Japanese investment major SoftBank, which has not been striking any funding deals in India lately and is drawing up to offload stakes in bourse-bound Ola Electric and FirstCry, still holds shares of $1.1-1.2 Bn in its listed portfolio companies here.

As per ET’s report, Softbank has sold stakes worth $1.8-1.9 Bn during the public offerings and through post-listing sales in four Indian startups — Paytm, Zomato, PB Fintech and Delhivery — that went public in 2021 and 2022. It had invested a total of $2.3-2.4 Bn in these four new-age companies.

Among the four listed companies, Paytm is proving to be a drag on SoftBank’s investments in India. In July, SoftBank offloaded over 2% stake in Paytm’s parent entity One97 Communications worth about $300 Mn. Earlier in May, SoftBank offloaded over a 2% stake in the company.

In December, SoftBank offloaded 2.53% of its stake in Gurugram-based parent of Policybazaar PB Fintech, through multiple block deals, amounting to a cumulative INR 913.7 Cr ($109 Mn).

Following the transaction involving 1.14 Cr shares, SoftBank now holds 83.23 Lakh shares in PB Fintech.

On December 8, SoftBank offloaded 9.35 Cr ($1.1Mn) shares of foodtech giant Zomato in an INR 1,127 Cr block deal. 

On November 17, approximately 1.8 Cr shares, constituting 2.51% of equity in Gurugram-based logistics firm Delhivery, were exchanged in a deal valued at INR 747 Cr ($89.6 Mn), with each share priced at INR 403.51.

SoftBank’s approach to reduce its holdings through secondary sales, while staying away from new investments is in line with most growth and late-stage investors who have slowed down on investments over the last 15-18 months. 

Having funded nearly a fifth of India’s 100+ unicorns (startups with valuations exceeding $1 Bn), SoftBank has invested a total of $15 Bn in the country. The SoftBank Vision Fund accounts for $11 Bn of this investment, with the remaining $4 Bn allocated to sectors like renewable energy and infrastructure.

SoftBank is the largest institutional shareholder of Ola Electric and FirstCry. Both the companies have filed draft papers for their initial public offerings last month.

As per ET, while Ola Electric is looking for a $7-8 Bn valuation in its public offering, FirstCry is estimated to be valued at around $4 Bn. At these valuations, SoftBank is expected to sell stakes worth approximately $180 Mn in FirstCry and $45-50 Mn in Ola Electric.

In Ola Electric, SoftBank will be selling 23.8 Mn shares, representing a 0.65% stake, while in FirstCry, it is planning to offload 20.3 Mn shares, or a ~4.5% stake, as per their draft IPO documents. After the IPO, it would still hold stakes worth an estimated $840-850 Mn in FirstCry and $1.4-1.6 Bn in Ola Electric, at IPO valuations.

The post SoftBank Made $1.8-1.9 Bn By Offloading Shares In Four Listed Indian Startups appeared first on Inc42 Media.

Within India’s ever-evolving business landscape, micro, small and medium enterprises or small and medium enterprises (MSMEs/SMEs) are pivotal drivers in propelling the country’s economic growth.

With a sprawling network of more than 32 million units, the MSME sector serves as a major employer, creating jobs for around 70 million individuals and manufacturing an impressive array of over 6,000 products. The sector’s impact is notable, contributing approximately 45% to the manufacturing output and influencing about 40% of the country’s exports, both in direct and indirect capacities.

As a country that is advancing in MSME financing, there has been a growing concern of inherent security associated with the underlying business-to-business transactions. Trade credit as a tool plays a crucial role in driving these payments for a more flexible and sustainable growth.

The Canvas: How Trade Credit Is Effective In Amplifying Economic Resilience

According to a recent data, there are more than 10 million registered MSMEs and SMEs, which clearly demonstrate the sector’s liveliness. The substantial sway of trade credit becomes evident, indicating that a considerable portion of these businesses actively employ this financial strategy.

The data indisputably illustrates that a noteworthy percentage of companies opt for trade credit, adeptly handling the intricate network of B2B transactions and emphasizing its indispensable role in bolstering economic resilience.

Challenges Ahead: Dealing With Complexity

Nevertheless, behind this tale of achievement, there are obstacles that require careful consideration and well-thought-out remedies. The dynamic nature of the business environment poses challenges for the optimal utilization of trade credit by MSMEs and SMEs.

An evident obstacle is the insufficient understanding among firms on the complexities of trade financing, particularly among smaller enterprises. The lack of knowledge leads to inefficient use and missed chances for expansion.

Another obstacle is in the intricate network of regulations that control trade credit, which presents difficulties for businesses aiming to navigate efficiently. The simplification and optimization of regulatory procedures are essential to enable MSMEs and SMEs to access trade financing without excessive bureaucratic burdens.

Advocacy & Solutions: Charting The Path Ahead

When confronted with difficulties, it is crucial to advocate for and implement proactive solutions that empower firms to fully utilise the potential of trade credit.

Multiple strategic actions can cultivate an atmosphere in which MSMEs and SMEs efficiently employ trade credit to promote growth.

Let’s take a look at them:

1. Knowledge Empowerment Programs: By initiating focused awareness campaigns and training programs, the knowledge gap is narrowed, enabling enterprises to acquire the necessary insights to efficiently utilise trade credit. Partnerships among industrial associations, financial institutions, and government agencies promote the spread of knowledge.

2. Adopting Regulatory Reforms: It is of the utmost importance to encourage various regulatory reforms that would streamline the processes that are related with trade credit. In order for businesses to safely traverse the legal landscape, it is necessary for them to engage with legislatures in order to develop a regulatory environment that is favourable.

3. Embracing Technological Innovation: Technology becomes a transformative force. The digitization and automation of payment processes have several benefits, including boosting revenue, lowering reconciliation expenses, enhancing productivity and efficiency, delivering an enhanced payment experience for clients, and significantly saving time and costs. Moreover, the utilization of a centralized platform allows users to monitor cashflows with greater efficiency.

4. Collaborative Platforms and Networking: Creating platforms that unite enterprises, financial institutions, and trade credit experts promotes an atmosphere conducive to collective knowledge exchange. Networking possibilities offer significant insights and mentorship, facilitating the efficient navigation of complications related to trade finance.

5. Encouraging Financial Literacy: Programs for MSMEs and SMEs help business owners make trade finance decisions. These specialised programs cover trade credit, financing and risk management beyond general training. Practical application and theoretical understanding are emphasised to help MSMEs and SMEs develop sound financial strategies adapted to their needs. These programs improve business owners’ financial literacy, enabling them to trade more confidently. This information infusion helps MSMEs and SMEs thrive and survive in competitive business environments.

In Conclusion: Developing A Strategic Plan For Achieving Economic Stability And Adaptability

India’s MSMEs are currently facing a crucial moment in terms of their economic expansion. The strategic application of trade financing can act as a catalyst for their capacity to endure adversities and attain success. Addressing barriers head-on and advocating for solutions maximises the potential of trade credit in B2B transactions.

It entails developing a well-thought-out strategy that allows companies to thrive and have a substantial impact on the nation’s economic environment. Through the integration of cooperative initiatives, marketing efforts, and strategic planning, trade credit acts as a beacon, guiding micro, small, and medium enterprises (MSMEs) towards sustainable growth and financial resilience.

Note: The views and opinions expressed are solely those of the author and does not necessarily reflect the views held by Inc42, its creators or employees. Inc42 is not responsible for the accuracy of any of the information supplied by guest bloggers.

The post Unlocking Growth: How Tapping Trade Credit Will Enhance Financial Fluidity In B2B Operations appeared first on Inc42 Media.

In recent years, India’s startup ecosystem has undergone a remarkable transformation, securing its place as the third-largest startup hub worldwide.

This burgeoning sector not only revolutionises the country’s technological landscape but also serves as a crucial catalyst for driving employment and economic growth. 

Current State Of The Indian Startup Ecosystem

India’s startup ecosystem boasts over 1,00,000+ startups. The capital invested between 2014 and 2023 surpasses a staggering $146 Bn, signifying a robust financial foundation for innovation and growth. 

Moreover, the presence of more than 20K+ active startup investors and 112 unicorns with a combined valuation of $500 Bn+ solidifies India’s status as a global hub for entrepreneurial endeavours.

The Future of Jobs Report 2023 by the World Economic Forum anticipates positive developments in jobs and skills over the next five years. While most technologies are projected to positively impact employment, about a quarter of jobs are expected to undergo changes, driven by various factors, including the green transition.

Young Firms And Their Crucial Role In Economic Growth

The up-or-out dynamics of young firms are identified as crucial for economic growth. Experimentation with novel business concepts, inherent to startups, contributes significantly to technological advancements. 

Success results in improvements in technology, thereby promoting economic growth. However, failure is an intrinsic part of the experimentation process, and startups disproportionately contribute to this cycle.

Job Creation: Addressing Unemployment Concerns

Tech startups are emerging as powerful engines of job creation in India, directly employing over 10.34 lakh individuals in 2023. This number is expected to soar in the coming years, providing a substantial solution to the nation’s growing unemployment concerns. 

The rapid growth of tech startups generates a plethora of new employment opportunities, particularly benefiting India’s young and tech-savvy workforce. These opportunities span diverse domains, including software development, data analytics, marketing, and customer service.

Skill Development And Upskilling: Nurturing A Future-Ready Workforce

Beyond job creation, tech startups are actively contributing to the development and upskilling of India’s workforce. Engaging in training and skilling programs, startups are equipping their employees with the latest technological advancements and industry-specific knowledge.

This focus on skill development is crucial for preparing India’s workforce to meet the demands of the ever-evolving digital economy.

Innovation And Entrepreneurship: Catalysts For Economic Transformation

Tech startups are at the forefront of innovation, continually pushing the boundaries of technology and introducing disruptive solutions across various sectors. This spirit of innovation is driving economic transformation, fostering the emergence of new industries, and enhancing India’s global competitiveness.

Simultaneously, tech startups are cultivating a culture of entrepreneurship, inspiring more individuals to pursue their ventures and contribute to India’s economic growth.

Global Recognition And Foreign Investment Influx

The success of Indian tech startups is gaining global recognition, attracting significant foreign investment and fostering international partnerships. This influx of capital is fueling the growth of India’s startup ecosystem, enabling startups to expand their operations, reach new markets, and further contribute to the country’s economic development.

Challenges And Opportunities: Navigating The Path Forward

Despite the remarkable progress, the Indian tech startup ecosystem faces challenges such as funding accessibility, particularly for early-stage ventures, and the need for a supportive regulatory environment.

However, the opportunities for growth far outweigh these challenges. Government initiatives, such as the Startup India program, provide crucial support to the sector. Additionally, the increasing adoption of technology across industries is creating a fertile ground for startups to thrive.

Conclusion: Shaping India’s Economic Destiny

In conclusion, tech startups are undeniably playing a pivotal role in shaping India’s economic future. Their contributions to job creation, skill development, innovation, and attracting foreign investment are driving economic growth and transforming the country’s employment landscape.

As India continues its journey towards becoming a global economic powerhouse, the tech startup ecosystem is poised to assume an even more significant role in shaping the nation’s destiny. The collaborative efforts of entrepreneurs, supported by government initiatives, are laying the foundation for a future where innovation thrives, jobs abound, and India stands as a beacon of global technological prowess.

The post Tech Startups In India: A Driving Force For Economic Growth And Employment appeared first on Inc42 Media.

Standing on the precipice of 2023, we took note of some of the most concerning funding trends in the world’s third-largest startup ecosystem.

According to Inc42’s annual ‘Indian Tech Startup Funding Report 2023’, Indian startups secured just over $10 Bn in funding until December 25 this year, down 60% compared to the $25 Bn raised in 2022.

Not just this, deal count, too, withered 40% YoY to 897 as the investor appetite waned due to several startup misadventures during the year. Historically, Indian tech startup funding hit a seven-year low, plummeting even below the $13 Bn raised in 2019.

However, despite the massive shortfall, the likes of fintech, ecommerce and enterprise tech continued to lead the funding scenario in the Indian startup ecosystem.

According to Inc42, these three sectors accounted for more than two-third of the total funding raised by Indian startups in 2023. Interestingly, the sectors also contributed to more than half of all startup funding deals that took place in the homegrown startup ecosystem in 2023.

As the three sectors continued to dominate the startup food chain in the country, let us take a look at what the funding scenario looked like in different sectors in 2023.

Fintech: The Shining Jewel in India’s Startup Crown

In 2023, as many as 129 fintech startups cumulatively raised $3.02 Bn, according to Indian Tech Startup Funding Report 2023. 

Even though the figure was down 37% compared to the $4.8 Bn raised a year ago, fintech remained the shining jewel in India’s startup crown as the most funded sector.

In the fintech realm, lending tech was the top choice of investors, as nearly 40% of all fintech funding ($1.2 Bn) went to lending tech startups. Subsectors like banking and fintech SaaS bagged $971 Mn and $348 Mn, respectively, during the year.

Looking at stagewise funding, early stage fintech startups saw the worst year-on-year decline in funding at 54%. Meanwhile, growth and late stage startups also saw a funding meltdown of 33% and 36%, respectively.

Ecommerce Held Its Ground

Given India’s rapidly rising population of online shoppers, it is no surprise that ecommerce remains one of the top-funded startup sectors. However, investors’ second-most favourite sector, too, could not escape the chills of the funding winter.

Until December 25, 2023, as many as 192 ecommerce startups ended up securing $2.6 Bn in funding in 2023, down 32% YoY compared to $3.2 Bn in 2022. The three subsectors within the ecommerce realm that took the most sectoral funding were D2C, B2C and B2B. Meanwhile, D2C startups attracted $1.4 Bn in 2023. 

In terms of stagewise funding split, seed stage startups suffered greatly and could only raise around $89 Mn in 2023, down 65% YoY. 

Enterprise Tech Takes A Deep Plunge Over The Years

As the Indian startup ecosystem moves towards correction, businesses across sectors, from manufacturing to finance, are increasingly relying on tech solutions for automation, efficiency, and growth. This has created a steady (and unsurprising) demand for enterprise tech products and services.

This made the sector the third most funded sector in India’s vibrant startup ecosystem. Yet, the enterprise tech space witnessed a significant jolt in 2023, as more than 150 startups raised a mere $1.3 Bn compared to a whopping $4 Bn in 2022 and $3.7 Bn in 2021.

Several factors conspired to temper investors’ enthusiasm for this space. The global economic slowdown cast a shadow, raising concerns about return on investment and prompting VCs to tighten their purse strings. 

Deeptech Flourished As The Dark Horse In 2023

On the contrary, deeptech emerged as the dark horse of the year that was otherwise infested with dying investor trust. 

The sector raised $496 Mn in 60+ deals, mirroring a rise of 50% from $397 Mn raised in 2022 and a 105% increase from $242 Mn raised in 2021.

As AI became an inevitable part of daily consumption habits in 2023, VCs and PEs started attaching their investments to startups disrupting established industries and solving complex problems.

Furthermore, the Indian government’s push for indigenous technology development created fertile ground for Deeptech startups to flourish. Initiatives like the National Mission on Quantum Technologies, the draft deeptech policy, Atal Innovation Mission, and the Prime Minister’s Science, Technology and Innovation Advisory Council (PM-STIAC) are further set to provide crucial support in this arena.

Beyond AI, other deeptech sub-sectors like robotics, biotechnology, and materials science are also expected to see significant traction going ahead. 

The potential for these technologies to revolutionise industries and improve lives is drawing increasing attention, attracting both domestic and international investors. Yet, the sector has its challenges. Long development timelines, high investment requirements, and the absence of a quality talent pool cannot be ignored.

Despite the roadblocks, the sector is well poised to play a pivotal role in India’s economic growth.

Other Key Sectors On The Tenterhooks, Too

While the Indian startup economy maintained its momentum, specific sectors found themselves in the passenger seat despite being in the top 10 checklist of investors.

Edtech, once the poster child of startups, faced a harsh reality check in the year of the extended funding winter. Layoffs created sombre headlines as demand crumbled. Parents, previously enthusiastic about filling every learning gap with online courses, tightened their belts amid economic uncertainty. 

The initial frenzy subsided, leaving many startups scrambling for viable business models. Amid all this, investors infused only $283 Mn into fewer than 50 startups. This capital infusion into the sector was down 88% YoY and more than 94% from 2021.

Similarly, the media and entertainment space was also impacted significantly — falling from $3.8 Bn+ raised in 2021 to a mere $285 Mn raised in 2023.  

Moving on, consumer services, a sector catering to several needs, felt the pinch of consolidation. Dominating players captured an outsized share of the market, squeezing smaller providers. Demand congregated in specific subsectors, leaving others neglected. 

Unfortunately, the sector witnessed a 90% decline in funding from $3 Bn+ raised in 2021 to $385 Mn in 2023.

Startup Funding — Outlook For 2024

Overall, the dip in the funding of the Indian startup ecosystem shouldn’t be misconstrued as a decline, experts suggest. The current slowdown is being viewed as a necessary correction and a sign of maturing growth. The initial exuberance has given way to a more measured approach, where investors favour proven business models and sustainable traction over speculative leaps.

Moreover, startup fundamentals have only started to get stronger. While the year proved to be a litmus test for many Indian startups, it also nudged the erring players to focus on the right set of metrics, rooted in hard facts and beyond vanity metrics. 

Even though startup funding levels are at their seven-year low, experts believe this is only a temporary setback, which could pave the way for a more resilient and thriving startup landscape. Meanwhile, notwithstanding the funding chill of the past two years, the ecosystem has much to look forward to in 2024.

[Edited by Shishir Parasher]

The post Here’s How Top Startup Sectors Performed On The Funding Front In 2023 appeared first on Inc42 Media.

With each passing year — and we have had 10 years of recaps and predictions — the future of technology seems less and less certain. But despite the nature of ever-evolving technology, we try to predict where the Indian tech and startup ecosystem is heading.

And so it is in 2024, after the past year that has had its fair share of challenges, success stories and everything in between. We have, of course, taken a look at how the key sectors will look in the new year in our Indian Tech Outlook 2024 series, but there are still some bigger questions to answer:

• Are startups and IPO-bound companies ready for geopolitical headwinds and setbacks?
• Will policies and laws around emerging technologies hold back innovation or spur it?
• Which sectors will face the biggest test with the rise of emerging technologies and regulations around these new areas?
• How will generative AI change the game in 2024 — not only for startups but also for tech behemoths?
• How will the focus on profitability and sustainable models impact Indian VCs, startups and listed tech cos?
• How will the corporate governance debacles of the past two years impact VCs and founders?

We made 24+ predictions last year, and roughly 50% of them were on the mark, while a fair few were just shy of hitting and might come to happen this year. But this time we have eight major predictions for the Indian tech and startup ecosystem for 2024 — along with nine micro-trends that we foresee.

Consumer Services — Get Ready To Pay More For Streaming, Deliveries, Mobility

Platform fees became a thing in 2023 and they are unlikely to be phased out, especially given the clear revenue spike these fees have given to the likes of Swiggy and Zomato.

While Zomato reported two profitable quarters in FY24, Swiggy is also said to be on track to hit the milestone of profitability sometime in 2024. What’s more — both are now charging restaurants a per-order fee as well. So, in some ways, the food delivery giants are turning into double-sided marketplaces.

Quick Commerce Joins Fee Spree: When it comes to quick commerce, similar fees are being tacked on to every order under various names such as handling charges or packaging charges, so expect big announcements from Zepto, Blinkit and Instamart about unit economics improvements.

Ride-Hailing’s Revenue Thirst: On the mobility side, the drive for revenue has resulted in new models such as Ola Prime Plus or Namma Yatri’s subscription plans for driver-partners.

Essentially, the discounts and rebates that were used to grow the user base have given way to the most active users paying a small fee per transaction, or sometimes even for basic services like no cancellations.

Uber, which is striving to turn profitable in India, is also likely to follow suit with such plans in the next year.

OTT Hikes Looming? These platforms are banking on the fact that the most active users will continue to transact, even if other users might drop off. That’s also the rationale that the likes of Netflix and Amazon Prime are likely to use to hike their prices, to defend against the potential threat from a JioCinema-Disney+ Hotstar merger.

Can ONDC Fix Fee Anxiety? The X-factor is ONDC, which could create a new market for the users who grow weary of platform fees. The open network is already bringing some relief to consumers through its seller apps for food delivery and mobility, as we have written in the past year. Expect more such disruptions in 2024.

VC Ecosystem — Consolidation, New Thesis, Partner Rejigs

Partner exits, new fund managers, new funds and old funds slowing down or exiting India altogether —  as we said in our recap of the year for VCs, it wasn’t an easy year, and 2024 is unlikely to come as a relief.

AI Bets With Eye On Exits: The focus on early-stage investments will continue with AI startups getting a bigger chunk of the seed money, but investors are more likely to back those startups that have products and business models ripe for acquisitions by big tech giants.

Deeptech and AI will become a key thesis focus for VC funds as they look for early-stage bets.

After the low returns on existing capital deployed, VCs will prioritise exits in 2024. The movement towards exits began in 2023 when 56% of the investors surveyed by Inc42 reported exits in their portfolio in the year. But it won’t be easy to find the right early bets in GenAI.

Portfolio Consolidation On The Cards: Given the upheaval at VC firms such as Lightbox and Omidyar Network India, we can expect their portfolio companies to face fundraising challenges in 2024. Consolidation of portfolios between firms is also on the cards given that many key partners are looking at new thesis areas.

One also cannot rule out Sequoia-like restructuring when it was rebranded to Peak XV Partners. Foreign funds are definitely watching the regulatory situation closely to restructure their partnerships.

Dry Powder At The Late Stage: Of course, the elephant in the VC room is the dry powder they are holding, and all indications are that this capital will be deployed in pre-IPO rounds or in late stage companies that are set for IPOs in 2025. Investors and startups are anticipating public listings of tech companies in FY25 from the April-June quarter onwards.

As Inc42’s Indian Startup Investor Ranking & Sentiment Survey, 2023 indicates, 38% of investors active in India failed to deploy even 50% of their allocated budget into startups in FY24. Smaller funds will continue to look for early-stage bets to exhaust this dry powder.

In larger funds, the need to deploy this capital will shift focus to late-stage rounds, unlike the past two years when seed was the preferred stage. There is likely to be more pressure on VCs to deploy capital from funds that are running close to expiry.

Big Tech’s Comeback As Investors? Moving on, our conversations with VCs indicate that fundraising will be a struggle for firms as LPs continue to question the ongoing corporate governance debacles.

As a result, big tech companies are slated to once again return to the investment fold after a quiet few years. This is in line with the focus on generative AI startups and AI models emerging in India, which will become attractive acquisition targets for tech behemoths such as Google, Facebook, OpenAI and others.

Fintech — Super App Platforms Will Face The Jio Financial Services Test

If 2023 was the year of super apps, 2024 will be the year of Jio Financial Services (JFS) as Mukesh Ambani’s grand plans in the BFSI space will be seen taking shape.

Jio Wants It All: Already, there are murmurs of Jio disrupting spaces such as consumer durables, merchant lending, personal loans and more. And with the Jio Payments Bank licence, the company is also in the fray to push its payments business which has been lagging behind the competition for many years.

Of course, the likes of Paytm, PhonePe, CRED, BharatPe, Groww and others are unlikely to watch JFS eating their lunch. Expect several new products from these unicorns and listed giants as they push to improve their revenue mix and capitalise on their user base, particularly the ones that are eyeing IPOs in 2025.

Paytm’s Crunch Year: After going through an up-and-down year, Paytm will likely focus on merchant acquisitions in a bigger way as indicated by CEO Vijay Shekhar Sharma, especially given its new lineup of payments devices. This is the best approach for the company, which had to scale back its consumer lending play in late 2023.

Acquisitions On The Card: Of course, one cannot rule out JFS taking the inorganic route to expansion and growth. Reliance Jio and Reliance Retail have banked on high-profile acquisitions in the past few years and this playbook has worked out well for both giants. The fintech landscape’s diversity offers JFS the chance to become the acquisition king in 2024.

Corporate Governance — Serious Consequences For Founders Caught In Legal Probes

Startup founders are used to being in the headlines but not in the way that we saw in 2023. From Ashneer Grover and Rahul Yadav to GoMechanic’s four cofounders and Byju Raveendran, the cofounder and CEO of India’s highest-valued startup (at least till a while back) — many found themselves caught in legal tangles for various reasons.

Lawman Knocking: Some of these founder-related issues are more serious than others with fraud allegations being investigated by the Economic Offences Wing and the Enforcement Directorate. These investigations and inquiries will run their course in 2024, but corporate governance and fraud issues often go under the radar for months before surfacing.

Will many more unicorns and high-profile founders find themselves caught in the legal net? That’s uncertain, but there is a growing concern that a lot of issues have been swept under the rug, and the rejig at VC firms will likely unearth many more cases where founders are hit by fraud allegations.

Erosion Of Trust: “VCs didn’t realise the amount of risk and liability that they are subject to, because they trusted a lot of founders,” at least one early-stage investor told us earlier this year, adding that as this trust erodes there will be more cracks that appear in the woodwork.

However, despite these measures, the sentiment among founders is that investors are not doing enough to improve their role in corporate governance. As Inc42’s Annual Funding Report, 2023 showed 54% of the surveyed Indian founders rated corporate governance measures by investors as moderately or barely effective.

Fate Of IPOs — Geopolitical Tensions Will Complicate Funds Inflow

Ola Electric, Awfis, Firstcry — and a slew of other startups — are lining up for the public markets in 2024. But these best-laid plans could face a curveball with geopolitical conflicts raging in Europe for the past couple of years, in the Middle East and even closer to home in Asia.

A recent EY report looking ahead to 2024 said, “Current events muddy the geopolitical outlook and raise the risk of more significant conflict escalation in the year ahead. But what is crystal clear is geopolitics has become a multiverse: a complex mix of alliances and rivalries, with overlapping bilateral, regional and other types of institutional groupings.”

War, Everywhere: India and Japan are wary of China’s transgressions, while North Korea is reported to be increasing its war-readiness in light of what it believes are US-led confrontations.

For instance, the domestic markets saw some negative sentiments in early October as the Israel-Palestine conflict escalated.

According to investment advisory CapitalMind, “Geopolitical risks create uncertainty, which weighs on economies and equity markets as investors become more risk-averse. This can lead to lower stock prices, especially in the short term.”

Covid Fears Are Back: To make matters worse, there are fears of another wave of Covid hitting big economies — signs of which are already becoming apparent in India. While optimism is high among IPO-bound companies about 2024, they cannot afford to overlook the macroeconomic impact of these conflicts.

The Influence Of Polls: The fact that both India and the US are set for major elections does not make the situation any easier for companies eyeing public markets. In the Indian context, the General Elections will influence market activity and investor confidence to a great extent.

Lightspeed Venture Partners’ managing director Anuj Bhargava believes that generally investors are more cautious and wait for big political events to take shape. “When you have something this substantial coming up, I think people normally like to wait and see the outcome before they make big decisions and IPOs are normally very big decisions… Investors also wait on the sidelines.”

GenAI Revolution — Global AI Regulations; New Realities For Startups

There’s little doubt that 2023 was the year of GenAI and it has already become a crutch that startups and listed companies are relying on to reduce overheads, human resource dependency and more.

But one aspect of the GenAI revolution will become more prominent in 2024 — the push for global or universal regulations to tackle the rise of inauthentic or AI-generated content, ethical AI, deepfakes and other unsavoury aspects in this context.

New Roles, Bigger Budgets: Startups and enterprises will also have to deal with new realities that emerge with the rise of generative AI. For one, we are likely to see more and more companies appoint Chief AI Officers to tackle organisational readiness for emerging technologies.

At least 84% of Indian chief executive officers (CEOs) are raising new capital or reallocating budgets to invest in generative AI, compared to 70% globally, the EY CEO Outlook Pulse 2023 report said.

India-First Models: Startups in LLM ops, AI training, vertical generative AI and localised LLMs will also become more prominent in the year ahead, with India-specific models coming to the fore.

We saw some signs of this in 2023, with the likes of Sarvam AI bagging large early-stage rounds and startups such as Giga ML while the launch of Bhavish Aggarwal-led Krutrim SI was also widely followed by those in the ecosystem.

Early Bets, But Which Ones? The focus of early-stage accelerators is squarely on AI and deeptech too, and in 2024, we are likely to see generative AI become more horizontal than ever before as adoption grows across sectors — even if some of these will largely be experiments for the most part.

Companies are still figuring out how to leverage AI beyond increasing efficiency and reducing turnaround times for customer support, content creation and user experience features.

Peak XV managing director Rajan Anandan told Inc42 in October that India is witnessing the incredible growth of AI and deeptech innovation, as well as the abundant talent in these sectors. “It seems that more and more companies are AI companies today,” Anandan added about the latest cohort of Peak XV’s Surge accelerator.

That said, many investors also acknowledge that early bets can be hit or miss and there is a risk of spray-and-pray in generative AI investments.

Ecommerce — Amazon-Flipkart Duopoly To See Cracks

For years now, ecommerce in India has been all about Amazon and Flipkart. Snapdeal, Paytm Mall and a host of other marketplaces fizzled out, but the two giants have continued to grow larger.

Meesho’s Time To Shine? Between 2019 and 2021, D2C brands tried to shake off the duo but realised they could not afford to ignore their reach and scale. But in late 2022, Meesho looked to break this duopoly, and in 2023, the company claims to have done just that.

While Meesho’s financials are not yet out, the Bengaluru-based unicorn claims to have crossed INR 5,000 Cr in revenue in FY23 and cut its losses by 50%. Meesho’s focus has been on small sellers and low-ticket-price items, which dot India’s unorganised retail channels.

Digitising this class of merchants has seemingly worked out for Meesho, even though Amazon India and Flipkart still have a significant revenue and logistics advantage. In 2024, Meesho is likely to focus on the latter to unlock more efficiencies.

Everyone Joins The Ecommerce Race: Beyond Meesho, Amazon and Flipkart have to deal with Reliance’s JioMart, TataNeu as well as the rapidly-growing quick commerce platforms which have creeped into the marketplace territory with their dark store models. Blinkit sells books and electronics; Swiggy Mall (formerly Maxx) has Dipak Krishnamani, a former Amazon marketing executive, leading the business.

In other words, the duopoly of Amazon and Flipkart has never looked shakier, and 2024 promises to revive the ecommerce royal rumble again. Walmart-owned Flipkart is readying a war chest of $1 Bn to get set for the battle and also take it through to the public listing, similar to what PhonePe did in 2023.

There was some speculation that Meesho might once again revisit its live commerce and social commerce thesis in the near future, through acquisitions of short video platforms. Social platforms such as Josh, Sharechat, Roposo and others have struggled to maintain the momentum they once saw and could become acquisition targets for Meesho and others

Policy Headwinds — New Challenges For Edtech, Ecommerce, Fintech, Big Tech

Continuing on the ecommerce theme, there is another potential headache for the marketplace giants. The Indian government has already stated that the National Ecommerce Policy is coming in 2024, and besides this, the social security code for gig workers could also see the light of day after years of delay in its implementation since the initial announcement.

Rules Of The Ecommerce Game: The ecommerce policy is widely expected to be in favour of small sellers and could further complicate the holding structures of marketplace giants and the alleged preferential treatment for some large sellers. Besides this, discounting and predatory pricing are two other points where the policy could disrupt the existing incumbents, allowing room for more players to break through.

Will Gig Workers Get Their Due? With issues in gig economy platforms persisting in 2023, the social security code could be a much-needed relief for part-time delivery workers and mobility partners. In particular, startups and platforms would have to allocate a portion of their revenue for gratuity, pension, provident fund contributions and insurance of gig workers.

In this context, the rising reliance on platform fees also makes sense. The logic being that companies would charge consumers to pay for workers. How this impacts the profitability of platforms remains to be determined.

The Question Of Data: Another key piece of the policy puzzle is the Digital Personal Data Protection Act and the much-discussed National AI Policy. The former is expected to give a few headaches to fintech, social media, enterprise tech and services companies, while the AI policy is likely to mandate stricter rules to deal with AI-generated content in media.

We have covered the contours of the DPDP Act, which brings clarity to users on how their data can be used by companies and also informs tech startups on how they must deal with users’ personal data, and consent. But, as we reported, many entities have highlighted that the law falters on aspects like implementation and a few other parameters.

All-Important AI Regulations: There is far less clarity on what a potential AI policy might entail, but if recent statements by the government are any indication, there is some momentum on this front as well. In the inaugural statement at the virtual G20 summit, PM Narendra Modi called for using technologies such as AI in a responsible manner.

Union IT minister Ashwini Vaishnaw is said to have discussed the issue of inauthentic content such as deepfakes with representatives of social media platforms in November. Which direction will India’s AI policy take and how significant will India’s mass of users prove in negotiations for global AI regulations, even as big tech companies such as Google, OpenAI, Facebook and others dominate this space. Expect more clarity on this in 2024.

…And Nine Other Trends (Very Briefly)

1. Casual & Mid-Core Gaming To Change The Game As RMG Fades Into The Background 
2. More Unicorns Eyeing India IPOs Will Look To Reverse Flip 
3. Green Hydrogen, Circular Economy Will Take Climate Tech Beyond EVs
4. Mid-sized IPOs To Be The Theme Of 2024 In The Public Markets
5. Generative AI Will Be The Latest Reset In Edtech After Hybrid Models
6. Kirana Tech Wave Of 2020 Will Die Down, Acquired By Quick Commerce Leaders
7. Geopolitical Tensions Will Clip Global Ambitions Of B2B Players
8. Social Media Platforms Will Bank On GenAI To Fill Creator Gap
9. Generative Coding Will Change Cybersecurity Game — For Attackers And Defenders

The post Inc42’s Indian Tech & Startup Predictions For 2024 appeared first on Inc42 Media.

When it comes to the dynamic landscape of finance, venture capital (VC) and private equity (PE) have emerged as potent tools driving innovation and growth across various industries. 

Navigating the complex terrain of these investment strategies requires not only financial acumen but also a keen understanding of the legal intricacies that can significantly impact the success of ventures. 

A clear knowledge of the essential legal considerations for savvy investors aiming to make informed and strategic choices can be really helpful as well as keep the investors safe from the risks of investment.

Let’s explore the different facets of these two types of funds—VC and PE—and find out some legal must-knows for smart investing and reducing risks:

Venture Capital Vs Private Equity Funds

Before diving into the legal landscape, it’s crucial to understand the diverse nature of VC and PE funds. 

Venture capital funds typically invest in early-stage startups with high growth potential. On the other hand, private equity funds target more mature companies, aiming to drive operational improvements and increase profitability. 

Within these broad categories, there are various specialised funds, such as seed-stage funds, growth equity funds, and buyout funds, each catering to specific investment objectives.

Process Of Investing

The investment process in VC and PE involves rigorous due diligence, negotiations, and strategic decision-making. Legal considerations begin at the outset with the drafting and negotiation of term sheets, outlining key terms and conditions. 

The due diligence phase involves a comprehensive legal examination of the target company, assessing issues such as regulatory compliance, intellectual property rights, and contractual obligations. 

Negotiating definitive agreements, including shareholder agreements and purchase agreements, is a critical legal step in finalising the investment.

Associated Risks and Rewards

While VC and PE investments offer lucrative returns, they are not without risks. Legal due diligence is essential to identify potential legal pitfalls that could impact the success of an investment. 

Regulatory compliance, contractual obligations, and intellectual property-related concerns are among the key legal risks. 

On the flip side, successful navigation of these risks can lead to substantial rewards, including capital appreciation, significant equity stakes, and active involvement in the strategic direction of the invested companies.

Smart Investing With Legal Must-Knows

To ensure smart investing in VC and PE, investors must be well-versed in the legal considerations that underpin these transactions. Here are some crucial legal must-knows: 

1. Regulatory Compliance: Understanding and navigating the regulatory landscape is paramount. Compliance with securities laws and other regulations governing investments is critical to avoid legal complications.

1. Due Diligence: Thorough legal due diligence is non-negotiable. Investors must scrutinise contracts, regulatory filings, and potential legal disputes to assess the legal health of the target company. It is paramount to assess whether the investee companies have complied with the applicable laws related to their business operations.

1. Contractual Agreements: Well-drafted and negotiated contractual agreements, including term sheets, shareholder agreements, and purchase agreements, are the bedrock of successful investments. Clarity on rights, obligations, and dispute resolution mechanisms is vital.

1. Exit Strategies: Developing and understanding exit strategies is integral to the investment process. Whether through an initial public offering (IPO) or a strategic acquisition, legal considerations play a pivotal role in successful exits.

1. Intellectual Property Protection: Safeguarding intellectual property is crucial, especially in technology-driven industries. Investors must ensure that the target company has robust IP protection measures in place.

In the fast-paced world of investments, smart investing goes beyond financial calculations. It requires a comprehensive understanding of the legal landscape that surrounds these investments. 

From regulatory compliance to meticulous due diligence and well-crafted contractual agreements, legal considerations are integral to mitigating risks and unlocking the full potential of VC and PE investments. 

For investors aiming to navigate this intricate terrain, partnering with a reputable law firm with expertise in private equity and venture capital is not just a wise choice; it’s a strategic and legal risk-mitigating imperative. 

With a solid legal foundation, investors can embark on their journey towards smart and successful investments in the ever-evolving world of finance.

The post The Investor’s Handbook: Navigating Legal Landmines In Private Equity And Venture Capital appeared first on Inc42 Media.

India’s economic landscape remains robust, showcasing a GDP growth hovering around 7%. The country’s allure as an investment destination has strengthened, drawing attention from global investors eager to capitalise on the nation’s economic potential.

While 2022 and a significant part of 2023 witnessed a sluggish pace in venture capital activity, recent indicators suggest a positive turn. The robust subscription rates of Initial Public Offerings (IPOs) and the buoyant stock market have injected optimism into the investment ecosystem.

In 2023, Indian venture capital saw a measured deployment of approximately $10 Bn. This slowdown, however, played a pivotal role in instilling discipline within startups, putting an end to the funding bubble that had sustained weak business models. 

The influx of capital in 2020 and 2021 may have exceeded the absorption capacity, leading to a more discerning investment environment.

Capital Crunch For Growth And Late-Stage

The year 2023 experienced a scarcity of capital for growth and late-stage funding, with only 17 rounds exceeding the $100 Mn mark. However, a silver lining emerges in the form of an emerging trend among early-stage founders. 

Those with prior experience in scaling startups are entering the arena with a focus on judicious capital utilization, setting a positive tone for the coming years.

As crossover venture capitalists retreated, domestic VCs and family offices stepped up their involvement. The most promising companies are still receiving competitive bids for their equity, signalling a shift in the dynamics of venture capital funding.

India’s Digital March

The digital transformation in India continues unabated, characterised by a widening internet user base and the rapid scaling of digital transactions. The lingering question of monetization is finding robust answers, especially in the realm of content apps. The burgeoning consuming class in India is enthusiastically embracing new-age brands, resulting in accelerated growth for many startups.

The tipping point has been reached, with well over 50% internet penetration. This milestone paves the way for indigenous models to take centre stage, led by founders seasoned in the crucible of scaled startups.

Diversification In VC Funding

In contrast to the United States, where venture capital funding in 2023 leaned heavily towards sectors like Gen AI, India’s funding landscape has been more evenly distributed across a wide set of sectors. This diversification points towards a balanced and adaptable approach to investment, fostering a more resilient ecosystem.

The Road To 2024

The lead-up to 2024 appears promising. The recent resurgence of the IPO market and the anticipation of global interest rates decreasing set the stage for a favourable investment climate. 

The retrospective view of 2023 suggests a strong vintage has been birthed, with a pragmatic take on building with capital efficiency to eventually list in India.  

The opportunity set in India whether to enable business efficiency or to cater to consumer aspirations continues to grow. 

We expect to see more and more startups building for India from India and also find footing in global markets.  To the venture capitalists, I would only say “Feel the fear and do it anyway.”

The post Venture Capital Trends In India In 2023 And The Outlook For 2024 appeared first on Inc42 Media.

“Games are a serious business”. This was the opening phrase of a 2018 article I wrote on the scale and opportunity in the gaming industry, which since then has more than doubled to a revenue of $396.13 Bn in 2023 as compared to $116 Bn back in 2017 – more than the combined movies, OTT and music industries globally. 

Traditionally the largest contributors to this growth have been the US and China. But over the last five years, India has started to emerge as a key player. With over 568 Mn gamers in FY23 and 15.4 Bn mobile game downloads in the same year, India is emerging as one of the fastest-growing mobile gaming markets in the world. 

Fueled by the country’s burgeoning digital consumption, India has rapidly established itself as a global hub for consuming world-class games. At the same time, we see an increase in monetisation as well. With a market size projected to reach $7.5 Bn by FY28, let’s take a look at some key trends driving monetization in the country.

In-App Purchases And In-Game Ad Monetisation Fuelling India’s Gaming Sector

In India today, $1.1 Bn comes from in-app purchases and ad revenue in casual and mid-core games, and this is expected to grow to $5 Bn by FY28, fueling a substantial upsurge in monetisation. 

In FY23 alone, the Indian gaming market witnessed significant growth in in-app purchases (IAPs) and advertising revenues. Leaving aside the predicted fall in IAPs due to the ban on popular titles pioneering in-game monetisation like BGMI and Free Fire, IAP revenue outside these two games grew a remarkable 37% Y-o-Y. 

This reveals growing experimentation for more diverse IPs by Indian gamers. This IAP revenue will play a key role in revenue growth for the industry with a projected CAGR of 46% CAGR till FY28, especially with the rise in monetisation in casual and mid-core games. 

Advertising revenue also continues to be an important anchor when it comes to the overall growth of the industry. With aggregate e-cpm’s in India now over $1, in-game ad revenue is projected to grow at a steady 23% CAGR to reach $1.7 Bn by FY28. 

User Evolution And Its Impact On Monetisation

In our research, we see a 25% conversion of gamers to paid users. The ARPPU (average revenue per paying user) reached $19.2 in FY23, growing nearly 10x since FY19. 

While we’ve mapped the revenue trends, there is much to talk about the evolution of these users, which has driven monetisation with it. From 2022, the average time spent on gaming has increased by 20%, to 10-12 hours per gamer per week. 

In the Lumikai Annual State of India Gaming report for FY23, in partnership with Google, we also find that there’s an increased affinity towards casual and mid-core gaming especially from non-metro cities which has contributed to the steady increase in monetization in such games. 

In a proprietary Lumikai survey of 2,300 users, 41% of gamers said they now play all kinds of games versus just casual genres, indicating a healthy diversity of play styles. The survey also revealed that 23% of the users who used to play games for free have now started spending money in games. 

UPI has been a game changer for the industry. 62% of gamers surveyed prefer UPI as a payment method, versus 7% for credit cards. The top games that gamers are spending money on include BGMI, Free Fire, Ludo King, Candy Crush, Clash of Clans, Carrom King with MPL, and Dream11 being recent additions to the Play Store. 

These games span various genres, including casual, mid-core, and real money gaming (RMG) indicating that gamers are willing to invest in an increasingly diverse range of gaming experiences. 

This combination of macro-tailwinds around gaming usage, ease of payments, growth in in-app purchases, and an increasingly diverse and engaged user base continue to drive monetisation upside across gaming in India and indicates significant headroom for growth ahead for the sector.

The post India’s Gaming Landscape: Monetisation Trends And Evolving User Dynamics appeared first on Inc42 Media.

The journey to globalise your startup brings forth an array of prospects and complexities. From regulatory landscapes to nuanced compliance requirements, the pathway to international business expansion demands a meticulous understanding of legal frameworks. 

The allure of reaching foreign markets is undeniable, yet it hinges on addressing pivotal compliance considerations adeptly. 

In this article, we will delve into understanding whether your startup is ready to step onto the global platform and what that entails. 

International Investment Regulation Compliance

Ensuring adherence to diverse investment regulations and bilateral agreements forms the cornerstone of venturing into foreign territories. Understanding the legal frameworks, bilateral and multilateral agreements, and foreign investment policies is crucial. 

For instance, exploring the nuances of regulations that promote and safeguard foreign investments, such as the Foreign Direct Investment (FDI) policies in various countries, becomes imperative. An in-depth analysis of how different governments incentivise or regulate foreign capital inflow is vital for startups eyeing international expansion. 

Recent directives, such as India’s allowance for public listings in foreign markets, spotlight the pivotal role of compliant investment structuring. The case of CapOne Research underscores the significance of leveraging alternative ecosystems for seamless growth.

Intellectual Property

Protecting intellectual property demands a nuanced comprehension of patents, trademarks, and copyrights across different jurisdictions. Startups must comprehend the intricate landscape of patents, trademarks, and copyrights, which often vary significantly between countries.

Initiatives like trademark incorporation in North America by renowned startups exemplify the strategic leverage of international recognition, as well as setting an example for pre-empting and protecting against potential IP infringement claims which can arise when entering new markets and jurisdictions. 

For example, while you may have registered your IP in India and even become a known brand name in your industry, you may find that a similar business is operating with a similar brand name in your country of choice while globalising. 

This makes IP diligence and trademark registration an early step in globalization which can save a lot of time and expense down the line.

Data Protection And Policy 

Data protection is a paramount concern in today’s interconnected world. Navigating varying data protection regulations across borders mandates a vigilant approach. 

Embracing cutting-edge technologies like blockchain and AI for payment systems necessitates stringent adherence to global privacy standards, epitomised by the EU-GDPR. 

The strides taken by Indian startups like Paytm underscore the pivotal role of data welfare in international ventures.

Human Resources And Labour Law Compliance 

Expanding into new markets necessitates a deep dive into local labour laws and cultural nuances. Crafting meticulous employment contracts and embracing anti-corruption policies are pivotal. 

Additionally, acknowledging and adapting to cultural differences in communication and working styles is pivotal for fostering a productive work environment. 

The utilisation of ‘floating employee’ arrangements – a network of consultants and independent contractors – echoes the adaptability required to align with diverse labour regulations. 

Tax Obligations 

Navigating through multifaceted tax landscapes underscores the need for astute management and engagement with legal experts. Understanding tax laws, deductions, and compliance obligations specific to foreign markets is crucial. 

Maximising tax structuring opportunities and timely compliance with varying taxation methods is imperative for sustainable global operations. These help reduce tax obligations while scaling their international operations, benefitting the startup. 

Acquisition Opportunities, Joint Ventures, And Cooperative Relationships 

Exploring collaborations or acquisitions in foreign markets can be instrumental in navigating regulatory complexities and establishing a foothold. 

Examining how strategic acquisitions within similar industries facilitate global expansion provides insights into leveraging existing market expertise and overcoming regulatory hurdles. 

The strategic acquisitions by Indian startups exemplify the strategic advantage of tapping into existing market expertise. 

Summing up 

The realm of international business expansion beckons with promise but demands meticulous planning. Each of these facets underscores the intricate legal landscape that startups must navigate when considering international business expansion. Understanding and adeptly addressing these legal considerations are pivotal for startups to thrive in global markets and mitigate potential risks.

The post Is It Time To Put Your Startup On The Global Stage? appeared first on Inc42 Media.

The improvement in the global macroeconomic environment and change in investor sentiment on the back of improving financials turned 2023 into a bumper year for listed new-age tech startups after a forgettable 2022.

The 14 Indian new-age stocks that were under Inc42’s coverage at the end of 2022 together gained $11.8 Bn in 2023. Their combined market capitalisation stood at $36.9 Bn at the end of 2023 as against $25.07 Bn a year ago.

Among these, two of the biggest gainers were Zomato and RateGain, whose shares jumped over 100% in a year.

It is important to note that the 11 Indian new-age tech stocks under Inc42’s coverage at the end of 2021 – Nykaa, Nazara, Zomato, Paytm, PB Fintech, CarTrade, Fino Payments Bank, IndiaMart, EaseMyTrip, and MapmyIndia – together shed over $30 Bn in total market capitalisation in 2022. 

Meanwhile, EaseMyTrip, which was the only 2021 listing that did well in 2022, became the only loser this year, with a sharp correction of over 23% in its market value.

Overall, by the end of 2023, the market cap of 19 new-age tech stocks currently under Inc42’s coverage stood at $40.6 Bn.

Here’s a year-on-year comparison of the market cap of the 19 listed new-age tech startups under Inc42’s coverage.

The Dazzlers Of 2023

While the year was an exceptional one for most new-age tech stocks, some of them stood out as improvement in their business performance, bottom lines, and sectoral trends gave them a boost.

Zomato Delights Investors 

Foodtech giant Zomato turned its fortunes on the stock exchanges in 2023. Its market capitalisation, which nosedived over 60% in 2022 to $6 Bn, rebounded strongly to end this year at $12 Bn.

Zomato’s two consecutive profitable quarters, Q1 and Q2 of FY24, proved to be the ultimate game changer for the stock that was already on an uptrend since the beginning of the year due to its business decisions. 

From reintroducing the Zomato Gold loyalty program to the introduction of a platform fee, Zomato’s new monetisation avenues boosted its fundamentals during the year. 

Zomato also became a leading force in changing the overall market sentiment towards the new-age tech startup in 2023.

Shares of Zomato surpassed INR 125 level on the BSE, surging 108% year to date (YTD).

RateGain Takes Off On Travel Market Boom

Traveltech SaaS startup RateGain was another 2021 listing that saw a lacklustre 2022. However, it declined below 20%, which was lower compared to the likes of Zomato, Paytm, PB Fintech, and others.

However, RateGain turned out to be the biggest gainer among these shares in 2023, rising a whopping 160% YTD.

From a market cap of $0.37 Bn at the end of 2022, RateGain’s valuation surpassed $1 Bn mark by the end of December this year.

RateGain cashed on the sharp growth in the travel industry post-Covid, with more and more players opting for digitalisation. Its profit kept leapfrogging every quarter this year.

PB Fintech’s Phenomenal Year 

The fintech major was one of the biggest gainers in 2023 as its bottom line improved and there were no new regulatory hurdles to challenge its growth.

PB Fintech’s market cap more than doubled to $4.2 Bn by the end of 2023 from $2 Bn at the end of 2022. Its shares also gained over 75% in 2023 in sharp contrast to almost a 50% decline last year.

Though competition remained an overhang, the parent entity of insurtech major Policybazaar and lending tech platform Paisabaaar, kept the investors’ hopes steady with a proper profitability trajectory and showing results ahead of estimates.

Nazara Plays It Well 

Despite the GST Council’s decision to hike the GST rate to 28% from 18% hitting the online gaming industry hard, Nazara Technologies delivered a solid performance in 2023.

The company’s shares gained over 47% YTD while its market cap surged to $0.75 Bn from $0.46 Bn at the end of 2022.

The limited contribution of skill-based real-money gaming to Nazara’s overall revenue turned out to be a boon. Nazara shares gained as the company posted steady profit and aggressive expansion plans.

DroneAcharya’s & MapmyIndia’s Bull Run 

Drone startup DroneAcharya listed on the BSE SME platform towards the end of 2022 amid strong volatility in the market. The stock gained almost 40% this year, helped by the company signing new contracts, diversifying into drone manufacturing, and cracking multiple other deals.

On the other hand, geotech startup MapMyIndia’s shares also surged over 88% YTD, with its valuation crossing the $1 Bn mark this year. We must note that the homegrown competitor of Google Maps doubled down on its fights against the monopoly that the US-based tech giant created in India.

The Odd Ones Out 

Paytm, Nykaa, and Delhivery are three major names that saw an extremely volatile 2023 and ended the year with lower gains compared to their peers. 

Shares of fintech major Paytm rallied over 80% until October this year but regulatory changes came as the biggest blow. Meanwhile, Nykaa and Delhivery failed to keep the market upbeat due to a lack of consistent growth.

From a market cap of $4.2 Bn at the end of 2022, Paytm’s valuation surpassed the $7.5 Bn mark in October but now it’s about to end 2023 at around $5 Bn market cap.

On the other hand, Nykaa and Delhivery saw relatively lower rises in their market caps. While shares of Nykaa ended the year 12% higher, those of Delhivery gained 16% in 2023. 

The New Entrants’ Mixed Performance

A total of five new-age tech startups – ideaForge, Mamaearth, Yatra, Zaggle, and Yudiz – got listed on the bourses in 2023, with Yudiz listing on the SME platform and the rest on the mainboard. 

Together, the five stocks ended the year with a total market cap of about $3 Bn. While the shares of ideaForge and Yudiz have declined since their listing, the others are trading higher.

Mamaearth, which was the most-talked about startup IPO of 2023, has the highest valuation of $1.6 Bn among these five stocks which went public this year.

Will The Gains Continue In 2024?

The Street expects the turnaround seen in the Indian public markets in 2023 to continue in 2024 as well. Most of the analysts are largely bullish on the new-age tech stocks.

While the likes of Nykaa, Paytm, and Delhivery are expected to witness pressure in the medium term, their long-term growth potential looks positive, as per the analysts’ estimates.

However, it goes without saying that the fundamentals of the companies will play the biggest role in deciding the future. Several analysts told Inc42 recently that after the bloodbath in 2022, especially among the IPOs about which there was a lot of hype, the market will continue to remain cautious on IPO valuations and the companies’ bottom lines.

Meanwhile, amid the bloom in the public market, at least 12 new-age tech startups are expected to get listed on the bourses next year.

While geopolitical tensions and high interest rates in the US continue to pose challenges, experts believe that the chances of a downtrend in the broader market are very remote in the near term and this will also support the market performance of the new-age tech startups. 

[Edited By Vinaykumar Rai]

The post A Comeback For The Ages: 14 New-Age Tech Stocks Added $11.8 Bn In M-Cap This Year After 2022’s Drubbing appeared first on Inc42 Media.

We have covered the length and breadth of the Indian startup ecosystem in the past month. Our 2023 in Review series has recapped the controversies, startup success stories, the newsmakers in Indian tech, the public listings in 2023 and upcoming IPOs of Indian tech startups, and more.

And looking ahead at 2024, we have mapped out the trajectory of the key sectors through our Indian Tech Outlook series.

But there’s still some breath left in 2023 and what better way to encapsulate this year than 15 visuals that succinctly point out what the past 12 months have wrought on the Indian startup ecosystem.

Without further ado, here are the 15 charts that best capture 2023 from the point of view of Indian startups and tech ecosystem, starting with the key indicator — funding.

Startup Funding Plummets To Seven-Year Low In 2023

The year was 2023, but when it comes to startup funding, it might as well have been 2016. With just over $10 Bn raised in the year, the total funding inflow dropped to pre-2017 levels. What’s even more telling is that nearly $1 Bn of the total $10 Bn raised this year has come in December alone.

In fact, when we separate the outlier rounds (deals of $100 Mn and above), the total tally is $5.5 Bn, which is just over what the entire ecosystem raised in 2016. Indeed, as we will see, this decline in capital inflow has ripple effects in other areas of the ecosystem and indicates where the startup ecosystem is headed, particularly in new venture creation, startup valuations and more.

Pace Of New Venture Creation Cools Down

For a country which boasts 1.15 Lakh startups (as per DPIIT) and more than 68K tech startups, India has witnessed a major decline in new startups created over the last two years. This is despite several second-time entrepreneurs and CXOs launching new ventures in the past year, and the bullishness around early-stage funding.

The past two years combined saw 1.14K new startups coming into the, which is still quite a bit lower than the 1.4K new ventures that were recorded by Inc42 in 2021.

The factors that drove new business creation between 2019-2021 have faded into the background — that spurt came with the growing base of internet users and the fact that many founders looked to tap into newer segments of growth. In particular, we saw a surge in consumer brands and D2C startups, where there has been a paucity of new ventures in the past two years.

Another important factor was the so-called ‘Great Resignation’ in 2020 and 2021, which led to many new businesses coming into the picture. These startups looked to tap the digital transformation wave, but in 2023, some of these sectors — edtech, kirana tech in particular — have failed to live up to the hype of 2020-2021.

IPOs Show Recovery, But Startups Remain Cautious

Ten Indian tech startups went public in 2021, but 2022 saw the IPO enthusiasm fade away. In 2023, a brief window of opportunity opened up which saw five startups – ideaForge, Mamaearth, Yudiz, Zaggle and Yatra – going public between July and October.

While ideaForge saw the biggest pop on listing and listed at premium of over 90%, the other four IPOs received mixed to a muted response.

Public markets have not been too enthusiastic about loss-making tech IPOs in 2023, but the picture might change in 2024, with three companies — Ola Electric, Awfis and FirstCry — filing their pre-IPO documents with SEBI in December. Other major companies such as OYO, Digit Insurance and even Swiggy are expected to join the IPO parade in 2024.

By all indications, 2024 seems to be on course to change the IPO sentiments for tech startups, but these are still early days and a lot could change between now and the next few months.

Consolidation Wave Cools; M&As Back At 2019 Levels

After the funding peak of 2021, startups went on an acquisition spree, which continued well into 2022 as startups splurged the capital raised for inorganic growth, product experiments and acquihires.

But 2023 has tempered the consolidation wave significantly. With just 112 mergers and acquisitions (M&As) this year, the tally is on par with 2019. As cash reserves fell in 2023, startups looked to cut costs and reduced hiring — many even shed parts of their businesses that they had so enthusiastically entered in 2021.

Plus, the relatively glacial flow of VC money meant that any consolidation had to be done through the cash generated by these businesses. Given that most startups are loss-making, only a handful could execute M&A deals. Many of these M&As have proven to be distressed sales, such as the Allen acquisition of Doubtnut or TenderCuts being acquired by Good To Go, or indeed the GoMechanic acquisition by Servizzy after the startup’s corporate governance debacle.

The situation is unlikely to improve in 2024 as many investors only expect the funding activity to pick up in the second half of the year, and even then, startups are likely to prioritise runway extension and revenue expenditure over luxuries such as acquisitions.

Investor Confidence Shakes In Women-Led Startups

Towards the end of 2023, Smriti Irani, the Union Minister for Human Resource Development,  accused VCs of bias towards startups led by men. “Risk-taking by VCs for women-led initiatives which are based on innovation is far lower as compared to those by men,” she had claimed

There is a grain of truth to this. Funding raised by women-led Indian startups has been declining since 2021, and 2023 was the worst in this regard, with the total funding tally for such startups not even accounting for 10% of the overall funding, unlike each of the three previous years.

So what changed in 2023? For one, there is some correlation between the decline in new venture creation and the fall in funding for women-led startups. It’s also noteworthy that newer areas of focus for the VC ecosystem in the past year are areas that are traditionally male-dominated — generative AI, manufacturing, new-age financial services and more.

In the past three years, ecommerce has emerged as the primary avenue for funding women-led startups in India, particularly evident in the direct-to-consumer (D2C) space. But D2C as a category has slowed down in 2023 and this also explains why there is a slowdown in VC funding for women-led startups unlike the pandemic era.

Investment Tech Boom Driven By Discount Brokers

While the above graphic shows us steady growth in each fiscal year, it does not depict the actual surge in demat accounts in 2023 as a whole.

For context, the number of demat accounts in India rose to 127 Mn in August 2023, a YoY surge of 26%, primarily due to attractive returns from equity markets, and the ease of the account opening process.

What this growth indicates is the growing appetite for the Indian salaried class to invest in stock markets, mutual funds and other investment asset classes. Of course, a lot of the credit has to go for the government’s push for mutual funds investment through widespread promotional campaigns, but the role of discount brokerages such as Zerodha or Groww cannot be ignored.

Bengaluru-based Groww reached a new landmark with 6.63 Mn active investors on its platform at the end of September 2023, as against Zerodha’s 6.48 Mn. This made the company the biggest discount brokerage by clients in India. For context, Groww had 5.3 Mn active investors at the end of 2022, compared to Zerodha’s 6.3 Mn.

These platforms have leveraged technology to make onboarding much easier for new-to-market investors, introduced education initiatives to boost adoption and usage, and facilitated micro-investments in many asset classes, which has resulted in a major spike.

Credit Demand Surging Among Indians

The number of credit cards issued in India has seen a three-fold rise in the past five years, largely fuelled by digital customer acquisition, the launch of several co-branded credit cards and the role played by bank-fintech partnerships.

Credit (pun unintended) is also due to the card tokenisation policy that mandated ecommerce players to issue tokens for transactions instead of storing credit card details directly. This has eliminated some of the fears around card details getting leaked or hacked when stored improperly and pushed the usage of credit cards in India.

“As the country pushes towards a digital economy with an increasing volume of transactions, tokenisation has immense potential to further digitise the payment ecosystem. With a substantial 560 Mn tokens already in circulation and a fast-paced growth rate, we foresee tokenisation becoming a pivotal force in the evolution of digital payments,” RBI Executive Director P Vasudevan said in a report in November this year.

India’s Economy Bounces Back Strong After Post-Pandemic Cooldown

The pandemic brought the world to its knees, and India’s economy was not immune to the shock, but the revival since then has been cited as an example of sharp V-shaped recovery.

After nine successive quarters of degrowth till Q1 FY21, the Indian economy rebounded to become one of the fastest-growing economies in the world. The highlight was the incredible 21.6% growth during the first quarter of FY22, and since then we also saw a spike in Q1 FY23.

Even as major global economies showed recessionary signs in 2023, India’s economy remained robust, driven by government stimulus for industries such as manufacturing and a sharper focus on exports. This resulted in the industrial production index spiking, and electronics exports have contributed significantly to the growth (as seen below).

This is what the World Bank said about the Indian economy in October: “Despite significant global challenges, India was one of the fastest-growing major economies in FY23 at 7.2%. India’s growth rate was the second highest among G20 countries and almost twice the average for emerging market economies.”

FDI Inflows Fall Amid Global Pullback

While the outlook remains positive for 2024, there are still some lingering concerns around FDI inflows, which have been a major contributor to the economic growth of the past two years.

But foreign direct investments are estimated to hover around FY20 level in FY23, which indicates that the global macroeconomic conditions have not stabilised as much as many might have hoped after the zero interest rate fiscal policies of many leading central banks around the world.

The Indian government has stated that production-linked Incentive (PLI) schemes for sectors such as electronics manufacturing, pharma, food processing, EV manufacturing, medical appliances and other areas have driven FDI. The China+1 movement could also be credited for FDI inflows remaining more or less consistent for India in the past two years.

But the outlook remains slightly bleak given geopolitical conflicts in the Middle East, Europe and the posturing of North Korea against the US in recent weeks.

These conflicts aside, there is high optimism among foreign investors in relation to the upcoming General Elections in India, with a widespread feeling of government stability. Will this help India mitigate any headwinds and gain from foreign investments as investors look to dodge the geopolitical tensions in other parts of the world?

Smartphone Exports Boom

As we stated above, exports have been a central focus for India in the past two years and this is best reflected in smartphone exports from the country.

Morgan Stanley estimates that India’s smartphone market could triple in size by 2032, or reach $90 Bn in value as India becomes the third-largest economy in the world. But the wave of tech giants manufacturing in India has also become a dominant narrative in 2023.

The rapid growth in exports (nearly 2X higher in 2023) comes as a result of two factors – India’s PLI scheme for electronics manufacturing and Apple boosting its manufacturing in the country, which has also brought other major manufacturers to the Indian market.

According to government statistics from earlier this year, iPhone exports accounted for nearly 90% of the total value of smartphone exports from India. With Apple’s target of making India home to a quarter of its total manufacturing output, the country’s smartphone manufacturing segment is ready to make a bigger claim.

India’s Startup Ecosystem Is Now A Major Employer

Over the past two years, job-related headlines from the startup ecosystem have been dominated by layoffs. While retrenchments have certainly plagued Indian startups, the ecosystem as a whole has also emerged as one of the biggest in terms of job creation.

Indian startups have created employment for more than 10 Lakh people over the past seven years, with several startups having created tens of thousands of jobs alone. Several factors have worked in favour of the trend observed.

The answer becomes much more obvious when superimposing the funding trends over employment generation, but as the number of startups itself rose rapidly, so did the employees being hired by them.

That said, 2023 saw a marked decline in funding and new startups being launched. The ripple effect of the latter would likely be felt over the next few years, as fewer companies opening now would lead to fewer job opportunities down the line.

The Breakout Year For Electric Vehicles

The enthusiasm around electric vehicles is best captured through the lens of Ola Electric. The company which only entered the OEM business in 2021 is on the verge of an IPO. It’s no wonder then that many observers are calling 2023 an inflection point for the electric mobility ecosystem

But we’d like to temper these expectations — India saw 5,60,240 EV registrations between April and November 2023, which indicates that FY24 is on track to record 8 Lakh registrations, much lower than FY23.

Several analysts have pointed out that EV sales boomed in 2023 due to substitutions of existing two-wheelers. Two-wheeler EVs dominated FY23 in terms of sales accounting for more than 49% of all registered EVs.

When it comes to the EV market, it’s firmly in the corner of two-wheelers, with the market share growing from 2.1% in FY2018 to 61.7% in FY2023.  It’s as yet unclear whether OEMs can maintain this pace in the next couple of years. One factor that could spur EV sales and registration is the potential entry of EV giants such as Tesla, which would be a big signal for the transition from ICE vehicles to EVs.

Case in point: 70% of tier-one Indian car consumers state they’re willing to consider an electric car for their next vehicle, as compared to the record-high global average of 52%, per a McKinsey survey.

The likes of Tata, MG, Mahindra and others also have plans to bring more affordable four-wheelers to the market, which would undoubtedly also come with a boost for the EV charging infrastructure. So the big question is: Will 2024 be the year of electric cars?

UPI Breaches 100 Billion Mark

UPI — most fintech companies sing praises about it in public, while in private many are concerned about the over-reliance on UPI for payments, especially because it is a digital public good and therefore remains free for users to a large extent.

Despite the revenue downside, what is undeniable is that UPI has become a pillar of the digital economy, and has even crossed over to other geographies in the past two years.

In 2023, India saw more than 3,684 UPI transactions per second and 96% of this volume was driven by PhonePe, Google Pay or Paytm.

This year, CRED emerged as the darkhorse to shake up the competitive landscape, taking the total number of UPI transactions to well over 100 Bn in 2023. For context, this is 10X the transaction volume from just four years ago.

In many cases, UPI has become the key user acquisition channel for fintech startups and we do not foresee any slowdown in its usage, at least not until the Indian government introduces a merchant discount rate (MDR) for UPI transactions.

India In The 5G Era

India’s mobile internet story has reached new highs every year since the introduction of 4G networks in 2015 and 2016. Reliance Jio’s blistering 4G launch in 2016 turbocharged India’s adventure into the internet age, as hundreds of millions of users went online with megabit speeds.

Seven years on, India’s telecom sector completed a 5G rollout that took less than two years between the 5G spectrum auction and 92% of Indian districts being 5G enabled.

Over the past few years, the Indian government has looked to push homegrown technology for the 5G era and today the telecom industry is widely regarded as one of the most important pillars of the economy, thanks to its widespread impact.

India’s push for self-sufficiency has resulted in India taking an early lead in 6G research, and as the industry becomes self-reliant, India’s telecom future looks secure.

Around a decade ago, when 2G was the norm in India, a GB of data would cost around INR 299, which was around $5. Fast forward to 2023, with nearly all of the country receiving 5G coverage, a GB of data costs less than 5% of what it used to in 2013.

The cheap internet has also fueled the rise of India’s digital economy – from UPI to food delivery, the affordability of the internet is fueling the $1 Tn digital economy India dreams of.

India Stack Built Around Digital Public Infrastructure

When innovation comes, regulation follows, but in India’s case, this is also backed by the rise of digital public infrastructure or DPI, where government-backed programmes and policies have driven adoption across fintech, education, banking, healthcare and other critical sectors.

Among these, UPI can be easily singled out as the most transformative digital innovation till date. Beyond this, if Aadhaar formed the backbone of India’s digital stack till a few years ago, the past few years have seen the rise of DigiLocker for identification and authentication of access to services, digital health IDs, technology-enhanced educational initiatives, the Account Aggregator (AA) framework and most recently the Open Network for Digital Commerce (ONDC).

The last of these promises to revamp not just ecommerce and delivery of consumer services, but is also eyeing a disruption of delivery and access to financial services.

India’s DPI progress is being seen as an example of how developing economies could propel their own tech ecosystems, with the government working closely with other nations to export this key pillar of the Indian economy in 2023.

The post 15 Charts That Defined India’s Tech And Startup Ecosystem In 2023 appeared first on Inc42 Media.

In the rapidly changing landscape of the automotive industry, aftermarket services emerge as pioneers in adapting to consumer needs. The recent findings from the Automotive Component Manufacturers Association (ACMA), in its pioneering study on the ‘Indian automotive aftermarket,’ shed light on the sector’s significant valuation at INR 33,000 Cr for ‘on-road’ vehicles. This huge amount of data underlines the pivotal role of aftermarket services in the automotive ecosystem.

The traditional landscape of routine repairs and maintenance is undergoing a significant shift, compelled by an automotive market that is increasingly shaped by the expectations of a tech-savvy and environmentally-conscious consumer base. 

Modern consumers seek more than just a fix for their vehicles; they demand a holistic experience that aligns with their fast-paced lifestyles and a commitment to sustainability. 

As the automotive industry witnesses these changing demands, aftermarket services are adapting, embracing innovation, personalisation, and eco-friendly practices to cater to the diverse needs of today’s drivers.

Usage Of  Digital Tools For Better Services

In the fast-evolving landscape of automotive aftermarket services, the embrace of digitalisation signifies a pivotal leap in meeting consumer needs. Departing from traditional paper-based processes and extended service timelines, the industry is witnessing a significant change toward a more connected and efficient ecosystem.

Advanced technologies like IoT, AI, and blockchain are being leveraged to simplify the aftermarket service chain. From predictive maintenance to real-time diagnostics, these digital solutions empower consumers to stay ahead of potential issues and address them proactively. 

The beginning of digital technologies has introduced the days of lengthy service processes, marking a pattern that places the aftermarket industry at the front line of technological innovation.

Personalised Customer Experience

Consumer expectations have gone beyond the traditional one-size-fits-all model. The industry is in the leading position of a revolutionary shift toward personalised aftermarket services, accepting that current drivers desire more than routine fixes for their vehicles.

By utilising the abilities of data analytics and machine learning algorithms, businesses delve into the fine points of individual driving patterns, maintenance histories, and specific preferences. 

This data-driven approach enables the creation of meticulously tailored service packages, ensuring that each consumer receives a tailored experience aligned precisely with their vehicle’s requirements. 

This not only minimises downtime but also maximises satisfaction, representing the industry’s dedication to delivering a detailed, personalised, and highly effective service model.

The Rise Of Subscription Models

Amid the growing era of subscription-based services, the automotive aftermarket smoothly combines into this trend. Acknowledging the natural benefits, the industry appreciates the convenience and cost-effectiveness of subscription models. 

This innovative approach offers customers an effortless and hassle-free experience, covering routine care, necessary repairs, and even possible improvements, all at a fixed monthly cost. 

Beyond providing predictability in expenses for consumers, this subscription model nurtures long-lasting connections between service providers and customers. It reflects a strategic evolution in the industry, where the embrace of subscription-based services not only meets modern customer choices but also establishes a foundation for enduring and mutually beneficial partnerships within the automotive aftermarket.

Teaming Up For Better Results

Collaboration emerges as the linchpin for success. The industry places a premium on forging strategic partnerships with manufacturers, suppliers, and fellow service providers to cultivate a seamless and integrated ecosystem. 

Through united teamwork, businesses use each other’s strong points, resulting in a better range of services for discerning consumers. This cooperative mindset not only fosters innovation but also serves as a proactive measure, ensuring that the industry remains at the front position in meeting the ever-evolving needs of customers. 

In the fast-paced landscape of automotive aftermarket services, this collective approach not only drives each business forward but also underlines the industry’s commitment to remaining flexible and responsive to the demands of the modern automotive landscape.

In conclusion, automotive aftermarket services are witnessing a transformative evolution driven by consumer-centric innovation. From the integration of digital technologies for efficiency to customised services for your specific needs, the industry is reshaping itself. 

The rise of subscription models and collaborative partnerships further solidified its adaptability. As leaders in Innovation in meeting consumer demands, automotive aftermarket services are not just responding to change; they are proactively shaping a future defined by innovation, sustainability, and collaborative excellence.

The post Shifting Gears: The Future Of Automotive Aftermarket In A Tech-Driven Era appeared first on Inc42 Media.

In a landscape teeming with buzzwords like disruption, innovation and scalability, the stark reality of numbers often tells a different story. While 95 leading new-age tech companies in India have released their FY23 financials, the performance figures offer a cautionary tale. 

Despite a cumulative operating revenue of a staggering INR 2.25 Lakh Cr, 68 of these companies reported a combined loss of INR 48,068.3 Cr in FY23. In contrast, the rest managed to eke out a collective profit of INR 5,675 Cr. The divide becomes more intriguing considering that 19 of these companies are listed. 

We are nearly nine months into FY24, yet a number of Indian startups have not released their financial numbers for FY23, leaving many to wonder what lies beneath the surface. In the ongoing fiscal year, Inc42’s Indian Startup Financials Tracker FY23 aims to be your eyes and ears, updating you on the financial performance of startups.

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

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

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

Inside The FY23 Financials Of Indian Startups

Note: All amount in INR Cr

Acko’s FY23 Loss Jumps To INR 739 Cr

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

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

Apna’s Revenue Jumps 3X

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

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

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

Atlan’s Profit Takes A Hit

Data collaboration software startup Atlan reported a profit after tax (PAT) of INR 7.74 Cr in FY23, a decline of 18.70% from INR 9.52 Cr in FY22.

The Salesforce-funded startup’s operating revenue rose 189.78% to INR 93.83 Cr from INR 32.38 Cr in FY22

Total expenses jumped 203.45% to INR 85.53 Cr in FY23 from INR 28.19 Cr in FY22.

Read: SaaS Startup Atlan’s Profit Slips 19% To INR 7.74 Cr In FY23

Ather Energy’s Revenue Quadruple In FY23

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

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

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

Awfis’ Sales Cross INR 500 Cr Mark

Chennai-based coworking space Awfis reported an operating revenue of INR 545.3 Cr in FY23, an increase of 112% from INR 257 Cr in FY22. The IPO-bound startup posted an operating revenue of INR 187.7 Cr in Q1 FY24.

Its net loss narrowed 18% to INR 46.6 Cr in FY23 from INR 57.1 Cr in the previous fiscal year. In the first three months of FY24, the startup incurred a net loss of INR 8.3 Cr.

Awfis’ total expenditure surged 82% to INR 612.4 Cr in FY23 from INR 335.9 Cr in the previous fiscal year. In the first quarter of FY24, its expenditure stood at INR 612.4 Cr.

Read: IPO-Bound Awfis’ Net Loss Narrows To INR 46.6 Cr In FY23

BankBazaar’s Loss Falls 15% To INR 37 Cr

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

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

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

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

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

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

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

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

BigBasket Crosses INR 16,000 Cr Revenue Mark 

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

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

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

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

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

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

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

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

BlueStone’s Expenses Dip 45%

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

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

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

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

boAt Slips Into The Red For First Time Since Inception

Aman Gupta-led consumer electronics startup boAt slipped into the red for the first time since its inception as the increase in its expenses outpaced the rise in sales. boAt reported a net loss of INR 129.4 Cr in FY23 after posting a profit of INR 68.7 Cr in FY22.

Operating revenue rose 18% to INR 3,376.7 Cr from INR 2,873 Cr in the previous fiscal year.

The startup earned INR 2,350.8 Cr in FY23 from the audio segment, which accounted for 70% of its operating revenue. The wearable segment contributed INR 901.5 Cr to boAt’s topline this year.

Total expenses jumped 28% to INR 3,562 Cr in FY23 from INR 2,786.9 Cr in the previous fiscal year.

Read: Aman Gupta’s boAt Sold Audio Products, Smartwatches Worth INR 3,376 Cr In FY23

BookMyShow Turns Profitable After COVID

Online ticketing platform BookMyShow turned profitable and posted a consolidated net profit of INR 85.1 Cr in FY23 as against a loss of INR 92.2 Cr in the previous fiscal year.

As more people stepped out and went to movie theatres and attended live events post the Covid-19 pandemic, the startup’s operating revenue surged 252% to INR 975.5 Cr in FY23 from INR 277 Cr in the previous fiscal year. 

BookMyShow’s total expenses also jumped 138% to INR 940.9 Cr in FY23 from INR 395.2 Cr in the previous financial year

Read: BookMyShow Posts INR 85 Cr Profit In FY23 On Post-Pandemic Boost, Sales Jump 3X

CaratLane’s Sales Cross INR 2,000 Cr Mark

Titan-owned jewellery startup CaratLane’s operating revenue surged 73% to INR 2,169 Cr in FY23 from INR 1,255.6 Cr in the previous fiscal on the back of growing demand.

Despite the rise in revenue, CaratLane’s net profit dipped 8% to INR 82 Cr during the year under review from INR 89.2 Cr in the previous fiscal year.
Total expenditure jumped 69% to INR 2,068.5 Cr in FY23 from INR 1,225.9 Cr in the previous fiscal year.

Read: Titan-Owned CaratLane’s FY23 Sales Jump To INR 2,169 Cr, Profit Dips To INR 82 Cr

CarTrade Back In The Black In FY23

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

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

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

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

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

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

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

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

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

Classplus’ FY23 Loss Widens To INR 257 Cr

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

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

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

Clear’s Revenue Crosses INR 100 Cr Mark

Peak XV Partners-backed Clear’s (formerly known as ClearTax) operating revenue jumped over 85% to INR 108.8 Cr in the financial year 2022-23 (FY23) from INR 58.7 Cr in FY22.

Despite the increase in revenue, the startup’s net loss grew nearly 5% to INR 233.5 Cr in FY23 from INR 222.7 Cr in FY22.

Total expenditure increased over 21% to INR 343.7 Cr from INR 283 Cr in FY22.

Read: Tax Filing Platform Clear’s FY23 Revenue Jumps Over 85% To Cross INR 100 Cr Mark

Flipkart-Owned Cleartrip’s Loss Doubles 

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

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

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

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

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

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

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

Darwinbox’s Loss Jumps To INR 158 Cr

HRtech unicorn Darwinbox’s consolidated net loss soared 2.4X to INR 158.25 Cr in FY23 from INR 65.72 Cr in the previous fiscal year.

The Microsoft-backed startup’s operating revenue almost doubled to INR 224.04 Cr in FY23 from INR 116.73 Cr in FY22. 

The SaaS-based startup’s total expenses soared 2.2X to INR 407.22 Cr in FY23 from INR 186.93 Cr in the previous fiscal year.

Read: HRtech Unicorn Darwinbox’s FY23 Loss Surges 2.4X To INR 158 Cr

Delhivery Sees Meagre Uptick In Revenue

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

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

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

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

DroneAcharya Witnesses 700% Jump In Profit

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

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

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

Dunzo’s Loss Quadruples

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

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

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

EaseMyTrip Nears INR 500 Cr Mark in Sales

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

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

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

ElasticRun’s Revenue Cross INR 4,000 Cr Mark

Softbank-backed logistics unicorn ElasticRun’s revenue from operations saw a YoY increase of 24.71% to INR 4,754.86 Cr from INR 3,812.65 Cr in FY22. Further, the total revenue saw a YoY increase of 26.71% to INR 4,851.09 Cr from INR 3,828.24 Cr in the previous fiscal.

However, the startup loss nearly doubled to INR 618.82 Cr from INR 358.59 Cr in FY22. 

ElasticRun’s total expenditure surged 30.65% YoY to INR 5,469.91 Cr from INR 4,186.66 Cr in FY22.

Read: SoftBank-Backed ElasticRun’s FY23 Loss Doubles To INR 619 Cr

Flipkart’s B2B Arm’s Loss Jumps 42%

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

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

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

Flipkart’s B2C Arm Narrows Its Loss

A decline in its cash burn helped Flipkart’s B2C arm, Flipkart Internet Private Ltd, reduce its net loss by 9% to INR 4,026.5 Cr in FY23 from INR 4,419.5 Cr in the previous fiscal year.

Flipkart Internet’s operating revenue zoomed 42% to INR 14,845.8 Cr in FY23 from INR 10,477.4 Cr in FY22.

Total expenditure surged 27% to INR 19,043 Cr in FY23 from INR 15,024.3 Cr in FY22

Read More: Flipkart’s B2C Arm’s Sales Near INR 15,000 Cr Mark, FY23 Loss Dips To INR 4,026 Cr

SaaS Unicorn Fractal Posts INR 194 Cr Profit 

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

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

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

Fino Reports 50% PAT Jump In FY23

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

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

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

FirstCry’s Loss Surges Over 500% In FY23

IPO-bound omnichannel retailer FirstCry’s net loss surged over 518% to INR 486 Cr in the financial year 2022-23 (FY23) from INR 78.6 Cr in the previous fiscal year. In the first quarter of FY24, FirstCry incurred a net loss of INR 110.4 Cr.

FirstCry’s operating revenue rose 135% to INR 5,632.5 Cr in FY23 from INR 2,401.2 Cr in the previous fiscal year. In the first quarter of FY24, the startup’s operating revenue stood at INR 1,407 Cr.

FirstCry reported a total expenditure of INR 6,315.6 Cr in FY23, an increase of 146% from INR 2,568 Cr in FY22. In the first quarter of FY24, its expenditure stood at INR 1,541.8 Cr.

Read: IPO-Bound FirstCry’s FY23 Loss Zooms Over 500% To INR 486 Cr

Groww Turns Profitable In FY23

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

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

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

HealthifyMe’s Loss Dips

Healthtech startup HealthifyMe saw its total loss decline by around 10% to INR 142 Cr in FY23, down from INR 157 Cr reported in the year-ago fiscal. 

Meanwhile, total revenues from operations rose 23% to INR 228.7 Cr in FY23 from INR 185.25 Cr in FY22. Total expenditure stood at INR 371.72 Cr during FY23, up 8.23% YoY.

Read: HealthifyMe’s Revenue Cross INR 200 Cr Mark, Losses Dip 10% In FY23

HomeLane’s Net Loss Jumps Over 15% 

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

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

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

ideaForge’s Profit Dips In FY23

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

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

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

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

iD Fresh Food’s Loss Halves In FY23

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

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

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

IndiaMART Nears INR 1,000 Cr In Sales

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

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

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

Read: IndiaMART At 52-Week High Following Q1 Results

Indifi In The Black In FY23

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

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

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

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

INDMoney’s Operating Revenue Doubles 

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

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

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

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

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

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

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

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

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

InsuranceDekho Narrows Loss To INR 51.5 Cr 

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

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

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

Jar Spent INR 16 To Earn Every Rupee

Fintech startup Jar’s loss increased 77% to INR 122.8 Cr in FY23 from INR 69.5 Cr in FY22.

The Bengaluru-based investment tech startup’s revenue from operations jumped to INR 8.7 Cr in FY23 from INR 73.8 Lakh a fiscal ago. 

The Tiger Global-backed startup’s expenses doubled to INR 137.5 Cr in FY23 from INR 70.3 Cr in FY22.

Read: Tiger Global-Backed Jar Spent INR 16 To Earn INR 1 In FY23

Jumbotail’s Loss More Than Doubles

Bengaluru-based B2B startup Jumbotail saw its loss more than double in FY23. The startup incurred a net loss of INR 264.1 Cr, a 111% increase from INR 124.7 Cr it reported in the previous fiscal year.

Its operating revenue surpassed the INR 800 Cr mark. In FY23, the startup’s operating revenue stood at INR 819 Cr, a 117% increase from INR 377.3 Cr in FY22.

Total expenditure jumped over 100% to INR 1,114.04 Cr in FY23 from INR 523.60 Cr in the previous year

Read: Jumbotail’s FY23 Loss Surges 112% To INR 264 Cr Despite Doubling Sales

Jupiter Spent INR 54 To Earn Every Rupee

Neobanking soonicorn Jupiter Money’s loss jumped over 2X to INR 327 Cr in FY23 from INR 156.3 Cr in the previous fiscal, hurt by a sharp jump in its employee benefit expenses.

The Jitendra Gupta-led startup reported an astronomical increase in revenue to INR 7.1 Cr from a mere INR 40 Lakh it had reported in the previous year. The startup’s FY23 expenses increased 115% to INR 383 Cr in FY23 from INR 178 Cr in FY22.

Read: Neobank Jupiter Spent INR 54 To Earn Every Rupee In FY23

Justdial’s Profit More Than Doubles In FY23

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

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

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

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

LEAD School’s Loss Narrows 

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

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

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

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

Licious Narrows Loss By 38% To INR 529 Cr

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

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

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

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

Mamaearth Slips Into The Red 

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

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

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

Mensa Brands’ Revenue Touches INR 500 Cr Mark

Ananth Narayanan-led Mensa Brands’ loss increased over 2X to INR 227 Cr in the financial year ended March 31, 2023. The house of brands unicorn had incurred a net loss of INR 96.6 Cr in FY22.

Operating revenue stood at INR 499.6 Cr, a 137.4% increase from INR 210.4 Cr in the previous fiscal year.

Mensa Brands’ total expenses jumped 142% to INR 763.2 Cr during the year under review from INR 315.4 Cr in FY22.

Read: Mensa Brands’ FY23 Loss More Than Doubles To INR 227 Cr

MapmyIndia’s Profit Crosses INR 100 Cr Mark

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

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

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

Matrimony Sees Dip In Profit In FY23

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

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

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

MediBuddy’s Loss Crosses INR 300 Cr Mark

Bengaluru-based healthtech startup MediBuddy’s net loss widened 24% to INR 321.7 Cr in FY23 from INR 259.3 Cr in the previous fiscal year.

The operating revenue of the startup, founded by Satish Kannan and Enbasekar Dinadayalane, grew 27.2% to INR 297.7 Cr during the year under review from INR 234.1 Cr in FY22.

MediBuddy’s total expenses jumped over 30% to INR 648.9 Cr in FY23 from INR 497.4 Cr in the previous year, with the cost of materials consumed being the single biggest contributor at 35%.

Read: MediBuddy’s FY23 Loss Jumps 24% To INR 321.7 Cr As Business

Milk Mantra Slips Into The Red In FY23

Bhubaneswar-based dairy tech startup Milk Mantra slipped into the red in the financial year ended March 31, 2023 with a net loss of INR 12.3 Cr as against a net profit of INR 13.6 Cr in FY22.

Operating revenue rose a marginal 2% to INR 272.9 Cr in FY23 from INR 267.1 Cr in the previous fiscal year.

Total expenditure jumped 13% to INR 289.4 Cr in FY23 from INR 256.6 Cr in the previous fiscal year.

Read: Milk Mantra Posts INR 12.3 Cr Loss In FY23 As Sales Remain Flat

Fintech Giant MobiKwik Narrows Loss To INR 83.8 Cr

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

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

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

Moglix’s Revenue Crosses INR 4,000 Cr Mark

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

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

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

Mswipe Halves Its FY23 Loss

Fintech startup Mswipe’s net loss declined 45% to INR 49.1 Cr in FY23 from INR 90 Cr in FY22.

The Mumbai-based startup’s revenue from operations rose 14% to INR 274.5 Cr in FY23 from INR 240.7 Cr in FY22. Including other income, Mswipe’s total income rose 12% to INR 278.3 Cr during the year under review from INR 247.7 Cr in the previous fiscal year.

Total expenditure declined 3% to INR 328.4 Cr in FY23 from INR 337.8 Cr in FY22.

Read: Mswipe’s FY23 Loss Declines 45% To INR 49 Cr On Lower Cash Burn

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

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

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

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

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

NeoGrowth Turns Profitable In FY23

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

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

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

Noise Profits Takes A Plunge

Gurugram-based bootstrapped startup Noise saw its profit nosedive to INR 88 Lakh in the financial year 2023-23 (FY23) from INR 35.5 Cr a year ago.

However, the startup’s operating revenue jumped 1.8X to INR 1,426.5 Cr in FY23 from INR 792.8 Cr in FY22. 

The smartwatch and earphone manufacturer’s expenses surged 1.9X to INR 1,431.6 Cr in FY23 from INR 752.6 Cr in FY22. 

Read: Noise’s FY23 Revenue Soars Past INR 1,400 Cr, But Profit Fails To Create A Buzz On Rising Expenses

Nykaa Reports 50% Dip In Profit In FY23

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

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

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

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

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

OfBusiness’ Revenue Crosses INR 15,000 Cr Mark

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

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

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

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

OneCard’s Operating Income Jumps 6X

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

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

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

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

Oxyzo’s Profit Triples In FY23

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

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

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

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

Ola Electric’s FY23 Sales Cross INR 2,600 Cr Mark

IPO-bound Ola Electric’s operating revenue surged 605% to INR 2,630.9 Cr in FY23 from INR 373 Cr in FY22. In Q1 FY24, Ola Electric’s sales stood at INR 1,242.7 Cr. 

The EV startup reported a net loss of INR 1,471.6 Cr in FY23, an increase of 88% from INR 783.4 Cr in the previous fiscal year. In April to June of FY24, Ola Electric’s loss stood at INR 268 Cr.

While it posted a total expenditure of INR 1,460.7 Cr in the first quarter of FY24, expenses rose 231% to INR 3,883.3 Cr in FY23 from INR 1,173.8 Cr  in FY22.

Read: Ola Electric Clocks INR 1,242.7 Cr In Q1 FY24 Sales, Nearly 50% Of FY23 Revenue

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

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

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

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

Paper Boat’s Sales Cross INR 500 Cr Mark

Hector Beverages, the parent company Paper Boat, saw its net loss widen 71% to INR 90.6 Cr in the financial year FY23 from INR 53 Cr in FY22.

The juice maker’s loss widened, despite it crossing the INR 500 Cr mark in sales for the first time. The startup’s sales rose 56% to INR 504 Cr during the year under review from INR 324 Cr in FY22.

Paper Boat’s total expenses rose to INR 599.1 Cr in FY23 from INR 378.1 Cr in the previous fiscal year.

Read: Paper Boat’s FY23 Loss Surges 71% To INR 90.6 Cr, Revenue Crosses INR 500 Cr Mark

PayMate Manages To Narrow Its Loss

IPO-bound B2B payments solutions provider PayMate managed to narrow its consolidated net loss by a marginal 3.5% to INR 55.7 Cr in FY23 from INR 57.7 Cr in the previous fiscal year. On the other hand, operating revenue rose 11.7% to INR 1,350.1 Cr in FY23 from INR 1,208.9 Cr in FY22.

The fintech startup’s total expenses increased 11% to INR 1,407.3 Cr during the year under review from INR 1,266.9 Cr in FY22. In that, the cost of materials accounted for a significant 95%.

Read: IPO-Bound PayMate’s FY23 Loss Narrows Marginally To INR 55.7 Cr

Paytm’s FY23 Loss Drops By 26%

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

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

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

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

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

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

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

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

PhonePe’s Revenue Nears INR 3,000 Cr Mark

General Atlantic-backed fintech giant PhonePe’s net loss rose 39% to INR 2,795.3 Cr in FY23 from INR 2,013.7 Cr in the previous fiscal year due to a sharp increase in its ESOP expenses.

PhonePe’s operating revenue surged an impressive 77% to INR 2,913.7 Cr during the year under review from INR 1,646.2 Cr in FY22.

The digital payments giant’s total expenses shot up 59% to INR 5,886.3 Cr in FY23 from INR 3,705.6 Cr in FY22.

Read: Walmart-Backed PhonePe’s Loss Crosses INR 2,500 Cr Mark In FY23

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

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

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

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

Purplle’s Sales Inches Closer To INR 500 Cr Mark

Beauty ecommerce marketplace Purplle’s operating revenue more than doubled to near the INR 500 Cr mark during the year ended March 31, 2023. The startup’s operating revenue or sales stood at INR 474.9 Cr in FY23, an increase of 116% from INR 219.8 Cr in FY22. 

Despite the rise in operating revenue, Purplle’s net loss grew 13% to INR 230 Cr from INR 203.6 Cr in FY22. 

The startup’s total expenditure grew 71% to INR 738.3 Cr from INR 431.2 Cr in FY22.

Read: Purplle’s FY23 Sales Inch Closer To INR 500 Cr Mark, Loss Widens To INR 230 Cr

RapiPay’s Loss Doubles In FY23

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

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

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

RateGain’s Profit Jumps Over 700%

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

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

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

Recykal Slips Into The Red 

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

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

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

Rupeek’s Loss Declines 23% 

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

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

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

Pine Labs-Owned Setu’s Loss Jumps Over 100%

Bengaluru-based fintech startup Setu’s FY23 net loss jumped 118% year-on-year (YoY) to INR 62 Cr. The startup’s operating revenue increased 22% to INR 14.2 Cr from INR 11.6 Cr a fiscal ago.

The fintech startup’s overall expenditure rose by over 77% to INR 79.6 Cr during the year under review from INR 44.9 Cr it spent in the previous fiscal year. 

Read: Pine Labs Owned Setu Spent INR 5.6 To Earn Every Rupee In FY23

Servify’s Operating Revenue Almost Doubles

Device management startup Servify’s net loss narrowed to INR 229.1 Cr in FY23 from INR 2,860.8 Cr posted in the previous fiscal, helped by a sharp decline in non-operating expenses.

Servify’s operating revenue almost doubled to INR 313 Cr during the year under review from INR 611.2 Cr in FY22.

The startup reported an over 73% decline in its total expenses to INR 846.7 Cr in FY23 from INR 3,176.4 Cr the previous year.

Read: Decline In Non-Operating Expenses Helps Servify Narrow FY23 Loss Over 90% To INR 229 Cr

ShareChat’s Loss Crosses INR 5,000 Cr Mark

India’s indigenous social media platform ShareChat saw its loss increase to INR 5,144 Cr in FY23 on the back of amortisation expenses due to the acquisition of MX Taka Tak. In FY22, the startup’s loss stood at INR 2,988.6 Cr in FY22.

ShareChat’s revenue from operations increased 59% to INR 552.7 Cr in FY23 from INR 346.9 Cr in FY22.

The startup’s total expenses increased 72% to INR 5,862.1 Cr in FY23 from INR 3,407.5 Cr

Read: Google Backed ShareChat’s Losses Ballooned To INR 4,064 Cr In FY23 

Shiprocket’s Revenue Crosses INR 1,000 Cr Mark

Zomato-backed logistics unicorn Shiprocket’s revenue from operations increased over 78% to INR 1,088.8 Cr in FY23 from INR 610.5 Cr on the back of its acquisition spree.

The startup’s loss increased over 425% to INR 333.8 Cr during the year under review from INR 63.6 Cr in the previous fiscal year.

On the expenses front, the Saahil Goel-led startup spent a total INR 1,397 Cr in FY23 as against INR 697.8 Cr it had spent in FY22.

Read: Shiprocket’s FY23 Revenue Crosses INR 1,000 Cr Mark, Reports 3.6X Surge In Loss

Spacetech Startup Skyroot’s Loss Doubles 

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

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

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

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

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

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

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

Testbook’s Loss Almost Triples In FY23

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

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

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

Tracxn Reports Profit In FY23

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

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

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

True Balance’s Profit Jumps Over 17X 

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

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

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

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

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

Udaan’s FY23 Revenue Declines 43%

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

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

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

Unicommerce’s Profit Inches Up 

IPO-bound SaaS startup Unicommerce’s operating revenue zoomed 52% to INR 90 Cr in the financial year 2022-23 from INR 59 Cr in the previous fiscal year on strong demand for its services.

This resulted in the SoftBank-backed startup’s net profit rising 8% to INR 6.4 Cr in FY23 from INR 5.9 Cr in FY22.

The startup’s overall expense rose 55% to INR 84.1 Cr in FY23 from INR 54.4 Cr in the previous fiscal year.

Read: IPO-Bound Unicommerce Posts INR 6.4 Cr Profit In FY23, Revenue Nears INR 100 Cr Mark

Uniphore’s Net Profit Quadruples

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

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

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

upGrad’s Loss Jumps Past INR 1,000 Cr Mark

Mumbai-based edtech unicorn upGrad’s net loss surged 76% to INR 1,141.5 Cr in the financial year 2022-23 (FY23) from INR 648.2 Cr in the previous fiscal year.

The startup’s bottom line took a hit due to goodwill writedown of INR 410 Cr despite its operating revenue crossing the INR 1,000 Cr mark. The Ronnie Screwvala-led startup reported an operating revenue of INR 1,169.6 Cr in FY23, an increase of 97% from INR 595 Cr in the previous fiscal year.

The startup’s overall expenses increased 56% to INR 1,938 Cr from INR 1,241 Cr reported in the previous fiscal year.

Read: upGrad’s FY23 Loss Surges To INR 1,141.5 Cr On Goodwill Writedown Of INR 410 Cr

Urban Company’s Employee Expenses Drops 15%

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

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

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

Wakefit’s Operating Revenue Crosses INR 800 Cr Mark

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

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

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

Xpressbees’ Loss Surges Over 6X 

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

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

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

Yulu’s Loss Inches Closer To INR 100 Cr Mark

Emobility startup Yulu saw its consolidated net loss widen 71% to INR 94.9 Cr in FY23 from as against INR 55.5 Cr in FY22.

The cleantech startup’s operating revenue rose to INR 41.7 Cr, a 43.8% from INR 29 Cr it reported in the previous fiscal year. 

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

Read: Yulu’s FY23 Net Loss Widens 71% To INR 94.9 Cr As Business Expands

Zepto’s Revenue Suprasses INR 2,000 Cr Mark

Zepto, the latest entrant to the unicorn club, reported an operating revenue of INR 2,024.3 Cr in FY23, a 14X increase from INR 140.7 Cr in the previous fiscal year.

At the same time, the startup’s loss soared 3.2X to INR 1,272.4 Cr from INR 390 Cr in FY22.

Total expenses stood at INR 3,350 Cr in FY23 as against INR 532.7 Cr in the previous year.

Read: Zepto’s FY23 Revenue Jumps 14X To INR 2,078 Cr, Loss Triples To INR 1,272 Cr

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

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

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

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

Zomato’s Loss Under INR 1,000 Cr

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

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

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

Edited By: Vinaykumar Rai
Last Updated: 30th December, 14:00 PM IST

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

With the year coming to an end, the deal momentum seems to have finally caught a break after recording three blockbuster funding weeks. Between December 25 and 30, 2023, Indian startups collectively raised $90 Mn across 10 deals, which is a 63% drop from $349 Mn funding raised across 25 deals in the previous week.

With no mega deal this week, the ecosystem embraced its second unicorn of the year with fintech startup InCred raising $60 Mn over a billion dollar valuation.

Funding Galore: Indian Startup Funding Of The Week [Dec 25 – Dec 30]

Key Startup Funding Highlights Of The Week

• Fintech startup InCred, raised $60 Mn in Series D funding round led by Ranjan Pai, making it the biggest funding deal of the week.
• Fuelled by InCred’s funding, the fintech sector not only emerged as the most funded sector this week with a total funding of $74.4 Mn funding but also recorded the most number of deal counts –  three deals.
• EvolveX by We Founder Circle emerged as the busiest investor as it participated in three deals each.
• This week, $144 K was raised in seed funding across five deals.

Other Major Developments From This Week

• Drone startup DroneAcharya Aerial Innovations acquiring 51% stakes in Pune-based PYI Technologies Pvt Ltd, a startup that offers camera drones, DIY kits and customised drones.
• DMI Finance and Aditya Birla Finance are in discussions to acquire Bengaluru-based fintech startup ZestMoney.
• Omnichannel marketplace FirstCry’s parent entity BrainBees Solutions Limited has filed a draft red herring prospectus (DRHP) and is looking to raise INR 1,816 Cr through fresh issues of shares.
• Cash-strapped edtech startup BYJU’S is looking to raise $300 Mn from investors. 

The post From InCred To Revfin— Indian Startups Raised $90 Mn This Week appeared first on Inc42 Media.

In the intricate fabric of the Indian startup ecosystem, where variability in value is as unpredictable as the shifting winds, the choice between venture debt and equity financing transcends mere fiscal considerations. It delves into the realms of intrinsic value, the underlying asset that can be marketed and traded, shaping the destiny of burgeoning enterprises.

As the Indian startup landscape burgeons, witnessing the rise of innovative ventures across diverse sectors, the presence of over 110 unicorns and a projected surge to 180K+ new-age startups by 2030 underscores its vibrancy. For entrepreneurs, irrespective of their experience levels, securing ample capital is paramount, particularly during the initial operational phases. 

The influx of funds stands as a direct linchpin to the prosperity of startups, with each venture demanding a distinct funding approach based on its unique requirements.

Venture Debt Fuels Growth While Retaining Equity

In the larger context of a startup’s journey, the thread of ownership remains intact, as venture debt allows for the preservation of the founder’s elementary vision and conservation of the firm’s larger mission without any prejudice or influence.

Venture debt, an amalgamation of interest payments, harmonises with the entrepreneur’s need for capital without yielding the soul of the enterprise. The need for repayment schedules aligns with the unpredictable nature of a startup’s journey, offering profuse financial flexibility.

Yet the challenge lies in servicing the debt, a relentless campaign that demands attention even when the organisation falters. The shadow of default looms, a reminder that even the most promising firms are not immune to missteps. 

Equity Financing Offers Investor Expertise But Dilutes Ownership

With equity financing, the promise of capital injection brings forth a grandiose prospect of expansion and innovation. The equity investor, a conductor of experience and insight, adds strategic guidance to the entrepreneur’s vision. 

The shared risk in this arrangement fosters collaboration, turning the financial partnership into a shared journey. But, dilution, the byproduct of equity, is the price paid and is often the harbinger of exit pressures that may not align with the entrepreneur’s opus.

Not to mention the elaborate process of securing equity funding unfolds slowly, a testament to the intricate nature of this arrangement.

Aspects For Final Decision 

The stage of development influences the choice between debt and equity, and the founder’s risk appetite. As these businesses grow, vulnerability leaps with success, a paradoxical where with each step forward, the vulnerability diminishes and simultaneously rises. The startup ecosystem thrives on the resonance of product-market fit.

In the services business, where human capital is the primary, the solution is composed through the technological boom, merging the symphony of services with the precision of science. In the fickle startup world financing, venture debt, and equity play distinct notes. 

Debt, a teacher of financial discipline with its covenants and reporting, guides the entrepreneur through the intricate steps of fiscal responsibility. Equity, an expensive capital with high risks and returns, conducts the entrepreneur through a thrilling yet challenging process.

As the entrepreneur contemplates the composition of their financial opus, the choice between venture debt and equity should be a well-crafted blend, so that it does not barter the soul of the startup to buy into the body of the market. In this journey, financial wisdom shall guide the entrepreneur towards a symphony of success.

The post Navigating The Funding Landscape: A Comparative Analysis Of Venture Debt And Equity Financing For Indian Startups appeared first on Inc42 Media.

The year 2023 embraced corrections as the Indian startup ecosystem came to terms with the harsh realities of the extended funding winter, layoffs and wary investors. 

Funding taps ran dry across new-age sectors and ventures as investors tightened their purse strings harder than ever. As a result, total startup funding receded to a seven-year low of $10 Bn in 2023, even lower than the $13 Bn that was raised in 2017. The contrast becomes even sharper when we compare the data with 2022 and 2021 when Indian startups raised $25 Bn and $42 Bn, respectively. 

While seed-stage companies were the worst hit, equally distraught were some of the biggest names in the Indian startup ecosystem, who were experiencing diminishing investor interest at every step of the way. And their worries were probably for a reason. 

Well, much to their chagrin, late-stage funding cratered 60% year-on-year (YoY) to $5.6 Bn in 2023 and the deal count withered 57% YoY to 83.

Unfortunately, mega deals ($100 Mn and above), too, fell with a thud during the year to 23 from 60 such deals in 2022 and 109 deals in 2021, as per Inc42’s Indian Tech Startup Funding Report 2023. 

Salvaging the reputation were names such as PhonePe, Lenskart, Flipkart, DMI Finance, Ola Electric and the like that raised some of the biggest rounds in 2023. 

Not to mention, the fall in mega deals has slowed down the country’s potential of minting unicorns, which we already witnessed in 2023 — just two unicorns were born in the year. 

Imperative to highlight that late-stage deals accounted for 70% of the total capital inflow into the Indian startup ecosystem in 2022 and churned 22 unicorns. 

Fintech, Ecommerce & Enterprise Tech Startups Clinch 90% Mega Deals

The fintech sector continued to be the darling of the investors as it accounted for more than half, 12 to be precise, of the total mega deals witnessed by the ecosystem in 2023. 

Close on the heels were ecommerce startups, which secured five mega deals, while enterprise tech took the third spot on the podium with four such deals. 

Ironically, even though deeptech and cleantech stood at the bottom of the ladder with just one deal each, it was truly a watershed moment for the sectors. It shows that investors have now started to recognise the true potential of these two mushrooming new-age sectors.

Moving on, digital payments giant PhonePe raised $850 Mn in multiple tranches throughout the year to fuel its growth ambitions ahead of its listing on the Indian bourses. Other fintech heavyweights who enjoyed mega deals in the year of the extended funding winter included names like lending tech startup DMI Finance ($400 Mn round), fintech SaaS giant Perfios ($229 Mn) and insurtech player InsuranceDekho ($210 Mn).

“Relative to other sectors like SaaS which suffered from multiple headwinds from decline in global customer traction, some of the established fintechs showed high growth combined with a convergence to profitability, and investors chose to fund them,” said general partner at VC firm WEH Ventures,  Deepak Gupta.

From the ecommerce arena, Lenskart and Flipkart took the pole position on the charts as both raised $600 Mn each with investors making a beeline. While B2B ecommerce major Udaan raised $340 Mn in a mega round towards the fag end of 2023, quick commerce platform Zepto became the second unicorn of 2023 after bagging $231 Mn from a clutch of investors. 

IPO-bound Ola Electric, too, made a big splash in the Indian startup arena after it secured a massive $384 Mn round from Temasek. Alongside, Builder.ai made a mark in the enterprise tech space with its $250 Mn fundraise, and robotics startup Grey Orange bagged $135 Mn in 2023. 

Behind these big bucks was a flurry of foreign investors who invested in some of the biggest names in the Indian startup ecosystem. 

Foreign Investors Seen Drenching In The Late-Stage Opportunity

Foreign investors continued to chokehold late-stage deals in 2023, be it General Atlantic, Investcorp, DST Global, Lightspeed India, or the like. 

US retail giant Walmart alone led two of the biggest mega deals this year – PhonePe’s $850 Mn and Flipkart’s $600 Mn rounds. 

Barring names such as Kedaara Capital, TVS Capital and a few others, domestic capital was conspicuously missing from the top 10 mega deals. 

Interestingly, none of the investments made by big names such as Peak XV, Accel India, SoftBank and Tiger Global made it into the top 10 mega rounds during the year.

On the contrary, sovereign wealth funds such as ADIA, QIA and Temasek participated in droves in mega rounds, picking up stakes in some of the biggest names in the Indian startup ecosystem.

Meanwhile, SoftBank was busy booking profits and offloading a good chunk of its stake in Indian listed startups to shore up returns. 

Now, as we stand on the cusp of 2024, much appears to be in store for the world’s third-largest startup ecosystem.

So, What’s On The Horizon?

Even though the capital drought is expected to seep into 2024 as well, industry experts see no dearth of funds for late-stage startups with sustained revenue growth and profitability.

According to Manish Maryada, the cofounder and CEO of fintech startup Fello, 2023 was just a glimpse of VCs’ changed investment strategies. Concurring with this, investment firm FAAD Network’s cofounder and director Dinesh Singh told Inc42 that focus on profitability and strong unit economics will attract larger investments in 2024.

A case in point is the names like GreyOrange, Udaan, Aye Finance, and InCred, which raised copious amounts of capital in the last weeks of December 2023. A common theme among all these late-stage companies was that they had streamlined their operations or were inching closer to profitability. 

However, investors will continue to tread warily in the year ahead. They are expected to keep a close eye on meticulous corporate governance guardrails, strong compliance records, credibility of founders, and corporate culture, among other things.

Chiming in, JITO Incubation and Innovation Foundation’s (JIIF’s) chairman Rajat Mehta said, “The outlook for mega deals in the startup landscape in 2024 will be shaped by a range of factors, including economic conditions, regulatory dynamics, and emerging market trends. The general central elections in India and the US will play a major role and will lean more towards creating an extremely positive sentiment for mega deals.” 

With much in store for the homegrown new-age tech companies in 2024, all eyes will now be on whether mega deals resuscitate next year or will the funding winter permeate deeper, chilling the Indian startup ecosystem to its spine. 

[Edited by Shishir Parasher]

The post The $100 Mn Chase: Mega Deals Dwindle In 2023, Recede To Pre-2018 Levels appeared first on Inc42 Media.

There is a reason why India is called the world’s third-largest startup ecosystem. Well, for starters, in terms of unicorns and the number of startups, we are just behind the US and China.

However, that wasn’t always the case. There was a time when we still had many miles to go in having even a mark on the global startup map. However, since the start of 2014, India’s startup ecosystem has come alive in terms of funding activity, heightened innovation and more stress on building in India for the world. 

Not to mention, when the rest of the world had to endure several macroeconomic shocks of the last decade, India’s rapid economic growth allowed the country to fuel its entrepreneurial spirit, paving the way for the startup boom. And, it was around this time that the rise in innovation and easing of FDI norms brought major tech investors to Indian shores. 

Between 2014 and 2023, India saw more than 3,100 new startup launches each year on average, according to the Department for Promotion of Industry and Internal Trade (DPIIT). Not just this, as many as 9,995 Indian startups have raised more than $146 Bn in funding since 2014.

But, How Has Funding Looked Like Over The Years?

India has seen a near-constant rise in startup funding for the best part of the last decade. In 2014, as many as 376 local startups ended up raising around $5 Bn.

Gauging the success of ventures like Ola, Zoho, and Flipkart, investors started to buy into the Indian startup story, pouring more funds.

India’s 4G launch and demonetisation in 2016 significantly drove the fortunes of ecommerce and fintech startups. The advent of UPI at the same time laid the foundation for more startups to emerge. The spread of the Covid-19 pandemic in early 2020 initially dented the Indian economy and the startup ecosystem with it.

However, funding picked up, supercharged by the unprecedented demand for digital solutions for everything from grocery shopping to health consultations.

The year 2021, which saw a devastating second wave of the pandemic, also bore witness to the most intense period of startup funding in the history of India’s fledgling startup ecosystem. In a single year, Indian startups raised as much funding as they had lapped up between 2014 and 2018. 

Indian startups were innovating and investors were investing. ‘Growth at all costs’ was the new motto amid the new normal, and startups raised whatever deemed them fit, sometimes even without a minimum viable product (MVP).

Soon came February 2022, and as Russian boots fell on Ukrainian soil, the global economy tanked. Russia was heavily sanctioned and taken out of the global financial network, and as a result, the world went through an energy crisis. This spooked investors, and funding in startups started to slow down.

As the slowdown threatened to evolve into a recession, Indian startup funding continued to decline and hit a seven-year low in 2023. Even so, Indian startup funding ticked over $146 Bn, a new milestone for the ecosystem.

Despite the shocks, Indian startups have had a strong 2023 as several big names have turned profitable, signalling that good times might just be close by.

Policies Supporting India’s Startup Economy

For the most part, India’s startup ecosystem has enjoyed great policy and regulatory support from the government. One of the most important schemes promoting India’s startup ecosystem has been the Startup India programme, managed by DPIIT.

Launched in 2016, Startup India has played a pivotal role in propelling the growth of India’s startup ecosystem. Tax breaks, simplified regulations and incubation support have since fostered a nurturing environment for innovation and risk-taking.

Coupled with the easing of FDI norms, VC funding skyrocketed, attracting investors and empowering startups to scale and compete on the global stage. As a result, India is now the world’s third-largest startup ecosystem and home to 112 unicorns.

To boost local manufacturing, the government also introduced production-linked incentive (PLI) schemes in 2020 across 14 key sectors, including semiconductors, advanced cell chemistry batteries, and drones. This has incentivised both global tech giants like Apple and local startups to make in India for the world.

Speaking about innovations, India Stack is the top talking point. Internationally acclaimed breakthroughs such as the United Payments Interface (UPI), electronic Know-Your-Customer (eKYC), Aadhaar Card, the Account Aggregator network (AA) and the Open Network for Digital Commerce (ONDC) have stepped up the Indian startup game.

UPI, in particular, has proven to be among the most influential government-backed fintech platforms anywhere in the world. The platform is enabling thousands of transactions in India each second, for free, all the while displaying unparalleled resilience and stability. Hundreds of tech startups in India started by enabling UPI payments, including PhonePe, Paytm and BharatPe, among dozens of others.

Lastly, India’s G20 Presidency in 2023 made way for the Startup20 initiative, which brought together startups, investors, policymakers, and innovation hubs from across the G20 member nations, with a focus on investment, inclusivity and collaboration. This resulted in more visibility for the world’s third-largest startup ecosystem, wider discussions around it and a favourable policy push within the country.

How India Stacks Up Against Its Peers On The Podium

While the Indian startup ecosystem has made a significant mark on the global map, it has a long way to go before it can challenge China and the US.

For context, US-based startups raised $2.7 Tn between 2014 and 2023, while Chinese startups raised $793 Bn during this period, and India is not even close to these figures. The key reason behind this stark difference is that the US and China had multiple startup-friendly policies in place, much earlier than India.

For instance, Apple was founded in 1976 and India was a closed-market economy until the early 90s. Being far more mature startup ecosystems, the US and China also are home to a far larger number of startups.

However, as India’s internet penetration rises, and the demand for tech solutions with it, the country could emerge as a threat to China’s position.

Gazing In The Crystal Ball

Industry experts believe that the Indian startup ecosystem will continue to witness maturity, which will lead to stronger fundamentals and high-quality startups.

Speaking of maturity, many companies founded at the peak of India’s startup-minting era of the late 2010s have grown fully and are headed towards possible IPOs now. This trend is expected to continue over the next few years.

Meanwhile, senior executives of many late-stage startups are now launching their ventures to start up again. This trend, too, is expected to grow at an exponential rate, luring in more investments from VCs.

In addition, the Indian government’s support for startups and the belief in their potential to boost the country’s economy is expected to result in the creation of more startups, soonicorns, unicorns and even decacorns. Now, as we approach the beginning of a new year, it is time to reiterate that India continues to be the most exciting place on the global map.

[Edited By Shishir Parasher]

The post $146 Bn+ Raised In 10 Years — The Outlook For Funding Winter-Hit Indian Startups Isn’t That Grim After All appeared first on Inc42 Media.

A total of 76 founders of 48 new-age tech companies in India took home INR 441.44 Cr in annual salaries in the financial year 2022-23 (FY23)!

The average founder annual salary rose by 87.5% to INR 6 Cr in FY23 from INR 3.2 Cr in FY22.

This comes at a time when the ongoing funding winter has brought about a significant transformation in the country’s startup ecosystem, compelling startups to focus on profitability. This also meant cutting down cash burn, which resulted in companies taking aggressive cost-cutting measures, including pay cuts and layoffs.

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

While these drastic measures helped some startups turn profitable or reduce their losses, most of the startups are still bogged down by losses.

While 41 companies (excluding Lenskart) out of the aforementioned 47 reported a total operating revenue of INR 88,330.5 Cr in FY23, 29 of them incurred a combined loss of INR 22,415 Cr.

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

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

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

Founder Remuneration Tracker FY23

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

*NOTE: Includes, salary, wages, & bonus
^ NOTE: Includes short-term employment benefits and share-based payments

Supam Maheshwari | FirstCry

Supam Maheshwari, the cofounder of IPO-bound omnichannel startup FirstCry, received an annual remuneration of INR 200.7 Cr in the financial year ended March 31, 2023. As per the startup’s DRHP, Maheshwari’s remuneration in FY22 stood at INR 29.1 Cr. In the first three months of FY24, Maheswari received an annual remuneration of INR 25.8 Cr.

The DRHP revealed that Maheswari’s remuneration of FY23 and the first three months of FY24 included short-term employment benefits and share-based payments.

In FY23, the startup’s loss increased over 500% to INR 486 Cr, while operating revenue rose to INR 5,632.5 Cr.

Nithin & Nikhil Kamath | Zerodha

Nithin and Nikhil Kamath, the cofounders of bootstrapped stock broking platform Zerodha, took home INR 48 Cr each in annual salaries in FY23, making them one of the highest paid founders in this list. However, their remuneration remained unchanged from the previous fiscal year even as Zerodha’s net profit increased 37% to INR 2,909 Cr. Its total revenue inched closer to the INR 7,000 Cr mark during the year under review.

Ritesh Agarwal | OYO

OYO’s Ritesh Agarwal took home INR 12 Cr in remuneration, representing a 114% hike from INR 5.6 Cr withdrawn in FY22. It must be noted that while Agarwal’s compensation more than doubled during the year, the unicorn fired nearly 600 employees in FY23.

OYO reported a 34% decline in its net loss to INR 1,286.5 Cr in FY23 from INR 1,941.5 Cr in the previous fiscal year. The SoftBank-backed startup’s operating revenue grew 14% to INR 5,463.9 Cr in FY23 from INR 4,781.3 Cr in FY22. 

Deepak Singh Ahlawat | Gameskraft

Deepak Singh Ahlawat, the cofounder of Gameskraft, received one of the biggest hikes among the list of the cofounders featured in this list. His annual remuneration jumped 264.6% to INR 10.1 Cr in FY23 from INR 2.77 Cr in the previous fiscal year.

The startup’s revenue from operations jumped 24.8% to INR 2,662.5 Cr in FY23 from INR 2,133.1 Cr in FY22, while profit rose 14.2% to INR 1,061.9 Cr in FY23 from INR 930.4 Cr in FY22.

Manish Taneja | Purplle

Manish Tanjea and Rahul Dash, the cofounders of beauty ecommerce startup Purplle, took home INR 6.71 Cr each in remuneration in FY23, a hike of 527% from INR 1.07 Cr each they got in the previous fiscal year.

The startup’s operating revenue or sales stood at INR 474.9 Cr in the financial year 2022-23 (FY23), an increase of 116% from INR 219.8 Cr in FY22. Loss grew 13% to INR 230 Cr from INR 203.6 Cr in FY22.

Nitish Mittersain | Nazara Technologies

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

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

Vijay Shekhar Sharma | Paytm

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

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

Dinesh Agarwal | IndiaMART

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

The company which was founded in 1999 reported an operating revenue of INR 985.3 Cr in FY23, an increase of 31% from INR 753.4 Cr in the previous fiscal year. Profit, however, dipped around 5% to INR 283.8 Cr from INR 298 Cr in FY22. 

Sahil Barua & Kapil Bharati | Delhivery

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

Kapil Bharati, the CTO of Delhivery, received an annual remuneration of INR 3 Cr in FY23, an increase of 24% from INR 2.42 Cr in FY22.

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

Gaurav Singh Kushwaha| BlueStone

Gaurav Singh Kushwaha, the CEO and cofounder of Ratan Tata-backed jewellery brand Bluestone, took home an annual remuneration of INR 3.1 Cr. This was a surge of 313% from INR 75 Lakh he took home in the previous fiscal year.

Meanwhile, BlueStone saw its operating revenue increase 67% to INR 771 Cr in FY23 from INR 461.3 Cr in the previous fiscal year. Net loss jumped 183% to INR 167.2 Cr in FY23 from INR 59 Cr in FY22.

Last Updated: 29rd December, 18:55 PM IST

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

The year of extended funding winter has been worse for the world’s third-largest startup ecosystem in almost every sense — layoffs, shutdowns, deal counts and capital infusions.

According to Inc42’s annual “Indian Tech Startup Funding Report 2023“, Indian startups secured over $10 Bn in funding until December 25 this year, with just two new unicorns in its kitty.

On a year-on-year basis, this represents a 60% decrease compared to the $25 Bn raised in 2022. Historically, Indian tech startup funding hit a seven-year low, plummeting even below the $12 Bn raised in 2018.

The number of deals, too, witnessed a significant 40.8% YoY decline at 897 deals compared to 1,517+ in 2022.

It must be noted that of the $10 Bn+ raised during the year, more than $2.8 Bn (28%) was raised by five startups alone. While PhonePe raised $850 Mn, Lenskart and Flipkart lapped up $600 Mn each. Further, DMI Finance and Ola Electric received a fund infusion of $400 Mn and $384 Mn, respectively.

Overall, the median ticket size reached its lowest level since 2019 to $2.2 Mn from $4 Mn in 2019. Also, funding in women-led startups tanked 80% to $480 Mn from $2.4 Bn in 2022.

Now, before we delve deeper into understanding which stage startups or sectors got hit the most due to the extended funding dry spell, here are some funding trends of 2023 that we have identified:

• Mega Deals Below 2018 levels: Mega deals during the year under review fell to 23 deals against 28 mega deals in 2018. This also represents a 61.66% decline from the 60 mega deals in 2022.
• Top 3 Startup Hubs Saw A Major Funding Decline: On a year-on-year basis, Mumbai saw the maximum decline in funding at 62%, followed by Bengaluru at 61% and Delhi NCR at 51%
• Chennai Took The Lead Among Other Emerging Hubs: Chennai startups raised $211 Mn across 32 deals, followed by Pune at $211 Mn across 30 deals and Hyderabad at $129 Mn in 27 deals.
• Deeptech Continues To See An Uptick In Funding: Despite the ongoing funding winter, funding in the sector has been continuously rising in the last three years. In 2023, deeptech startups raised $496 Mn compared to $397 Mn raised in 2022.
• Valuation Markdowns: In 2023, investors slashed the valuations of eight unicorns, including BYJU’S, Meesho and PharmEasy.

Interestingly, Padmaja Ruparel, cofounder, Indian Angel Network (IAN), sees this shift as a strategic pivot that is reshaping India’s startup narrative.

“2023 saw a transformation in the Indian startup ecosystem, bringing a sharp focus on the fundamental purpose of business building. This meant that being ‘well-governed and valuable’ rather than ‘valuation’ became a cornerstone for founders and investors,” Ruparel added.

Seed Stage Startup Funding Plunged The Most At 72% YoY

Moving on, seed stage startups could raise only $681 Mn versus $2.4 Bn raised in 2022, representing a 72% YoY decline. The number of deals, too, slipped 36.6% to 467 from 737 in 2022.

Late and growth stage funding figures did not prove to be any consolation either, declining 60% YoY in 2023 to $2.9 Bn and $5.6 Bn, respectively.

Considering the ongoing market correction, with growth and late stage startups being scrutinised more on their ability to show the path towards profitability, the downfall at growth and late stage was quite expected.

The continued government intervention with new policies and regulations, larger corporate governance issues, and pressure to showcase a sustainable future growth path slowed down funding for growth and late stage startups.

However, the steep decline at seed stage was surprising, considering 31 early-stage focussed funds worth $1.8 Bn were launched during the year.

But, there is a catch!

Several investors that Inc42 spoke with emphasised that the seed stage funding numbers do not reveal the clear picture as most of the deals have gone unannounced.

Shashak Randev, founder VC & cofounder of 100X.VC claimed to have made 62 investments in 2023, with 70% of their portfolio raising follow-on investments at an median ticket size of $700K to $1 Mn.

Pranav Pai, founding partner and chief investment officer at early-stage VC firm 3one4 Capital even claimed 2023 as one of their most active years in terms of founding teams reaching out to them for an investment.

“Anecdotally, the early stage in India has remained on track and within range despite a challenging year. We have seen most of our peers continue to invest in pre-seed, seed, and post-seed rounds. Most of these rounds have not been announced in the media, and the founders have focussed on building the product and leading controlled launches. We expect the launch and round announcements to resume normalcy in 2024,” Pai added.

Ecommerce & Fintech Sectors Topped The Funding Charts

With $2.6 Bn+ raised across 192+ deals, ecommerce leads in terms of the number of deals in the year of the extended funding winter. As expected, almost 56% or 107 of the ecommerce deals were concentrated at the seed stage.

Meanwhile, fintech took the lead in terms of the funding amount, with startups raising $3 Bn across 129+ deals. Of the total funding, 53.3% or $1.6 Bn was raised by four companies alone – PhonePe, DMI Finance, Perfios and InsuranceDekho.

In 2023, the sector went through a rollercoaster ride as both RBI and SEBI put several regulations, policies and guidelines in place. As a result, fintech funding across all stages was cut to half in 2023, with the seed stage taking the maximum hit. Further, lending tech and banking remained investors’ favourites taking in almost 71% of the total funding.

What’s more exciting is that in the top five sectors, cleantech, including electric vehicle, climate tech, and energy startups, also made it to the top five sectors, along with deeptech and enterprise tech. Between 2021 and 2023, 30+ funds were launched with cleantech as one of their focus areas, thereby leading to continued investment in the sector.

[Edited by Shishir Parasher]

The post Startup Funding Hits A 7-Year Low Of $10 Bn As Investor Appetite Wanes In 2023 appeared first on Inc42 Media.

Three spacetech startups Dhruva Space, Bellatrix Aerospace and TM2Space are reportedly set to launch their payloads aboard Indian Space Research Organisation’s (ISRO) upcoming Polar Satellite Launch Vehicle (PSLV) – C58 XPoSat Mission next Monday.

These payloads are destined for the PSLV Orbital Experimental Module (POEM-3) on the launch vehicle, scheduled to lift off from Sriharikota in Andhra Pradesh at 9:10 AM, as per Moneycontrol’s report.

Hyderabad-based Dhruva Space plans to launch its LEAPTD (Launching Expeditions for Aspiring Technologies Technology Demonstrator) to showcase microsatellite subsystems. Meanwhile, Bengaluru-based Bellatrix Aerospace will deploy two payloads, which include Rudra 0.3 HPGP, a green monopropellant thruster crucial for maintaining satellite orbit throughout their lifespan of 10-15 years, and ARKA 200.

In a previous collaboration in April 2023, Bellatrix and Dhruva Space shared space in the POEM module of PSLV-C55 to launch their individual payloads. Besides, Bengaluru-based TakeMe2Space (TM2Space) will launch Radiation Shielding Experiments Module to assess the effectiveness of tantalum coating. 

India made history in 2022 with its inaugural private rocket launch by Skyroot and numerous satellite launches, garnering global attention.

In October, Skyroot Aerospace unveiled its indigenously built rocket Vikram-I at its new headquarters. 

In the spacetech sector, we have witnessed a significant increase in the number of Indian startups, rising from just one in 2014 to 189 in 2023.

According to Inc42’s Indian Spacetech Startup Landscape & Market Opportunity Report 2023, the spacetech sector is estimated to reach a market size of $77 Bn by 2030. 

Earlier this year, Skyroot secured INR 225 Cr (approximately $27.5 Mn) in a Pre-Series C funding round led by Temasek to drive the next phase of growth through increased investments in infrastructure, reinforcement of its technology leadership, attraction of top-tier talent, and the enhancement of its launch frequency and capabilities

Another spacetech startup Agnikul, which owns the first private launchpad within the ISRO campus, secured INR 200 Cr ($26.7 Mn) in October to accelerate the commercialisation of its existing technologies.

The post Shooting For The Sky: Three Spacetech Startups To Launch Payloads Aboard ISRO’s C58 XPoSat Mission appeared first on Inc42 Media.

Imagine our world as a ship navigating turbulent waters. The captains? A blend of tenacious entrepreneurs and venture capitalists, both equipped with a compass of innovative climate tech solutions. As the waves of climate change grow stronger, their union becomes more crucial.

One doesn’t have to look too far back in history to see how essential innovative technology backed by capital has been in resolving our world’s challenges. The way Apple revolutionised communication, or how Jonas Salk, with the aid of funding, eradicated polio – such transformations are well documented. Today’s challenge, however, is not just of a single disease or a tech revolution but of the very planet we inhabit.

The COP27 in Sharm El Sheikh, Egypt, painted a vivid picture of this challenge. But amid the voices of urgency, there rose a beacon of hope – venture capital investment in climate tech. The marriage between venture capital and climate tech innovation has proven instrumental in shaping a sustainable future. 

Much like how the Medici family funded the Renaissance, breathing life into art and science, modern-day VC firms are now the patrons of a new, greener Renaissance.

Venture Capital And Climate Tech: Not Just Investors but Visionaries

Beyond being mere financiers, VC firms play the role of ‘sage mentors’ to fledgling startups. They are the architects of change and the discerning champions of innovation. 

For instance, picture Yoda and Luke Skywalker from “Star Wars” – with startups as the young Jedis and VC firms as the wise Yoda, guiding them in their quest to combat climate change.

A Glimpse Into The Multifaceted Impact

VC investments in climate tech are a linchpin of our sustainable future, yielding a plethora of benefits. At its core, VC funding catalyses technological innovation, pushing the boundaries of what is possible.

A case in point is Tesla. Before becoming the behemoth it is today, Tesla was on the brink of bankruptcy in 2008. Just as Tesla was getting ready to close a $100 Mn Series E in the Summer of 2008, the global economy crashed, sending the company spiralling toward bankruptcy by the end of the year. An investment round led by Elon Musk and joined by prominent VCs gave it a lifeline. Today, Tesla isn’t just a car company; it’s a torchbearer for sustainable transportation.

Climate tech is not limited to electric vehicles. As Mark Twain famously said, “Buy land; they’re not making it anymore.” However, with the recent advancements in hydroponic agriculture, we might not need as much land as we thought. 

In India, amidst concerns over volatile tomato prices, hydroponic startups such as Nutrifresh Farm Tech India Pvt Ltd, backed by venture funding, are now enabling year-round tomato cultivation, stabilising prices, and significantly reducing the carbon footprint.

Global Stakes And Local Tales

As per PwC’s State of Climate Tech 2022 report, climate tech funding in 2022 represented more than a quarter of every VC dollar invested in 2022. Concurrently, India’s streets buzzed with electric two-wheelers and three-wheelers, marking a transition to eco-friendly transport. 

Additionally, India celebrated for its culinary traditions, stands on the brink of a foodtech transformation. Merging biotech and foodtech, the aim is broader than merely meeting hunger sustainably. The fusion of biotechnology and foodtech, powered by cutting-edge technology, promises a revolution in food production and consumption.

A Surat-based startup, Zero Cow Factory, leverages precision fermentation to lead in A2 beta casein production worldwide. Pursuing global endorsement for its easily digestible protein, it targets an unprecedented production cost of $20/kg by 2025. 

With a strong sustainability ethos, ZCF aims to scale globally, championing health and eco-friendliness, with a vision to nourish 10 Bn people by 2050.

The Renaissance 2.0

The original Renaissance was an era of flourishing art and science. Today, technology has ushered in a second Renaissance, one rooted in sustainability. Aided by venture capital, climate tech startups are not just challenging the status quo but reshaping it.

In Conclusion

In the narrative of tackling climate change effectively, venture capital emerges as the unsung hero. Venture capital’s role in climate tech isn’t just about funds; it’s about faith – faith in a vision of a greener future. 

As we stand at this crossroads, it’s imperative to remember that every monumental journey in history, from man’s first steps on the moon to the digital revolution, was backed by a blend of vision and capital. 

As we write the story of our planet’s future, let’s champion the unsung heroes and recognise that our collective prosperity lies in unity, innovation, and strategic investment.

The post The New Renaissance: Venture Capital Fuels Climate Tech Innovations appeared first on Inc42 Media.

After the global economic slowdown and high-interest rates brought an abrupt end to the initial public offering (IPO) party in 2022, the year 2023 saw some signs of revival in the public markets globally.

In India, the IPO landscape was abuzz with activities, especially in the second half of 2023, on the back of strong economic growth and positive domestic and foreign investor sentiments. Overall, the number of IPOs crossed the 100 mark by the start of December this year.

In line with this, new-age tech IPOs, too, picked up pace on the Indian stock exchanges. A total of five Indian new-age tech companies went public in 2023 as against a mere three in 2022.

The five new-age tech companies – ideaForge, Mamaearth, Yatra, Zaggle, and Yudiz – collectively raised over INR 3,600 Cr this year through their IPOs. 

Experts believe that 2024 will see even more Indian companies taking the IPO route given that the benchmark indices, Sensex and Nifty50, are hovering around their all-time high levels. This is also expected to result in a surge in IPOs of new-age tech startups.

While the likes of Ola Electric, GoDigit, FirstCry and OYO have filed their draft red herring prospectus (DRHPs) with the Securities and Exchange Board of India (SEBI), others like Swiggy, PayU, and Garuda Aerospace are also eyeing public listings next year.

Then, there are also not-so-prominent names like Travel Boutique Online and agri-drone company AITMC Ventures, which filed their draft documents this year and are likely to launch their IPOs next year.

In addition, Mobikwik, Capillary Technologies and ixigo, which earlier postponed their plans of public listing due to adverse market conditions, may also decide to go public, considering the improvement in investor sentiment.

Considering the aforementioned factors, Inc42 expects at least 12 new-age tech startups to go public in 2024. With that said, here are the new-age tech companies that are likely to go public next year.

12 Startups Likely To Go Public In 2024

Awfis To Be India’s First Publicly Listed Coworking Startup 

Chennai-based coworking space provider Awfis Space Solutions is set to launch its IPO in 2024 following its filing of its DRHP at the fag end of December.

As per the DRHP, the IPO comprises a fresh issue of INR 160 Cr and an offer-for-sale component of up to 1 Cr shares. With this, Awfis is set to become the first Indian coworking startup to go public. 

The OFS component will comprise share sale of up to 5.01 Mn equity shares by Peak XV, up to 4.94 equity shares by Bisque Limited, and up to 75,174 equity shares by Link Investment Trust.

The startup plans to allocate INR 52.5 Cr from the net proceeds to establish new coworking setups. It aims to launch 15 new centres under the ‘Awfis’ format in FY25. These will span across Mumbai, Bengaluru, Delhi NCR, Hyderabad, Pune, Chennai, Kolkata, Ahmedabad, Lucknow, Bhubaneswar, and Jaipur. 

The remaining net proceeds, amounting to INR 68 Cr, will be utilised as working capital.

Founded in 2015 by Amit Ramani, Awfis has evolved from a coworking network to a tech-enabled workspace solutions platform, catering to freelancers, startups, SMEs, large corporates, and MNCs.

Having secured $90 Mn from investors, Awfis completed its last funding round in May 2020.

The startup competes with the likes of WeWork, Smartworks, BHIVE, 91Springboard, OYO’s Innov8and Tablespace. 

Awfis reported revenue of INR 545.28 Cr in FY23, compared to 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 space provider reported an operating revenue of INR 187.7 Cr, while its loss stood at INR 8.56 Cr.

FirstCry Wants To Be The Second New-Age Ecommerce Major To Go Public

FirstCry filed its DRHP with the market regulator SEBI in the last week of December. The Supam Maheshwari-led ecommerce unicorn is looking to raise INR 1,816 Cr through fresh issue of shares. With this, the startup is on track to become the second new-age vertical ecommerce major to go public after Nykaa.

The public issue also includes an OFS component of up to 5.4 Cr equity shares. Japan’s SoftBank, which owns over 25% stake in the startup, will offload 2 Cr shares, whereas Premji Invest will sell 86 Lakh shares during the OFS. Founder Supam Maheshwari will also sell some shares in the IPO.

The startup plans to use the net proceeds from the IPO for setting up new modern stores and warehouses, as well as lease payments for existing modern stores in India, totaling INR 648 Cr. 

Additionally, it aims to use INR 155.6 Cr for investment in its subsidiary FirstCry Trading for overseas expansion in Saudi Arabia. It will also utilise INR 170.5 Cr from the IPO proceeds for investment in subsidiary Globalbees Brands to acquire an additional stake in indirect subsidiaries. 

While INR 100 Cr will be used for sales and marketing initiatives, INR 57.6 Cr will be utilised for technology and data science costs. The remainder amount is intended to be used for funding inorganic growth through acquisitions, other strategic initiatives, and general corporate purposes.

Founded in 2010 by Maheshwari and Amitava Saha, FirstCry is an omnichannel baby and kids marketplace, providing various categories of products from clothing to essentials.

The startup entered the unicorn club in 2020 after raising $296 Mn from SoftBank’s Vision Fund. 

It posted a consolidated net loss of INR 486 Cr in the fiscal year 2022-23 (FY23), a rise of 518% from INR 78.6 Cr in the preceding fiscal year.

Garuda Aerospace Expedites Listing Plans 

Chennai-based drone startup Garuda Aerospace, which recently raised INR 25 Cr (about $3 Mn) in a bridge funding round led by Venture Catalysts and WeFounderCircle, is eyeing a listing around mid-2024.

In an interaction with Inc42 earlier this year, founder and CEO Agnishwar Jayaprakash revealed his IPO plans, expressing the hope to initiate proceedings post-March 31, 2024. However, the startup seems to have expedited its public listing plans since then.

Founded in 2015 by Jayaprakash, Garuda manufactures and sells drones, and offers drone-as-a-service (DaaS) solutions to sectors like agriculture, defence, mining, mapping, and warehouse management.

Earlier Jayaprakash stated, “We don’t want to be a startup with an inflated valuation because then it becomes difficult to maintain that and you just keep slipping. I want to climb the mountain. I feel that adding value and making a profitable business automatically will appeal to retail investors.”

Meanwhile, the Indian government is aiming to make India the drone hub of the world by 2030 and has implemented several reforms to foster the growth of drone manufacturing and usage within the nation. Consequently, two drone startups, DroneAcharya and ideaForge, have listed on the stock exchanges since 2022.

Currently valued at $250 Mn, Garuda Aerospace is looking to close FY23 with a revenue of INR 100 Cr. Speaking with Inc42, Jayaprakash had earlier said that the drone startup was eyeing a revenue of INR 1,000 Cr in FY24.

Go Digit Refiles IPO Papers

Even after refiling its DRHP, Insurtech major Go Digit General Insurance has yet to receive the final approval for its $440 Mn IPO.

The Bengaluru-based startup, which first filed its DRHP in August last year, refiled the IPO papers in March this year to address the concerns raised by SEBI about its employee stock appreciation plans. 

Go Digit’s IPO comprises a fresh issue of shares worth INR 1,250 Cr and an offer for sale (OFS) of 109.45 Mn shares. The startup plans to deploy the proceeds to expand operations and increase its capital base. 

After filing its first DRHP with the SEBI, the startup also received the IRDAI’s approval to launch the IPO in November, but the market regulator kept the IPO in ‘abeyance’.

In its new addendum of the draft prospectus, Go Digit General Insurance disclosed that it had received a show cause notice and multiple advisories from the insurance regulator. 

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

In FY22, its loss widened 141% year-on-year (YoY) to INR 295.8 Cr. However, its operating revenue stood at INR 5,267.6 Cr in FY22 as against INR 3,243.4 Cr in the previous fiscal year.

Mobikwik Presses The IPO Restart Button 

One Mobikwik Systems Ltd, the parent company of fintech unicorn Mobikwik, has restarted preparations for its $84 Mn (around 700 Cr) IPO.

According to a report, Mobikwik is working with DAM Capital Advisors Ltd and SBI Capital Markets Ltd to get listed.

The company is looking to go public next year.

It is pertinent to note that MobiKwik filed DRHP for its IPO of around INR 1,900 Cr with SEBI in 2021 – a year marked by numerous new-age tech companies going public. According to the draft documents, the IPO comprised an issue of new shares worth INR 1,500 Cr and an offer of sale (OFS) element of INR 400 Cr.

In the same year, the fintech major also bagged the SEBI nod for the IPO.

However, the company suspended the IPO process due to a downturn in the global equities market. In January 2022, the startup explicitly said that it would refrain from making a market debut until market conditions stabilised.

Meanwhile, Mobikwik claimed to have posted profit for the second consecutive quarter in Q2 FY24 with a PAT of INR 5 Cr.

Ola Electric Becomes First Indian EV Startup To File For IPO

Recently, Bhavish Aggarwal-led electric vehicle (EV) maker Ola Electric filed its DRHP with SEBI for an INR 5,500 Cr+ public listing. 

As per the DRHP, the Ola Electric IPO will comprise a fresh issue of INR 5,500 Cr. It will also have an offer for sale (ODS) component of up to 9.5 Cr shares. 

Cofounder and CEO Aggarwal and major investors, including SoftBank, Temasek, Tiger Global, Alpha Wave, Tekne Capital, and Matrix Partners, are set to participate in the OFS as Ola Electric prepares for its listing on the BSE and NSE. 

According to the DRHP, the funds from the fresh issue will be directed towards capital expenditure for the Ola Gigafactory project, research and product development, organic growth initiatives, and general corporate purposes. Additionally, the proceeds will be allocated for the repayment or prepayment of the debt.

As per the draft document, the OEM’s net loss surged 1.87X to INR 1,472 Cr in the fiscal year ending March 2023 from INR 784.1 Cr in FY22.

The company also disclosed that its Q1 FY24 loss stood at INR 267.1 Cr.

Founded by Ola Cabs cofounder Bhavish Aggarwal, Ola Electric is an electric vehicle manufacturer, which currently has a lineup of five scooters. 

At the end of October 2023, the company managed a comprehensive omnichannel distribution network, featuring 935 experience centres, which include 414 service centres.

In October this year, Ola Electric closed an INR 3,200 Cr ($384 Mn) funding round in 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.

OYO Slashes IPO Size To $400-$600 Mn

OYO filed its DRHP through a confidential pre-filing route and a reduced size in March this year, three months after SEBI directed the hospitality unicorn to refile its draft papers.

OYO initially filed its DRHP with the SEBI in 2021. At the time, it planned to raise INR 8,430 Cr ($1.2 Bn). However, the IPO size has now been scaled down to INR 3,286 Cr–INR 4,929 Cr ($400 Mn-$600 Mn). 

Founded in 2012 by Ritesh Agarwal, the SoftBank-backed startup’s operating revenue grew 14% to INR 5,463.9 Cr in FY23 from INR 4,781.3 Cr in the previous fiscal year. It mainly earns revenue from sales of accommodation services, commission from bookings, and subscriptions. 

Earlier this year, Agarwal told employees that the startup was on course to report its first ever profitable quarter in Q2 FY24, with a project profit of INR 16 Cr.

Lightbox-Backed PayMate To Refile DRHP With SEBI 

Even after SEBI asked Mumbai-based B2B payments solutions provider PayMate India to refile its DRHP, the startup has yet to do so.

PayMate first filed its DRHP for an INR 1,500 Cr IPO in May 2022. It did not proceed with its IPO plans due to uncertain market conditions.  

As per the IPO prospectus, Ajay Adiseshann, the founder of PayMate intended to sell a significant portion of his stake worth INR 134.73 Cr. 

Founded in 2006 by Adiseshan, PayMate counts Visa, Lightbox and Recruit Strategic Partners as its investors. 

PayMate’s consolidated net loss stood at INR 55.7 Cr in FY23, down a marginal 3.5% YoY. Its operating revenue rose 11.7% YoY to INR 1,350.1 Cr in FY23.

PayU India Eyes $500 Mn IPO

Prosus-backed fintech giant PayU India is looking to file its draft red herring prospectus (DRHP) with the market regulator in February for an IPO of at least $500 Mn. The IPO will likely value the company between $5 and $7 Bn.

The company is said to be aiming to go public by the end of 2024. It has enlisted Goldman Sachs, Morgan Stanley and Bank of America as IPO advisors. Further, it plans to involve at least one Indian investment bank in the transaction. 

PayU claims to serve more than 4.5 Lakh merchants, over 70 large banks via Wibmo, and 2 Mn+ customers with credit facilities in India.

PayU India enables businesses to collect payments through over 150 modes, including debit cards, credit cards, net banking, BNPL, QR, UPI, EMIs, and wallets. It competes with Razorpay and Cashfree in India.

Its revenue surged 21% YoY to $497 Mn in the first half of FY24 from $412 Mn in H1 FY23, Prosus revealed in its half-yearly financial report.

Portea Medical Gets SEBI Nod For INR 1,000 Cr IPO

Earlier this year, Healthvista India, the parent company of the healthtech startup Portea Medical, received approval from SEBI for its IPO.

Portea filed its draft papers with the market regulator in July 2022, along with an addendum to its draft red herring prospectus (DRHP) on March 10, 2023.

The IPO will comprise a fresh issue of equity shares worth INR 200 Cr and an offer for sale (OFS) of up to 5.62 Cr shares worth INR 800 Cr.

The OFS will see Accel sell up to 2.48 Cr shares that it holds across Accel Growth III Holdings (Mauritius) Limited, Accel India III (Mauritius) Limited and Accel India V (Mauritius) Limited. Ventureast Life Fund III will sell up to 42.78 Lakh shares, and MEMG CDC Ventures will sell up to 44.45 Lakh equity shares.

Qualcomm Asia Pacific will be selling up to 42.56 Lakh equity shares and Sabre Partners Trust will offload up to 39.84 Lakh equity shares in the OFS.

Healthvista India plans to use the incoming funds for its subsidiary’s working capital requirements, debt repayment, medical equipment purchase, inorganic growth, marketing, and general corporate needs.

Founded in 2013 by Krishnan Ganesh and his wife Meena, Portea offers healthcare services,  which include maternal care, physiotherapy, nursing, lab tests, counselling, and critical care.

Portea is currently operational in 16 cities across India. In FY22, the healthtech startup posted a net standalone loss of INR 53.82 Cr against revenues of INR 96.37 Cr.

Swiggy Set To Float The Biggest Startup IPO Of 2024 

In what is being called the biggest IPO by an internet company next year, food delivery giant Swiggy will likely list on the stock exchanges in mid-2024 with an issue size of $1 Bn (INR 8,300 Cr).

As per market analysts, one of the major things to watch out for will be Swiggy’s valuation, which has seen various markdowns and markups. 

Swiggy initiated IPO preparations last year, initially eyeing a 2023 listing. However, global tech startup valuations experienced a sharp decline, causing Swiggy to temporarily defer its plans.

Founded in 2014 by Sriharsha Majety, Nandan Reddy, Phani Kishan Addepalli, and Rahul Jaimini, Swiggy has raised $3.6 Bn to date.

Swiggy’s net loss jumped 2.2X to INR 3,628.9 Cr in FY22 from INR 1,616.9 Cr in FY21 on the back of a sharp rise in expenses.

Unicommerce Sets Sight On A 2024 Listing

Unicommerce eSolutions Pvt Ltd, which offers a software-as-a-service (SaaS)-based order management and fulfilment platform to ecommerce and retail businesses, is expected to make a public listing late next year. The cofounder of Snapdeal, Kunal Bahl, mentioned about the Unicommerce IPO in an X post on November 7.

The startup enables end-to-end management of ecommerce operations for D2C brands, retail companies, and other online sellers through its comprehensive suite of SaaS-based technology products.

Unicommerce’s platform keeps track of stocks across multiple warehouses, keeps inventory information updated across multiple sales channels (both offline & online) and automates order pickups to support faster and more accurate deliveries.

Unicommerce’s operating revenue zoomed 52% to INR 90 Cr in FY23 from INR 59 Cr in FY22 due to a strong demand for its services.

Snapdeal acquired Unicommerce in 2015. Established in 2012  by IIT Delhi alumni — Ankit Pruthi, Karun Singla, and Vibhu Garg — the founders exited the company within two years.

[Edited by Vinaykumar Rai]

The post Spring Time On D-Street: Meet The 12 Startups Likely To Go Public In 2024 appeared first on Inc42 Media.

Consumer-focused fund Sixth Sense Ventures, which has backed companies like Bira91, Vahdam and Veeba Foods among others, has invested INR 100 Cr (around $12 Mn) in Indore-based spices brand Pushp.

Sixth Sense Ventures founder and CEO Nikhil Vora told ET that through this deal the VC firm has also bought a stake in Pushp from its initial institutional investor A91 Partners.

A91 Partners, an investment firm floated by former Sequoia India executives Abhay Pandey, VT Bharadwaj and Gautam Mago, acquired a 25% stake in Pushp for INR 125 Cr in 2020. 

Pushp is known for processing and blending spices like chilli, turmeric and coriander. 

Founded by industry veterans, Mahendra and Surendra Surana, Pushp has strategically invested in distribution and branding efforts, extending its reach beyond Madhya Pradesh to states like Maharashtra, Rajasthan, Uttar Pradesh, Bihar, and Gujarat. With a consistent revenue growth of 25% CAGR over the last five years, Pushp plans to evolve from a regional leader to a significant national brand.

The company aims to expand its national footprint in the INR 90,000-Cr market. Of this, the branded spices market is estimated to be around INR 25,000 Cr.

Over the last 12-15 months, FMCG companies such as Dabur, Wipro Consumer Care, Tata Consumer, and Emami Agrotech have either entered or strengthened their presence in this segment.

Other legacy players in the spices market include Everest Food Products and MDH.

“One key thing that I’ve seen in the consumer market is that incrementally a lot of disruptors are emerging from regional powerhouses,” Vora said. 

According to a regulatory filing by Tofler, Pushp recorded a 20% year-on-year (YoY) growth in its FY23 operating revenue to INR 338 Cr, while its profit declined from over INR 16 Cr to nearly INR 10 Cr due to rising raw material prices. 

“With a consistent revenue growth of 25% CAGR (compound annual growth rate) over the last five years, Pushp is evolving from a regional leader to a significant national brand,” the company said in a statement.

The funding coincides with the government’s push to explore new spice markets, strengthen existing ones, and promote value-added products to elevate spice exports from the current $4 Bn to $10 Bn by 2030. 

India, the world’s largest spice producer, commands a 70% share in global spice production. The global spices and seasonings market is projected to grow at a CAGR of 5.7%, reaching $35.1 Bn by 2028, according to a report by IMARC Group.

The post Sixth Sense Ventures Picks Up Stake In Spices Brand Pushp For INR 100 Cr appeared first on Inc42 Media.

Marked by a confluence of economic downturn and funding constraints, the year 2023 has proven to be a challenging one for the Indian startup ecosystem on many fronts. Even late and growth stage ventures bore the brunt of the funding crunch, with new fund launches by venture capital firms decreasing both in total value and the number of fresh funds.

Imperative to mention that compared to 2021 and 2022, total funding in 2023 declined by $32 Bn and $15 Bn, respectively, to stand at $10 Bn as of December 25.

Also, the Indian startup ecosystem saw many controversies take shape, casting shadows over investor confidence. Instances of mismanagement and alleged fraud involving startups like GoMechanic, B Capital-backed Mojocare, and Rahul Yadav-led Broker Network raised governance concerns among VCs.

The wave of deception not only invited scrutiny of several Indian startups but also sparked dissatisfaction among Limited Partners (LPs). This dissatisfaction triggered a significant shift in LPs’ relationship with venture capital firms, prompting a re-evaluation of fund recommendation and management processes.

Despite these challenges, 2023 saw the announcement and launch of 64 funds, including venture capital funds, micro-funds, and corporate VC funds. These funds amounted to over $5.6 Bn. In comparison, 2022 witnessed the launch of 126 funds, raising over $18 Bn for startup investments.

Now, let’s take a deeper dive into the fund launch scenario in the world’s third-largest startup ecosystem tracked by Inc42 during the year of extended funding winter.

Early & Early-Growth Stage Fund Launches Took Centre Stage In 2023

In 2023, early-stage startups emerged as the investor favourites. This made way for 31 funds launched with a corpus of $1.8 Bn.

It is essential to mention that some early-stage VCs started seeing good returns from their funds this year. A case in point is Blume Ventures, an early stage VC firm that has backed unicorns such as Unacademy, Slice, Purplle, and Spinny.

The firm reported that its inaugural fund (Fund I) and its extension Fund IA have realised 5x of the invested capital so far and are on track to realise 6x gross returns by their full lifecycle in 2024.

Blume Ventures’ Fund I was launched in 2011 with an initial capital of INR 98 Cr, followed by INR 24.5 Cr for its extension Fund IA in 2013.

While the number of early stage funds increased in 2023, a notable trend is the rise of micro VCs, whose small-ticket funding into pre-seed and seed-level startups has grown markedly in the past couple of years. This trend gained momentum after 2016 and has continued to grow in the last two years.

Furthermore, LPs are increasingly expressing interest in micro VC funds, drawn by the potential for more growth opportunities.

A prominent example is Mumbai-based Artha Group, which launched an INR 450 Cr winners-only micro VC fund, focussing on top-performing startups from the group’s portfolio of over 100 startups, with an average investment size of INR 20 Cr per investment.

Earlier this year, micro VC fund CapFort Ventures launched an INR 200 Cr India-focussed tech fund, while Singapore-based Grayscale Ventures made the first closure of its $20 Mn micro fund at $10 Mn.

In addition to making low-risk investments, VC funds are focussing on follow-on investments in well-performing portfolio companies, which has also increased the emphasis on growth stage funding.

Following early stage funds, the early-to-growth stage witnessed the highest number of fund launches, with 14 funds, amounting to $1 Bn. Investors believe that more Series A funding is expected to happen next year in the growth stage.

Late Stage Funds Remained Under Pressure

Throughout the year, there was significant pressure on growth and late-stage funds. Recognising the importance of more responsible and value-driven investments, VCs are scaling back on the number of funds launched.

Understandably, the launch of growth, growth-to-late stage, and late-stage funds has been low, with only 16 fund launches amounting to $2.3 Bn.

While late-stage fund launches may not see a significant increase in 2024, activity in the growth and growth-to-late funding stages is expected to rise.

A significant trend likely to accompany this shift is the departure of high-profile startup executives from their current ventures to establish new startups, with expectations of securing substantial funding from VCs.

For instance, Swiggy’s senior vice-president (SVP) Karthik Gurumurthy is departing the food tech giant to launch his startup and is said to be in talks with multiple venture capital firms, including Matrix and Accel, for funding.

Similarly, Vivek Sinha, former chief operating officer (COO) of edtech unicorn Unacademy, reportedly secured $11 Mn (around INR 91 Cr) in funding for his new edtech startup.

SaaS, Enterprise Tech Took The Spotlight

The year has seen a discernible trend toward sector-focussed fund launches in India. Out of the 64 funds launched so far this year, 19 have placed a strategic emphasis on SaaS-enterprise tech, with fintech closely following at 16 funds.

Pentathlon Ventures and Together Fund are among the VC firms that have launched SaaS-focussed funds.

Notably, the climate tech sector, which is still evolving in both investor perception and business models, continues to witness fund launches. Avaana Capital and Capria Ventures are notable VC funds that have introduced climate-focussed funds.

Meanwhile, AI has emerged as a newfound sweet spot in the VC arena, garnering significant attention and becoming a favoured investment choice for the year.

As of now, VCs are facing challenges in delivering returns to their LPs. Also, with the IPO market stagnant and M&A activities slow to pick up, many VCs have been unable to return capital to their LPs in the past 12 months.

Consequently, LPs are hesitant to inject additional capital into the ecosystem during this period of uncertainty. For now, the outlook for VC fund launches in 2024 remains uncertain, and it remains to be seen how the landscape will evolve in the coming year.

The post Dry Spell Reigns: Only 64 Funds Worth $5.6 Bn+ Launched In The Year Of Extended Funding Winter appeared first on Inc42 Media.