BUSINESS
US-based Private Shares Fund cuts Eruditus’ fair value by 9%, effectively valuing it at $2.9 billion
The Private Shares Fund's decision to decrease the fair value of Eruditus in the January-March period came even as Eruditus achieved break-even during the quarter
BUSINESS
US-based Baron Capital cuts Swiggy’s fair value by another 10%, for second time in 3 months
Baron Capital has now slashed the fair value of Swiggy for the second time in three months, similar to the US-based asset management company Invesco. Invesco effectively halved Swiggy's valuation to $5.5 billion as of January 31, 2023.
BUSINESS
SaaS startup Zluri in talks to raise $15-20 million in Series B funding round
The round is expected to be led by Eight Roads Ventures and Zluri's existing investor Lightspeed Venture Partners
BUSINESS
Ola Electric taps Kotak, Goldman Sachs for IPO, likely to hit market in early 2024
Kotak Mahindra Capital and Goldman Sachs are currently in advanced talks to be selected as financial advisors, with Kotak closely collaborating with the startup to determine the IPO's structure
BUSINESS
Founders need to have realistic expectations post the downturn, Matrix Partners believes as it closes its largest-ever fund
Balaraman and Tarun Davda, Partner and Managing Director of Matrix Partners India, spoke to Moneycontrol after closing their fourth India-dedicated fund, raising $525 million. Along with General Partner Commitment and employee participation, the fund was closed at $550 million, the two partners said. This fund is the largest ever raised by the venture capital firm and will be used to invest in around 45-50 companies.
BUSINESS
Matrix Partners expands India-focused fund to $525M amid funding winter
Even as Matrix was one of the most active startup investors, the VC firm halved its investments in 2022 from a year earlier, when the VC participated in 22 rounds, data by Tracxn Technologies showed. This year, the VC has not participated in a single deal yet
BUSINESS
India’s edtech soonicorns are losing connect with their valuations as growth sputters
According to experts, if the business model of edtech companies doesn’t make unit economic sense, it is not sustainable and scalable
BUSINESS
Unacademy to accelerate ESOP vesting period by one year as it skips cash appraisals
In February, Munjal had said that Unacademy will not be giving employees a cash appraisal for FY24 (2023-24) adding to a long list of cost-cutting initiatives the edtech has taken in the last 15 months to prioritise profitability amid worsening funding winter.
BUSINESS
Top VCs meet in Bengaluru, discuss investment strategies, corporate governance lapses at Indian startups
VCs engaged in conversations centred around the state of corporate governance matters within Indian startups and explored strategies for early-stage VC firms to implement effective checks that promote adherence to unquestionable business practices
BUSINESS
ZestMoney to stop insurance biz, affiliate programmes as it charts revival plan
Chapman explained how it was critical for fintech businesses to diversify and have different offerings amid rising competition in the space over the last two years. But she said that most of these companies realised that the core lending business is usually the most profitable.
BUSINESS
MC Interview: We played a good game, we have no regrets, Co-founder Lizzie Chapman after resigning as ZestMoney CEO
As part of its revival efforts, ZestMoney will shut down its insurance business and affiliate programmes and will shift majority of its focus towards its core business of lending and EMI for consumer goods.
BUSINESS
ZestMoney 2.0: New leadership, assured variable pay for employees & profitability goals set
ZestMoney will be run by new leadership team of Mohit Chhajer, Mandar Satpute and Abhishek Sharma. The startup has 150 employees
BUSINESS
US-based Baron Capital marks down Swiggy’s fair value by 34% after Invesco double blow
Baron Capital holds about 0.7 percent stake in Swiggy and its fair value estimate implies a $7.3 billion valuation for the foodtech unicorn.
BUSINESS
SoftBank-backed Indian startups cut costs by 50-75%, lay off over 5,000 people to weather funding winter
Since the start of 2022, companies including unicorns Unacademy, Meesho, Swiggy and Cars24 have reduced costs heavily to extend their runway by at least 12 months
BUSINESS
Byju’s raises $250 million from US investment firm Davidson Kempner
Moneycontrol reported earlier this week that the edtech firm was looking to raise $1 billion in a mix of equity and structured instruments via US-based asset management companies and Middle East-based sovereign funds. Of the $1 billion, about $300 million would be raised through structured instruments, with the rest coming as equity at a flat $22 billion valuation
BUSINESS
SoftBank pins hope on Generative AI as it charts roadmap for cautious 'offence' from 'total defence'
During his second earnings presentation without SoftBank CEO Masayoshi Son directly addressing shareholders, CFO Yoshimitsu Goto struck a more confident tone compared to his previous remarks
BUSINESS
SoftBank's Vision Fund loses record $32 billion in 2022-23 amid falling tech valuations
SoftBank reported an annual loss of 970 billion Yen (about $7.2 billion) for the year ended March 31, 2023.
BUSINESS
Byju's on the boil with plans to raise $1 billion even as startups freeze in funding winter
Around $700 million of the $1 billion funding round will be raised through equity, and one of the three Middle East-based sovereign funds is in advanced talks to lead the round
BUSINESS
As SoftBank sits out, Tiger Global and Sequoia invest in just 11 deals in 2023 so far vs 59 in year-ago period
While Tiger Global participated in only one deal, SoftBank has not struck a single deal in India since July last year. Sequoia Capital, Tiger Global and SoftBank had participated in 28, 28, and 3 deals, respectively, in the same period of 2022
BUSINESS
Sequoia-backed Cuemath sacks 100 employees, founder Manan Khurma returns as CEO
The current CEO of the company, Vivek Sunder, will transition from his full-time role and will continue to work with the top management at Cuemath in an advisory capacity
BUSINESS
3one4 Capital raises $200 mn in fourth early-stage fund; adds to more VC dry powder
The fund, which was raised in two-and-a-half months despite weak market sentiments, was oversubscribed to the extent of $250 mn. The management however, decided to stick to the intended size
BUSINESS
Inside Unacademy: Slowing growth, failed acquisitions, a problem of plenty
Unacademy’s hope may lie in offline coaching centres, which go against its original goal of tech-driven disruption, but are a dependable and lucrative business model
BUSINESS
VCs in wait-and-watch mode as startups brace for second-order impact of ED searches at Byju’s offices
Since the ED has not filed any direct allegation against the company, shareholders may not be immediately worried. “But the fact that founder and CEO Byju Raveendran is evasive is worrying. That raises questions. Is he hiding something? This might be concerning them,” said an investor
BUSINESS
Tiger Global-backed savings startup Jar to foray into digital lending business
Jar’s move to jump on the digital lending frenzy comes at a time when several fintech startups, including some of the most-valued companies in India, are putting their foot down on lending, as India continues to remain a credit-starved market.
