Company Overview

• PhonePe is a mobile payment app that allows users to transfer money instantly to anyone by just using their phone number.
• PhonePe was found in December 2015 and was acquired by Flipkart in 2016. In 2018, Flipkart was acquired by Walmart and PhonePe was also part of the transaction.
• Flushed with funds after a massive $700 million funding round led by Walmart, PhonePe has been very aggressive with its marketing and acquisition. PhonePe was valued at $5.5 billion, making it the second most valuable fintech after Paytm.
• In April, it processed 1.19 billion UPI transactions, worth Rs. 2.34 lakh crore, cornering nearly 45% of the market. And with this recent acquisition, it has hit another milestone in the business world.

Acquisition Overview

• Bengaluru-based India’s leading UPI payment platform, Phonepe is all set to acquire homegrown content and app discovery platform, Indus OS for a deal valued at $60 million.
• This is believed to be the second acquisition PhonePe has made. In 2018, PhonePe had acquired point-of-sale startup Zopper as well, as part of its aggressive expansion.
• The rationale behind this acquisition is to boost its ‘super app’, called Switch, designed to offer a wide range of services under one umbrella. The super app aggregates 400 apps across verticals including categories such as food, travel, shopping, and lifestyle which users can access.
• With this acquisition, PhonePe not only gets Indus OS’ customer base of English-speaking 100 million users, but also plans to expand it for users not having English as their primary language.

IIT Delhi

Many unicorn startup founders in India attended IIT Delhi. The college also has an entrepreneurship growth cell and offers a variety of entrepreneurship short courses.

IIT Delhi alumni-founded startups raised $480 million in funding in the first half of 2020.From the first half of 2017 to the beginning of 2019, IIT Delhi alumni-founded startupsraised a total of $7483 million in funding.

Popular startup alumni include :

Deepinder Goyal (Zomato)

Total Funding : $2.15B

Sachin Bansal and Binny Bansal (Flipkart)

Total Funding: $9B

IIM Ahmedabad

This year, several top-funded startups have been founded by graduates of thisinstitution. With 462 million dollars collected in funding from alumni, the college is notfar behind IIT Delhi. From 2017 to 2019, startups led by IIM Ahmedabad graduates wereable to raise a total of $207 million.

Popular startup alumni include :

Deep Kalra (MakeMyTrip)

Total Funding : $748M

Sanjeev Bikchandani (Naukri.com)

Annual Revenue : $196M as on Dec 31, 2019

IIT Kharagpur

In the first half of 2020, IIT Kharagpur alumni-founded startups raised $329million. There are 637 companies created by alumni of the college as of July2020, including three unicorns. Sundar Pichai, the CEO of Google was also astudent of IIT Kharagpur.

Popular startup alumni include :

Rahul Jaimini (Swiggy)

Total Funding : $2.42B

Ramakrishna Adukuri (Stellapps)

Total Funding : $19M

IIM Calcutta

More than 380 Indian companies have been founded by IIM Calcutta alumni. Six ofthese are unicorn startups. The college is well-known for producing the founders ofmany of the country’s most well-funded startups. The alumni raised 328 million dollarsin investments between January 2020 and June 2020.

Popular startup alumni include :

Pranay Chulet (Quikr)

Total Funding : $370M

Sumant Sinha (ReNew Energy)

Total Funding : $125M

IIT Bombay

For several years, IIT Bombay has produced entrepreneurs who havelaunched some of the country’s most well-funded startups. IIT Bombayalumni own a total of 759 businesses. These companies were able to raisea total of $9.87 billion in funding.

Bhavish Aggarwal (Ola)

Total Funding : $3.28B

Overview of GupShup

• GupShup is a leading conversational messaging platform used by thousands of large and small businesses in emerging markets to have conversational experiences acorss marketing, sales and support. 
• Its API helps to enable over 1, 00, 000 developers and businesses and has the potential to deliver over 6 billion messages per month across 30+ messaging channels. 
• The compnay has declared to use every investment to scale up its product delivery and go-to market initiatives worldwide to accelerate the transformation of business-to-consumer interaction with conversational experiences. 
• The company exited the year 2020 with an annual revenue run rate of $150 million as per the compnay stats. 

Funding in GupShup

• Gupshup has raised $100 million in latest round of funding from Tiger Global at a valuation of $1.4 billion. 
• In their late stage venture funding of Series E, they raised $10M from Tenaya Capital, a venture capital firm investung in technology driven technologies. 
• Leading the Series D funding to help this venture, Globespan Capital Partners along with Helion Venture Partners and CRV invested $12M in 2010. 
• In Series C round of funding in 2008, GupShup managed to raise $11 million from two technology power based investors named Helion Venture Partners and CRV. 
• Gaining a bit of momentum they raised Series B funding of $10M from Llyod George Management, HTSG and Cambrian Ventures in 2006. 
• In their early stage round of Series A funding, they were backed by Cambrian Ventures with a funding of $1.1.M when they were recently launched in the market. 

Udaan Overview 

• Udaan is a B2B trading marketplace that has an aim of empowering retailers, wholesalers, traders, and manufacturers through the use of technology. Its network connects over 25,000 sellers to over 3 million B2B users in 900 cities. 
• It was founded in 2016 by former Flipkart employees – Amod Malviya, Vaibhav Gupta, and Sujeet Kumar. 
• Based on their business model, Udaan is an asset-light player and aims to help Indian SMEs with credit issues, B2B logistics, revenue, and marketing. 
• Udaan provides merchants on their platform with accounting, order, and payment processing solutions and provides retailers with affordable working capital (funds). In other words, Udaan is not only a forum for retailers and wholesalers, but it also underwrites small business loans. 

Funding History

• Earlier this month, B2B e-commerce platform Udaan had announced raising $280.5 million in its extended Series D round from new and existing investors. 
• Udaan has now raised $1.15 billion in total, including this new capital infusion. Udaan has surpassed $3 billion valuation as a result of this deal. 
• Existing Udaan investors Lightspeed Venture Partners, DST Global, GGV Capital, Altimeter Capital, and Tencent, as well as two new investors Octahedron Capital and Moonstone Capital, participated in the latest funding round. 

Overview

• Razorpay started with the objective of making online payments accessible to all companies whether big and small. Company offers a fast, affordable and secure way for merchants, schools, ecommerce and other companies to accept and disburse payments online. 
• With the new funds in hand, Razorpay has a wide range of goals that it has set out to achieve. The company is looking to expand its presence in South East Asian countries, scale up its business banking suite and also invest in acquiring new companies. 
• The company had recently acquired two startups – Opfin, a payroll and HR Management software company, and Thirdwatch, an Artificial Intelligence (AI) startup. It also plans to hire over 600 employees for the expansion plan. 

Revenue and Valuation

• Razorpay raised $160 million from Sequoia India and Singapore-based GIC in Series E funding round that has trebled the valuation of the payment gateway startup to $3 billion in less than six months. 
• Razorpay’s core business is payment gateway Company registered 2.6X jump in its revenues to Rs 509 crore in FY20. While it posted loss of Rs 6.15 crore during the same fiscal, it turned cash flow positive at the operational level during the fiscal. 
• Now Razorpay has become the 3rd most valued company in the fintech segment after Paytm and PhonePe. 

Overview of Meesho 

• Meesho operates as an online reselling platform that enables anyone to start a business without investment. It is a business platform trusted by more than 2.6 million resellers across India. 
• The company plans to deploy the fresh capital to help 100 million individuals and small businesses in the country to sell online. 
• Social commerce and business-to-business marketplaces have emerged as the potential sources of competition to e-commerce firms such as Amazon and Flipkart in India. 
• Social commerce is one prominent bet to take on modern e-commerce that has struggled to make inroads in India, despite billions of dollars ploughed by Amazon and Flipkart. Another bet is digitizing neighborhood stores in the country — without so much of the social element — that dot tens of thousands of towns, cities and villages in India. Global giants Facebook and Google are backing both the horses. 

Funding in Meesho

• The Series E funding round, led by SoftBank Group ‘ s Vision Fund 2, saw the valuation of the Bengaluru-based start-up rise to $2.1 billion from around $700 million in 2019. Existing investors Facebok Inc, Prosus Ventures, Shunwei Capital, Venture Highway and Knollwood Investment also participated in the latest investment round. 
• Meesho has raised a total of $515.2M in funding over 9 rounds by 25 investors out of which 12 were lead investors. 
• The online platfrom recorded a revenue of INR 341.6 Cr in FY20, ending March 31, 2020, representing a 4X spike from the INR 84.8 Cr revenue in 2019. In the same period, the company ‘ s expenses grew 3.5X to INR 657 Cr, leading to a loss of INR 315.4 Cr in the year, up from INR 100.42 Cr. 
• With the backing of the investors, it seems Meesho is riding on a high tide. 

Overview of Swiggy

• Swiggy is an on-demand food delivery platform, operating in over 500 cities that brings food from neighborhood restaurants directly to customers ‘ doors. 
• The fundraise has raised Swiggy’s valuation to more than $4.9 billion from its previous ascribed valuation of $3.6 billion in 2020.
• The next 10-15 years offer a once-in-a-lifetime opportunity for companies like Swiggy as the Indian middle class expands and their target segment for convenience grows to 500M (million) users over the period. 
• Swiggy which has approximately 60% share in the foodtech industry raised this round funding only weeks after its arch rival Zomato raised $ 250 million in its latest funding round and plans to go public this year. 

Funding in Swiggy

• Swiggy has raised $800 million in its latest Series J round of financing with Falcon Edge Capital, Amansa Capital, Think Investments, Carmignac and Goldman Sachs joining as new investors. Sovereign wealth funds Qatar Investment Authority and GIC of Singapore were also part of the financing round 
• Swiggy has raised a total of $2.4B in funding over 13 rounds by 23 investors out of which 11 of them are the lead investors of Swiggy. 
• The company’s business grew by 85% in the fiscal year 2019-20 with the addition of 100000 restaurants and over 2 lakh delivery fleet. 
• Swiggy’s revenue grew 129% year-on-year (YoY) from INR 1,292 Cr in FY19. During the same period, Swiggy’s total expenses grew 88% YoY to INR 6,864 Cr. As a result, the company’s losses grew 66% from INR 2,362 Cr in FY19 to INR 3,909 Cr in FY20 
• Indian food-tech aggregators are attracting investor interest, given the rise in demand for home delivery of food following the Covid-19-led lockdowns. Indian food-tech aggregators secured the second-highest amount of funding from investors in the first two quarters of FY21. 

Investments in EVs 

• A cumulative investment of over INR 12.5 trillion in vehicle production and charging infrastructure would be required until 2030 to meet India ’ s EV ambitions. 
• Inspite of 2020 being a rough year for businesses, a few EV startups saw a rise. 
• Euler Motors raised INR 200 Mn from Inventus Capital India as a part of its ongoing Series A funding.
• Yulu, the micro-mobility service provider announced in 2020 that Rocketship VC invested ₹300 million in the company. 
• TVS Motors acquired a stake of 29.48% in the EV startup Ultraviolette through a funding of INR 300 Mn 
• Ather Energy was the biggest funding recipient among Indian EV companies in 2020, with two huge deals raking in a total of INR 3.423 billion. 

The Healthtech Industry 

• There was a whopping $571 Mn investment in the healthtech industry in 2018 in India. Technologies like ML, robotic surgery, telemedicine, nanotech, IoT, AI, robotics, 3D printing are examples of a few technologies that have paramount importance in the healthcare industry. 
• The 2020 pandemic situation has provided a boost to rise of several healthtech startups.
• There are about 3,225 healthtech startups in India. They focus mainly on the accessibility of healthcare resources because the ratio of medical specialists to patients is quite imbalanced in the country. 
• Indian healthtech startups exist in divisions of pharmacy, home healthcare, diagnostics & biotech 

Investments in the Healthtech Industry

• Healthcare has become the hotbed for investments in India. 
• The total investments in healthtech startups in India in FY 20 over 141 funding rounds was $600 Mn. 
• In FY 20, 53% of the angel investments were towards healthcare. 
• In FY20, the number of angel/seed investments were at their highest as compared to venture capital, private equity and public equity with 57% of the total angel investments going towards healthcare technology sector till date. Q2 2020 saw 9 angel/seed deals in healthtech as compared to 3 deals being carried out in Q1 (2020), an increase of 3X. 
• It is evident that the new-age health-tech startups will define the post Covid pandemic world. 

What was the deal between Jaypee & UltraTech Cements? 

The deal was worth a whopping 3800 Cr

UltraTech Cement Pvt Ltd. took over the debt of Jaypee Cement worth Rs. 3650 Cr and issued fresh equity worth 150 Cr. The deal transferred all the cement operations of JCCL in Gujarat which consisted of units at Kutch, Sevagram, Wanakbori and other western regions to UltraTech Cement. The Gujarat Plant of Jaypee Cement had a 57 MW coal-based power plant and 30 MW diesel generator. The valuation of the plant would be approximately Rs. 7936 a tonne. 

Impact on Jaypee Cements 

Jaypee carried a debt of Rs. 56000 Cr on its books. The banks under pressure from RBI to get rid of bad loans insisted on selling off assets to pay the debt. The deal reduced the debt by Rs. 3650 Cr and helped to maintain the liquidity and reliability of the company. However, it lost a unit which was generating substantial cash flow. 

The shares of the company were valued at just Rs. 6.73 and were getting traded as stocks. After the transaction the price of the shares rose to Rs 43.40 

The deal reduced the capacity of Jaypee Cements to 33 Million Tonnes but it still continued to operate as the third largest producer of cement in the country. 

Impact on UltraTech Cement

Ultra Tech greatly benefitted from the deal. Acquiring Jaypee’s units gave UltraTech a presence in the central and western regions where it lacked presence. Gujarat was strategically well-positioned too from an export point of view for UltraTech to explore new markets. 

The deal helped UltraTech to establish itself as a market leader again. Its capacity, with the addition of 4. MTPA, to 59 MTPA. The market share of UltraTech increased from 17% to 21% as it was able to create synergies between its existing plant in Saurashtra and Jaypee ‘ s plant which was embedded with latest technology and could generate immediate cash flows.