MSME-focused digital lender NeoGrowth raises $10mn from MicroVest

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January 17, 2023

Mumbai-based MSME-focused digital lender NeoGrowth has raised $10 million from US-based global investment firm MicroVest Capital Management.

NeoGrowth plans to use the funds to provide loans to small businesses across India.

“NeoGrowth is dedicated to funding India’s small businesses by leveraging the digital payments ecosystem,” said NeoGrowth MD and CEO Arun Nayyar. “This support from MicroVest will allow us to continue making a positive impact on SMEs. The funding will be used to help accelerate the growth of MSMEs and integrate them into the mainstream financing ecosystem.”

NeoGrowth, founded by Dhruv and Piyush Khaitan a decade ago, has provided loans totaling more than $1 billion to over 1,50,000 customers in 25 locations in India. To give SMEs access to credit, the company’s digital payments-based lending, modular product suite, analytics-based underwriting, and flexible repayment options are crucial.

“NeoGrowth’s digitally-enabled lending model will allow the company to reach more small businesses across India with greater efficiency,” said MicroVest CEO Joshua Moraczewski.

He also said, “This expanded reach will help promote financial inclusion and economic growth for more underserved micro-entrepreneurs and SMEs. Through this loan, we are leveraging both of our organizations’ synergies to achieve meaningful scale and contribute to the Sustainable Development Goals.”

Deeptech startup Chara secures $4.75mn in a pre-Series A round

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January 17, 2023

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Chara, a deeptech startup, has raised $4.75 million in a pre-Series A round led by Exfinity Venture Partners.

Vietnam-based Big Capital, the venture arm of Bitexco and Log9 Materials, and existing investors Kalaari Capital and ciie.co also took part in the round.

According to the company founder and CEO of Chara, Bhaktha Keshavachar, the funds will be used for team expansion, international business development, and initial investment in the manufacturing and deploying of developed motors and controllers.

Bhaktha Keshavachar, Ravi Prasad Sharma, and Mahalingam Koushik founded Chara in November 2019 to build a scalable, cloud-controlled, and rare-earth-free platform for developing and deploying electric motors for various applications.

For two-wheelers (hub and mid-mount), three-wheelers, light commercial vehicles, and HVAC (heating, ventilation, and air conditioning) use cases, Chara has developed motors so far. The motors and the matching controllers are expected to enter production later this year after undergoing field testing. In addition, Chara is working on projects to provide heavy-duty commercial vehicle controllers and motors.

According to Bhaktha, Chara is aiming to overcome ineffective and rare-earth-dependent practices. He said that the company makes sophisticated motors and controllers that are cost-effective, hyper-efficient, and rare-earth-free for use in EVs, HVAC systems, and other industries.

“Exfinity strongly believes that the EV story for South Asia and similar markets has to be contextualized and not replicated from the US and European markets,” said Chinnu Senthilkumar, Managing Partner, Exfinity.

“After our earlier investment in Log 9 Materials, Chara is part of our continued belief in this thesis. Chara delinks the permanent magnet supply chain dependency from China and other countries,” he said.

Incedo plans to hire 1000 in 2023, says CEO

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January 17, 2023

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The American digital transformation firm Incedo expanded its Pune facilities by opening a new research and development center, with the company planning to hire at least 1000 new employees through 2023.

In addition to Pune, the company has facilities in Bengaluru, Chennai, Gurgaon, and Hyderabad. It also has some employees working in the United States and Mexico.

The CEO of Incedo, Nitin Seth, told TOI that despite concerns about a recession and other global economic challenges, the company expects to outgrow the sector’s typical growth rate this year by 30% to 35%.

The telecom, BFSI, and healthcare sectors account for most of Incedo’s clients in North America.

Rebel Foods lays off 2% of its workforce

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January 16, 2023

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Rebel Foods, a startup cloud kitchen company backed by Sequoia and home to brands like Oven Story, Behrouz Biryani, Sweet Truth, and Faasos, is the latest startup to reduce its employees.

Around 2% of the company’s employees were affected by the layoffs, according to a company spokesperson.

According to the company, any adjustments to employee strength are the result of “annual performance evaluation and realigning the organization” to the firm’s priorities for long-term objectives.

“Any news heard is on account of annual performance evaluation and realigning the organization to our priorities for future goals,” said a Rebel Foods spokesperson.

The Pune-based startup, established in 2011 by Jaydeep Barman and Kallol Banerjee, runs 4,000 “cloud kitchens” under 45 brands. It operates in the UK, Thailand, Bangladesh, Singapore, Malaysia, India, and Indonesia.

The startup raised about Rs 55 crore ($6.6 million) in a debt financing round from existing investors in December of the previous year. Rebel Foods completed three debt rounds in 2022, raising a total of Rs 225 crore.

Cyboard School teams up with HMVL

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January 16, 2023

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Cyboard School, a premium online school offering CBSE syllabus since 2020, has signed an agreement with Hindustan Media Ventures Ltd (HMVL) to revolutionize the concept of online education through ‘School 4.0’ and expand its reach across the country.

The founders of Cyboard School, Rajat and Kunal Singhal, claim that “School 4.0” represents the principle of “One Nation One School” and strives to provide students with a high-quality education in the comfort of their homes, regardless of caste, faith, religion, or gender. It has hired many highly educated and experienced teachers to achieve its goals.

“We are ready to enroll thousands of students in the upcoming admission cycle of 2023. This association with HMVL is sure to set off a growth spiral for both of us,” said Rajat Singhal. “Online schooling would be a real tribute to digital India,” added Kunal Singhal.

“Covid has taught us that effective learning can take place through virtual schools, and I believe that virtual/online schools are here to stay. It solves the problems of accessibility, socio-economic divide, and operational & implementation challenges. We are proud to partner with Rajat and Kunal as they embark on this journey and bring about changes at the grassroots level by facilitating ‘Quality Schooling for All’. We want to take their voice to the masses and ensure that every kid exercises their Right to Education.” Said Anirudh Singhal, strategic investment head of Hindustan Times.

Dunzo laid off 3% of its employees

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January 16, 2023

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Dunzo, a grocery delivery startup backed by Reliance Retail, laid off 3% of its employees last week. The actual number of laid-off workers has not yet been disclosed.

“Last week, we had to part ways with 3% of our team strength. Whatever the numbers, these are people who chose to build their careers with Dunzo, and it is sad to have talented colleagues leave us,” Kabeer Biswas, CEO, and Co-Founder of Dunzo, said in a statement.

The company said it extends the best support possible to help the employees during this transition. “We are continuously looking at our team structures and network design to build efficiency into our teams. As we scale from 10 to 100, we are continuously learning how to redefine business processes at scale,” said Kabeer.

According to reports, Dunzo sought to raise $70 million to $100 million (up to Rs 825 crore) through convertible notes to develop its quick commerce vertical, Dunzo Daily. It previously issued debentures to raise $6.2 million from Blacksoil India.

He claimed that any decision that impacts people is tough and is always our last option.

Locad secures $11mn in a Series A funding

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January 16, 2023

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Logistics engine Locad announced that it raised $11 million in a Series A funding round led by Reefknot Investments—a fund anchored by Temasek and logistics powerhouse Kuehne & Nagel.

Returning investors Sequoia India and Southeast Asia’s Surge, Febe Ventures, and Antler joined new investors Access Ventures, JG Summit, and WTI in the round.

The logistics startup Locad, founded in 2020, offers ecommerce brands with a cloud supply chain that allows them to expand their omnichannel business and automatically store, pack, ship, and track orders across Asia-Pacific.

The Singapore-based logistics startup will utilize the funds to develop its products and build a talent pool in India. It also has plans to increase the capabilities of the supply chain platform it now offers, which enables modern consumer brands in Thailand and across Asia-Pacific to automatically pack, ship, and track orders in a distributed, end-to-end supply chain as-a-service.

“Tech and data are at the heart of what we’re building here at Locad. To realize this, we’re doubling down on our hiring efforts in key locations such as Bengaluru, where we have a strong team of developers and marketers helping grow the product and business end-to-end,” said Shrey Jain, CTO, and Co-founder, of Locad.

In a seed round headed by Sequoia Capital India’s Surge in 2021, Locad raised $4.9 million. Other investors included Antler, Febe Ventures, Foxmont, Global Founders Capital, Gokongwei Family, and Hustle Fund.

The company claims to have handled more than two million transactions while serving more than 200 brands in Singapore, the Philippines, Thailand, Hong Kong, and Australia.

“Locad’s unique operating model of localizing warehouses into the cities ensures that inventory is kept close to the customers, thereby enabling significant cost and time savings for both brand and consumer,” said Ervin Lim, Vice President of Reefknot Investments.

“We believe that Locad’s logistics engine will spur greater participation in the digital economy as consumers outside of Tier I cities can now receive their orders 2-3X faster at a fraction of the usual cost,” he added.

Ola Electric to open 100 experience centers by January 26

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January 14, 2023

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In 2022, Ola Electric launched 100 experience centers. The company recently said it sold 25,000 scooters in December 2022, boosting its market share to 30%. Ola Electric plans to open 100 experience centers countrywide by Republic Day this year as it continues on its growth path.

In a post on the microblogging site Twitter, Ola Electric CEO Bhavish Aggarwal announced that the company is opening 100 new experience centers by January 26 to “get as close to our customers as possible.”

“We had 100 experience centers by the end of Dec 2022. Opening 100 more by 26th Jan across India. All these centers will also have service desks. Getting as close to our customers as possible!,” reads Bhavish’s tweet.

Ola previously announced that it would soon join the country’s premium EV market. It plans to bring 1,000 electric cars. It claimed that the features of its cars would include 100 percent ride assurance following cab allocation, zero cancellations, 100 percent cashless payments, and more.

Ola Electric has three electric scooters in the country: the Ola S1, Ola S1 Pro, and Ola S1 Air. The company’s first electric scooter, the Ola S1 Pro, was introduced in 2021. It is available for a price range between ₹99999 and ₹1,39999.

Ola Electric launched the Ola S1 in August 2017 and the Ola S1 Air in October. The starting price for the Ola S1 Electric Scooter is ₹99,999. In contrast, the Ola S1 Air costs ₹85,000. The electric scooter has the latest MoveOS 3 from the company and is claimed to have a 76km range.

The company recently declared that the Ola S1 and Ola S1 Pro will now be available in all colour variants. These colours include Matt Black, Anthracite Grey, Midnight Blue, Millenial Pink, Khaki, Neo Mint, Coral Glam, Jet Black, Marshmellow, Liquid Silver, and Porcelain White.

Restaurants Brand Asia introduces Popeyes in Indonesia

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January 13, 2023

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Restaurant Brands Asia, the master franchise of Burger King brand in India, through PT Sari Chicken Indonesia, has launched the iconic US fried chicken brand Popeyes in Indonesia.

Popeyes has opened four locations in the Margo City mall, Supermal Karawaci, Skyline, and Kelapa Gading, across from Jabodetabek. The brand intends to increase its market share by opening 300 restaurants nationwide.

Popeyes, one of the world’s largest chicken quick-service restaurant chains, was established in New Orleans, Louisiana, in 1972. With more than 3900+ restaurants globally, Popeyes has carved out a niche for itself with its authentic Louisiana food in more than 30 countries. The brand is based on a 300-year-old culinary history that combines various ingredients, spices, and cooking styles.

Rajeev Varman, CEO of Restaurants Brand Asia, said, “Introducing Popeyes, an iconic Louisiana-style chicken in a country where fried chicken is one of the largest and fastest growing categories, is a strategic expansion catering to the consumer demand. We have received good response post launch from the guests who are loving the signature fried chicken from Popeyes and some locally inspired products developed by our team. We look forward to expanding our footprint in Jakarta and other cities of Indonesia in the years to come.”

Cashfree Payments lays off 100 employees: Report

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January 13, 2023

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Payment company Cashfree Payments has laid off 100 employees in a restructuring exercise, The Economic Times has reported.

Around 6-8% of its workforce would be affected by the layoffs, particularly the marketing and operations team.

“Cashfree Payments has been periodically evaluating performances and processes as a standard business practice. The organization has reevaluated the relevance of certain roles and functions, leading to the movement of talent within teams and a few employee exits. This process of organizational restructuring has impacted around 6-8 percent of employees,” the company said in a statement.

Last year, Cashfree Payments was one of the first fintech firms to get an ‘in-principle’ approval from the Reserve Bank of India (RBI) to function as a payment aggregator and a prepaid payments instruments (PPI) license.

The company has received orders from the central bank to hold off on adding any new online merchants to their platforms while they undergo an audit for their licenses as a payment aggregator and payment gateway (PA/PG). The company made no comments regarding the precise number of employees who were let go.

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