Fino Payments Bank posted a profit after tax (PAT) of INR 24.27 Cr for the quarter ended June 30, 2024 (Q1 FY25), up 29.7% from INR 18.7 Cr in the year-ago period.

However, the payments bank’s PAT declined 3.7% quarter-on-quarter (QoQ) in Q1 FY25 from INR 25.21 Cr in Q4 FY25.

Revenue from operations jumped 25.4% to INR 436.86 Cr during the quarter under review from INR 348.31 Cr in Q1 FY24. On a QoQ basis, operating revenue was up 8.8%.

Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 31.4% to INR 53.2 Cr from INR 40.5 Cr in Q1 FY24. However, it contracted 1.8% QoQ from INR 54.2 Cr in Q4 FY24.

The company said it opened more than 68,000 digital accounts in the reported quarter and facilitated 57 Cr UPI transactions.

The current account savings account (CASA) segment contributed INR 93.6 Cr to Fino’s net income in Q1 FY25.

Meanwhile, the payments bank earned INR 66.8 Cr from its digital payment services vertical during the period under review.

The domestic money transfer (DMT) segment turned out to be the biggest money maker for the payments bank, adding INR 112.5 Cr to its top line.

During the June quarter of FY25, Fino Payments Bank saw its merchant network rise 25% YoY to 18.1 Lakh. Meanwhile, average deposits surged 37% YoY to INR 1,699 Cr in Q1 FY25.

Ahead of the earnings announcement, shares of Fino Payments Bank closed 1.3% higher at INR 321.6 apiece on the BSE on Wednesday (July 31). 

Commenting on the Q1 results, Rishi Gupta, CEO and managing director of Fino Payments Bank, said, “Our new vertical ‘digital payment services’ is growing on a profitable basis and giving the necessary impetus to our TAM (transaction, acquisition and monetisation) strategy..”

Going forward, the payments bank will focus on moving up the customer value chain, diversification and innovation, Gupta added.

The post Fino Payments Bank Q1: Profit Jumps 30% YoY To INR 24.2 Cr appeared first on Inc42 Media.

Market intelligence platform Tracxn Technologies posted a profit after tax (PAT) of INR 1.27 Cr in the June quarter (Q1) of the financial year 2024-25 (FY25), a 84.6% jump from INR 68.93 Lakh in the year-ago quarter.

However, on a quarter-on-quarter (QoQ) basis, Tracxn reported a 10.5% decline in its PAT from INR 1.42 Cr in Q4 FY24.

Revenue from operations stood at INR 20.53 Cr in Q1 FY25, up 3.6% from INR 19.82 Cr in the corresponding quarter previous year. On a QoQ basis, operating revenue rose 1%.

The startup said that 39% of its revenue came from India, while 61% came from the international market.

Tracxn’s total expenses stood at INR 20.27 Cr during the quarter under review, up 2.1% from INR 19.84 Cr in the year-ago period.

Employee costs emerged as the biggest expense for Tracxn during the quarter review. The company spent INR 17.67 Cr towards employee benefit expense in Q1 FY25 as against 17.37 Cr in Q1 FY24.

Founded by Abhishek Goyal and Neha Singh in 2013, Tracxn is a market research and data platform that tracks company financials and captables of entities worldwide. 

It caters to a wide range of clients including private market investors such as venture capital and private equity firms and investment banks as well as corporates, government agencies, government banks, academic institutions, and startup accelerators.

Currently, Tracxn covers private company financials across more than 20 countries and cap tables across more than 15 countries.

In the quarter ended June 30, 2024, Tracxn added 101 new customers. With this, Tracxn’s customer base rose to 1,413 in Q1 FY25 from 1,312 in Q4 FY24.

 The company said it has been investing across various growth initiatives that are expected to fuel new customer acquisition as well as customer expansion. It said it has been seeing a high volume of inbound leads from startups and has set up a dedicated team to focus on acquisition and expansion of customers in this segment.

Additionally, Tracxn has set up a specialised sales team for private equity as well as doubled down the data production specifically for the PE customer segment.

Ahead of the earnings announcement, shares of Tracxn ended Wednesday’s (July 31) trading session 3% lower at INR 94.44 apiece on the BSE.

The post Tracxn Q1: Profit Jumps To INR 1.27 Cr, Revenue Grows 3.6% YoY appeared first on Inc42 Media.

Snapdeal-backed SaaS startup Unicommerce has filed a red herring prospectus (RHP) with the markets regulator Securities Exchange of India (SEBI) for its initial public offering.

Unicommerce’s IPO will open for subscription on August 6 and close on August 8. The bidding for anchor investors will open for a day on August 5, according to the RHP.

Unicommerce’s IPO has no fresh issue component to the IPO. Instead, it solely comprises an offer-for-sale (OFS) component with 2.56 Cr equity shares.  

Under the OFS, AceVector Ltd (formerly Snapdeal) and SoftBank will be selling up to 94.38 Lakh equity shares and up to 1.61 Cr equity shares.

Meanwhile, Snapdeal cofounders Kunal Bahl and Rohit Bansal, who hold a joint stake in Unicommerce via their VC firm B2 Capital Partners, have withdrawn from the OFS. Earlier, they planned to offload 22 Lakh equity shares.

AceVector is the largest shareholder in Unicommerce with a 38.18% stake. Meanwhile, SoftBank holds a 29.23% stake in Unicommerce via its UK-based entity SB Investments Holdings (UK). 

It is pertinent to note that Unicommerce filed a draft red herring prospectus (DRHP) with SEBI in January. It earlier planned to sell up to 2.98 Cr shares via its IPO.

Founded in 2012, Unicommerce is an ecommerce SaaS startup that helps businesses manage inventory across all online marketplaces. It was acquired by Snapdeal in 2015 but the latter sold 30% of its stake in Unicommerce to SoftBank.

Unicommerce posted a net profit of INR 6.3 Cr in the first half (H1) of the financial year 2023-24 (FY24). Revenue from operations stood at INR 51 Cr during the period under review.

In FY23, the startup’s net profit rose 8% to INR 6.4 Cr from INR 6 Cr in the previous fiscal year. Revenue from operations jumped 52% to INR 90 Cr from INR 59 Cr in FY22.

The post Unicommerce Files RHP For IPO, SoftBank To Sell Up To 1.61 Cr Shares appeared first on Inc42 Media.

Nasdaq-listed Indian SaaS major Freshworks’ consolidated net loss narrowed 43.5% year-on-year to $20.1 Mn in the second quarter of 2024.

The Chennai-based firm posted a loss of $35.6 Mn in the corresponding quarter of previous year.

Total revenue jumped 20% to $174.1 Mn in the second quarter ended June 30, 2024 on the back of improved sales and growing customer demand for AI-enabled solutions.

Commenting on the Q2 results, Dennis Woodside, CEO and president of Freshworks, said, “Freshworks delivered a solid Q2, growing revenue to $174.1 million with a free cash flow margin of 19%”.

On the other hand, Freshworks’ gross profit surged 21.3% to $145.9 Mn in Q2 2024 from $120.2 Mn in Q2 2023.

The company said that the number of customers contributing over $5,000 in ARR stood at 21,744 in the reported quarter, an increase of 14% YoY. Kayak, Davidson Kempner Capital  Management, Paul Smith UK, Asian Paints, Tile Mountain, San Diego Unified School District were among the new customers added in Q2. 

The company’s free cash flow stood at $32.8 Mn at the end of Q2 2024.

Freshworks aims for its Q3 2024 revenue in the range of $180 Mn-$183 Mn, registering a 17-19% growth YoY.

For the full calendar year 2024, Freshworks expects revenue in the range of $707 Mn-$713 Mn, clocking a growth of 18.5-19.5% YoY.

In its Q2 2024 earnings report, the company also announced that it completed the acquisition of Device42 to strengthen its IT offerings for mid-market and enterprise companies with enhanced IT asset management solutions.

The post Freshworks’ Net Loss Narrows 43% To $20.1 Mn In Q2 appeared first on Inc42 Media.

Fintech unicorn BharatPe has secured a debt funding of INR 85 Cr (around $10.1 Mn ) from Trifecta Venture and InnoVen Capital through issuance of non-convertible debentures (NCDs).

The company’s board issued 500 Series E1 secured, unlisted, unrated and redeemable debentures with a face value of INR 10 Lakh each and 3500 Series F1 debentures at a face value of INR 1 Lakh each to raise INR 85 Cr, as per regulatory filings.

At INR 50 Cr, Trifecta Venture led the debt funding round while InnoVen Capital invested the remaining INR 35 Cr.

Entrackr reported the development first.

Notably, this is the second instance where BharatPe has raised debt funding this year. In January, the Peak XV-backed startup secured $100 Mn in debt from InnoVen Capital and Credit Saison.

At the time, it was reported that InnoVen Capital was looking to invest $60Mn-$70 Mn in BharatPe.

The latest INR 35 Cr debt infusion by Innoven Capital appears to be part of that deal.

It was also reported earlier that Nalin Negi has been promoted as the CEO of BharatPe. Negi was appointed as interim CEO and CFO of the company following Sameer Sohail’s exit in January 2023.

Recently, BharatPe ended its five-year long legal dispute with PhonePe over the use of the trademark with the suffix ‘Pe’ in their brand names. 

Earlier this year, BharatPe rolled out an ‘all-in-one’ payment device ‘BharatPe One’ that integrates point-of-sale (PoS), QR code scanner, and speaker.

BharatPe widened its net loss to INR 926.9 Cr in the financial year 2022-23 (FY23), up 12% from INR 828.6 Cr in FY21. 

Revenue from operations jumped 125% to INR 1,028.9 Cr in FY23 from INR 456.8 Cr in the preceding fiscal.

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SEBI chairperson Madhabi Puri Buch has said that the markets regulator will ensure adequate oversight to prevent a “Paytm-type contamination”.

“We will not allow a Paytm-type of contamination in our market. We all saw what happened in Paytm. Now, because in the banking system, there is no KRA (KYC Registration Agency) type system. So, the problem of Paytm stays in Paytm. It doesn’t contaminate other banks,” Buch said.

It is pertinent to note that SEBI mandates uniform KYC by all SEBI-registered intermediaries. KRAs provide for centralised storage/ digitisation of the KYC records in the securities market.

“But if we allow Paytm to come into our system with no KRA, and it contaminates the whole system, how can we allow that? We will always have our KRA sitting in the middle to make sure things are validated, otherwise you can have one mischievous player come in and contaminate the whole system. We will not allow that,” the SEBI chairperson added.

Buch’s sharp criticism of Paytm came in the backdrop of the Reserve Bank of India’s crackdown on Paytm Payments Bank Ltd (PPBL) for flouting KYC norms and non-compliance with rules. The central bank ordered a number of restrictions on PPBL, including barring it from taking deposits or credit transactions or top ups in any customer accounts, prepaid instruments, wallets, FASTags, National Common Mobility Cards.

At the time, a number of reports said that the RBI took the action against Paytm due to lapses in its KYC processes.

However, Paytm’s troubles didn’t end with the RBI’s actions. In March, the Financial Intelligence Unit-India (FIU-IND) also slapped PPBL with a fine of INR 5.49 Cr for skirting anti-money laundering laws.

According to the finance ministry, PPBL allowed some entities to route illegal activities’ proceeds through its accounts.

Besides, Paytm has also been under SEBI’s scrutiny. It received a show cause notice from market regulator SEBI in relation to the 2.1 Cr employee stock options (ESOP) granted to the company’s founder and CEO Vijay Shekhar Sharma in the fiscal year ended March 2022 (FY22).

Earlier this month, Paytm also got an administrative warning letter from SEBI over related party transactions with PPBL in FY22, which were conducted without due approval of either the audit committee or the shareholders.

The post Won’t Allow ‘Paytm-Type Contamination’ In Market: SEBI Chief appeared first on Inc42 Media.

The Indian crypto ecosystem has had a tough couple of years due to various factors like regulatory uncertainty, heavy taxation stance adopted by the central government, a raging funding winter, negative press on account of the collapse of industry bellwether FTX, among others. 

Already under heavy scrutiny by users and authorities alike, the Indian crypto ecosystem was in for a rude shock when reports surfaced earlier this month that hackers, in a major breach at WazirX, decamped with $234.9 Mn worth of crypto tokens.

While the exchange’s many users were suddenly saddled with lost crypto tokens, a sharp criticism of WazirX’s handling of the entire episode came in from its competitor CoinDCX cofounder and CEO Sumit Gupta. 

In a post on X on July 29, Gupta said, “Hate to be saying this, but the way WazirXIndia is handling this entire situation isn’t community first and this IMO won’t go down well for them. This sadly is also hurting the other ecosystem participants”. 

But, his grouse with WazirX was about a bigger issue – the latter’s plan to make its customers absorb 45% of the losses. Calling the proposal “utter nonsense”, Gupta emphasised that ideally WazirX should absorb the losses rather than throwing the burden on its customers. 

Several social media users too chimed in on the debate and expressed displeasure with WazirX’s handling of the crypto heist. One user said that the exchange was prioritising profits while trying to escape answerability and accountability for the mishap.

The backlash came a week after WazirX suffered what was called the biggest cyberattack on any Indian crypto exchange till date as hackers stole funds equivalent to 45% of total user funds on WazirX.

As the news spread like wildfire, the crypto startup went on a damage control mode and said that the security breach impacted one of its wallets ‘Safe Multisig’ on the Ethereum network. 

For the uninitiated, a multisig wallet is a type of cryptocurrency wallet that requires multiple private keys to authorise and complete transactions. 

Following this, WazirX ‘temporarily’ suspended all trading activities on its platform as it looked to track the missing funds. 

While the users were pinning their hopes on the exchange stepping up efforts to trace the funds, it was WazirX cofounder Niscal Shetty’s comments about a ‘socialised loss’ strategy that unleashed a volley of criticism online. 

What Is The Socialised Loss Strategy?

Under fire and with no headway made in recovering funds, Shetty took to X to conduct a poll to outline two paths forward for the exchange following the breach. He cited two options – ‘legal recourse’ or ‘social loss’.

Then, in a blog post on July 27, WazirX said that in light of the recent cyberattack on the platform, it was implementing a “socialised loss strategy to distribute the impact across all users equitably”.

The company has proposed a 55-45 approach to facilitate management of the remaining user funds, where 55% of user crypto assets will be made available for trading or withdrawals depending upon the option selected by the user. 

Meanwhile the remaining 45% will be converted to Tether-equivalent tokens and locked until WazirX recovers the stolen assets.

The exchange has provided two options to its customers:

• Option A: Under this, users can trade and hold their crypto assets with priority for recovery efforts, but won’t be able to withdraw funds. If they want to start withdrawing their assets later, they can switch to Option B. However, in this case, they will lose priority in the recovery process.
• Option B: This will let users trade and withdraw their assets, but recovery efforts will focus on those who chose Option A first. Customers choosing this can switch to Option A anytime before making any trades or withdrawals.

 Explaining further, WazirX said that users with 100% of their tokens in the ‘not stolen category’ will only be able to trade or withdraw 55% of their crypto assets. The company said it would deduct the tokens to rebalance the portfolio of users who lost more than 45% of their crypto assets in the heist.

The value of the unlocked tokens (55%) will be calculated based on the average prices of CoinMarket and select global exchanges as of July 21, 8:30 PM, the day WazirX halted withdrawals on the platform.

Following the backlash, the exchange said that the poll is a preliminary step to understand the opinions of the users and is not “legally binding upon the users or the WazirX platform”. 

While the poll is still open till August 3, it is important to trace the chronology of events that led up to the current fracas. 

Tracing The Post-Hack Timeline

While the cybersecurity incident took place on July 18, WazirX, right afterwards, announced a bounty programme and offered a prize of $23 Mn to help recover the stolen $230 Mn funds. 

While touting the company’s supposed commitment to “transparency and collaboration”, Shetty said that the three-month long bounty programme was open to further extension based on the progress of the recovery.

Additionally, the company also announced that it was willing to offer rewards of up to $10,000 worth of USDT (stablecoin) to white-hat hackers for providing actionable intelligence that leads to the freezing of the stolen funds.

Even as the crypto exchange called on blockchain forensics experts and cybersecurity professionals worldwide to join the mission, the story soon took a different turn altogether as it launched a preliminary probe into the cyber attack.

In its early probe, the company said that the attack likely originated from digital asset management platform Liminal’s infrastructure as the hackers bypassed the latter’s final verification step.

However, Liminal dismissed the findings, saying that the “incident originated from an external source”.

“… Our initial assessment indicates that Liminal’s platform, infrastructure, wallets, and assets remain secure… As a wallet infrastructure support platform, we emphasise that this incident originated from an external source, underscoring the crucial need for comprehensive security measures across platforms,” Liminal said at the time.

Just as the company was grappling with the fallout of the hack, a new angle emerged in the case. US’ Federal Bureau of Investigation (FBI) reportedly reached out to the cryptocurrency exchange to probe the nature of a cyberattack. 

While the FBI reportedly hinted that the hack allegedly involved unnamed North Korean hackers, Shetty outright claimed that Lazarus Group was likely behind the incident. 

Lazarus, alleged to be backed by the North Korean government, is known for carrying out some of the world’s largest crypto exchange attacks in the past. 

Later on July 29, external threat landscape management platform CYFIRMA claimed that the North Korea-backed hacker group indeed was behind the security breach. It linked the attack to North Korean intelligence service Reconnaissance General Bureau (RGB).

According to CYFIRMA, close to $235 Mn were lost in crypto assets, including $96.7 Mn worth of Shiba Inu tokens, nearly $52.6 Mn of Ether coins, $11 Mn of Matic tokens and nearly $7.6 Mn of Pepe tokens. 

“The threat actor has already swapped a number of these tokens for Ether using a variety of decentralised services, an expected initial step of a typical laundering process,” added CYFIRMA. 

Amid all this, WazirX has sought help from its former partner Binance for bailing out the customers affected by the hack. 

While it remains to be seen whether WazirX can emerge from this row successfully and recover back the funds, the cybersecurity incident has raised questions about the safeguards implemented by crypto exchanges. 

Additionally, the incident could also have an adverse bearing on the larger crypto landscape.

The post Crypto Heist: Here’s Why WazirX’s Socialised Loss Strategy Is Drawing Controversy appeared first on Inc42 Media.

Fintech SaaS startup Zaggle’s consolidated profit after tax (PAT) surged 716% to INR 16.73 Cr in the quarter ended June 30, 2024 (Q1 FY25) from INR 2.05 Cr in the year-ago period due to strong growth in its business.

However, PAT declined over 12% on a quarter-on-quarter (QoQ) basis from INR 19.16 Cr.

Revenue from operations zoomed 113% to INR 252.2 Cr in Q1 FY25 from INR 118.4 Cr in the corresponding quarter last year. However, it declined 7.7% on a QoQ basis from INR 273.37 Cr.

The enterprise tech startup attributed the year-on-year (YoY) increase in its top line to strong demand for its accounts payable platform Zoyer and credit card bundled solutions. 

Zaggle’s reported EBITDA grew 181.8% to INR 22.43 Cr during the quarter under review from INR 7.96 Cr in Q1 FY24.

Meanwhile, total expenses surged over 100% to INR 233.96 Cr in Q1 FY25 from INR 116.94 Cr in the year-ago quarter.

The biggest expense was the cost of point redemption/ gift cards, which nearly doubled to INR 110.4 Cr in Q1 FY25 from INR 57.9 Cr in Q1 FY24.

In Q1 FY25, Zaggle spent INR 14.1 Cr towards employee benefits expenses as against INR 13.9 Cr in the year-ago period.

The startup trimmed its ESOP expenses to INR 3.14 Cr in Q1 FY25 from INR 5.84 Cr in Q1 FY24. Zaggle said it expects its total ESOP expenses to be around INR 7-9 Cr in FY25.

Meanwhile, finance cost declined to INR 2.05 Cr during the quarter under review from INR 4.41 Cr in the year-ago quarter and INR 3.79 Cr in the preceding March quarter. The startup attributed this to prepayment of debt post its IPO.

Zaggle listed on the stock exchanges in September last year at INR 164 per share. Founded in 2011, the startup provides a spend management and corporate employee benefits platform. It helps businesses automate their accounts and issue prepaid cards, in partnership with banking partners, to reward their employees.

Meanwhile, in a separate exchange filing on July 30, Zaggle said it has allotted more than 1.24 Lakh additional stock options under Zaggle Employee Stock Option Scheme 2022 (Zaggle ESOP 2022) upon exercise of the vested options.

Ahead of the earnings announcement, shares of Zaggle ended today’s trading session almost flat at INR 335.05 apiece on the BSE.

The post Zaggle Q1: Profit Surges Over 8X YoY To INR 16.7 Cr, Revenue Jumps 113% appeared first on Inc42 Media.

Online classifieds and auto auction platform CarTrade reported a 69.4% year-on-year jump in its consolidated net profit to INR 22.89 Cr in the June quarter (Q1) of the financial year 2024-25 (FY25) from INR 13.51 Cr in the year-ago period.

Revenue from operations rose 64% to INR 141.17 Cr in Q1 FY25 from INR 86.06 Cr in the corresponding quarter last year.

CarTrade’s EBITDA grew 295% to INR 21.58 Cr during the quarter under review from INR 5.47 Cr in Q1 FY24. 

CarTrade saw its expenses zoom to 132.2 Cr in Q1 FY25, up 45% from INR 91.14 Cr in Q1 FY24. The company spent INR 70.62 Cr towards employee benefit expense in Q1 FY25 as against INR 51.56 Cr in the year-ago quarter.

In Q1 FY25, the classifieds segment contributed INR 46.6 Cr to CarTrade’s total revenue.

On the other hand, the company earned INR 44.06 Cr from its remarketing business, registering a 1.7% YoY rise.

Revenue earned from the consumer segment stood at INR 50.46 Cr in Q1 FY25 as compared to INR 42.84 Cr in the corresponding quarter of the previous fiscal.

Commenting on CarTrade’s strong Q1 performance, chairman and founder Vinay Sanghi said, “CarTrade Tech has a strong history of successful mergers and acquisitions, including the recent integration of OLX India, which is already yielding positive results. Our brands CarWale, BikeWale, Shriram Automall, and OLX India remain leaders in their respective markets. We aim to leverage our brand leadership and technological expertise to explore innovative opportunities, catering to our unique monthly visitor base of 70 million across various platforms.”

CarTrade has also expanded the pool size of its employee stock option plan (ESOP) by granting 1 Lakh ESOP options under the CarTrade Tech Limited ESOP 2021 (I) scheme, as per regulatory filings.

In a separate exchange filing, the company said it has granted 13,000 equity shares pursuant to exercise of vested options under ESOP 2010 and ESOP 2015. 

Shares of CarTrade ended 3% lower at INR 861.15 on the BSE on Tuesday (July 30).

The post CarTrade Q1: Net Profit Jumps 69% YoY To INR 22.89 Cr, Operating Revenue Climbs 64% appeared first on Inc42 Media.

Fintech unicorn Navi Finserv has marked close of $38 Mn (around INR 318.2 Cr) personal loans securitisation deal with financial and investment banking firm JP Morgan.

Securitisation is the process of converting an asset – in this case, personal loans – into marketable securities, typically for the purpose of raising capital by selling it to other investors.

The deal will help the Bengaluru-based startup to expand its operations and grow its digital personal loans business.

“This deal serves as a substantial endorsement of the high quality of our loan portfolio and the sustained growth that Navi has been able to achieve in the past few years,” said Sachin Bansal, cofounder, CEO and executive chairman of Navi Finserv.

This comes days after Navi Finserv in May reportedly raised INR 150 Cr via bond issuance from a clutch of investors, including Dadachanji Group chairman Kairus Shavak Dadachanji, Pervin Kairus Dadachanji, and Rishad Kairus Dadachanji. 

Navi Finserv converted into a public entity in March 2022. In the same month, Navi’s parent company, Navi Technologies, filed its DRHP to raise  INR 4,020 Cr through an IPO.

According to the DRHP, Navi Technologies planned to raise INR 3,350 Cr via a fresh issue of equity, and another INR 670 Cr in a pre-IPO round.

However, the company later scrapped its listing plans despite getting SEBI’s nod due to market volatility and the rejection of its banking licence application.

Navi Technologies’ subsidiary Navi Finserv posted a net profit of INR 172 Cr in the financial year 2022-23 (FY23) as against a loss of INR 67 Cr in FY22.

The startup’s operating revenue jumped 2.8X to INR 1,283 Cr in FY23 from INR 457.1 Cr in FY22.

The post Sachin Bansal’s Navi Finserv Closes $38 Mn Securitisation Deal With JP Morgan appeared first on Inc42 Media.

Shares of ideaForge nosedived as much as 13.6% to INR 740.7 apiece during the intraday session on the BSE today after the drone manufacturing startup posted a 94% year-on-year decline in its profit after tax (PAT) for the quarter ended June 30, 2024 (Q1 FY25).

The stock opened today at INR 741 apiece, down more than 13% from the previous close.

However, the stock recovered some of its early losses and was trading 9.93% lower at INR 772.55 apiece on the BSE at INR 11:28 AM.

ideaForge reported a PAT of INR 1.2 Cr in Q1 FY25 as against INR 18.9 Cr in the year-ago quarter.

Revenue from operations also slipped 11.2% to INR 86.2 Cr during the quarter under review as compared to INR 97.1 Cr in Q1 FY24.

Sequentially, ideaForge’s PAT declined 87% while operating revenue fell 15.7%.

The drone startup’s EBITDA slipped more than 73% to INR 8.5 Cr in Q1 FY25 from INR 32 Cr in the corresponding quarter of the previous year.

The weak Q1 performance resulted from a rise in spending towards cost of materials, which reached INR 56.1 Cr in the June quarter of the ongoing fiscal, up 321% YoY.

Founded in 2007 by IIT Bombay graduates Mehta, Ashish Bhat, Rahul Singh, Vipul Joshi, and Amardeep Singh, ideaForge designs and manufactures drones for applications in use cases such as mapping, security, and surveillance.

ideaForge made a stellar market debut last year, with its shares listing on the bourses at a 94% premium to the issue price after its public issue was oversubscribed 106X.

Earlier this month, ideaForge acquired an undisclosed stake in Bengaluru-based spacetech startup GalaxEye Space for INR 8.28 Cr. The acquisition will enable ideaForge to build drone-based sensors for fog and foliage penetrations, the company then said.

In its annual report for 2023-24 (FY23), ideaForge chairman Srikanth Velamakanni said that the startup is planning to strengthen its presence in the US and enter new markets to increase exports.

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Shares of coworking startup Awfis rallied more than 9% to touch an intraday high of INR 700.5 apiece on the BSE on Monday.

However, the stock pared some of the gains to end at INR 694 per share, up 8.19% from the previous close.

Notably, Awfis was among the only three new-age tech stocks that rallied in the week ahead of the Union Budget 2024-25, with its shares climbing 4.52%. The stock also touched an all-time high of INR 757.20 during the intraday trading session on July 18. 

Awfis made its stock market debut in May, with its shares listing on the BSE at a premium of 12.8% over the issue price.

At INR 694, the stock’s last closing price was 60.5% above the listing price of INR 432.25 apiece and 81.2% higher than the issue price of INR 383 per share.

Last week, Awfis roped in Nivia Sports executive Rajesh Kharbanda as a non-executive, non-independent director to its board.

The startup also made certain amendments to its Articles of Association (AoA) to grant specific rights to some shareholders. Now, Awfis shareholders — Peak XV Partners and the New Investor Group, can nominate one director each on the coworking startup’s board as long as they hold a 5% stake in the company on a fully diluted basis.

The recently-listed startup posted a consolidated net profit of INR 1.4 Cr in the March quarter (Q4) of the financial year 2023-24 (FY24) on the back of significant improvements across business verticals. Awfis’ operating revenue also jumped over 45% year-on-year (YoY) to INR 232.3 Cr in Q4 FY24.

It had posted a net loss of INR 13.8 Cr in the corresponding quarter of the previous fiscal on an operating revenue of INR 160 Cr.

The post Awfis Shares Jump 9% To Touch Intraday High At INR 700.5 appeared first on Inc42 Media.

Financial services company SaveDesk has acquired a 90% stake in Bengaluru-based fintech startup Fairexpay for an undisclosed sum.

The acquisition will enable SaveDesk, which operates under the legal name White Matter Advisory India Pvt Ltd, to expand its footprint in the cross-border remittance and fund collection market, it said in a statement.

Founded in 2020, Fairexpay offers application programming interface (API) and white-label solutions enabling businesses to streamline cross-border payments. 

The deal is in line with SaveDesk’s broader goal to strengthen its fintech play. Through the partnership, SaveDesk aims to leverage Fairexpay’s technology and expertise to reduce costs by 3-5%, it added.

Founded by Bhaskar Saravana, Saurabh Jain, Kranthi Reddi and Piuesh Daga in 2015, SaveDesk offers cross-border payment solutions to businesses, enabling them to send money abroad with ease.

The company also offers foreign exchange risk management, banking cost optimisation, wealth management, debt restructuring and investment banking services.

As of March 2024, SaveDesk had funds under management of $8 Bn. The Bengaluru-based startup claims that it helps its clients identify and manage hidden and direct banking charges, boosting their bottom lines by up to 7%.

The acquisition comes at a time when several fintech startups such as Razorpay and PayGlocal are rushing to secure a payment aggregator-cross border (PA-CB) licence from the Reserve Bank of India.

After procurement of the licence, these companies will be able to offer international payment services.

Earlier this month, Cashfree became the first Indian startup to get a PA-CB licence from the RBI. Escrow banking startup Castler has also received the nod from the International Financial Services Centres Authority to offer cross-border money transfer services.

According to a report, the global cross border payments market, pegged at $160 Bn in 2023, is expected to reach a size of 345.42 Bn by 2033.

The post SaveDesk Picks Up 90% Stake In Fairexpay To Strengthen Its Fintech Play appeared first on Inc42 Media.

BYJU’S founder Byju Raveendran suffered further setback as justice Sharad Kumar Sharma of the National Company Law Appellate Tribunal recused himself from hearing the former’s plea challenging the order to initiate bankruptcy proceedings against the edtech firm.

In his order dated July 29, Justice Sharma admitted that he had appeared as a senior counsel for the Board of Control For Cricket in India (BCCI) in the past, Moneycontrol reported.

“Since they are the main beneficiaries of this order, I cannot take this up,” Justice Sharma was quoted as saying by the publication.

The case will now be heard by NCLAT chairperson (retd) Ashok Bhushan.

With the NCLAT having deferred Raveendran’s plea on the recusal of a member, BYJU’S is facing a potential takeover by the Committee of Creditors.

This comes just days after the Karnataka High Court deferred hearing on Raveendran’s plea challenging the National Company Law Tribunal’s (NCLT) order to initiate bankruptcy proceedings against the embattled edtech firm.

The Karnataka HC has listed the plea for hearing on July 30.

Earlier this month, Raveendran moved the Karnataka HC after the NCLT started bankruptcy proceedings against BYJU’S on a BCCI’s plea over unpaid dues of about INR 158 Cr.

Raveendran argued before the Karnataka HC that the insolvency proceedings initiated against the startup will likely “force” thousands of its employees to quit.

In September last year, the BCCI dragged BYJU’S to the NCLT, seeking initiation of corporate insolvency resolution process against the edtech company under section 9 of Insolvency & Bankruptcy Code, 2016 over the dispute around the sponsorship rights of the Indian cricket teams’ jerseys.

BYJU’S has been mired in troubles for quite some time now, facing problems such as shrinking revenues, funding vacuum and consequent mass layoffs and legal trouble with the NCLT and probe by the Enforcement Directorate.

In June, the Ministry of Corporate Affairs said that the probe into potential governance lapses at BYJU’S was still “ongoing”.

Earlier this month, Inc42 reported that the edtech giant has been locked out of more than 100 BYJU’S Tuition Centres (BTC) across the country over unpaid rent and utility bills.

Recently, Qatar Investment Authority (QIA), a sovereign wealth fund and investor in BYJU’S, moved the Karnataka HC to compel Raveendran to disclose and block the transfer of his personal assets. QIA has claimed up to $235.19 Mn of Raveendran’s personal assets.

The post NCLAT Judge Recuses From Hearing Byju Raveendran’s Plea Against Bankruptcy Order appeared first on Inc42 Media.

The Ministry of Electronics and Information Technology (MeitY) has expressed concern about the data privacy risks posed by big tech companies such as Google, Alibaba, Airbnb, Amazon, Uber and Facebook.

These concerns were flagged by MeitY in an internal presentation on the broader theme of the Digital Personal Data Protection Act, Moneycontrol reported.

Inc42 was not able to independently verify the document.

MeitY is especially concerned about how companies collect user data through an individual’s purchases, browsing habits and preferences.

Big tech firms reveal “patterns, trends and associations”, leaving users “vulnerable”, the presentation reportedly highlighted.

Further, MeitY has also voiced concerns about the spike in data usage caused by the tech giants.

The development comes at a time when tech giants like Google, Apple, Meta and Amazon are under scrutiny for abusing their dominant position in multiple markets to limit competition.

Amid the recent feud between Indian startups and Google, the CCI ordered an investigation into the search giant’s contentious choice billing system.

In 2022, the CCI slapped Google India with a fine of INR 1,337 Cr for engaging in unfair business practices in the Indian market.

In a move to crack down on the alleged anti-competitive practices employed by big tech companies, the Ministry of Corporate Affairs released the draft Digital Competition Bill earlier this year.

The bill also entrusts the big tech firms with various obligations, spanning aspects such as prevention of fraud, cybersecurity, prevention of trademark and copyright infringement, compliance to local laws, among others.

While the draft Digital Competition Bill has been welcomed by more than three dozen homegrown startups including the likes of Matrimony.com, TrulyMadly, Innov8, tech giants such as Meta, Amazon and Google have opposed it, arguing that the regulations proposed under the bill are stricter than EU laws.

Last year, the government passed the Digital Personal Data Protection Bill to oversee digital processing of data of Indians. The bill introduced the concept of user consent, meaning that data can only be processed on prior permission of the user and only for lawful and specified legitimate purposes.

The post MeitY Flags Data Privacy Risks Posed By Google, Other Big Tech Players appeared first on Inc42 Media.

The Mumbai bench of the National Company Law Tribunal has scheduled the final hearing on the merger of Walt Disney-owned Star India with Reliance Industries-owned Viacom18 for August 1.

In its order dated July 11, the tribunal directed both parties to issue a fresh notice of the final hearing, ET reported.

The bench led by justices Kishore Vemulapalli (judicial) and Anu Jagmohan Singh (technical) said that the notice must be served to the central/state governments, tax authorities, and regulatory bodies like the Competition Commission of India (CCI) and the Ministry of Information and Broadcasting.

If authorities do not reply within 30 days of receiving the notice, it will be presumed that they do not object to the scheme of arrangement between Star India and Viacom18, the order said.

Earlier this year, Reliance Industries, Viacom18 and Disney inked a deal to set up a joint venture that will combine the businesses of Viacom18 and Star India Private Limited.

The deal values the JV at $8.5 Bn on a post-money basis. Once the merger is enforced, the JV will be controlled by RIL, holding a 16.34% stake, while Viacom18 and Disney will own 46.82% and 36.84% of the company’s stakes, respectively.

Further, Reliance plans to invest INR 11,500 Cr in the JV. On top of Reliance and Viacom18-owned sports content, the resultant entity will have exclusive rights to distribute Disney’s content in India. 

The JV is expected to have a strong user base of 750 Mn in India. 

Once the merger plea gets the seal of approval from the NCLT, it will still require the nod from the Competition Commission of India.

However, the $8.5 Bn merger between Reliance Industries and Walt Disney’s India media assets has come under the scrutiny of CCI recently.

Earlier this month, the antitrust watchdog reportedly asked the companies nearly 100 questions, including specifics on sports rights.

It also sought answers as to why YouTube, which primarily features free, user-generated content, should be considered in the same market as subscription streaming services like Netflix and Disney.

The post NCLT Lists Final Hearing On Reliance-Disney Merger Deal For Aug 1 appeared first on Inc42 Media.

Shares of Go Digit General Insurance rallied over 8% to touch INR 362.25 apiece during the intraday trading session on the BSE on Friday (June 26) after the unicorn reported robust financial performance for the first quarter of the financial year 2024-25 (Q1 FY25).

However, the shares shed some of the gains to end today’s session 3% higher at INR 345.25 on the BSE.

On Thursday, Go Digit reported a 74% surge in its net profit to INR 101 Cr in Q1 FY25 from INR 58 Cr in the year-ago quarter. 

The startup clocked a total gross written premium (GWP) of INR 2,660 Cr in Q1 FY25, up 22.2% from INR 2,178 Cr in the corresponding quarter of the previous fiscal year.

The company attributed the rise to the growth in third-party motor, health, travel, and personal accident premiums.

The insurtech startup’s total income, including net earned premium, income from investments, and other income, rose more than 24% YoY to INR 2,076 Cr in Q1 FY25.

Go Digit’s net earned premium grew to INR 1,824 Cr during the period under review from INR 1,475 Cr in the year-ago quarter.

Founded in 2017 by Kamesh Goyal, Go Digit leverages technology to offer insurance policies across verticals such as health, motor vehicle, travel, and property. The startup counts Fairfax, Peak XV Partners and A91 Partners among its backers.

The insurtech startup made a lukewarm stock market debut earlier this year, with its shares listing at a premium of 5% to the issue price on the NSE. 

Following its listing, on June 11, Go Digit posted over a 400% jump PAT to INR 182 Cr in FY24 from INR 36 Cr in FY23.

At INR 345.25, the stock’s last closing price was 18.6% above the listing price of INR 281 on the BSE and 21.2% higher than the issue price of INR 272.

The post Go Digit Shares Jump 8% Intraday On Robust Q1 Results appeared first on Inc42 Media.

Shares of Paytm jumped 10% to INR 508.85 apiece during today’s intraday trade on the BSE after the fintech major reportedly secured approval from the government to invest INR 50 Cr in its payments arm, Paytm Payment Services.

Reuters reported on the development first, citing a top finance ministry official.

The approval will enable Paytm to apply for an online payment aggregator (PA) licence from the Reserve Bank of India.

The approval was reportedly stuck for months partly due to concerns about China-based Antfin (Netherlands) Holdings’ shareholding in its parent entity.

As of the fiscal year ended March 2024, Antfin (Netherlands) Holdings held a 9.88% stake in Paytm’s parent One 97 Communications. 

Earlier this month, the government panel overseeing investments linked to China, greenlit the INR 50 Cr investment by Paytm in its subsidiary.

Paytm incorporated Paytm Payment Services to secure a PA licence. While the company initially tried to get the PA licence in 2020, the RBI directed it to resubmit the application to ensure compliance with the FDI rules.

The PA framework was introduced by the RBI in March 2020. It mandates that payment gateways secure an aggregator licence for acquiring merchants and delivering digital payment acceptance solutions.

The approval of Paytm’s investment in its payments arm comes as a major relief for the company after the RBI’s crackdown on Paytm Payments Bank affected its business.

Paytm saw its consolidated net loss widen to INR 840.1 Cr in the June quarter (Q1) of the financial year 2024-25 (FY25), up 134% year-on-year from INR 358.4 Cr in the year ago-period.

Revenue from operations dropped 36% in Q1 FY25 to INR 1,502 Cr from INR 2,342 Cr in the corresponding quarter last year.

Sequentially, Paytm’s consolidated net loss surged 52.6% while revenue from operations plummeted 33.7%.

The post Paytm Gets Govt Nod For INR 50 Cr Investment In Its Payments Arm, Stock Rallies 10% appeared first on Inc42 Media.

Legal troubles mounted for cash-strapped hyperlocal delivery startup Dunzo this week as another of its creditors moved the Bengaluru Bench of the National Company Law Tribunal seeking initiation of insolvency proceedings against the company.

Dunzo’s creditor Invoice Discounters of Dunzo Digital on July 22 (Monday) filed an interlocutory application under section 7 of Insolvency and Bankruptcy Code, 2016, alleging that the Reliance Retail-backed startup has only cleared half of the dues it owes, Mint reported.

However, it is yet to be ascertained how much money was owed to Dunzo’s creditor.

According to the report, the lawyer representing Dunzo argued before the NCLT that settlement talks between both the parties were underway and sought two weeks to reach an agreement with its creditor.

However, the bench of justices K Biswal (judicial) and Manoj Kumar Dubey (technical) declined to grant further time for settlement and scheduled the final hearing on the matter for August 6.

According to an NCLT order dated May 25, both the creditor and debtor had sought more time to reach a settlement on the ground that were talks were going on. At the time, the bench had directed Dunzo to reply to the insolvency plea within two weeks in the event of no settlement.

However, on June 19, Invoice Discounters informed the tribunal that the settlement talks fell through. The NCLT order then said that Dunzo has forfeited its right to file a reply.

The development comes days after Betterplace Safety Solutions moved the NCLT in Bengaluru against Dunzo for unpaid dues worth INR 4 Cr.

Earlier this year, Dunzo was dealt a body blow with its key investor Lightbox exiting the company’s board. The company has been facing a cash crunch. Vendors such as Google India, Nilenso, Clover Ventures, Facebook India, Cupshup, Koo, and Glance are collectively owed amounts totalling approximately INR 11.4 Cr.

The financial strain on the Bengaluru-based quick commerce startup is evident from its FY23 numbers. Dunzo incurred a staggering loss of INR 1,801 Cr in FY23, a sharp increase from INR 464 Cr in the preceding fiscal year.

The post Dunzo In Insolvency Soup Again As Another Creditor Files IBC Application appeared first on Inc42 Media.

Jaipur-based D2C men’s grooming brand Menhood has become the latest new-age tech startup to list on NSE Emerge. After its listing at INR 96 apiece, a 28% premium to its issue price of INR 75, on July 24 (Wednesday), the stock ended its second trading session at INR 101.65 apiece.

Shares of Macobs Technologies, the parent company of Menhood, gained almost 5% on the first day of trading.

The stock jumped almost another 5% to reach an intraday high of INR 105.8 apiece on Thursday (July 25) but shed most of the gains to end 0.8% higher today.

Concluded last week, the IPO of Macobs Technologies saw strong investor interest and was oversubscribed 157.5 times. Investors bid for 40.89 Cr shares as against 25.95 Lakh shares on offer.

Founded in 2019 by Dushyant Gandotra, with the support of Divya Gandotra and Shivam Bhateja, Menhood offers a wide range of products in the male grooming and lifestyle segment such as trimmers, intimate perfumes, intimate wash and moisturisers.

The startup competes against the likes Bombay Shaving Company and Beardo.

Notably, Menhood is the third startup to go for an NSE Emerge listing this year after TAC Infosec and Trust Fintech. It’s also the seventh startup to have made its stock market debut this year, joining the likes of TBO Tek, Go Digit, Awfis and ixigo.

The listing comes at a time when SME IPOs are on the rise in India. The cumulative amount raised by companies listing on SME platforms of exchanges jumped 128% year-on-year to INR 2,234.92 Cr in the financial year 2022-23 (FY23), according to data from Prime Database. This number jumped further and more than doubled to INR 5,996.84 Cr in FY24.

The ongoing fiscal year has already seen 56 SME issues amounting to INR 1,632.54 Cr.

The post Menhood Shares Jump 5% Intraday In Second Trading Session After A Strong Debut On NSE Emerge appeared first on Inc42 Media.

Karnataka’s information technology and biotechnology (IT-BT) minister Priyank Kharge said that the state government has provided seed funding worth INR 264 Cr to 983 startups till date.

The minister made the remarks during the ELEVATE winners’ felicitation ceremony held on July 24 in Bengaluru. 

The ELEVATE scheme was launched by Karnataka’s department of electronics information technology biotechnology and science technology. Its goal is to provide support to entrepreneurs across the state who need early-stage funding to develop prototypes, strategise market entry, and scale up. 

The initiative is also backed by the department of social welfare and backward class welfare, and the Kalyana Karnataka Region Development Board. 

Of the total funding, the Karnataka government provided an aid of INR 60 Cr to 263 startups under its ELEVATE scheme in 2022 and 2023.

Of these, 47 startups were led by women entrepreneurs and 119 startups were based out of Tier I, II cities in the state.

The Karnataka government provided grants worth INR 4 Cr to 26 startups under its Amrita Startups 2022 (entrepreneurship and innovation by OBC entrepreneurs) scheme.

Meanwhile, funds worth INR 4 Cr were allocated to 19 startups under the ELEVATE Kalyana Karnataka 2022 (supporting entrepreneurship in North Karnataka) scheme.

Further, the government provided funding of INR 5.5 Cr to 17 startups under the ELEVATE Unnati (identifying and nurturing startups led by SC & ST entrepreneurs) programme, and INR 45.7 Cr to 201 startups under the ELEVATE 2023 scheme.

The startups which have benefited from the ELEVATE scheme are working on emerging technologies across sectors such as cleantech, smart city solutions, IT/ITES, healthcare, biotechnology, medtech and agritech.

Meanwhile, Kharge also said that the government is looking at startups to solve the various problems faced by the state.

“We will come up with summits for innovations, urban solutions, water, and the circular economy. The idea of these summits is to solve real-life problems. We will also conduct small challenges to address issues affecting the government and our people, which startups could help solve,” Kharge was quoted as saying by Moneycontrol.

Last month, Kharge said Karnataka is expected to attract investment of $6.2 Bn in technology sectors such as biotechnology, AI, semiconductors, AVGC (animation, visual effects, gaming, and comics), and healthtech from the US and Europe. 

Notably, Benglauru continues to be the top startup hub of India. In the first half of 2024, Benglaluru-based startups raised $1.57 Bn across 134 deals.

The post Karnataka’s Total Funding Support To Startups Stands At INR 264 Cr appeared first on Inc42 Media.

Bengaluru-based two-wheeler electric vehicle (EV) manufacturer Ather Energy’s net loss widened 22.5% in the fiscal year ended March 31, 2024 (FY24), as per the annual report of Hero MotoCorp.

The EV manufacturer’s net loss jumped to INR 1,059.7 Cr in FY24 from INR 864.5 Cr in FY23, as per the report. Hero MotoCorp owns 40.89% stake in Ather Energy on a fully-diluted basis.

The startup’s revenue from operations rose 0.3% to INR 1,789.10 Cr during the year under review from INR 1,783.60 Cr in FY23.

Ather Energy is yet to file its financial statements for FY24 with the Ministry of Corporate Affairs. 

Ather Energy cost Hero MotoCorp INR 389.77 Cr in losses in FY24 versus INR 192.5 Cr a year ago, as per the annual report.

Despite mounting losses, Hero MotoCorp continues to increase its stake in Ather Energy. In June, Hero MotoCorp announced an additional 2.2% stake acquisition in Ather for INR 124 Cr.

Founded in 2013 by Tarun Mehta and Swapnil Jain, Ather Energy is a major player in the Indian two-wheeler EV market and currently offers two escooters – Ather 450X and Ather 450S.

The startup has two manufacturing plants in Tamil Nadu with a combined capacity to produce 4.2 Lakh scooters annually. Now, it is planning to set up a third manufacturing facility in Maharashtra.

Additionally, Ather Energy has a network of 1,700+ fast charging stations across the country and plans to scale this number up to 5,000 by the end of the year.

The startup competes with the likes of Ola Electric, TVS Motor, Bajaj and Hero MotorCorp’s Vida.

This comes at a time when Ather is said to be eyeing a public listing in the second half of 2024 at a valuation of around $2 Bn. In the run up to its initial public offering (IPO) launch, the startup converted into a public entity last month.

The post Ather Energy’s Net Loss Widens 22.5% To INR 1,060 Cr In FY24 appeared first on Inc42 Media.

ONDC-connected marketplace Mystore has introduced an AI-powered semantic search feature on its buyer and seller apps to increase visibility of products.

Underpinned by Google Cloud’s GenAI platform Vertex AI, Mystore’s new feature aims to help sellers and buyers on the ONDC network by providing them with accurate query interpretation, tailored product recommendations to meet customers’ needs and quick search results to drive more traffic.

The integration of AI-based semantic search into the Mystore Seller App will help sellers improve their product visibility and sales on the ONDC Network.

By providing accurate and relevant product matches to buyers, Mystore’s new offering will further enhance the buying experience.

Commenting on the development, T Koshy, CEO of ONDC said, “Mystore’s … AI-powered semantic search on the ONDC Network … not only enhances the shopping experience but also levels the playing field for sellers of all sizes, enabling them to compete purely based on the relevance and quality of their products/services.”

“Google Cloud’s Vertex AI is enabling high quality searches for Mystore and ONDC enabling better discoverability and thereby enabling buyers and sellers to seamlessly connect on the platform,” said Bikram Singh Bedi, vice president and country MD at Google Cloud India.

Founded by Rajiv Kumar Aggarwal in 2022, Mystore offers ecommerce solutions to small and medium-sized enterprises (SMEs), direct-to-customer and (D2C) brands join the ONDC network and reach new customers pan-India.

With its buyer and seller app, Mystore enables seamless buying and selling via the ONDC network and also helps brands set up dealer-network-based quick commerce platforms.

Mystore CEO Aggarwal said that its AI-powered semantic search tool can increase ecommerce conversion rates by up to 25% and boost buyer engagement by providing highly relevant search results.

This comes a month after the Centre launched a new initiative to onboard 5 lakh micro and small businesses onto the ONDC platform. The MSME Trade Enablement and Marketing (TEAM) scheme aimed at facilitating this, was launched by Union Minister for Micro, Small & Medium Enterprises (MSMEs) Jitan Ram Manjhi with a budget of  INR 277 Cr for three years.

The post Mystore Rolls Out AI-Powered Semantic Search To Increase Product Visibility On ONDC appeared first on Inc42 Media.

Listed fintech major Paytm has been slapped with multiple fines for failing to pay stamp duties pertaining to allotment of equity shares following exercise of employee stock options (ESOP) granted by the company in previous years.

Paytm, in an exchange filing, said that the Office of Collector of Stamps in New Delhi levied a fine of INR 250 for non-payment of stamp duty worth INR 199 upon allotment of 3,828 equity shares on December 18, 2017.

In another exchange filing, Paytm said an additional penalty of INR 370 has been imposed for similar non-compliance.

These stock options were granted under the Paytm Employee Stock Options Scheme 2008, the filing showed.

Paytm said that there was a delay in submission of some applications for payment of stamp duties at the relevant time.

The company said it may receive more such orders in the future as the Office of Collector of Stamps in New Delhi is currently processing its applications.

This comes just days after Paytm got a show cause notice from market regulator SEBI in relation to the 2.1 Cr stock options granted to the company’s founder and CEO Vijay Shekhar Sharma in the fiscal year ended March 2022 (FY22).

Earlier this month, Paytm also received an administrative warning letter from SEBI over related party transactions conducted by the company with its subsidiary Paytm Payments Bank in FY22.

Paytm’s consolidated net loss widened 134% year-on-year to INR 840.1 Cr in the quarter ended June 2024 (Q1 FY25) as compared to INR 358.4 Cr in the year ago-period.

Revenue from operations declined 36% in Q1 FY25 to INR 1,502 Cr from INR 2,342 Cr in the corresponding quarter last year.

Sequentially, Paytm’s consolidated net loss surged 52.6% while revenue from operations plummeted 33.7%.

Earlier this week, Paytm parent One97 Communications partnered with Axis Bank to offer point of sale solutions and card payment machines to its merchant network.

The post Paytm Slapped With Fine For Not Paying Stamp Duties appeared first on Inc42 Media.