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Zomato Raises ₹8,500 Crore Through Equity Share Placement

By
Supriya Biswas
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Zomato Limited has successfully raised ₹8,500 crore through a Qualified Institutions Placement (QIP) of equity shares, according to its announcement on Friday. This fundraising initiative follows the recent approval from the company’s shareholders.

The issuance involved 33.64 crore equity shares priced at ₹252.62 each, comprising a premium of ₹251.62 per share. The final issuance price reflects a 5% discount on the floor price of ₹265.91 per share, as disclosed in Zomato’s regulatory filings.

This significant capital boost aims to strengthen Zomato’s financial resources, enabling business expansion and strategic initiatives, particularly in its quick commerce segment powered by Blinkit.

The QIP, conducted between November 25 and November 28, received the green light from Zomato’s Fund Raising Committee earlier today. Leading mutual funds, including ICICI Prudential and Motilal Oswal, participated prominently. Motilal Oswal secured 6.92 crore shares, constituting 20.81% of the issue size.

Post-transaction, Zomato’s paid-up equity share capital has increased to ₹917.28 crore.

For the fiscal year to date, Zomato has reported a 68.5% quarter-on-quarter surge in operating revenue, reaching ₹4,799 crore in Q2 FY25, compared to ₹2,848 crore in Q2 FY24. The company also recorded a 4.8x jump in net profit, achieving ₹176 crore in the September quarter.

In the quick commerce market, a report by Motilal Oswal highlights Blinkit’s leadership with a 46% market share, followed by Zepto at 29%, and Swiggy Instamart at 25%.

Zomato’s shares rose 6.8% to ₹282 per share as of 11:30 AM on November 29, 2024, compared to their November 22 closing price. The company’s market capitalization stands at ₹2,35,481 crore ($28 billion), significantly outpacing its competitor Swiggy, which trades at ₹470 per share with a market cap of ₹90,712 crore ($10.7 billion).

This strategic move further solidifies Zomato’s market position while setting the stage for future growth.

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Kenro Capital Launches with a Focus on Secondary Market Deals

By
Supriya Biswas
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Piyush Gupta, the former Managing Director at Peak XV Partners, has announced the launch of Kenro Capital, a new investment firm aimed at capitalizing on secondary transactions. This move is in line with a larger shift in the venture capital landscape, where firms are increasingly seeking exit opportunities after contributing billions to the growing Indian startup ecosystem.

Gupta, who serves as the founder and managing partner of the firm, is joined by Norbert Fernandes, previously a director at TR Capital, as a partner in this new venture.

Kenro Capital plans to acquire minority stakes in growth-stage businesses across India and Southeast Asia, with a particular focus on companies poised for a public listing within two to three years of investment.

Although Gupta did not specify the exact size of the fund, he indicated that Kenro Capital aims to invest $20-30 million in each deal.

“We aim to fill a critical gap in the market by offering liquidity solutions to stakeholders. The venture capital sector in India and Southeast Asia has seen significant growth in the last 15 years, and with that, VCs are increasingly focused on accelerating returns for their limited partners—this is where Kenro Capital comes in,” Gupta explained.

In April, Gupta stepped down from Peak XV Partners, where he led a team supporting portfolio companies with fundraising, M&A, and IPO initiatives. He noted that the secondary market for venture-backed companies in India has exceeded $100 billion, with a record $13.5 billion in secondary transactions recorded in 2023—up from $9.1 billion the year before.

Secondary transactions involve the buying and selling of stakes between existing and new investors, without the capital entering the company. These deals often occur at a discount to the company’s market value.

Gupta mentioned that the discounts for such transactions have been shrinking. In 2023, the average discount was 3.1%, down from 4.8% in 2020.

“With a surge of primary capital entering the market and the IPO exit process gaining momentum—albeit slowly—many funds are shifting their focus towards exits. We believe the time is ripe for secondary solutions,” Gupta added.

Kenro Capital’s debut comes as secondary transactions continue to rise in India, with prominent companies like Lenskart, Meesho, Purplle, Urban Company, and Healthkart leading the charge.

In a similar vein, Oister Global, a Gurugram-based investment firm, joined forces with Tribe Capital from Silicon Valley in September to launch a fund dedicated to secondary deals.

Fernandes emphasized the recent shift in the pace at which general partners are considering secondaries to monetize their investments. “Limited partners are increasingly focused on cash returns and are looking for more predictable timelines. The urgency to see cash returns is becoming critical,” Fernandes said.

He also observed that Indian startups have matured, with many now profitable. “Venture-backed founders are gaining a clearer understanding of the capital markets and the steps needed to prepare for an IPO,” Fernandes added.

Zepto Partners with Park+ to Bring Premium Car Care Products to Your Door in 10 Minutes

By
Supriya Biswas
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Zepto has joined forces with Park+, an all-in-one destination for car care products, to offer a curated selection of premium vehicle maintenance essentials, delivering them in just 10 minutes across more than 8 locations in India.

The partnership features 15 Park+ products, including car cleaning kits, comfort accessories, and maintenance tools, catering to various price ranges. Products under Rs 200 include car shampoo and glass cleaner, while items under Rs 500 feature travel neck pillows and microfiber cloths. The lineup extends to car cleaning kits under Rs 1000 and comfort cushions under Rs 2000. Amit Lakhotia, Founder and CEO of Park+, expressed enthusiasm about the collaboration, emphasizing its role in simplifying the car ownership experience and expanding their product range on Zepto to over 150 items in the coming months.

Zepto’s Chief Brand Officer, Chandan Mendiratta, also highlighted the synergy between the brands, with Zepto’s focus on speed and convenience aligning perfectly with Park+’s high-quality products. Through this partnership, users can now easily access premium car care products with the same quick delivery and reliability Zepto is known for.

Decoding Bharat: Dentsu India and PhonePe Ads Present Insights on Indian Consumer Trends

By
Supriya Biswas
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Dentsu India and PhonePe Ads are set to release The Bharatiya Consumer, a coffee table book exploring the evolving trends in Indian consumer behavior, on November 29, 2024, in Mumbai. The book examines how demographics, geography, and technology shape the country’s marketplace, focusing on generational and gender-specific preferences that influence industries like food, fashion, and technology.

By addressing key questions—such as the role of Gen Z and Gen Y in driving trends, generational spending habits, gender-based shopping differences, geographical influences, and the impact of premium smartphones on consumption—the book offers a localized analysis of India’s diverse consumer landscape. Leaders like Harsha Razdan, CEO of dentsu South Asia, and Sonika Chandra, Chief Business Officer at PhonePe, emphasized the importance of this resource in decoding the aspirations and behaviors of India’s multiple generational cohorts, backed by robust data and insights. They described it as a strategic guide for businesses to navigate India’s rapidly changing consumer ecosystem while aligning with the country’s unique cultural context.

Designed as both a visually engaging coffee table book and a deeply researched report, it aims to empower brands with actionable strategies to succeed in India’s dynamic marketplace.

CCI Launches Probe into Google After Winzo Highlights Alleged Unfair Practices

By
Supriya Biswas
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The Competition Commission of India (CCI) has initiated an investigation into Google following allegations by gaming platform Winzo of anti-competitive behavior. The complaint accuses Google of misusing its dominant position to unfairly favor certain gaming categories, creating an uneven playing field for other companies in the industry.

Reports indicate that the CCI’s Director General (DG) has been tasked with submitting a comprehensive report on the matter within 60 days.

Saumya Singh Rathore, co-founder of Winzo, criticized Google’s policies, stating, “The Google Play Store policy, which exclusively includes Fantasy and Rummy games, alongside an Ads Policy allowing only these categories to advertise, skews market dynamics. This selective approach benefits specific games, driven by monopolistic practices.”

Rathore further pointed out the dominance of a few players in the market, with one entity reportedly controlling 95% of the fantasy gaming space and three companies accounting for 90% of the rummy segment. These policies, she argued, drastically reduced marketing costs for these games, amplifying their profit margins disproportionately.

This isn’t Winzo’s first legal action against Google. In 2022, the company filed a lawsuit to prevent Google from listing real-money fantasy sports and rummy games on its platform.

Launched in 2018, Winzo boasts a portfolio of over 100 games spanning strategy, sports, casual, arcade, and board categories. The platform primarily earns through service fees on real-money games and the sale of digital vouchers.

Winzo’s financial trajectory has been impressive, with operational revenues surging to ₹674 crore in FY23 from ₹234 crore in FY22. The company also achieved its first profit of ₹126 crore in FY23.

In a bid to bolster India’s gaming ecosystem, Winzo recently collaborated with the Department for Promotion of Industry and Internal Trade (DPIIT). Through this partnership, the company aims to support over 2,000 startups, innovators, and students via mentorship, workshops, and hackathons.

This case underscores the ongoing scrutiny of tech giants as regulators work to ensure fair competition in India’s dynamic digital economy.

Bloom Hotels Achieves Rs 250 Crore Revenue in FY24; Reports 2.3X Profit Growth

By
Supriya Biswas
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0

Bloom Hotels has witnessed a stellar performance in FY24, marking over fivefold growth in revenue within two years. The hospitality chain scaled its revenue from Rs 49 crore in FY22 to Rs 250 crore in FY24. Year-on-year, its operating revenue surged by 73.6%, while profits jumped 2.3 times during the same period.

Bloom’s operational revenue increased to Rs 250 crore in FY24, up from Rs 144 crore in FY23, according to its consolidated financial statements filed with the Registrar of Companies. Income from room rentals accounted for a dominant 85.2% of this figure, rising 79% to Rs 213 crore from Rs 119 crore in FY23. Additional revenues came from food and beverage services (Rs 33 crore) and other allied services (Rs 4 crore), with interest income contributing Rs 8 crore, pushing the total revenue to Rs 258 crore.

The company, operating brands like Bloom Hotel, Bloom Hub, BloomSuites, and Bloomrooms, currently boasts over 50 hotels in cities such as Mumbai, Pune, Jaipur, Udaipur, and the NCR. As part of its expansion strategy, Bloom entered multiple lease agreements ranging from 5 to 44 years. Lease-related costs formed 31.5% of total expenses, growing 79% to Rs 77 crore in FY24.

Other significant costs included employee benefits and agent commissions, which rose by 58% to Rs 60 crore and 78% to Rs 16 crore, respectively. Total expenses increased to Rs 244 crore from Rs 144 crore in FY23, covering advertising, legal fees, and food and beverage costs.

Despite higher expenditures, Bloom’s profit more than doubled to Rs 14 crore in FY24, supported by an improved expense-to-revenue ratio of Rs 0.98 compared to Rs 1.00 in FY23. The company’s EBITDA margin and ROCE rose to 10.08% and 6.25%, respectively. Bloom also reported strong financial health, with total current assets of Rs 118 crore, including Rs 97 crore in cash and bank balances.

Funded by Samena Capital, which holds a majority stake following an investment of Rs 362 crore (approximately $45 million), Bloom is outpacing competitors. Treebo Hotels and FabHotels reported operating revenues of Rs 88.6 crore and Rs 224 crore in FY23, respectively, though their FY24 data is yet to be disclosed.

Bloom’s consistent growth and strategic cost management reflect its strong position in the competitive hospitality landscape.

Althion Secures Rs 3.6 Crore in Pre-Series A Funding for Water Purification Innovations

By
Supriya Biswas
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0

Water-tech startup Althion has successfully secured Rs 3.6 crore in its pre-Series A funding round, led by IAN Group-powered BioAngels. The round also saw participation from influential investors such as Arun Seth, Om Manchanda, KNK Venkatraman, and Shubham Rastogi.

Based in Hyderabad, Althion had previously raised $180K from C-CAMP and other investors. The newly raised funds will be directed towards piloting the production of 40 units of its groundbreaking tabletop laboratory water purification system. Additionally, the funds will support research and development focused on enhancing kidney dialysis efficiency and sustainability, as well as expanding the company’s operational capacity through a larger facility.

Founded in 2017 by Surya Rao, Althion specializes in developing state-of-the-art ultra-pure water systems catering to the healthcare, research, and semiconductor industries. The company’s innovations are aligned with the Make in India initiative and are supported by BIRAC, helping dialysis centers, biotechnology laboratories, and leading hospitals across India.

Althion’s mission is to bridge the gap in high-cost water purification solutions by offering affordable, high-quality alternatives. The company’s proprietary Althion Remote Monitoring System (ARMS) adds to its competitive edge by enabling predictive and preventive maintenance. Institutions such as Sir Ganga Ram Hospital, Homi Bhabha Memorial Cancer Centre, Narayana Hrudayalaya, and Nephroplus centers already rely on Althion’s products.

The company’s progress has been bolstered by BIRAC grants for the development of its tabletop and kidney dialysis products, alongside seed funding from C-CAMP Bangalore and AIC CCMB Hyderabad. Althion is also set to receive funding for CE marking and USFDA certifications, enabling its expansion into international markets, including Latin America, Africa, and Asia.

Homversity Secures $1 Million in Pre-Series A Funding to Expand Premium Student Housing Services

By
Supriya Biswas
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0

Homversity, a platform dedicated to organizing student housing networks, has successfully raised $1 million in a pre-Series A funding round. The investment comes from key players such as Shuru-Up, Inflection Point Ventures (IPV), Value Angels, Vinners Group, TAS, Pro-Growth Ventures, Growth 91, among others.

The Ahmedabad-based startup previously secured $378,000 from Shuru-Up, bringing its total funding to date to a noteworthy sum. The latest funds will be used to strengthen its scalable student housing model, boost the platform’s growth initiatives, and expand its offerings to students across India.

Founded in 2019 by Saurav Kumar Sinha, Homversity has positioned itself as a leader in India’s student housing sector. The platform addresses essential verticals of the industry, including quality living standards, healthy meals, and a secure environment for students. With its promise of a hassle-free experience, including a 100% refund on cancellations, Homversity offers comprehensive support for students, ensuring their accommodation needs are met with ease.

Homversity’s model also helps eliminate the challenges of high food and living costs, providing students with comfortable, affordable, and nutritious options, regardless of their geographical background. This approach allows students to focus on their education, networking, and personal growth without worrying about basic amenities.

With the student housing market in India valued at Rs 58,000 crore, driven by over 35 million student enrollments each year across 51,000 educational institutions, Homversity sees a significant opportunity to expand its reach. The platform’s deep insights into the needs of both tenants and landlords give it a competitive edge, enabling it to offer customized solutions that enhance the overall student housing experience.

StockGro Boosts Employee Benefits with Two Successful ESOP Buyouts

By
Supriya Biswas
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0

StockGro, a dynamic platform for trading and investment education, has successfully completed two Employee Stock Option Plan (ESOP) buyouts between 2023 and 2024. These initiatives were designed to provide employees the opportunity to monetize their vested shares.

The company extended participation to all eligible employees, with less than 60% opting to sell their shares, while the remainder chose to retain them for long-term value appreciation. Through these buyouts, StockGro distributed over $2 million among its 70-member team. In the latest round, the company acquired 100% of the vested shares offered by participants.

Founded in 2020 by ex-venture capitalist Ajay Lakhotia, StockGro serves as a social investment platform, offering users an engaging virtual environment to explore and learn about stock market dynamics.

Earlier this year, StockGro secured Rs 205 crore ($25 million) in a debt round from Trifecta Ventures and Hindustan Media Ventures across two tranches.

In a broader trend, several startups, including NowPurchase and HealthKart, have rolled out their first ESOP buybacks this year. According to data from TheKredible, over 20 startups have collectively facilitated ESOP liquidity and payout programs valued at approximately $200 million in 2024.

This growing momentum underscores the increasing focus on employee-centric policies within the startup ecosystem.

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Awfis Uncovers Insider Trading Breach by Senior Executive

By
Supriya Biswas
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0

Co-working giant Awfis Space Solutions Limited has identified a breach of its insider trading guidelines by a senior executive, Anindita Seal Sarkar, Vice President of Sales.

The violation involved the sale of 15,764 shares valued at Rs 1.07 crore on September 30, at a price of Rs 693.02 each, followed by the purchase of 25 shares at Rs 698.44 each for Rs 17,461. These transactions were carried out without prior clearance, violating the company’s insider trading policies.

Awfis reported that the matter has been escalated to the Chairman of the Audit Committee and the Chairman of the Board. The Audit Committee is set to determine appropriate actions in accordance with the company’s Code of Conduct.

The irregularity came to light during a routine review conducted on November 26, 2024. Awfis confirmed that the transactions breached internal compliance standards and regulatory norms, prompting a referral to the Audit Committee for resolution.

Founded in 2015, Awfis has been a pioneer in providing co-working spaces and services tailored for startups, SMEs, and enterprises. The company also offers value-added services, including IT support, food and beverages, and infrastructure solutions.

Awfis has demonstrated robust financial growth, achieving a 40.5% year-on-year increase in revenue from operations. In Q2 FY25, its revenue climbed to Rs 292.38 crore compared to Rs 208.15 crore during the same period last year.

Listed on the NSE in May 2024, Awfis shares debuted at Rs 435, reflecting a 13.58% premium on its issue price of Rs 383. The stock is currently trading at Rs 732, signaling strong investor confidence.

This incident underscores the company’s commitment to upholding compliance standards as it continues to scale its market presence.

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