Goldman Sachs is close to finalizing a substantial investment in enterprise software-as-a-service (SaaS) company MoEngage, with plans to inject $35-50 million through a secondary transaction. This move highlights the growing interest in late-stage SaaS startups, even as the sector undergoes a significant valuation readjustment.
The investment involves Goldman Sachs purchasing shares from some of MoEngage’s early investors, marking it as a fully secondary funding round. Despite the general downturn in SaaS valuation multiples over the past year, the deal activity remains robust.
MoEngage, a marketing-focused SaaS firm based in Bengaluru, was last valued at $700 million following a $77 million funding round led by Goldman Sachs and B Capital in 2022. The firm has raised a total of $182 million since its inception in 2014 and counts notable clients such as Flipkart, Policybazaar, Ola, Oyo, and Mamaearth.
The broader market for SaaS investments has seen a slowdown, with funding for late-stage SaaS firms dropping from $1.53 billion in 2022 to $421 million in 2023. For mid-stage companies, investments declined from $2.1 billion in 2022 to $920 million in 2023. Despite this, significant funding rounds continue, reflecting the ongoing interest in scalable SaaS solutions.
Goldman Sachs and MoEngage have both refrained from commenting on the ongoing transaction. However, this potential investment underscores the sustained interest in the SaaS sector, even amidst fluctuating valuations and a more cautious investment environment.
Bengaluru-based electric mobility startup Vidyut announced the launch of its offline pre-owned EV sales and financing platform. Initially, these services are available in Delhi-NCR, Hyderabad, and Bengaluru, with plans to expand into six additional markets, including Mumbai, Chennai, Pune, Lucknow, Agra, and Kanpur by the end of the fiscal year.
Vidyut also plans to launch an online marketplace within the next six months.
The new service offering includes managing the entire process from vehicle inspection and valuation to sale and RTO documentation for the owners. Currently, the platform resells electric commercial three-wheelers from brands such as Mahindra, Piaggio, Euler Motors, Greaves, and Altigreen.
According to Xitij Kothi, Co-Founder of Vidyut, the absence of a robust resale market is a significant obstacle to EV adoption. By launching the EV resale platform, Vidyut aims to provide accurate and transparent vehicle and battery valuation. This initiative, combined with their battery subscription model and EV financing services, addresses concerns about remaining battery life, uncertain resale value, and EV loans, thereby accelerating EV adoption.
Vidyut, which started in November 2021 as a commercial EV financing platform, has spent the past two years building capabilities to inspect, value, sell, and finance pre-owned EVs through its demand generation platform for used EVs. One of the major hurdles in EV adoption is the lack of accessibility to the resale market and resale price discovery of EVs, a challenge Vidyut aims to overcome with its new services.
Tata Consultancy Services (TCS) reported a net profit of Rs 12,040 crore for the first quarter (Q1) of FY25, reflecting an 8.7% increase from Rs 11,074 crore a year ago. The company’s revenue for Q1 reached Rs 62,613 crore, marking a 5.4% annual growth. Despite challenges such as a lack of strong business growth from North America and increased costs due to employee wage hikes, TCS managed to meet market expectations. CEO K Krithivasan noted that it is still early to determine if the growth momentum is sustainable, but he remains optimistic that FY25 will outperform FY24.
The Indian IT industry continues to face challenges due to slower technology spending in North America and Europe, which are key markets. For FY24, TCS experienced a growth rate of below 10%. In Q1 FY25, the company’s operating profit margins were 24.7%, up from 23.2% a year earlier, though there was a sequential decrease of 1.3% compared to Q4 FY24. Key growth drivers for TCS included technology platforms such as artificial intelligence (AI), cloud, cybersecurity, and enterprise solutions. The company has seen strong AI adoption among its clients, with 270 ongoing projects valued at $1.5 billion.
India played a significant role in TCS’s growth in Q1, achieving a 61.8% annual growth rate. North America, which accounted for about 50% of TCS’s revenue, saw a slight decline of 1.1% compared to the previous year. The total contract value (TCV) order book for Q1 stood at $8.3 billion, and the company indicated that a TCV between $7-9 billion would be a comfortable range.
A notable positive development for TCS has been the increase in employee hiring following a declining trend over the past three quarters. The total employee headcount rose to 606,998, an increase of 5,454 compared to Q4 FY24, although it remains lower than the 615,318 employees recorded a year ago. TCS aims to hire around 40,000 freshers annually and plans to meet this target in the current financial year.
Overall, TCS’s performance in the first quarter of FY25 demonstrates resilience despite external pressures. The company remains focused on leveraging its technology platforms and expanding its workforce to drive growth in the upcoming quarters. The outlook for FY25 appears positive, with expectations of improved performance compared to FY24.
Astrology SaaS platform Melooha has acquired Bengaluru-based language translation and astrological guidance startup Munitalks in a transaction combining cash and stock. While specific financial details were not disclosed, sources close to the deal estimate it at approximately INR 70 Lakh.
The acquisition aims to capitalize on Munitalks’ expertise in multilingual support and astrology consultation services to enhance Melooha’s astrological offerings. Melooha also plans to integrate Munitalks’ AI technology stack to facilitate translations across various Indian languages, thereby expanding its user base.
Founded in 2022 by Vikram Labhe and Bahlchandra Patil, Melooha specializes in personalized astrological guidance based on precise birth details, operating in over 110 countries. Vikram Labhe emphasized, that this acquisition underscores their commitment to advancing astrological guidance through cutting-edge technology. By integrating Munitalks, they aim to enhance the accuracy and personalization of user insights, thereby improving overall user experience.
Melooha has secured INR 5.3 Cr in angel funding led by US-based Streak Ventures LLC and several angel investors. Meanwhile, Munitalks, founded by Sumit Rathore earlier this year, focuses on simplifying complex astrological queries and offers services in over 80 languages.
This acquisition occurs amid increasing investor interest in India’s astrology sector. Recently, Astrotalk raised INR 110 Cr and InstaAstro secured INR 18.5 Cr in funding rounds, reflecting the sector’s growth potential from INR 30K Cr to an estimated INR 50K Cr by 2025.
MedGenome has recently acquired a stake in GenX Diagnostics, a well-established diagnostics chain located in Odisha. This partnership is set to introduce advanced genomic solutions to the region, promising to enhance diagnostic and healthcare outcomes for the local population.
GenX Diagnostics, renowned for its strong regional presence, currently operates seven diagnostic centers and 60 collection centers throughout Odisha. Their flagship laboratory, located in Saheed Nagar, Bhubaneswar, holds accreditations from both the National Accreditation Board for Testing and Calibration Laboratories (NABL) and the National Accreditation Board for Hospitals & Healthcare Providers (NABH). Through this strategic collaboration, GenX Diagnostics aims to harness MedGenome’s advanced scientific and technological capabilities to deliver actionable genetic insights. This will enable clinicians to offer more precise and targeted treatments to their patients.
Dr. Vedam Ramprasad, CEO of MedGenome, expressed his excitement about the acquisition, highlighting its potential to expand MedGenome’s market presence and product portfolio. He emphasized that GenX Diagnostics aligns perfectly with MedGenome’s mission to leverage genomics in addressing healthcare challenges. The acquisition aims to bolster MedGenome’s network in tier II and tier III cities across India, driving deeper market penetration and introducing innovative new tests.
Dr. Biswajit Mohanty, Managing Director & Chairman of GenX Diagnostics, Bhubaneswar, echoed these sentiments, emphasizing their commitment to enhancing healthcare services in Odisha through this collaboration. He noted that combining GenX Diagnostics’ extensive product range with MedGenome’s omics solutions will empower healthcare providers and consumers in Eastern India with state-of-the-art diagnostic capabilities.
Farm-to-fork company Otipy is set to secure fresh funding in an extended Series B round from both new and existing investors, 28 months after its previous $32 million Series B funding in March 2022. The new investment will total $10 million and will be used to strengthen Otipy’s operations in existing cities and support its expansion plans. Currently active in Delhi (NCR) and Mumbai, Otipy is considering launching in Bengaluru and Hyderabad.
The additional capital will help Otipy enhance its farm-to-fork delivery model, which involves sourcing fresh produce directly from farmers and delivering it to consumers every morning. The company currently generates a gross merchandise value (GMV) of Rs 20 crore monthly with a Rs 3 crore burn rate. Having established a strong presence in the fruits and vegetables market, Otipy now plans to expand its focus to groceries and aims to achieve EBITDA breakeven in FY25.
To date, Otipy has raised a total of $44 million, including its $32 million Series B round. The largest external stakeholders in the company include SIG Global and WestBridge Capital. The latest funding round will further boost Otipy’s ability to scale and improve its services.
Otipy collaborates with over 20,000 farmers and has more than 1,000 partners, according to its website. The Gurugram-based company achieved over 50% growth, increasing its scale to Rs 173 crore in FY24 from Rs 115 crore in FY23. Additionally, its losses decreased by 21% in the fiscal year ending March 2024.
With this new investment, Otipy is well-positioned to continue its growth trajectory and expand its market presence in new cities, while maintaining its commitment to delivering fresh produce directly from farmers to consumers.
Marathi language video-streaming platform, Planet Marathi OTT, has secured $5 million in funding from A & MA Capital USA, a private equity firm based in the US. According to a company statement, this is one of the largest investments in the regional Indian entertainment sector to date. The company anticipates further increases in this initial investment over the next two quarters.
In addition, Planet Marathi OTT has partnered with media-tech company Dcafe to enhance its technological capabilities. The platform, which showcases Marathi industry talent and stories on a global scale, intends to use the funds to expand its content library and improve its technological infrastructure.
Akshay Bardapurkar, Founder of Planet Marathi OTT, emphasized the company’s commitment to the growth of Indian regional entertainment. Bardapurkar stated that with this significant investment, the company is poised to enhance its offerings and content slate. He highlighted the company’s dedication to delivering top-quality entertainment on OTT and expressed confidence that the new partnership would elevate this dedication to new heights.
Founded three years ago, Planet Marathi OTT boasts the largest and most prestigious library of Marathi content on OTT platforms. The platform offers a diverse range of genres, including comedy, romance, politics, family drama, thriller, crime, and satire. Notable content includes Goshta Eka Paithanichi and Raanbaazaar.
WinZO’s recent partnership with Fundação Getulio Vargas (FGV EAESP), a prominent educational institution in LATAM, signals a strategic move aimed at expanding its presence in Brazil and beyond. This collaboration, announced on Thursday, focuses on joint research initiatives and local talent acquisition to bolster WinZO’s operational capabilities. Following its successful product launch in Brazil last year, WinZO facilitated the export of over 100 partner games’ Technology & IP to Brazil, highlighting its commitment to the region.
The partnership aims to create career opportunities for both current and former FGV students, leveraging their deep understanding of the local market to enhance WinZO’s operational effectiveness and cultural integration in Brazil. By investing in local talent and fostering research collaborations, WinZO seeks to solidify its footprint in Brazil, part of its broader USD 50 million investment plan in LATAM.
Dr. Umesh Mukhi, Professor of Management at FGV – Fundação Getulio Vargas, expressed excitement about the collaboration, emphasizing its role in enriching students’ professional prospects and contributing to global discussions on technology and cultural exchange. This sentiment underscores WinZO’s efforts to integrate more deeply into the Brazilian market through strategic partnerships and local talent acquisition.
The launch of the India Pavilion at Gamescom Latam further highlights the collaboration’s significance, fostering innovation, cultural exchange, and economic growth, particularly within the gaming sector. Ambassador Suresh K. Reddy highlighted the longstanding relationship between India and Brazil, rooted in shared values of cooperation and sustainable development, which underpins initiatives like the India Pavilion.
Paavan Nanda, Co-founder of WinZO, emphasized the milestone of partnering with FGV Brazil, positioning it as a pivotal step towards expanding WinZO’s presence in the Brazilian market. Nanda underscored the platform’s role in showcasing Indian game developers’ talent globally, promoting technological expertise, and fostering strategic dialogue between India and Brazil. This collaboration is poised to bolster trade and contribute to the digital economy growth of both nations, reflecting WinZO’s commitment to the Brazilian gaming community.
In an exclusive interview with Startup77,Vineet Mehta shared his journey, plans, and vision behind Alyve Health, the health tech startup he co-founded along with Shashank Avadhani and Sushant Roy. Vineet’s extensive experience in development, process management, and strategy paved the way for his entrepreneurial endeavor.
Congratulations on your new role at Alyve Health. Can you share what inspired you to co-found Alyve Health?
Vineet Mehta : The journey to co-found Alyve Health was shaped by my extensive experience across various business domains, encompassing development, process management, and strategy. They were pivotal in providing invaluable insights and paved the way for my entrepreneurial endeavor. Shashank’s conviction and passion resonated deeply with my own aspirations to contribute meaningfully to societal needs. When he approached me for the role of Co-founder and CTO at Alyve Health, his articulate description of the healthcare challenge struck a chord. His dedication to addressing critical issues in healthcare mirrored my commitment to drive positive change. With my family’s unwavering support, I embarked on this journey alongside Shashank and Sushant, whose collective expertise and shared vision convinced me of our ability to make a tangible difference. Alyve Health represents not just a business opportunity, but a platform where our aligned values and diverse skill sets converge to innovate and impact healthcare positively.
Alyve Health recently secured $5.5 million in Series A funding. How do you plan to utilize these funds to enhance the platform and its offerings?
Vineet Mehta : Building on what I mentioned above, we will strategically allocate the funds across segments which will help drive our growth. Enhancing platform comprehensiveness: Our primary focus is on expanding our supplier network and ensuring seamless integration, which will significantly enhance the depth and breadth of our platform. This expansion aims to cover a wider spectrum of healthcare expenses for our members and foster the development of more tailored and customer-centric use cases. Advancing data and AI capabilities: Operating as a versatile platform across various healthcare use cases, we possess a wealth of data that positions us as a data-rich organization. Our strategic priority is to develop advanced artificial intelligence models to effectively harness this data, ensuring its secure and confidential utilization. These AI capabilities will further empower us to deliver personalized and efficient services to our users. Growing our talent pool: Integral to our long-term success is the cultivation of a robust talent pool, particularly in high-tech domains such as engineering, DevOps, and product development. We are dedicated to attracting top talent and fostering their growth within our organization, equipping them with the skills necessary to drive innovation and excellence in our health tech solutions.
You have a background with prominent companies like BCG, SAP, and Infosys. How has your experience in these companies influenced your approach at Alyve Health?
Vineet Mehta : Commencing my career in 2006 as a software engineer at Infosys, I embarked on a path that encompassed diverse roles spanning product development, project and program management, engagement management, and advisory in SAP. These roles gave me a comprehensive understanding of product development intricacies, honing my expertise in technology and processes, and culminating in significant exposure to senior management as a CIO advisor. Transitioning to a strategic advisory role at BCG provided me the opportunity to partner with dynamic enterprises across various industries. This experience allowed me to navigate the complete lifecycle of translating vision into actionable strategy, executing comprehensive plans on the ground, and delivering tangible outcomes. Drawing from this rich and varied background, I have developed a structured approach to problem-solving, adept at anticipating and mitigating future challenges. My focus remains on integrating best practices into technology and processes, ensuring efficiency and adaptability in all circumstances.
Alyve Health focuses on a holistic approach to healthcare, covering various aspects from mental health to financial wellness. Can you elaborate on how this comprehensive approach benefits your users?
Vineet Mehta : Users’ healthcare needs are highly varied and unique, necessitating individual navigation through available options. Alyve Health addresses this complexity by offering inclusive healthcare plans designed to provide users with benefits like seamless, cashless access and personalized assistance from dedicated care guides. This personalized approach allows users to choose from a selection of nearby hospitals. Additionally, care guides proactively reach out to users before their appointments, ensuring they receive the necessary support and guidance. Alyve Health harnesses its extensive data resources to continuously refine and enhance these tailored services, ensuring each user receives the most relevant and beneficial healthcare experience possible.
With Alyve Health aiming to democratize healthcare in India, what challenges have you encountered, and how are you addressing them?
Vineet Mehta : One of the major hurdles we face is the fragmented nature of the healthcare ecosystem in India. With thousands of hospitals and laboratories spread across such a vast country, bridging the gap between users and healthcare providers poses a significant challenge. However, in this era of technology, we have developed our APIs to address these challenges. Moreover, the healthcare ecosystem not only suffers from fragmentation but also lacks collaboration among its stakeholders. Creating a cohesive ecosystem requires extensive collaboration with all demand and supply partners involved. Additionally, whenever venturing into new initiatives, a common challenge is the scarcity of requisite skill sets in the market.
Technology and AI are central to Alyve Health’s platform. Can you discuss some of the innovative tech solutions you are implementing to improve user experience?
Vineet Mehta : Robustness, data security, innovation, and speed are at the core of Engineering at Alyve Health, a Technology First Company. A few of the many initiatives include: Enhancing robust data governance frameworks, encryption techniques, and compliance with regulations like DPDPA, SOC2, and GDPR in addition to already secured ISO and HIPAA compliance. Transparent, fair, and unbiased AI models supporting chatbots and virtual assistants provide instant responses to member queries to enhance patient engagement and streamline communication. Predictive analytics enabling preventive measures and lifestyle interventions. Personalized health plans, optimizing efficacy, and so on. Consolidating configurable platform to meet distinguished needs of the customers at unmatched speed.
What are your future plans for Alyve Health? Where do you see the company in the next five years?
Vineet Mehta : Direction-wise, we are very clear. We want to build and scale a customer-centric health tech platform. Our primary goal is to ensure that our customers derive significant value from our platform and to achieve this, we are dedicated to continuously enhancing our product features. We are deeply committed to improving the health outcomes of our customers through Alyve Health’s customized plans. Presently, we serve over 1 million users across 400+ corporates, and over the next five years, our ambition is for Alyve Health to positively impact the lives of 10 million Indians, helping them to lead a healthier and more fulfilling life.
Exotel, a cloud telephony platform, disclosed its fiscal year ending March 2023 financial results, delayed from their original September 30, 2023 deadline. Revenue from operations rose 32.1% to Rs 420 crore from Rs 318 crore in FY22, sourced from Registrar of Companies data. The 13-year-old company primarily offers voice and SMS contact center services over the cloud, with internet-enabled communication as its main revenue source. Other revenue streams include software licenses, chatbot services, and product sales like APIs and mobile applications.
Domestic operations accounted for 81% of Exotel’s revenue, with the remainder from Southeast Asia, the Middle East, and Africa. Expenditures saw significant increases: employee benefits rose 43.3% to Rs 245 crore, and overall costs, including telephone-postage and marketing expenses, increased 51.8% to Rs 554 crore. These escalations contributed to Exotel’s losses jumping to Rs 109 crore in FY23 from Rs 43 crore in FY22, with negative ROCE and EBITDA margins at -21.9% and -18.3%, respectively. The company’s performance has fallen short of expectations since 2020, despite previous profitability.
Exotel, backed by over $100 million in funding, including a $40 million investment from Steadview Capital in 2022, faces competitive pressures and shrinking margins in the cloud telephony sector. A91 Partners holds the largest external stake at 25.7%, followed by Blume Ventures.
