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Dr Lal PathLabs Targets Major Acquisition to Bolster Southern India Expansion

By
Supriya Biswas
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Dr Lal PathLabs, a leading name in India’s diagnostic industry, is gearing up for a major acquisition to enhance its footprint in South India. The company is open to a deal worth between Rs 3,000 crore and Rs 4,000 crore if it aligns with its strategic goals, according to a senior official.

“We have around Rs 1,000 crore in net cash and can utilize our balance sheet and equity as needed, so the size of the acquisition won’t be an issue,” stated Ved Prakash Goel, the Group CFO. He acknowledged that while market valuations are currently high, the company remains on the lookout for suitable opportunities.

Dr Lal PathLabs is eyeing potential assets that generate revenues in the Rs 300-400 crore range, focusing on entities with strong governance, good revenue mix, and quality operations. The company has already put together a dedicated mergers and acquisitions (M&A) team to assess possible deals in the market.

“We are open to acquisitions in the South, similar to what we did with Suburban Diagnostics in the Western region. That was our first large acquisition, and it took us about two years to integrate and put it on a growth trajectory,” explained Shankha Banerjee, CEO of Dr Lal PathLabs. He further added that the company now has ample management bandwidth and financial resources to pursue new growth opportunities.

Despite its headquarters being in Gurugram, Dr Lal PathLabs has a relatively modest presence in South India, contributing only 6% to its Rs 2,227 crore revenue in FY24. The majority of the company’s revenue comes from Delhi NCR and other northern regions, while the East and West each contribute about 15%.

With a market capitalization of Rs 27,560 crore, Dr Lal PathLabs has seen its stock surge by more than 60% over the past six months. As of June 30, 2024, the company holds Rs 1,044 crore in net cash and equivalents, and it maintains a low debt-equity ratio of 0.1%.

Founder Dr Arvind Lal and his family, who are the company’s primary promoters, own 54.6% of the shares. The company’s most recent major acquisition was Suburban Diagnostics in October 2021, a deal that took place during the COVID-19 pandemic when valuations in the diagnostics sector were at an all-time high. The acquisition, which cost over Rs 1,000 crore, allowed Dr Lal PathLabs to establish a stronghold in the Western region, particularly in Mumbai. However, the valuation of Suburban at 18 times EBITDA raised concerns at the time, as its margins were temporarily boosted by pandemic-related testing. Currently, Suburban’s EBITDA margins are about half of Dr Lal PathLabs’ 28% margin reported in Q1FY25.

As Dr Lal PathLabs looks to expand its reach, a successful acquisition in the South could significantly boost its presence across the country.

Pluckk Strengthens Its Portfolio with $1.4 Million Acquisition of Upnourish

By
Supriya Biswas
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0

Digital lifestyle brand Pluckk has broadened its reach by acquiring Upnourish, a fast-growing nutrition brand in India. Valued at $1.4 million, this acquisition signifies Pluckk’s strategic expansion into the burgeoning nutrition market. As India’s presence in the global nutrition sector is expected to increase from 2% to 12% by 2029, this move is well-timed.

“With this addition, we are enhancing our commitment to delivering top-quality fresh food and nutritional solutions to our customers,” said Pratik Gupta, CEO of Pluckk.

Upnourish, a brand by 23BMI Life Sciences Pvt Ltd, specializes in personalized nutrition plans and offers meal replacement products, including smoothies, soups, and bars.

Aayushi Lakhapati, Chief Nutritionist and Co-founder of Upnourish, commented, “Through Pluckk’s dedication to clean, fresh produce, Upnourish will be able to cater to a larger audience, offering comprehensive health solutions.”

Upnourish addresses various health concerns, such as weight management, diabetes, PCOD, and high cholesterol. Pluckk, meanwhile, is also pushing forward its farm-to-table model, providing fresh produce directly to consumers.

Backed by Exponentia Ventures, Pluckk recently raised funding with the goal of achieving a Rs 200 crore annual run rate by the end of this fiscal year, with a target of 25-30% revenue from offline sales.

Pluckk, which raised $5 million in seed funding in 2022, has made clear its intent to diversify through acquisitions.

Currently, the B2C food tech platform operates in key urban markets, including Delhi, Mumbai, Bangalore, and Pune, ensuring the availability of fresh produce through leading online and offline platforms such as Amazon, Nature’s Basket, Swiggy, Zepto, and Blinkit.

Lissun Raises $2.5 Million to Expand Mental Health Services with RPSG Capital Ventures Leading the Round

By
Supriya Biswas
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0

Lissun, a rapidly growing mental health platform, has secured $2.5 million (around Rs 20 crore) in a funding round led by RPSG Capital Ventures, a venture capital firm focused on early-stage consumer companies. The capital will be directed towards expanding the platform’s network of centres, strengthening its technological backbone, and enhancing its service offerings.

Founded in 2021 and headquartered in Gurgaon, Lissun collaborates with healthcare providers, corporations, and educational institutions to offer integrated mental health solutions. The platform focuses on managing high-stress scenarios, including chronic health conditions, exam-related anxiety, and workplace stress.

Lissun also extends its services to child development, offering support for neurodevelopmental and behavioral disorders such as autism spectrum disorder, ADHD, and learning challenges.

“With this funding, we are now well-positioned to expand our services, improve our technology, and grow our team. This investment enables us to make mental health care more accessible and to further advance the quality of our offerings. We aim to set new standards for mental health care across India,” said Krishna Veer Singh, CEO and co-founder of Lissun.

Singh, along with co-founder Tarun Gupta, previously held leadership roles at prominent companies including Uber, Flipkart, and Oyo. Under their leadership, Lissun has expanded its reach to around 20 cities across India and has raised a total of $5 million in funding to date.

Sambit Dash, partner at RPSG Capital Ventures, highlighted the firm’s belief in Lissun’s approach: “We have been closely watching the mental health sector in India and are impressed by Lissun’s unique ‘phygital’ model. Their commitment to combining both physical and digital services to meet mental health needs is perfectly aligned with the growing demand for more comprehensive mental health care.”

Vikram Gupta, founder of IvyCap Ventures, added, “As Lissun continues to scale its services and address critical mental health and developmental issues, we are confident they will play a pivotal role in transforming the mental health landscape in India.”

Basic Home Loan Raises Rs 87.5 Crore in Series B to Boost Market Reach and Technology

By
Supriya Biswas
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0

Gurugram-based fintech startup, Basic Home Loan, which focuses on automating home loans for low- and middle-income households in India, has secured Rs 87.5 crore ($10.6 million) in its Series B funding round. The round was led by Bertelsmann India Investments (BII), the strategic arm of German multinational Bertelsmann SE & Co. KGaA, with participation from CE-Ventures, the venture capital arm of UAE-based Crescent Enterprises.

Prominent investor Ashish Kacholia also increased his stake in this round, and several existing investors, including Gruhas, Let’s Venture, 9Unicorns, and Venture Catalysts, continued their support.

CEO and co-founder of Basic Home Loan, Atul Monga, stated, “This funding will allow us to scale our operations, enhance our technology, and introduce new financial products to better serve our growing customer base. We also plan to expand our FLDG (First Loss Default Guarantee) partnership with lenders, offering solutions that will help us cater to a wider audience.” Dexter Capital acted as the exclusive advisor for this funding round.

The funds raised will be allocated toward expanding the company’s market footprint, building a proprietary lending book, and advancing its technological infrastructure. Rohit Sood, a partner at Bertelsmann India Investments, noted, “Basic Home Loan has developed a powerful, transparent solution through its advanced tech stack. In under three years, it has emerged as a leading channel partner for lenders, benefiting from supportive government policies that favor affordable housing, particularly for lower- and middle-income groups.”

This fintech platform has previously raised $8.7 million in three prior funding rounds. Since its launch, Basic Home Loan has helped nearly 250,000 families across 650 districts in India achieve homeownership, while indirectly generating 15,000 jobs in tier-2 and tier-3 regions. The startup has processed $12 billion in loan applications and disbursed over $1.1 billion in loans through its network of lending partners.

Sudarshan Pareek, Vice President at CE Ventures, expressed his enthusiasm about the partnership, stating, “The way Basic Home Loan merges technology with on-the-ground expertise is remarkable, and we are excited to be part of their journey to reshape the housing finance landscape in India.”

Founded in 2020, Basic Home Loan operates as a tech-driven mortgage marketplace, simplifying the home loan process for customers, particularly in tier-2 and tier-3 cities. Through a hub-and-spoke model, the company has set up hubs in 10 cities and serves customers in 30 cities via a network of 15,000 agents. The company has experienced 10x revenue growth in the past two years, driven by tech-enabled mortgage solutions and favorable policies like the Pradhan Mantri Awas Yojana (PMAY).

With this latest funding, Basic Home Loan aims to deepen its impact in India’s evolving housing market and continue offering innovative financial solutions.

AAHOA Celebrates OYO’s Acquisition of G6 Hospitality, Opening Doors for U.S. Expansion

By
Supriya Biswas
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The Asian American Hotel Owners Association (AAHOA), recognized as the world’s largest group of hotel owners, has welcomed OYO‘s recent acquisition of G6 Hospitality, the company behind the Motel 6 and Studio 6 brands. This $525 million transaction with Blackstone significantly strengthens OYO’s footprint in the U.S. hospitality market.

“AAHOA looks forward to working closely with OYO as they take over the Motel 6 and Studio 6 franchise brands,” said Chairman Miraj S. Patel.

“Our members have always valued our longstanding partnerships with G6, and this new chapter with OYO offers an exciting opportunity to build upon those ties. Together, we can continue to push the boundaries of innovation and ensure excellent guest experiences.”

OYO’s decision to maintain the operations of Motel 6 and Studio 6 while introducing new ideas signals exciting possibilities. “The future looks promising,” said Laura Lee Blake, President & CEO of AAHOA. “OYO brings a powerful mix of international expertise and a deep understanding of local markets, which we believe will greatly benefit both our members and the larger hospitality sector. At AAHOA, we remain steadfast in our commitment to supporting our members as the industry evolves, ensuring their success amid these shifts.”

As OYO transitions into managing Motel 6 and Studio 6, AAHOA continues to focus on supporting its members and fostering strong industry partnerships.

Kumar Arch Tech Plans Rs 740 Crore IPO to Boost Growth

By
Supriya Biswas
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0

Kumar Arch Tech, a manufacturer specializing in PVC blend-based building materials, has filed a draft with the Securities and Exchange Board of India (SEBI) to raise Rs 740 crore through an Initial Public Offering (IPO). The IPO will consist of two parts: a fresh issue of shares worth Rs 240 crore and a Rs 500 crore offer-for-sale (OFS) by the company’s promoters, as detailed in the draft documents submitted recently.

Additionally, the company may look to secure Rs 48 crore through a pre-IPO placement. If this round is successful, the size of the fresh issue will be adjusted accordingly.

A significant portion of the funds from the fresh issue—Rs 182.09 crore—will be directed toward its subsidiary, Taylias Industry Private Limited, to fund capital expenditures for a greenfield project focused on manufacturing PVC-based products.

Kumar Arch Tech offers an extensive range of products, categorized into three main areas: board and sheet products such as trimboards, doors, and ceiling panels; profiles including mouldings and door frames; and signage solutions.

A report by Wazir Advisors highlights that U.S. imports of PVC blend-based building materials have grown at a compound annual growth rate (CAGR) of 6%, increasing from USD 4.9 billion in 2020 to USD 6.2 billion by March 2024. During this period, India’s exports to the U.S. in this sector surged from USD 47 million (representing 1% of total U.S. imports) to USD 144 million (2.3% of U.S. imports), achieving a CAGR of 32%.

Motilal Oswal Investment Advisors and Equirus Capital have been appointed as the lead managers for the IPO.

Adda247 Strengthens its Job-Oriented Offerings by Acquiring PrepInsta

By
Supriya Biswas
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0

Google-backed edtech firm Adda247 has taken a significant step in expanding its offerings by acquiring PrepInsta, a platform focused on helping individuals prepare for job placements. Although the financial details of this acquisition have not been disclosed, it underscores Adda247’s commitment to being a comprehensive provider of education and skill development for both public and private sector jobs.

With PrepInsta now in its portfolio, Adda247 has made a total of four acquisitions. Previous acquisitions include StudyIQ, a UPSC preparation platform in 2021; Veeksha, a company specializing in augmented and virtual reality learning modules, bought earlier in 2023; and Ekagrata Eduserv, a firm focused on chartered accountancy exam preparation, acquired in July.

Bimaljeet Singh Bhasin, CEO of Adda247’s skilling and higher education division, elaborated on the company’s strategic shift, saying, “We were primarily focused on government job preparations until about four months ago. Since then, we’ve broadened our scope to include skilling and higher education, entering the private sector job market. Our aim is to be a fully integrated player in both job preparation and skill development, while also collaborating with companies to nurture talent across public and private sectors.”

Bhasin noted that the company will focus on specific industries such as banking, financial services, insurance, and technology for its skilling programs. “The tech sector, in particular, employs the most people, which is why it’s a key focus for us in terms of job-related programs. The PrepInsta acquisition is part of our larger strategy to make an impact in this space,” he explained.

Founded in 2016 by Anil Nagar and Saurabh Bansal, Adda247 offers a range of courses aimed at government job aspirants, covering sectors like state-run banks, railways, and other government departments. The platform delivers live online classes, on-demand video tutorials, mock tests, e-books, and physical books customized for different competitive exams. Available in 12 regional languages, the platform caters to over 40 million users monthly, with 2 million students enrolled in its premium courses.

In the financial year 2023-24, Adda247 achieved revenue of Rs 243.39 crore, reflecting an 88% increase from Rs 129.65 crore in the previous fiscal year. Additionally, the company significantly narrowed its net losses to Rs 101 crore, down from Rs 296 crore.

Commenting on the acquisition, PrepInsta cofounder Atulya Kaushik said, “Many engineering students and recent graduates already use Adda247. This will enable us to introduce tech and digital skills programs to over 1.2 million paying users.”

Adda247’s latest funding round was in 2022, where it raised $35 million, led by WestBridge Capital, with participation from Google and existing investors like Info Edge Ventures and Asha Impact. To date, Adda247 has raised $63 million in total.

HDFC Bank Strategizes to Raise ₹2.7 Trillion Ahead of Historic Merger

By
Supriya Biswas
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0

HDFC Bank Ltd is preparing to mobilize at least ₹2.2 trillion through public deposits and corporate bonds as part of a strategic initiative to bolster its financial standing. In addition, the bank seeks to secure an extra ₹50,000 crore to satisfy capital requirements and other essential regulatory conditions ahead of its landmark merger with Housing Development Finance Corp. Ltd, India’s foremost mortgage lender.

As a non-banking financial institution, HDFC Ltd must address its existing debts with other financial entities before the merger can proceed. Indian banking regulations stipulate that banks cannot reflect loans from other banks on their balance sheets, making it imperative for HDFC to repay these obligations to facilitate the merger’s completion.

In April, HDFC Bank and HDFC announced their intention to merge in a monumental $40 billion transaction, a move hailed as the largest in corporate history. This merger positions HDFC Bank to become significantly larger than ICICI Bank, currently the third-largest lender in India, potentially reshaping the competitive landscape of the banking sector.

Furthermore, HDFC has formally requested the Reserve Bank of India (RBI) to temporarily waive the Statutory Liquidity Ratio (SLR) requirement, proposing a phased compliance approach. According to the Banking Regulation Act of 1949, banks are required to maintain an SLR of 18% and 25% as of the last Friday of the second fortnight of each month, underscoring the importance of regulatory adherence during this critical transition.

This merger represents a significant milestone not only for HDFC Bank but for the entire banking industry, indicating a trend toward consolidation and increased competitiveness among major financial institutions in India.

REC Ltd Secures $500 Million in Green Bonds to Boost Renewable Energy Initiatives

By
Supriya Biswas
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0

REC Ltd, a state-owned enterprise, has successfully raised $500 million through green dollar bonds aimed at financing renewable energy projects. The bonds, which come with a five-year maturity period and a coupon rate of 4.75% per annum, are set to mature on September 27, 2029.

This issuance marks the first instance of a U.S. dollar bond being launched by an Indian public sector organization in 2024. The funds raised will contribute to REC’s ambitious $10 billion global medium-term program and will be allocated to projects aligned with its Green Finance Framework, adhering to the guidelines established by the Climate Bond Initiative and the Reserve Bank of India.

With ratings of Baa3 from Moody’s and BBB from Fitch, the bonds will be listed on India INX and NSE IFSC. Despite a challenging global financial landscape, the bond issuance received robust demand, highlighting India’s emerging role in the green finance sector. Barclays, DBS, HSBC, Mizuho, MUFG, and Standard Chartered Bank served as joint bookrunners for this successful issuance.

As of June 30, 2024, REC’s loan portfolio stood at ₹5.30 lakh crore, with a net worth of ₹72,351 crore.

This strategic move not only reinforces REC’s commitment to sustainable development but also showcases the growing appetite for green financing in India. As the world increasingly turns its focus towards renewable energy, REC’s initiative exemplifies how public sector entities can play a vital role in addressing climate change and promoting a greener future.

Brand Amul’s Group Revenue Reaches ₹80,000 Crore for 2023-24, Reports GCMMF

By
Supriya Biswas
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0

The Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF) has revealed that the overall turnover of Brand Amul hit ₹80,000 crore (approximately $10 billion) in the fiscal year 2023-24, up from ₹72,000 crore (around $9 billion) in the previous year. The federation reported an impressive 8% increase in turnover, reaching ₹59,545 crore (about $7 billion) for FY24.

In its statement, GCMMF noted that this milestone coincides with its Golden Jubilee year, showcasing an 8% year-on-year growth in revenue.

“Celebrating our 50th anniversary, GCMMF has attained a remarkable feat by establishing itself as one of the strongest food brands globally. We are focused on continuous expansion by entering new markets, launching innovative products, and enhancing milk processing capacities throughout India,” said Shamalbhai Patel, Chairman of GCMMF.

As a cooperative owned by farmers, GCMMF comprises 3.6 million dairy farmers across 18,600 villages in Gujarat, with 18 member unions collectively managing the procurement of 30 million liters of milk daily.

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