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Orios Venture Partners Delays Third Fund Closure Amid Economic Uncertainty

Garima Bansal
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Orios Venture Partners Delays Third Fund Closure Amid Economic Uncertainty

India-based venture capital firm, Orios Venture Partners, has delayed the final close of its third fund for a second time, now targeting the end of 2024. Initially aiming to raise $200 million, the fund has so far secured approximately $100 million from investors. This delay highlights the difficulties VC firms face in securing commitments from investors during uncertain times.

Founded in 2013 by Rehan Yar Khan and Anup Jain, Orios Venture Partners focuses on early-stage tech companies in India. The firm has invested in notable startups like PharmEasy and GoMechanic and manages over $300 million across its funds. The repeated delays in closing the third fund are influenced by the global economic slowdown, rising interest rates, and inflation, making investors cautious.

The delay in closing the third fund is likely to impact the startup ecosystem in India, as Orios has been a significant early-stage funding provider. With the closure pushed back, it could become difficult for startups to secure funding to scale up operations, potentially slowing the growth of India’s tech startup sector.

Despite these challenges, Orios remains optimistic and continues to support its portfolio companies while actively seeking new investment opportunities. The firm is in constant dialogue with existing investors to reassure them about its strategy and the potential of the Indian startup ecosystem, focusing on resilient sectors like fintech, health tech, and consumer tech.

Orios Venture Partners’ decision to delay the closure of its third fund reflects the broader market sentiment, with venture capital firms worldwide facing similar issues. Geopolitical tensions, the aftermath of the COVID-19 pandemic, and ongoing economic uncertainties have contributed to this cautious approach. While it poses risks for startups seeking funding, the delay also shows Orios’ commitment to raising the right amount under favorable conditions, navigating these challenges carefully to continue supporting innovation and growth within the startup ecosystem.

Zomato Completes Liquidation of Slovakian Subsidiary Amid Strategic Focus on Core Markets

Garima Bansal
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Zomato Completes Liquidation of Slovakian Subsidiary Amid Strategic Focus on Core Markets

Zomato, a prominent player in the foodtech industry, has announced the dissolution of its subsidiary in Slovakia effective July 12, 2024, marking the completion of liquidation proceedings that began ten months ago. This decision was disclosed in a recent stock exchange filing.

Last September, the Gurugram-based company initiated liquidation proceedings for its Slovakian subsidiary, citing its non-operational status and minimal financial impact on Zomato’s overall turnover and revenue. The subsidiary, with a net worth of Rs 2.2 lakh, had negligible active operations, contributing less than 0.0001% to the company’s total net worth.

Zomato’s strategic focus on its core market of India prompted the withdrawal from smaller markets, including Slovakia, as part of broader plans announced in 2016 to scale back operations in several countries, such as the US, the UK, Brazil, Italy, and Slovakia. Notably, Italy and Slovakia were identified as non-focus markets due to the absence of local operational teams.

In addition to Slovakia, Zomato also liquidated subsidiaries in Portugal and New Zealand last year. The company’s quarterly earnings report highlighted its intention to establish an ESOP pool comprising 18.26 crore employee stock options, representing approximately 2% of its fully diluted outstanding share capital.

During the financial year 2023-24, Zomato’s standalone revenue from operations saw a significant 71% year-on-year increase to Rs 12,114 crore, driven by strong performances in food delivery and quick commerce segments. The company reported a net profit of Rs 351 crore for FY24. Moreover, its quick commerce division achieved positive adjusted EBITDA in March and aims to expand its services, targeting up to 1,000 stores by March 2025.

Adani Wilmar Expands Chemicals Footprint with Omkar Chemicals Acquisition

Garima Bansal
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Adani Wilmar Expands Chemicals Footprint with Omkar Chemicals Acquisition

Adani Wilmar, a major player in India’s FMCG sector through its joint venture with Wilmar Group of Singapore, has announced the acquisition of a 67% stake in Omkar Chemicals Industries for Rs 56 crore. The company is well-known for its diverse product portfolio, including edible oils, wheat flour, rice, pulses, chickpea flour (besan), and sugar, along with its significant presence in the oleochemicals market.

In a recent regulatory filing, Adani Wilmar finalized a share subscription and purchase agreement to secure the majority stake in Omkar Chemicals Industries Pvt Ltd, a specialist in the chemicals sector. The transaction, valued at Rs 56.25 crore and payable in cash, is expected to be completed within the next 3-4 months.

Omkar Chemicals operates a manufacturing facility in Panoli, Gujarat, with an annual production capacity of approximately 20,000 tonnes of surfactants. The company is also expanding its capabilities to include additional product lines.

The specialty chemicals market presents a lucrative opportunity across various sectors, such as home and personal care, food additives, plastics, polymers, agrochemicals, and lubricants. Adani Wilmar currently engages in this sector through third-party manufacturing and imports from Wilmar’s global plants. The acquisition of Omkar Chemicals will enable Adani Wilmar to establish local manufacturing capabilities and strengthen its position in this competitive market.

Saumin Sheth, Chief Operating Officer of Adani Wilmar, highlighted the strategic importance of the acquisition, emphasizing that it would enhance Adani Wilmar’s production capabilities and enable the company to better meet customer needs. The focus is on expanding the product range with Wilmar’s diverse portfolio, aligning with strategic objectives in downstream derivatisation of oleochemicals.

Through this acquisition, Adani Wilmar aims to consolidate its presence in the specialty chemicals sector and expand its offerings in the Indian market, leveraging synergies to drive growth and innovation.

Adani Group to Invest Additional Rs 20,000 Crore in Vizhinjam International Seaport, Aiming for 2028 Completion

Garima Bansal
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Adani Group to Invest Additional Rs 20,000 Crore in Vizhinjam International Seaport, Aiming for 2028 Completion

The Adani Group plans to invest an additional Rs 20,000 crore to complete the remaining three phases of the Vizhinjam International Seaport, India’s first transshipment port. This announcement was made by Karan Adani, Managing Director of Adani Ports and Special Economic Zone Ltd (APSEZ), after the official reception ceremony for ‘San Fernando,’ the first mothership to dock at Vizhinjam. He highlighted that the port will reduce logistics costs for Indian manufacturers by 30 to 40%.

The mothership arrived on Thursday at the port, developed by APSEZ under a public-private partnership model at an approximate cost of Rs 8,867 crore. Adani stated that the additional investment would enable the completion of the remaining phases in one go. He emphasized that the company’s primary focus is on reducing transit costs for manufacturers rather than gaining market share.

Adani acknowledged the challenges faced during the project but credited the support from the local community, government, and political parties for the successful completion of the first phase. He noted that securing enough stones for the breakwater construction was initially a challenge, but this issue has now been resolved, allowing for the completion of the remaining phases.

Vizhinjam port, with its strategic location, is expected to play a crucial role in India’s maritime sector as the first transshipment port in the country. The project received formal support from Kerala Chief Minister Pinarayi Vijayan, who welcomed the 300-meter-long ‘San Fernando’ at a ceremony attended by various dignitaries, including Union Minister for Ports, Shipping, and Waterways Sarbananda Sonowal.

The Chief Minister stated that the Vizhinjam International Seaport Limited would be fully operational by 2028, 17 years ahead of schedule. Initially, the plan was for the port to be fully equipped by 2045, with phases two, three, and four completed. However, with an investment of Rs 10,000 crore, the port will now be fully operational by 2028, and an agreement for this investment will be signed soon.

PM Modi to Inaugurate and Launch Key Infrastructure Projects Worth Rs 29,400 Crore in Mumbai

Garima Bansal
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PM Modi to Inaugurate and Launch Key Infrastructure Projects Worth Rs 29,400 Crore in Mumbai

Prime Minister Narendra Modi is set to visit Mumbai on Saturday, where he will inaugurate and lay the foundation stone for several projects totaling approximately Rs 29,400 crore, according to a statement from the Prime Minister’s Office. At 5:30 PM, he will arrive at the NESCO Exhibition Centre in Goregaon, Mumbai, to launch numerous initiatives in the road, railways, and ports sectors.

Following this, at 7 PM, he will visit the Indian News Service (INS) Secretariat at G-Block, Bandra Kurla Complex, Mumbai, to inaugurate the INS Towers. This new facility aims to meet the modern and efficient office space requirements of INS members, serving as the central hub for the newspaper industry in Mumbai.

One significant project is the Thane Borivali Tunnel Project, valued at Rs 16,600 crore. This twin-tube tunnel will run beneath Sanjay Gandhi National Park, linking the Western Express Highway at Borivali with Thane Ghodbander Road. Spanning 11.8 km, the project is expected to cut travel time between Thane and Borivali by 12 km, saving about an hour.

Additionally, the Prime Minister will initiate the Goregaon Mulund Link Road (GMLR) Project, estimated at over Rs 6,300 crore. This road will connect the Western Express Highway at Goregaon to the Eastern Express Highway at Mulund, covering approximately 6.65 km. It will also offer direct access to the upcoming Navi Mumbai airport and the Pune-Mumbai Expressway.

The Prime Minister will also lay the foundation for the Kalyan Yard Remodelling and the Gati Shakti Multi-Modal Cargo Terminal at Turbhe in Navi Mumbai. The Kalyan Yard project aims to separate long-distance and suburban traffic, increasing the yard’s capacity and reducing congestion. The Gati Shakti terminal, covering over 32,600 square meters, will create local employment opportunities and serve as an additional hub for handling cement and other commodities.

In addition, the Prime Minister will dedicate new platforms at Lokmanya Tilak Terminus and the extension of Platform no. 10 and 11 at Chhatrapati Shivaji Maharaj Terminus. The extended platforms will accommodate longer trains, enhancing the stations’ capacity to handle more passengers.

Lastly, he will launch the Mukhyamantri Yuva Karya Prashikshan Yojana, a Rs 5,600 crore internship program aimed at reducing youth unemployment by providing skill enhancement and industry exposure opportunities for individuals aged 18 to 30.

IIT Madras to Fund 200 Sports Tech Startups with Rs 5 Crore Investment Initiative

Garima Bansal
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IIT Madras to Fund 200 Sports Tech Startups with Rs 5 Crore Investment Initiative

In a significant effort to drive innovation within the sports industry, IIT Madras has announced plans to provide up to Rs 5 crore in funding to sports tech startups across India. The ‘Sports Tech Start-Up Conclave’ organized by IIT Madras was inaugurated in New Delhi on July 12. This event is part of an initiative to support indigenization and technological advancement for Atmanirbhar Bharat in the sports sector.

During the two-day conclave, IIT Madras outlined an ambitious target to support at least 200 sports tech startups over the next five years. The event, led by the institute’s Center of Excellence in Sports Science and Analytics (CESSA), aims to promote deep tech startups in the sports domain by offering investment to the selected sports tech startups. The initiative’s goal is to encourage the development of innovative products and applications that enhance sports performance through technology integration.

Startups focused on creating products utilizing sensors, networks, actuators, and controllers will have the opportunity to receive support from the IIT Madras Pravartak Technologies Foundation and CESSA. Key areas of innovation include media and entertainment platforms, fan and player engagement, athlete performance measurement, esports, sports education, sports data analytics, and sports commerce. Additionally, IIT Madras will launch a four-year course in sports science for the 2025 academic session, further nurturing deep tech startups in the sports sector.

Early-stage startups that are incorporated and have secured intellectual property rights can also qualify for funding. Besides financial support, IITM CESSA will provide startups with access to advanced sports infrastructure, technical assistance, and a comprehensive startup ecosystem to help them succeed. This comprehensive support aims to foster the development of cutting-edge products and applications that enhance sporting performance through technological integration.

As of May 2024, the IIT-Madras Incubation Cell has supported 351 startups, drawing investments amounting to Rs 10,425 crore from angel investors and VCs, with a collective valuation of Rs 45,000 crore. These startups generated Rs 3,600 crore in revenue during the financial year 2022-23, created over 10,000 jobs, and filed more than 210 patents. This new initiative is expected to build on this success by driving innovation and growth in the sports tech sector.

Karnataka Gears Up for Bengaluru Tech Summit 2024: Showcasing Global Tech Leadership

Garima Bansal
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Karnataka Gears Up for Bengaluru Tech Summit 2024: Showcasing Global Tech Leadership

The Karnataka government has announced plans to host the annual Bengaluru Tech Summit 2024 from November 19-21, aiming to showcase the state’s technological prowess on a global stage. Priyank Kharge, Karnataka’s IT and BT Minister, emphasized during a recent press conference that Karnataka is not merely competing with other Indian states but is positioned to compete on a global scale.

Kharge highlighted Karnataka’s status as the technology capital of India, noting the presence of a diverse array of companies including Indian tech firms, multinational corporations, and startups. He mentioned that discussions led by Chief Minister S Siddaramaiah with CEOs across sectors such as IT, semiconductors, electronics, biotech, and startups have influenced upcoming policies aimed at bolstering the technology sector in the state.

In addition to the Bengaluru Tech Summit, the city will also host the global TiE Summit for startups later this year. This event is anticipated to draw participation from over 15,000 startups and more than 2,000 venture capitalists, underlining Bengaluru’s growing importance as a hub for innovation and entrepreneurship.

The theme for Bengaluru Tech Summit 2024 is “Breaking Boundaries,” featuring a robust agenda with over 85 sessions and 460 speakers. Scheduled sessions will cover a wide range of topics including IT, deep tech, biotech, the startup ecosystem, and semiconductors. The summit aims to foster collaboration and innovation within these industries while showcasing Karnataka’s proactive approach to nurturing a vibrant tech ecosystem.

Kharge emphasized that Karnataka’s success in attracting major tech giants, Global Capability Centers (GCCs), and leading unicorns is attributable to the state’s industry-friendly policies and active engagement with the tech community. This year’s summit will also include structured B2B meetings and a hackathon focused on addressing challenges posed by various government departments, underscoring the event’s practical approach to advancing technological solutions.

With expectations of participation from over 40 countries and a projected attendance exceeding 50,000, Bengaluru Tech Summit 2024 is poised to be a significant platform for networking, collaboration, and innovation on a global scale.

Paytm Sees Growth in Retail and Mutual Fund Investments Amid FDI Decline

Garima Bansal
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Paytm Sees Growth in Retail and Mutual Fund Investments Amid FDI Decline

One 97 Communication Limited, the parent company of Paytm, updated its shareholding pattern for Q1 FY25 with the stock exchange on Friday. The revised data shows an increase in stocks held by retail investors and mutual funds, as detailed in the company’s Bombay Stock Exchange (BSE) filing.

The filings indicate that retail investors’ shareholding rose by 1.3%, reaching 16.56% from the previous 15.32%. Additionally, mutual funds increased their stakes in Paytm’s shares by 0.65%, now holding 6.80% in Q1 FY25.

Investments led by Mirae and Nippon contributed to a 0.29% increase in domestic institutional investors’ stake, bringing it to 7.15% during the first quarter of the current fiscal year (Q1 FY25).

However, Paytm experienced a 2% decrease in its total foreign direct investment (FDI), which dropped to 37.77% in Q1 FY25. This significant decrease was primarily due to the major exit of SoftBank (SVF India Holdings), which now holds less than 1% in Paytm. Foreign Portfolio Investors (FPIs) currently hold a 20.47% stake in Paytm, with a slight sequential decline of 0.16%.

According to the board meeting disclosure, Paytm’s parent company will release its Q1 results on July 19. The public firm anticipates revenue of Rs 1500-1600 crore and an EBITDA before ESOPs of negative Rs 500-600 crore.

Partior Secures $60 Million in Series B Funding to Transform Global Financial Transactions

Garima Bansal
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Partior Secures $60 Million in Series B Funding to Transform Global Financial Transactions

Partior, a blockchain-based fintech company, has secured over $60 million in its Series B funding round led by Peak XV Partners. New investors such as Valor Capital Group and Jump Trading Group, alongside existing shareholders JP Morgan, Standard Chartered, and Temasek, also participated in the funding. This capital infusion will enable the Singapore-based firm to advance its capabilities, including intraday FX swaps, cross-currency repos, programmable enterprise liquidity management, and just-in-time multi-bank payments. It will also support the company’s international network expansion and the integration of additional currencies.

Shailendra Singh, Managing Director at Peak XV, emphasized that Partior represents a significant effort to transform global money transfers and bank settlements through collaboration among multiple banks.

Founded in 2021, Partior emerged from Project Ubin, a collaborative initiative between the Monetary Authority of Singapore and the financial services industry. The company specializes in facilitating cross-border payments and settlements, addressing industry challenges such as settlement delays, limited transaction transparency, and high operating costs. Partior’s global unified ledger technology is viewed as crucial in redefining global transaction processing, according to Saurabh Sharma of Jump Trading Group.

Partior is already utilized by major financial institutions in key markets including London, New York, Singapore, Frankfurt, and Hong Kong. Its users include prominent entities such as DBS, JP Morgan, Standard Chartered, Siemens, and iFAST Financial. A report by the Bank for International Settlements underscores the challenges faced by traditional correspondent banking processes in adapting to evolving regulatory and supervisory requirements. The tokenization of correspondent banking could potentially streamline pre-screening and enable atomic settlement, thereby enhancing customer verification and anti-money laundering procedures, according to the report.

The Sleep Company (TSC) Achieves Rs 500 Crore Milestone in Mattress Industry

Garima Bansal
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The Sleep Company (TSC) Achieves Rs 500 Crore Milestone in Mattress Industry

The Sleep Company (TSC), a leader in sleep and seating solutions, targets profitability by FY25, marking a rapid rise since its 2019 inception with an annual recurring revenue (ARR) of Rs 500 crore. With 100 company-owned stores launched in just two years, TSC has disrupted the mattress industry, pioneering a direct-to-consumer approach.

Founded by Priyanka and Harshil Salot, TSC integrates smart grid technology into its product lineup, including mattresses, sofas, and office chairs. The company reported a substantial revenue increase from Rs 74.05 lakh in FY20 to over Rs 127.14 crore in FY23, aiming for Rs 1,000 crore in the next 2-3 years with plans to expand its workforce to 1,300-1,400 by 2024.

The company’s ‘Ropo’ strategy—research online, purchase offline—enhances customer experience across its Coco stores, where consumers can explore products firsthand. Recent funding rounds, including Rs 184 crore in Series C, highlight investor confidence in TSC’s growth trajectory and innovation in AI-integrated products.

Operating EBITDA-profitable stores nationwide, TSC attributes its success to strategic expansion and a strong omnichannel presence, accounting for 85% of sales. With manufacturing hubs in Mumbai and Bengaluru, the company aims to double its market share in office chairs following the launch of ‘ErgoSmart by The Sleep Company’.

Looking ahead, TSC aims to solidify its position as a ‘House of Brands’ while setting new industry standards, leveraging AI to enhance customer engagement and product offerings.

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