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Kreedo Secures $4 Million in Series A Funding Round

By
Garima Bansal
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0

Kreedo, an edtech platform focused on early childhood education, has secured $4 million in a Series A funding round co-led by Heritas Capital, based in Singapore, and UBS Optimus Foundation. The round also saw participation from existing investors including Gray Matters Capital, 1Crowd, The Chennai Angels, and The Joka Angel Network.

The funds will be used to enhance Kreedo’s product offerings and expand its presence across new regions in India. Founded in 2012 by Mridula Shridhar and VK Manikandan, Kreedo partners with affordable private schools and preschools to revolutionize early years education. The platform’s unique 6T learning framework is built around Kreedo Activity Labs, which provides a structured environment focused on play-based learning.

Targeting children aged 3 to 8 years (Nursery to Grade 2), Kreedo aligns with the play-based learning guidelines prescribed in India’s National Education Policy (NEP) 2020. The platform offers a comprehensive solution that helps schools enhance learning outcomes significantly.

Over the past two years, Kreedo has doubled its revenue and expanded its reach from 700 to 1,700 schools, impacting over 140,000 children—up from 55,000 previously. Moving forward, Kreedo plans to extend its offerings to grades 3-5 and further develop Practico, its digital home learning platform. Additionally, the company will scale a specialized pre-primary teacher training franchise program aimed at creating a pool of job-ready, qualified teachers for its partner schools and the broader early education market.

SME IPOs Surge in Popularity with Record Oversubscriptions, Outperforming Mainboard IPOs in Indian Market

By
Garima Bansal
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0

The recent 400-times oversubscription of Resourceful Automobile’s ₹12-crore SME IPO, a two-wheeler dealer with just two Yamaha showrooms and eight employees, highlights a growing trend in the Indian primary market where such oversubscriptions are becoming increasingly common.

According to data from Prime Database, 152 SME IPOs have been launched in 2024, with an average issue size of ₹33 crore and an average oversubscription of nearly 200 times. Notably, 18 of these IPOs were oversubscribed by more than 400 times. For example, Hoac Foods India‘s ₹5-crore IPO was oversubscribed 1,963 times in May, and Magenta Lifecare‘s ₹6.6-crore IPO saw over 1,000 times oversubscription.

In comparison, for every mainboard IPO, around three SME IPOs have been launched annually over the past three years. This year, 45 mainboard IPOs have been introduced, with an average issue size of ₹1,074 crore and an average oversubscription of 43 times.

In 2023, for instance, 182 SME IPOs were launched with an average oversubscription of 86 times, average listing gains of 36%, and average stock returns of 216%. In contrast, 57 mainboard IPOs saw an average oversubscription of 32 times, with listing gains of 29% and similar post-listing returns of 216%.

Moreover, the average listing gains for SME IPOs have been steadily increasing, rising from 2.2% in 2019 to an impressive 74% in 2024. The combination of attractive listing gains and strong post-listing performance with relatively low investment has kept investor interest in SME IPOs high, despite the small size and nature of the underlying businesses.

NSE to Reapply for NOC to Move Forward with ₹30,000 Crore IPO

By
Garima Bansal
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0

The National Stock Exchange (NSE) is preparing to once again seek approval from the Securities and Exchange Board of India (SEBI) to move forward with its long-awaited initial public offering (IPO), according to sources familiar with the situation. The exchange’s IPO plans have been delayed due to ongoing regulatory issues, including the co-location case.

During its recent annual general meeting, shareholders discussed refiling for the no-objection certificate (NOC) with SEBI. The NSE can only proceed with filing the draft IPO documents after securing this NOC.

The NSE initially filed its draft red herring prospectus (DRHP) in 2016, but SEBI returned it in 2019, requiring the exchange to refile after resolving the co-location investigation. This matter is currently pending before the Supreme Court, with the next hearing scheduled for September 3.

In response to a recent writ petition regarding the delay of the NSE IPO, SEBI informed the Delhi High Court that the exchange has not yet submitted a new request for an NOC. NSE’s previous attempt to seek approval for the listing in June 2022 was rejected due to lapses in governance, technology, surveillance, and trading practices.

The NSE’s IPO is anticipated to be the largest in India’s history. Shares of the NSE are currently trading at ₹6,000 each in the unlisted market, nearly double their value from a year ago. At this price, the exchange’s market capitalization would reach approximately ₹3 lakh crore.

If the exchange decides to sell 10% of its equity in the IPO, the offering size could be around ₹30,000 crore. This would surpass Life Insurance Corporation’s ₹21,008 crore IPO in May 2022, which is currently the largest in India, followed by Paytm‘s ₹18,300 crore IPO in November 2021.

Some of the major shareholders in NSE include Life Insurance Corporation (LIC) with 7.2%, Stock Holding Corporation (4.44%), SBI Capital Markets (4.33%), State Bank of India (3.23%), and Temasek Holdings (5%).

For the fiscal year ending March 31, 2024, NSE reported a net profit of ₹8,306 crore, marking a 13% increase from the previous year. The exchange’s revenue grew by 25% to ₹14,780 crore compared to FY23.

Additionally, NSE received SEBI approval to increase its authorized share capital, allowing it to issue bonus shares. In May, the exchange announced a four-for-one bonus issue along with a ₹90 per share dividend. However, IIFL Securities noted that SEBI’s proposed norms to curtail heightened Futures & Options (F&O) trading could significantly impact NSE’s turnover, potentially reducing trading volumes by nearly one-third and leading to a projected 20-25% reduction in FY26 estimated earnings per share (EPS).

HSBC Increases Funding Pool for Tech Startups to $600 Million, Up from $250 Million

By
Garima Bansal
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0

HSBC India has significantly increased its funding program for local tech startups to $600 million, reflecting the bank’s confidence in the sector’s growth and the increasing demand for global exposure among Indian firms. This expansion builds on HSBC’s strategy of targeting mid-market companies in India, specifically those with turnovers between ₹500 crore to ₹4,000 crore ($50-500 million) by Ajay Sharma, MD and head, commercial banking, HSBC India.

The funding initiative, which began in 2019 with a $50 million allocation, was raised to $250 million in 2022 and now stands at $600 million. Of this current corpus, 50% has already been allocated. A key factor driving this expansion is the Indian government’s investment in digital infrastructure and the widespread availability of affordable data, which has fueled the growth of tech startups.

The funding covers various sectors, including B2B commerce, consumer tech such as used car platforms, fintech, direct-to-consumer, agritech, logistics, and electric vehicles. HSBC India engages closely with venture capital providers, participating in Series A, B, and C funding rounds, helping startups transition from experimental phases to more established business operations.

Despite the funding challenges faced by startups over the past 18 months, HSBC’s portfolio has remained resilient. Unlike equity funding, HSBC focuses on providing working capital finance, helping startups manage operational needs during growth phases. The bank’s strategy aligns with companies that are expanding internationally, leveraging its vast transaction banking capabilities to support cross-border operations and foreign exchange requirements.

HSBC aims to continue expanding its funding for tech startups, maintaining growth in its SME portfolio despite broader economic uncertainties. The bank’s commitment to the sector underscores its belief in the transformative potential of Indian startups and their increasing role in the global market.

Wealthy Investors Bet Big on Quick-Commerce: Amitabh Bachchan and Raamdeo Agrawal Acquire Stakes in Swiggy and Zepto

By
Garima Bansal
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0

Public market-bound new-age companies, especially those in the quick-commerce sector, are becoming top investment choices for wealthy individuals. Notably, the family office of Bollywood superstar Amitabh Bachchan has acquired a small stake in Swiggy by purchasing shares from the food delivery and quick-commerce company’s employees and early investors.

Motilal Oswal Financial Services chairman Raamdeo Agrawal has also invested in Swiggy at a time when quick commerce is experiencing a surge in fundraising. Agrawal further expanded his portfolio by acquiring a stake in Zepto during its recent $665 million funding round.

Although the exact investment amounts by Bachchan and Agrawal remain undisclosed, sources indicate that these are substantial investments for individual investors. The transactions were reportedly based on a valuation of approximately $10-11 billion for Swiggy, highlighting the rapid growth and promising future of the quick-commerce sector.

Agrawal’s investments in both Swiggy, which operates the Instamart quick-commerce platform, and Zepto reflect the strong growth potential seen in this industry. The rising popularity of quick-commerce platforms has attracted significant attention from investors, fueled by the success of Swiggy’s rival, Zomato, and its Blinkit platform.

Both Swiggy and Zepto are reportedly preparing for public listings, with Swiggy in advanced stages of planning and Zepto outlining its IPO ambitions for the coming years. The rapid expansion and innovation within the quick-commerce sector have made these companies attractive bets for investors looking to capitalize on the evolving market dynamics.

VerSe Innovation Acquires Valueleaf Group to Boost Digital Marketing Capabilities and Drive $100 Million Revenue Growth

By
Garima Bansal
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0

VerSe Innovation, the parent company of DailyHunt and Josh, announced the acquisition of digital marketing solutions provider Valueleaf Group. The deal, a cash-and-stock transaction, aims to significantly boost VerSe’s growth, with a projection of an additional $100 million in revenue and a 10% EBITDA margin by FY25.

VerSe cofounder Umang Bedi stated that the acquisition would establish an India-centric ad retargeting and exchange platform. As of June 30, Valueleaf had already reached a Rs 732 crore annual recurring revenue (ARR) with nearly a 10% EBITDA margin. This acquisition is part of VerSe’s broader strategy to enhance its portfolio, which has included previous acquisitions such as New York-based digital magazine store Magzter.

Valueleaf, a Bengaluru-based company, brings extensive performance data and established supply-side integrations, including connections with over 50,000 websites, 1,000 apps, and various smartphones. It also offers vertical-specific solutions like Buddy Loan for financial services, Whistle Feed for small businesses, and Share and Earn, designed to drive performance marketing for digitally native companies.

Founded by Bedi and Virendra Gupta, VerSe has raised over $1.4 billion in funding, including an $805 million round in 2022 led by the Canada Pension Plan Investment Board, with participation from Ontario Teachers’ Pension Fund, Luxor Capital, Sumeru Ventures, Sofina Group, and Baillie Gifford. The company has also returned approximately $450 million in secondary exits to early investors.

Satish Saraf and Srikanth Bureddy, cofounders of Valueleaf, expressed their excitement about integrating their data-driven strategies with VerSe’s platforms to deliver superior outcomes for brands.

Browserstack Acquires Berlin-Based Bug Reporting Startup Bird Eats Bug for $20 Million to Enhance Software Testing Capabilities

By
Garima Bansal
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0

Browserstack, a leading software testing platform backed by Accel, has acquired the Berlin-based bug reporting startup Bird Eats Bug in a deal valued at $20 million. The acquisition includes upfront cash, stock, and future investments for product development. Browserstack, founded by IIT Bombay alumni Ritesh Arora and Nakul Aggarwal, provides cloud-based software testing solutions for companies like Amazon, Microsoft, Nvidia, and X. This move marks Browserstack’s fifth acquisition and aligns with its strategy to expand its total addressable market (TAM) by exploring adjacent areas in the software testing domain.

The acquisition of Bird Eats Bug will enhance Browserstack’s platform by integrating its innovative bug reporting tool, which simplifies the process for users, even those without technical expertise. The addition is expected to streamline workflows and improve the productivity of developer and quality assurance teams, allowing them to focus on creating products rather than managing complex testing processes.

Ritesh Arora, cofounder and CEO of Browserstack, emphasized that the acquisition supports the company’s vision of providing a unified and seamless testing experience. Browserstack has been profitable since its early days and continues to pursue mergers and acquisitions as part of its growth strategy, supported by $250 million in cash reserves for organic and inorganic investments.

In addition to the acquisition, Browserstack announced the launch of its new manual testing tool, Bug Capture, which aims to speed up bug debugging by 30%. The company, valued at $4 billion after a $200 million funding round led by Mary Meeker’s Bond Capital in 2021, invests around $30 million annually in research and development to further consolidate its position in the global software testing market.

Euler Motors Enters Small Commercial Vehicle Market with 1000+ kg Payload Electric 4-Wheeler, Launch Set for Festive Season

By
Garima Bansal
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0

Euler Motors has announced its entry into the small commercial vehicle (SCV) segment with plans to launch its first four-wheeler during the upcoming festive season. This new vehicle will feature a payload capacity of over 1,000 kg, catering to the growing demand for efficient and high-performance transportation solutions for both inter- and intra-city logistics.

Already established in the electric three-wheeler market, Euler Motors aims to enhance its portfolio with this four-wheeler, which promises an extended driving range, substantial payload capacity, and advanced real-time fleet management capabilities. The SCV market, projected to reach a value of ₹34,900 crore by FY27, is currently dominated by internal combustion engine vehicles, but the electric vehicle (EV) sector is expected to grow rapidly. Euler Motors emphasizes that EVs offer significant cost savings and can achieve price parity with traditional fuel vehicles, making them an attractive option for businesses focused on operational efficiency and sustainability.

Saurav Kumar, Founder and CEO of Euler Motors, highlighted the importance of developing vehicles that meet the diverse needs of various industries, ensuring they can handle a wide range of volumes, payloads, and distances. Euler Motors’ move into the SCV segment aligns with its vision of delivering versatile electric vehicles tailored for different industry verticals.

Whiteboard Capital Doubles Down: Closes Second Fund at ₹300 Crore, Eyes Deeper Investments in Early-Stage Startups

By
Garima Bansal
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0

Targeting at the growth of early-stage fintech startups across India, Whiteboard Capital, a venture capital firm has doubled its second fund amount and has successfully raised Rs 300 crore. That is why the high efficiency of the firm can be considered – it has already paid 1x to investors and has an unrealized value of 6x from the first fund, which invested in approximately 45 startups for $10 million.

Whiteboard Capital which is co-founded by Sandeep Tandon stands out in the way that it follows both the pattern of incubator and an early stage fund. The firm sends an operating team in its portfolio companies to help them in operations, data and analytics, and technology among others thus providing direct assistance. The second fund which will be closed in December 2023 will target about 50 companies, of which a considerable amount will go to further investments with firms already in the investment pool.

Technology-focused and early-stage investments are the strengths of the firm which often comes to work with start-ups before they even develop their ideas into full business propositions. Such a strategy provides Whiteboard Capital with the ability to invest at low enterprise valuation, typically when startups are at the early stage: they are less than two months old or did not incorporate at all. While having a significant experience focusing on the consumer sector and financial services, Whiteboard Capital is expected to generate large exits on the Indian market with occasional exits in the range of $400-750m as well as several exits in the $3-5 billion range.

Whiteboard Capital’s model of late-stage investment with heavy participation in portfolio companies places it well to play a massive role in the venture capital market given that more technology-focused VCs are shifting towards the consumer market. It also makes it possible for Whiteboard’s portfolio companies to raise additional capital when they are in the process of achieving product-market fit.

Keshav Reddy Invests in OneMoney to Boost Identity Verification and Financial Data Security in BFSI Sector

By
Garima Bansal
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0

Keshav Reddy, founder of the identity verification startup Equal, has made a strategic investment in OneMoney, a Hyderabad-based account aggregator platform. The investment amount remains undisclosed, but it marks a significant partnership between the two companies.

The collaboration between OneMoney and Equal is already facilitating over 55 million monthly transactions, with a 97% success rate in KYC processing for over 250 clients in the banking, financial services, and insurance (BFSI) sector. This partnership is expected to drive innovation in the BFSI sector, focusing on consent-first, privacy-centric financial data sharing, governance, and analysis.

Reddy emphasized that the shared vision of both companies is to strengthen data democracy by digitally empowering citizens and MSMEs, enabling them to access cost-effective credit and other financial products.

Equal, co-founded by Reddy and Rajeev Ranjan, former Director of Engineering at Swiggy, provides a platform for users to store, manage, and share documents like PAN cards, driver’s licenses, and other government-issued IDs. The platform caters to various sectors, including hospitality, finance, insurance, and healthcare, and currently partners with 50 of India’s top 200 companies.

OneMoney, holding an RBI NBFC-AA license, leads the account aggregator market with a 45% market share and serves over 200 financial information users. The platform offers a consent management solution for consumers and a secure data-sharing service for financial institutions, playing a critical role in the open banking ecosystem.

Krishna Prasad, founder of OneMoney, noted that the collaboration with Equal not only validates the potential of their platform but also aligns with their shared vision of serving the underserved, enhancing financial data security, and democratizing financial products in India.

This strategic investment comes at a time when new rules for the Digital Personal Data Protection (DPDP) Act are expected to be introduced, reflecting the recent Union government’s focus on data protection and privacy.

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