Startup Digest: Honasa Consumer acquires BBLUNT, Eupheus Learning acquires SchoolMitra, FirstCry appoints Kotak & Morgan Stanley for its $1 billion IPO, says report

As part of the deal, Honasa will operate and manage BBLUNT's hair care and styling products business while BBLUNT salon business will continue to operate as an independent entity, with the founding team Adhuna Bhabani, Osh Bhabani and Avan Contractor as creative directors and Spoorthy Shetty as CEO, a company statement said.

App-based health and fitness platform Cult.fit on Monday has acquired the India business of international fitness chain Gold's Gym for an undisclosed sum. Cult.fit, now a unicorn, picked up a majority stake in F2 Fun & Fitness India, becoming the master franchise partner for Gold's Gym in India.

The startup now aims to expand the Gold's Gym brand in key geographies such as Sri Lanka, Bangladesh, Maldives, Nepal and Bhutan. The company, which currently has Cult and Fitness First brands, said it will focus on independently growing the Gold's Gym brand, scaling revenues of existing Gold's Gym centres, and enabling further expansion using the franchise model.

Debt marketplace CredAvenue has made its first acquisition by picking up a majority stake in the digital debt collection platform — Spocto Solutions. The move comes shortly after CredAvenue closed one of the largest Series A funding rounds, securing $90 million in September last year.

Also Read: This is how Capgemini plans to beat the Great Resignation

By bringing Spocto into its fold, CredAvenue — which connects companies with financiers for debt funding — can now close the loop of the lending life-cycle by helping lenders with digital debt recovery. Now, financiers will be able to provide funding, track repayments and initiate recoveries on a single platform.

Edtech platform Eupheus Learning has acquired SaaS-based startup SchoolMitra for an undisclosed amount. This acquisition will make SchoolMitra's 21st-century school OS accessible to 20,000+ schools of Eupheus Learning, simplifying the lives of all the stakeholders, including parents, teachers, students and the school administration, the company said in a statement.

E-commerce marketplace SustainKart has acquired homecare brand, FromVedas for an undisclosed sum. This is SustainKart’s first acquisition after it raised $500,000 pre-seed round from India Accelerator and aims to buy seed-stage digital consumer first brands and help them scale up their business.

SustainKart said it will invest in marketing support and strategic celebrity partnerships to promote these brands across the board. The e-commerce aggregator claims to have registered one lakh orders in January 2022.

API infrastructure company M2P Fintech has signed a definitive agreement to acquire BSG ITSOFT, a core banking solutions provider. The deal size, however, remains undisclosed. The acquisition further bolsters M2P Fintech’s approach to providing a new generation cloud-native platform and positions M2P Fintech to offer a fully integrated banking and payments stack that is built on API-first infrastructure, the company said in a statement.

Curated marketplace for parenting and childcare products The Nestery has acquired Toy Academy and its intellectual property, for an undisclosed sum.

Toy Academy’s IP buyout will further bolster Nestery’s continued focus on building an empathetic shopping experience for each parent on their platform, it said in a statement.

Fintech startup Slice has completed its maiden employee stock ownership plan (ESOP) buyback worth Rs 65 crore. Around 60 of both former and existing employees are eligible for the buyback, the startup said. It added that an average of Rs 1.2 crore has been paid out to eligible existing and former employees in this initiative.

B2B e-commerce platform Udaan has removed the one-year cliff on employee stock option plans (ESOPs) that mandated people to wait for a year before vesting their stocks, allowing all future ESOP allocations to vest every quarter.

As a part of the revamp, the company also announced that every employee at Udaan, regardless of their tenure or job profile will be allotted ESOPs under their Annual Performance cycle.

Also Read: Metaverse to drive revenue growth for companies in 3 to 5 years, says TCS President

Further, these ESOPs will vest at a quarterly frequency and be completely vested within a two-year period as compared to the usual industry norm of four years. Following these changes, the overall number of ESOP holders in the company has grown by 400 percent and now covers its complete employee base.

Edtech unicorn Lead School has announced a $3 million Employee Stock Options Plan (ESOP) liquidation programme for its employees. The announcement comes after LEAD secured Series E funding of $100 million from WestBridge Capital. The company said that it has distributed ESOPs to approximately 20 percent of its employees.

Edtech firm Hero Vired has launched a faculty ESOP programme to reward and retain talent. Under the program, all full-time faculty members and teaching assistants – who have completed six months with the startup, will be eligible for the buyback scheme, it said in a statement. The program will also be extended to new faculty members as and when they meet the stipulated requirements.

The total ESOP pool has been capped at 10% of the total valuation of the startup. A total of 10 full-time faculties have collectively been granted ESOPs worth around Rs 50 lakhs. The startup expects this number to hit Rs 10 crore in the coming 3-4 years.

Softbank-backed FirstCry, a baby and kids products platform has initiated preliminary discussions with investment banks to launch a mega initial public offer in 2022, sources told Moneycontrol. As per the report, work has begun on the FirstCry IPO. Investment banks Kotak Mahindra Capital and Morgan Stanley are on board and more bankers are likely to be added later.

The firm plans to raise in excess of a billion dollars via the listing. The proposed IPO will be a combination of primary and secondary issues of shares and it may be the first pure playlisting of its kind. It will provide a partial exit to the multiple investors, the report added.

The Delhi High Court has dismissed Zostel’s plea claiming 7 percent shareholding in Oyo. The plea (appeal) in question was filed by Zostel, to restrict Oyo from modifying its shareholding as the hospitality start-up (Oyo) gears up for its upcoming initial public offering (IPO). The High Court ruling was announced by a single-judge bench headed by Justice C Hari Shankar.

Zostel and Oyo have been embroiled in a legal battle ever since a merger deal entered between the two companies fell through, back in 2016. In light of Oyo’s upcoming IPO, Zostel had sought to restrain the former from altering its shareholding structure.

Edtech decacorn BYJU’S has announced the launch of offline coaching classes for schoolchildren. The firm has decided to open 500 physical tuition centres across 200 cities in 2022 after a pilot. The edtech giant said the offline classes would be available for pupils in classes 4 to 10.

The centres were launched after positive feedback on the first 80 centres, which were part of a pilot programme, it said in a statement. The firm is also looking to invest $200 million in offline tuition centres over the next 12-18 months, as per a report by the Economic Times.

Google will adopt new privacy restrictions that will curtail advertisers’ ability to track users of Android phones and other devices. The Alphabet-owned company follows Apple in taking steps to strengthen privacy by putting restrictions on advertising practices that covertly collect data from mobile devices.

Google will develop other ways for businesses to reach mobile users and gather information while restricting sharing of personal data of the individual. A similar “privacy sandbox” initiative was introduced in the Chrome browser in 2019.

Foodtech unicorn Rebel Foods is scaling up operations of building and running virtual restaurant brands in India and globally. US fast-food giant Wendy's has opened 28 cloud kitchen units in 9 new Indian cities with its Rebel Foods partnership.

Also Read: ABG Shipyard allegedly used 98 firms to divert funds: Report

Wendy’s is now available across 16 cities and delivers in 75 locations across the country, the company said in a statement. Accelerating this growth further, Rebel Foods said it will further develop and operate approximately 200 Internet Restaurants in the next two year.

Fintech platform Paytm has shared the operating performance of the company during January 2022. The number of loans disbursed through its platform grew 331% year-on-year to 1.9 million loans, while the value of loans disbursed was Rs 921 crore, an increase of 334% year-on-year during the month, the company said in a statement. The company has clocked the highest-ever growth in average monthly transacting users (MTU) at 68.9 million, up 40% year-on-year.

Domestic car sharing marketplace Zoomcar has elevated Nirmal NR as the CEO for the Indian market. Working as President for Growth and Marketplace at Zoomcar, Nirmal will now be responsible for all aspects of growth, operations and customer experience for the company in the country.

"His diverse skillsets and seasoned leadership will play an instrumental role in continuing to scale the India business," said Greg Moran, CEO and Co-Founder, Zoomcar. With more than 10,000 cars already on the platform across several cities, the company expects to grow the platform to over 50,000 cars and 100 cities this year.

One out of four Indian households that shop groceries online use quick commerce or fast delivery applications for buying last-minute essentials and indulgence foods, according to a survey by LocalCircles. For only 8 percent of those who buy groceries online fast delivery is a top priority, while for 86 percent of shoppers top criteria for them are selection, availability and value.

One in 10 households was placing over 10 orders a month through Quick Commerce apps. Of the households that use fast delivery apps, 71 percent are using them to purchase last-minute essentials or indulgence foods, while 29 percent are buying even their regular groceries.

Thirteen large deals of over $100 million each and heightened focus on startups helped the Indian venture investing ecosystem post a 180% increase in the overall activity in January to $4.5 billion across 117 transactions. The private equity and venture capital funds had invested $4.4 billion across 102 deals in the preceding month of December.

One of the major drivers for the activity in March was investments in startups by venture capital funds, which surged to $3.1 billion in 85 deals, which was way higher than the $700 million in the year-ago period but down from December's $3.2 billion, as per the monthly round up by the consultancy firm EY and industry lobby grouping IVCA. E-commerce was the most active sector when it comes to inflows, accounting for $1.7 billion of investments in 20 deals, it said.

The Indian IT industry is expected to clock revenue of $227 billion in FY2022 against $196 billion last year, the NASSCOM Strategic Review report revealed.

The industry, which has a total workforce of around 5 million, is likely to register a 15.5 percent growth, the highest since 2011, the industry body said.

NASSCOM's president Debjani Ghosh said that it was a watershed year for the tech industry, which grew on the back of its persistent focus on customer-centricity. “The industry has added $100 billion in ten years; the first $100 billion took 30 years,” Ghosh said.

The Karnataka High Court has struck down the state's recent online gambling law as unconstitutional, providing a major relief to the skill-based gaming firms that had shut down operations in the state.

This judgment will likely pave the way for fantasy sports and gaming firms such as Dream11, Mobile Premier League, Games24x7 (RummyCircle, My11Circle), and Ace2Three make a comeback in the state. They had suspended operations in October last year.

The Karnataka High Court had on December 22 reserved its judgment after concluding the hearings from a series of petitioners that included industry associations, gaming companies and individuals who had challenged the constitutional validity of the state's new online gambling law that came into effect on October 5.

China has expressed serious concerns regarding the Central government’s ban on Chinese apps for security reasons. As per a Reuters report, China added that it hopes India would treat all foreign investors, including Chinese firms, in a transparent, fair and non-discriminatory manner.

"We hope India can take concrete measures to maintain the sound development momentum of bilateral economic and trade cooperation," said Gao Feng, spokesman for the Ministry of Commerce. India has blocked access to 54 mobile apps, mainly Chinese, government sources told Reuters.

E-commerce sites operated by China's Tencent and Alibaba were included on the US government's latest "notorious markets" list, the US Trade Representative's office said. The list identifies 42 online markets and 35 physical markets that are reported to engage in or facilitate substantial trademark counterfeiting or copyright piracy, as per Reuters.

"This includes identifying for the first time AliExpress and the WeChat e-commerce ecosystem, two significant China-based online markets that reportedly facilitate substantial trademark counterfeiting," the USTR office said in a statement.

China-based online markets Baidu Wangpan, DHGate, Pinduoduo, and Taobao also continue to be part of the list, along with nine physical markets located within China "that are known for the manufacture, distribution, and sale of counterfeit goods," the USTR office said.

Tesla and its Chief Executive Elon Musk accused the US Securities and Exchange Commission (SEC) of harassing them with an "endless" and "unrelenting" investigation to punish Musk for being an outspoken critic of the government.

The accusation came in a letter to US District Judge Alison Nathan in Manhattan, who presided over a 2018 SEC settlement stemming from Musk's tweet about a potential buyout of Tesla, Reuters reported. "Mr. Musk and Tesla respectfully seek a course correction," wrote Alex Spiro, a lawyer for Musk and Tesla. "Enough is enough."

Microsoft is reopening its Washington state and California Bay Area offices on February 28 as Covid-19 cases continue to ease. Those offices will be open to employees, visitors and guests. Microsoft postponed its October 4 return-to-office plans indefinitely in September, impacting more than 103,000 US employees, as per a CNBC report.

The company has been operating under a phased return-to-work plan. The latest move is its sixth and final phase, and it says it anticipates reopening the rest of its US offices as conditions allow.

Warren Buffett's Berkshire Hathaway has acquired nearly $1 billion of shares in Activision Blizzard before Microsoft agreed to buy the video game maker for $68.7 billion, according to a regulatory filing seen by Reuters.

Berkshire said that as of December 31, it owned 14.7 million shares worth about $975 million of the "Call of Duty" maker. Microsoft announced its plan to buy Activision Blizzard on January 18, in its largest-ever acquisition.

Facebook has agreed to pay $90 million to settle a decade-old privacy lawsuit accusing it of tracking users' internet activity even after they logged out of the social media website, Reuters reported. A proposed preliminary settlement was filed on Monday night with the US District Court in San Jose, California, and requires a judge's approval. The accord also requires Facebook to delete data it collected improperly.

Users accused the Meta Platforms unit of violating federal and state privacy and wiretapping laws by using plug-ins to store cookies that tracked when they visited outside websites containing Facebook "like" buttons.

Airbnb reported a $55 million profit for the fourth quarter, reversing a huge loss a year earlier, as its revenue soared above pre-pandemic levels. The San Francisco-based short-term-stay company said bookings surged in small and towns and rural areas, and improved even in urban areas, which were hit hardest earlier in the pandemic.

Airbnb hosts were also able to raise prices. The average daily rate in late 2021 was $154, a 20% jump from a year earlier and 36% higher than the same quarter in 2019. The company cited strong demand for rentals in North America and an ongoing shift toward customers booking entire homes and vacation destinations where prices are usually higher.

Microsoft co-founder Bill Gates through investing arm Breakthrough Energy Ventures has invested $50 million in energy storage startup Antora to help heavy industry go green. As per CNBC, Chris Sacca’s Lowercarbon Capital co-led the round and it also saw participation from Energy giant Shell’s venture arm. For now, Antora is still a lab project. CEO Andrew Ponec said he doesn’t expect deployments to begin until late 2023.

Details about former US President Donald Trump's new social media app are trickling out as about 500 beta testers have begun using an early version of "Truth Social,” sources told Reuters. The testing of Truth Social comes a year after Trump was banned from Facebook, Twitter and Alphabet's YouTube. His new media and technology venture, Trump Media & Technology Group (TMTG), has pledged to deliver an “engaging and censorship-free experience” on the app, which Chief Executive Devin Nunes has said will launch by the end of March. By late Wednesday, Trump's account on Truth Social had 317 followers, according to a screenshot viewed by Reuters. Trump had 88 million followers before Twitter banned him.

Canada's Shopify forecast a slowing pace of revenue growth in the first half of the year and said it was ramping up spending on a network of fulfillment centers, sending its shares tumbling 18%. Shopify said it was estimating a capital expenditure of $200 million in 2022 as it ramps up operations and was likely to spend about $1 billion on warehouse hubs in the following two years. For the fourth quarter ended Dec. 31, revenue rose 41% to $1.38 billion, compared with analysts' estimates of $1.33 billion, according to Refinitiv data. Excluding items, it earned $1.36 per share, 9 cents above estimates.

Spotify has deepened its investment in podcasting with the acquisitions of Podsights and Chartable, two services that provide greater insights for advertisers and podcasting publishers, Reuters reported. Podsights helps marketers gauge the effectiveness of their ads, one area that Spotify said has been a major challenge. Chartable provides audience insights that help podcast publishers measure the effectiveness of their growth campaigns. Financial details of the transactions were not available.

Visa cards will be accepted at all Amazon stores and sites as part of a global agreement, the companies said. The retail giant also said it will not turn off Visa credit cards from Amazon's UK website and customers in Australia and Singapore will no longer pay a surcharging fee to use a Visa credit card. "We've recently reached a global agreement with Visa that allows all customers to continue using their Visa credit cards in our stores," an Amazon spokesperson said in an email to Reuters.

British tax authorities made their first seizure of non-fungible tokens in a crackdown on suspected criminal activity to hide money, Reuters reported.

Her Majesty's Revenue & Customs seized three NFTs after investigating an attempt to defraud the public coffers of 1.4 million pounds ($1.9 million).

Around 5,000 pounds worth of other crypto assets were also seized.

Chinese ride-hailing giant Didi Global plans to reduce its overall headcount by as much as 20% as the troubled tech firm pushes ahead with plans to transfer its stock-market listing to Hong Kong, Bloomberg News reported.

Most of the company’s core businesses will be affected by the cuts, which are aimed at reducing expenses ahead of the Hong Kong listing, sources told Bloomberg News. Ride-hailing may see staff reductions of up to 15%, though drivers, gig workers who aren’t officially included in the company’s headcount won’t be affected.