Here are the top headlines from the startup space.
Indian startup funding drops by 33% in April-June quarter: Tracxn Report
The total funding raised by Indian startups has declined by 33 percent from $10.3 billion during the January-March quarter to $6.9 billion in the second quarter, according to a report by SaaS-based market intelligence platform Tracxn.
The report has highlighted that fundraising during the last three months also witnessed a decline in comparison to the same quarter last year (Q2 2021), where the total funds raised were $10.1 billion.
It is leading to the major consensus amongst market players of a ‘winter of funding’ or a downturn in investors’ confidence and sentiments towards funding startups, Tracxn said in a statement.
Also read: Indian start-ups may see over 60,000 job losses in 2022 led by edtech and e-com, warns report
“Though investors are a little wary due to the current environment it hasn’t dampened the investment spirit of the community. They have become more decisive about the startups they want to nurture and are focusing extensively from a long-term gain perspective,” said Abhishek Goyal, Co-Founder, Tracxn.
Top startups which raised funds during the quarter include Dailyhunt parent VerSe Innovation ($805 million - Series J), Delhivery ($304 million - Series J), and Udaan ($275 million - Series D). They were followed closely by ShareChat ($255 million - Series G) and upGrad ($225 million - Series F).
Rajeev Misra steps back from SoftBank to launch new fund: Report
Rajeev Misra, CEO, SB Investment Advisers, which manages SoftBank Vision Fund, is stepping back from his role at the Japanese company to launch a new fund.
Misra will retain a senior position with the group’s first $100 billion Vision Fund, but relinquish other roles, sources told Bloomberg News.
SoftBank founder Masayoshi Son announced the plan in a memo, telling staff that Misra had agreed “to build and run a new external multi-asset investment fund” that would have a broader remit than SoftBank’s two Vision funds.
As per the report, Misra has already secured more than $6 billion in backing, including from Middle East investors, for a new fund that’ll target a mix of strategies. Akshay Naheta, a former colleague of Misra, alongside SoftBank managing partners Yanni Pipilis and Munish Varma, have held discussions to join Misra’s venture.
Deliberations are ongoing and no final decisions on the fund’s size or the timing of its launch have been made, according to the people. Plans could also still falter, the report added.
Swiggy completes acquisition of Dineout
Food and groceries delivery e-commerce major, Swiggy has completed the acquisition of Dineout, a dining out and restaurant tech platform.
Dineout founders Ankit Mehrotra, Nikhil Bakshi, Sahil Jain, and Vivek Kapoor have joined Swiggy as the acquisition is completed.
Taking to twitter, Swiggy Co-Founder Sriharsha Majety said, “Today marks another milestone with @Dineout_India and the entire team becoming a part of @Swiggy. We welcome the founders @Ankitatdineout @sahil685 and the entire team while we gear up to offer unmatched experiences to our consumers.”
The food delivery giant had acquired Dineout in May this year. The deal will "enable Swiggy to cater to every food occasion", a statement said, adding that the food ordering platform will strengthen its position with Dineout's offering. Swiggy restaurant partners, too, will be benefited with a larger customer base, it said.
Allen sues 20 educators for 'breach of contract': Report
Allen Career Institute has sued 20 of its former educators for alleged breach of employee agreements, sources told Moneycontrol.
In the last week of June, Allen filed cases under Section 34 of the Arbitration and Conciliation Act in the Jaipur Commercial Court, alleging a breach of contract as the educators did not serve a notice period after tendering resignations, sources added.
The contract didn’t allow educators to resign for three years from the day of taking up the job, Allen said in its petition, a copy of which was reviewed by Moneycontrol.
If educators disassociated themselves from Allen, they were liable to pay damages—two times their total earnings—to the company, the report added. The case will next be heard on July 13.
Nykaa expands into men's innerwear and athleisure category
Cosmetics-to-fashion retailer Nykaa has expanded into men’s innerwear and athleisure category with GLOOT. While announcing its entry into the men’s innerwear category, Nykaa Fashion said that the new multi-brand e-commerce fashion offering was “inspired by the needs of health-conscious individuals”.
The company noted that most men's underwear options cause discomfort in a number of ways, including odour, and lack of active underwear options. In addition, the firm found a lack of understanding of the difference between trunks, boxer briefs, briefs, etc., which Nykaa's new product GLOOT hopes to solve. GLOOT will offer a wide range of underwear across all categories.
The TPG-backed company said in a statement that with this launch it “aims to redefine an often-ignored space when it comes to men’s requirements by combining comfort and technology in a way that is kind to the planet.”
Cars24 to reduce burn rate by 50% & halt global expansion plans: Report
Used cars selling startup Cars24 is looking at various measures to cut costs as late stage funding deals dry up, sources told the Economic Times.
The is looking to reduce its burn rate by around 50% to extend its runway and readjust to a relatively slower rate of growth. The Gurgaon-based company's burn, or cash-spending rate, was around $20 million per month and it is now looking to bring it down to about $10 million, one of the people aware of the matter said, said the report.
The company is not looking to exit any of its overseas markets, it will hit pause on aggressive marketing and expansion plans in places like the UAE, Middle-East, Thailand, and Australia, the report added.
iD Fresh Food offers stock options worth Rs 46 Cr to 27 employees
Homegrown fresh food brand iD Fresh Food has announced its seventh round of Employee Stock Option Plan (ESOP) tranche worth Rs 46 crores for 27 staff members. Since 2016, the D2C startup has granted around Rs 300-crore worth of ESOPs to employees across functions.
“Our latest ESOP grant is a small effort to thank them for their valuable contributions. 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,” said PC Musthafa, co-founder and CEO, iD Fresh Food.
The company retails to more than 30,000 offline outlets across India, the UAE, and the US and has clocked revenue in excess of Rs 500 crore in FY 2021-22.
Pine Labs-owned Setu gets RBI's in-principal approval to operate as an account aggregator
Fintech infrastructure startup Setu’s subsidiary Agya Technologies has received an in-principle licence from the Reserve Bank of India (RBI) to operate as an account aggregator.
Taking to twitter, Nikhil Kumar, Co-founder, Setu, said “In the last ten years India’s financial services landscape has been shaped by the public digital Infrastructure; Aadhaar – brought down the cost of onboarding, UPI – brought down the cost of transactions and now account aggregator will usher a new wave of innovation.”
The approval will allow the company to launch its own AA platform. Earlier the company had built the interface for Onemoney which is a licensed AA and was one of the first to release an app.
“The licence enables us to now go deeper and power AA for every single bank, NBFC, and fintech in India. We are looking forward to working with the amazing team @sahamati to build the ecosystem and accelerate the speed of AA adoption,” added Kumar.
BuildNext bags $3.5M in Pre-Series A round led by Pidilite
BuildNext, a tech-enabled homebuilder has raised $ 3.5 million in a Pre-Series A funding round led by Pidilite Industries’ wholly owned subsidiary – Madhumala Ventures.
Existing investors Konglo Ventures, Vineet Kumar (CEO, Native) and Deep Gupta (FatEngine) among others, also participated in the funding round.
The startup said it will use the fresh capital to further expand its R&D capabilities and upgrade its Virtual Reality technology experience centres. It will also expand into new markets Bengaluru, Chennai and Coimbatore while strengthening its foothold in its existing markets, the statement added.
“These funds will help us establish a strong presence in South India, and help us achieve our goal of adding 1000+ homes to our current portfolio,” said Finaz Naha, Co-founder and COO, BuildNext.
WayCool raises Rs 50 Cr in debt round from Stride Ventures
Agritech startup WayCool has received Rs 50 crore in debt funding round which was led by Stride Ventures. With this round, the venture debt firm plans to expand its portfolio of new-age Indian startups that are working in diverse sectors.
“WayCool aims to build the world's largest food development and distribution services company and positively impact the lives of 150,000 farmers. The company is supported by best in class investors and a remarkable team who are building the future of the Indian food economy,” said Apoorva Sharma, Partner, Stride Ventures.
This fundraise comes after WayCool secured $40 million from global alternative investment company 57 Stars in June this year. The startup will use the fresh capital to invent in tech-related expansions.
Zetwerk elevates Ankit Fatehpuria as cofounder
B2B manufacturing unicorn Zetwerk has elevated Ankit Fatehpuria as the fifth cofounder of the company.
Fatehpuria joined Zetwerk in 2019 and was responsible for setting up the finance vertical of the company. He also seeded and scaled various business verticals for Zetwerk.
Ankit will now be even more closely involved in helping shape the company’s future towards Zetwerk’s mission to modernise manufacturing and to build an enduring company, a statement said.
Apart from Amrit Acharya, Srinath Ramakkrushnan, Vishal Chaudhary, and Rahul Sharma are the other cofounders of Zetwerk,
11 startups graduate under Upsurge of WE-HUB and Australian High Commission
Eleven startups graduated in the second cohort of Upsurge, a WE HUB program in collaboration with the Australian Consulate General.
The 2nd cohort of the program witnessed 70 eligible applications, out of which 23 women entrepreneurs were shortlisted from across nine sectors and three states. The graduating startups of the cohort were Zero Waste Store, Solutions for Online Learning, Logistics App, Apic Book, Sri Raghavendra Granites, Reze, JaldiDesi, C&S Technologies, PALL Healthcare, Khansland, Akunera Foods.
“Going forward, we will support this cohort of women as part of WE HUB's flagship incubation program to ensure that the entrepreneurs move from a prototype to MVP stage,” said Deepthi Ravula, CEO, WE HUB.
She also announced that the applications for the 3rd cohort of Upsurge program are live and those who are interested to take part in this, can apply before 30th July 2022.
Ivestment bankers turned entrepreneurs launch Sudo Foods, a plant-based startup
Investment bankers turned entrepreneurs Sadhika Agarwal and Abhinav Chawla have launched plant-based meat startup Sudo Foods across Bengaluru.
The brand has launched plant-based chicken samosas, chicken seekh kebabs, chicken popcorn, and mutton galouti kebabs. With four products out on the market and a fifth (plant-based chicken burger patty) in the pipeline, Sudo Foods is aiming to redefine plant-based snacking, a statement said.
Their ready-to-cook products can be served up in under 10 minutes and are currently retailing via D2C and B2C channels. The startup has been operating in stealth mode over the last year and has now launched across Bengaluru via the Sudo Foods website and on retailing platforms like VeganDukan and NotFoods. The brand plans to soon be listed on other marketplaces as well.
Over 66% of India’s blue-collared employees earn below Rs 15K per month: Salarybox Report
More than two-thirds of blue-collared employees in India earn less than Rs 15,000 per month, according to a report by payroll management app Salarybox.
The report added that females in the workplace made Rs 12,398 on average, which was 19 percent less than their male colleagues, which brings forth the country’s wide gender pay disparity.
The survey also highlights that less than 15 percent of the employee base earns in the range of Rs 20,000-40,000 per month (on an average Rs 25,000).
Interestingly, the majority of firms pay wages below the minimum wage set by the Central Pay Commission (CPC), that is Rs 18,000 per month. The report is based on a database of over a million employed workforce from more than 850 districts around the country.
The report also found that only 27 per cent of the workforce is made up of women, whereas 73 per cent of the workforce is made up of men. Employees working at supermarkets, grocery/kirana/general stores as well as the garments/textile industries are paid at the lower end of the scale, with an average monthly salary of Rs 8,300.
Logistics and transport, IT software, and tailoring /boutiques emerge as the businesses that pay the most to females, with primary roles being of telecallers, documentation executives, and recruitment associates.
CuriousJr partners with ACT to build more effect platform for education
CuriousJr, an edtech startup has collaborated with ACT, a non-profit venture philanthropy platform, to address India's learning crisis by building a more effective, affordable, and accessible edtech platform.
The solution is designed to teach coding and enable learners to build problem-solving, analytical thinking, and creativity skills through a highly gamified experience and byte-sized content.
According to the company, currently, atleast 88% of the K12 students do not have access to laptop/desktop which requires mobile solution for students to learn to code. 79% students in the country are learning in their mother tongue hence learning solution in vernacular language becomes essential to ensure effective learning system across the country.
Under this partnership, ACT will provide CuriousJr with catalytic funding to support solutions, mobilise ACT's network by strengthening, scaling, and accelerating CuriousJr's networks to meet key portfolio needs and generate insights on how the coding platform.
Chargeup partners with Paisalo and Goenka Electric Motors to help E-rickshaw drivers own their vehicles at Rs 90,000
Chargeup, a battery-swapping network for electric two and three-wheelers, has tied-up with Paisalo Digital and Goenka Electric Motors (GEM), to help E-rickshaw drivers own their vehicles at Rs 90,000.
This initiative will help over 10,000 e-rickshaw drivers as they will benefit from rate reduction, financing and battery swapping support. As a pilot offering, all Chargeup battery swapping stations across Delhi/NCR will provide easy ownership of EVs, a statement said.
Around 50 e-rickshaw drivers have already benefited so far. Further, the company has come up with a finance scheme enabling the drivers to loan the vehicle cost at10% interest rate. The service will be extended to other cities going forward.
GLOBAL TECHNOLOGY & STARTUP NEWS
Apple to release new 'Lockdown Mode' as it battles spyware firms
Apple has said it plans to release a new feature called "Lockdown Mode" this fall that aims to add a new layer of protection for human rights advocates, political dissidents and other targets of sophisticated hacking attacks.
As per a Reuters report, the move comes after at least two Israeli firms have exploited flaws in Apple's software to remotely break into iPhones without the target needing to click or tap anything. NSO Group, the maker of the "Pegasus" software that can carry out such attacks, has been sued by Apple and placed on a trade blacklist by US officials.
"Lockdown Mode" will come to Apple's iPhones, iPads and Macs this fall and turning it on will block most attachments sent to the iPhone's Messages app. Security researchers believe NSO Group exploited a flaw in how Apple handled message attachments. The new mode will also block wired connections to iPhones when they are locked. Israeli firm Cellebrite has used such manual connections to access iPhones.
Airbnb obliged to provide information to tax authorities: EU Advisor
Short-term accommodation services company Airbnb is obliged to provide information in rental contracts to tax authorities, an adviser to Europe's top court said, in another potential legal setback in Europe for the company.
Airbnb has in recent years found itself at loggerheads with authorities in several European Union countries, arguing that taxation and other requirements contravene the EU principle of the freedom to provide services across the 27-country bloc.
The latest case involves a 2017 Italian law requiring Airbnb and other short-term rental sites to forward information from their rental contracts and withhold 21% from the rental income and pay it to tax authorities, Reuters reported.
The company challenged the law in an Italian court which subsequently sought guidance from Luxembourg-based European Court of Justice (ECJ).
Crypto exchange FTX has "a few billion" to support industry - Bankman-Fried
Sam Bankman-Fried, head of one of the largest cryptocurrency exchanges, FTX, said he and his company still have a "few billion" on hand to shore up struggling firms that could further destabilize the digital asset industry, but that the worst of the liquidity crunch has likely passed.
Bankman-Fried, 30, who is from California but lives in the Bahamas where FTX is based, has become crypto's white knight in recent weeks, throwing lifelines to digital asset platforms which have faltered as cryptocurrencies prices have cratered. Bitcoin is down around 70% from its all-time November high of nearly $69,000.
"We're starting to get a few more companies reaching out to us," Bankman-Fried said in an interview to Reuters. Those firms are generally not in dire situations, though some smaller crypto exchanges may still fail, he said, adding that the industry has moved beyond "other big shoes that have to drop."
(Edited by : Anand Singha)
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