The Good Glamm Group-owned D2C feminine hygiene startup Sirona’s net loss surged 97% to INR 33.10 Cr in the financial year 2022-23 (FY23) from INR 16.83 Cr in the previous fiscal year on account of higher cash burn.

The D2C brand’s operating revenue grew 81% to INR 75.28 Cr during the year under review from INR 41.51 Cr in FY22. 

While the startup earned a majority of revenue from the sales of its products in India, it also managed to bolster its international play during the year under review. It earned over INR 10.77 Cr from trade outside India, almost double from the INR 5.57 Cr it earned in FY22. 

Including other income, total revenue grew 80% to INR 75.75 Cr in FY23 from INR 42.20 Cr in the previous fiscal year. 

Founded by Deep Bajaj and Mohit Bajaj in 2015, Sirona sells an array of female hygiene products such as herbal pain relief patches, period stain remover, oxo-biodegradable sanitary napkins and menstrual cups.

Content-to-commerce platform The Good Glamm Group first acquired a stake in the startup in December 2021 by investing INR 100 Cr. It increased its stake in Sirona to 50.58% by the end of FY23 from 41.15% at the start of the fiscal year.

However, earlier this year, the founders of Sirona, along with another startup acquired by The Good Glamm Group – The Moms Co, and the Indian Angel Network (IAN), reportedly filed default notices against the content-to-commerce platform. They claimed that The Good Glamm Group did not make the final payments due to them.

Despite the rise in its loss in FY23, Sirona acquired vegan condom brand Bleü in May 2023 to enter the sexual wellness category. 

Where Did Sirona Spend?

The startup’s total expenses zoomed over 86% to INR 108.85 Cr in FY23 from INR 58.50 Cr in the previous fiscal year.

Advertising Expenses: Advertising and promotional activities continued to be the focus of the D2C brand in FY23. Its ad expenses shot up 83% to INR 30.90 Cr during the fiscal from INR 16.85 Cr in FY22. 

Employee Expenses: The D2C startup managed to decrease its employee expenses by 13% to INR 9.82 Cr in FY23 from INR 11.29 Cr in the previous year.

Miscellaneous Expenses: The expenses under this head, which included bad debts written off, assets written off, contractual staff costs, saw a big increase. The startup spent INR 13.98 Cr on these expenses in FY23 as against INR 2.99 Cr in the previous year. Its provisions for doubtful debt jumped to INR 37.63 Lakh from INR 4.03 Lakh in the previous fiscal.

Purchase Of Stock In Trade: The expenses under this bracket shot up to INR 32.89 Cr for Sirona in the fiscal, an increase of 73% from INR 18.92 Cr it spent to make the purchases of finished goods required for conducting its business in FY22.

Sirona competes with the likes of Soothe, Paree, Sofy, and Evereve. As per estimates, the country’s feminine hygiene market is expected to reach $1.79 Bn by 2029, growing at a CAGR of 14.85% from 2024.

Meanwhile, Sirona’s parent The Good Glamm Group saw its net loss widen 153% to INR 917 Cr in FY23 from INR 362.5 Cr in the previous fiscal year. Operating revenue rose 185% to INR 603 Cr from INR 211.4 Cr in FY22. 

The post Sirona FY23: Net Loss Almost Doubles To INR 33.10 Cr, Revenue Up 81% YoY appeared first on Inc42 Media.

Bengaluru-based spacetech startup GalaxEye has raised $6.5 Mn (about INR 55 Cr) in its ongoing Series A funding round, led by venture capital firm Mela Ventures and existing investor Speciale Invest.

The round also saw participation from listed dronetech startup ideaForge, Rainmatter Capital, Navam Capital, Faad Capital, and Anicut Capital.

The startup said it plans to close the funding round by September this year but didn’t disclose the amount it is looking to raise. 

Founded in 2021 by Suyash Singh, Denil Chawda, Kishan Thakkar, Pranit Mehta, and Rakshit Bhatt, GalaxEye claims to be building the world’s first multi-sensor earth observation satellite. Besides, it also aims to have a constellation of indigenous micro-satellites with data fusion capabilities.

GalaxEye CEO Suyash Singh told Inc42 that the fresh capital will help the startup launch its first satellite, Drishti Mission, by mid-2025. 

Initially, the startup planned to launch its first satellite in the September quarter of 2023. Responding to a question on the delay, Singh said, “Satellite launch is a highly complex procedure and requires a whole set of mechanics to fire at the right time together. For us, we have been seeing complications at all sides of the launch like delays in vendors sending in components, in testing, among others. The funding will allow us to realise the launch soon enough.” 

Besides the launch, the startup also plans to use the funds to expand its team. 

Singh said that the experience of Mela Ventures’ managing partners Parthasarathy NS and Krishnakumar Natarajan, who previously founded listed IT company Mindtree, will help GalaxEye in its growth journey. 

Commenting on the investment, Natarajan said, “The MSI/SAR technology of GalaxEye can help defence, maritime, insurance and agriculture with real-time visibility and significantly reduce their response time. We look forward to being part of the journey and are excited to see the ‘Drishti Mission’ satellite reach space.” 

Earlier this month, Inc42 reported that ideaForge had picked up a minority stake in the IIT Madras-incubated GalaxEye for INR 8.28 Cr. The investment was part of the ongoing Series A round.

It is pertinent to note that ideaForge also inked an agreement with GalaxEye in September last year to jointly develop an unmanned aerial vehicle with Foliage Penetration Radar. Singh said that the product is now in the final stages of development and will be launched in the market soon. 

While GalaxEye’s primary focus is on building a viable business from its satellite launch, it is also looking at other industries and sectors that can benefit from its data-as-a-service solutions. 

Singh said that the startup is also keenly watching the government’s measures to promote public-private partnerships in the homegrown spacetech sector. 

Earlier this year, GalaxEye also signed an agreement with the Innovations for Defence Excellence (iDEX) to build a multi sensor fusion processing system for miniature satellites that would be capable of carrying multiple payloads of up to 150 kg for the Indian Air Force (IAF).

Prior to this funding round, GalaxEye raised $3.5 Mn in its seed funding round in 2022. It is among a number of homegrown spacetech startups like Agnikul Cosmos, Dhruva, Pixxel that have emerged over the last few years. These startups are eyeing a pie of the country’s burgeoning spacetech market, which is expected to become an over $77 Bn opportunity by 2030.

The post GalaxEye Bags $6.5 Mn From Mela Ventures, Others To Launch Its First Satellite appeared first on Inc42 Media.

Ola Electric CEO Bhavish Aggarwal has called geotech company MapmyIndia’s move to send a legal notice to the IPO-bound electric vehicle (EV) manufacturer opportunistic.

Addressing media questions at a pre-IPO press conference, Aggarwal said, “We think it is very opportunistic of them given that Ola Electric is not even in the map business. We as a group have three different entities, Ola Cabs, Ola Electric, and Krutim. There are opportunistic players across the board and we will definitely respond to them at the right time.” 

On July 29, MapmyIndia’s parent entity CE Info Systems accused Ola Electric of illicitly copying its data to build its recently launched Ola Maps interface. The company sent a legal notice to Ola Electric for co-mingling and reverse engineering its licensed product.

Ola Electric then called the allegations “false, malicious and misleading”. “We would like to state unequivocally that these allegations are false, malicious and misleading. Ola Electric stands by the integrity of its business practices. We will suitably respond to the notice shortly,” a company spokesperson said. 

It is pertinent to note that the two warring companies inked an agreement in June 2021, which gave Ola Electric the licence to use MapmyIndia’s data . 

Ola Electric’s Attractive IPO Pricing

Meanwhile, Ola Electric is set to make its public market debut. The company’s IPO will open on August 2 and close on August 6. The EV maker has set a price band of INR 72-76 per equity share for the public offer via which it is aiming to raise over INR 6,145.6 Cr at the upper end of the price band.

On the pricing of the public offer, Aggarwal said that the company has a very big opportunity to grow and it wanted to keep the pricing attractive. 

“Ola Electric is essentially an India story and we wanted the Indian investor community to be part of the story. We want their partnership, we want their support, and we also want them to also create wealth for themselves… We wanted to price it so that the investor community feels excited about it,” he said. 

However, the company is looking for a listing at a time when its losses are widening. For the financial year 2023-24 (FY24), Ola Electric’s net loss widened 7.6% to INR 1,584.4 Cr from INR 1,472.1 Cr in the previous year.

While its topline surged over 90% to INR 5,009.8 Cr in the fiscal, its total expenses also shot up over 60% to INR 6,277.4 Cr from INR 3,883.4 Cr in the previous year.

A majority of its burn is attributed to the jump of over 75% in the cost of materials consumed, which stood at INR 4,390.9 Cr during the year under review from INR 2,504.8 Cr in FY23.

Ola Electric’s Dependency On China

As per the RHP, Ola Electric’s imported supplies accounted for 37.03% (a majority of it from China) of the cost of materials consumed in FY24 as against 31.11% in FY23. Meanwhile, domestic supplies comprised 62.97% of the cost of materials consumed in FY24 as compared to 68.89% the previous year.

Addressing a question on the dependence on China, Aggarwal said he anticipates the dependence on China to reduce in the long term. Breaking the process of building electric batteries into three parts, he said that the majority of the company’s dependence on China is for processing raw materials to build cell components (midstream process). 

He said that the company is currently looking to bring the process of assembly of the battery cells, the “Level I” of battery manufacturing, in India via its Gigafactory. Post that, he said that the company plans to bring the midstream process to the home soil as well. 

Aggarwal also lauded the government’s decision to quash custom duties on the import of key minerals required for EV battery manufacturing. He said that the move will benefit the company’s push to Indianise battery production.

The post Ola Electric’s Bhavish Aggarwal Calls MapmyIndia “Opportunistic” For Sending Legal Notice appeared first on Inc42 Media.

Online brokerages are likely bracing for a major impact on their revenues as the Securities and Exchange Board of India (SEBI) has further ramped up efforts to curb the futures and options (F&O) mania in India.

On Tuesday (July 30), the market regulator floated a consultation paper outlining seven recommendations to overhaul the index derivatives framework in a bid to increase investor protection and market stability. 

The suggestions include several changes to the existing system, such as upfront option premium collection, enhanced monitoring of position limits, increasing minimum contract sizes for F&Os, abolishment of calendar spread benefit, among others. 

The markets regulator has sought feedback from industry stakeholders, investors and the general public on the draft paper by August 20. Post that, SEBI will look at issuing final regulations. 

Before delving into the impact the latest draft norms will have on the homegrown investment tech space, let’s take a look at the seven suggestions made by the markets regulator:

1. Strike price rationalisation for options: Strike price intervals are to be distributed 4% around the index price. The interval will be increased to 8% as strikes move away from prevailing prices. 
2. Upfront collection of options premium: Upfront collection of options premiums, which is the fee that the buyer pays to the seller for the right to buy or sell a share, by sellers. 
3. Removal of calendar spread benefit on expiry day: Calendar spread position, buying and selling an option at the same strike price either in short term or long term to be struck out for positions involving contract expiration on the same day. 
4. Intraday monitoring of position limits: Position limits, a limit set by stock exchanges on share or options holding, to be monitored on an intraday basis as against the current procedure of evaluation at the end of day. 
5. Minimum contract size: SEBI has proposed the revision of minimum contract size for index derivative contracts in a phased manner. Under Phase 1, which will span a period of six months post the implementation of the draft norms, the F&O lot sizes will be set in the range of INR 15 Lakh to INR 20 Lakh. After that, Phase 2 will kick into effect and the lot sizes will increase to INR 20 Lakh to INR 30 Lakh. This translates to increasing the minimum quantity of shares that one can buy or sell as per terms of the contracts in a phased matter.

6. Rationalisation of weekly index products: Weekly options to be provided on a single benchmark index of an exchange. 
7. Extension of margins for contract expiry: Extreme loss margin (ELM), which is the additional margin charged by exchanges, to be increased by 3% at the start of the day before expiry day and 3% further on the day of expiry of the contract. 

While the recommendations are yet to be debated, they are expected to weigh heavily on online brokerage firms. For context, investment tech platforms such as Zerodha, Groww, Angel One, Dhan derive a large part of their revenues from F&O trading. 

Industry sources recently told Inc42 that F&O and intraday traders account for more than 80% of user growth and revenue for Zerodha, Groww and Angel One. 

Proposed Rules To Affect Volumes

Commenting on the development, Zerodha cofounder and CEO Nithin Kamath said that the draft norms will have an adverse impact on future trading and not so much on options trading. 

Citing trading patterns on Zerodha, Kamath, in a post on X, said that while futures traders are profitable 50% of the time, options traders are only profitable about 10% of the time. 

“If the intent is to reduce speculation, then the solution is maybe to make it harder for non-serious people to trade by having a product suitability framework,” he said. 

Meanwhile, Fintrekk Capital founder Amit Kumar told Reuters that the proposed changes will “bring down retail volumes on options, hit many high frequency traders and people who use algorithms for trades as well as exchanges”.

Additionally, the proposed mandates are expected to increase regulatory compliance and tax burden for these tech platforms, which may inevitably be passed on to the end customers.

SEBI’s latest draft rules are part of its larger crackdown on F&O trading. On July 1, the markets regulator barred market infrastructure institutions from offering discounts based on trading volumes or activity of its members to tackle the massive surge in futures and options trading. The move is likely to bring an end to the zero-brokerage facility. 

The regulator justified its crackdown in a research paper later. “For FY24, 92.50 Lakh unique individuals and proprietorship firms traded in index derivatives segment of NSE and cumulatively incurred a trading loss of INR 51,689 Cr…Further, of these 92.50 Lakh unique investors, 14.22 lakhs investors made net profit, that is, approximately 85 out of 100 made a net trading loss,” it said. 

The investment tech ecosystem also received another jolt after the Union Budget hiked capital gains tax (LTCG), and securities transaction tax (STT) on futures and options trading. 

The post SEBI Floats Paper To Clamp Down On F&O Trading; Online Brokerages To Take A Hit appeared first on Inc42 Media.

Update | July 30, 05:45 PM: The story has been edited to add Binance’s response.

Caught in the midst of a $230 Mn crypto heist, cryptocurrency exchange WazirX has reportedly approached Binance for help to bail out the affected customers.  

Citing industry sources, Moneycontrol reported that Binance controls a surplus of WazirX’s revenue and its crypto token WRX. 

It is pertinent to note that the exchange is involved in a legal battle with Binance.

“Their legal dispute is still ongoing. There are components of WazirX’s business which are still under Binance’s control, including the revenue — the surplus of it. Even its WRX token is under their control. So they have reached out to Binance and the talks are on but at early stages,” a source was quoted as saying. 

The report added that Binance held $80 Mn worth WazirX tokens on the day of the crypto hack. This compromised WazirX’s capability to use its own funds to pay back some part of the customer assets. 

However, Binance said it does not control any aspect of WazirX’s business or operations. Responding to Inc42’s queries on the development, the crypto giant said that it has been in communication with WazirX since July 18.

“We have been in communication with the WazirX team since July 18 to support their incident response effort… Binance does not manage or control any aspect of WazirX’s business or operations, including WazirX’s user funds,” a company spokesperson told Inc42.

WazirX is yet to revert to Inc42’s queries on the matter. 

WazirX’s crypto debacle happened on July 18 when a security breach impacted one of its wallets Safe Multisig on the Ethereum network, resulting in the loss of user funds.

Following this, WazirX cofounder Nischal Shetty said North Korea’s Lazarus Group was likely behind the heist. The North Korean group is known for carrying out some of the world’s largest crypto exchange attacks in the past.

While users are pressuring WazirX to pay them back, US’ Federal Bureau of Investigation (FBI) has also initiated its probe on the nature of the cyberattack. 

Besides initiating bail out discussion with Binance, the exchange has also announced a prize of $23 Mn as a part of its bounty programme to recover the  assets stolen during the attack. This bounty programme will be active for three months starting from July 21, with the potential for extension or reduction based on the progress of the recovery, the company said in a statement.  

However, Binance and WazirX have been on each other’s throats since the past few years. WazirX was supposedly acquired by Binance in November 2019. However, Binance CEO Changpeng Zhao said in 2022 that his company did not acquire WazirX. Zhao’s statement came after the Enforcement Directorate froze WazirX’s assets worth INR 64.67 Cr in connection with a money laundering case.

However, WazirX Shetty refuted this and said owns WazirX’s domain name, root access to AWS servers, crypto assets and crypto profits. 

Subsequently, Binance terminated wallet services for Zanmai Labs, parent entity of WazirX, in 2023. The crypto giant directed Zanmai Labs to withdraw all funds held in Binance wallets for WazirX’s operations.

Later, Shetty said he would seek legal recourse against Binance. “The allegations made by Binance in their blog are false and unsubstantiated. As far as Binance’s actions are concerned, we are taking the necessary steps to seek recourse and protect our legal rights,”

The post [Update] Crypto Heist: WazirX Seeks Help From Binance To Bail Out Customers appeared first on Inc42 Media.

In another setback for the embattled edtech startup BYJU’S founder Byju Raveendran, the Karnataka High Court today disposed of his appeal to suspend National Company Tribunal (NCLT) order, which admitted insolvency resolution process earlier this month. 

The matter was heard by a single bench of Justice S R Krishna Kumar. After understanding that a special bench constituted by National Company Law Appellate Tribunal (NCLAT) is already hearing the matter, the judge reportedly disposed of Raveendran’s plea. However, the court granted Raveendran a liberty to revive the petition later. 

“Having regard to the undisputed fact that appeal is filed before NCLAT and it has been taken up for consideration today and kept for hearing tomorrow. Petition is disposed off with liberty to revive the petition if occasion arises,” the judge was quoted as saying by a LiveLaw report.

While Raveendran’s appeal to the Karnataka HC went without avail today, proceedings at NCLAT didn’t bear much fruit for the troubled startup. According to reports, the Board of Control for Cricket in India (BCCI) informed the tribunal’s bench today that it is in initial settlement talks with Byju Raveendran to settle the dispute.

On account of these preliminary discussions, the solicitor general Tushar Mehta, who appeared for BCCI, suggested the matter to be heard on July 31, which the tribunal agreed upon. 

Meanwhile, the company’s US based lenders also added to the courtroom drama for the crushed startup. Counsel appearing for them sought to appeal the NCLT’s order disposing of their insolvency plea as BCCI’s insolvency plea had already been admitted. 

The company’s tryst with NCLAT yesterday led to another setback for it when NCLAT’s justice Sharad Kumar Sharma recused himself from hearing the former’s plea challenging the order to initiate bankruptcy proceedings against the edtech firm.

At the heart of the issue is the NCLT’s order which admitted BCCI’s petition to initiate the corporate insolvency resolution process (CIRP) against BYJU’S for not paying the dues to the cricket board. BYJU’S owes INR 158.9 Cr to BCCI for sponsorship of the Indian cricket team.

Meanwhile, it disposed of the insolvency plea initiated by the company’s US based lenders, represented by GLAS Trust, on July 16. While disposing of the plea, the NCLT allowed the lenders to put forth their claims before the interim resolution professional (IRP) appointed for the company.

Shortly after the order, Raveendran challenged the tribunal’s decision in front of the Karnataka HC. In his filing, he said that the move will also result in a “total shutdown” of the edtech startup’s operations. The court dismissed the plea shortly afterwards, which led the startup to knock on the doors of the NCLAT.

The post BYJU’S Courtroom Drama: Karnataka HC Disposes Of Byju Raveendran’s Plea appeared first on Inc42 Media.

Cybersecurity startup WhizHack has raised $3 Mn (INR 25.1 Cr) in its Pre-Series A funding round from existing investor SAAA Capital. 

As per the company, the amount was raised at a valuation of $100 Mn. 

Founder Kallol Sil said that the startup will deploy the fresh capital to charge its research and development by collaborating with universities based in India and the US. 

He also claimed that the startup is now looking to raise a successive Series A funding round in “early 2025”. The round will allow the startup to expand into North America and Europe. 

As of now, the startup claims to have grown its business from both enterprise and government clients by over 200% annually and shareholder value by over 50X in the past three years. 

“The past year, we have had remarkable success in winning extremely strategic customers, from diverse segments like banking, manufacturing, FMCG, airports, power SOCs and state Governments against some of the most vaunted global players in cybersecurity,” he said. 

This comes about one and a half year after the startup raised the same amount from existing investor Vedswasti Holdings and SAA Capital. It raised $3 Mn in a Pre-Series A funding round back in January 2023 at a valuation of $40 Mn. 

“WhizHack has delivered exceptional growth for us on the back of their in-house developed suite of cyber security products and services that compete toe to toe with global players,” SAAA Capital’s managing director Ashish Patil said. 

Founded in November 2020 by Kaushik Ray, Sanjay Sengupta and Kallol Sil, WhizHack manages three divisions–ZeroHack, TRACE and Cyber Range. Under these divisions, it offers security solutions, builds security product IPs and offers a mix of online security training to business enterprises and students. In India, it competes with the likes of Kratikal, Hicube and Skylark, among others. 

It counts several IITs, National Power Training Institute (NPTI), Data Security Council of India, and Microsoft as its partners. 

The increased investor interest in the cybersecurity startups comes at a time when incidents related to digital breaches have become more common at a global scale. Most recently, big tech Microsoft has suffered a major global outage in its services, primarily impacting users of its software offering Microsoft 365. 

The outage impacted industries like airline operations as well as India’s brokerage business. Globally, the damages were higher, with even the London Stock Exchange (LSE) being down for several years. The outage was directly caused by a cybersecurity related discrepancy. 

Besides another cybersecurity incident at crypto exchange WazirX led to the loss of nearly $240 Mn for its user base earlier this month. 

The post Cybersecurity Startup WhizHack Raises $3 Mn At $100 Mn Valuation appeared first on Inc42 Media.

Ride-hailing startup Rapido has bagged a funding of $120 Mn (about INR 1,000 Cr) from existing investor WestBridge Capital at a post-money valuation of a little over $1 Bn.

The investor poured in the fresh capital by participating in Rapido’s Series E funding round through three of its related entities – Setu AIF Trust, Konark Trust, and MMPL Trust, as per regulatory filings.

Rapido’s parent entity Roppen Transportation Services Pvt Ltd allotted 95,479  Series E compulsorily convertible preference shares (CCPS) and 95,489 Series E1 CCPS to the three WestBridge Capital entities on July 18. This cumulatively translates to INR 1,002.00 Cr.

Of this, the startup has received about INR 500 Cr, while the remaining amount will be received when called upon. 

With this, the startup has become the third unicorn of 2024 and 116th Indian unicorn. Krutrim AI and Perfios are the two other startups which entered the unicorn club earlier this year. 

Meanwhile, ET reported that Rapido is in talks with investors to raise another $20 Mn. “A US-based family office and a UK-based fund are in talks to pick up stakes in the company,” a person aware of the matter was quoted as saying. 

Inc42 has reached out to Rapido for a comment on the development. The story will be updated on receiving a response. 

Rapido counts the likes of Swiggy, TVS Motors, Nexus Ventures, and Shell Ventures among its investors. The bike taxi startup last raised $180 Mn in a funding round led by Swiggy in participation from TVS Motors, WestBridge Capital, Nexus Ventures, and Shell Ventures back in April 2022. 

Founded in 2015 by Rishikesh SR, Pavan Guntupalli, and Aravind Sanka, the startup  primarily operates in the bike taxi and auto transportation segments. In December last year, it also launched cab services in some cities. In addition, it also offers peer-to-peer delivery services via Rapido Local. 

On the financial front, Rapido’s net loss widened more than 50% to INR 674.5 Cr in the financial year 2022-23 (FY23) from INR 439 Cr loss in the previous fiscal year. Operating revenue shot up 3.05X to INR 443 Cr from INR 144.8 Cr in FY22.

The post Rapido Enters Unicorn Club By Raising $120 Mn From WestBridge Capital appeared first on Inc42 Media.

Listed geotech company MapmyIndia’s parent entity CE Info Systems has reportedly accused Ola Electric of illicitly copying its data to build its recently launched Ola Maps interface. 

According to a report by Forbes India, the startup has sent a legal notice to IPO-bound Ola Electric for co-mingling and reverse engineering its licensed product. 

“You have duplicated our client’s API (application programming interface) and SDKs (software development kits) from proprietary sources belonging to our client to build OLA Maps. It is firmly stated that our client’s exclusive data has been copied/derived by you to further your illegal motive and for your unjust commercial gains,” CE Info Systems’ legal notice to Ola Electric read. 

The notice is also said to contest the EV startup’s claim of developing its API and map data independently through open sources. “By indulging in such unscrupulous and illegal activities, you have acted in blatant defiance of the terms and conditions of the agreement and have further infringed the copyright vested exclusively in our client pertaining to the source code,” the notice added.

The report added that Ola Electric inked an agreement with the geotech company for using its data in June 2021. “You have misused the confidential information and the trade secrets, exclusively belonging to our client…The said illegal actions and the unfair trade practices adopted by you with the sole objective of unjustly enriching yourself to the detriment of our client’s business interest are unacceptable,” the notice said.

Meanwhile, Ola Electric called the allegations “false, malicious and misleading”. “We would like to state unequivocally that these allegations are false, malicious and misleading. Ola Electric stands by the integrity of its business practices. We will suitably respond to the notice shortly,” a company spokesperson said. 

MapmyIndia declined to comment on Inc42’s queries on the issue.

It is pertinent to note that MapmyIndia also entered into an agreement with ride-hailing giant Ola Cabs in 2015 to bolster its mapping capabilities. Under the partnership, Ola got complete access to mapping data from MapmyIndia through a multi-year (undisclosed) licence for an undisclosed amount.

Earlier this month, the ride-hailing startup fully exited Google Maps and moved to its in-house navigation platform, Ola Maps. 

“After Azure exit last month, we’ve now fully exited google maps. We used to spend INR 100 Cr a year but we’ve made that 0 this month by moving completely to our in-house Ola maps!,” founder Bhavish Aggarwal said. 

While Ola Maps is already powering the range of Ola Electric scooters, the company’s CEO and founder Aggarwal has also teased that more features such as street view, NeRFs (neural radiance fields), indoor images, 3D maps, drone maps, among others, will be added to Ola Maps.

With its mapping service, Ola plans to take on giants like Google Maps and MapmyIndia. To get more developers onboard Ola Maps, Aggarwal also announced a new pricing structure. 

In a blog post, Aggarwal announced updated pricing for Ola Maps subscription, which will be free for all developers for the first year. The company said that the new pricing slab will come into effect from July 18. 

Note: Update | July 29, 09:40 PM: The story has been edited to add Ola Electric’s response.

The post MapmyIndia Accuses Ola Of Data Theft To Build Ola Maps, Sends Legal Notice appeared first on Inc42 Media.

In a week in which finance minister Nirmala Sitharaman presented the first Union Budget of Modi government 3.0, new-age tech stocks rallied in line with the broader market and stock-specific developments.

Twenty one out of the 24 stocks under Inc42’s coverage ended the week with gains in the range of 0.26% to almost 11%. Shares of Paytm breached the INR 500 mark after a long time and the stock emerged as the biggest gainer this week with a 10.93% jump. Nykaa, Zomato and Mamaearth also rose this week.

Traveltech startups EaseMyTrip, Yatra, and ixigo gained this week after the finance minister announced a slew of initiatives in her budget speech to boost tourism.

The government announced support plans for comprehensive development of Vishnupad Temple Corridor and Mahabodhi Temple Corridor to boost the spiritual tourism sector. The finance minister allocated INR 2,479.62 Cr for the tourism sector for FY25, up 46% from the revised allocation of INR 1,692.10 Cr in FY24. 

Shares of geotech company MapMyIndia also soared over 5% this week as Sitharaman announced plans to digitise land records in urban India with GIS mapping.

Only three new-age tech stocks ended in the red this week – Awfis, TAC Infosec, and Yudiz, declining in a range of 0.8% to about 3%.

Meanwhile, the broader market continued its upward momentum this week. Sensex gained 0.9% to end at 81,332.72, while Nifty 50 rose 1.2% this week to end at 24,834.85.   

Commenting on the market performance this week, Geojit Financial Services’ head of research Vinod Nair said that the budget was both populist and prudent, and failed to spark any significant excitement in the market.

“The market has now recovered its losses from budget day, driven by positive US GDP data and expectations of improved global demand. Moving forward, the direction of the domestic market will likely be influenced by the progress of the earnings season,” he said.

Meanwhile, Prashanth Tapse, senior VP of research at Mehta Equities, said that Indian markets outperformed the global peers this week on the back of a strong buying support across the board. He attributed this resilience to the strong growth of the Indian economy and better-than-expected earnings reports of blue chip and mid-cap companies.

Amid the startup IPO rush, Jaipur-based D2C men’s grooming brand Menhood made iCts public market debut on the NSE Emerge this week and became the latest stock under Inc42’s coverage.

Overall, the total market capitalisation of the 25 new-age tech stocks under Inc42’s coverage stood at $63.27 Bn at the end of this week. The valuation of 24 new-age stocks stood at $60.99 Bn last week. 

Now, let’s take a deeper look at the performance of some of the listed new-age tech stocks this week. 

Paytm Gets Long-Pending Approval 

Shares of Paytm surged nearly 11% this week to cross the INR 500 mark after the company received the long-pending approval from the government to invest INR 50 Cr in its payments arm, Paytm Payment Services.

The stock surged 10% on Friday (July 26) after it was reported that the Vijay Shekhar Sharma-led company has secured the investment approval, which would allow it to apply for an online payment aggregator (PA) licence.

It is pertinent to note that Paytm reported an underwhelming financial performance in the first quarter of the fiscal year 2024-25 (Q1 FY25), with its net loss widening 134% year-on-year to INR 840.1 Cr.

Paytm was in the news this week for a number of other reasons: 

• Brokerage firms Emkay Global, JM Financial, and Motilal Oswal retained their “reduce”, “sell”, and “neutral” ratings on the stock, respectively, following the declaration of Q1 results.
• Paytm joined hands with Axis Bank to offer point of sale solutions and card payment machines to its merchant network on July 23.
• Paytm received a fine of INR 250 for failure to pay stamp duties pertaining to the allotment of ESOP granted by the company. Moreover, an additional penalty of INR 370 has been imposed for similar non-compliance.

Commenting on the stock’s performance, Amol Athawale, VP of technical research at Kotak Securities, said, “We maintain a neutral stance on Paytm, viewing the recent movement as a potential pullback or technical rebound. We anticipate short-term bullish trends to persist. It is difficult to predict in the long term as there’s been too much volatility in the stock.” 

Go Digit Posts Robust Q1 Numbers 

Insurtech unicorn Go Digit this week reported a 74% increase in its profit after tax (PAT) to INR 101 Cr in Q1 FY25 from INR 58 Cr in the year-ago quarter. Its net earned premium also rose to INR 1,824 Cr during the period under review from INR 1,475 Cr in the year-ago quarter. 

Following the disclosure of Q1 numbers on June 25, the stock rallied over 8% to touch INR 362.25 apiece during the intraday trading session on the BSE on June 26. Overall, Go Digit rose 0.26% this week to end at INR 345.45. 

Athawale said that Go Digit’s immediate resistance level is INR 370 and support for the stock is seen at INR 335. He added that the stock would see a strong rally if it breaches INR 375 mark, while it can come down to INR 310-315 on the lower level.

Menhood Makes A Strong Debut

D2C brand Menhood parent Macobs Technologies became the third new-age entity to list on NSE Emerge this week, after TAC Infosec and Trust Fintech.

Menhood’s IPO was oversubscribed 157.5X, with investors bidding for 40.89 Cr shares as against 25.95 Lakh shares on offer.

The D2C brand got listed at INR 96 apiece, a 28% premium to its issue price of INR 75. Since its listing on Wednesday, the startup’s share prices have spiked 9.84% to end the week at INR 105.45.

It filed its draft red herring prospectus (DRHP) in January 2024. Its IPO comprised a fresh issue of 25,95,200 equity shares of INR 10 each. 

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

The post New-Age Tech Stocks Rally In Budget Week, Paytm Emerges Biggest Gainer appeared first on Inc42 Media.

Investment activity across the Indian startup ecosystem redacted to an all year low in the budget week. Between July 22 and 27, startups managed to cumulatively raise a meagre $43.1 Mn via 12 deals, down 365% from $200 Mn raised across 25 deals in the preceding week. 

It is pertinent to note that seven of the deals materialised this week didn’t disclose the financial terms of their transactions. 

Funding Galore: Indian Startup Funding Of The Week [ July 22- July 27]

Key Startup Funding Highlights Of The Week

• Despite the plunge in overall funding aggregated, fintech emerged as an investor favourite in the week. The week’s top two fund rounds, Stable Money’s $14.7 Mn Series A round and NeoGrowth’s $11 Mn debt, took fintech to the top spot at a sectoral level.
• The week saw FAAD Capital backing four agritech startups with an infusion of over $121K. The firm’s investment turned agritech as the sector with the maximum number of deals and FAAD as the most active investor in the startup ecosystem.
• The week saw no seed funding deal materialise.

Other Major Developments Of The Week

• During the budget speech, finance minister Nirmala Sitharaman announced the setting up of an INR 1,000 Cr venture capital (VC) fund. She said that the government has increased its focus on the space economy and private sector-driven research and innovation at the commercial scale.
• Packaged food startup Wingreens Farms is eyeing the raise of $4.3 Mn debt from investors including S Gupta Family Investments, Saket Agarwal, Reena Singhal, Sanjeev Agarwal, among others
• In an exchange filing, beauty ecommerce major Nykaa said that it is looking to raise INR 125 Cr (about $15 Mn) via non-convertible debentures (NCDs) from an undisclosed foreign portfolio investor. Its board has approved and authorised the issuance of up to 12,500 NCDs at a face value of INR 1 Lakh each to raise the amount.
• Adtech unicorn InMobi-owned mobile content provider Glance is in advanced talks with existing investors, including Google, to raise $250 Mn. The talks are expected to materialise in the coming weeks.
• Former defence secretary Ajay Kumar led venture capitalist firm MountTech Growth Fund has marked the first close of its fund Kavach at INR 250 Cr (around $29.9 Mn). The VC is targeting a total corpus of INR 500 Cr for Kavach. 
• Electric mobility startup Kazam is raising $5 Mn in a funding round led by Licious and Vertex Ventures. It plans to use the capital to fuel its growth and expansion plans.
• PharmEasy-owned diagnostics platform Thyrocare Technologies is acquiring the Punjab-based pathology diagnostic business of Polo Labs to expand its presence in northern India.
• EV major Ola Electric is looking at a public listing as early as in the first fortnight of August. It plans to raise around $740 Mn via a combination of a fresh issue and an offer for sale.
• Captain Fresh is looking to acquire Poland-based food and beverage manufacturing company Koral to expand its footprint in the European market.

The post From Stable Money To Incuspaze – Indian Startups Raised $43 Mn This Week appeared first on Inc42 Media.

India is renowned for its rich culinary delights, with each state offering a diverse array of food and beverage (F&B) experiences. Despite this, the Indian palate craves more for fresh and exotic cuisines and flavours.

With over 140 Cr people having such affinity for a variety of food and beverages, Indian entrepreneurs have seemingly found a lucrative market, which, as per Inc42, is expected to grow to $68 Bn by 2030. Notably, startups have picked up this opportunity by catering to the requirements of people, through the D2C channels.

According to Inc42’s Findings From Inc42’s Hunt For India’s Fastest-Growing D2C Brands analysis, while the beauty and personal care segment is estimated to exhibit a CAGR of 28.6% by 2030 in the Indian D2C market, it is closely followed by the F&B industry with 27% CAGR.

From established brands like Pedigree Petfoods, Amul, Baskin Robbins, and McDonald’s to startups like iD Fresh Foods, Chaayos, Coolberg, and Paper Boat, there is no dearth of choices for Indian consumers, and still, there is enough headroom for both the existing and new players to flourish in the sector.

The above statement can be substantiated by the fact that several F&B startups, including Blue Tokai Coffee Roasters, Plix, Pluckk, and TagZ have been making waves in the industry, backed by investors’ trust.   

The influx of new startups with innovative product ranges has revitalised the sector, prompting Inc42 to compile a list of the F&B brands that are disrupting the Indian market.

With that said…

Here Are The F&B D2C Brands Reshaping The Indian Consumer Market

(Note: The list below is not meant to be a ranking of any kind. We have listed the Indian F&B startups in alphabetical order.)

1. Beyond Snack

• Year Of Inception: 2018
• Founders: Manas Madhu, Jyoti Rajguru, Gautam Raghuraman
• Funding Raised To Date: INR 33 Cr
• Investors: NABVentures, 100X.VC
• Headquarters: Kerala

Beyond Snack was incorporated to commercialise the popular South Indian snack, banana chips. The startup claims its banana chips are healthy because the nutrients are preserved during the manufacturing process. 

The bananas are sourced directly from farmers and the chips are prepared in under two minutes to retain their natural nutrients, unlike the usual 15-20 minutes of frying. This ensures the products go from farm to plate in less than 24 hours.

To ensure availability across the country, the startup has opened warehouses in Mumbai, Delhi, and Kolkata. As an omnichannel brand, its products are available on ecommerce platforms like Amazon, Flipkart, BigBasket, and Zepto, as well as in over 10,000 retail outlets, including DMart and Reliance stores.

Beyond Snack aims to become a leader in the banana chips market and reach INR 100 Cr in revenue by FY25.

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2. Boba Bhai

• Year Of Inception: 2023
• Founder: Dhruv Kohli
• Funding Raised To Date: INR 12.5 Cr
• Investors: Titan Capital, Arjun Vaidya, Varun Alagh
• Headquarters: Bengaluru 

Launched as a passion project by Dhruv Kohli in late 2023, Boba Bhai has swiftly become a notable player in the bubble tea market, capitalising on the growing trend for this popular Taiwanese drink.

Offering a diverse range of products priced between INR 99 and INR 219, Boba Bhai sets itself apart with its broad product selection and user-centric approach, distinguishing itself from competitors like Chai Point and Cha Bar.

In just one year, the startup has built a substantial customer base of over 4 Lakh and achieved revenues of INR 8 Cr. With plans to significantly expand its presence, Boba Bhai aims to increase its offline footprint to 80-100 stores by the end of 2024, seeking to further boost its revenue and market reach.

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3. Burger Singh

• Year Of Inception: 2014
• Founders: Kabir Jeet Singh, Nitin Rana, Rahul Seth
• Funding Raised To Date: INR 30 Cr + undisclosed
• Investors: RB Investments, Rukam Capital, KCT Family Office, and V.M. SALGAOCAR family office
• Headquarters: Gurugram

Established in 2014 by Kabir Jeet Singh, Nitin Rana, and Rahul Seth, Burger Singh is a Gurugram-based quick-service restaurant (QSR) chain.

In 2019, the company secured an undisclosed amount of funding from RB Investments, based in Singapore. Subsequently, in 2022, Burger Singh successfully raised INR 30 Cr in its Series A funding round. The round was led by Negen Capital, accompanied by LetsVenture, Mumbai Angels, Old World Hospitality, and musician Jasleen Royal.

Following the fundraising in 2022, the fast-food chain announced its plan to utilise the funds for opening 120 new food outlets by the end of FY23.

As of July 2022, Burger Singh boasted more than 80 exclusive food outlets and 12 franchisees across various locations in India.

In the competitive QSR industry, Burger Singh faces competition from well-known brands such as Burger King, McDonald’s, Subway, Domino’s, and KFC.

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4. Chaayos 

• Year Of Inception: 2012
• Founders: Nitin Saluja, Raghav Verma 
• Funding Raised To Date: $98 Mn
• Investors: Alpha Wave Ventures, Elevation Capital, Think Investments, Tiger Global, Integrated Capital, SAIF Partners, InnoVen Capital, Pactolus, Sachin Shukla, Bhavish Aggarwal, Ankit Bhati
• Headquarters: Delhi

F&B brand Chaayos sells multiple types of teas and pre-packaged food products via offline and online marketplaces and uses new-age technologies like AI and IoT to run its operations efficiently.

Earlier, it had shared that its online tea deliveries account for 45% of its revenue. It operates 190 retail outlets across six Indian cities. In June 2022, it secured $53 Mn in its Series C funding to develop tech infrastructure and expand its presence.

Its cap table includes Alpha Wave Ventures, Elevation Capital, Think Investments, Tiger Global, SAIF Partners, InnoVen Capital, Pactolus, and Ola cofounders Bhavish Aggarwal and Ankit Bhati, among others.

Chaayos’ FY22 revenues rose 2.4X YoY to INR 134.9 Cr, while its total revenues stood at INR 140.2 Cr during the period under review.

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5. Charcoal Eats

• Year Of Inception: 2015
• Founders:  Krishnakant Thakur, Anurag Mehrotra, Mohammed Bhol
• Funding Raised To Date: $9.8 Mn+
• Investors: Lokmat Media, Girish Patel, Anil Singhvi, Ajinkya Firodia
• Headquarters: Mumbai

Founded in 2015, Charcoal Eats is a quick-service restaurant chain that delivers “high quality, consistent, authentic, modern Indian flavours to its patrons across the country across snack and meal times at affordable prices” via its app. 

The company operates brands such as Charcoal Eats for Biryani and B Burger across Mumbai, Pune and Delhi NCR.

While the company started with six biryani variants, the company claims to be offering 50 different all-day food options across snack and meal times, that include biryanis, starters, curries, rice bowls, rolls among others.  

It has around 40 outlets, mostly cloud kitchens, across Mumbai, Pune and Delhi-NCR.

Through these outlets, customers can dine-in, take-away or order for delivery, as per their convenience. Charcoal Eats is also available on leading food platforms, Zomato and Swiggy. It also recently launched a new product line under the brand name Khichdibaba.

Among QSR restaurants, Charcoal Eats competes with Wow! Momo Foods, Faasos and Hello Curry, among others. 

The startup recently raised $5.3 Mn to boost its brand operations and expand its footprint across India and overseas.

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6. Coolberg 

• Year Of Inception: 2016
• Founders: Pankaj Aswani, Yashika Keswani
• Funding Raised To Date: $3.5 Mn
• Investors: RB Investments, India Quotient, Ashish Goenka, Indian Angel Network
• Headquarters: Mumbai

Coolberg is a non-alcoholic beer brand, which sells cranberry, peach, ginger, malt, strawberry, mint, and cranberry beverages via its website and offline distribution channels. Currently, it has a presence in India, Africa, Maldives, Bhutan, and Nepal. 

In 2019, Coolberg raised $3.5 Mn in its Series A funding round from RB Investments, India Quotient, Ashish Goenka from Suashish Diamonds, and Indian Angel Network. Prior to that, it bagged an undisclosed sum from India Quotient and Indian Angel Network’s maiden fund.

The beverage startup was acquired by Ghodawat Consumer in 2022 for an undisclosed amount. The startup said that this acquisition would help it develop a portfolio of new-age premium beverage brands as part of the deal. 

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7. Desi Farms

• Year Of Inception: 2022
• Founders:  Sunil Sahi 
• Funding Raised To Date: $6 Mn
• Investors: NAV Capital Emerging Funds, Venture Catalysts, Cummins India’s founder and MD Ashwath Ram
• Headquarters: Pune

Founded in 2022 by Sunil Sahi, the Maharashtra-based farm-to-table D2C brand offers fresh and chemical-free milk and dairy products.

Currently operational in Pune, the brand claims to offer milk within 12-24 hours of the milking process. Other than milk, its product category includes A2 milk, ghee, paneer and more, with each product passing through 20 quality checks. 

It has developed a tech-enabled in-house system, which takes care of production, delivery and franchise modules to ensure product provenance, tracking the entire journey from farms to customers.   

Desi Farms has an omnichannel presence. Its products are sold via its app and portal, on ecommerce marketplaces under the Manchar Farms brand and through 50+ Desi Farms outlets. 

Since inception, it has secured INR 50 Cr funding from investors like NAV Capital Emerging Funds, Venture Catalysts, Cummins India’s founder and MD Ashwath Ram, among others. 

The startup also made it to the list of Inc42’s latest edition of Fast42.

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8. Dogsee Chew

• Year Of Inception: 2015
• Founders:  Bhupendra Khanal, Sneh Sharma 
• Funding Raised To Date: $13.9 Mn  
• Investors: Mankind Pharma, Sixth Sense Ventures
• Headquarters: Bengaluru

Dogsee Chew offers vegetarian dog treats that are natural, human-grade, and protein-rich. These treats are made from yak milk cheese by residents of villages in Nepal, Sikkim, and Darjeeling. 

Earlier this year, the startup secured $6.7 Mn in its Series A funding round from Mankind Pharma and Sixth Sense Ventures.

In November 2021, it raised $7 Mn in its Pre-Series A funding round from Sixth Sense Ventures. Currently, it has a presence in over 30 countries. 

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9. DropKaffe

• Year Of Inception: 2019
• Founders: Rakshit Kejriwal, Lakshmi Dasaka, Chaitanya Chitta  
• Funding Raised To Date: $1.7 Mn 
• Investors: Fireside Ventures, Brigade Group, GrowthStory, Sidharth Pansari, Nirupa Shankar, Hitesh Oberoi, Kanwaljit Singh, Apurva Salarpuria, Manish Singhal P39 Capital
• Headquarters: Bengaluru

Beverage startup DropKaffe sells ready-to-drink cold coffee, fresh coffee beans, coffee powders, and gourmet foods under the brand SLAY Coffee through its website and cafe chains.

According to its LinkedIn page, the startup has a presence in over 160 locations across 19 Indian cities.

In 2016, its parent company raised $550K in a funding round led by Fireside Ventures’ Kanwaljit Singh, Srini Anumolu & Meena Ganesh of GrowthStory, Apurva Salarpuria from Salarpuria Group, Sidharth Pansari from Primac, Rahul Gidwani, Hitesh Oberoi from Naukri, Nirupa Shankar from Brigade Group, and Bhupen Shah also participated in the round. 

The venture claims to serve more than 500K customers across 20 cities across the country.

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10. Eat Better

• Year Of Inception: 2020
• Founders: Mridula Kanoria, Shaurya Kanoria  
• Funding Raised To Date:  $725K
• Investors: Java Capital, Mumbai Angels, Shiprocket Ventures, CapierCapital, Plan B Capital, Harpreet Grover, Arjun Vaidya, Bhavik Vasa, Radhika Ghai, Vishesh Khurana, Bimal Kartheek Rebba, Ishank Joshi, Venus Dhuria, and Divij Bajaj
• Headquarters: Jaipur

Organic food startup Eat Better sells healthy snacks such as coffee and almond laddoos, hazelnut chocolate laddoos, and vanilla, and cacao laddoos, among others, through its website and other ecommerce platforms. 

The startup has a manufacturing facility in Jaipur and manages a base of over 50 female employees.

In March 2022, it secured INR 5.5 Cr seed funding to strengthen its team, expand offerings and develop marketing and distribution channels. 

A slew of investors, including Java Capital, Mumbai Angels, Shiprocket Ventures, CapierCapital and Plan B Capital, participated in the funding round.

Earlier, it claimed to have reported over 10x growth in revenues between October 2020 and March 2022.

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11. Farmley

• Founded In: 2017
• Founders: Akash Sharma, Abhishek
• Funding Raised To Date: $12 Mn+
• Investors: BC Jindal Group, Alkemi Partners, Omnivore, DSG Consumer Partners
• Headquarters: Delhi NCR

Farmley, a direct-to-consumer (D2C) snacking brand founded in 2017 by Akash Sharma and Abhishek, specializes in offering an array of flavoured dry fruits and nuts. Their product range includes enticing options such as roasted peri peri makhanas, Thai chili cashews, and date bites.

With a presence across various ecommerce platforms like Amazon, Flipkart, Blinkit, Zepto, Instamart, and Big Basket, Farmley has established itself as an omnichannel brand. Additionally, it boasts a wide distribution network of over 10,000 retail outlets across India. 

It claims to have crossed an annual recurring revenue (ARR) of INR 300 Cr, growing by over 400% in the past two years. The startup also claims to have turned EBITDA positive.

In December 2023, the startup secured $6.7 Mn in a Pre-Series B funding round led by BC Jindal Group.

Since its inception, Farmley has raised more than $12 Mn from a number of investors, including DSG Consumer Partners, Omnivore, and Alkemi Partners. 

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12. Good Flippin’ Burgers 

• Year Of Inception: 2019
• Founders: Viren D’silva, Sijo Mathew, Sid Marchant
• Funding Raised To Date: $5.1 Mn
• Investors:  Karan Bhagat, Yatin Shah, Nikhil Bhardwaj, Tanglin Venture Partners
• Headquarters: Mumbai

Burger chain Good Flippin’ Burgers has 23 outlets across Mumbai and Delhi, of which 16 are in Mumbai. The brand entered the Delhi market with seven new outlets earlier this year.

In 2023, the startup raised $4 Mn in its Series A round, which was led by Tanglin Venture Partners. It has also raised $1.1 Mn in a seed round led by Kerala Blasters Football Club’s director Nikhil Bharadwaj, IIFL Wealth’s Karan Bhagat and Yatin Shah.

With outlets in only two cities in India, the startup is aiming to expand its footprint in India. It is also in the process of adopting cloud, hybrid, and dine-in formats with a focus on malls and airports. 

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13.  Go DESi

• Year Of Inception: 2018
• Founders: Vinay Kothari, Raksha Kothari
• Funding Raised To Date: INR 80 Cr
• Investors:  Aavishkaar Capital, Rukam Capital, DSG Consumer Partners, Roots Venture
• Headquarters: Bengaluru

The startup was founded by a brother-sister duo to commercialise traditional Indian treats and confectionery, all while empowering women in rural villages.

With an omnichannel presence, the startup’s products are available in over 40,000 stores nationwide, and it claims to have sold over 15 Mn units since inception.

In southern India, the products are available both online and offline. In cities like Mumbai and Delhi NCR, they are available only on quick commerce and online grocery apps.

The startup recently secured INR 41 Cr in funding led by Aavishkaar Capital. The round also saw participation from existing investors Rukam Capital, Roots Ventures and DSG Consumer.

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14. Happilo 

• Year Of Inception: 2016
• Founders: Vikas Nahar
• Funding Raised To Date: $38 Mn
• Bb Investors: Motilal Oswal Private Equity, A91 Partners
• Headquarters: Bengaluru

Happilo is a healthy snack brand that offers nuts, dried fruits, seeds and dry roasted snacks. It has a manufacturing unit at Yeshwantpur, Bengaluru. It follows an omnichannel approach to sell its products across the country. 

Happilo’s products are non-GMO verified, gluten-free, vegan and fat-free. The startup offers EMI options to customers if they cannot pay for products at once. 

In February, Happilo raised $25 Mn from Motilal Oswal Private Equity to expand its business and offerings and acquire other firms. Before this, it secured $13 Mn from A91 Partners.

It has grown over 4X in the last 24 months and is aiming to clock revenue of INR 2,000 Cr in the next four years.

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15. iD Fresh Food

• Year Of Inception: 2005
• Founders: PC Musthafa, Abdul Nazer, Shamsudeen TK, Jafar, Noushad TA
• Funding Raised To Date: $104 Mn
• Investors: NewQuest Capital Partner, Premji Invest, Peak XV Partners, Helion Ventures, Azim Premji
• Headquarters: Bengaluru

iD Fresh Food sells ready-to-make food such as dosa and idli batter, and rice rava idli batter, among others, in domestic and international markets. 

It has a presence in over 45 cities across the globe including Mumbai, Bengaluru, Pune, Hyderabad and Dubai, among others.

Recently, the Bengaluru-based D2C startup announced its seventh round of ESOPs worth INR 46 Cr for 27 employees.  

“In the coming months, we are excited to augment our 2,000+ workforce as we explore new markets and continue to create new opportunities for a diverse set of professionals, while actively creating a more inclusive workplace,” Musthafa said while announcing the ESOPs.

In January, the startup secured $68 Mn in its Series D funding round from NewQuest Capital Partner and Premji Invest. It has raised $104 Mn so far from individual and institutional investors. 

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16. Jade Forest

• Year Of Inception: 2019
• Founders: Shuchir Suri, Punweet Singh
• Funding Raised To Date: $1.25 Mn
• Investors: Mumbai Angels Network, Gaurav Kapur, Rohan Abbas, Ashish Tulsian, AngelList India 
• Headquarters: Delhi 

Jade Forest offers a slew of non-alcoholic beverages to customers via its website, ecommerce marketplaces and last-mile delivery platforms. Its products are priced between INR 80 and INR 85.

In 2021, it secured $1 Mn from Mumbai Angels Network. Before this, it secured $250,000 in its seed funding round from angel investors such as Gaurav Kapur, Rohan Abbas, Ashish Tulsian, and AngelList India. 

Its products are certified by the US FDA. In the last two years, it has expanded to 23 Indian cities.

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17. Jimmy’s Cocktails

• Year Of Inception: 2019
• Founders: Ankur Bhatia and Nitin Bhardwaj  
• Funding Raised To Date: $2.4 Mn
• Investors: Roots Ventures, 7Square Ventures, Vishesh Khurana, Varun Alagh, Keki Mistry, Vidur Talwar, Anirudh Somani, Vinay Agarwal, Ankur Bhatia, Mirza Baig, Ekcle Ventures, Angad Bhatia
• Headquarters: Gurugram

Jimmy’s Cocktails offers a slew of cocktail mixers including gin cherry sour, bloody mary, lime margarita, and mango chilli mojito, among others. 

In April, Jimmy’s Cocktails secured $1.8 Mn in its Pre-Series A funding round from investors such as Roots Ventures, 7Square Ventures, Vishesh Khurana from Shiprocket, Varun Alagh from Mamaearth, Keki Mistry from HDFC, among others. 

The startup then said that it sold over 6 Mn cocktails in the first three months of 2022. 

In the financial year 2021-22, it posted a 3X revenue growth. About 40% of its revenue came from Tier II and III cities.

This year, Radiohead Brands, the beverage maker’s parent company, secured $1.3 Mn and announced the launch of its energy drink brand Hustle. 

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18. Kapiva Ayurveda

• Year Of Inception: 2015
• Founders: Ameve Sharma, Shrey Badhani
• Funding Raised To Date:  $15.77 Mn
• Investors: Vertex Ventures, Fireside Ventures, 3one4 Capital
• Headquarters: Mumbai 

Kapiva Ayurveda offers a slew of ayurvedic products for building immunity, improving digestion, strengthening the body and controlling diabetes, among others. 

In October 2021, it got an undisclosed amount of funding from Bollywood actor Malaika Arora.

The startup’s revenue stood at INR 40 Cr in the financial year 2020-21. It claims to have sold over 8 Lakh ayurvedic products since its launch and has a user base of 3.5 Lakh.

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19. Lahori

• Year Of Inception: 2017
• Founders: Saurabh Munjal, Saurabh Bhutna, Nikhil Doda
• Funding Raised To Date: $15 Mn
• Investors: Verlinvest
• Headquarters: Punjab

Lahori offers traditional Indian beverages across the country. Currently, it offers Indian drinks in four flavours – jeera (cumin), nimboo (lemon), kacha aam (raw mango) and shikanji (lemonade). 

Lahori’s parent company, Archian Foods, manufactures nearly 1 Mn bottles in its fully automated manufacturing facility, which is spread across 1,50,000 sq ft. Its manufacturing unit is accredited by FSSAI, ISI, HACCP, RoHS and Make In India (offered by GeM). 

In January, Belgium-based Verlinvest infused $15 Mn in Lahori in exchange for a minority stake.

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20. Licious 

• Year Of Inception: 2015
• Founders: Abhay Hanjura, Vivek Gupta 
• Funding Raised To Date: $360 Mn
• Investors: Amansa Capital, Kotak PE, Axis Growth Avenues AIF – I, Nithin Kamath, Nikhil Kamath, Aman Gupta, Haresh Chawla, Temasek, Brunei Investment Agency, 3one4 Capital, Bertelsmann India Investments, Vertex Growth Fund, and Vertex Ventures
• Headquarters: Bengaluru

Licious offers a host of meat and seafood including prawns, kebabs and mutton, among others. Besides, it also offers an end-to-end supply chain of products that it sells to customers, right from their procurement to processing to delivery. 

In March, the foodtech unicorn secured $150 Mn from Amansa Capital, Kotak PE, Axis Growth Avenues AIF – I, Nithin and Nikhil Kamath of Zerodha, boAt’s Aman Gupta and Haresh Chawla from True North. 

Before this, it raised $52 Mn in October 2021. In the financial year 2020-21, it had an annual revenue rate of INR 1,000 Cr and operations in 14 Indian cities. Its customer base stood at over 2 Mn in the fiscal year 2020-21.

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21. MasterChow

• Year Of Inception: 2020
• Founders: Vidur Kataria, Sidhanth Mada
• Funding Raised To Date: $1.6 Mn
• Investors: Anicut Capital, WEH ventures, Fluid ventures 
• Headquarters: Delhi

D2C brand MasterChow offers ready-to-cook noodles, dipping sauces, and sticky rice, among others. 

In May, MasterChow raised $1.2 Mn from Anicut Capital, WEH ventures and Fluid ventures.

Prior to this, it had raised around $462K in its seed funding round from WEH Ventures and some angel investors. The startup had then claimed that it had grown 10x over the previous 12 months and shipped products to over 17,000 pin codes across India.

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22. Namhya Foods

• Year Of Inception: 2019
• Founders: Ridhima Arora
• Funding Raised To Date: Undisclosed
• Investors: Aman Gupta 
• Headquarters: Jammu

Headquartered in Jammu, Namhya Foods specialises in snacks and beverages made from Indian herbs and natural ingredients.

The startup was established in 2019 by Ridhima Arora. To secure funding, she participated in Shark India’s inaugural season and successfully secured INR 50 Lakh against a 10% equity. Additionally, she obtained an additional INR 50 Lakh in debt funding from Aman Gupta, the cofounder of boAt.

Namhya Foods positions itself as a provider of nourishing food products designed to assist individuals with various health conditions such as diabetes, heart issues, high blood pressure, cholesterol, thyroid problems, as well as chest congestion. The company offers a diverse range of products.

In addition to its presence in India, Namhya Foods operates in the United States and has plans to expand into the UAE, Australia, and Canada.

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23. Nourish You

• Year Of Inception: 2015
• Founders: Rakesh Kilaru, Krishna Reddy, Sowmya Reddy
• Funding Raised To Date: $2 Mn
• Investors: Y Janardhana Rao, Rohit Chennamaneni, Nikhil Kamath, Abhijeet Pai, Abhinay Bollineni
• Headquarters: Hyderabad

Nourish You sells nutrient-rich breakfast food products and snacks to consumers via its website and ecommerce marketplaces, including Flipkart, BigBasket, and Amazon, among others. 

Besides selling products directly to consumers, the startup exports food items to countries like Singapore, Nepal, Kenya, Dubai, Mongolia and Maldives. Some of its products are quinoa flour, chocolate & banana muesli, and cranberry walnut mix. 

Earlier, the startup shared that it had 5,000 acres of quinoa and chia farms in Rajasthan, Karnataka, and Madhya Pradesh. 

In January 2023, it secured $2 Mn in seed funding for research and development activities, brand marketing and fortifying its distribution and market presence. As a part of this round, it also secured an undisclosed amount of funding from actress Samantha Prabhu. 

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24. Paper Boat

• Year Of Inception: 2010 
• Founders: Neeraj Kakkar, Niraj Biyani
• Funding Raised To Date: INR 458 Cr 
• Investors: Peak XV Partners, Hillhouse Capital Group, GIC, Advent International, Trifecta Capital, Sofina SA, A91 Partners, Catamaran, Footprint Ventures
• Headquarters: Gurugram

Paper Boat sells a slew of fruit-based drinks in Indian flavours including aam panna (raw mango), rose tamarind (tamarind juice), chilli guava (guava juice), ‘jaljeera’ (spicy, tangy lemonade), among others.

In August, the startup raised $50.1 Mn in funding from GIC-owned sovereign fund Lathe Investment Pte Ltd.

At the time, it used to have a presence in the metro cities, Tier II towns and beyond. In the fiscal year 2021-22, it posted revenue of INR 243 Cr, whilst its losses stood at INR 64 Cr. Meanwhile, in the fiscal year ending March 2020, it clocked revenue at INR 231 Cr and losses at INR 100 Cr, according to Tofler.

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25. Plix

• Year Of Inception: 2019
• Founders: Rishubh Satiya, Akash Zaveri
• Funding Raised To Date: $5 Mn
• Investors: Guild Capital, RPSG Ventures
• Headquarters: Mumbai

Based in Mumbai, Plix specialises in plant-based nutrition supplements, offering a range that includes gummies, superfood powders, and effervescent tablets. Plix asserts that its products effectively address concerns related to weight loss, hair fall and skin, daily wellness, women’s health, and workout requirements.

In July, FMCG giant Marico acquired a majority 58% stake in Plix for INR 369.01 Cr, marking its inaugural foray into the D2C arena. Under the terms of this deal, Marico assumed control over Plix’s board, and Plix became a subsidiary of Marico.

Competing alongside players like OZiva, Setu Nutrition, and Fast&Up, Plix boasts a customer base exceeding 1.5 Mn individuals. The omnichannel brand offers a diverse portfolio of 60 products spanning six categories. 

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26. Pluckk

• Year Of Inception: 2021
• Founders: Prateek Gupta
• Funding Raised To Date: $5 Mn+
• Investors: Exponentia Ventures, Kareena Kapoor Khan
• Headquarters: Mumbai

Pluck is an ecommerce platform which aims to serve the growing demand for lifestyle-oriented fresh produce. It focuses on the global food trends ranging from vegan, carb alternatives, gut health, immunity to plant-forward eating to prevent diabetes and mental health. 

The startup has a 400+ product range across 15+ categories including essentials, exotics, hydroponics, and cuts, mixes. The startup claims that the products are chemical free. Further, the products are customised following different food trends, suitable for gut and heart health, diabetes, and include organic and exotic produce as well. 

Pluckk’s products are available on its own D2C website along with partner ecommerce platforms  including Blinkit, Swiggy, Zepto, Dunzo, and Amazon. While it is currently operational in Mumbai, Delhi, Bengaluru and Pune, it plans to expand to more geographies in the coming quarters.

In 2022, it secured its seed funding of $5 Mn from Exponentia Ventures to develop farm to fork infrastructure, customer acquisition and expansion into key metro cities. It also said that parts of the fund would go towards the acquisition of B2B and B2C company Indus Fresh. 

Last year, it acquired DIY meal kit platform KOOK for $1.3 Mn in a combination of cash and equity.

Following this acquisition, it also secured an undisclosed amount of funding from actress Kareena Kapoor Khan and appointed her as brand ambassador. 

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27. Samosa Singh

• Year Of Inception: 2016
• Founders: Nidhi Singh, Shikhar Veer Singh
• Funding Raised To Date: $2.7 Mn
• Investors: Fireside Ventures, AL Trust, AET Fund, She Capital, Equanimity Investments, ANME
• Headquarters: Bengaluru

Food snack brand Samosa Singh sells Indian food snacks such as samosa, kachori, pani puri, and matar kulcha, among others, to its customers via cloud kitchens and kiosks.

It had earlier shared that its manufacturing unit holds the capacity to produce 25K food items daily.

In 2020, the startup secured $2.7 Mn (INR 17 Cr) in a Series A funding round to develop the capacity of its Bengaluru-based central kitchen. The round was led by She Capital.

As of March 2020, it had a presence in over 25 locations in Hyderabad and Bengaluru. It claims to have set up 100 cloud kitchens in prime cities of South India.

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28. Slurrp Farm 

• Year Of Inception: 2016
• Founders: Meghana Narayan, Shauravi Malik
• Funding Raised To Date: $9 Mn
• Investors: Anushka Sharma, Investment Corporation of Dubai, Fireside Ventures
• Headquarters: Delhi

Slurrp Farm is a children-focussed healthy snack brand. It offers a variety of cereals, milk mixes and snacks such as ready-to-mix pancakes, cakes, dosas, noodles and various kinds of pasta. For first-time users, it offers these products in trial packs. 

Slurrp Farm’s parent, Wholsum Foods, sells the products via its website and ecommerce marketplaces. Currently, it has a presence in India, the UAE, the US, and the UK. 

In the financial year 2021-22, it reported over INR 50 Cr annual revenue rate (ARR) and witnessed a 10X growth between June 2020 and December 2021. It further aims to achieve a revenue of INR 500 Cr by 2025.

In April, Bollywood actress Anushka Sharma backed Slurrp Farm. Prior to this deal, the D2C brand raised $7 Mn from the Investment Corporation of Dubai and Fireside Ventures and also bagged $2 Mn in a Series A round from Fireside Ventures.

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29. Storia

• Year Of Inception: 2017
• Founders: Vishal Shah
• Funding Raised To Date: $6 Mn 
• Investors: Sixth Sense Ventures
• Headquarters: Mumbai

Storia offers a range of processed fruit juices, coconut water, and shakes to customers. 

In 2021, it raised $6 Mn in its Series A funding from Sixth Sense Ventures. It currently has a presence in 33 Indian cities via its 50K retail outlets.

At the time of the announcement of its Series A funding round, the startup said it planned to launch new offerings, expand its distribution network and foray into packaged food. 

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30. Sweet Karam Coffee

• Year Of Inception: 2020
• Founders: Anand Bharadwaj, Nalini Parthiban, Srivatsan Sundararaman, Veera Raghavan
• Funding Raised To Date: $1.5 Mn 
• Investors: Fireside Ventures
• Headquarters: Chennai

Sweet Karam Coffee sells South-Indian delicacies, including filter coffee and ready meal mixes, which it claims to be free from palm oil and preservatives. 

On October 30, 2023, the startup announced that it raised $1.5 Mn from Fireside Ventures to expand its offline play, enter new geographies, and strengthen its product portfolio. 

The startup also aims to address the problem of poor availability of well-packaged traditional South Indian sweets and snacks.  

The startup sells its products primarily through its website and app, and claims to deliver them to more than 30 nations. 

The Chennai-based startup has also partnered with Tamil Nadu farmers to offer a range of millet-based products.

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31. TagZ Foods

• Year Of Inception: June 2019
• Founders: Anish Basu Roy, Sagar Bhalotia 
• Funding Raised To Date: $1.5 Mn 
• Investors: 9Unicorns, Umang Bedi, Venture Catalysts, Dexter Angels, Agility Ventures, Arjun Vaidya, Dharamveer Chouhan, Ashneer Grover, Namitha Thapar
• Headquarters: Bengaluru

TagZ makes and sells chips, chocolates, dips and cheese dribbling, among others. It recently also pitched investors on the television show Shark Tank India. 

It also raised money via a consumer stock option plan (CSOP), where it offered equity to customers for investing a minimum of INR 5,000. The CSOP was oversubscribed by 250%. 

Prior to this, it raised an undisclosed amount of investment in its Pre-Series A funding round from Venture Catalysts, Zostel’s Dharamveer Chouhan, The Pant Project’s Dhruv Toshniwal, and Loy Halder from Goldman Sachs, among others. 

In the financial year 2021-22, its revenue stood at INR 15 Cr. The startup claims to have served over 30 Mn consumers and sold more than 50 Mn packets of chips since its inception.  

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32. TenderCuts

• Year Of Inception: 2016
• Founders: Nishanth Chandran
• Funding Raised To Date: $19 Mn
• Investors: Stride Ventures, Paragon Partners, Nabventures 
• Headquarters: Chennai 

D2C brand TenderCuts offers meat and seafood products including chicken, mutton, seafood, marinades, pickles, and eggs and ready-to-cook products such as cold cuts, sausages, kebabs, shawarmas, etc.

In 2021, it secured approximately $4 Mn in a debt funding round from Stride Ventures. Prior to this, it raised $15 Mn from Paragon Partners and Nabventures and closed a seed funding round worth $759K in 2017. 

It follows an omnichannel marketing strategy and has been serving customers across Chennai, Hyderabad and Bangalore via its 50 retail stores. 

In September 2023, the omnichannel meat brand was reported to be planning the acquisition of TenderCuts along with Happy Chops. 

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33. The Divine Foods 

• Year Of Inception: 2019 
• Founders: Kiru Maikkapillai
• Funding Raised To Date: Undisclosed 
• Investors: Nayanthara, Vignesh Shivan
• Headquarters: Chennai

The Divine Foods is a D2C foodtech startup that specialises in manufacturing products from traditional Indian superfoods such as turmeric, moringa, millet, and others. 

Its portfolio includes products such as turmeric oil, turmeric golden milk, masks, turmeric drinks, turmeric powder, honey, among others. 

Under the flagship seed funding scheme of the Tamil Nadu government called TANSEED 4.0, the startup received a grant of an undisclosed amount. 

Last year, the startup secured an undisclosed amount of funding from actress Nayanthara and her husband Vignesh Shivan. Back then, founder Maikkapillai told Inc42 that the funding would be used for scaling up the infrastructure, expanding the startup’s product line, creating brand awareness among the masses and encouraging other celebrities to support the growth of native businesses. 

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34. The Filling Station

• Year Of Inception: 2021
• Founders: Mahua Ghosh, Suvankar Ghosh
• Funding Raised To Date: Undisclosed 
• Investors: NA (Not Available)
• Headquarters: Mumbai 

Healthy food snack startup The Filling Station sells nutrient-rich laddoos, oil-free snacks, and nutrient-rich spreads, among others, via its website and ecommerce marketplaces such as Amazon and Flipkart.

In snacks, it uses ingredients such as palm, oats, makhana, seeds, nuts, and date fruit. Its cofounder Mahua Ghosh holds 11 years of experience in the food industry. She has previously worked with many fast food joints, cloud kitchens and retail brands. The venture is recognised by the Centre’s Startup India Initiative, according to the website.

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35. The Good Bug

• Year Of Inception: 2022
• Founders: Keshav Biyani, Prabhu Karthikeyan
• Funding Raised To Date: $3.5 Mn
• Investors: Fireside Ventures
• Headquarters: Mumbai

The Mumbai-based startup, The Good Bugs, offers a range of products that are designed to promote and maintain gut health for consumers. Its primary focus lies in addressing the health concerns of individuals aged 25-60 who may be grappling with the negative consequences of unhealthy dietary and lifestyle choices.

Currently, the startup operates as an omnichannel brand, with approximately 70% of its revenue coming from its website and the remaining 30% from various online marketplaces. Notably, the startup has recently initiated partnerships with pharmacies to expand its offline presence.

Since its inception, the brand claims to have catered to over 2 Lakh customers. It also proclaims to have strong repeat rates of 40-45%. To expand its product offerings, the startup is planning to introduce 20 new products to its portfolio over the next six to twelve months.

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36. The Whole Truth

• Year Of Inception: 2019
• Founders:  Shashank Mehta
• Funding Raised To Date: $21 Mn
• Investors: Sequoia Capital India, Matrix Partners India, Sauce.vc, Kalyan Krishnamurthy, Sujeet Kumar, Ashneer Grover, Shashvat Nakrani
• Headquarters: Mumbai 

The Whole Truth sells dark chocolate, muesli, protein bars, nut butter and energy bars via its website and other ecommerce marketplaces.

In July, the D2C snack brand secured $6 Mn in its Series A funding round from Sequoia Capital India, Matrix Partners India, Sauce.vc, Flipkart’s Kalyan Krishnamurthy, Udaan’s Sujeet Kumar, Ashneer Grover and Shashvat Nakrani.

The startup had then claimed that it had grown 12x in the last 18 months. Besides, The Whole Truth said it receives 50% of its sales via its website and the rest from ecommerce marketplaces. 

This year, the startup secured $15 Mn to boost its manufacturing capacity, hire talent, and expand its retail distribution. 

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37. Troo Good

• Year Of Inception: 2018
• Founders: Raju Bhupati 
• Funding Raised To Date: $7.4 Mn 
• Investors: OAKS Asset Management
• Headquarters: Hyderabad

Troo Good offers a slew of millet, peanut, chocolate, and dry fruit snack bars and mixtures. In the year of its inception, it clocked a revenue of INR 12 Cr, while in 2019, it posted a revenue of INR 24 Cr. The startup claims that it is currently profitable before tax. 

In November 2021, Troo Good secured $7.4 Mn from OAKS Asset Management to expand its business in the domestic market.

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38. True Elements 

• Founded In: 2013 
• Founders: Puru Gupta and Sreejith Moolayil
• Funding Raised To Date: $2 Mn
• Investors: Marico, Maharashtra State Social Venture Fund
• Headquarters: Bengaluru 

True Elements offers millet, grains, and seeds-based breakfast and snack foods. It follows an omnichannel marketing strategy, selling products via its website, ecommerce marketplaces and brick-and-mortar stores. 

In May, consumer company Marico acquired a 53.98% stake in True Elements’ parent HW Wellness Solutions for an undisclosed sum. Prior to this, True Elements secured INR 10 Cr from the Maharashtra State Social Venture Fund last year. 

In the financial year 2021-22, it recorded sales of over INR 54.3 Cr as compared to INR 36.3 Cr in the previous fiscal year. 

Currently, it sells over 70 products and more than 200 stock-keeping units (SKUs) across 12,000 retail outlets in India. It claims to earn over 75% of its revenue from online distribution channels.

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39. Twigly

• Year Of Inception: 2015
• Founders: Sonal Minhas, Rohan Dayal, Naresh Kumar Kachhi
• Funding Raised To Date: $800K 
• Investors: Tracxn Labs, Hyderabad Angels, Kunal Shah, Aditya Verma, Gaurav Bhalotia, Amit Gupta, Sahil Barua, Mukul Singhal 
• Headquarters: Gurugram 

Twigly provides freshly cooked food at consumers’ doorstep via its website and mobile app. It currently delivers orders in Delhi NCR. Some of its products are burgers, pasta, grill platters, desserts, and various types of beverages. 

According to its founders, the startup is modelled on San Francisco-based food delivery startup Sprig, which used to offer freshly cooked meals to its consumers. The startup closed down its operations in 2017. 

In September 2018, Twigly was acquired by its competitor for an undisclosed amount.

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40. Vahdam India

• Year Of Inception: 2015
• Founders: Bala Sarda
• Funding Raised To Date: $62.3 Mn
• Investors: Sixth Sense Ventures, IIFL Asset Management, Mankind Group Family Office, SAR Group Family Office, Kris Gopalakrishnan, White Whale Ventures, Urmin Group
• Headquarters: New Delhi 

Vahdam offers an assorted range of teas, including herbal, white, oolong and iced teas, among others in India and across the world. Its other offerings include teaware and instant lattes.  

In September 2021, the startup secured INR 174 Cr in its Series D Round led by IIFL AMC’s Private Equity Fund. Post the fundraising, it was valued at INR 700 Cr. 

Presently, the startup claims that it has a presence in more than 100 countries and also turned profitable in the fiscal year 2021 after clocking a net revenue of INR 160 Cr+.

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41. Wellbeing Nutrition

• Year Of Inception: 2019
• Founders: Avnish Chhabria, Saurabh Kapoor 
• Funding Raised To Date: $10.7 Mn
• Investors: Rakulpreet Singh, Mira Kapoor, Fireside Ventures, HUL, etc.
• Headquarters: Mumbai

Founded in 2019, Wellbeing Nutrition is a direct-to-consumer (D2C) nutraceutical company based in Mumbai. Cofounded by Avnish Chhabria and Saurabh Kapoor, the startup specialises in offering healthy food products with a primary focus on women’s health.

Its product portfolio includes Melts, which are vitamin-based thin strips, Korean Marine for collagen, and Daily Fiber for plant-based prebiotic fibre.

In December 2022, Wellbeing Nutrition secured $10 Mn (INR 85 Cr) in its Series B funding round led by Hindustan Unilever Limited (HUL) and Fireside Ventures. HUL currently holds a 19.8% stake in the startup.

The company’s list of investors includes Bollywood actor Rakulpreet Singh, Mira Kapoor; Ashutosh Valani and Priyank Shah from RENEE Cosmetics, Nikhil Gandhi from MX Player, Harsh Vardhan Bhandari and Jeenendra Bhandari, among others.

Wellbeing Nutrition operates in the D2C segment and faces competition from brands such as Power Gummies and Fast&Up.

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42. WickedGud

• Year Of Inception: 2021
• Founders: Bhuman Dani, Soumalya Biswas, Monish Debnath 
• Funding Raised To Date: $1.34 Mn
• Investors: Mumbai Angels, NB Ventures, Dholakia Ventures, Jalaj Dani Family Office, Ashutosh Valani, Priyank Shah, Ravi Shroff, Ravi Nigam, Ashwini Deshpande, Jorge Fernandez Vidal, Akshay Gurnani, Titan Capital, Archana Priyadarshini, Gaurav Ahuja, Amit Chaudhary, Aman Gupta, Sameer Mehta, Harsh Vakharia, Jorge Fernandez Vidal
• Headquarters: Mumbai 

WickedGud sells pasta, noodles, malted beverages and other snacks via its website and ecommerce marketplaces. According to its website, its products are wholly vegan and contain plant-based protein. 

In April last year, WickedGud secured $1 Mn from Mumbai Angels, NB Ventures, Dholakia Ventures, Jalaj Dani Family Office, Ashutosh Valani and Priyank Shah from Renee Cosmetics, Ravi Shroff from Excel Industries, Ravi Nigam from Tasty Bite, Ashwini Deshpande from Elephant Design, among others. 

Prior to this, it secured $340K in its pre-seed funding round from Titan Capital, Archana Priyadarshini from Point One Capital, Gaurav Ahuja from Chrys Capital, and Amit Chaudhary from Lenskart, among others. 

The startup targets customers aged 26 to 42 and claims to have an average order value of INR 450.

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43. Wingreens Farms 

• Year Of Inception: 2011
• Founders: Anju Srivastava, Arun Srivastava
• Funding Raised To Date: $59.8 Mn
• Investors: Sequoia Capital, Investments AG, Investcorp, Omidyar Network
• Headquarters: Gurugram

The startup offers a diverse range of packaged food products spanning various categories such as healthy snacks, sauces, spreads, spice mixes, specialty bakery items, breakfast cereals, non-dairy milk, protein shakes, and a broad selection of organic products.

It faces competition from brands like Veeba Foods, while in the established FMCG brands segment, it competes with well-known names such as Nestle and Amul.

In 2022, the startup acquired a 100% stake in the Bengaluru-based snacks startup, Postcard. At the time, the startup stated that the acquisition would contribute to the expansion of its product portfolio under the ‘Wingreens World’ category. 

In an earlier acquisition in 2021, the startup acquired Raw Pressery during a distressed sale. The acquisition aimed to broaden its product portfolio and venture into the cold-pressed juices segment.

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Last updated: July 27, 2024 | The article has been updated to include two more names.

The post From Slurrp Farm To TagZ Foods: Here Are 43 F&B D2C Brands Reshaping The Indian Consumer Market appeared first on Inc42 Media.

Remember the pandemic era when the entire world’s population was forced into the confines of its homes? Well, the past be recalled, during that time governments around the world were battling more than just the dread of the Covid-19 virus, as cases related to depression, mental health and even death by suicides started falling out like skeletons from an old creaking closet.

Unfortunately, over a year after the WHO removed Covid-19 from its Public Health Emergency of International Concern (PHEIC) list, we have learnt little.

Now, what makes us say this is the sheer fact that we, as humans, have become too demanding to outgrow our desires, giving us despair in return. Consequently, we have received a list of health problems, all helmed by long and stressful working hours, pollution of all kinds, poor eating habits, and inactivity. 

This daily stress, which comes in all forms, has contributed to a rise in chronic illnesses such as diabetes, infertility, cardiovascular complications, and many other unexpected health problems, eventually taking a toll on our mental health. Imperative to mention that these issues explain not even 1% of the entire mental health crisis among Indians. 

According to a 2023 study published in Cureus Journal, the nation is “grappling with a high prevalence of mental health disorders, such as depression, anxiety and bipolar disorder, schizophrenia, and addiction to substances”. The situation becomes even more gruesome when one looks at the suicide rate in the country. Notably, a recent report from the National Crime Records Bureau (NCRB) records 1.71 Lakh deaths by suicide in the year 2022 alone.

Interestingly, healthtech startup Mave Health finds its genesis in the strong desire of its founder, Dhawal Jain, to address mental health issues in the country. 

“We incorporated Mave Health in January 2023 after I lost a close friend to depression. She was in therapy and taking antidepressants but to no avail,” cofounder Dhawal Jain told Inc42.

Jain, a BITS Pilani graduate, said that the episode took place in 2021 when he was running Dybo, a company that specialised in providing 3D and AR services to ecommerce platforms for a better shopping experience. 

With a heavy heart, a bereaved Jain began reading about mental health issues and its effects. While he was at it, he discovered a significant gap in this area, which was the lack of quick yet effective treatment for individuals facing depression.

Motivated by his entrepreneurial spirit, he partnered with Jai Sharma (a BITS-Pilani alumnus)  and Aman Kumar to combat despair and darkness in the lives of many. 

How Mave’s Tech Stack Tackles Depression

After initial R&D and examining global technical advancements in curing depression, the founders’ investigation led them to technologies designed to impact brain chemistry for the better. Their research led them to explore non-invasive brain stimulation (NIBS) techniques, particularly transcranial direct current simulation (tDCS). 

“We started researching avidly on depression, and that eventually became the reason for us to enter the mental health space,” Jain said.

They based the company’s flagship product, Arc, on an NIBS wearable device designed to treat depression. This tech works by applying weak electrical currents or magnetic fields to specific areas of the brain from outside the head.

These currents or fields can either increase or decrease the activity of brain cells in the targeted area. For example, to treat depression, NIBS helps in boosting activity in parts of the brain that are underactive. By changing brain activity in this way, NIBS improves symptoms of various mental health conditions or neurological disorders.

A specific type of NIBS, transcranial Direct Current Stimulation (tDCS), uses a weak electrical current passed through the brain via two electrodes on the scalp. For depression treatment, tDCS often targets the dorsolateral prefrontal cortex to enhance its typically low activity. 

“Depression mostly happens because there is too little activity in your prefrontal cortex. With stimulation, we’re able to reduce that barricade back to the normal level so that neurons can normally function,” Jain explained.

The current is very weak, similar to a 9-volt battery, and most people feel only a slight tingling sensation during treatment. By modulating brain activity, tDCS alleviates symptoms of conditions like depression. Mave’s Arc, a wearable device, does precisely this. 

As of now, the company imports the devices from a foreign based tDCS manufacturer. Since these devices are costly, the company imports them as per its requirements. 

Mave Health’s Days Of Incognito Mode

After tying up with the tDCS manufacturer, the company began operations in September 2023 in stealth mode. During this time, the startup began experimenting with the devices by partnering with numerous psychiatrists and health consultants, primarily in Bengaluru. 

While Jain thought that the startup would attract younger patients, he was surprised to see the adoption of the tech among the older generation. Another shocker for him came when even a farmer in an area neighbouring Bengaluru urged his tech’s intervention.

The startup founder said the team, in the pilot phase itself, was able to witness 88% improvement in their depression scores over 12 weeks, with 72% achieving remission (or overcoming depression). Furthermore, 65% of users reported enhancements in mood and cognitive function within the initial 21 days.

According to the cofounder, the tech has emerged as the answer to the traditional antidepressant medications, which often work by altering neurotransmitter levels in the brain and come with a range of side effects. 

How Does Mave Operate?

Currently, the startup operates on a cohort-based system, with new groups starting a 12-week programme each month. It charges one patient INR 20,000 per month for a three-month programme. This structure allows for close monitoring of progress and iterative improvements to the treatment protocol.

“We only onboard 25-30 people every month so that we can focus on everyone’s experience and provide an outcome. Ours is a hyper-personalised offering with a high touch model,” the cofounder elaborated. 

Upon enrolling, patients, whom the startup dubs ‘Mavericks’, receive the tDCS devices for the duration of the programme. The use of the devices is administered under expert guidance. Besides access to NIBS, the programme includes unlimited sessions with a range of experts, including doctors, psychologists, nutritionists, and fitness coaches. Psychiatric consultations are also part of the package, ensuring participants have access to personal medical care when needed.

So far, the company has only enrolled one batch of Mavericks. Moving forward, they plan on introducing new cohorts on a regular, monthly basis. 

What’s Ahead For Mave?

As of now, the company continues to import the tech from the oversees manufacturer. This acts as an inhibitor to its growth, as the import duties and the overall cost act as an impediment to its growth. 

To fuel its growth path, the startup raised a pre-seed funding round of INR 6 Cr from multiple investors in April. Some of Mave’s key investors include Zomato’s founder Deepinder Goyal, CRED’s Kunal Shah, and venture capitalist firms All In Capital and Bharat Founders Fund. 

With this backing, the startup is currently working on reducing its dependencies on offshore manufacturers. The company is in the process of developing its own wearable device, which is expected to launch by early next year. 

“The move towards in-house technology development is crucial for several reasons for Mave. It will allow us to customise the device to better suit Indians, potentially reduce costs, and navigate the complex regulatory landscape for health-related tech products in India,” he said, 

In terms of revenues, the company has yet to file a financial statement. However, giving a ballpark number, the cofounder said that they were currently doing somewhere around INR 5 Lakh to INR 6 Lakh a month from the Maverick cohorts. Meanwhile, Jain said that most of Mave’s customers either come through the organic content that his team creates on multiple platforms or through referrals. 

This allows the startup to minimise its advertising and promotion expenses. However, with the recent capital infusion, Jain will have enough headroom to bolster his digital advertising strategy. 

Besides, the company is also working to establish partnerships with psychologists, hospitals, and private clinics to expand its presence across India. 

 “The goal for FY25 is to hit $1 Mn in internal rate of return. Post this, we are planning to scale our revenues to $10 Mn in the upcoming fiscal. However, our focus isn’t only restricted to improving our finances. We’re more focussed on increasing the effectiveness of our treatment,” Jain said.

Currently, Jain, along with his team, seems to be on the right path, as he is looking to manufacture the tech in-house rather than depending on imported machines and tech. This will help the Mave cofounders to keep their tech costs at bay, all while bolstering other imperative divisions such as marketing and R&D. 

Besides this, the Mave founders have stepped into the mental health sector at a time when India has become a hotbed of depression cases, especially due to the challenges in the quality of life in the country. 

According to the National Mental Health Survey 2015-16, nearly 15% of Indian adults need active intervention for one or more mental health issues and one in 20 Indians suffers from depression. It is estimated that in 2012, India had over 2.5 Lakh+ suicides, with the age group of 15-49 years being most affected. It must be noted that the findings of the second phase of the National Mental Health Survey (NMHS-2) have yet to be made public.  

Overall, Mave Health operates in the Indian mental health market anticipated to grow at a CAGR of 1.08% to $1.19 Bn in 2028 from $1.14 Bn in 2024. 

[Edited by: Shishir Prasher]

The post How Mave Health Is Tackling India’s Mental Health Crisis With Its Wearable Tech appeared first on Inc42 Media.

Mumbai-based Raise Financial Services turned profitable in the financial year ended March 31, 2023. The fintech startup reported a net profit of INR 7.16 Cr in the financial year 2022-23 (FY23) as against a net loss of INR 2.78 Cr in the previous fiscal year. 

The startup’s profitability can be attributed to strong business growth. Operating revenue zoomed 25X to INR 20.74 Cr in FY23 from INR 82.14 Lakh in FY22.

Including other income, the fintech startup’s total revenue stood at INR 26.53 Cr, a 10X jump from INR 2.5 Cr in FY22. 

Founded by ex-Paytm Money CEO Pravin Jadhav and Alok Pandey in 2021, Raise offers multiple financial services in the stock broking space, primarily targeting users in Tier I, II Indian cities. Its portfolio of products consists of stock broking app Dhan, Option Trader app to facilitate options trading, Dhan Web platform, TradingView by Dhan and an API platform for traders called DhanHQ API.

Since its inception, the startup has also acquired brokerage company Moneylicious and edtech platform Upsurge. In 2022, the startup shared plans to invest up to $500K in early-stage startups in the investment tech and wealthtech space, mainly in India.

The startup raised an undisclosed amount of seed funding round in 2021 from Mirae Asset Venture Investment and a clutch of undisclosed investors. 

Where Did Raise Spend?

In tandem with the rise in revenue, the startup’s total expenses also jumped over 3X to INR 17.80 Cr in FY23 from INR 5.28 Cr in the previous fiscal year.

Advertising Expenses: Marketing expenses accounted for the largest share of the startup’s expenses. It spent INR 13.64 Cr on marketing during the year under review as against INR 2.83 Cr in the fiscal prior. 

Employee Expenses: Employee benefits surged 240% to INR 3.65 Cr in FY23 from INR 1.08 Cr in the previous fiscal year.

Raise competes with the likes of Zerodha, Groww, and Angel One in the country’s burgeoning investment tech market. As per an Inv42 report, the country’s investment tech industry will become a $74 Bn market opportunity by 2030 from $9.2 Bn in 2022.

The post Ex-Paytm Money CEO’s Raise Fintech Turns Profitable In FY23, Posts PAT Of INR 7.16 Cr appeared first on Inc42 Media.

The Centre will make efforts to resolve all the pending angel tax cases to provide relief to startups, finance minister Nirmala Sitharaman said. 

“My approach would be to see how best we can sort this out (pending angel tax cases). Because it can’t be that we’ve removed a tax but those litigations are going to hang fire. That cannot be a fair treatment. We will have to work out something,” the finance minister told ET in an interview.

Earlier this week, Sitharaman announced abolishment of the infamous angel tax during her Budget speech. While the startup ecosystem lauded the move, many raised concerns about the pending angel tax cases being faced by startups. 

Mohandas Pai, the former CFO of Infosys and partner at Aarin Capital, told Inc42 earlier that the Centre must look into aiding people stuck in “the angel tax web”. “The government must now withdraw all cases pending under angel tax in the last five years and state clearly that no angel tax will be levied on any pending assessments,” he said. 

The finance minister, delving into the government’s rationale behind angel tax abolishment, said that the provision was acting as a hindrance for the growth of the startup ecosystem. She highlighted that fears persisted despite the government’s actions to promote India’s startup ecosystem.

“… Fear persisted that this could be one of the trigger points for income-tax to take action. We thought there are no more ways in which we can remove this suspicion from the minds of people. Equally, we were confident that the PMLA (Prevention of Money Laundering Act) and the Black Money Act are adequate to sort this out, so we’ve just removed it,” she told the publication. 

It must be noted that Angel tax, or Section 56(2)(viib), was inserted in the Income Tax Act, 1961 in 2012 to keep shell companies at bay and prevent money laundering. However, over the years, it became a major concern for startups as tax officials began issuing tax notices to startups over their valuation methodology.

Angel tax was payable on capital raised by unlisted companies if the value of the shares issued to investors exceeded their fair market value (FMV). It was a long-standing demand of the startup ecosystem to remove angel tax.

Earlier this week, Central Board of Direct Taxes’ (CBDT) chairman Ravi Agrawal said that the removal of angel tax will boost the country’s startup ecosystem by bringing in more investments. 

The post Will Try To Resolve Pending Angel Tax Cases: FM Nirmala Sitharaman appeared first on Inc42 Media.

While the Indian startup ecosystem is plagued by the ongoing funding winter, investors continue to remain bullish about the ecosystem expanding further across the country. As per an Inc42 survey, investors expect Pune, Hyderabad and Chennai to emerge as the next startup hotspots in the world’s third-largest startup ecosystem.

The survey, which received responses from over 50 active venture capitalist firms and angel investors to gauge which cities can emerge as the next startup hubs of the country, saw investors being most optimistic about Pune, Hyderabad, Chennai, Jaipur and Ahmedabad, in that order. 

Within these startup hubs, Chennai-based startups raised the maximum amount of funds in the first half of 2024. Startups based in the Tamil Nadu capital raised $250 Mn in H1 2024.

Trailing closely was Pune, which saw investments to the tune of $241 Mn via 18 deals. Lending tech startup Fibe’s $90 Mn funding round and Rebel Foods’ $13 Mn debt round were among these 18 deals. 

Startups in Hyderabad netted over $210 Mn via 26 deals in the first half of 2024. Meanwhile, Ahmedabad-based startups managed to secure over $62 Mn, while Jaipur’s startups raised $47 Mn. 

Overall, each of these upcoming startup hubs raised more funding in H1 2024 than they raised in the entire 2023.

For context, Chennai-based startups raised $211 Mn in 2023. Pune-based startups also raised the same amount of capital, but Chennai led in terms of number of deals. Hyderabad startups secured $129 Mn in 27 deals last year. Further, Ahmedabad-based startups bagged $46 Mn in 2023, while Jaipur’s startup ecosystem saw a capital infusion of a mere $8 Mn.

It is pertinent to note that startup funding remained subdued in the first half of 2024. Indian startups raised $5.3 Bn in H1 2024, down 1.8% from $5.4 Bn in H1 2023.

Bengaluru continued to retain the title of India’s startup hub, with startups in the city raising $1.57 Bn via 134 deals in H1 2024. Mumbai trailed closely with net capital infusion of $1.49 Bn from 91 deals. 

A better understanding of Bengaluru’s dominance in the Indian startup ecosystem can be gauged when one looks at it from a historical lens. Since 2014, Bengaluru-based startups have accounted for about 50% of total startup funding. Startups in the city raised $70 Bn over the past decade. The city’s closest competitor Delhi NCR saw a net capital infusion of $44 Bn, while Mumbai-based startups secured $20 Bn in the same period. 

Meanwhile, the funding raised by the emerging startup hubs of Pune, Chennai, and Hyderabad stood at $5 Bn, $4 Bn, and $3 Bn, respectively, over the last decade. 

The post Pune, Hyderabad Lead The Race To Emerge As Next Startup Hubs Of India appeared first on Inc42 Media.

The abolishment of the infamous angel tax will boost India’s startup ecosystem and prompt innovators and venture capitalists to invest more, the Central Board of Direct Taxes (CBDT) chairman Ravi Agrawal said.

In a post-budget interview, Agrawal told news agency PTI that he would urge investors to “please come forward, please invest as the country is waiting for your investment, initiatives and innovations”. 

Finance minister Nirmala Sitharaman announced the abolition of the angel tax in her budget speech for 2024-25 on Tuesday (July 23).

“To bolster the Indian startup ecosystem, boost the entrepreneurial spirit and support innovation, I propose to abolish the so-called angel tax for all classes of investors,” Sitharaman said. 

Angel tax, or Section 56(2)(viib), was inserted in the Income Tax Act, 1961 in 2012 to keep shell companies at bay and prevent money laundering. However, over the years, it became a major concern for startups as tax officials began issuing tax notices to startups over their valuation methodology.

Angel tax was payable on capital raised by unlisted companies if the value of the shares issued to investors exceeded their fair market value (FMV). It was a long-standing demand of the startup ecosystem to remove angel tax.

Commenting on tackling money laundering following the removal of angel tax, Agrawal said there are enough provisions to tackle such cases and the Enforcement Directorate (ED) would investigate them.

“The intention… was never to dissuade the startups. It was never to put any stop on the investments… we are in coordination with the DPIIT (Department for Promotion of Industry and Internal Trade) and have actually provided relaxations in so far as the investments are concerned,” he added. 

While the startup ecosystem has welcomed the move to abolish angel tax, there are still concerns around the pending cases. 

According to Mohandas Pai, the former CFO of Infosys and partner at Aarin Capital, the Centre must look into aiding people stuck in “the angel tax web”. “The government must now withdraw all cases pending under angel tax in the last five years and state clearly that no angel tax will be levied on any pending assessments,” he told Inc42.

The post Angel Tax Removal Will Boost Investments In Indian Startup Ecosystem: CBDT Chairman appeared first on Inc42 Media.

While investor interest in the Indian startup ecosystem remained muted in the first half of the calendar year 2024, mergers and acquisitions (M&As) also saw a sharp slowdown. 

As per the ‘Indian Tech Startup Funding Report H1 2024’, the startup ecosystem saw just 37 M&A deals in the first half of the year. This was a 45% decline from 67 such deals in H1 2023 and a 34% decrease from 56 M&A deals in H2 2023.

In fact, H1 2024 saw the lowest number of M&A deals in a six-month period since Covid-hit H1 2020, when the number of deals stood at 35.

Talking about the M&A deals in H1 2024, listed gaming major Nazara Technologies was the most active in the startup ecosystem.

In a bid to expand its presence in the global entertainment landscape and diversify offerings, Nazara’s subsidiary NODWIN Gaming acquired Comic Con India in the first half of the year. While NODWIN acquired Publish.Me and Branded in 2023, the Nazara esports arm also took over Ninja Global and increased its stake in Freaks 4U Gaming to 100% during the period.

Besides NODWIN, Nazara’s subsidiary Absolute Sports acquired Pennsylvania-based entertainment news site Soap Central for $1.4 Mn in June. Nazara has continued its acquisition spree in the second half of the year as well. Last week, it acquired an additional stake in Paper Boats apps for INR 300 Cr to increase its ownership to 100%. 

In the gaming space, another major player OneVerse Gaming also made three acquisitions in the first half of 2024. Bolstered by the spree of acquisitions in the gaming space, media and entertainment led consolidation activities at a sectoral level. A total of nine M&As materialised in the sector during this period.

Enterprise tech and fintech trailed media and entertainment at a sectoral level with eight M&A deals each in the first half of 2024. The biggest acquisition in H1 2024 was SaaS giant Freshworks’ buyout of enterprise tech startup Device42 for $230 Mn. Another major acquisition that materialised in this period was the purchase of cloud kitchen Kitchens@ by existing investor Finnest. 

In terms of funding, Indian startups cumulatively raised investments worth $5.3 Bn in the first six months of the calendar year 2024, down 1.8% from $5.4 Bn in the year-ago period. 

However, investors expect funding to go up in the second half of the ongoing year. As per an Inc42 survey, ‘India’s Top Startup Investor Ranking H1 2024 Survey’, about 93% of over 50 startup investors see 2024 as a turnaround year for Indian startups. Investors believe that the funding trends are anticipated to pick up significantly due to the performance of the Indian public market moving forth. 

It remains to be seen if this potential increase in funding also translates into higher M&As in the Indian startup ecosystem.

The post Startup M&As Nosedive 45% YoY To 37 Deals In H1 2024 appeared first on Inc42 Media.

Manufacturing is at the top in the central government’s list of priorities, as evidenced by finance minister Nirmala Sitharaman’s Union Budget 2024-25 speech. 

A number of measures were announced — from a reduction in basic customs duty for inputs and raw material to incentives around job-creation — that should ideally further prop up the already-booming manufacturing industry.

The customs duty exemption will in particular reduce costs related to manufacturing mobile phones, lithium-based batteries for consumer electronics devices, electric vehicles (EVs), drones as well as the other focus areas such as space tech and semiconductors. 

Speaking with Inc42, 3one4 Capital’s Pranav Pai said that the government support to the homegrown manufacturing sector has addressed a significant barrier to growth. Hence, it eradicates reasons for investors who were hesitant about opportunities in India’s manufacturing ecosystem.

Stakeholders in the startup ecosystem believe that the manufacturing related enhancements will have a trickle down positive impact on the Indian startup ecosystem. 

“Given that this was a mid-term budget, we didn’t anticipate many sector-specific initiatives. Overall, it was a positive budget for local employers and manufacturers across industries. Therefore, there hasn’t been much investor concern caused by the budget. Investors will continue to maintain bullishness on industries like EV, consumer electronics, deep tech, logistics, among others,” Pai added. 

Cheer For Mobile OEMs

In a major boost to the growing smartphone market, the central government slashed the BCD for mobile phones, mobile printed circuit boards assembly (PCBA) and mobile chargers to 15% from the erstwhile 20%. 

Xiaomi India’s president Muralikrishnan B believes this will help further strengthen the domestic electronics manufacturing ecosystem. The popular notion is that this will encourage smartphone sales in the mid-premium and premium category. 

In the past, India Cellular And Electronics Association (ICEA), the apex industry body of mobile and electronics industry, had urged the government to reduce the number of import tariff slabs on mobile components as well as reduce import duties on the aforementioned mobile components.

While these demands have only been partially addressed, ICEA has welcomed the customs rebates.  

“The global nature of the electronics value chain necessitates such measures to enhance our manufacturing and export capabilities. These announcements will be a game changer, significantly boosting our industry’s competitiveness on the global stage,” ICEA’s chairman Pankaj Mohindroo said. 

Further, the tariff slab rationalisation was also acknowledged by the FM during the speech and will be taken up in the next six months. 

According to industry analysts, the BCD rebate will allow smartphone manufacturers to introduce price cuts across segments. Consultancy firm Techarc’s chief analyst Mohammad Faisal Ali Kawoosa told Inc42 that the development can potentially be the key to making the 5G smartphones more affordable.

How The EV Ecosystem Sees The Budget

Outside the smartphone and electronics manufacturing space, the budget’s announcements are expected to spur on EV production as well. Here too, the central government had turned to PLI to drive existing units to capacity, but the budget’s proposed incentives for new investments in manufacturing trend towards capacity addition. 

One of the key developments coming out of the budget was the quashing off of custom duties on the import of 25 key industrial minerals, including cobalt, lithium, copper, germanium, and silicon.

In particular, cobalt, lithium and copper are crucial in the manufacturing of batteries used in consumer electronics devices, EVs, drones, various energy storage systems and more.

Lithium, in fact, has been one of the most sought after minerals in the world. Similarly, cobalt is critical to develop high density batteries, whereas copper is used in electric motors, batteries, inverters, wiring and in charging stations. 

India has been in talks with multiple countries for partnerships for technical help on lithium processing, which when combined with a customs duty exemption will boost local manufacturing around lithium.

EV solutions provider Omega Seiki founder Uday Narang told Inc42 that 30% of the entire costs of producing an EV can be attributed to the battery itself. Hence, rolling back the import duties on critical materials like lithium, cobalt, and copper reduces the EV battery manufacturing costs substantially.

“While battery costs have been going down continuously in recent times, the roll back of the import duties on these critical elements will lead to a big boost in cost cutting. With this, we believe that we will cut down about 5-10% costs on battery manufacturing moving forward,” he said. 

Similarly, commercial EV maker EVage Motors’ founder and CEO Inderveer Singh said that battery production costs will fall by 7.5%-12% in the case of the company. Besides battery production, the startup recently entered into a joint venture with UK-based electric drivetrain systems manufacturer DG Innovate (DGI) to set up an electric motor manufacturing plant. Singh believes the duties rebate will lead to a 4% reduction in procurement costs for this plant.

Manufacturing Impacts Key Sectors

And while the Union Budget did not specifically mention how the central government is looking to boost manufacturing in other key sectors — space tech, defence and semiconductors, for instance — we expect the overall push in manufacturing to have a trickle down effect on all these key sectors. 

For instance, the rebate on customs duty for import of minerals and raw material is also slated to act as a boost for startups in sectors such as spacetech, defence and drone tech, where specialised minerals and metals are needed to create the products. 

And not unlike the case for the EV ecosystem, the exemption of customs duty on lithium, a crucial mineral used in the aforementioned sectors, will reduce costs, making lithium-based technologies more affordable. 

Besides this, the change in mobile PCBA customs duty and allied increase in customs duty on import of PCBA for telecom is also likely to spur the manufacture of 5G equipment in India. 

In addition to the roll back of customs duties on the aforementioned minerals, the centre has also slashed custom duties on gold, silver and platinum. This will directly benefit entities in the semiconductors and electronics manufacturing space, which leverage these precious metals for manufacturing components. 

Interestingly, the budget speech did not announce any particular government investments in the semiconductor manufacturing space, preferring to focus on incentives that cover the entire gamut of manufacturing. In the past year, the government set aside INR 1K Cr to fund semiconductor design startups, along with a $10 Bn allocation for semiconductor manufacturing research and design.

The post Budget 2024-25: Decoding The Big Manufacturing Push appeared first on Inc42 Media.

To ramp up India’s share in the global mobile market, finance minister Nirmala Sitharaman on July 23 (Tuesday) announced a cut in basic customs duty (BCD) rates for several mobile phone parts.

The central government slashed the BCD for mobile phones, mobile printed circuit board assembly (PCBA) and mobile chargers by 15%.

“With a three fold increase in domestic production and an almost 100% jump in exports in the last six years, the Indian mobile industry has matured. In the interest of consumers, I propose to reduce the BCD on mobile phones, mobile PCBA and mobile charger by 15%,” Sitharaman said.

A day before the budget announcement, the Economic Survey highlighted the uptick in mobile phone exports. It said that India is a leading benefactor of global entities moving away from production in China as part of the China Plus One business strategy, leading to the growth in India’s manufacturing exports.

Overall, the survey said that India has seen a boost in its electronic exports, particularly in mobile phones. According to a DoT statement earlier this month, India’s mobile phone exports zoomed to INR 1.28 Lakh Cr in 2023-24 from INR 1,367 Cr in 2017-2018. 

With the government’s push on fostering the homegrown mobile phone market, India  is emerging as a smartphone manufacturing hub, with companies like Apple, Samsung, Oppo and Xiaomi expanding their manufacturing operations in the country. 

iPhone maker Apple is aggressively expanding its manufacturing capacity in the country. As a result, Apple produced iPhones worth $14 Bn in India during FY24, constituting 14% of its global iPhone production.

Meanwhile, tech giant Google is also working on plans to produce its flagship Pixel 8 smartphones in India. It aims to produce over 10 Mn units locally by the end of this year. In line with this, Xiaomi India recently revealed its plan to further expand its manufacturing partnerships in India.   

In tandem with the increase in manufacturing, India’s consumption of smartphones has also grown substantially in recent years. According to the International Data Corporation’s (IDC) Worldwide Quarterly Mobile Phone Tracker, India’s smartphone market shipped 34 Mn smartphones in the first quarter of FY24. This was a growth of 11.5% year-on-year. Recently, Union Minister Ashwini Vaishnaw said that India produces 99% of its total mobile phone demand locally. 

The post Budget 2024-25: Centre Reduces Customs On Several Mobile Parts By 15% appeared first on Inc42 Media.

Finance minister (FM) Nirmala Sitharaman on July 23 (Tuesday) announced that the limit of loans provided under the Pradhan Mantri MUDRA Yojana (PMMY) will be increased to INR 20 Lakh from the existing INR 10 Lakh.

While presenting the Union Budget 2024-25, the FM said that the increase in the limit of loans will be for entrepreneurs who had applied, availed and repaid MUDRA loans under the TARUN category to date.

The TARUN category of the MUDRA loan provides loans in the range of INR 5 Lakh to INR 10 Lakh. The other two categories include Shishu loans (under INR 50,000) and Kishor loans (between INR 50,000 and INR 5 Lakh).

The PMMY scheme was launched by the government on April 8, 2015, for providing loans of up to 10 Lakh to non-corporate, non-farm small & micro enterprises. These loans are classified as MUDRA loans under PMMY.

“The enhancement of Mudra loans to INR 20 Lakh will fuel the growth of mid-level companies (INR 50 Lakh to INR 2 Cr revenue) and ensure they get enhanced opportunities,” fintech startup Fibe’s cofounder and CEO Akshay Mehrotra said. 

These loans are given by commercial banks, regional rural banks, small finance banks, microfinance institutions and non banking financial corporations. Startups and entrepreneurs can avail Mudra loans by applying to banks, NBFCs or MFIs, pick the category suited for their requirement, comply with the terms and conditions and avail the financed amount.

While presenting the interim budget for 2024-25 in February, the finance minister said that the government extended 43 Cr loans amounting to INR 22.5 Lakh Cr under PMMY till February 1. Of these, nearly 70% loans were given to women entrepreneurs.

Besides the MUDRA loans push, the finance minister announced a credit guarantee scheme for the micro, small and medium enterprises (MSMEs) in the manufacturing sector in the Union Budget 2024-25. The scheme will help in facilitating term loans to MSMEs for the purchase of machinery and equipment sans collateral or third-party guarantees.

Besides, the budget also highlighted the central government’s plans to establish ecommerce export hubs in a public-private partnership (PPP) model to empower MSMEs and traditional artisans to sell their products in international markets.

The post Budget 2024-25: FM Doubles Limit Of MUDRA Loans To INR 20 Lakh appeared first on Inc42 Media.

As part of its efforts to further increase the usage of India’s leading digital payment infra Unified Payments Interface (UPI), the National Payments Corporation of India (NPCI) has rolled out ‘UPI One World’ wallet for all foreign tourists. 

The NPCI partnered IDFC First Bank and Transcorp International Limited, under the guidance of the Reserve Bank of India (RBI), to develop the offering. The offering is only live with these two partner entities. 

In a statement, the NPCI said that the offering is primarily targeted for international tourists to eliminate the hassle of carrying cash. It will allow travellers to make payments through UPI One World wallet at merchant locations by simply scanning the QR codes using the UPI One World app. 

The NPCI first launched UPI One World wallet during the G20 summit last year. At that time, it was only restricted to tourists from a select group of countries.

To get started with the wallet, tourists will need to get in touch with authorised PPI issuers at airports, hotels, designated money exchange locations, and other touchpoints. They will need a full KYC, based on their passports and valid visas, to use the service. 

Post the visit to India, the unused balance can be transferred back to the original payment source, in accordance with foreign exchange regulations. 

“International travellers can organise their financial needs using UPI One World. It allows for convenient loading and enables the transfer of any unused balance back to the original payment source. By enabling foreign travellers to experience the real-time payments system developed by India, we are taking a significant stride towards creating a more interconnected global digital payments ecosystem,” a UPI spokesperson said. 

This initiative is designed to provide international visitors with a seamless, real-time digital payment experience, making it easier to explore India. 

The development comes at a time when the government has been taking a number of steps to take UPI global. In June, NPCI’s international arm NIPL partnered with the UAE-based Network International to fuel UPI payments in the Middle Eastern country. 

The payments body also tied up with Peru, Ghana, and Namibia in recent times to fuel the adoption of the homegrown payments infrastructure. 

The post Foreign Tourists Can Use UPI Now Via NPCI’s ‘UPI One World’ appeared first on Inc42 Media.

Less than a year after the Reserve Bank of India (RBI) released guidelines to regulate entities facilitating cross-border payments, Bengaluru-based fintech startup Cashfree Payments has become the first entity to secure the Payment Aggregator Cross Border (PA-CB) licence. 

The licence will enable the startup to process cross-border online transactions for the import and export of goods and services. 

It is pertinent to note that there are three types of PA-CB licences – export only PA-CB (PA-CB-E), import only PA-CB (PA-CB-I), and export and import PA-CB (PA-CB-E&I). The startup has received the PA-CB-E&I licence, as per a Business Standard report.

”With the… licence, we are now well-positioned to support global businesses and globally regulated entities collecting payments in India. The licence also enables us to offer Indian exporters and freelancers with cross-border payment solutions. This licence will foster international trade and economic growth while building a robust cross-border payments ecosystem in India,” a spokesperson of the startup said.

Founded in 2015 by Akash Sinha and Reeju Datta, Cashfree operates a full-stack digital payments solution platform. Its net loss widened 46X to INR 133.1 Cr in FY23 from INR 2.9 Cr in the previous year. Operating revenue increased 75.4% to INR 613.8 Cr from INR 349.9 Cr in FY22.

In October last year, the RBI asked all entities processing cross-border transactions for the import and export of goods and services in online mode to get PA licence. It also directed all ‘non-banks’ to apply for authorisation by April 30, 2024.

Startups and other non-banks currently providing such services must register with the Financial Intelligence Unit-India (FIU-IND) to apply for the PA licence. 

Additionally, they are also required to maintain a minimum net worth of INR 15 Cr when applying for the licence. By March 2026, this requirement will increase to INR 25 Cr for authorisation.

Platforms failing to comply with the net-worth requirements will be required to discontinue offering cross-border payment services by July 31, 2024, as per the central bank’s directives.

Besides cross border PA licences, the RBI has granted online payment aggregator licence to a number of entities in recent times. Since December last year, the central bank has greenlit the PA applications of more than 20 companies, including Groww, Zoho, Juspay, Decentro, CRED, PayU, Enkash, Pine Labs, Amazon Pay, Innoviti, Razorpay, CC Avenue, Tata Pay, Google Pay, Infibeam Avenues, Mswipe, Hitachi Financial Services, among others.

The post Cashfree Becomes First Entity To Get Cross Border PA Licence From RBI appeared first on Inc42 Media.

At a time when companies have adopted ‘China plus one strategy’, India should look to increase the foreign direct investment (FDI) from China in the country to benefit from the global shift and increase the country’s exports, especially to the US, the Economic Survey 2023-24 said.

The Survey highlighted that there is a global shift in terms of manufacturing dynamics, with multinational companies adopting a ‘China Plus One’ (C+1) strategy to curtail their dependencies on the country amid mounting global tensions. 

The Survey, tabled by finance minister Nirmala Sitharaman in the Parliament today, said that India has two choices to make the most of this trend – it can integrate into China’s supply chain or promote FDI from China. It added that focusing on Chinese FDI is a more promising prospect. 

“… choosing FDI as a strategy to benefit from China plus one approach appears more advantageous than relying on trade. This is because China is India’s top import partner, and the trade deficit with China has been growing. As the US and Europe shift their immediate sourcing away from China, it is more effective to have Chinese companies invest in India and then export the products to these markets rather than importing from China, adding minimal value, and then re-exporting them,” the Survey added.

The Economic Survey said that India can benefit from the shift away from China and cited the growth in India’s manufacturing exports.

“The appeal of India lies in its large domestic consumer market, which makes it attractive for companies to set up operations there. In the electronics sector, there is a focus on smartphone manufacturing and assembly. The government’s PLI scheme, including tax breaks and subsidies, plays a significant role in attracting companies,” it said.

It is pertinent to note that Apple has moved a part of its production to India over the last few years, which has made the country an important producer of iPhones. Apple assembled $14 Bn worth of iPhones in India during FY24, constituting 14% of its global iPhone production.

Overall, the Survey said that India has seen a boost in its electronic exports, particularly in mobile phones. Exports to the US alone surged from $2.2 Bn in FY23 to $5.7 Bn in FY24. 

Similar to Apple, other tech majors are also looking to boost their productions in India. In February, it was reported that tech giant Google is looking to begin production of its Pixel smartphones in India. Further, Chinese Original equipment manufacturer (OEM) Xiaomi India recently revealed its plan to further expand its manufacturing partnerships in India.   

The post China Plus One: Economic Survey Bats For Increasing FDI From China In India appeared first on Inc42 Media.