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Swiggy to raise Rs 5,000 Cr via fresh issue

By
Garima Bansal
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0

Swiggy, the food delivery and quick commerce company, is preparing for an initial public offering (IPO) with plans to raise Rs 5,000 crore ($602 million) through a fresh issue of equity shares. The Prosus-backed firm has also targeted raising Rs 6,664 crore through an offer for sale (OFS) and is set to seek board approval for the OFS in early October. This move comes as part of Swiggy’s broader strategy to secure a total of Rs 10,400 crore, combining both the fresh issue and the OFS.

The company’s IPO plans have been in the works since confidentially filing draft papers in April, and the latest special resolution indicates a 1.3X increase in the fresh issue amount compared to the initially planned Rs 3,750 crore. Swiggy is expected to file its draft red herring prospectus (DRHP) with SEBI soon. Ahead of the IPO, Swiggy attracted strategic investments from Amitabh Bachchan’s Family Office and Hindustan Composites, with investor Baron Capital valuing the company at $14.5 billion.

Swiggy reported significant financial growth in FY24, with a 36% year-on-year increase in revenue to Rs 11,247 crore and a 44% reduction in losses, bringing them down to Rs 2,350 crore. The core food delivery business contributed Rs 6,100 crore to total revenue, while its quick commerce segment, Instamart, generated Rs 1,100 crore in gross revenue. To strengthen its position against competitors like Zepto and Zomato’s Blinkit, Swiggy invested $700 million in quick commerce in late 2021 and recently appointed new leadership for Instamart.

Swiggy’s IPO is part of a broader trend of Bengaluru-based companies entering the stock market in 2024, following a series of IPOs from Delhi NCR. Other notable IPOs from the city include Digit Insurance and Ola Electric. Ather Energy, another Bengaluru-based company, has also filed its draft IPO papers, although its major stakeholder, Hero MotoCorp, opted not to participate in the OFS.

Former Jio top boss sets up growth-stage startup fund Playbook Partners

By
Garima Bansal
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0

Vikas Choudhury, former top executive at Reliance Jio, has launched a new growth-stage investment fund called Playbook Partners, which has achieved its first close at $130 million and may eventually expand to $250 million. The fund has secured investments from large institutional investors across Europe, the US, West Asia, and India, and will focus on tech-first companies that have already established viable business models but require funds to scale into multimillion-dollar revenue businesses.

Playbook Partners will invest in companies with a revenue base between Rs 100 crore to Rs 200 crore, targeting businesses with a positive contribution margin. The average investment ticket size will range between $10 million and $20 million, with the firm either leading or co-leading investment rounds. The fund will prioritize two main themes: companies that use digital technology to enhance distribution in sectors like consumer, fintech, and supply chain, and those that solve large-scale problems with digital innovation, such as health, climate, and software as a service.

Before founding Playbook Partners, Vikas Choudhury held leadership roles at Reliance Jio and was the India CEO of Aimia, a Toronto-based investment holding company. He also served as a partner at Pivot Ventures, a multi-family office focused on alternative investments. Playbook Partners is established as a separate fund with its own professional management team and received its SEBI license in early 2024, registering at Gift City in Gandhinagar. With his extensive experience in running large businesses, Choudhury aims to leverage Playbook’s expertise to help founders scale their companies into sustainable and profitable enterprises.

Clean Electric Raises $6 Million to Scale Fast-Charging EV Battery Tech, Expand Product Line

By
Garima Bansal
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Clean Electric, a developer of fast-charging battery technology for electric vehicles and grid battery solutions, recently raised $6 million in a funding round led by Info Edge Ventures, Pi Ventures, and Kalaari Capital, with participation from Lok Capital and other investors. The investment aims to enhance research and development, expand sales and operations teams, and develop new products focused on faster charging and renewable energy storage.

Founded in 2016 by IIT-BHU graduates Akash Gupta, Abhinav Roy, and Ankit Joshi, Clean Electric is based in Pune and collaborates with around 12 electric vehicle OEMs. The startup’s proprietary rapid charging technology can fully charge electric vehicles in under 12 minutes, significantly faster than the current standard of 40 minutes to over an hour. The company is working on scaling solutions for electric two-wheelers and three-wheelers, with plans to expand into electric four-wheelers and commercial vehicles within the next 12 to 18 months.

Clean Electric’s innovations aim to address key challenges in the electric vehicle industry, such as convenience and cost, to drive wider adoption of EVs over petrol or diesel vehicles. The company has achieved an annual run rate of $1.2-1.5 million and targets nearly $10 million by next September. To date, Clean Electric has raised close to $9 million in total funding.

Chinmaya Sharma, partner at Info Edge Ventures, highlighted that there are still critical gaps in the electric mobility value chain, particularly in battery reliability and quick charging without compromising performance. Clean Electric’s technical expertise and innovative products position the company as a key player in addressing these challenges on a national and potentially global scale.

Chip Mission Set For Big Boost: Eight-Year Fiscal Support, $15 Billion Funding In The Pipeline

By
Garima Bansal
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0

The Indian government is considering extending the fiscal support period for the second phase of the India Semiconductor Mission (ISM) from five to eight years. Projects approved under ISM Phase-II may receive additional financial grants, including funding for employee skill development, interest-free government loans, and assistance from the Ministry of Electronics and Information Technology (MeITY) for access to domestically produced chips.

Phase-II of ISM may see a shift in focus, with reduced financial support for technology transfer costs and greater emphasis on funding administrative expenses. Additionally, financial incentives for chip packaging units, such as assembly and testing plants (ATMP/OSAT), are expected to decrease from 50% to below 30%, with the government aiming to attract more chip fabrication companies to India.

Successful applicants could also receive incentives ranging from 30% to 35% of their total capital expenditure for establishing units related to raw materials, chemicals, metals, and other essential sectors. So far, the government has invested $11 billion in subsidies to boost semiconductor manufacturing, with three units already underway and a fourth recently approved.

These projects include a chip fabrication unit in Dholera, Gujarat, and four assembly and testing plants, with three located in Sanand, Gujarat, and one in Morigaon, Assam. Phase-II of ISM may see the programme’s total outlay increase to $15 billion, continuing to drive India’s semiconductor industry growth.

Kross Ltd IPO Subscribed 34% on Day 1, Driven by Strong Retail Demand

By
Garima Bansal
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0

The initial public offering (IPO) of Kross Ltd opened for subscription and was subscribed 34% on the first day. By noon, retail investors showed the most interest, subscribing to 62% of the issue, followed by non-institutional investors at 14%. The portion reserved for qualified institutional buyers received fewer bids.

Kross Ltd’s Rs 500-crore IPO includes a fresh equity issue of up to Rs 250 crore and an offer for sale (OFS) of up to Rs 250 crore by the company’s promoter shareholders, Sudhir Rai and Anita Rai, who are offloading part of their stakes.

The company has set a price band of Rs 228-240 per share, with investors required to bid for 62 shares per lot. The grey market premium (GMP) ahead of the issue was approximately Rs 50, suggesting a potential 21% premium over the issue price.

Financial experts recommend subscribing to Kross Ltd’s IPO, considering the company’s healthy growth track record and expansion strategies. Despite a higher P/E ratio of 34.5x compared to industry averages, its future growth potential and forward integration strategies make it an attractive investment.

Kross Ltd is a leading manufacturer of forged and machined components in India, with a growing global export presence. The company serves key clients like Ashok Leyland and Tata International DLT, manufacturing high-performance components for the commercial vehicle and tractor sectors. It operates five facilities in Jamshedpur, specializing in product design, development, and manufacturing.

For the fiscal year ending March 2024, Kross Ltd saw a 27% increase in revenue, reaching Rs 620 crore, and a 45% rise in net profit, totaling Rs 44.8 crore. The company’s revenue, EBITDA, and net profit grew at a compound annual growth rate (CAGR) of 44.4%, 65.5%, and 91.8%, respectively, over FY22-24.

Transcell Biologics Secures Investment from Quantiphi and IAN Group to Advance Animal-Free Testing Technology

By
Garima Bansal
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Bio-tech company Transcell Biologics has secured an undisclosed amount of funding from Boston-based Quantiphi and IAN Group. The investment will be utilized to expand its client base and implement Digital Animal Replacement Technology (DART) as an enterprise solution for the global bio and pharmaceutical industries.

Founded in 2009 by Subadra Dravida, Transcell Biologics specializes in optimizing stem cell yield while maintaining pluripotency and functionality. The company has developed a proprietary process, extending the application of its stem cell technologies.

The Hyderabad-based firm’s DART solution provides an animal-free testing platform that combines human MicroPhysiological Systems (hMPS) with AI and machine learning. This technology automates bioassay processes and generates statistically compliant reports, ensuring safety and efficacy testing for drugs and vaccines.

DART has gained significant traction in India, with major biopharmaceutical companies integrating it into their high-impact programs. Transcell Biologics plans to further expand into markets in the USA, Europe, and Japan.

Flipkart Expands Quick Commerce Service ‘Flipkart Minutes’ to Gurugram and NCR Region

By
Garima Bansal
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0

Flipkart has officially launched its quick commerce service, Flipkart Minutes, in Gurugram and various parts of the NCR region. This launch follows the successful introduction of the service in Bengaluru, marking a crucial step in Flipkart’s expansion into the rapid delivery market. Although Flipkart has not released an official statement about the public launch, users in several Gurugram locations, such as Unitech Cyber Park, Sector 39, 40, The Millennium City Centre (Sector 29), and Golf Course Road (Sector 54), have reported receiving notifications about the availability of Flipkart Minutes. Sources indicate the service is also accessible in select areas of Mumbai.

Flipkart Minutes provides a quick delivery option for groceries, electronics, smartphones, and other products, with delivery times ranging from 8 to 16 minutes. The service enables Flipkart to compete with other major players in the quick commerce sector, such as Blinkit, Swiggy Instamart, and Zepto. This new offering expands Flipkart’s existing slot-based delivery services, which already compete with Amazon Fresh and BigBasket. BigBasket is currently transitioning entirely to quick commerce, while Amazon plans to enter the space early next year.

The quick commerce sector has been thriving for over a year, attracting significant investment and competition. Zepto, one of the prominent players, recently raised over $1 billion and surpassed a $5 billion valuation. The company is focusing on expanding in both existing and new cities and is preparing for an initial public offering (IPO) next year. Meanwhile, Zomato-owned Blinkit is expanding into Tier II cities and has claimed the largest market share in the quick commerce segment. To strengthen its position, Swiggy Instamart has bolstered its leadership by appointing a new CEO and COO.

Flipkart’s entry into this competitive space with Flipkart Minutes reflects its ambition to capture a substantial market share in the rapidly growing quick commerce sector, catering to the increasing demand for fast delivery of essential items.

MobiKwik Xtra Investors Face Withdrawal Issues After RBI Crackdown on P2P Lending

By
Garima Bansal
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0

Following a regulatory crackdown by the Reserve Bank of India (RBI) on peer-to-peer (P2P) lending, MobiKwik’s Xtra investors are facing difficulties with withdrawals. This situation seems to have arisen due to a change in the withdrawal policy by the platform’s lending partner, Lendbox. Many users reported that this change was implemented without prior notification, and they raised their concerns on social media. Some users also alleged that Xtra transferred their investments to other borrowers without their consent, which is confusing because the new RBI rules do not affect existing investments.

The halt on instant withdrawals appears to be linked to the RBI’s updated master directions that prohibit P2P lending platforms from being marketed as investment products offering assured returns and liquidity options. According to the new guidelines, lenders on P2P platforms cannot invest more than Rs 50 lakh in total, and the maximum investment for a single borrower is capped at Rs 50,000.

MobiKwik’s Xtra allows users to earn up to 14% returns on their investments. The platform claims to have disbursed over 300,000 loans amounting to Rs 7,373 crore to date. Due to the updated regulations issued by the RBI on August 16, 2024, Lendbox, the lending partner, restructured its product, resulting in the discontinuation of anytime withdrawals. MobiKwik clarified that it only acts as a channel partner for Lendbox and stated that customers would receive their principal and interest as borrowers make repayments. This amount would be available for withdrawal on the 12th of every month, and the expected repayment schedule will soon be visible in the MobiKwik app.

Users of BharatPe’s 12% Club, another P2P lending platform, also reported issues with instant withdrawals on social media. Reports indicated that BharatPe had slowed down its onboarding process for new customers on the 12% Club. Additionally, onboarding by P2P lending platforms has declined by over 90% since the RBI’s directive, and some platforms, like Liquiloans, have already stopped accepting new users. Prominent P2P lending platforms in India, including LenDenClub, Faircent, 13Karat, and CRED Mint, are also adjusting to the new regulatory landscape.

Porter Boosts Revenue by 56% to Over Rs 2,700 Crore in FY24; Narrows Losses by 45%

By
Garima Bansal
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0

Porter, an on-demand intra-city logistics company, has continued its impressive growth in FY24, with revenue surging 56% to over Rs 2,700 crore. During the same period, the company significantly reduced its losses by 45%, bringing them down to below Rs 100 crore. Porter’s operational revenue increased by 55.9% to Rs 2,733.8 crore for the fiscal year ending March 2024, doubling its revenue from Rs 1,753.8 crore in FY23.

Porter operates a comprehensive logistics platform aimed at optimizing last-mile delivery operations for businesses. The company derived 99% of its total operating revenue from goods transportation services, with the remainder coming from platform fees and other related activities. Additionally, Porter gained Rs 32.64 crore from interest and financial assets, taking its overall revenue to Rs 2,766 crore in FY24.

Fleet operator costs, which include vehicle-related and delivery personnel expenses, accounted for 82.8% of the total expenses and rose by 50% to Rs 2,369 crore in FY24. Employee benefits expenses also increased by 24.3% to Rs 237.36 crore, which included Rs 6.69 crore in employee stock compensation expenses. Other major expenses included advertising, promotions, information technology, and legal and professional fees, contributing to a total expenditure of Rs 2,862 crore in FY24, up from Rs 1,964 crore in the previous fiscal year.

Despite these rising costs, Porter managed to reduce its losses by 45% to Rs 95.7 crore, compared to Rs 174.6 crore in FY23. The company’s operating cash outflows improved by 48.5% to Rs 96.7 crore during the year, with outstanding losses at Rs 771.5 crore as of FY24. Porter’s EBITDA margin also improved by 638 basis points, reaching -2.89% in FY24, with the company spending Rs 1.05 to generate a rupee of operating revenue.

Porter has successfully scaled its operations without raising external funds in FY24 and FY23, with its last funding round—a $100 million Series E led by Tiger Global and Vitruvian Partners—occurring in October 2021. Although Porter reportedly reached unicorn status in an internal round that included secondary components, the Bengaluru-based company has not officially announced this achievement.

Porter’s path towards profitability is a positive sign for current and prospective investors, especially in a highly competitive market. The decline of competitors like Dunzo has allowed Porter to seamlessly capture additional market share. With investor fatigue in the logistics sector limiting new competition, Porter and other major players are well-positioned to focus on improving margins and becoming stable profit generators, appealing to public market investors.

Ather Energy Files for IPO to Raise Rs 3,100 Crore, Aiming to Become Second Two-Wheeler EV Maker on Stock Exchange

By
Garima Bansal
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0

Ather Energy, a prominent electric two-wheeler manufacturer, has submitted its draft red herring prospectus (DRHP) to the Securities Exchange Board of India (SEBI) for an initial public offering (IPO). Ather aims to become the second electric two-wheeler company to list on the stock exchange, following Ola Electric’s recent public debut.

Ather plans to raise approximately Rs 3,100 crore (around $370 million) through a fresh issue of equity shares and an offer for sale (OFS) of up to 2.2 crore shares. Key stakeholders participating in the OFS include GIC Ventures‘ subsidiary Caladium Investment, which will divest 47.8% of the total OFS, Tiger Global at 18.1%, and 3 States Ventures with 2.18%. Co-founders Tarun Mehta and Swapnil Jain will also contribute by offering 10 lakh shares each. The shares will be issued at a face value of Re 1, with the price band and minimum lot size to be decided in consultation with the book-running lead managers.

Hero MotoCorp, holding a 37.2% stake, is Ather’s largest external shareholder, followed by GIC (Caladium Investment) with 15.04% and the National Investment and Infrastructure Fund (NIIF) at 10.29%. Interestingly, Hero MotoCorp has opted not to participate in the OFS, which has raised questions among market observers. The co-founders of Ather, Tarun Mehta and Swapnil Jain, collectively hold 13.26% of the company.

The funds from the fresh issue will be used for capital expenditure on setting up an electric two-wheeler factory, repaying borrowings, research and development, and marketing expenses. Axis Capital, HSBC Securities, Nomura Financial, and JM Financial are the book-running lead managers for the IPO.

Ather recently achieved unicorn status after securing $71 million from the National Investment and Infrastructure Fund, making it the second unicorn in the electric vehicle sector after Ola Electric. The Bengaluru-based company has raised over $500 million, including $125 million in the last three months alone.

Financially, Ather recorded Rs 339 crore in revenue in Q1 FY25, with a net loss of Rs 183 crore during the same period. For FY24, the company reported revenue of Rs 1,754 crore, reflecting a slight decline. Ather’s customer base grew by 34% to 1,14,000 in FY24, following a 270% increase in FY23. The company also noted that 28% of its raw materials were imported from China in FY24, up from 10% in FY23.

In the competitive landscape, Ather holds a 9% market share in the electric two-wheeler segment as of Q1 FY25, while Ola Electric leads the market with a 49% share. Ola Electric reported Rs 1,644 crore in revenue for Q1 FY25, with a 17% reduction in net loss.

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