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Zinc Secures $25.5 Million in Seed Funding to Transform Global Education Financing

Supriya Biswas
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Zinc Secures $25.5 Million in Seed Funding to Transform Global Education Financing

Zinc, a startup focused on educational wealth management, has successfully raised $25.5 million in seed funding. The investment round was spearheaded by Nexus Venture Partners, with contributions from Quona Capital, EDBI, Global Ventures, and Saison Capital. The company, founded by Prashanth Ranganathan, the former CEO of PayU Credit, is headquartered in Singapore.

The capital will be utilized to enhance product innovation, broaden its service offerings, and obtain crucial financial licenses aimed at helping families save and invest for their children’s international education. Ranganathan stated, “After departing from PayU, I took some time to explore the landscape of foreign education. I discovered a significant, untapped demand among parents eager to send their children abroad for schooling, primarily due to the increasing competitiveness in the domestic education sector. Many parents aspire to provide their children with a global educational experience.”

In August 2023, it was reported that Ranganathan, who transitioned from Prosus-owned PayU earlier that year, was actively seeking investors to fund his new initiative. His previous venture, the consumer lending platform PaySense, was sold to PayU for $185 million in January 2020.

Launched in April 2024, Zinc aims to establish a robust financial framework tailored to meet the escalating costs associated with overseas education. As an initial offering, the startup has introduced Zinc Honors, a comprehensive product suite that combines investment tools designed to diversify savings into global markets, thereby reducing the risks associated with currency fluctuations. Additionally, Zinc has launched a proprietary AI-powered educational counselor named Ada, which offers in-depth guidance for aspiring students in India.

Ranganathan also revealed that Zinc has collaborated with Leo Wealth, a wealth management firm based in Singapore, to create a dedicated wealth fund, which is slated to launch in November. This fund will allow parents to invest with the goal of accumulating a specific amount within a designated timeframe to support their children’s international education, complemented by expert financial advice and portfolio rebalancing options.

Zinc has already obtained approval for a Registered Investment Advisor (RIA) license from the Securities and Exchange Board of India (SEBI) and has received preliminary authorization to operate as a Payment Service Provider (PSP). Furthermore, the company has applied for a brokerage license from the International Financial Services Centres Authority (IFSCA) in GIFT City.

According to Ranganathan, these licenses will enable Zinc to provide tailored investment guidance, facilitate cross-border payment solutions, and offer access to international markets. Anup Gupta, Managing Director at Nexus Venture Partners, expressed enthusiasm about the partnership, stating, “India is becoming a pivotal market for students pursuing global education. Nexus is thrilled to collaborate once more with Prashanth and Team Zinc in their mission to aid parents and students in achieving their global education aspirations through a well-planned and transparent approach, combining educational guidance with top-tier financial services.”

Finova Capital Secures $135M Series E Funding to Accelerate MSME Lending Expansion

Supriya Biswas
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Finova Capital Secures $135M Series E Funding to Accelerate MSME Lending Expansion

Jaipur-based Finova Capital, a leading MSME-focused NBFC, has successfully raised $135 million in a Series E funding round. This latest funding round attracted new investors, including Avataar Venture Partners, Sofina, and Madison India Capital, alongside returning investor Norwest Venture Partners. With this round, early investors were given an exit opportunity, as confirmed in a company statement. Finova’s previous funding milestone was a $65 million raise in 2022, led by Norwest.

The fresh capital will empower Finova Capital to scale its loan portfolio, invest in advanced technology, and expand its geographical reach. Currently, the company manages assets worth Rs 3,000 crore, with a robust five-year compound annual growth rate (CAGR) exceeding 60%. Established in 2015 by founders Mohit Sahney and Sunita Sahney, Finova Capital operates across 16 states and serves over 100,000 customers, providing essential financial services such as working capital, machinery, and business loans to MSMEs.

The company’s digital platform is designed to bring credit access to micro-entrepreneurs and semi-skilled professionals, supported by proprietary underwriting and risk-assessment technology that targets underserved customer segments. “We are thrilled to bring onboard new partners like Avataar Venture Partners, Sofina, and Madison India Capital, who share our vision for financial inclusion. We also thank our existing investors—Peak XV Partners, Faering Capital, Norwest, and Maj Invest—for their continued support,” stated Mohit Sahney, Founder and MD of Finova Capital.

Reflecting on Avataar Venture Partners’ commitment to the venture, Partner Anirudh Singh expressed excitement about their first investment in the financial services sector, highlighting Finova’s rapid growth, which has surged 7X in the last four years. Competing in the MSME lending market, Finova faces players like Kinara Capital and Indifi. Bengaluru-based Unitus Capital served as the exclusive financial advisor for Finova’s latest funding round.

Razorpay’s Payment Gateway Revenue Surpasses Rs 2,000 Crore in FY24, Profit Jumps Fivefold

Supriya Biswas
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Razorpay’s Payment Gateway Revenue Surpasses Rs 2,000 Crore in FY24, Profit Jumps Fivefold

Razorpay, a leading fintech platform in payments and business banking, saw its Payment Gateway (PG) business achieve a 24% year-on-year (YoY) revenue growth in FY24, even amid a temporary pause on new merchant registrations for the first three quarters of the fiscal year. Impressively, the company’s profit after tax (PAT) increased nearly fivefold in the same period.

As per Razorpay Software Private Limited (RSPL), the division managing the Payment Gateway business, revenue for this segment reached Rs 2,068 crore, contributing to a total income of Rs 2,501 crore for the fiscal year.

In comparison, FY23 saw Razorpay’s collective revenue—including both payment gateway and other operations—at Rs 2,293 crore. This year marked the first instance of RSPL reporting revenue solely from the PG business, providing focused insights into its performance.

On December 22, 2023, Razorpay resumed onboarding new merchants after receiving the RBI’s Payment Aggregator (PA) authorization, positioning it as one of the initial platforms to secure this regulatory clearance. This development significantly contributed to a 4.7X rise in profit after tax, with the company reporting a PAT of Rs 34 crore in FY24, up from Rs 7 crore in the previous fiscal year.

The company credits this surge to its commitment to product innovation, rolling out over 40 new solutions that deepened its reach and engagement with current clients. Razorpay also reported an annualized Total Payment Volume (TPV) of $180 billion, underscoring its market impact.

Total expenses for the fiscal year experienced a 7% YoY increase, reaching Rs 2,454 crore, with employee-related expenses—comprising salaries and benefits—amounting to approximately Rs 611 crore, or 25% of total costs.

Looking ahead, Razorpay plans to drive growth by expanding into Southeast Asian markets and implementing a broader omnichannel approach. With over $800 million raised in various funding rounds, the company’s latest valuation stands at approximately $7 billion. It remains in competitive standing with Cashfree, which reported FY23 revenue of Rs 614 crore, and PayU, whose FY23 revenue totaled $400 million (Rs 3,320 crore). The FY24 figures for these competitors are still pending release.

Unicommerce Records Strong Financial Growth with 13% Revenue Boost and 25% PAT Increase in Q2 FY25

Supriya Biswas
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Unicommerce Records Strong Financial Growth with 13% Revenue Boost and 25% PAT Increase in Q2 FY25

Unicommerce has maintained its upward momentum, posting notable financial growth in Q2 FY25 with a 13% year-on-year revenue increase compared to the same period in FY24. Operating revenue reached Rs 29.3 crore, up from Rs 25.9 crore last year, while total income, inclusive of additional undisclosed earnings, grew to Rs 30.5 crore from Rs 27.7 crore, as per the company’s report to the National Stock Exchange.

In terms of expenditure, the company achieved minor cost optimization in employee benefits, reducing expenses to Rs 16 crore in Q2 FY25 from Rs 17 crore in the previous year, even as operational scales grew. Technology investment, however, showed an uptick, with server hosting costs increasing from Rs 1 crore to Rs 1.3 crore. Depreciation and amortization expenses rose to Rs 84 lakhs, alongside a rise in finance costs to Rs 14 lakhs.

Unicommerce’s total expenses climbed by 7% to Rs 24.5 crore in Q2 FY25, up from Rs 22.9 crore in Q2 FY24. Despite this, the company achieved a robust 23% growth in profit before tax, reaching Rs 6 crore, up from Rs 4.8 crore in Q2 FY24. Profit after tax also surged by 25%, amounting to Rs 4.4 crore, compared to Rs 3.5 crore in the previous year.

Following its public listing in August 2024, Unicommerce has enjoyed significant market capitalization growth, now valued at Rs 2,043.56 crore—an 84% increase over the past 14 months. With shares climbing to Rs 199.5 from the initial Rs 108, the company’s robust performance continues to reinforce investor confidence.

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Udaan Secures ₹300 Crore Debt Funding from Lighthouse Canton and Others

Supriya Biswas
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Udaan Secures ₹300 Crore Debt Funding from Lighthouse Canton and Others

B2B e-commerce platform Udaan has successfully raised approximately ₹300 crore (over $35 million) in debt financing, attracting investments from Lighthouse Canton, Stride Ventures, InnoVen Capital, and Trifecta Capital. This marks Udaan’s first debt round in the last year, highlighting a significant step for the Bengaluru-based firm.

The fresh capital is aimed at bolstering Udaan’s balance sheet and furthering its commitment to empower small businesses throughout India, as stated in a recent press release.

In December 2023, Udaan completed a Series E funding round, securing $340 million led by M&G Plc, with participation from existing investors Lightspeed Venture Partners and DST Global. Despite this injection of funds, Udaan’s valuation fell by 59.3%, settling at $1.3 billion, a decrease from its previous peak of $3.2 billion.

Udaan has indicated that it is on track to achieve profitability, with a reported 60% surge in revenue and an over 50% increase in daily transacting buyers in 2024. The company has also noted a 30% reduction in absolute EBITDA burn for the current calendar year.

Founded eight years ago, Udaan operates a diverse marketplace that spans various categories, including lifestyle, electronics, home and kitchen goods, staples, fruits and vegetables, FMCG, pharmaceuticals, toys, and general merchandise. The platform boasts a network of over 3 million retailers across 900 cities.

In an effort to reduce costs, Udaan has implemented layoffs over the past year, including a reduction of more than 100 employees in December 2023.

While the company has not yet released its FY24 financials, it reported a 43.1% decline in gross merchandise value (GMV), which dropped to ₹5,629 crore in FY23, down from ₹9,900 crore in FY22. Nevertheless, Udaan has seen its losses decrease by 33.7%, falling from ₹3,132 crore in FY22 to ₹2,076 crore in FY23.

Major Players in Insurance Aggregation: InsuranceDekho and RenewBuy Eye Merger to Challenge PolicyBazaar

Supriya Biswas
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Major Players in Insurance Aggregation: InsuranceDekho and RenewBuy Eye Merger to Challenge PolicyBazaar

InsuranceDekho and RenewBuy, prominent contenders in India’s insurance landscape, are poised for a merger aimed at establishing a formidable presence in the insurance aggregation sector and directly competing with the market leader, PolicyBazaar.

The merger is projected to create a combined entity valued at over ₹8,000 crore (approximately $950 million), with RenewBuy estimated at around ₹3,000 crore and InsuranceDekho at more than ₹5,000 crore. This strategic union is expected to position the new entity as the second-largest insurance aggregator in India, as reported by Mint.

The merger will be executed through a cash-and-stock arrangement, with some early investors in RenewBuy likely to divest portions of their stakes. Furthermore, the newly formed entity is anticipated to attract additional funding in preparation for a potential initial public offering (IPO).

This deal could facilitate a smoother IPO process for CarDekho, which aims for a public listing in the upcoming fiscal year. Currently, CarDekho’s co-founder and CEO, Amit Jain, possesses over a 70% share in InsuranceDekho. Sources indicate that the group plans to offload more than 20% of its stake in the Gurugram-based firm prior to submitting the Draft Red Herring Prospectus (DRHP).

The merger’s objectives include broadening the product offerings, enhancing customer satisfaction, and increasing operational efficiency. This announcement follows InsuranceDekho’s recent acquisition of a composite insurance broking license from the Insurance Regulatory and Development Authority of India (IRDAI).

Additionally, InsuranceDekho secured $60 million in a Series B funding round led by Mitsubishi UFJ Financial Group in October of the previous year.

While InsuranceDekho has yet to publish its FY24 results, it reported revenues of ₹96.5 crore in FY23, a significant increase from ₹47.9 crore in FY22. The company also managed to cut its losses by 28.6%, reducing them to ₹51.6 crore during FY23.

In contrast, RenewBuy raised $40 million in its ongoing Series D funding round in July last year. Although the nine-year-old company has not released its financial data for FY23 and FY24, it recorded ₹190.8 crore in revenue and a loss of ₹98.9 crore in FY22.

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Flipkart Internet Achieves $8.5 Billion GMV in FY24, Cuts Losses as Revenue Surges

Supriya Biswas
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Flipkart Internet Achieves $8.5 Billion GMV in FY24, Cuts Losses as Revenue Surges

Flipkart Internet Private Limited, the B2B division of Walmart-owned Flipkart, reported impressive growth for the fiscal year ending March 2024. Gross revenue jumped by 26.4%, crossing Rs 70,000 crore as the Bengaluru-based firm also reduced its annual losses by 13.5%.

According to its consolidated financial statements from Tofler, Flipkart Internet’s gross revenue, also known as Gross Merchandise Value (GMV), surged to Rs 70,542 crore (around $8.5 billion) in FY24, up from Rs 55,824 crore in FY23. Additionally, non-operating income added Rs 302 crore, boosting total income to Rs 70,844 crore. Flipkart Internet’s B2B operations generate revenue through product sales to resellers and fees from referral commissions and advertisements, supporting distribution across various product categories like mobile devices, electronics, apparel, and groceries.

Flipkart Internet’s financial report also includes contributions from associates and joint ventures such as Arvind, Ninjacart, Rubans, SASSAFRAS, and Inddus. In FY24, the company’s expenses saw a notable increase, with material costs rising by 23.8% to reach Rs 73,624.2 crore, driven by investment in workforce and financial arrangements. Employee-related expenses rose from Rs 639.2 crore to Rs 684.4 crore, while logistics costs amounted to Rs 299.9 crore. Despite these elevated expenses, Flipkart Internet successfully reduced its annual losses by 13.2%, totaling Rs 4,248 crore for the fiscal year.

However, cash outflows from operations surged 77.4%, reaching Rs 6,392.7 crore, and cumulative outstanding losses climbed to Rs 26,407 crore by FY24’s end. With a significant reduction in losses, Flipkart Internet appears poised to achieve profitability soon, as cash flow improvements may materialize even sooner.

As B2B e-commerce becomes integral to Flipkart’s profitability strategy in India, enhancements like streamlined GST invoicing and claims processes have contributed to a more efficient experience for business clients. However, competition remains intense, especially with rivals like Amazon Business and Moglix in the market. Walmart’s directive for Flipkart to start demonstrating profitability six years post-acquisition underscores the focus on driving margins and cementing its position in the Indian e-commerce landscape.

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Arya.ag Secures $19.8 Million Debt Commitment from DFC to Strengthen Agri-Commerce Network

Supriya Biswas
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Arya.ag Secures $19.8 Million Debt Commitment from DFC to Strengthen Agri-Commerce Network

Agritech startup Arya.ag has received a $19.8 million debt commitment from the United States International Development Finance Corporation (DFC), aimed at supporting its subsidiary, Aryatech. This investment positions Arya.ag as the first agritech startup to approach dual funding rounds in 2024, following a previous $29 million equity investment secured in July.

The new capital will enhance Arya.ag’s mission to link farmers and farmer producer organizations (FPOs) with buyers across India, fostering payment security, transaction clarity, and improved market access. Arya.ag’s platform simplifies agricultural trade by connecting sellers and buyers directly, reducing waste, and enhancing efficiency throughout the industry. Its services encompass warehouse discovery, farmgate-level storage, financial support, and market connectivity, building a trustworthy network in the agricultural sector.

Currently, Arya.ag operates in over 60% of India’s districts, managing an extensive network of more than 11,000 warehouses. The company supports grain storage valued at $3 billion annually and facilitates over $1.5 billion in loans to smallholder farmers, FPOs, and other partners in the agriculture supply chain.

In the fiscal year ending March 2023, Arya.ag reported significant financial growth, with a gross revenue increase of 49.48% to Rs 290 crore and an elevenfold profit surge, reaching Rs 7.58 crore. The company’s net revenue for FY24 rose to Rs 360 crore, coupled with a net profit of Rs 17 crore, though its final audited report for FY24 is pending.

In a competitive market, Arya.ag faces industry rivals such as DeHaat, Ninjacart, and Bijak. Despite recent funding difficulties within the agritech sector, Arya.ag’s funding success stands out. As per data from TheKredible, agritech startups have collectively raised around $170 million across 30-plus deals in 2024, highlighting the challenges yet accomplishments within the industry.

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Slice and North East Small Finance Bank Merge to Boost Financial Inclusion in Northeast India

Supriya Biswas
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Slice and North East Small Finance Bank Merge to Boost Financial Inclusion in Northeast India

Slice has successfully completed its merger with North East Small Finance Bank (NESFB), marking a significant step toward expanding financial access and fostering economic growth across the Northeast region of India.

In a statement, Satish Kumar Kalra, Managing Director and CEO of NESFB, emphasized the merger’s transformative impact, viewing it as a pivotal development for India’s banking landscape, with a particular focus on the underserved Northeast.

Recently, Slice secured Rs 300 crore (approximately $35 million) through convertible debentures, backed by key investors such as the Taneja Family Trust, Anju Family Personal Trust, UK2 Family Trust, and MN Family Trust. Additionally, Rajan Bajaj, the company’s founder, contributed $8.6 million in funding this month.

Despite challenges posed by the Reserve Bank of India’s regulatory adjustments for card issuers, Slice achieved substantial growth during FY23. The company, headquartered in Bengaluru, witnessed its revenue surge threefold to reach Rs 843 crore in FY23, although losses increased by 59.8% to Rs 406 crore. Slice has yet to release its annual financial figures for FY24.

This merger reinforces Slice’s mission to extend financial solutions to a broader audience, especially in regions with high potential for economic empowerment.

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Atomberg Reports 31% Surge in Revenue, Eyes Future Expansion

Supriya Biswas
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Atomberg Reports 31% Surge in Revenue, Eyes Future Expansion

Atomberg Technologies, the consumer appliances manufacturer, has announced a remarkable 31.4% increase in its operational revenue, reaching Rs 848 crore for the fiscal year 2023-24, compared to Rs 645 crore in the previous year. However, the company also faced a significant net loss, which expanded by approximately 46.3% to Rs 202 crore from Rs 138 crore during the same period.

Sibabrata Das, cofounder of Atomberg, explained that the losses over the past two financial years were driven by new employee stock ownership plan (ESOP) grants, management bonuses, and expenses related to fundraising activities.

Das shared with ET that the operational earnings before interest, taxes, depreciation, and amortisation (EBITDA) showed improvement, with losses narrowing to Rs 22 crore in 2023-24 from Rs 49 crore the year before. He elaborated, “Our operational EBITDA has shown considerable growth. In FY22, we did not incur significant ‘other non-cash items’ like ESOP and bonuses. The disparity between operating EBITDA and profit after tax (PAT) figures in FY23 and FY24 can largely be attributed to these non-performance-related costs.”

Looking ahead, Das stated that Atomberg is aiming for operational profitability by the end of the current fiscal year.

Founded by IIT Bombay graduates Das and Manoj Meena, Atomberg previously reported a net loss of Rs 39 crore for the fiscal year 2021-22. In 2023-24, material costs accounted for about 66% of the company’s total expenses, with employee and marketing costs also representing considerable portions. A notable investment was the establishment of a research and development (R&D) center in Pune, which cost approximately Rs 70 crore and is expected to attract ongoing investment in R&D.

Currently, 70% of Atomberg’s revenue is generated through offline channels, while the remaining 30% comes from online platforms, including e-commerce giants like Amazon and Flipkart, as well as the company’s own direct-to-consumer website. Although Atomberg does not operate its own retail stores, it has a presence in about 30,000 multi-brand outlets across the country, marking an approximate 20% year-on-year growth in reach.

For the fiscal year 2023-24, Atomberg’s fan business generated Rs 841 crore, with the mixer grinder and smart lock segments contributing the remaining Rs 7 crore. The company aims to increase the proportion of its non-fan business revenue, targeting a 4-5% contribution from the mixer grinder segment by the end of this fiscal year.

In the coming 12 to 18 months, Atomberg is also preparing to expand into new product segments, including water purifiers and various kitchen appliances. Additionally, Das mentioned that the company might explore a secondary funding round next year to facilitate exits for existing investors.

In May 2023, Atomberg successfully completed an $86 million funding round, led by Singapore’s sovereign wealth fund Temasek and Steadview Capital, with contributions from Trifecta Capital, Jungle Ventures, and Inflexor Ventures through a combination of primary and secondary issuances. This round also allowed early angel investors to exit, with existing investor A91 Partners partially selling its stake. Atomberg has raised a total of $128 million to date, achieving a valuation of $358 million as of June 2023, according to Tracxn.

Discussing the company’s foray into quick commerce, Das revealed that Atomberg launched its services on Blinkit, owned by Zomato, earlier this year, highlighting quick commerce as a key growth area for its fan business, particularly during the peak summer season.

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