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Hindustan Composites invests Rs 5.2 crore in Swiggy

Garima Bansal
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Hindustan Composites invests Rs 5.2 crore in Swiggy

Hindustan Composites Ltd, a manufacturer of automobile materials, has made an investment of Rs 5.17 crore in Swiggy, acquiring 1.5 lakh shares of the food delivery and quick commerce giant. This move aligns Hindustan Composites with other notable investors who have recently taken stakes in Swiggy, which is gearing up for a $1.25 billion initial public offering (IPO). Swiggy has been actively securing investments ahead of its IPO, drawing interest from various high-profile investors.

Actor Amitabh Bachchan’s family office also invested in Swiggy by purchasing shares from employees and early investors. Additionally, Raamdeo Agrawal, Chairman of Motilal Oswal Financial Services, has acquired a stake in the Bengaluru-based company. Agrawal is also an investor in Zepto, Swiggy’s competitor in the quick commerce space, participating in Zepto’s $665 million funding round in June. Zepto’s valuation has surged to $5 billion following a recent $340 million funding round.

The secondary share transactions involving Bachchan and Agrawal are believed to have occurred at a valuation of $10-11 billion for Swiggy. In June, investor 360 One WAM valued Swiggy at $11.5 billion, while Swiggy’s last known valuation was $10.7 billion from a funding round in 2022.

SoftBank-Backed OfBusiness Eyes Up to $1 Billion IPO on Indian Market by Late 2025; Engages Top Banks for Listing

Garima Bansal
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SoftBank-Backed OfBusiness Eyes Up to $1 Billion IPO on Indian Market by Late 2025; Engages Top Banks for Listing

SoftBank-backed OfBusiness, an Indian B2B e-commerce platform supplying raw materials like polymers, agricultural goods, and industrial steel, is preparing for a significant IPO on the Indian stock market. The offering, expected in the second half of 2025, could raise up to $1 billion. The company is in discussions with Bank of America, Citi, JP Morgan, and Morgan Stanley to manage the IPO, which will include around $200 million in new shares, with the remainder being shares sold by existing investors.

Chief Financial Officer Bhavesh Keswani noted that the IPO proceeds will be used for debt repayment and business expansion. OfBusiness, which has raised over $800 million since its founding in 2015 by Asish Mohapatra and Ruchi Kalra, was last valued at approximately $5 billion in 2021. The company is now targeting a valuation between $6 billion and $9 billion. Key investors include SoftBank Group, Tiger Global, and Alpha Wave Global, holding a combined stake of around 33%.

India’s booming stock market and robust growth in manufacturing and construction sectors provide a favorable backdrop for the IPO. In FY 2024, OfBusiness reported a post-tax profit of $72.6 million on revenue of $2.3 billion. The company is also in the process of merging some subsidiaries to streamline operations ahead of the public offering.

Infratech startup Mytek Innovations raises Rs 6 crore debt

Garima Bansal
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Infratech startup Mytek Innovations raises Rs 6 crore debt

AI-based EPC and manufacturing marketplace Mytek Innovations has raised Rs 6 crore in a debt funding round, with plans to utilize the funds for expansion. Co-founded by Shivkumar Borade and Ashwajeet Wankhede in 2020, Mytek aims to streamline the contracting industry by integrating project elements such as workforce, machinery, tools, materials, and technology into a unified platform. This approach allows the company to ensure sales with minimal customer acquisition costs while maximizing operational efficiency and productivity.

Headquartered in Mumbai, Mytek leverages advanced AI tools, blockchain, data analytics, and sophisticated algorithms to meet industry-specific needs. The company currently focuses on civil and electrical services and has plans to expand into sectors such as automobile, manufacturing, textiles and garments, cosmetics, and more. Mytek reported a robust order book of Rs 251 crore at the end of FY24 and is targeting an order book of Rs 729 crore by FY25. The company also maintains a strong EBITDA margin of over 23% through its supplier and contractor applications, reflecting its commitment to driving high-performance outcomes in the contracting and manufacturing industries.

Air India Introduces New Airbus A350-900 for Delhi-London Route as Part of ‘New Air India Experience’

Garima Bansal
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Air India Introduces New Airbus A350-900 for Delhi-London Route as Part of ‘New Air India Experience’

Air India has launched the Airbus A350-900 on the Delhi-London Heathrow route as part of its ‘new Air India initiative,’ aimed at enhancing the passenger experience. This initiative introduces the ‘vista verse,’ offering upgraded amenities including new chinaware, tableware, glassware, bedding, and an enhanced entertainment system.

Key updates in the new Airbus A350-900 include:

  • A revamped cabin layout featuring full-flat beds in Business Class, a modernized Premium Economy, and new, comfortable seats in Economy Class.
  • Access to an inflight entertainment system offering 3,000 hours of content, with onboard Wi-Fi to be available soon.
  • Updated amenity kits for Business and Premium Economy passengers.
  • Sustainable bed linen and lightweight mattresses to enhance comfort.
  • A diverse food menu catering to both Indian and international tastes.

This new aircraft will replace the Boeing 777-300ER and Boeing 787-8 Dreamliner on 14 of the 17 weekly flights between Delhi and London, adding 336 extra seats per week on this popular route. Air India had introduced the A350 series earlier in the year for domestic and short-haul international routes, and this move represents an expansion of its use to longer international flights.

Mygate Expands into Consumer Devices with Launch of Smart Door Locks for Enhanced Home Security

Garima Bansal
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Mygate Expands into Consumer Devices with Launch of Smart Door Locks for Enhanced Home Security

Housing society management app Mygate has expanded into the consumer electronics market with the launch of Mygate Locks, a range of smart door locks aimed at enhancing home security with digital convenience. These smart locks enable users to manage home access remotely, offering keyless entry and features like remote unlocking via OTP, end-to-end data encryption, user management, real-time notifications, and integration with Mygate’s existing app for gated communities.

This move marks Mygate’s entry into the consumer device segment, broadening its product offerings beyond its core software solutions. The smart locks will be available to users across India, reflecting the company’s strategy to address the growing demand for smarter, more convenient home security solutions.

Abhishek Kumar, Mygate’s co-founder and CEO, expressed confidence in the new venture, projecting that the consumer device business could generate several hundred crore in revenue within the next two to three years. Kumar noted that Mygate identified a market opportunity for smarter home solutions, which led to the launch of Mygate Locks, expanding the company’s reach beyond gated communities.

Founded in 2016 by Abhishek Kumar, Vijay Arisetty, and Shreyans Daga, Mygate has grown significantly, with its community management app now serving over 4 million residents across 25,000 housing societies in India. The company reported a revenue of more than ₹100 crore in FY24, a 35% increase from ₹77 crore in FY23, primarily driven by subscriptions from resident welfare associations (RWAs) and advertising partnerships.

In addition to its foray into consumer devices, Mygate has also been diversifying into other sectors, including the insurance distribution business. The company recently obtained an aggregator license from the Insurance Regulatory and Development Authority of India (IRDAI) and partnered with Acko General Insurance to offer insurance products.

Sarvagram Eyes Over $50 Million in New Funding Round for Rural Credit Expansion

Garima Bansal
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Sarvagram Eyes Over $50 Million in New Funding Round for Rural Credit Expansion

Sarvagram, a Mumbai-based digital lending firm focused on rural households, is in advanced discussions to secure nearly $50 million in funding from both new and existing investors. The company’s valuation is projected to reach between $170 million and $200 million, nearly doubling since its last funding round in January 2023.

Key investors in this round include Peak XV, Apis Partners, Beams Fintech Fund, and Creation Investments Capital Management LLC. The funding is expected to comprise a mix of primary and secondary transactions, with existing investors such as Elevar Equity, Elevation Capital, Temasek, and TVS Shriram Growth Capital also participating.

Sarvagram operates through a franchisee model, with local franchisees known as Sarvamitras facilitating access to credit and non-credit products. The company runs 125 branches across Gujarat, Maharashtra, Karnataka, and Rajasthan, and plans to expand further into new states while deepening its presence in existing ones.

Founded in 2018 by Utpal Isser and Sameer Mishra, Sarvagram targets aspirational semi-urban and rural households, offering a variety of loans including gold, housing, personal, farm, and consumer durable loans. The firm uses a household-centric lending model, which assesses the economic potential of entire households rather than individual income.

Sarvagram Fincare Private Limited (SFPL), the company’s non-banking finance arm, has recently achieved profitability with a reported profit after tax of ₹7.6 crore for FY24. Meanwhile, Sarvagram Solutions Private Limited (SSPL), another group entity, has reduced its net loss by 65% to ₹11.6 crore for the same fiscal year, with assets under management growing 1.5 times to ₹1,166 crore.

Fampay Launches Namaspay, a UPI Payment App for Foreign Travelers in India

Garima Bansal
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Fampay Launches Namaspay, a UPI Payment App for Foreign Travelers in India

Fampay, under its parent company Trio, has launched a new unified payment interface (UPI) app called Namaspay, specifically designed for foreign travelers visiting India. This strategic move aims to explore new revenue streams for the company by tapping into the growing UPI ecosystem.

Namaspay is a dedicated app that allows travelers from various regions, including Europe, Africa, Australia, and the US, to make UPI-based payments in India. The app charges a one-time registration fee of ₹1,650, with additional charges of 4% for money loading and 1% for withdrawal. This makes Namaspay a viable payment option for tourists looking to avoid carrying cash while traveling in urban India, where UPI-powered apps have largely replaced cash transactions.

UPI, owned by the National Payments Corporation of India (NPCI), processed nearly 15 billion transactions in August, demonstrating its widespread acceptance across the country. Given that UPI is nearly universally accepted, an app like Namaspay provides a strong use case for foreign tourists who may prefer a seamless, cash-free payment method. Despite UPI’s vast usage, it has contributed minimally to the revenues of companies associated with it. Apps like Namaspay could potentially fill this profitability gap by targeting foreign travelers. Currently, Cheq is the only other notable competitor in this space, indicating a largely untapped market.

India received around 92 million foreign tourists in 2023, many of whom rely on cash or card payments. This presents a significant opportunity for UPI-based apps like Namaspay and Cheq to capture market share. However, experts caution that if the “UPI for foreigners” segment proves profitable, major players like PhonePe and Paytm may also introduce similar offerings, intensifying competition. The NPCI’s response to monetization efforts in this space could also shape the market dynamics, potentially setting new benchmarks.

Originally launched as a neo-banking platform targeting teens, Fampay pivoted to become a comprehensive UPI app, similar to PhonePe and Paytm. The company spent over ₹200 crore to build its fintech offering for users below 18 years of age but reported less than ₹15 crore in lifetime revenue despite raising $38 million in a Series A round. Nonetheless, Fampay has shown impressive growth, processing 52 million UPI transactions in July and reaching the top 10 in its category within a year of its pivot.

Namaspay is managed by Pehe through its subsidiary TrioTech, with Fampay’s co-founders, Sambhav Jain and Kush Taneja, listed as owners in regulatory filings. This latest venture indicates Fampay’s ongoing efforts to explore more use cases within the UPI ecosystem and potentially carve out a profitable niche by targeting foreign travelers.

Hindustan Composite Acquires Minority Stake in Swiggy Ahead of IPO

Garima Bansal
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Hindustan Composite Acquires Minority Stake in Swiggy Ahead of IPO

Hindustan Composite, an auto ancillary firm, has acquired a minority stake in Swiggy, an online food delivery company preparing for its initial public offering (IPO). This development follows a recent investment by Amitabh Bachchan’s family office in the Bengaluru-based company.

The board of Hindustan Composite has agreed to acquire 1,50,000 equity shares of Swiggy, amounting to an investment of ₹5.17 crore. This transaction was disclosed through a filing with the National Stock Exchange (NSE). The company’s net worth was reported at ₹9,810 crore (approximately $1.18 billion) as of March 2023. Hindustan Composite aims to complete this acquisition by November 30, 2024, with plans to reap both short-term and long-term benefits from the investment.

Swiggy has reportedly filed for an IPO via a confidential route in May. The company plans to raise up to ₹3,750 crore ($450 million) through a fresh issue of equity shares and an offer for sale aggregating up to ₹6,664 crore ($800 million) in its IPO. The company is expected to file draft IPO papers with SEBI shortly.

In preparation for its IPO, Swiggy launched its fifth ESOP (Employee Stock Ownership Plan) liquidity program worth $65 million in July. Over five such events, the company claims to have facilitated over ₹1,000 crore of ESOP liquidity, benefiting 3,200 employees.

Additionally, the Prosus-backed firm strengthened its leadership team last month with the appointment of a new Chief Executive Officer (CEO) and Chief Operating Officer (COO), signaling its readiness for the upcoming IPO.

Financially, Swiggy reported a revenue of ₹5,476 crore in the first three quarters of FY24, with a loss of ₹1,600 crore. The company has yet to file its audited financial results for FY24.

In comparison, Swiggy’s competitor, Zomato, is currently valued at $28.3 billion, according to stock exchange data. The Deepinder Goyal-led company reported ₹4,206 crore in revenue and ₹253 crore in profits for the first quarter of FY24.

Moneyview Secures $30 Million in Debt through Private Placement

Garima Bansal
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Moneyview Secures $30 Million in Debt through Private Placement

Lending platform Moneyview is set to receive Rs 250 crore (around $30 million) in debt through private placements, marking its first significant debt round in the last three years. The Bengaluru-based company’s board approved a special resolution to issue non-convertible debentures up to this amount, as per documents from the Registrar of Companies. This debt infusion is aimed at supporting the firm’s growth, working capital needs, and general corporate purposes.

Moneyview is also close to achieving unicorn status, with ongoing discussions to raise an additional $50-60 million. This funding round will involve both new and existing investors, including Apis Partners, Accel Partners, and Evolvence India. The Tiger Global-backed company has raised about $190 million so far, including a $75 million Series E round led by Apis Partners, valuing the firm at $900 million in its last equity round. Major stakeholders in Moneyview include Accel with a 22.28% share, Tiger Global holding 12%, and co-founders Puneet and Sanjay Agarwal collectively owning 24% of the company. Other significant investors include Ribbit Capital, Apis Partners, Winter Capital, and Evolvence.

Founded in 2014, Moneyview specializes in personal and home loans, credit cards, credit score viewing, motor insurance, and loans against property. The company also offers credit through its own NBFC, Whizdm Finance, and claims to have disbursed loans totaling Rs 12,000 crore over its decade-long operation. While FY24 financials are yet to be disclosed, Moneyview’s revenue from operations grew 2.6 times to Rs 577 crore in FY23, with profits surging 27 times to Rs 163 crore during the same period.

Indian Startups Secure $1.47 Billion in August 2024, Marking an 89% Year-on-Year Growth

Garima Bansal
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Indian Startups Secure $1.47 Billion in August 2024, Marking an 89% Year-on-Year Growth

In August 2024, startups raised approximately $1.47 billion in funding, representing an 89% increase from the same month last year when they secured $779 million across 123 rounds. Most of the funding this month came from early and late-stage rounds, totaling 86 rounds, according to data from Tracxn, a private market intelligence platform. In comparison, July 2024 saw startups raising around $718 million through 72 rounds.

From August 24 to August 30, the deal value climbed to $442.8 million across 23 rounds, up from $351 million raised during the same period last year through 32 rounds. Key deals in August include:

Zepto: The Mumbai-based quick commerce firm Zepto raised $340 million from investors like General Catalyst, Mars Growth Capital, and Epiq Capital, bringing its total funding in the past two months to $1 billion. Zepto’s valuation has now surged to $5 billion.

DMI Finance: Delhi-based digital lending company DMI Finance secured $334 million from Mitsubishi UFG Financial Group through its subsidiary MUFG Bank.

Bluestone: Jewellery retailer Bluestone raised Rs 900 crore, doubling its valuation to Rs 8,100 crore as it prepares for an initial public offering (IPO).

Ather Energy: Electric scooter manufacturer Ather Energy received $71 million in funding from the National Investment and Infrastructure Fund (NIIF), elevating its valuation to $1.3 billion. This makes Ather Energy the fourth unicorn in India this year and the second in the mobility sector after Rapido.

Neo Group: Wealth and asset management startup Neo Group raised around $47.7 million in a fresh equity funding round led by MUFG Bank and New York-based Euclidean Capital, with participation from Peak XV Partners.

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