Sunday, October 6, 2024
No menu items!
Home Blog Page 42

Klub to Disburse Rs 200 Crore for SMEs During Festive Season Surge

By
Garima Bansal
-
0
Klub to Disburse Rs 200 Crore for SMEs During Festive Season Surge
Ishita Verma and Anurakt Jain, founders of Klub

Revenue-based financing platform Klub is gearing up to disburse Rs 200 crore for this year’s festive season. Last year, the platform disbursed Rs 100 crore, aiming to boost sales on major e-commerce platforms like Amazon, Flipkart, and Myntra. This significant increase reflects Klub’s commitment to supporting small and medium-sized enterprises (SMEs) during one of the busiest shopping periods in India.

The funds will help SMEs manage their inventory and plan marketing strategies to meet the high demand of the festive season. This will ensure that businesses are well-prepared to capitalize on the surge in consumer spending. Klub has emphasized that these efforts are crucial for maintaining a steady supply of products and effective marketing campaigns during this peak period.

Klub’s strategy includes investing in direct-to-consumer (D2C) brands across over 45 sectors. In the previous year, Klub invested in areas such as beauty and personal care, fashion and apparel, and cloud kitchens and restaurants. Notable brands that received investments include Monrow Shoes, BRB Chips, Berrylush, and Potful, showcasing the platform’s diverse investment portfolio.

Based in Bengaluru, Klub offers funding up to Rs 30 crore in a single tranche and employs various capital structures tailored to the needs of brands and founders. These structures include term loans, credit lines, and revenue financing. The initiative is supported by partnerships with leading non-banking financial companies (NBFCs), such as U GRO Capital, enhancing its ability to provide flexible funding solutions.

Founded in 2019 by Anurakt Jain and Ishita Verma, Klub has established itself as a key player in the revenue-based financing sector. The platform collaborates with NBFCs, high-net-worth individuals (HNIs), financial institutions, and its own SEBI-registered fund to provide growth capital. Klub’s flexible funding options cater to businesses at various stages, supporting recurring marketing, inventory, and capital expenditure needs. To date, Klub has facilitated over 1,700 investment rounds, benefiting more than 650 brands, and raised $20 million in seed funding from investors like Peak XV’s growth program Surge, Alter Global, GMO Venture Partners, and 9Unicorns. Klub competes directly with companies like GetVantage, Velocity, Clearco, CRED Mint, Wayflyer, and KredX.

Ola Electric’s IPO Valuation Expected at $4.5 Billion:A Strategic Move Amid Global Market Recalibration

By
Garima Bansal
-
0
Ola Electric's IPO Valuation Expected at $4.5 Billion: A Strategic Move Amid Global Market Recalibration

Ola Electric is preparing for its initial public offering (IPO) with an expected valuation of around $4.5 billion, a notable decrease from its previous valuation of $5.4 billion during the last funding round. This decline of approximately 16-20% is attributed to a global recalibration of tech stock valuations. In October of the previous year, the company raised $384 million in a funding round led by Singapore’s investment firm Temasek.

Although the final valuation for the IPO is still being determined, sources suggest that it is unlikely to meet the $6 billion target set by Bhavish Aggarwal, Ola Electric’s founder. The ongoing book-building process aims to price the IPO attractively to offer value to investors, indicating a strategic approach to the market conditions.

In December of the previous year, Ola Electric submitted its draft red herring prospectus to the Securities and Exchange Board of India (SEBI) for an INR 5,500+ crore IPO, receiving regulatory approval last month. The company, founded by Aggarwal, is a leading player in the two-wheeler electric vehicle market in India, offering five scooter models and operating an extensive omnichannel distribution network with numerous experience and service centers.

Earlier this year, Ola Electric secured additional funding of INR 410 crore (around $50 million) through non-convertible debentures issued to EvolutionX Debt Capital. As part of its preparations for the IPO, the company has been restructuring to reduce costs and streamline operations, which included plans to lay off approximately 400-500 employees.

Financially, Ola Electric reported a net loss of INR 1,471.6 crore for the financial year 2022-23, an 88% increase from the previous year. Despite this, the company’s operating revenue saw a significant year-on-year growth of 605%, reaching INR 2,630.9 crore in the same period. As Ola Electric moves towards its IPO, it aims to balance its growth aspirations with market realities, seeking to attract investors with a well-priced public offering.

Tekion Secures $200 Million to Propel Automotive Retail Innovation

By
Garima Bansal
-
0
Tekion Secures $200 Million to Propel Automotive Retail Innovation

Tekion, the innovative SaaS unicorn specializing in the automotive retail industry, has recently raised $200 million in growth equity capital from Dragoneer Investment Group, bringing its valuation to over $4 billion. This strategic funding round will fuel Tekion’s expansion efforts as it aims to enhance its reach among automotive retailers and OEMs globally.

Founded in 2016 by Jay Vijayan and headquartered in California, Tekion also has a strong presence in Bengaluru and Chennai. With this latest investment, the company has accumulated a total of $640 million in funding, following a $250 million round in October 2021. Tekion’s rapid growth and market influence are underscored by its ability to attract significant investment from renowned firms.

Tekion plans to utilize the new capital to drive market expansion and extend its comprehensive and fully integrated platform’s reach within the automotive retail sector. With nearly 3,000 employees worldwide, the company is poised to continue its trajectory of impressive growth and industry transformation. Key investors in Tekion include Index Ventures, Advent International, Durable Capital Partners, Alkeon Capital Management, Storm Ventures, GM, BMW I Ventures, Exor, Hyundai, AME Cloud Ventures, and Airbus Ventures.

In 2023, Tekion achieved an annual revenue run rate exceeding $100 million, reflecting a remarkable 97% growth. The company has established partnerships with over 2,000 automotive retailers and OEMs, as well as 250 technology partners. Its customer base spans the US, Canada, and the UK, featuring notable brands such as Penske Motor Group, American Motors Group, Walt Massey Automotive, California Automotive Retailing Group, Rohrman Automotive Group, Rairdon Automotive Dealerships, Sandy Sansing Automotive, and Longo Toyota and Lexus of Penske Motor Group.

Christian Jensen, Partner at Dragoneer, highlighted Tekion’s market-defining platform and its scalability in one of the most complex industry verticals. Jensen emphasized the immense opportunities ahead as automotive customers increasingly demand seamless, digital-first experiences and automotive retailers seek competitive advantages, business efficiencies, and insights from advanced technologies. This investment underscores Tekion’s potential to continue revolutionizing the automotive retail industry.

Frendy Raises Rs 2 Crore in Debt Financing to Expand Rural Grocery Network in Gujarat

By
Garima Bansal
-
0
Frendy Raises Rs 2 Crore in Debt Financing to Expand Rural Grocery Network in Gujarat

Retail tech small format grocery chain Frendy has successfully raised Rs 2 crore (approximately $239,000) in a debt financing round spearheaded by UC Inclusive Credit. This latest round brings Frendy’s total fundraising to Rs 42 crore, including previous debt and equity investments.

Frendy’s roster of existing investors boasts prominent names such as Auxano Capital, AT Capital (Singapore), Desai Ventures, Let’s Venture, MARV Capital (New York), and Metara Ventures (Singapore). The newly acquired funds are earmarked for bolstering the company’s central inventory to support its network of Frendy Marts and Micro Kiranas in tier III towns across Gujarat.

Established in 2019 by Sameer Gandotra, Frendy is dedicated to creating a network of contemporary neighborhood grocery mini marts catering to consumers in India’s small towns and villages. Based in Ahmedabad, Frendy currently operates 25 marts and collaborates with 2,000 micro kiranas throughout rural Gujarat. The company has set its sights on expanding to 100 marts and 3,000 micro kiranas within the next 12 months.

Frendy’s marts are digitally integrated with a cluster of micro-kiranas (mom-and-pop stores) and their end customers. This digital connection allows Frendy to establish a last-mile digital commerce bridge, serving a broader spectrum of rural consumers effectively.

Moving Tech Secures $11 Million in Funding to Revolutionize Community-Led Mobility Apps

By
Garima Bansal
-
0
Moving Tech Secures $11 Million in Funding to Revolutionize Community-Led Mobility Apps

Moving Tech, the operator of community-focused mobility apps including Namma Yatri, Yatri Sathi, Yatri, and Mana Yatri, has raised $11 million (approximately Rs 92 crore) in a pre-Series A funding round. The investment was led by Blume Ventures and Antler, with participation from Google and other investors.

This funding marks the first venture investment for the Bengaluru-based company.

According to the company, Namma Yatri intends to utilize the funds to advance its technology, research and development, and product innovation efforts. The goal is to empower drivers, integrate public transportation, and enhance customer convenience. By employing direct-to-driver and multimodal transportation models, the company aims to increase driver earnings while providing reliable, affordable, seamless, and sustainable mobility solutions.

In April, Juspay, a payments firm, spun off its ride-hailing subsidiary, Namma Yatri, into a separate entity named Moving Tech Innovations Limited. This new entity is led by Juspay’s Chief Growth Officer Shan M S and Chief Product Officer Magizhan Selvan.

Moving Tech launched Namma Yatri in Bengaluru in 2022. The suite of apps is fully open-source, features open data metrics, and is part of the ONDC Network.

The company’s mission is to develop empathetic products and technologies that are significantly better. By collaborating with the community (Samaaj), government (Sarkar), and business (Bazaar), Moving Tech aspires to create an impact similar to UPI in India and Linux worldwide. This funding is expected to drive further innovation and growth.

Moving Tech currently has a user base of 7 million and 400,000 drivers. The company operates in 8 cities and towns and has facilitated 46 million trips.

Recently, Namma Yatri introduced zero-commission auto and cab rentals in Bengaluru and Chennai, with plans to extend this service to Delhi-NCR. This initiative is aimed at challenging competitors and market leaders such as Ola, Rapido, and Uber, which have also introduced zero-commission models for auto drivers.

A.O. Smith to Acquire HUL’s Pureit for ₹601 Crore, Expanding Presence in Indian Water Purification Market

By
Garima Bansal
-
0
A.O. Smith to Acquire HUL's Pureit for ₹601 Crore, Expanding Presence in Indian Water Purification Market"

A.O. Smith Corp., a leading global manufacturer of water heating equipment, has finalized an agreement to acquire Hindustan Unilever Ltd’s (HUL) Pureit water purification business in India for ₹601 crore. This transaction, expected to conclude by the end of 2024 pending customary closing conditions, is part of a broader deal where A.O. Smith is purchasing Pureit’s operations across South Asia from HUL’s parent company, Unilever, for approximately $120 million.

Pureit, launched in Chennai in 2004, specializes in providing a diverse range of residential water purification solutions, primarily catering to the Indian market. HUL confirmed that the sale aligns with its strategic focus, with Pureit contributing less than 1% of its turnover in FY24. The business is categorized under HUL’s homecare segment, and its financials are integrated within that division rather than being separately tracked.

According to HUL’s filing with the exchanges, the acquisition will be executed through a slump sale facilitated by a business transfer agreement between HUL and A.O. Smith India Water Products Pvt. Ltd., a subsidiary of A.O. Smith Corp., USA. HUL will continue managing the Pureit business until the transaction’s completion.

The acquisition marks A.O. Smith’s strategic expansion in the South Asian water purification market, leveraging Pureit’s established brand presence and product portfolio. Both companies anticipate synergies that will enhance their market positions and strengthen their offerings in the region.

For A.O. Smith, known for its expertise in water treatment technologies, the acquisition represents a significant step towards bolstering its presence in India’s rapidly growing water purification sector. The company aims to capitalize on Pureit’s customer base and distribution network to drive growth and innovation in the region.

Raymond Lifestyle Appoints Top Executives and Prepares for Listing Amid Major Corporate Restructuring

By
Garima Bansal
-
0

Raymond Lifestyle (RLL), a newly demerged entity from the ₹9,286-crore Raymond conglomerate, has recently appointed several prominent executives from India Inc as independent directors. These appointments come ahead of a potential listing scheduled for next month. Notable figures such as Vineet Nayar, former CEO of HCL Technologies, GC Chaturvedi, former chairman of ICICI, Anisha Motwani, board member of Abbott, and Dinesh Lal, a director at Raymond, have joined the board.

Gautam Singhania, chairman of Raymond, is expected to assume the role of managing director of Raymond Lifestyle. Additionally, Sunil Kataria, the current CEO of Raymond Lifestyle, will also join the newly formed board. Singhania emphasized the group’s commitment to enhancing shareholder value and highlighted the importance of having a board with high-caliber members. The diverse expertise of the new board members is anticipated to drive the company’s strategic vision and operational excellence, playing a crucial role in its long-term success.

The restructuring plan, which includes the demerger of the lifestyle business and the amalgamation of its consumer trading arm, was approved by the National Company Law Tribunal (NCLT) in June 2024. As part of the restructuring, Raymond shareholders will receive five shares of Raymond Lifestyle for every four shares of Raymond. This move aims to streamline the company’s operations and provide focused attention to each business vertical.

In addition to the lifestyle business demerger, Raymond’s board also approved the separation of its real estate business, which will be rebranded as Raymond Realty and listed automatically on stock exchanges. Consequently, shareholders will receive one share of the new entity for every one share held in Raymond. Post-demergers, the Raymond Group will comprise three distinct listed entities: Raymond Lifestyle, Raymond Realty, and Raymond, with each focusing on specific sectors such as lifestyle, real estate, and engineering, respectively.

Raymond Realty is currently monetizing its legacy land in Thane and exploring development projects in Bandra. The demerger will allow each business segment to receive focused leadership and scale appropriately. Singhania believes that the real estate arm will leverage its competitive advantage in timely project delivery and customer satisfaction to seize market opportunities in the Mumbai Metropolitan Region (MMR). The company’s strategic focus will be on superior execution and quality to maintain market leadership amid competitive pressures.

Yali Capital Launches Rs 810 Crore Fund to Drive Deep-Tech Innovation in India

By
Garima Bansal
-
0
Yali Capital Launches Rs 810 Crore Fund to Drive Deep-Tech Innovation in India

Yali Capital, a new venture fund specializing in deep technology, has launched its maiden fund aiming to raise Rs 810 crore, with an additional greenshoe option of Rs 310 crore. The fund is spearheaded by Ganapathy Subramaniam, previously with Celesta Capital, and Mathew Cyriac, former co-head of private equity at Blackstone India and executive chairman of Florintree Capital Partners. Lip-Bu Tan, chairman of Walden International, joins as a fund advisor, while Karthik Madathil, with extensive experience at Texas Instruments, joins as a partner.

During the fund’s launch, discussions highlighted the burgeoning interest in deep tech and semiconductors, driven by advancements in AI and notable successes like Nvidia. This growth trajectory positions India favorably for substantial advancements in these fields.

The fund founders, together with Tan, plan to collectively invest $15 million (Rs 125 crore) into the fund. Yali Capital aims to initially invest in four firms by September and intends to support a total of eight to ten firms, including subsequent investments.

Key sectors of focus for Yali Capital include genomics, smart manufacturing, chip design, robotics, aerospace, and AI. Approved by SEBI as a Category 2 Alternate Investment Fund (AIF), the fund aims to actively engage with portfolio startups to enhance product development and strategic initiatives.

The strategy involves leveraging investors’ expertise to foster growth and potential acquisitions by Western strategic players, emphasizing the fund’s proactive approach to driving long-term value for its portfolio companies.

Dhoni Invests in BluSmart’s ₹200 Crore Funding Round, Bolstering Sustainable Mobility

By
Garima Bansal
-
0
Dhoni Invests in BluSmart's ₹200 Crore Funding Round, Bolstering Sustainable Mobility

Mahendra Singh Dhoni, the former captain of the Indian cricket team, has recently invested in BluSmart during a ₹200 crore funding round. This is at least his third venture into the automobile startup sector, demonstrating his keen interest in innovative mobility solutions. Dhoni’s other investments include electric cycle manufacturer EMotorad, used car retailer Cars24, and digital lending platform Khatabook.

Dhoni expressed that investing in BluSmart’s sustainable business model goes beyond supporting a company; it is about contributing to a movement that shapes the future of mobility. He believes in the importance of innovation driving sustainable choices and is enthusiastic about BluSmart’s efforts in reshaping urban transportation.

The five-year-old startup is now valued at $250 million, according to its co-founder Punit Goyal. For perspective, Ola, founded in 2010, is targeting a valuation of over $7 billion for its upcoming IPO. However, as of February 2024, one of Ola’s investors had reduced its valuation to $1.9 billion.

Other prominent new investors in BluSmart include Sumant Sinha, founder, chairman, and CEO of ReNew, and responsAbility Investments AG, a leading impact asset manager. Existing investors, along with company founders Anmol Singh Jaggi, Punit K. Goyal, and Puneet Singh Jaggi, also increased their stakes in this funding round.

BluSmart currently operates in New Delhi, Gurugram, Noida, and Bengaluru. In June 2024, the company expanded internationally by launching a premium all-electric limousine service in Dubai. BluSmart recently surpassed an annual revenue run rate of ₹550 crore ($65 million), having raised over $200 million in equity investments and secured an additional $200 million in long-term EV asset financing from leading development financial institutions (DFIs). The company also plans to launch in Mumbai by the end of 2024.

Perpetuity Capital Secures Rs 7 Crore to Boost Clean-Tech Mobility Lending in East India

By
Garima Bansal
-
0

Perpetuity Capital, a fintech platform focusing on clean-tech mobility, has successfully raised Rs 7 crore through Non-Convertible Debentures (NCDs) from N+1 Capital and RevX Capital.

The funds will be used to bolster Perpetuity Capital’s lending capabilities and expand its loan portfolio, with a particular focus on East India. This initiative aims to foster the adoption of eco-friendly mobility solutions in the region.

Under the leadership of Karamveer Dhillon, Perpetuity Capital provides financing options for delivery and autorickshaw drivers to purchase electric vehicles for commercial purposes. In October 2023, the company secured Rs 5 crore in debt from Clime Finance.

In the electric vehicle financing sector, Perpetuity Capital faces competition from companies like Vidyut, Revfin, Finayo, Mufin Green Finance, OTO, evfin, and Hero FinCorp. Notably, Revfin raised $14 million in a Series B round led by Omidyar Network in December, while Vidyut secured $10 million in February this year.

1...414243...89Page 42 of 89