EaseMyTrip.

Eco Hotels and Resorts Limited is a BSE-listed company promoted by Eco Hotels UK PLC. Eco Hotels aims to become a leading owner, developer and asset manager of three-star premium and economy brands in the BRICS and N11 (Next 11) economies, with India being the primary focus.

The hospitality company currently claims to have completed the development of two brands, with one prototype Ecolodge operating in Kochi at Kerala.

Commenting on the acquisition, Nishant Pitti, cofounder and CEO of EaseMyTrip, said that the strategic decision reflects the online travel aggregator’s commitment to sustainable and responsible business practices. 

“Our choice to invest in stakes aligns with our vision to contribute positively to the growth of eco-friendly and green hotels. This investment marks another milestone in our journey to diversify our portfolio and enhance the travel experiences we offer to our customers,” said Pitti.

It is pertinent to mention that EaseMyTrip has acquired multiple companies over the last two years as it looks to expand its offerings and diversify its portfolio.

Shares of EaseMyTrip were trading marginally higher at INR 38.32 on the BSE by 2.45 PM IST.

Meanwhile, V K Tripathi, executive chairman of Eco Hotels and Resorts, said on the stake acquisition, “This is not just a business decision; it’s a calculative move towards expanding our horizons and presenting guests with an elevated, ecoconscious, and luxurious experience that aligns seamlessly with our commitment to a greener and more sustainable future.”

EaseMyTrip reported a 66% year-on-year (YoY) jump in its consolidated net profit to INR 47 Cr in Q2 FY24 on an operating revenue of INR 142 Cr, which jumped 31% YoY.

The post EaseMyTrip Forays Into Hospitality Space With 13% Stake Acquisition In Eco Hotels and Resorts appeared first on Inc42 Media.

Delhi-NCR-based electric mobility startup BluSmart has raised $24 Mn (INR 200 Cr) in a fresh equity funding round, which saw participation and over-subscription from its existing investors, founders and leadership team.

The startup will use the capital to build large-scale EV charging superhubs enabling the expansion of its electric ride-hailing service.

Founded in 2019, BluSmart offers EV ride-hailing services and charging infrastructure across Delhi NCR, Bengaluru and other megacities in India. The startup currently operates over 5,500 EVs and aims to increase the fleet size to 8,000 across Delhi-NCR and Bengaluru by next year.

The company claims to have completed more than 10 Mn rides so far, travelling more than 330 Mn zero-carbon Kms in the process.

BluSmart also owns and operates over 4,000 EV chargers, across its 34 EV charging superhubs.

“It has been a landmark year for BluSmart with great achievements like the historic milestone of completion of 10 million electric trips and key industry recognitions. We will continue to expand our brand promise of zero ride denials, on-time service and clean mobility to more geographies,” said Anmol Singh Jaggi, cofounder and CEO of BluSmart.

Tushar Garg, CEO of BluSmart Charging business said that EV Charging Infrastructure is the biggest bottleneck for large-scale EV adoption and is also the single largest opportunity.
“Cities have challenges with finite prime locations and a lack of adequate power load. BluSmart is building large EV charging superhubs at prime locations across Delhi-NCR and Bengaluru,” he added.

In April this year, BluSmart raised $42 Mn in a funding round. The startup counts Alteria Capital, BlackSoil, Stride Ventures, Mumbai Angels, BP Ventures and LetsVenture among its investors.

The startup competes with the likes of BOLT, Ather Energy, Cell Propulsion, CHARGE+ZONE and Chargeup in the electric mobility space.

Indian EV startups offer services such as sustainable mobility, energy infrastructure, commercial mobility and battery management system, among others, to the general masses and enterprises. Besides, they are also helping reduce carbon emissions and offering a cheaper alternative to fossil fuels. As a result, the space has been gaining a lot of traction from the investors.

The post BluSmart Nets $24 Mn In Fresh Funding To Build EV Charging Superhubs appeared first on Inc42 Media.

Reiterating her stance on 28% GST on the online gaming sector, Finance Minister Nirmala Sitharaman on Tuesday (December 19) said that the valuation rules for levying the tax on entry level bets are prospective in nature. 

“28% is the tax and as to who it will apply to and on whom the incidence will fall is clearly explained…The valuation rule to exclude winnings is prospective. So, I hope there is no confusion on that,” said Sitharaman during a discussion on the CGST (Second Amendment) Bill in Lok Sabha.

The FM made the comments in response  to a query from Biju Janata Dal Member of Parliament (MP) Sarmistha Sethi.

Citing an example, the FM said that if a user places a bet of INR 1,000, a GST of 28% would be levied. However, if the user wins INR 300 and then places another bet of INR 1,300, including the winning amount, then the GST would not be levied on the INR 300 winning amount which has been redeployed.

On the other hand, if a user loses the original INR 1,000 amount and places a new bet, then the new amount would be considered a fresh bet and would attract 28% GST.

At the centre of this row is the GST Council’s decision, in August this year, that said that 28% GST is applicable on online gaming. 

Eventually, the government notified amendments in law and the new changes came into effect on October 1. But the bone of contention appears to be the tug of war over the supposed retrospective effect of the rule. 

Since the promulgation of the new law pertaining to GST on online gaming, enforcement agencies have sent a flurry of notices to online gaming platforms for alleged tax evasion. 

The Centre recently informed the Parliament that the Directorate General of GST Intelligence has issued notices to the tune of INR 1.12 Lakh Cr to multiple online gaming companies for alleged short payment of taxes.

Meanwhile, the 28% GST has triggered an adverse domino effect on the homegrown ecosystem. When the new tax was levied, industry stakeholders had warned that the move could lead to job losses and put a spanner in the works for the budding ecosystem. 

Since then, startups such as Fantok, Quizzy, OWN have temporarily shut operations while big names such Mobile Premier League and Hike have laid off employees in droves. There have also been a barrage of legal cases filed by online gaming firms such as Games24x7 and Head Digital Works challenging the respective GST notices issued to them by the enforcement agencies. 

The regulatory flux has also resulted in the drying up of capital for online gaming firms, leading to layoffs and shutting down of ailing verticals to extend runway and conserve cash. Amid the tussle, the Indian government is mulling extending an olive branch to the ecosystem and is considering setting up a Group of Ministers (GoM) to address issues related to the industry.

The post Valuation Rules For Levying 28% GST On Online Gaming Prospective In Nature: FM Sitharaman appeared first on Inc42 Media.

At an event in Delhi in June this year, the CEO of OpenAI, Sam Altman, was asked if a young team of Indian engineers, loaded with $10 Mn, could build an LLM model similar to that of OpenAI. 

Responding to the question, Altman said that it would be “hopeless to compete with ‘us’ (OpenAI) on training foundation models [and] you shouldn’t try”.

Altman’s comments triggered an immediate backlash and stirred discontent among the Indian tech community. 

While the comment of OpenAI’s reinstated CEO is now history, it has started a catalytic reaction of sorts, as a wave of Indian founders is now seen floating projects dedicated to building foundational LLMs for India and the world.

It is imperative to mention that right after Altman’s infamous remarks, Sridhar Vembu, the founder of Zoho, announced plans to create a proprietary LLM with capabilities encompassing summarization, paraphrasing, and adaptability to novel tasks. Meanwhile, Tech Mahindra is working on Project Indus, an open-source Indic language-based LLM. Similarly, numerous AI startups, including Sarvam AI, SoketLabs, CoRover.ai, are actively engaged in developing LLM models with a focus on the Indic languages.

Adding to this wave of AI-centric innovation, Bhavish Aggarwal, the founder of Ola, has launched an AI company, Krutrim, which claims to have its focus set on constructing foundational LLMs for such languages.

As of now, Krutrim is proficient in understanding and processing up to 22 Indic languages with the ability to write and speak in 10 languages, as per Aggarwal. 

At a time when the LLM fight seems to be intensifying worldwide and in India, Aggarwal-led Krutrim wants to be a step ahead in the AI game. It aspires to develop the entire cloud infrastructure and silicon chips, excluding the fabrication aspect. 

Before we delve into Krutrim’s DNA, let’s understand the startup’s ownership and funding status.

Krutrim SI Designs operates as an independent entity and pursues funding autonomously. It has secured an undisclosed amount of funding from investors, including Aggarwal.  

Although Aggarwal did not disclose its existing shareholding status, he confirmed that the company has already raised some funding. As per reports, the newly incorporated AI startup had raised $24 Mn in debt from Matrix Partners in October this year.

Meanwhile, sources close to the company informed Inc42 that Krutrim was in the process of securing another round of funds, with the announcement expected before March 2024.

Now, let’s steal a glance at the core of Krutrim’s DNA and understand how it could be the answer to the GPTs of the world in India.

Krutrim Wants To Build An India-Centric AI

Serial entrepreneur Aggarwal, who founded Ola Cabs in 2010 and Ola Electric in 2017, asserted that many popular international LLMs lack true representation of the Indian context and data.  

“If they genuinely want to adhere to the democratic values, they must ensure that the data is representative of the population scale. About 20% of the data in these models should be Indian, reflecting democratic values. Unfortunately, this is not the case, leading to outputs that present a caricature of India, even in something as basic as an Indian woman’s saree,” Aggarwal said.

At Krutrim, the intention is to build multimodal models, particularly image generation models. “While we are not there yet, we initially focussed on text and language models. We are actively seeking partnerships within the ecosystem to bring our models to the market and collaborate in creating Indian data sources for these other modalities,” Aggarwal added.

Additionally, Aggarwal emphasised that most Western AI solutions not only lack accuracy in the Indian context but are also prohibitively expensive. Krutrim aims to address these challenges by developing full-stack AI solutions.

The startup is set to accomplish several ambitious goals, encompassing foundational LLMs, AI cloud infrastructure, and the in-house development and manufacturing of AI-optimised silicon chips.

The head of strategy at Ola Electric, Ravi Jain, emphasised that the company is actively designing and developing in-house technologies such as a submersion cooling system for cloud infrastructure and chip designs. 

“Krutrim’s innovations will simplify and streamline everyday interactions across various socio-economic strata in India. For instance, tasks like reserving a table could become more straightforward. In the future, Krutrim aims to manage extensive customer support for emerging startups and businesses, providing real-time information and aiding in product selection, thereby impacting even rural economies significantly,” Jain said.

The base LLM of Krutrim is trained on an impressive 2 Tn tokens, representing the largest dataset of Indian data used in training to date, according to Jain. 

He added that Krutrim is designed to strike the right balance between performance and price, making it suitable for powering a variety of day-to-day applications. Additionally, the company is developing Krutrim Pro, a large multimodal model with advanced problem-solving and task execution capabilities, slated for launch in the next quarter.

Krutrim is set to be available in beta version as an API for enterprises and developers starting January 2024, facilitating the creation of AI-driven assistants capable of conversing in multiple Indian languages. Krutrim Pro is anticipated to be available in Q4 FY 2024.

Aggarwal envisions Krutrim’s superior linguistic skills as a valuable tool across diverse domains, ranging from education to business communications. The platform incorporates the latest techniques in safe AI to mitigate inappropriate responses. 

It is also actively working on developing AI infrastructure, including indigenous data centres, server computing, edge computing, and supercomputers, with production scheduled for mid-2024 for prototypes and a rollout production roadmap by the end of 2025.

An early access programme is currently underway, until January 2024, with a simple sign-up page on the website. The open release is scheduled for January 2024, and open APIs will be accessible to all developers by February 2024. Ola plans to integrate Krutrim across its group companies for sales, service, support, and other operational processes.

Krutrim: The Ethical AI?

The startup has been launched at a time when cases of misinformation and deepfakes are on the rise, with GenAI at the centre of the ruckus. 

Aggarwal emphasised that the current safety debates around AI are heavily influenced by Western concepts. While Krutrim is being designed with safety in mind, he asserted that “the approach to safety will be grounded in an Indian perspective.”

The table below provides a comparative overview of how ChatGPT and Krutrim approach ethical considerations and biases. However, before that, it is worth noting that Krutim is yet to be launched in beta mode while ChatGPT is fully functional. Also, we are using the specs of ChatGPT 3.5.

Meanwhile, life seems to have come full circle for the homegrown GenAI ecosystem. Within months of Altman’s controversial ‘don’t even try’ statement, the country appears to be at the cusp of an AI revolution but the path ahead appears to be a long one. 

Having joined the GenAI fray a little late, Krutrim will now have to spar with domestic players like Bharat GPT by CoRover.ai, Pragna by Soket Labs, Tech Mahindra-backed Project Indus and Sarvam AI in India and foreign entities such as OpenAI’s ChatGPT, Google’s Bard and Elon Musk-backed Grok AI to secure its market share. 

According to Inc42’s “India’s Generative AI Startup Landscape, 2023” report, the country’s GenAI market is projected to surpass $17 Bn by 2030 from $1.1 Bn in 2023, growing at a CAGR of 48%.

With Krutrim, too, in the GenAI race, it remains to be seen who will emerge as the Indian AI juggernaut in the years to come, outpacing its Western counterparts.

The post Can Bhavish Aggarwal’s Krutrim Take On ChatGPT With Its GenAI For India Playbook? appeared first on Inc42 Media.

A division bench of Delhi High Court on Thursday (December 14) removed travel tech major MakeMyTrip’s injunction on Google and Booking.com to use registered trademarks as ‘keywords’ on the Google Ads Programme.

“Prima facie, we are unable to accept that MMT can claim any such right on the basis of its rights under the Trademark Act,” the order said.

The court also said that considering Booking.com is also a well-known platform offering travel services, an internet user is unlikely to be misled in any manner.

For the uninitiated, MakeMyTrip filed a complaint against Google and Booking.com because whenever a user searches for MakeMyTrip on Google, the first name that comes is of its competitor Booking.com.

MakeMyTrip issued a notice to Booking.com for the first time in 2019 to cease bidding on the keyword ‘makemytrip’  through the Google Ads Programme. Following this, another cease-and-desist notice was issued to Booking.com in August 2020 for the same.

The traveltech startup then filed a copyright infringement case against Booking.com and Google, alleging that the former had been illegally bidding on the trademarks associated with MakeMyTrip in Google Ads, which resulted in traffic and business being diverted to Booking.com from MakeMyTrip.

In April 2022, a single-judge bench of Justice Prathibha M. Singh deemed the use of MakeMyTrip’s trademark and its variations on Google Ads a passing off and ordered the search engine major to stop offering it as a keyword for bidding.

“In view of the facts, orders and legal position as discussed above, this court is prima facie of the opinion that the use of the plaintiff’s registered mark ‘MakeMyTrip’ on the Google Ads Programme as a keyword would amount to trademark infringement,” the court said.

However, in a recent decision taken by the High Court, this injunction is now removed. The bench held that  “there was nothing illegal in Google using the trademarks as keywords for display of advertisements if it did not result in any confusion or mislead internet users to believe that sponsored links or ads displayed were associated with the proprietors of the trademarks.”

Last month, the Delhi High Court also issued a restraining order against Dialmytrip, prohibiting the use of its name in connection with tours, travel, hospitality, and related services. This legal restriction follows a case initiated by MakeMyTrip, an online travel company, seeking an injunction against Dialmytrip to prevent the use of the name ‘Dialmytrip’ and the domain names ‘www.dialmytrip.com’ and ‘www.dmtgroup.in‘.

The post MakeMyTrip Trademark Case: Delhi HC Allows Google & Booking.com To Resume Adwords appeared first on Inc42 Media.

Bengaluru-based Exponent Energy, an energy tech startup which provides rapid 15-minute charging for EVs, has secured INR 220 Cr ($26.4 Mn) in its Series B funding round led by Fidelity-backed Eight Roads Ventures.

The funding round also saw participation from TDK Ventures and Exponent Energy’s existing investors including Lightspeed, YourNest VC, 3one4 Capital, AdvantEdge VC, and the family office of Dr. Pawan Munjal, executive chairman at Hero MotoCorp.

Speaking to Inc42 about the fresh fundraise, Arun Vinayak, cofounder and CEO of Exponent Energy, said that after finding its product-market fit, the startup is now looking to strengthen its manufacturing and business operations.

“Until now we did only three-wheeler cargo. In the coming year, we are going to use the same fundamental battery tech, leverage the same network and enter the three-wheeler passenger category. And we also have an intercity bus market that we are now going to tap in 2024,” said Vinayak.

He said that Exponent Energy’s battery tech for three-wheelers has reached past the product development stage and it now aims to scale the operations on both the business and manufacturing fronts. Meanwhile, its battery tech for ebus is still in the R&D phase, but the startup aims to use the fresh fund infusion to accelerate the R&D and bring the product to the market.

Founded in 2020 by former Ather Energy executives Arun Vinayak and Sanjay Byalal, Exponent Energy aimed to build a tech enablement platform that can help original equipment manufacturers (OEMs) across segments make EVs by solving the problem associated with long charging hours.

Its charging station is called ‘e^pump’, which transfers refrigerated water through its charging connector called ‘e^plug’ to prevent overheating during the rapid charging of its battery packs, ‘e^packs’. The startup currently has 30 charging stations spread across Bengaluru.

Besides increasing its ‘e^pump’ installations in Bengaluru, Exponent Energy is also looking at entering five other cities – Delhi, Chennai, Hyderabad, Mumbai, and Ahmedabad – in 2024.

Including the fresh infusion, Exponent Energy has so far raised $44.4 Mn.

What Makes Investors Take A Bet On Exponent Energy?

The investment in Exponent Energy marks the first investment by TDK Ventures and Eight Roads Ventures in India’s EV sector.

Exponent Energy will also collaborate with TDK Ventures to further reduce the cost structure of rapid charging tech. 

“We share the vision of expanding rapid charging accessibility at a reasonable cost, making electric mobility an option for everyone. This collaboration represents an exciting stride toward a more sustainable and electrified future,” said Nicolas Sauvage, president at TDK Ventures, in a media statement.

Speaking to Inc42 about investing in Exponent Energy, Aditya Systla, partner at Eight Roads Ventures, said the fund infusion comes in the backdrop of booming EV adoption in India and new developments in the three-wheeler cargo space. 

“Our belief is that the entire commercial vehicle segment… we are going to see a lot of them go electric. Adoption is fundamentally growing because of reasons including improved product quality, lower total cost of ownerships, and a bunch of government’s push in the form of subsidies,” said Systla, adding that these macro reasons drove Eight Roads Ventures to invest in the player catering to the broader EV space.

“Also, we wanted to play this horizontally, so we chose a battery play rather than a specific OEM. And within battery and charging, our belief is that rapid charging is the key unlock which is going to drive large-scale EV penetration of commercial vehicles,” he said.

Besides, Exponent Energy has built a very strong differentiated two-sided solution that offers rapid charging in 15 minutes as well as a high battery life warranty of 3,000 cycles for its EV batteries, added Systla.

The VC firm invested $10.5 Mn in this funding round.

In the coming months, Exponent Energy also aims to expand its existing manufacturing facility in Bengaluru and increase its total number of charging stations in the city to 100 by March next year.

In August last year, the startup raised $13 Mn in its Series A funding round led by Lightspeed after partnering with three-wheeler EV OEM Altigreen Propulsion Labs. Recently, the startup also announced a partnership with Chennai-based Murugappa Group, while more such announcements are upcoming.

Exponent Energy continues to work towards its target of catering to 25,000 EVs and a revenue of around INR 600 Cr by 2025.

The post EV Rapid Charging Startup Exponent Energy Bags $26.4 Mn From Eight Roads Ventures, Others appeared first on Inc42 Media.

Hospitality chain OYO, operated by Oravel Stays Pvt Ltd, has elevated deputy chief financial officer Rakesh Kumar to the position of chief financial officer to drive its finance and operational growth.

Currently, Kumar oversees critical financial functions, including business finance for all markets, treasury, controllership, shared services, financial and investor reporting, taxation and financial planning and analysis.

The announcement comes on the heels of OYO’s buyback of a portion of its Term Loan B (TLB), totalling INR 1,620 Cr. 

Over the years, Kumar’s contributions have expanded beyond the finance function. He has taken on various business partnering roles and has led

the transition of acquisitions within OYO including the two European organisations, Direct Booker and Bornholmske Feriehuse, the company said in a statement on Tuesday (December 12).

Prior joining to OYO, Rakesh worked with EY, contributing to various services, including statutory audits, tax audits, IFRS compliance and IPO-related work. His experience spans across startups, travel, hospitality, and media.

Additionally, OYO also added that Ankit Tandon, global chief business officer and CEO SEAME (South East Asia and Middle East), will take on additional responsibilities, overseeing investor relations, mergers and acquisitions, as well as financial planning and analysis functions.

“My journey with OYO has been marked by unique opportunities as well as interesting challenges. I appreciate the trust placed in me to navigate these complexities…,” said Kumar.

It is pertinent to note that Inc42 had earlier reported that OYO is betting big on onboarding and providing booking for premium hotels along with setting up its properties.

In September, OYO was on track to report its first ever profitable quarter in Q2 of the financial year 2023-24 (FY24), according to its founder and CEO Ritesh Agarwal.

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

The startup reported a 34% decrease in its net loss to INR 1,286.5 Cr in FY23 from INR 1,941.5 Cr, as expenses declined marginally despite growth in business. 

Earlier this year, OYO reduced its IPO size to $400-$600 Mn from $1.2 Bn earlier and filed its DRHP with the Securities and Exchange Board of India (SEBI) through the confidential pre-filing route. 

The post IPO-Bound OYO Elevates Rakesh Kumar To CFO Role appeared first on Inc42 Media.

Emobility startup Yulu saw its consolidated net loss widen 71% year-on-year (YoY) to INR 94.9 Cr in the financial year 2022-23 (FY23) as the company’s expenses jumped with the expansion of its battery swapping infra and increasing headcount.

The startup had managed to lower its loss in FY22 to INR 55.5 Cr on an operating revenue of INR 29 Cr. However, Yulu’s bottom line was hit in FY23 despite an almost 44% YoY jump in its operating revenue to INR 41.7 Cr.

Founded in 2017 by Amit Gupta, RK Misra, Naveen Dachuri and Hemant Gupta, Yulu provides emobility solutions in cities like Bengaluru, Mumbai, and Delhi NCR. It also offers an AI-enabled battery-as-a-service (BaaS) platform to its electric vehicle users.

The startup earns a majority of its operating revenue from the EVs provided on rent to daily commuters and last-mile delivery executives. The income from this major bucket increased almost 31% YoY to INR 38 Cr.

Yulu’s income from the supply of manpower services rose to INR 3.8 Cr in FY23 from a mere INR 9K in the previous year.

Including interest income and other non-operating income, Yulu’s total revenue stood at INR 46.6 Cr during the year under review as against INR 30.5 Cr in FY22.

Zooming Into Expenses

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

Cost of Operations: The cost of running its operations more than doubled to INR 31.9 Cr in the reported period from INR 12.7 Cr in FY22.

In that, battery charging cost jumped 730% YoY to INR 13.3 Cr. This increase was in line with the company’s expanding battery swapping infra. 

In September 2022, Yulu raised $82 Mn in its Series B funding round led by the US-based mobility technology company Magna International while also forging a partnership with the latter to expand its battery charging and swapping infra. At the time, Yulu said it was working on setting up 1,000 Yuma swapping stations for its EV users in the next 12 months.

On the other hand, the consumption of spares contributed INR 9.8 Cr to the expenses, which almost tripped YoY.

It must be noted here that Yulu also increased the number of vehicles in operations in FY23. It also launched two new vehicle models – Miracle GR and DeX GR – in February 2023. The other costs in this bucket include cost incurred in transporting vehicles, in repair and maintenance, and tech and infra.

Employee Cost: Yulu’s employee benefit expense was the single biggest contributor (over 48%) to its total expenses during the period. The spending in this bucket rose 65.6% to INR 67.5 Cr in FY23 from INR 43.1 Cr in the previous year.

In that, Yulu spent INR 55.3 Cr on salaries and wages as against INR 36.4 Cr in FY22.

The startup also spent INR 4.6 Cr towards ESOPs in the reported year, which increased from INR 2.5 Cr in FY22.

Depreciation & Amortisation Expense: Yulu posted a 14.5% YoY dip in its depreciation and amortisation expense in FY23 to INR 15.3 Cr.

Office Rent: Yulu’s expenditure on office rent grew over 48% YoY to INR 4.9 Cr.

It is pertinent to note that Yulu is further bolstering its operation this year. With last-mile delivery executives as its primary target group, the startup partnered with quick commerce delivery platform Zepto to expand in the hyperlocal delivery category in Bengaluru, Mumbai, Delhi, and Gurugram.

Recently, Yulu also expanded to the retail segment with the launch of new low-speed escooter Yulu Wynn, priced at INR 55,555.

The post Yulu’s FY23 Net Loss Widens 71% To INR 94.9 Cr As Business Expands appeared first on Inc42 Media.

Bhavish Aggarwal-led Ola Electric is reportedly planning to file its draft red herring prospectus (DRHP) in the next two weeks as it gears up to go public early next year.

The EV unicorn is adopting an aggressive retail strategy, such as product launches at discounted rates and price reductions on existing offerings, aiming to fortify its market share before going public, Mint reported.

Earlier this week, Ola Electric has slashed the price of its S1 X+ e-scooter by INR 20,000. The vehicle is now available at INR 89,999.This is a part of the company’s ‘December to Remember’ campaign to further accelerate sales.

The startup wants to file its draft share sale papers before December 20, aiming to precede the year-end holidays when bankers and financial market participants traditionally take a break. Moreover, it wants to ensure the initial public offering (IPO) happens before next year’s Lok Sabha elections.

Recently, Ola Electric converted into a public company. As per reports, the startup plans to raise $700 Mn and is looking to target a market capitalisation of $10 Bn through its IPO.

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

It has raised $998 Mn in total funding and counts Alpha Wave, DIG investment as among its other marquee investors.

Ola Electric’s net loss almost doubled to INR 1,472 Cr in the financial year ended March 2023 (FY23) from Rs INR 784.1 Cr in the previous fiscal year on the back of the company’s rising expenses.

The startup reported an EBITDA loss of INR 1,318 Cr in FY23 as its total expenses flared up to INR 3,383 Cr as compared to INR 1,240 Cr in FY22.

Electric two-wheeler registrations grew 14% month-on-month (MoM) in November to cross the 85,000 units mark on the back of high demand for top electric vehicle manufacturers during the festive season. Ola Electric retained the top spot with its e-scooter registrations jumping over 14% MoM to 27,331 units in the month.

The post Ola Electric To File IPO Papers Before December 20 appeared first on Inc42 Media.

Bhavish Aggarwal-led Ola Electric’s net loss almost doubled to INR 1,472 Cr in the financial year ended March 2023 (FY23) from Rs INR 784.1 Cr in the previous fiscal year on the back of the company’s rising expenses.

The IPO-bound startup reported an EBITDA loss of INR 1,318 Cr in FY23 as its total expenses flared up to INR 3,383 Cr as compared to INR 1,240 Cr in FY22, Moneycontrol reported, citing financial statements.

However, the company saw its consolidated revenue surge by 510% to reach INR 2,782 Cr in FY23.

The company, in a note to investors and the bankers, said that it is targeting an EBITDA profitability of INR 803 Cr in FY25. It has also added that its EBITDA loss will come down to INR 950 Cr in FY24.

Meanwhile, the startup aims to hit revenue of INR 4,655 Cr in FY24.

As per earlier filings, Ola Electric saw its net loss almost quadruple to INR 784.1 Cr in the financial year 2021-22 (FY22) from INR 199.2 Cr in FY21.

The startup generated INR 348.2 Cr through the sale of products in the financial year ending on March 31, 2022, while it earned INR 19.7 Cr through the sale of its services.

Ola Electric anticipates its sales volume to reach 3 Lakh in FY24 and further increase to 9 Lakh by FY25. In FY23, Ola sold 1.5 Lakh units of EVs.

Recently, Ola Electric has converted into a public company. The startup is looking at a public listing in 2024 and will now file its draft red herring prospectus (DRHP) with the market regulator, SEBI.

As per reports, the startup plans to raise $700 Mn and looking to target a market capitalisation of $10 Bn through its IPO.

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

It has raised $998 Mn in total funding and counts Alpha Wave, DIG investment as among its other marquee investors.

Electric two-wheeler registrations grew 14% month-on-month (MoM) in November to cross the 85,000 units mark on the back of high demand for top electric vehicle (EV) manufacturers during the festive season. Ola Electric retained the top spot with its e-scooter registrations jumping over 14% MoM to 27,331 units in the month.

The post IPO-Bound Ola Electric’s FY23 Net Loss Almost Doubles To INR 1,472 Cr On Surge In Expenses appeared first on Inc42 Media.

Ride-hailing major Ola Cabs is rolling out a new feature that will allow its customers to make UPI payments directly to the drivers via the app. 

The offering will go live in Bengaluru by the end of this week, and nationally by the end of December. The move is expected to alleviate the need to route the user to a third-party payment app and streamline the experience for the customers. 

“Revamping digital payments experience in Ola cab rides. You’ll be able to use UPI to pay the driver directly through the Ola app just like UPI is used daily,” Ola’s founder and chief executive officer Bhavish Aggarwal wrote on X, formerly Twitter, on November 30.

Users can create a UPI ID within the Ola app, link their bank accounts directly and make the payment without going into a third-party payment app. 

“All that’s required is for the user to key in their set UPI PIN after every ride for safe and secure transactions. With no hassle of entering card details, IFSC code or recharging a wallet, this aims at making payments easier for customers and is safe,” the ride-hailing unicorn wrote in a blog post.

Customers will also have the option of scanning the QR shown by the driver on the driver app. The move, as per the company, is expected to pave the way for more than 2 Mn Ola customers to join the UPI platform ‘overnight’.

It is pertinent to note that the new ride-hailing entrant Namma Yatri also has a similar feature powered by Juspay, which lets users pay directly to the drivers without entering into a third-party app.

Ola Cabs’ adoption of the UPI plugin comes as the ride-hailing unicorn is set to team up with the government’s digital commerce network, the Open Network for Digital Commerce (ONDC), to offer last-mile delivery services to sellers on the platform. 

Sources close to the company told Inc42 earlier this month that Ola Cabs will soon announce a partnership agreement with the state-backed network to offer last-mile logistics services for all categories, including food delivery, grocery shopping, and pharmaceuticals. 

The post Ola Cabs Introduces UPI Plugin To Allow Riders To Pay Directly From App appeared first on Inc42 Media.

The Delhi High Court has issued a restraining order against Dialmytrip, prohibiting the use of its name in connection with tours, travel, hospitality, and related services. The company is also required to cease using the domain name www.dialmytrip.com for travel-related services, including tours, hospitality, hotel cabs, and other relevant offerings, as per Medianama.

This legal restriction follows a case initiated by MakeMyTrip, an online travel company, seeking an injunction against Dialmytrip to prevent the use of the name ‘Dialmytrip’ and the domain names ‘www.dialmytrip.com’ and ‘www.dmtgroup.in‘.

According to the court order, Dialmytrip initially focused on providing financial services before expanding into tours and travel. In March 2020, the company applied for the trademark DMT (Your Business Buddy) under its corporate name Dialmytrip. MakeMyTrip became aware of Dialmytrip in May 2023 and promptly issued a cease and desist letter.

Responding to the letter, Dialmytrip in July 2023 stated that it has been primarily involved in banking, insurance, and investment allied services since 2015. 

The company emphasised that its engagement in tour and travel services was minimal, constituting only about 0.8% of its total turnover in the 12 months ending March 2023. The company argued that it would be inaccurate to say that Dialmytrip was offering overlapping services that impacted MakeMyTrip.

It also highlighted that it had its own registered brand name ‘DMT’, the abbreviation of Dial My Trip, under class 39 of the trademark for tour and travel arrangements. It argued that because of this registration, it had an “exclusive right to commercially exploit the word of “DMT” in public either through an ecommerce platform or any other manner.”

However, the Delhi High Court deemed the names of MakeMyTrip and Dialmytrip “confusingly similar”, particularly in the context of online travel business. The court expressed concerns that Dialmytrip’s name might be perceived as an extension or affiliate of MakeMyTrip, posing a risk of “irreparable loss” to the well-known company. 

While acknowledging Dialmytrip’s involvement in financial, banking, and insurance services, as well as its trademarked brand ‘DMT’, the court deferred a detailed examination to a later date. The case is set to be heard again on March 22, 2024.

Established in 2015, Dialmytrip is a mid-sized fintech company with a presence in key Indian cities like Delhi, Noida, Jaipur, Mumbai, and Ranchi. It offers financial inclusion services, travel services, utility payments, insurance, and more.

This is not the first time that  MakeMyTrip has been involved in such disputes. Earlier, it accused EaseMyTrip of trademark infringement. In 2022, the Delhi High Court directed Booking.com and Google to refrain from using MakeMyTrip’s trademarked words as keywords. 

In recent times, a number of new-age tech companies have dragged enterprises with similar names to courts over trademark infringement. While Zomato-owned Blinkit was involved in a legal battle with Blinkhit, the Delhi High Court last month rejected Policybazaar’s plea to prevent Coverfox and Acko from using keywords identical to its trademarks on Google’s AdWords Program.

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IPO-bound hospitality unicorn OYO has relaunched self-operated hotels more than two years after the business was halted.

Under its new ‘Prime Partner Program’, OYO said it would offer its “best managed” hotel operators the option to operate additional hotels and earn additional revenue without taking the risk of leasing or the overhead costs of starting a new hotel.  

OYO said it is actively seeking partnerships with real estate developers to identify properties for these hotels.

During the pilot phase of the program, the company has already partnered with 30 realtors and started operations in over 35 hotels spread across cities like Delhi, Bengaluru, Hyderabad, Kolkata, Goa, Mumbai, and Chennai.

These operators under the new program will get dedicated relationship managers and access to OYO’s network of over 15,000 corporate accounts and over 10,000 travel agents, the company said in a statement.

These self-operated hotels will be tagged as ‘Managed by OYO’ on the app and website. Besides, the global hospitality major said it would closely monitor the hotel’s upkeep and customer reviews.

Under the program, the hotel owners can give out their property to a large organisation at a fixed rental, revenue sharing or management contract basis.

“The program recognises the evolving travel and hospitality landscape where hoteliers are looking at expansion and guests are seeking well-managed accommodations. By offering hoteliers and property owners the opportunity to participate in this program, OYO aims to create a win-win situation that benefits landlords, professional hotel operators as well as travellers,” Anuj Tejpal, chief merchant officer at OYO, said in the statement.

Most of the hotels under ‘Prime Partner Program’ will be onboarded under the company’s premium hotel offerings such as Townhouse, Townhouse Oak, and Collection O.  

It is pertinent to note Inc42 reported earlier this year that OYO was eyeing tapping the growing Indian premium hospitality market and adding 1,800 more premium properties to its platform in 2023.

Just before the Covid-19 pandemic took its full shape in India, OYO shut down the self-operated hotel business model, most likely due to SoftBank’s pressure on the profitability front.

Soon after, the pandemic devastated the entire travel industry globally and OYO also had to scale down its operations in some high-growth geographies like the UK, Europe, Malaysia, Indonesia and the US.

However, OYO is once again back in these markets, with its focus on premium hotels and holiday homes.

OYO was also on track to report its first ever profitable quarter in Q2 FY24. In an internal mail sent to the leadership team of the company, OYO’s founder and CEO Ritesh Agarwal recently claimed that the startup will mark its “maiden profitable quarter” with a projected profit of INR 16 Cr in Q2. 

The company reported a 38% narrowed loss of INR 1,286 Cr in FY23 on an operating revenue of INR 5,463 Cr.

Earlier this year, OYO reduced its IPO size to $400-$600 Mn from $1.2 Bn earlier and filed its DRHP with the Securities and Exchange Board of India (SEBI) through the confidential pre-filing route. 

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In a fresh trouble for former BharatPe managing director Ashneer Grover, the fintech unicorn’s parent entity Resilient Innovations has reportedly filed a fresh case in the Delhi High Court seeking an injunction against him for sharing “confidential information” related to the firm.

As per an ET report, the new case on Grover was filed following his post on X (formerly Twitter) where the controversial founder revealed the equity allocation and secondary components undertaken during BharatPe’s Series E funding round, which was led by Tiger Global with participation by Dragoneer Investor group and others. The post has been removed now.

The $370 Mn fundraise valued the fintech major at $2.86 Bn.

As per the publication, the Delhi HC heard the matter on Friday (November 24) where BharatPe’s counsel argued that Grover violated obligations under his employment agreement by putting out such confidential information. 

The counsel also noted that Grover continues to hold confidential information about the company despite his resignation, which is in violation of the firm’s employment agreement.

Responding to it, Grover’s counsel reportedly submitted an apology for tweeting the confidential company information but said his client (Grover) required the information to defend himself against the proceedings instituted against him.

Senior advocate Akhil Sibal represented BharatPe while Grover was represented by Giriraj Subramanium. The matter about Grover’s access to confidential company information will be reportedly heard at the next hearing of the case.

This is not the first time that Grover has been caught in trouble because of his posts about BharatPe. Earlier this year, he deleted some of his tweets against the company following a court directive. 

The fresh case by Resilient Innovations is in addition to the already registered civil suit at the HC against Grover and his family members for alleged embezzlement of funds, seeking up to INR 88.67 Cr in damages.

The BharatPe saga has been ongoing since 2022 and has resulted in several public spats. The fintech unicorn filed a criminal complaint with the Delhi Police’s Economic Offences Wing (EOW) against Grover and his family in December last year.

The EOW registered the first information report (FIR) against the Grovers in May this year which said that Grover and his wife Madhuri Jain paid commissions to ‘bogus HR consultants’ linked to the latter’s family members.

In its investigation into the matter, the EOW recently found fraudulent transactions totalling over INR 81 Cr made by the couple.

The EOW summoned Grover and his wife in connection with the alleged fraud earlier this week, hours after the couple was stopped at the Delhi airport from flying to New York. Grover appeared before the probe agency for questioning on Thursday (November 23). 

The post BharatPe Files Fresh Case Against Ashneer Grover For Making Co’s Confidential Info Public appeared first on Inc42 Media.

Ride-hailing giant Ola Cabs is all set to join hands with the Open Network for Digital Commerce (ONDC) to offer last-mile delivery services to sellers on the platform. 

Sources close to the company told Inc42 that Ola Cabs will soon announce a partnership agreement with the state-backed network to offer last-mile logistics services for all categories, including food delivery, grocery shopping, and pharmaceuticals. 

The last-mile delivery offering will entirely be powered by electric two-wheelers at the outset, a source said.

Earlier in the day, Ola cofounder and chief executive officer (CEO) Bhavish Aggarwal hinted at the announcement in a cryptic post on X, formerly Twitter. 

“Very exciting stuff coming up with our collaboration at @Olacabs with @ONDC_Official! ONDC is the future of commerce in India and we are committing to it big! Stay tuned for lots of updates in the near future,” said Aggarwal. 

This comes nearly three months after reports surfaced that the ride-hailing major Ola had joined the state-backed network and was piloting a food delivery platform. It was also said to be internally experimenting with an ‘ONDC Food’ feature available on its Ola app. 

Threat For Zomato, Swiggy?

The partnership with ONDC pits the company directly in competition with foodtech giants such as Zomato and Swiggy. 

Ola’s partnership with ONDC will help reignite the former’s foodtech ambitions, a space which has not been kind to the company in the past. 

Its past attempts included launching a food delivery service called Ola Cafe in 2015, and the subsequent acquisition of Foodpanda’s India operations in 2017. It also unveiled its quick commerce arm Ola Dash but all the experiments largely failed. The ride-hailing giant pulled the plug on Foodpanda in 2019 and shut Ola Dash in 2022. 

The ONDC-centred offering alleviates the pain points of foray into food delivery space as Ola will skip the usual hassle of figuring out integration with the restaurant partners and attracting consumers.

The move also leverages Ola Electric’s strength in the EV space. While traditional players like Zomato and Swiggy are yet to electrify their fleet, the ride hailing giant through its sister concern Ola Electric has the resources and capabilities to quickly deploy EVs on ground and compete better on unit economics (especially fuel costs) with foodtech peers. 

As ONDC rapidly scales up operations and daily transactions, Ola’s new move is expected to pose a potential threat to Zomato and Swiggy. After taking years to figure out positive unit economics, it seems Ola has emerged as a new contender on the block with its foodtech ambitions. 

The post Ola Cabs Set To Partner ONDC To Offer Last Mile Logistics Services appeared first on Inc42 Media.

Putting its IPO plans into full throttle, electric vehicle (EV) juggernaut Ola Electric has converted into a public company. 

The startup, as per previous reports, is looking at a public listing in 2024 and will now file its draft red herring prospectus (DRHP) with the market regulator, SEBI. 

As per filings accessed by Inc42, the parent company’s name has now been changed to Ola Electric Mobility Limited from Ola Electric Mobility Private Limited. 

“Ola Electric Mobility Private Limited… upon an intimation made for conversion into a public company under Section 18 of the Companies Act, 2013; and approval of the central government signified in writing… the name of the said company is this day changed to Ola Electric Mobility Limited,” regulatory filings noted. 

For the uninitiated, the conversion to a public company is the first step for listing on the bourses. Thereafter, the company files a DRHP with the market regulator, outlining the amount it will be raising, the usage of funds and the company’s financial health.

This comes close on the heels of the EV startup closing a mammoth INR 3,200 Cr funding round led by Temasek. 

Interestingly, the startup was said to be initially eyeing a listing before the general elections next year but has since accelerated its IPO plans. As per reports, the startup plans to raise $700 Mn via its public listing on the bourses. 

It has already appointed Kotak, ICICI, Bank of America and Goldman Sachs as advisers for the much-awaited listing and is looking to target a market capitalisation of $10 Bn through its IPO.

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Traveltech major ixigo’s parent entity Le Travenues Technology Limited turned profitable in the financial year 2022-23 (FY23) with a consolidated net profit of INR 23.4 Cr as travel demand bounced back. The startup reported a net loss of INR 21.1 Cr in FY22 as against a profit of INR 7.5 Cr in FY21.

ixigo’s operating revenue jumped 32% to INR 501.2 Cr in FY23 from INR 379.6 Cr in the prior fiscal.

As a travel aggregator, ixigo earns a majority of its revenue from the sale of various travel and related services. The sources of its revenue include the income it generates from convenience fees from the reservation of rail tickets, airline tickets, and bus tickets, as well as income from advertising services.

In FY23, ixigo’s domestic revenue increased to INR 487.9 Cr from INR 369.3 Cr in FY22. Meanwhile, its ‘export revenue services’ grew almost 30% year-on-year (YoY) to INR 13.3 Cr in the reported year.

Overall, including its interest income, excess provisions written back, and other non-operating income, ixigo’s total revenue stood at INR 517.6 Cr in FY23 as against INR 384.9 Cr a year ago.

Speaking about its improving earnings, ixigo had said in a statement earlier this year that it achieved an EBITDA margin of over 7% in FY23. The gross transaction value run rate of ixigo stood at INR 10,000 Cr in May 2023, which the company intends to double in the next two years.

Founded by Aloke Bajpai and Rajnish Kumar, the ixigo group claimed to have crossed 66 Mn monthly active users across ixigo, ConfirmTkt, and AbhiBus platforms, as of March 2023.

A Sneak Peek Into ixigo’s Spending

ixigo’s total expenses jumped 1.2X to INR 484.3 Cr in FY23 from INR 402.5 Cr a fiscal ago, with employee costa being the single biggest contributor.

The startup’s employee benefit expenses surged 1.3X YoY to INR 126.3 Cr during the year under review. Of this, ixigo spent INR 102.6 Cr on salaries and wages. The startup spent INR 71.7 Cr on salaries in FY22.

Meanwhile, advertising and promotional expenses jumped to INR 93.1 Cr from INR 57.5 Cr in FY22. Notably, ixigo roped in actors Jackie Shroff and Suniel Shetty for a new ad campaign, explaining the rise in ad expenses.

Ixigo’s IT expenses, too, jumped to INR 22.3 Cr in the year under review.

Meanwhile, the company’s finance costs declined to INR 94.9 Lakh in the year from INR 2.8 Cr in FY22.

The traveltech major, which largely competes with MakeMyTrip, EaseMyTrip, and Yatra, is now targeting a 40% revenue growth in FY24. ixigo sees scaling its business to INR 700 Cr in the current fiscal.

In July this year, ixigo unveiled its ChatGPT-powered ‘intelligent’ trip planner, PLAN, offering personalised recommendations, suggestions, and itineraries to travellers based on their present locations.

ixigo received SEBI’s nod for its INR 1,600 Cr IPO in December 2021 but the startup put its listing plan on hold due to severe turmoil in the global equity market.

The post ixigo Back In The Black As Travel Rebounds, Crosses INR 500 Cr Revenue Milestone appeared first on Inc42 Media.

After a long period of relative dormancy due to travel restrictions and consumer fear, traveltech companies are seeing a surge in bookings, thanks to a strong rebound of business and leisure travel. 

In fact, The United Nations World Tourism Organization (UNWTO) suggests that about 235 Mn tourists travelled globally in the first three months of 2023, an 80% increase from pre-pandemic levels. Other reports show that the number of foreign tourists who arrived in India between January and June 2023 was 106% more than the figure in the previous year. 

Of course this surge has opened a door of opportunities for India’s traveltech startups and while most can boast of providing end-to-end value in the travel chain, standing out among the plethora of rivals is a matter of customer experience and personalisation. It’s not enough to just offer travel and hotel bookings, or features to ease check-ins and the boarding — the focus is on personalisation that caters to the unique needs of each traveller.

In the post-pandemic world, there’s also a heightened focus on health and safety which has made customer communications key for gaining trust, building engagement and repeat bookings. 

Simply put, it is vital to effectively and conveniently communicate with travellers at the right time and place. And in this day and age that means WhatsApp. 

With more than 2 Bn users across 180+ countries, Meta-owned WhatsApp is the most popular global messaging app and it’s an opportunity that businesses can no longer ignore. 

“Leveraging the dynamic capabilities of WhatsApp, Karix enables two-way communication stream, fostering instantaneous and impactful customer engagement,” explained Sonia Kaul, vice president, product marketing of Mumbai-based martech platform Karix. 

She further said that WhatsApp as a platform transforms the narrative of customer interactions, allowing businesses to deliver not just booking confirmations and travel updates, but an enriched customer experience.

Even though WhatsApp seems like the obvious solution to enhancing the customer experience, differentiation through targeted communication is essential. In the context of travel, for instance, if a customer seeking to advance their booking arrangements receives reminders about their existing booking, the intended purpose is defeated. 

This is where WhatsApp Business Solution Providers (BSPs) like Karix come into play, easing the path for traveltech platforms to implement WhatsApp Business APIs to enable personalised customer support.

Karix’s capabilities include chatbots that help businesses reduce call centre loads and improve turnaround time for customer support. Chatbots can automate query handling and offer features such as quick replies to resolve queries faster. Besides seamless customer support, Karix adds value by enabling convenient handling and management of bookings directly through WhatsApp.

Karix has tied up with large traveltech players such as MMT for flight, bus and train booking. Besides MMT, it has also partnered with bus and train ticketing platform redBus and the Chennai Metro Rail Limited — more on how this works later. 

Smart Personalisation With WhatsApp

In a sea of automated marketing solutions, WhatsApp commerce stands out because of the reach and the direct model of conversational commerce — companies can connect with users more intimately, and showcase products or services directly without a break in the user journey. The convenience is undeniable, and the evolving preference of individuals to gravitate towards new-age messaging apps, in lieu of tools like email, calls and SMS is also clear. 

WhatsApp’s familiarity is great, but the fact businesses can enhance their communication strategy through rich media content like videos, photos, voice notes and stickers is even more appealing. A Kantar study reveals that over 70% of Indians prefer messaging apps over emails or website visits to resolve issues, making WhatsApp a powerful business and brand communication channel.

“WhatsApp transcends traditional communication barriers, creating a fertile ground for meaningful and enduring conversations with a global audience. Its intuitive interface, coupled with the economic advantage and the capability to curate comprehensive catalogues, empowers travel platforms to disseminate not just information but experiences,” said Kaul.

She recommended using the ‘Click-to-WhatsApp’ feature that lets partner businesses embed a click button on their ads to encourage their user to connect on WhatsApp directly. 

Backed by in-house AI capabilities, Karix enables data collection and real-time customer data analysis across touchpoints and helps traveltech businesses improve customer segmentation based on behaviour and their unique needs. Most communication on WhatsApp is automated because the API can be connected to the booking systems. This allows businesses to initiate relevant messages, enabling personalised and effective communication with customers without much human intervention 

In addition, Karix’s chatbot builder allows them to build customised WhatsApp chatbots and resolve queries quickly. In case queries are too complex, the chatbot lets customers transfer the queries to a human agent, thereby working as a smart filter. 

How Karix Helped MMT, redBus

Despite being one of the oldest and largest traveltech players in India, MMT wanted to up its game and make a lasting impression on its consumers, especially non-app users and wanted to connect with them on a real-time basis. The traveltech player was also looking for a way to capture customer feedback and enhance the net promoter score, which helps it gauge the possibility of repeat usage. 

In 2021, it partnered with Karix to address these challenges. Through this partnership, it decided to leverage WhatsApp to promote its reward-based programme MMT Black and communicate with its high-value customers.

With this integration, MMT was also able to send interactive messages and timely responses to customers. Karix also helped the company share highly customised messages, allowing it to reach the right audience and increase the relevance of the conversation. For example, it was able to contact flight bookers just a few hours before their departure with personalised cross-selling communication on WhatsApp such as offering airport cabs at reduced fares.

Users have shown a higher affinity for WhatsApp messages, leading to a significant improvement in MMT’s click-through-rate compared to app-based push notifications, revealed Kaul. Although she did not disclose the number, she said that the integration of automated invitations and one-click signups has remarkably expanded the subscriber base of its MMT Black programme.

For redBus, WhatsApp integration proved to be a game-changer. The brand claims that 22 Mn+ people travel on intercity trains daily (redRail) but they find it difficult to login to different apps to know details like the PNR status or tracking the train on its journey.  

In May 2022, redBus tied up with Karix to allow its customers easy access to their PNR status and live train status on WhatsApp.

This ensured a seamless train journey which could otherwise feel long and exhausting for most customers due to lack of visibility on such information. 

The PNR and LTS (live train status) have become extremely popular among redBus users, Karix claimed. In fact, the LTS feature saw a 5X uptick in usage in just two months after it was launched on WhatsApp.

“Through our partnership with redRail, we are making use of the latest technology to deliver real value for consumers and travellers. With advanced platform capabilities and the dedicated efforts of the teams, we are committed to innovating and building the next generation of digital customer experiences,” said Kaul. 

The Future Of Travel 

According to an Inc42 report, internet penetration in India currently stands at 61% and the number of Indian internet users will likely exceed 1.3 Bn by 2030. As in other consumer services, rising internet adoption will change how Indians travel — there’s little doubt that digital platforms will continue to flourish. 

But when it comes to the competitive edge, a lot hinges on personalised communication and customer support.

“Keep the safety of your users at the core of your communication strategy. Also, leverage an omnichannel presence and strive to make the entire process frictionless and convenient by offering a one-stop solution for all their requirements,” advised Kaul. 

She added that besides communication, traveltech platforms can leverage WhatsApp for revenue-centric activities — personalised discounts and offers, loyalty programmes and content marketing to drive upselling. 

While private travel players have already begun using WhatsApp and messaging apps, even public transportation authorities have shown the appetite to move to conversational customer experience (CX) solutions. In May 2023, Karix partnered with Chennai Metro Rail Limited to allow more than 2.5 Lakh daily commuters to get timely information and access services such as checking fares, booking tickets and route maps— all through WhatsApp.

Sonia claimed that the WhatsApp chatbot has witnessed a great response, garnering over 50K users within a few hours of its launch. “The overwhelming response from the commuters demonstrates a strong desire for an efficient and user-friendly ticketing solution,” shel added. 

According to Business Wire, the value of transactions enabled by conversational commerce  is set to surge from $21.9 Bn in 2023 to $51.9 Bn by 2028. Adoption of conversational commerce by large companies and institutional players will drive this growth. 

Messaging apps such as WhatsApp are constantly improving their business-centric APIs and tools. And how Karix, WebEngage and others of their ilk make conversational commerce more personal is definitely something worth watching.

The post How WhatsApp Commerce Is Enabling Traveltech Startups To Rewrite Their Communication Playbook appeared first on Inc42 Media.