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Jio Financial Services Ltd Secures DEA Nod to Raise Foreign Investment Cap to 49%; Expands Digital Insurance, Leasing, and Solar Financing Ventures

Garima Bansal
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Jio Financial Services Ltd Secures DEA Nod to Raise Foreign Investment Cap to 49%; Expands Digital Insurance, Leasing, and Solar Financing Ventures

Jio Financial Services Ltd has secured approval from the Department of Economic Affairs to raise its foreign investment cap to 49% of the paid-up equity share capital on a fully diluted basis. Currently, foreign investors hold a 17.55% stake in the company, which forms part of the 53% public float of shares.

Jio Financial, a non-banking entity demerged from Reliance Industries Ltd in July 2023, reported a 6% year-on-year decline in its consolidated net profit for the quarter ending June 2024, down to Rs 313 crore from Rs 332 crore. This decrease was primarily driven by a reduction in interest income, which fell 20% to Rs 162 crore, alongside a rise in operating expenses, particularly staff costs that tripled to Rs 39 crore.

In the first quarter of 2024, Jio Financial introduced new financial products, including loans against mutual funds and digital insurance for automobiles and two-wheelers. Additionally, the company entered the ship leasing market, with its first lease through Reliance International Leasing IFSC Ltd, in collaboration with Reliance Strategic Business Ventures Ltd. The firm is also expanding its reach by growing its business correspondents’ network to 16,000 outlets and advancing its asset management joint venture with BlackRock, with infrastructure and technology platforms nearing completion.

Goodveda Eyes 6X Revenue Surge with Ayurvedic Wellness Boom, Plans $1M Fundraise for Expansion

Garima Bansal
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Goodveda Eyes 6X Revenue Surge with Ayurvedic Wellness Boom, Plans $1M Fundraise for Expansion

Goodveda is a new generation D2C brand that deals with supplements, Ayurvedic cure, healthy snacks, and wellness programs currently in its growth stage with high potential in terms of revenue growth from the constantly increasing customer base especially, to meet the increasing demand for healthy snack options. Started in September, Goodveda has just raised Rs 2 crore in pre-seed capital. This year the company expects to mobilize an additional one million USD to fund its expansion operations.

At present Goodveda is earning a revenue of Rs 1 for 1,00,000 adults in India. million to Rs. 9 crore and is targeting at a turnover of Rs. 12 crore in the current financial year as claimed by the founder and MD, Abhishek Gaggneja. The monthly revenues of this brand is Rs 87 with a user base of over 20 thousand. 8 lakh in July 2024 The allocation of budget it is as follows, The demand for budget is as follows, Even in the June quarter it generated a business of Rs 1. 74 crore in revenue.

It is the vision of Goodveda to proudly be among the top nutritional food brand in India with the intention of diversifying its products and distribution. The D2C brand at the moment provides 12 SKUs, with major focuses on the diabetes, liver issues, obesity, and diseases related to the heart.

After the outbreak of the pandemic, people have started inclining towards being health conscious and there is a growing credibility towards Ayurveda, the traditional system of Indian healthcare. Ayurveda markets have expanded with new urbanization and modified lifestyles, Gaggneja pointed out, adding that investors have shown interest. Also, other programmes like Ayush Mark Certification which is managed by the Quality Council of India (QCI) and under the norms of GMP and WHO have gone on to enhance the consumer and investor confidence in Ayurvedic products.

Magicpin Cofounder Brij Bhushan Joins Prime Venture Partners as Venture Partner

Garima Bansal
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Magicpin Cofounder Brij Bhushan Joins Prime Venture Partners as Venture Partner

Brij Bhushan, co-founder of hyperlocal ecommerce startup Magicpin, has taken on a new role as a venture partner at Prime Venture Partners, an early-stage venture capital firm based in Bengaluru. In his new position, Bhushan will be a key member of the investment team, playing a significant role in making investment decisions, managing the firm’s portfolio, and assisting with fundraising efforts.

Bhushan emphasized that early-stage startups require more than just financial backing; they need dedicated team members who can guide them through the complexities of growing a business. Drawing from nearly a decade of experience as a founder, Bhushan expressed excitement about returning to the venture capital space, where he can use his expertise to support other entrepreneurs alongside a team committed to helping startups succeed.

Before co-founding Magicpin in 2015, which later attracted investment from Zomato, Bhushan served as Vice President at Nexus Venture Partners. He announced his departure from Magicpin in April 2023. The company had last secured $60 million in funding in November 2021, led by Lightspeed India and Zomato.

Amit Somani, Managing Partner at Prime Venture Partners, welcomed Bhushan, noting that his blend of strategic insight, operational excellence, and long-term vision is invaluable for building successful companies.

In addition to Bhushan’s appointment, Prime Venture Partners has promoted Gaurav Ranjan from Vice President to Principal-Investments. Ranjan has been instrumental in sourcing and evaluating around 2,000 startups and has worked closely with numerous early-stage portfolio companies, including Gallabox, OTO, Capital, Poshn, and HitWicket.

Founded in 2012, Prime Venture Partners has invested in over 50 startups across various sectors, including fintech, enterprise SaaS, consumer internet, edtech, healthcare, logistics, and electric vehicles. Its diverse portfolio features companies like WheelsEye, MyGate, Quizizz, PlanetSpark, Dozee, Zuper, and Niyo.

Zomato Set to Enter Movie and Event Ticketing with ₹2,048 Crore Paytm Acquisition

Garima Bansal
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Zomato Set to Enter Movie and Event Ticketing with ₹2,048 Crore Paytm Acquisition

Zomato to Acquire Paytm’s Movie Ticketing and Events Business for ₹2,048 Crore

Zomato, a major player in the food delivery industry, is set to acquire Paytm’s movie ticketing and events business in an all-cash deal valued at ₹2,048 crore. This acquisition positions Zomato to challenge the dominant leader in India’s entertainment ticketing market, BookMyShow. By entering the movie and event ticketing segment, which constitutes a significant portion of the going-out market, Zomato aims to diversify its offerings and enhance its presence in the entertainment sector.

Bluestone Secures ₹900 Crore in Pre-IPO Round

Jewelry retailer Bluestone has successfully raised ₹900 crore in a pre-IPO funding round, doubling its valuation to $970 million (approximately ₹8,100 crore). Backed by Accel, Bluestone is now preparing to file the draft red herring prospectus (DRHP) for its initial public offering with the stock market regulator this year, setting a benchmark for its valuation.

Ant Group Reaps 4X Return from Zomato Stake Sale

Ant Group, the Chinese e-commerce giant Alibaba’s affiliate, has generated significant returns by selling Zomato shares worth over ₹4,772 crore in two recent block deals. This brings the total proceeds from its stake sales in the food and grocery delivery company to ₹12,521 crore, marking a 4X return on investment.

Festive Season Boosts Sales for Quick Commerce Platforms

The onset of the festive season, starting with Rakshabandhan, has led to a surge in sales for quick commerce platforms such as Blinkit, Swiggy Instamart, and Zepto. These platforms are increasingly operating like broader online marketplaces, offering a wider range of products to meet the growing demand during this period.

Swiggy Valued at $11.5 Billion by Investor 360 One WAM

Swiggy, a leading food and grocery delivery company, has been valued at $11.5 billion by investor 360 One WAM (formerly IIFL Wealth Management) as of June, according to a recent investor presentation. The company is gearing up for an IPO, reflecting its strong market position and growth potential.

Micro VCs Gain Ground in Indian Venture Landscape

As the venture capital landscape in India evolves, new domestic funds and micro venture capital (VC) firms are emerging. Aviral Bhatnagar, who previously led enterprise software and AI investments for Venture Highway, has launched a ₹100 crore fund to support early-stage Indian startups, highlighting the growing interest in nurturing innovation at the grassroots level.

P2P Lending Platforms Seek RBI Guidance Amid New Regulations

The peer-to-peer (P2P) lending industry is expressing concerns over new regulations introduced by the Reserve Bank of India (RBI). Industry participants fear that some of the provisions may not be financially viable, potentially disrupting business operations. The Association of P2P Lending Platforms is seeking clarity and guidance from the RBI on implementing these new rules.

UPI Market Share Cap Delay Expected to Maintain Status Quo

A proposed 30% market share cap in the Unified Payments Interface (UPI) segment is likely to be delayed, according to industry executives. With only a few months remaining until the deadline, many UPI newcomers are adjusting their growth and investment strategies, anticipating that the cap may not be enforced as initially planned.

GST Authorities Intensify Scrutiny of Digital Payments

The rapid growth of digital payments has prompted increased scrutiny from tax authorities. The Directorate General of Goods and Service Tax Intelligence (DGGI) is closely monitoring online merchants to ensure compliance with GST regulations. Startups, payment aggregators, and payment gateways are working with the DGGI to track potential tax evasion cases.

Axio Secures $20 Million from Amazon to Power Next-Gen Fintech Lending and Credit Expansion

Garima Bansal
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Axio Secures $20 Million from Amazon to Power Next-Gen Fintech Lending and Credit Expansion

Fintech lending startup Axio has secured $20 million in equity funding from the Amazon Smbhav Venture Fund. This new capital is intended to fuel the company’s growth, scale its lending operations, expand the use cases for checkout finance, and introduce a broader range of credit products to support customers throughout their financial journeys.

This investment comes at a time when equity deals are gaining traction in the digital lending sector, particularly among micro, small, and medium enterprises (MSMEs). Axio, formerly known as Capital Float, operates with a non-banking finance company (NBFC) license, offering loans through its own resources and via co-lending partnerships with banks and other NBFCs. The Bengaluru-based company has reached approximately 10 million credit customers, with an annualized disbursal rate of $1 billion.

Prior to this funding round, Axio had raised $137 million in equity and $671 million in debt. In 2021, the company secured $50 million in equity funding led by Lightrock India, reaching a post-money valuation of $201 million. The company’s investors also include Peak XV, Elevation Capital, and Ribbit Capital.

Axio’s co-founders, Sashank Rishyasringa and Gaurav Hinduja, stated that this investment will help the company scale its loan book, enhance its checkout finance offerings, and expand credit products for existing customers. The company aims to unlock credit access for an additional 200 million customers across India by combining product innovation with strong underwriting and risk controls.

The Amazon Smbhav Venture Fund, launched in 2021 with a $250 million corpus, initially focused on agriculture and healthcare sectors but has since expanded to include direct-to-consumer (D2C) brands, fintech, and gaming sectors. Its portfolio includes brands like Acko, Cashify, Fitterfly, and M1xchange. Amazon’s vice president, Abhijeet Muzumdar, expressed confidence in Axio’s ability to provide accessible and responsible digital credit solutions in India, noting that the investment aligns with their long-term commitment to supporting innovative financial services while maintaining robust risk management.

Swiggy Eyes $15 Billion Valuation in Blockbuster IPO to Fuel Quick Commerce Expansion

Garima Bansal
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Swiggy Eyes $15 Billion Valuation in Blockbuster IPO to Fuel Quick Commerce Expansion

Indian food delivery giant Swiggy, backed by SoftBank, is preparing for an initial public offering (IPO) targeting a valuation of approximately $15 billion. The company aims to raise between $1 billion and $1.2 billion, making it one of the largest IPOs in India this year.

Swiggy competes directly with Zomato in India’s online food delivery market, and both companies have invested heavily in the emerging quick commerce sector, where groceries and other products are delivered within 10 minutes. Swiggy received shareholder approval in April to raise up to $1.25 billion through the IPO. The company is expected to receive regulatory approval from Indian markets within the next month, after which it will file a public prospectus.

Although Swiggy is targeting a $15 billion valuation, the final figure may vary depending on market conditions. Swiggy has not commented on the matter, citing it as market speculation. The company was last valued at $10.7 billion during a funding round led by Invesco in 2022.

Swiggy plans to use the funds from the IPO to expand its quick commerce service, Instamart, and to establish additional warehouses to enhance its competitive edge against Zomato. Currently, Zomato has a market valuation of around $28 billion, with its shares more than doubling since its 2021 listing.

Quick commerce is rapidly growing in India, with Goldman Sachs reporting that this segment accounted for $5 billion, or 45%, of India’s $11 billion online grocery market as of April. The market share of quick commerce is expected to rise to 70% by 2030.

While Swiggy’s food delivery business is profitable, its Instamart grocery delivery service is still operating at a loss. The company currently operates around 550 grocery warehouses across 35 Indian cities, highlighting its significant investment in expanding this service.

Vistara and Air India Merger Set to Take Off with Final FDI Approval from Singapore Airlines

Garima Bansal
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Vistara and Air India Merger Set to Take Off with Final FDI Approval from Singapore Airlines

Singapore Airlines gets final approval to invest in Vistara’s holding company Air India’s merger. The final approval required for foreign direct investment from Singapore Airlines is expected shortly. The final approval of foreign direct investment will enable Singapore Airlines to get a 25.1 percent holding in the merged airline. Earlier Singapore Airlines had a 49 percent holding in Vistara. SIA Investment of ₹2,059 will be worth crore. The merged airline expects Tata Group to hold a 74.9 percent stake. The merged airline has already received all necessary regulatory approvals from the CCI and DGCA . After FDI clearance is granted, the merged airline will start to tell passengers about the new flight details of Air India particularly them who had bookings on Vistara after the merger.

According to sources, the merger could take place following Diwali on November 1 as it is a busy travel season. Between Diwali and fog in the last week of December is seen as an ideal period to clear some initial bumps that might arise from mergers.

The 70 aircraft in Vistara’s fleet will retain their existing branding until they next go under C-check, when the interiors and exteriors of these airplanes would be installed or painted to Air India standards. AMBIENCE PROPOSITION: Vistara grounded its planes only to repaint them (a better cabin experience than Air India’s older airplanes).

Key steps in the merger process have already been implemented, including the transfer of Vistara’s frequent flyer miles to Air India’s loyalty program and the relocation of several Vistara employees to Air India’s new headquarters in Gurgaon. Concerns about potential downgrades of Vistara passengers from premium classes to economy on Air India flights have been raised, but such occurrences are expected to be rare.

Initially, Air India’s management considered delaying the merger until its fleet was upgraded, allowing Vistara to continue operating as a premium carrier. However, this plan was shelved due to concerns from Vistara employees about the filling of key positions in the merged airline by Air India officials. Consequently, the merger is now set to proceed before the end of the year, even as Air India’s broader transformation is still ongoing.

Loan Kuber Secures $3.5 Million to Boost Mortgage Lending Operations

Garima Bansal
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Loan Kuber Secures $3.5 Million to Boost Mortgage Lending Operations

Mortgage lender LoanKuber has successfully raised $3.5 million in a recent funding round, which was led by Singapore-based venture capital firm TRTL Ventures and included participation from existing investor Inflection Point Ventures. The round, consisting of both equity and debt, also attracted investments from Auxano, LetsVenture, Mavuca Capital, and several prominent angel investors.

With this latest funding, LoanKuber’s post-investment valuation has reached $27 million. The company plans to use the new capital to expand its assets under management (AUM) from Rs 93 crore to Rs 180 crore over the next year. Additionally, the funds will support the enhancement of LoanKuber’s technological infrastructure and the strengthening of its leadership team.

Founded in 2017 by Saurabh and Saumya Nagpal, LoanKuber is a non-banking finance company (NBFC) that specializes in providing mortgage loans to micro, small, and medium enterprises (MSMEs) and semi-skilled professionals, particularly in underserved regions. The company offers loans ranging from Rs 3 lakh to Rs 8 lakh, with 70% of its customers having a monthly household income of less than Rs 50,000.

LoanKuber aims to use this fresh infusion of capital to scale its operations, open new branches, and deepen its presence in semi-urban communities in Delhi, Uttar Pradesh, and Haryana. By the end of the fiscal year, the company is targeting an annual revenue of Rs 38 crore and a projected net profit of Rs 6 crore.

This latest funding round brings LoanKuber’s total capital raised to over $13 million. In 2023, the company secured $2 million in funding from Inflection Point Ventures.

India’s First Reusable Hybrid Rocket RHUMI-1 Takes Flight, Pioneering Eco-Friendly Space Technology

Garima Bansal
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India’s First Reusable Hybrid Rocket RHUMI-1 Takes Flight, Pioneering Eco-Friendly Space Technology

India for the first time successfully test fired a reusable hybrid rocket called ‘RHUMI-1,’ built by Tamil Nadu based firm, Space Zone India in association with Martin Group. It was successfully launched from Thiruvidandhai in Chennai which was a key turn in the Indian space missions.

RHUMI-1 was planned to lift to a suborbital orbit 3 Cube Satellites and 50 PICO Satellites with the help of mobile launcher. These satellites are to be used to collect data for use in global warming and climate change research. First, RHUMI-1 incorporates a dual-mode propulsion system which uses generic propellant and an electrically fired parachute release mechanism. There are no pyrotechnics used in the rocket, itself, nor is there any TNT, making for a safer, green launch.

It was spear headed by the enthusiast and the founder of Space Zone India Anand Megalingam with the guidance of Dr. Mylswamy Annadurai, the former Directorate of ISRO Satellite Centre (ISAC). The Multipurpose RHUMI-1 rocket has integrated the features of both liquid and solid fuelled rocket making the operation smooth and less costly.

In 2023, Space Zone India initiated an educational programme known as ‘Dr. APJ Abdul Kalam Students Satellite Launch’ in which more than 2500 students from government, tribal and public schools participated in the design and construction of a student satellite launch vehicle which is enabled to carry 150 PICO satellite research experiment cubes.

ETtech Deals Recap: Startup Funding Skyrockets 505% YoY, Hitting $289 Million This Week

Garima Bansal
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ETtech Deals Recap: Startup Funding Skyrockets 505% YoY, Hitting $289 Million This Week

Startups raised approximately $288. 7 million between August 17 and August 23, 2024, this being a big 505 percent increase in their custom. Raise the gross profit by 3% in comparison with the same period of the year 2012. This week’s total also follows a 21. From the previous week funding of $238, 2% increase in funding. 1 million. This funding has been raised through 16 such rounds as against 26 such rounds during the same period last year when $47. The total funding since the start of the project is approximately $7 million.

The biggest funding of the week was by Bluestone jewelery retailer that raised Rs 900 crore taking its total value to Rs 8,100 crore. Bluestone will be filing its DRHP with the stock market regulator later this year.

Other significant funding rounds included:Other significant funding rounds included:

These funding activities can well be used to underscore the fact that the greenfield is filled with a host of burgeoning funding activities happening in the Indian startup ecosystem, particularly in retail, technology, and healthcare domain.

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