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Karnataka-Backed Startups Drive Semiconductor Innovations with SFAL Support, Says IT/BT Minister Priyank Kharge

Garima Bansal

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August 29, 2024

Karnataka-Backed Startups Drive Semiconductor Innovations with SFAL Support, Says IT/BT Minister Priyank Kharge

Karnataka’s IT/BT Minister Priyank Kharge announced that three Bengaluru-based startups have developed groundbreaking technologies with the backing of the Semiconductor Fabless Accelerator Lab (SFAL), a state-funded center of excellence for fabless semiconductors.

Calligo Technologies has created a POSIT-enabled semiconductor chip aimed at enhancing performance and accuracy in critical mathematical computations. This technology, which promises improved accuracy, network bandwidth, and storage utilization while reducing power consumption, is expected to set new standards in computing. It has potential applications in stock exchange computations, medical drug research, and artificial intelligence. Calligo Technologies plans to showcase an accelerator card based on this chip at the Supercomputing Conference (SC’24) in the US later this year.

Morphing Machines, another startup supported by SFAL, has developed “Redefine,” a reconfigurable processor designed to handle emerging workloads in sectors such as telecom, AI/ML, healthcare, and high-performance computing. Redefine is India’s first processor of its kind and has received $2.76 million in seed funding from Speciale Invest.

AB Circuits and Research Labs (ABCRL) has introduced “TireSynapse,” the industry’s first tire monitoring ASIC with integrated Bluetooth, which offers advanced features such as tire wear prediction, road condition detection, load monitoring, and wheel alignment measurement. ABCRL is close to achieving a major milestone with plans to release its first chip soon, marking a significant step towards becoming a leading provider of smart automotive electronics.

SFAL has been instrumental in fostering the growth of fabless semiconductor startups in Karnataka, incubating 43 startups and supporting over 200 innovations, while creating 800 high-skill jobs. Kharge emphasized that Karnataka leads in semiconductor innovation due to its significant pool of design talent, with 70% of India’s semiconductor design talent based in the state.

In addition, SFAL-supported companies have raised Rs 114 crore, achieving a combined valuation of Rs 500 crore. Kharge highlighted that India’s electronics market is expected to reach $400 billion within a year, with semiconductors alone accounting for $64 billion. Jitendra Chaddah, India head of GlobalFoundries, added that many SFAL-backed firms are successfully developing products for global and local markets and are attracting venture capital investments.

Medikabazaar Appoints Dinesh Lodha as Group CEO Amid Leadership Reshuffle and Financial Audit Findings

Garima Bansal

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August 29, 2024

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Medikabazaar Appoints Dinesh Lodha as Group CEO Amid Leadership Reshuffle and Financial Audit Findings

Medikabazaar, a business-to-business medical supplies startup, has appointed Dinesh Lodha as its new Group Chief Executive Officer. Lodha, who previously served with TI Medical, replaces co-founder Vivek Tiwari, who stepped down amid allegations of financial discrepancies within the company. Tiwari will now take on a board role following a financial audit conducted by PwC, which revealed issues such as discrepancies in revenue recognition processes.

Founded in 2014 by Vivek Tiwari and Ketan Malkan, Medikabazaar has undergone several management changes recently. In July 2023, Malkan, who served as the Chief Financial Officer, transitioned to a board role and was replaced by Raman Chawla, a former finance executive from companies like Campus Activewear and Reckitt Benckiser. Additionally, Ravishankar Gopalakrishnan, former CFO of Jet Airways, was appointed as the Group Chief Operating Officer and a whole-time director in April.

Lodha brings experience in managing B2B and B2C operations across the FMCG and healthcare sectors, including roles at Healthium, TI Medical, GE Healthcare, and Samsung. He aims to strengthen Medikabazaar’s global collaborations with leading hospitals and healthcare professionals, positioning the company as a key partner for medical procurement. The board also includes representatives from key investors such as Creaegis, Ackermans & van Haaren, and HealthQuad.

TI Medical, Lodha’s previous employer, is a joint venture between Tube Investments and Premji Invest, the family office of Wipro founder Azim Premji.

DPI-Focused Indian Startups Reach $100 Billion Valuation: Nandan Nilekani

Garima Bansal

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August 29, 2024

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DPI-Focused Indian Startups Reach $100 Billion Valuation: Nandan Nilekani

Infosys co-founder and chairman Nandan Nilekani said that startups using DPI platform are worth $100 billion in aggregate. At the Global Fintech Fest in Mumbai, Nilekani said the aim of putting together platform as Aadhaar and UPI was to lay a basic form of ‘tracks’ or rails on which the private sector and entrepreneurs can run.

Mobile Mahence Nilekani, who was instrumental in the making of Aadhaar and UPI, has predicted the world of finance to be in Finternet. As per him, Finternet will be more human centric and integrated where all forms of assets are interconnected through a similar structure. He said that the existing financial systems are not able to address user need for number of choices and control.

Finternet, in its turn, is designed to unite all the forms of assets, such as land and properties, bonds and financial investment, art and paintings under one tokenized platform. Relative to the traditional approaches, this approach will allow for increased participation and will give the users control over a diverse range of the asset classes. Nilekani called it as a place to own and control assets, content and non-fungibles, and to register and authenticate assets such as land and financial instruments.

However, with the help of his co-authors Pramod Varma, Siddharth Shetty, Agustin Carstens the paper on the Finternet concept with the participation of Nilekani and the team of the Bank for International Settlements was released in April 2024.

Laiqa Wellness Raises Rs 15 Crore from IvyCap Ventures to Expand Tech-Driven Femtech Solutions

Garima Bansal

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August 28, 2024

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Laiqa Wellness Raises Rs 15 Crore from IvyCap Ventures to Expand Tech-Driven Femtech Solutions

Laiqa Wellness, a femtech startup based in Gurugram, has secured Rs 15 crore in funding from IvyCap Ventures, an early-stage venture capital firm. This investment will be used to enhance the company’s technology-driven solutions focused on personalized hormonal health monitoring, point-of-care assessments, and AI-powered recommendations.

Founded in August 2023 by Monica Bindra, Harmeet Bindra, and Meenakshi Singh, Laiqa Wellness aims to address women’s wellness by offering personalized care to manage hormonal imbalances. The company’s platform helps users tackle a range of conditions such as PCOS, thyroid disorders, insulin resistance, sleep issues, and other lifestyle-related health concerns. The Laiqa app provides tools like cycle-synced diets, fitness routines, and herbal remedies, enhancing the wellness journey for women.

The cofounders emphasized that this funding supports their vision of creating accessible tools and care for women, enabling them to prioritize their health. They plan to expand their community reach and continue innovating sustainable products and services that significantly impact women’s lives.

Vikram Gupta, Founder and Managing Partner of IvyCap Ventures, highlighted Laiqa’s unique approach of integrating modern science with Ayurveda, which distinguishes it in the market. IvyCap Ventures, founded in 2011, has invested in various sectors, including healthtech, consumer tech, fintech, and edtech. The firm recently announced the final close of its third fund at Rs 2,100 crore, with plans to support around 25 early-stage startups, including Laiqa Wellness and healthcare financing startup Icanheal.

Kreedo Secures $4 Million in Series A Funding Round

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Garima Bansal

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August 28, 2024

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Kreedo Secures $4 Million in Series A Funding Round

Kreedo, an edtech platform focused on early childhood education, has secured $4 million in a Series A funding round co-led by Heritas Capital, based in Singapore, and UBS Optimus Foundation. The round also saw participation from existing investors including Gray Matters Capital, 1Crowd, The Chennai Angels, and The Joka Angel Network.

The funds will be used to enhance Kreedo’s product offerings and expand its presence across new regions in India. Founded in 2012 by Mridula Shridhar and VK Manikandan, Kreedo partners with affordable private schools and preschools to revolutionize early years education. The platform’s unique 6T learning framework is built around Kreedo Activity Labs, which provides a structured environment focused on play-based learning.

Targeting children aged 3 to 8 years (Nursery to Grade 2), Kreedo aligns with the play-based learning guidelines prescribed in India’s National Education Policy (NEP) 2020. The platform offers a comprehensive solution that helps schools enhance learning outcomes significantly.

Over the past two years, Kreedo has doubled its revenue and expanded its reach from 700 to 1,700 schools, impacting over 140,000 children—up from 55,000 previously. Moving forward, Kreedo plans to extend its offerings to grades 3-5 and further develop Practico, its digital home learning platform. Additionally, the company will scale a specialized pre-primary teacher training franchise program aimed at creating a pool of job-ready, qualified teachers for its partner schools and the broader early education market.

SME IPOs Surge in Popularity with Record Oversubscriptions, Outperforming Mainboard IPOs in Indian Market

Garima Bansal

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August 28, 2024

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SME IPOs Surge in Popularity with Record Oversubscriptions, Outperforming Mainboard IPOs in Indian Market

The recent 400-times oversubscription of Resourceful Automobile’s ₹12-crore SME IPO, a two-wheeler dealer with just two Yamaha showrooms and eight employees, highlights a growing trend in the Indian primary market where such oversubscriptions are becoming increasingly common.

According to data from Prime Database, 152 SME IPOs have been launched in 2024, with an average issue size of ₹33 crore and an average oversubscription of nearly 200 times. Notably, 18 of these IPOs were oversubscribed by more than 400 times. For example, Hoac Foods India‘s ₹5-crore IPO was oversubscribed 1,963 times in May, and Magenta Lifecare‘s ₹6.6-crore IPO saw over 1,000 times oversubscription.

In comparison, for every mainboard IPO, around three SME IPOs have been launched annually over the past three years. This year, 45 mainboard IPOs have been introduced, with an average issue size of ₹1,074 crore and an average oversubscription of 43 times.

In 2023, for instance, 182 SME IPOs were launched with an average oversubscription of 86 times, average listing gains of 36%, and average stock returns of 216%. In contrast, 57 mainboard IPOs saw an average oversubscription of 32 times, with listing gains of 29% and similar post-listing returns of 216%.

Moreover, the average listing gains for SME IPOs have been steadily increasing, rising from 2.2% in 2019 to an impressive 74% in 2024. The combination of attractive listing gains and strong post-listing performance with relatively low investment has kept investor interest in SME IPOs high, despite the small size and nature of the underlying businesses.

NSE to Reapply for NOC to Move Forward with ₹30,000 Crore IPO

Garima Bansal

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August 28, 2024

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NSE to Reapply for NOC to Move Forward with ₹30,000 Crore IPO

The National Stock Exchange (NSE) is preparing to once again seek approval from the Securities and Exchange Board of India (SEBI) to move forward with its long-awaited initial public offering (IPO), according to sources familiar with the situation. The exchange’s IPO plans have been delayed due to ongoing regulatory issues, including the co-location case.

During its recent annual general meeting, shareholders discussed refiling for the no-objection certificate (NOC) with SEBI. The NSE can only proceed with filing the draft IPO documents after securing this NOC.

The NSE initially filed its draft red herring prospectus (DRHP) in 2016, but SEBI returned it in 2019, requiring the exchange to refile after resolving the co-location investigation. This matter is currently pending before the Supreme Court, with the next hearing scheduled for September 3.

In response to a recent writ petition regarding the delay of the NSE IPO, SEBI informed the Delhi High Court that the exchange has not yet submitted a new request for an NOC. NSE’s previous attempt to seek approval for the listing in June 2022 was rejected due to lapses in governance, technology, surveillance, and trading practices.

The NSE’s IPO is anticipated to be the largest in India’s history. Shares of the NSE are currently trading at ₹6,000 each in the unlisted market, nearly double their value from a year ago. At this price, the exchange’s market capitalization would reach approximately ₹3 lakh crore.

If the exchange decides to sell 10% of its equity in the IPO, the offering size could be around ₹30,000 crore. This would surpass Life Insurance Corporation’s ₹21,008 crore IPO in May 2022, which is currently the largest in India, followed by Paytm‘s ₹18,300 crore IPO in November 2021.

Some of the major shareholders in NSE include Life Insurance Corporation (LIC) with 7.2%, Stock Holding Corporation (4.44%), SBI Capital Markets (4.33%), State Bank of India (3.23%), and Temasek Holdings (5%).

For the fiscal year ending March 31, 2024, NSE reported a net profit of ₹8,306 crore, marking a 13% increase from the previous year. The exchange’s revenue grew by 25% to ₹14,780 crore compared to FY23.

Additionally, NSE received SEBI approval to increase its authorized share capital, allowing it to issue bonus shares. In May, the exchange announced a four-for-one bonus issue along with a ₹90 per share dividend. However, IIFL Securities noted that SEBI’s proposed norms to curtail heightened Futures & Options (F&O) trading could significantly impact NSE’s turnover, potentially reducing trading volumes by nearly one-third and leading to a projected 20-25% reduction in FY26 estimated earnings per share (EPS).

HSBC Increases Funding Pool for Tech Startups to $600 Million, Up from $250 Million

Garima Bansal

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August 28, 2024

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HSBC Increases Funding Pool for Tech Startups to $600 Million, Up from $250 Million

HSBC India has significantly increased its funding program for local tech startups to $600 million, reflecting the bank’s confidence in the sector’s growth and the increasing demand for global exposure among Indian firms. This expansion builds on HSBC’s strategy of targeting mid-market companies in India, specifically those with turnovers between ₹500 crore to ₹4,000 crore ($50-500 million) by Ajay Sharma, MD and head, commercial banking, HSBC India.

The funding initiative, which began in 2019 with a $50 million allocation, was raised to $250 million in 2022 and now stands at $600 million. Of this current corpus, 50% has already been allocated. A key factor driving this expansion is the Indian government’s investment in digital infrastructure and the widespread availability of affordable data, which has fueled the growth of tech startups.

The funding covers various sectors, including B2B commerce, consumer tech such as used car platforms, fintech, direct-to-consumer, agritech, logistics, and electric vehicles. HSBC India engages closely with venture capital providers, participating in Series A, B, and C funding rounds, helping startups transition from experimental phases to more established business operations.

Despite the funding challenges faced by startups over the past 18 months, HSBC’s portfolio has remained resilient. Unlike equity funding, HSBC focuses on providing working capital finance, helping startups manage operational needs during growth phases. The bank’s strategy aligns with companies that are expanding internationally, leveraging its vast transaction banking capabilities to support cross-border operations and foreign exchange requirements.

HSBC aims to continue expanding its funding for tech startups, maintaining growth in its SME portfolio despite broader economic uncertainties. The bank’s commitment to the sector underscores its belief in the transformative potential of Indian startups and their increasing role in the global market.

Wealthy Investors Bet Big on Quick-Commerce: Amitabh Bachchan and Raamdeo Agrawal Acquire Stakes in Swiggy and Zepto

Garima Bansal

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August 28, 2024

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Public market-bound new-age companies, especially those in the quick-commerce sector, are becoming top investment choices for wealthy individuals. Notably, the family office of Bollywood superstar Amitabh Bachchan has acquired a small stake in Swiggy by purchasing shares from the food delivery and quick-commerce company’s employees and early investors.

Motilal Oswal Financial Services chairman Raamdeo Agrawal has also invested in Swiggy at a time when quick commerce is experiencing a surge in fundraising. Agrawal further expanded his portfolio by acquiring a stake in Zepto during its recent $665 million funding round.

Although the exact investment amounts by Bachchan and Agrawal remain undisclosed, sources indicate that these are substantial investments for individual investors. The transactions were reportedly based on a valuation of approximately $10-11 billion for Swiggy, highlighting the rapid growth and promising future of the quick-commerce sector.

Agrawal’s investments in both Swiggy, which operates the Instamart quick-commerce platform, and Zepto reflect the strong growth potential seen in this industry. The rising popularity of quick-commerce platforms has attracted significant attention from investors, fueled by the success of Swiggy’s rival, Zomato, and its Blinkit platform.

Both Swiggy and Zepto are reportedly preparing for public listings, with Swiggy in advanced stages of planning and Zepto outlining its IPO ambitions for the coming years. The rapid expansion and innovation within the quick-commerce sector have made these companies attractive bets for investors looking to capitalize on the evolving market dynamics.

VerSe Innovation Acquires Valueleaf Group to Boost Digital Marketing Capabilities and Drive $100 Million Revenue Growth

Garima Bansal

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August 28, 2024

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VerSe Innovation Acquires Valueleaf Group to Boost Digital Marketing Capabilities and Drive $100 Million Revenue Growth

VerSe Innovation, the parent company of DailyHunt and Josh, announced the acquisition of digital marketing solutions provider Valueleaf Group. The deal, a cash-and-stock transaction, aims to significantly boost VerSe’s growth, with a projection of an additional $100 million in revenue and a 10% EBITDA margin by FY25.

VerSe cofounder Umang Bedi stated that the acquisition would establish an India-centric ad retargeting and exchange platform. As of June 30, Valueleaf had already reached a Rs 732 crore annual recurring revenue (ARR) with nearly a 10% EBITDA margin. This acquisition is part of VerSe’s broader strategy to enhance its portfolio, which has included previous acquisitions such as New York-based digital magazine store Magzter.

Valueleaf, a Bengaluru-based company, brings extensive performance data and established supply-side integrations, including connections with over 50,000 websites, 1,000 apps, and various smartphones. It also offers vertical-specific solutions like Buddy Loan for financial services, Whistle Feed for small businesses, and Share and Earn, designed to drive performance marketing for digitally native companies.

Founded by Bedi and Virendra Gupta, VerSe has raised over $1.4 billion in funding, including an $805 million round in 2022 led by the Canada Pension Plan Investment Board, with participation from Ontario Teachers’ Pension Fund, Luxor Capital, Sumeru Ventures, Sofina Group, and Baillie Gifford. The company has also returned approximately $450 million in secondary exits to early investors.

Satish Saraf and Srikanth Bureddy, cofounders of Valueleaf, expressed their excitement about integrating their data-driven strategies with VerSe’s platforms to deliver superior outcomes for brands.