Reliance Jio may receive the landing rights and market access authorisations from the Indian National Space Promotion and Authorisation Centre (IN-SPACe) to roll out its satellite-based gigabit fibre services in India, ET reported.

According to the report, Jio has made all the necessary submissions to IN-SPACe, and the space regulator is expected to give the authorisation soon, which is mandatory for deploying global satellite bandwidth capacity in India.

The authorisations from IN-SPACe involve approvals at different levels from different ministries. 

“We don’t comment on the status of approvals of specific companies…all I can say is that several applications for IN-SPACe authorisations are in the pipeline,” said Pawan Goenka, chairman of IN-SPACe.

In October last year, the telecom giant introduced JioSpaceFiber, India’s first satellite-based giga-fibre service. The company said that the new service is designed to provide fast and reliable internet connectivity to remote and challenging-to-reach regions.

At the India Mobile Congress, Reliance said that plans are to make the giga-fibre service accessible nationwide at cost-effective rates. The company further added that the new service has connected remote locations like Gir in Gujarat, Korba in Chhattisgarh, Nabarangpur in Odisha, and ONGC-Jorhat in Assam. 

According to the subscriber data released by the Telecom Regulatory Authority of India (TRAI), the telecom major added 3.4 Mn wireless subscribers in September 2023. Reporting a growth of the total wireless telecom subscribers TRAI said that there had been a net addition of 1.7 Mn subscribers against 1.39 Mn in August 2023. Overall, the number of active wireless subscribers in September hovered around the 1.04 Bn mark.

Additionally, to boost the 5G availability in India, it also launched the Jio True 5G Developer Platform and the Jio 5G Lab. The company said that the idea is to enable startups and enterprises to develop 5G use cases on Jio’s 5G network.

The post Reliance Jio Likely To Get IN-SPACe Nod To Launch Satellite-Based Gigabit Internet appeared first on Inc42 Media.

Delhi NCR-based healthtech unicorn Pristyn Care’s operating revenue increased 45% in the financial year ended March 31, 2023. The Peak XV Partners-backed startup reported an operating revenue of INR 452.8 Cr in the financial year 2022-23 (FY23), an increase of 1.4X from INR 312.7 Cr in the previous fiscal year.

Founded by Harsimarbir Singh, Dr Vaibhav Kapoor, and Dr Garima Sawhney in 2018, Pristyn Care offers advanced secondary care surgeries through its network of more than 200 clinics, 700 hospitals, and a team of 400+ in-house super-speciality surgeons across 40 cities in India.

Including other income, the startup’s total revenue rose 45.6% to INR 493.7 Cr in FY23 from INR 338.9 Cr in the previous fiscal year.

Despite the increase in its top line, Pristyn Care’s net loss surged 38% to INR 382.5 Cr during the year under review from INR 277.1 Cr in FY22.

Where Did Pristyn Care Spend?

The startup’s total expenditure increased to INR 876.8 Cr in FY23, a rise of 42% from INR 616 Cr in the previous year.

Advertising Expenses: The startup’s advertising expenditure was one of the biggest expenses during the year under review. Pristyn Care spent INR 219.9 Cr under the head in FY23, an increase of 17% from INR 187.8 Cr it spent in the previous fiscal year.

Employee Benefit Expenses: Pristyn Care spent INR 198.5 Cr on employee salaries and other benefits during the year under review, up 36% from INR 146.3 Cr in FY22. 

Surgery Expenses: The startup’s expenses under the head grew 30% to INR 133.4 Cr in FY23 from INR 102.3 Cr in the previous fiscal year.

It is pertinent to note that Pristyn Care added new surgical categories, including dental procedures, knee replacement, and weight loss surgeries, in FY23. It also expanded the availability of some of its categories such as ophthalmology, gynecology and urology beyond the major metro markets.

Earlier this year, the startup also began operations in Bangladesh, establishing a presence in Dhaka and Chittagong. 

Pristyn Care has raised $177 Mn across multiple funding rounds till date. The startup entered the coveted unicorn in late 2021 after raising $96 Mn in its Series E round from Peak XV Partners (then Sequoia Capital India), Tiger Global, Winter Capital, Eriq Capital and Hummingbird Ventures at a valuation of $1.4 Bn.

The startup competes against the likes of Practo, PharmEasy, and MediBuddy.

The post Pristyn Care’s FY23 Revenue Inches Closer To INR 500 Cr Mark, Loss Jumps To INR 383 Cr appeared first on Inc42 Media.

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. 

The post IPO-Bound Ola Electric Becomes First Indian EV Company To Get PLI Nod appeared first on Inc42 Media.

Nazara Technologies’ esports subsidiary NODWIN Gaming has invested INR 33.26 Cr in Germany-based Freaks 4U Gaming GmbH via convertible note. 

Freaks 4U Gaming GmbH is a marketing services company for gaming and esports, delivering its services across the world.

“Nodwin Gaming International Pte. Ltd. (“Nodwin Singapore”), a wholly owned subsidiary of Nodwin Gaming Private Limited (“Nodwin”), material subsidiary of the company, has on December 28, 2023 signed agreements for subscribing to a Convertible Note of Freaks 4U Gaming GmbH, at a consideration of EUR 3,600,000 (equivalent to approximate INR 33.26 Cr), to be paid in cash,” Nazara said in an exchange filing. 

Nazara further said while both NODWIN Gaming and Freaks 4U Gaming are marketing services experts in gaming and esports, their strengths are respectively in mobile and PC-based games.

While NODWIN dominates in emerging markets like India, Freaks 4U Gaming GmbH leads in developed markets. With the recent investment, NODWIN aims to enhance its expertise in PC games. 

By joining forces, Freaks 4U Gaming GmbH and NODWIN aim to be more appealing to global consumer brands and game publishers, providing a seamless operation across both emerging and developed markets.

“If conversion option of the convertible note is exercised the same will be converted into 7,366 shares at a future date/conversion date. The percentage of shareholding will depend on the terms and conditions of the said convertible no,” Nazara added.

For the uninitiated, convertible notes are a type of debt instrument commonly used by startups to raise capital during their early stages. It involves investors lending money to a startup with the intention of converting it into equity at a later milestone, often the next equity financing round.

Earlier this year, NODWIN Gaming was planning to raise $28 Mn (INR 232 Cr) as part of a strategic funding round from new and existing investors. As per regulatory filings, Nazara has signed definitive and binding documentation for NODWIN to raise the capital from existing as well as new investors.

Back then Nazara said that NODWIN will utilise the fresh capital to expand and incubate new IPs as well as to venture into new territories. 

NODWIN Gaming has been on an acquisition spree this year. It acquired a 51% stake in mediatech startup Branded in an all-cash deal worth $1.3 Mn. In April last year, the esports company also picked up a 35% stake in gaming accessories brand Wings for INR 10.01 Cr. Prior to that, NODWIN acquired a 100% stake in licensed merchandising D2C brand Planet Superheroes in January 2022.

Its parent company also raised a fresh capital of INR 510 Cr from investors including Zerodha’s Nikhil Kamath and SBI Mutual Fund. Speaking to Inc42, CEO Nitish Mittersain had said that the company would invest the fresh funds in gaming studios capable of producing top-tier games tailored for both the Indian and global markets.

The post Nazara’s NODWIN Gaming Invests INR 33 Cr In German Firm Freaks 4U Gaming Via Convertible Note appeared first on Inc42 Media.

Brainbees Solutions Limited, the parent entity of kids-focused ecommerce unicorn FirstCry, has finally filed its draft red herring prospectus (DRHP) with the capital markets regulator Securities and Exchange Board of India (SEBI) for raising INR 1,816 Cr through fresh issues of shares.

The initial public offering (IPO) also comprises an offer-for-sale (OFS) complement which will allow the startup’s investors to sell up to 5.4 Cr equity shares. SoftBank alone is shipping off around 2 Cr shares as part of the OFS, with many other major shareholders selling significant stakes as part of the OFS.

FirstCry is also looking to raise INR 363.2 Cr via a pre-IPO placement, the DRPH noted.

The 577-page draft document sheds light on how the entity, which has built three unicorns interacts with one another and delves deep into its business model. FirstCry’s draft papers also inform the company’s shareholding pattern and the people leading the ecommerce behemoth.

The Top Shareholders At FirstCry

Japanese investment giant SoftBank is the biggest shareholder in FirstCry’s parent company, owning around 12.41 Cr equity shares (on a fully diluted basis) or about 25.55% of the total equity capital, according to the DRHP. SoftBank owns the stake via the SoftBank Vision Fund’s Cayman Islands-based entity, SVF Frog (Cayman) Limited.

Mahindra & Mahindra and Premji Invest are the second and third largest stakeholders in Brainbees Solutions, owning 10.98% and 10.36% stake, respectively. While Mahindra & Mahindra invested directly in FirstCry, Premji Invest did so via its PI Opportunities I and II funds.

The company’s ESOP trust, the Brainbees ESOP Trust, is the fourth largest stakeholder in the ecommerce unicorn. Alongside the Brainbees Employee Welfare Trust, the company’s employee-focused entities own more than 11% of the total equity capital on a fully diluted basis.

Supam Maheshwari, the cofounder and CEO of FirstCry, is the fifth largest stakeholder in the parent entity he set up. Maheshwari owns a 5.95% stake, which translates to nearly 2.9 Cr fully diluted shares.

Incidentally, more than 100 different stakeholders, including the likes of Ratan Tata, cumulatively own around 9.5% stake in the FirstCry parent.

Who’s Who At FirstCry

Supam Maheshwari, who set up Brainbees Solutions in August 2010, is the company’s MD and CEO. He holds a bachelor’s degree in mechanical engineering from Delhi College of Engineering and a post-graduate diploma in management from IIM Ahmedabad. 

Before setting up the FirstCry parent, he set up business learning solutions provider Brainvisa Technologies in 2000, which he left in 2009 as its president. Maheshwari also brought along Sanket Hattimattur and Prashant Jadhav from Brainvisa, who joined as cofounders. Hattimattur is currently serving as executive director and chief of staff, while Jadhav is currently the CTO.

Working alongside Jadhav in the company’s C-suite is Gautam Sharma, the group CFO, an associate member of the Institute of Chartered Accountants of India (ICAI) and a fellow member of the Institute of Company Secretaries of India (ICSI). Other key managerial personnel (KMP) include CHRO Manjula Rao and company secretary Neelam Jethani.

The DRHP also mentioned Nitin Agarwal, who is leading Globalbees as CEO, and Amitava Saha, also a cofounder and major stakeholder at FirstCry, serving as XpressBees CEO. The two subsidiaries are unicorns in their own right.

Brainbees Solutions also reported key changes to its board of directors right before filing its draft documents. On December 26, Amitava Saha, Simit Batra, Puneet Renjhen, Atul Gupta, Vikas Agnihotri and Amit Gupta resigned from their positions as non-executive directors. While Saha had been serving on the board for a while, Batra and Renjhen were appointed only months ago.

Besides this, the company reported having 3,242 full-time employees.

Following the filing of the DRHP, all eyes would now be on SEBI’s approval. FirstCry, which had deferred its IPO in 2022, citing poor market conditions, will now sit among the most-awaited public listings next year.

The post FirstCry DRHP: A Deep Dive Into The Shareholding Pattern & People At The Helm appeared first on Inc42 Media.

Edtech major Physics Wallah (PW) on Friday (December 19) said its revenue from operations jumped 3.3X year-on-year (YoY) to INR 771.76 Cr in the financial year 2022-23 (FY23). 

The startup had clocked an operating revenue of INR 232.47 Cr in FY22 and INR 24.6 Cr in FY21. 

The edtech unicorn released select numbers ahead of filing audited financial statements with the Registrar of Companies (RoC). While it clocked a net profit of INR 97.8 Cr in FY22, it didn’t disclose its bottom line number for FY23. 

In a statement, the startup claimed its adjusted EBITDA (before ESOP costs, LER and a one-time inventory provisioning) stood at INR 127 Cr in the year ended March 2023, a decline from INR 134 Cr in FY22. 

Founded in 2020 by Alakh Pandey and Prateek Maheshwari, PW initially started as a YouTube channel but has since expanded to a full-fledged test prep platform for competitive exams. At the outset, it catered to the IIT/JEE and NEET aspirants but has lately forayed into various segments such as post-graduate programmes, UPSC prep, and upskilling courses. 

Earlier this year, the edtech unicorn said it would invest INR 100 Cr in scaling up its UPSC vertical and would pump an additional INR 120 Cr to shore up its skill development vertical.

PW last raised $100 Mn as part of a funding round from Westbridge and GSV Ventures in 2022 at a post-money valuation of $1.1 Bn, turning into a unicorn. The financial results come at a time when the edtech juggernaut is reportedly in talks to raise $250 Mn at a valuation of $3.3 Bn. 

PW currently operates a chain of 58 Vidyapeeth (offline) and Pathshala (hybrid) centres, and aims to increase the number of these centres to over 120 in 2024. PW claimed it enrolled 1.4 Lakh students for such offline and hybrid courses in the academic year 2023-24.

Overall, PW said that it ‘taught’ 23.5 Lakh students across all exam categories (barring acquisitions) in FY23, up from 9 Lakhs in the previous fiscal. 

“Our growth was significant both in the online and offline space. Our online categories grew to 2.5X in terms of students headcount from 9 Lakh in FY22 to 23.5 Lakh in FY23 while our offline student headcount grew to 5.5X touching 60,000 enrolments in FY23… We are in no hurry to compromise growth for achieving a steady-state margin profile,” said cofounder Maheshwari.

Where Did PW Spend?

As PW undertook a full-fledged offline expansion, its expenses soared 7.54X to INR 777 Cr in FY23 from INR 103 Cr in the year-ago period. 

Employee costs grew 863% to INR 406 Cr in the year ended March 2023 from INR 42 Cr in FY22. Marketing expenses also zoomed 475% to INR 204 Cr in FY23 from INR 42.9 Cr in FY22. 

The offline expansion led to rent expenses ballooning to INR 56 Cr during the period under review from INR 3.4 Cr in FY22. On similar lines, the startup’s ‘other expenses’ also rose six-fold to INR 66.7 Cr in the year ended March 2023 compared to INR 11 Cr in FY22. 

However, the unicorn’s cash reserves surged 6.23X to INR 745.9 Cr at the end of FY23 from INR 119.7 Cr a year ago. 

The startup said it acquired as many as eight entities in 2022 and 2023 and expects an inorganic revenue of INR 500 Cr to kick in the financial statement of FY24 on account of these acquisitions. The latest in the spree of M&As was PW picking up a 50% stake in Xylem Learning to foray into South India.

Notwithstanding the acquisitions and offline expansion, PW has also been reeling under the impact of funding winter. With funding taps running dry, it recently fired around 70-120 employees to reportedly extend its runway, conserve capital and streamline operations. However, the company attributed the layoffs to performance issues.

Meanwhile, the edtech sector has been among the worst hit by the ongoing funding winter. This has led to the funding numbers for the sector declining 88% to $283 Mn in 2023 from $2.4 Bn in 2022. 

The post Physics Wallah’s FY23 Revenue Rises 3.3X YoY To INR 772 Cr, Expenses Zoom 7.5X appeared first on Inc42 Media.

Electric vehicle (EV) manufacturing giant Tesla is likely to enter India with its manufacturing plant in Gujarat next year, as per multiple media reports.

The EV maker’s negotiation for the establishment of its first manufacturing unit in India is in the final stage and is likely to conclude soon.

Meanwhile, as per a report by Ahmedabad Mirror, the announcement regarding Tesla’s manufacturing unit in the state is anticipated to be made during the forthcoming Vibrant Gujarat Summit scheduled for next month.

Gujarat is already home to manufacturing units of automakers like Maruti Suzuki, etc and it is anticipated that for Tesla’s manufacturing plant possible location could be Sanand, Becharaji and Dholera.

However, so far, there has been no official announcement by the EV maker or the state government on the matter. 

During a recent Cabinet briefing, Gujarat Health Minister Rushikesh Patel expressed optimism about Elon Musk’s investment in Gujarat. 

He highlighted the state’s awareness and alignment with Tesla’s overarching goals, drawing a parallel during the address.

Patel also emphasised that the government is actively in talks with the EV maker to finalise the deal on establishing the manufacturing plant in Gujarat.  

Media reports also suggest that Gujarat has become a prime choice for Tesla’s manufacturing plant, not only due to favourable state policies but also its proximity to ports, facilitating product exports. The strategic location, particularly in Sanand, offers a short distance to the Kandla-Mundra port in Gujarat, enhancing Tesla’s export capabilities from India.

The vibrant Gujarat Global Summit was conceptualised in 2003. The tenth edition of the Vibrant Gujarat Summit will celebrate “20 years of Vibrant Gujarat as the Summit of Success”. The summit is dedicated to business networking, knowledge sharing, and fostering strategic partnerships for inclusive growth and sustainable development.

In August, Union Minister of Commerce and Industry, Piyush Goyal, reportedly met with senior Tesla executives in a closed-door meeting to discuss the carmaker’s plans to establish a manufacturing plant in the country.

Earlier, Tesla expressed interest in building a factory in India that would produce a low-cost electric vehicle (EV) priced at around $24,000 (INR 19.87 Lakhs), around 25% cheaper than Tesla’s current entry model for both the Indian market and export.

Tesla is working overtime on its plans to enter India, with multiple meetings taking place between the government and the carmaker’s executives since mid-May. Earlier, it was also reported that the carmaker has leased office space in Pune.

Tesla has leased an office spread over a 5,850 sq ft. area on the first floor of Panchsil Business Park in Viman Nagar, Pune.

Tesla also wants to bring some of its Chinese vendors to India but has been asked by Indian officials to copy Apple’s playbook in the country and ask its Chinese suppliers to set up joint ventures with Indian partners to get clearance.

The post Elon Musk’s Tesla Likely To Set Up Its First India Manufacturing Plant In Gujarat appeared first on Inc42 Media.

Non-banking finance companies DMI Finance and Aditya Birla Finance are in discussions to acquire Bengaluru-based fintech startup ZestMoney in a potential firesale.

Although negotiations are still ongoing, a deal may be finalised soon, ET reported.

Aditya Birla Finance and DMI Finance, both partners of ZestMoney, have examined the financial records of the lendingtech startup.

The lenders are expressing interest in acquiring not only the technology platform of ZestMoney but also considering taking control of the loan book that the startup had built for its partners.

ZestMoney currently holds an outstanding loan book of approximately INR 400 Cr, which it sourced for its lending partners. The startup primarily operated as a sourcing platform, facilitating loans for its partner NBFCs, rather than independently maintaining its own loan portfolio.

Earlier this month it was reported that ZestMoney is about to shut down as the efforts of the new management to revive the company have failed to materialise.

The fintech startup will wrap up operations by the end of December and lay off its entire workforce of 150 employees, the startup’s new leadership team announced this in a town hall meeting.

The development came after the company failed to raise a follow-on round or find a buyer to save its sinking ship.

The company’s original cofounders – Lizzie Chapman, Priya Sharma and Ashish Anantharaman, quit the startup in May this year. Their resignations also came after the acquisition talks with fintech major PhonePe failed. At the time, the company had to trim 30% of its workforce.

Founded in 2015 by Chapman, Sharma and Anantharaman, the startup offers BNPL services to customers, enabling them to pay their shopping bills in three instalments at 0% interest rate.

Backed by names such as Prosus, Quona, Zip, Omidyar Network and Ribbit Capital, ZestMoney raised more than $130 Mn during its lifetime. At its peak, it commanded a valuation of $445 Mn – $450 Mn and was considered the poster child of the BNPL ecosystem in the country.

ZestMoney’s losses grew 3X year-on-year (YoY) to INR 398.8 Cr in the financial year 2021-22 (FY22) against INR 125.8 Cr reported in FY21. However, revenues grew by 1.6X YoY to INR 145 Cr in FY22.

The post DMI Finance, Aditya Birla In Fray To Take Over Lending Startup ZestMoney appeared first on Inc42 Media.

D2C unicorn Mamaearth on Thursday (December 28) informed the bourses that a senior executive of the company flouted insider trading norms. 

In a filing with the BSE, Honasa Consumer, Mamaearth’s parent, said that the startup’s vice-president of sales, Shuchi Garg, traded shares of the company without prior approval from the company secretary or compliance officer. 

The violations pertained to the Code of Conduct under the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015.

“…We would like to inform you that one of the Designated Person (Employee) of the Company has traded into the equity shares of the Company without obtaining preclearance of the Company Secretary and Compliance Officer of the Company,” Mamamearth said. 

In the meantime, the unicorn has issued a warning letter to the erring employee and has directed her to ‘refrain’ from such actions in the future. Mamaearth also said that the matter will be placed before the company’s audit committee meeting for a ‘detailed action plan’.

As per the regulatory filing, the violations by the executive spanned two separate transactions on two different days. On December 12, Garg sold 2,000 shares of Honasa Consumer at INR 420 apiece, which translated into a total value of INR 8.4 Lakh. 

On the second occasion, on December 27, she again executed the sale of 1,500 shares of the company at a share price of INR 457.16, resulting in a cumulative value of INR 6.85 Lakh. Both the deals (INR 15.2 Lakhs in total) were undertaken without express pre-clearance from the company secretary.

Mamaearth made its stock market debut last month. The company listed at a premium of 2% (INR 330) on the NSE while it made a flat debut on the BSE at INR 324. The stock has surged more than 42% on the BSE since its listing, largely on the back of its positive Q2 FY24 financial results and an improving investor sentiment for new-age tech stocks.

Last week, brokerage firm JM Financial initiated a ‘BUY’ call on Honasa Consumer citing a better outlook and strong financial performance so far. 

Mamaearth shares closed 0.22% lower at INR 460.35 on the BSE on Thursday (December 28).

The post Mamaearth Sr Exec Flouts Insider Trading Norms, Sells Shares Worth INR 15 Lakh In Two Tranches appeared first on Inc42 Media.

Omnichannel marketplace FirstCry, which on Thursday (December 28) filed its draft papers for an initial public offering (IPO), also runs 180 preschools across 91 Indian cities under its umbrella brand – Intelli Education, which was rebranded after the former acquired Oi Playschool from Hyderabad’s People Combine Group in 2019.

At the time of acquisition, Oi Playschool operated 55 centres in Bengaluru and Hyderabad, and FirstCry had then announced it would expand the playschool to more than 1,000 centres across the country.

However, understandably, the two long years of pandemic interrupted its expansion plans.

The SoftBank-backed company’s parent entity Brainbees Solutions Private Ltd has filed its draft red herring prospectus (DRHP) with the capital markets regulator Securities and Exchange Board of India (SEBI) for raising INR 1,816 Cr via fresh issues of shares. 

The IPO offer also comprises an offer-for-sale (OFS) complement which will allow the startup’s existing shareholders to sell up to 5.43 Cr equity shares.

As per the startup’s DRHP, FirstCry under Intelli Education runs preschools which offer learning aids and core education services for kids between the ages of one to six.

The preschool offers products and services ranging from preschools, books, toys and home learning kits to baby cognitive development activities.

By the end of the first quarter of FY24, Intelli Education had a total enrollment of 6,649 students.

Founded in 2010 by Supam Maheshwari and Amitava Saha, FirstCry sells baby care and mother products through online platforms, company-owned modern stores, franchisee-owned modern stores and general trade retail distribution.

“…With the aim of providing early childhood experience learning centres to parents, in November 2019, we acquired a chain of preschools that was in existence since 2010 and re-branded them with the Intellitots brand in 2020,” the DRHP added.

These preschools instill a brand awareness about FirstCry to these kids’ parents. FirstCry’s preschool competes against Euro Kids, Kidzee, among others.

In 2021, the company also launched FirstCry Intelliskills, an early learning brand that develops educator-certified books and toys which aid a child’s learning beyond school.

The post Nuggets From FirstCry DRHP: Ecommerce Unicorn Runs 180 Preschools appeared first on Inc42 Media.

SoftBank-backed online omnichannel retail startup FirstCry has filed its draft red herring prospectus (DRHP) with the capital markets regulator Securities and Exchange Board of India (SEBI) for raising INR 1,816 Cr via fresh issues of shares. 

The initial public offering (IPO) offer also comprises an offer-for-sale (OFS) complement which will allow the startup’s existing shareholders to sell up to 5.43 Cr equity shares.

Besides, the company is also eyeing a pre-IPO private placement of equity shares to investors for an amount aggregating not more than INR 363 Cr. The amount raised in the pre-IPO round will be reduced from the fresh issue.

Pre-IPO placements, conducted months before the startup goes public, help in establishing a valuation base for an IPO and instil confidence among investors. The proceeds from pre-IPO placement will eventually contribute to the net proceeds of the IPO.

The startup’s IPO net proceeds will be used for the following:

• Expenditure for setting up new modern stores and warehouses, as well as lease payments for our existing modern stores in India, totalling INR 648 Cr.
• Investment in the company’s subsidiary FirstCry trading for overseas expansion via setting up new modern stores in Saudi Arabia totalling INR 155.6 Cr.
• INR 170.5 Cr as an investment in subsidiary Globalbees Brands towards the acquisition of an additional stake in the company’s indirect subsidiaries.
• Investment for sales and marketing initiatives to the tune of INR 100 Cr.
• Technology and data science cost of INR 57.6 Cr.
• The rest would be for funding inorganic growth through acquisition, other strategic initiatives and general corporate purposes.

Earlier this month, coworking space startup Awfis which filed DRHP to raise INR 160 Cr announced it might raise INR 32 Cr as pre-IPO placement ahead of filing its RHP. In another instance, Bhavish Aggarwal-led Ola Electric, which is heading for a mega IPO to raise upto INR 5,500 Cr via fresh issues of shares, in its DRHP has stated that it might also consider raising upto INR 1,100 Cr via pre-IPO Placement. 

In the first three months of FY24, Brainbees Solutions Limited, the parent entity of FirstCry reported sales of INR 1,406.9 Cr on a consolidated basis. In the Q1 of FY24, the startup incurred a net loss of INR 110.4 Cr. During the same period, the startup spent INR 904.4 Cr for procurement of materials and INR 164.5 Cr for advertisement.

The Pune-headquartered startup has raised over $700 Mn in multiple rounds till date and counts the likes of SoftBank, Chrys Capital and Vertex Ventures as among its backers.

The post SoftBank-Backed FirstCry Plans To Mop Up INR 363 Cr In Pre-IPO Placement appeared first on Inc42 Media.

After much speculation, Brainbees Solutions Limited, the parent company of kids-focused ecommerce unicorn FirstCry, has filed its draft red herring prospectus (DRHP) with the markets regulator Securities and Exchange Board of India (SEBI). 

The startup’s initial public offering (IPO) will comprise a fresh issue of shares worth INR 1,816 Cr and an offer-for-sale (OFS) component of up to 5.43 Cr shares.

SoftBank will offload the highest number of shares in the Pune-based omnichannel marketplace’s IPO. As per the draft papers, the Japanese investor will be selling up to 2 Cr shares as part of the OFS component of the public issue. Besides SoftBank, several others, including Mahindra & Mahindra, Premji Invest, private equity investor TPG, Apricot Investments and NewQuest, are also offloading their stakes in the IPO.

The company is also eyeing a pre-IPO private placement of equity shares to investors for an amount aggregating up to INR 363 Cr. The amount raised in the pre-IPO round will be reduced from the fresh issue.

In its DRHP, the ecommerce unicorn also highlighted several areas where it would deploy the funding raised via the public issue.

Where Will FirstCry’s IPO Money Go?

FirstCry plans to set up new retail stores and warehouses and undertake international expansion. It will invest INR 648 Cr from the IPO proceeds for setting up modern stores and warehouses and making lease payments for existing stores.

Further, the startup will invest INR 155.6 Cr in its foreign subsidiary for overseas expansion. The startup said it would set up modern stores in Saudi Arabia. However, it did not specify the details, such as the number of stores it plans to open in the Middle Eastern country.

Additionally, FirstCry intends to invest INR 170.5 Cr in subsidiary Globalbees Brands for acquiring an additional stake in the company’s indirect subsidiaries. The startup will also invest INR 100 Cr for sales and marketing initiatives and another INR 57.6 Cr in technology and data science.

According to the DRHP, the rest of the IPO proceeds would fund inorganic growth and other corporate purposes.

In FY23, FirstCry’s net loss surged over 500% to INR 486 Cr from INR 78.6 Cr in the previous fiscal year. Notably, the startup had logged a net profit of INR 215.9 Cr in FY21. The startup clocked sales of INR 5,632.5 Cr in FY23, 135% higher than INR 2,401.2 Cr in FY22.

Additionally, in Q1 of FY24, FirstCry recorded a net loss of INR 110.4 Cr on consolidated sale of INR 1,406.9 Cr.

The post FirstCry DRHP: Here’s How The Ecommerce Unicorn Intends to Spend IPO Proceeds appeared first on Inc42 Media.

SoftBank-backed omnichannel retail startup FirstCry has finally filed its draft red herring prospectus (DRHP) with the market regulator SEBI for raising INR 1,816 Cr through fresh issues of shares.

The IPO offer also comprises an offer-for-sale complement which will allow the startup’s investors to sell up to 5.4 Cr equity shares.

If we talk about the startup’s financials, in the first three months of the ongoing financial year i.e., FY24, Brainbees Solutions Limited has reported a sales of INR 1,406.9 Cr on a consolidated basis. The ecommerce unicorn primarily earns from selling babycare products on its platform. Including other income, FirstCry’s total income in Q1 of FY24 stood at INR 1,426.8 Cr.

The first three months’ sales is almost 25% of the startup’s entire FY23 sales. In FY23, FirstCry’s consolidated operating revenue stood at INR 56,32.5 Cr, a 135% increase from INR 2,401.2 Cr it had reported in the previous fiscal year.

Including other income, total income stood at INR 5,731.2 Cr in FY23, a jump of 127.7% from INR 2,516.9 Cr in FY22.

In the Q1 of FY24, FirstCry incurred a net loss of INR 110.4 Cr. FirstCry posted a consolidated net loss of INR 486 Cr in the financial year 2022-23 (FY23), a 518% increase from INR 78.6 Cr in the previous fiscal year.

Where Did FirstCry Spend? 

The startup in Q1 of FY24 had reported a total expenses of INR 1,541.8 Cr. In the previous fiscal year, the startup’s total expenditure stood at INR 6,315.6 Cr, a 145% surge from INR 2,568 Cr in FY22.

Procurement Cost: Being a marketplace, FirstCry has spent INR 904.4 Cr for procuring products. This was almost 59% of the startup’s total expenditure in the first quarter. In FY23, the startup spent INR 3,953.3 Cr for procurement, a 150% increase from INR 1,572.1 Cr in FY22.

Employee Benefit Expenses: In the first quarter of FY24, the startup spent INR 159.2 Cr for employee benefit expenses. This also included INR 45.2 Cr worth of ESOP expenses. In FY23, FirstCry spent INR 769.8 Cr for employee benefit expense, a 127% increase from INR 338.8 Cr

Advertising Expenses: In Q1 FY24, FirstCry spent INR 164.5 Cr almost 10% of the startup’s revenue for the same period. In FY23, the startup spent INR 416.4 Cr, a 55% increase from INR 268.6 Cr in the previous fiscal year.

FirstCry’s IPO offer also includes an offer-for-sale element to it. The offer includes an OFS component comprising 5.4 Cr equity shares. Japan’s SoftBank, which owns over 25% stake, will sell the most with up to 2 Cr equity stakes, whereas Premji Invest will sell 8.6 Mn shares during the OFS. Besides, founder Supam Maheshwari will also sell his stake in the IPO. Interestingly, Maheshwari isn’t selling shares in the OFS.

The startup currently owns 321 modern stores and 615 franchise-owned stores across the country. 

FirstCry has become the third Indian startup to have filed its draft papers in December this year. Earlier this month, coliving workspace Awfis filed DRHP to raise INR 160 Cr via fresh issues and Bhavish Aggarwal’s Ola Electric which is eyeing to raise INR 5,500 Cr via public markets.

The post FirstCry Clocks INR 1,407 Cr Sales In Q1 FY24 appeared first on Inc42 Media.

SoftBank will offload the highest number of shares in Pune-based omnichannel marketplace FirstCry’s initial public offering (IPO). As per the draft red herring prospectus (DRHP), the Japanese investor behemoth will be selling up to 2 Cr shares as part of the offer for sales (OFS) component of the public issue. 

SoftBank’s SVF Frog (Cayman) Ltd holds over 12.4 Cr shares or a 25% stake in the company.

The unicorn’s IPO comprises fresh issues of shares aggregating up to INR 1,816 Cr and an OFS component of up to 5.4 Cr equity shares. 

Besides SoftBank, several others including Mahindra & Mahindra, Premji Invest, private equity investor TPG, Apricot Investments and NewQuest are also offloading their stakes in the IPO.

Mahindra & Mahindra, which holds over 4 Cr shares in FirstCry or almost an 11% stake, will offload over 28 Lakh shares in the OFS. On the other hand, Premji Invest, holding over 2 Cr shares in the startup, will offload 86 Lakh shares.

TPG Growth also holds almost 2 Cr shares in FirstCry and is looking to offload around 39 Lakh of them in the IPO. Meanwhile, TPG’s NewQuest Asia Investments III Limited will offload over 30 Lakh shares in FirstCry IPO.

As an individual shareholder in the startup, Ratan Tata is selling 77,900 shares as part of the IPO.

FirstCry cofounder and CEO Supam Maheshwari, who holds over 2.8 Cr shares in the company, will also sell 18.2 Lakh shares in the IPO. The other cofounder Amitava Saha is selling over 13 Lakh shares.

Founded in 2010 by Maheshwari and Saha, FirstCry is an omnichannel baby and kids marketplace. The unicorn is looking to use the funds raised from the IPO to set up new modern stores and warehouses, invest in its subsidiary Globalbees Brands, and other expenses for growth such as acquisition and more.

In FY23, FirstCry’s net loss surged over 500% to INR 486 Cr from INR 78.6 Cr in the previous fiscal year. Notably, the startup had logged a net profit of INR 215.9 Cr and sales revenue of INR 1,602.8 Cr in FY21. In FY23, the startup clocked a sales of INR 5,632.5 Cr, registering a 135% jump from INR 2,401.2 Cr in FY22.

The post FirstCry IPO: SoftBank To Offload Over 2 Cr Shares appeared first on Inc42 Media.

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.

The post Ola Electric IPO: Decoding The EV Giant’s Shareholding Pattern & People At The Helm appeared first on Inc42 Media.

Pune-based omnichannel marketplace FirstCry’s parent entity BrainBees Solutions Limited has filed draft red herring prospectus (DRHP) with the market regulator SEBI. The Supam Maheshwari-led ecommerce unicorn is looking to raise INR 1,816 Cr through fresh issues of shares.

The offer also includes an offer-for-sale (OFS) component comprising 5.4 Cr equity shares. Japan’s SoftBank, which owns over 25% stake, will sell the most with up to 2 Cr equity stakes, whereas Premji Invest will sell 8.6 Mn shares during the OFS. Founder Supam Maheshwari will also sell his stake in the IPO.

The startup will utilise the net proceeds from the IPO for the following:

• Expenditure for setting up new modern stores and warehouses, as well as lease payments for our existing modern stores in India, totalling INR 648 Cr.
• Investment in the company’s subsidiary FirstCry Trading for overseas expansion via setting up new modern stores in Saudi Arabia totalling INR 155.6 Cr.
• INR 170.5 Cr as an investment in subsidiary Globalbees Brands towards the acquisition of an additional stake in the company’s indirect subsidiaries.
• Investment for sales and marketing initiatives to the tune of INR 100 Cr.
• Technology and data science cost of INR 57.6 Cr.
• The rest would be for funding inorganic growth through acquisition, other strategic initiatives, and general corporate purposes.

The company is also eyeing a pre-IPO private placement of equity shares to certain investors for an amount aggregating up to INR 363 Cr. The amount raised in the pre-IPO round will be reduced from the fresh issue.

For the three months ending June 30, 2023, the company lost INR 110 Cr.  The startup had 8.25 Mn annual unique transacting customers as of June 30, 2023.

In FY23, FirstCry’s net loss surged over 500% to INR 486 Cr from INR 78.6 Cr in the previous fiscal year. Notably, the startup had logged a net profit of INR 215.9 Cr in FY21. The startup clocked a sales of INR 5,632.5 Cr in FY23,  a 135% from INR 2,401.2 Cr in FY22.

FirstCry’s consolidated financials include the financial performance of its 38 subsidiaries, including Globalbees.

The post FirstCry Files DRHP; To Raise INR 1,816 Cr Via Fresh Issue appeared first on Inc42 Media.

Reliance Jio Infocomm chairman Akash Ambani on Wednesday (December 27) said the telecom operator is working with the Indian Institute of Technology (IIT)-Bombay to launch a ‘Bharat GPT’ programme.

Ambani said this while speaking at the institute’s annual Techfest in Mumbai. However, he didn’t provide any other details. 

A person close to the company told Inc42 that the discussions are still in preliminary stages and no agreement has been reached between the two parties yet. 

Inc42 has reached out to the company on the matter and the story will be updated on receiving a response. 

Ambani also said that Jio is also ‘comprehensively thinking’ of launching an operating system (OS) for televisions, adding that the product has been in the works for a while now. 

“We have been working on our own OS for a while now for the TVs and we are comprehensively thinking about how to launch it,” he said. 

Ambani also said that large language models (LLMs) and generative AI have ‘barely scratched’ the surface of the emerging space, adding that the next decade will be defined by AI-powered applications. He said AI would ‘transform every area of products and services’.

Underlining his future plans, the Reliance Jio chairman also said that the telco is working to launch AI both as a vertical inside the company as well as ‘horizontally’ across its operational sectors. He noted that Jio would soon launch AI-powered products and services across its media business, commerce, communication and devices.

During the speech, he also exuded confidence about Jio’s new offering, 5G private networks, saying that the company will roll out a 5G stack to enterprises irrespective of size.

Touting Jio as the world’s largest startup, Ambani urged young entrepreneurs to not be afraid of failing and asked them to work for societal good.

The announcement comes at a time when Jio has undertaken a bevy of new launches from Jio Bharat phones to a potential cloud laptop. Recently, the digital behemoth also announced a partnership with chip designing giant NVIDIA to build an advanced cloud-based AI computing infrastructure.

The company also partnered with TM Forum to open the first TM Forum Innovation Hub in Mumbai which would focus on development of GenAI, LLMs and open digital architecture (ODA).

During the company’s annual general meeting earlier this year, Reliance Group chairman and managing director Mukesh Ambani said India needs to harness AI for innovation and growth to stay competitive.

As per Inc42, India is home to more than 70 GenAI startups that have raised more than $440 Mn between 2019 and Q3 2023.

The post Reliance Jio Working With IIT-Bombay To Launch Bharat GPT: Akash Ambani appeared first on Inc42 Media.

Adani Total Gas Limited (AGTL) has signed a Memorandum of Understanding (MoU) with Walmart owned ecommerce company Flipkart, to support its vision to reduce carbon footprint in the primary, secondary and tertiary movements of goods between sourcing locations, warehouses, and customers.

Under the MoU, ATGL will provide decarbonising solutions to the ecommerce major which will support its journey to switch to cleaner fuel options, including natural gas, and the introduction of electric vehicles.

Adani TotalEnergies E-Mobility Limited (ATEL), which is a wholly owned subsidiary of ATGL, will deploy EV charging infrastructure at Flipkart’s pan India supply chain, including at warehouses and logistics locations. 

The idea is to decarbonise the ecommerce logistics segment which counts for more than 8 Mn shipments per day, through this partnership. In a statement, ATGL and Flipkart said that going ahead, this volume is only set to grow further and requires well thought of solutions to reduce associated carbon emissions.

Commenting on the development, Hemant Badri, SVP and head of supply chain, customer experience, and re-commerce, Flipkart Group, said, “At Flipkart, we are committed to introducing solutions that help us move towards a sustainable future, such as integrating cleaner energy solutions and introduction of electric vehicles in our logistics.”

Flipkart believes that the collaboration with ATGL will play an important role in supporting the company’s net-zero goals and catalysing the complete electrification of its fleet, which is a key part of Flipkart’s larger sustainability vision, Badri added. 

This is the second such deal signed by ATEL in 2023. Earlier this year, it announced partnership with electric cab aggregator Evera to set up an electric vehicle (EV) charging super hub at Samalkha in New Delhi, which will feature an integration of 200 charging points. As a part of the deal, the two companies are also planning to set up AC and DC charging stations on key highways, workplaces, and other locations.

The development comes days after Flipkart was reported to be planning to raise $1 Bn funding, with Walmart’s commitment of $600 Mn. Media reports suggest that this round will see participation from new investors in addition to Walmart and existing stakeholders. 

The post Adani Total Gas Inks Pact To Support Flipkart’s Bid In Decarbonising Supply Chain appeared first on Inc42 Media.

Edtech unicorn Unacademy turned down a tempting $500 Mn debt offer and a host of merger and acquisition (M&A) opportunities, according to its cofounder and chief executive officer Gaurav Munjal, who took to X (formerly Twitter) to share his learnings over the last two years.

Munjal said that the startup faced a lot of flak for these decisions, but after two years, it looks like those choices were correct.

It is pertinent to note that the last two years have been difficult for the Indian startup ecosystem due to the ongoing funding winter, which has resulted in many shutdowns and layoffs. The edtech sector has been among the hardest hit, with the troubles of BYJU’S, once the poster boy of Indian edtech and Unacademy’s rival, stealing the limelight.

“Taking decision from first principles might make you look dumb in the short term but it’s still the right way to take decisions,” Munjal said in a series of posts.

Munjal delved into the nuances of business leadership, emphasising the delicate transition from growth to profitability. Highlighting the difficulties in this transition, the CEO said that growth stage leaders thrive on not being constrained, hence they may not always survive this transition.

“It’s just that Growth Leaders thrive on not being constrained. And the Leaders who work with constrains have a different DNA,” he said.

Munjal said that brand-building as a formidable moat in the absence of deeptech and startups need to build great brands and protect them at all costs.

Munjal suggested that many companies are disproportionately allocating resources, cautioning against overemphasis on performance marketing at the expense of brand and content investment.

“Replace your traditional social media team with influencers who have themselves built content and amassed huge following. They know more about social media that your current team ever will,” he said.

He also said that while great distribution and marketing can initially compensate for a subpar product, sustained success requires a focus on both aspects.

On the edtech sector, Munjal said the blitzscaling approach does not work and suggested a more measured strategy where each transaction generates profit. He also expressed optimism about the sector, adding that online learning is here to stay.

“Online Learning is here to stay. Duolingo is generating $100M of Cash Annually and is now valued at $10B. Honestly, this is just the start for Online Learning,” he added.

Giving an example of Graphy, which Munjal claimed is “growing well” now, he said any zero to one project takes at least 3-4 years to show tangible results.

Graphy is a SaaS platform owned by Unacademy which offers learning management system services to creators in the edtech space.

Meanwhile, the founder also expressed his optimism on tech companies and India’s role in it. “Yes, suddenly everyone is excited about Consumer Goods. But I am extremely optimistic about Tech in the long run even if everyone is bearish about Tech right now. It’s a fallacy that India won’t have great Tech Companies so it’s better to build Consumer Goods Companies.”

He also said that the period before 2022 was an anomaly and startup founders need to adapt to the new reality.

A Sneak Peek Into Unacademy’s 2023

However, earlier this month, Munjal claimed that the edtech unicorn managed to reduce its cash burn by 60% in 2023. He said the company’s current cash reserves extend to more than four years.

He also said that the startup turned cash flow positive in the first quarter of FY24, driven by a reduction in cash burn. Noting that the startup’s online business degrew 30% in 2023, Munjal said that EBITDA improved by 87%. He added that its offline business, Unacademy Centres, saw its learners grow to 32,000 in 2023 from 6,000 in 2022.

In October, Graphy fired around 20-30% of its workforce to focus on its offline business. However, the startup claimed that the job cuts happened on the basis of performance and had nothing to do with layoffs or revenue growth plan.

It is pertinent to note that like all other edtech startups, Unacademy was also hit hard by the funding winter and has laid off 2040 employees since 2022.

Meanwhile, Inc42 reported this month that Unacademy has now decided to stop putting non-performing employees on performance improvement plans (PIPs) and will instead provide a direct exit to such employees.

The edtech major also saw several top exits, including those of CFO Subramanian Ramachandran and COO Vivek Sinha, in 2023.

While Unacademy is yet to file its financial statements for FY23, the startup reported a 85% jump in its consolidated net loss to INR 2,848 Cr in FY22 from INR 1,537 Cr in FY21. Revenue from operations jumped more than 80% year-on-year to INR 719 Cr during the year ended March 2022.

The post Here’s What Unacademy CEO Has Learnt About Saying No To Lucrative Debt & M&A Opportunities appeared first on Inc42 Media.

IPO-bound omnichannel retailer FirstCry’s net loss surged over 500% in the financial year ended March 31, 2023. The Mumbai-based startup posted a consolidated net loss of INR 486 Cr in the financial year 2022-23 (FY23), a 518% increase from INR 78.6 Cr in the previous fiscal year. 

It is pertinent to note that the startup had logged a net profit of INR 215.9 Cr in FY21. 

FirstCry’s consolidated financials include the financial performance of its 38 subsidiaries, including Globalbees.

Founded in 2010 by Supam Maheshwari and Amitava Saha, FirstCry is an omnichannel baby and kids marketplace. The startup converted into a public company last year, taking the first step in its journey to list on the bourses. 

Meanwhile, the startup’s sales crossed the INR 5,000 Cr mark during the year under review. Operating revenue rose 135% to INR 5,632.5 Cr in FY23 from INR 2,401.2 Cr in the previous fiscal year. It primarily earns revenue from the sale of baby care products.

Including other income, total income stood at INR 5,731.2 Cr in FY23, a jump of 127.7% from INR 2,516.9 Cr in FY22.

Where Did FirstCry Spend?

FirstCry reported a total expenditure of INR 6,315.6 Cr in FY23, an increase of 146% from INR 2,568 Cr in FY22.

Procurement Cost: Being an ecommerce marketplace, FirsCry’s biggest expense was its procurement cost. In FY23, the startup spent INR 3,953.3 Cr for restocking its shelf, a 150% increase from INR 1,572.1 Cr in FY22.

Employee Benefit Expenses: FirstCry spent INR 769.8 Cr to pay staff salaries, gratuity, PF and other employee welfare benefits, a 127% increase from INR 338.8 Cr in the previous year. The sharp increase suggests that the startup increased its headcount amid the layoff season. Interestingly, it spent INR 361.4 Cr on ESOPs, an increase of 292% from INR 92.1 Cr in FY22.

Transportation Cost: FirstCry saw a sharp increase in its transportation cost for the year under review. In FY23, the startup spent INR 429.2 Cr on transportation cost, a 604% increase from INR 61 Cr in the previous fiscal year.

Advertising Expenses: Advertising costs shot up 55% to INR 416.4 Cr in FY23 from INR 268.6 Cr in FY22.

FirstCry’s EBITDA margin deteriorated to -2.9% from 4.05% in FY22.

Maheshwari-led startup, which has raised over $700 Mn in multiple rounds till date and counts the likes of SoftBank, Chrys Capital, and Vertex Ventures among its backers, is likely to file its draft red herring prospectus (DRHP) by the end of the month.

As per media reports, FirstCry is looking to raise $500 Mn-$600 Mn from its IPO at a valuation of $4 Bn.

A few months back, three family investment offices – Manipal Group’s Ranjan Pai’s MEMG Family Office, Marico’s Harsh Mariwala’s investment office Sharrp Ventures, and the DSP family office of Hemendra Kothari – picked up stakes in the startup for about INR 435 Cr in a secondary round from SoftBank. 

The post IPO-Bound FirstCry’s FY23 Loss Zooms Over 500% To INR 486 Cr appeared first on Inc42 Media.

Electric vehicle (EV) financing startup Revfin has raised $14 Mn in its Series B funding round, led by Omidyar Network. 

Omidyar Network, which earlier this month announced its decision to exit the Indian market by the end of 2024, invested $5 Mn in the funding round, Revfin said in a statement.

The round also saw participation from Asian Development Bank, Companion Capital Limited, and existing investors Green Frontiers Capital and LC Nueva. 

The startup said that the funding will help it facilitate financing for a range of EVs, such as two-wheelers and three-wheelers. 

Besides, Revfin also aims to use the fresh funds to finance the other components of the EV ecosystem, including the development of charging stations and batteries.

“This funding will empower us to further enhance the EV ecosystem and contribute to the growth of all types of electric vehicles in India. Our unwavering commitment to revolutionise digital lending remains strong, and we look forward to the opportunities ahead,” Sameer Aggarwal, founder and CEO of Revfin, said. 

Founded in 2018 by Aggarwal, the Delhi NCR-based startup provides loans for buying two-wheelers, three-wheelers, and small fleets of EVs. Revfin claims to make financing accessible through non-traditional data such as biometrics, psychometrics, and gamification. It claims to have financed over 34,921 EVs till date and aims to finance 2 Mn EVs in the next five years.

Earlier this year, Revfin bagged a debt funding of $5 Mn from the US International Development Finance Corporation (DFC). The startup then said it would use the funds to strengthen its presence in the country and introduce new products by diversifying into two-wheelers for last-mile deliveries, four-wheelers for mid-mile cargo delivery, and ride-share taxis. 

Overall, Revfin has raised a total funding of $75 Mn through debt and equity till date.

The development comes at a time when the EV financing landscape is seeing a paradigm shift in the country owing to the increasing adoption of EVs. A number of EV original equipment manufacturers are tying up with financial institutions to facilitate loans. For instance, Ola Electric has entered into partnerships with Shriram Finance and other institutions to facilitate EV sales through accessible loan options. 

Meanwhile, the space has also been seeing a lot of interest from investors. Recently, B2B SaaS startup Finayo, which connects its lending partners with customers of EV retailers and OEMs through its AI-powered platform and helps them make credit decisions quickly, raised INR 16 Cr (around $1.9 Mn) in a mix of debt and equity funding. 

Last week, Delhi NCR-based electric mobility startup BluSmart also raised $24 Mn in a fresh equity funding round.

The post EV Financing Startup Revfin Bags $14 Mn Funding From Omidyar Network, Others appeared first on Inc42 Media.

In another trouble for edtech giant BYJU’S, Code.org, a non-profit organisation in the United States, has filed a lawsuit against the edtech decacorn’s subsidiary WhiteHat Jr in the California district court for not paying required fees while continuing to use its platform.

WhiteHat Jr entered into a partnership with Code.org in 2022 under which the former committed to paying $4 Mn over a four-year period to licence the latter’s coding education platform, Techcrunch reported.

However, Code.org, in the lawsuit filed this month, has alleged that WhiteHat Jr failed to adhere to the agreed-upon payment schedule while still utilising its coding courseware, the report said. 

It is important to note that BYJU’S acquired WhitHat Jr for $300 Mn in 2020. 

BYJU’S was not immediately available to respond to the development. The story will be updated on receiving a response from the Byju Raveendran-led startup.

According to the report, Code.org has alleged that WhiteHat Jr paid the fee for 2022 but informed the former earlier this year that it would not be able to make the remaining payments under the deal.

Code.org has alleged that WhiteHat Jr sought an amendment to the original agreement to rearrange the outstanding licence fee payments. Code.org’s legal team contends that the initial contract explicitly states that, even in the case of termination, WhiteHat Jr remains obligated to fulfil all future licensing payments that are still due.

“To this day, Whitehat has failed to pay either the Q1 2023 invoice or the Q2 2023 invoice. In fact, despite repeated written and oral requests by Code.org for payment, Whitehat has not paid anything at all beyond the $1,000,000 that it paid pursuant to the 2022 invoices before the Agreement was amended,” Code.org lawyers alleged, as per the report. 

It must be noted that after the release of BYJU’S consolidated financial statements for FY21, Raveendran had called WhiteHat Jr the “under-performer”. Later, the startup rebranded WhiteHat Jr as ‘BYJU’S Future School’.

The latest development comes at a time when BYJU’S is fighting fire on multiple fronts. The startup has been grappling with a series of challenges, including a legal dispute with lenders over a $1.2 Bn Term Loan B, financial constraints, cash burn, layoffs, high-profile leadership departures, auditor resignations, and scrutiny from the Enforcement Directorate for alleged FEMA violations.

At its annual general meeting (AGM) last week, stakeholders gave their nod to the company’s much-delayed financial statements for FY22.

Before that, the startup had disclosed selective numbers of its standalone operations in FY22. It said that its parent Think and Learn Private Ltd reported a standalone EBITDA loss of INR 2,253 Cr in FY22 as against INR 2,406 Cr in FY21.

Meanwhile, Raveendran has reportedly asked BYJU’S investors to infuse $300 Mn in the company to increase their stake following their demand to revamp the board so that they can have a bigger say in the company’s operations.

The post Code.org Sues BYJU’S Subsidiary WhiteHat Jr In The US Over Pending Licence Fees appeared first on Inc42 Media.

Coworking space provider Awfis filed its draft red herring prospectus (DRHP) with the market regulator, the Securities and Exchange Board of India (SEBI) last week, joining the list of Indian startups aiming to go public next year.

Awfis’ public issue will comprise a fresh issue of shares worth INR 160 Cr and an offer-for-sale (OFS) component of up to 1 Cr shares.

The OFS component includes the sale of up to 50.11 Lakh equity shares by Peak XV Partners, up to 49.36 Lakh equity shares by Bisque Limited, and up to 75,174 equity shares by Link Investment Trust.

The startup plans to invest INR 52.5 Cr from the net proceeds to set up 15 new coworking spaces in FY25 across Mumbai, Bengaluru, Delhi NCR, Hyderabad, Pune, Chennai, Kolkata, Ahmedabad, Lucknow, Bhubaneswar, and Jaipur. 

It plans to use INR 68 Cr for its working capital requirements and the remaining proceeds for general corporate purposes.

Now, let’s take a look at the shareholding pattern of the startup.

Zooming Into Awfis’ Shareholding Pattern

According to the draft IPO documents, Awfis has 11 shareholders holding 1% or more of the total equity capital on a fully diluted basis.

Mauritius-based investment firm Bisque Limited is the largest shareholder in the startup, owning 1.57 Cr fully-diluted equity shares, which amount to around a quarter of the total equity capital. 

Peak XV Partners, one of Awfis’ early backers, is the second largest stakeholder. The investment major owns 1.53 Cr shares or nearly 23% of the fully diluted equity capital.

The founder, Amit Ramani, holds around 1.22 Cr fully diluted equity shares of the startup he set up, accounting for an 18.19% stake. Hungama Digital cofounder and ace investor Ashish Kacholia (5.01%) and Jubilant Bhartia Group promoter and Emerge Capital cofounder Arjun Bhartia (1.57%) are the other major individual shareholders in the group. Bhartia also holds a 1.31% stake in Awfis via Emerge Capital.

Early backer QRG Investments is the third largest stakeholder in the company still, as it holds more than 64 Lakh shares worth 9.58% stake on a fully diluted basis. VBAP Holdings is the fourth largest stakeholder in the coworking space provider, owning a 9.35% stake. 

Interestingly, Yadu Hari Dalmia, son of Dalmia Bharat Group’s founder Jaidayal Dalmia and one of India’s most affluent businesspersons, holds a 1.89% stake in Awfis via the Shri Brahma Creation Trust.

The Coworking Space Provider’s Business Model

Founded in 2015 by Ramani, Awfis caters to freelancers, startups, SMEs, large corporates, and MNCs and offers coworking solutions. The startup, which claims to be India’s largest coworking space provider based on the total number of centres, has diversified significantly from just offering coworking centres.

“We provide a wide spectrum of flexible workspace solutions ranging from individual flexible desk needs to customised office spaces for startups, small and medium enterprises as well as for large corporates and multinational corporations,” the startup said in its draft IPO documents.

As such, the startup primarily earns revenue from coworking spaces. As of June 30, 2023, it had 121 operational centres across 16 Indian cities, with 70,242 seats. It also claims to have had 2,139 clients by the same time. These spaces are divided as follows:

• Coworking: The startup has two segments within coworking – its core service, Awfis, and the premium service, Awfis Gold. The coworking spaces comprise fixed desks, flexi desks, and cabins. Flexi desks are the cheapest, starting at around INR 5,000 and going up to INR 12,000 per month, depending on the location and the city. This service allocates a different desk each time a user enters the coworking space. The fixed desk service, on the other hand, allows users to have a single desk throughout the duration. This service starts at INR 8,000 and goes up to INR 18,000 per month, based on the city and the location. Cabins are the most expensive coworking space option Awfis has on its catalogue, with prices starting from INR 9,000 per seat per month and going up to INR 62,000 per seat per month. The cabins can be anywhere between one and eight seaters.

• Mobility: The mobility segment is based on a pay-per-use business model, which allows companies to pay as they use the coworking space day-to-day. The startup also offers meeting rooms, charged hourly. Awfis also offers day passes within its standard and gold service. Awfis also allows companies to have an address at a prime location via its ‘Virtual Office’ service, and with the premium version of that service, a company can also get a GST linked with the said address as well. Virtual offices start at INR 1,499 per month.

The startup also offers several other workspace-related services, such as a renovation and interior design service called Awfis Transform, and a maintenance and upkeep service, Awfis Care.

Awfis reported revenue of INR 545.28 Cr in FY23 as against INR 257.05 Cr a year ago. Its net loss declined slightly to INR 46.64 Cr in FY23. In the first three months of FY24, the coworking services provider reported an operating revenue of INR 187.7 Cr, while its loss stood at INR 8.3 Cr.

The post Awfis IPO: Decoding The Coworking Space Provider’s Shareholding Pattern appeared first on Inc42 Media.

Troubled edtech major BYJU’S CEO Byju Raveendran has reportedly asked its investors to infuse $300 Mn into the company in lieu of larger shareholding in the company.

The recent development comes at a time when BYJU’S is facing multiple legal and governance hassles, with the edtech company’s shareholders insisting on revamping the board.

The company’s shareholders have asked Raveendran to revamp the board so that they can have a bigger say in company operations, Business Standard reported, citing a source close to the matter.

“Raveendran has asked them to infuse about $300 Mn in return for more control in the firm,” the person added.

The matter is reportedly under negotiations and a deal might materialise in a few months.

BYJU’S wasn’t immediately available to confirm the matter to Inc42.

Till date, the beleaguered edtech decacorn has raised around $6 Bn in funding so far from marquee investors including the Qatar Investment Authority, General Atlantic, Sumeru Ventures, Vitruvian Partners, BlackRock, Peak XV Partners, Chan Zuckerberg Initiative, Tencent, and Tiger Global.

In the recent past, BYJU’S has found itself embroiled in multiple problems, including a legal battle with its lenders over the repayment of its $1.2 Bn Term Loan B, severe funding crunch, cash burn, mass layoffs, top-level leadership exits, auditor’s resignation, and the resignation of some top stakeholders. It has also come under the Enforcement Directorate’s (ED) radar for alleged FEMA violations.

BYJU’S held its annual general meeting (AGM) last week where the stakeholders approved its financial statements for FY22. 

BYJU’S said in a statement last month that excluding all acquisitions, its parent entity – Think and Learn Private Ltd – reported an EBITDA loss of INR 2,253 Cr in FY22, which stood at INR 2,406 Cr in FY21.

The entity’s total income stood at INR 3,569 Cr in FY22 as against INR 1,552 Cr in the previous fiscal year, it said without revealing other important metrics of the significantly delayed financials. 

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