JM Financial cuts Zomato growth forecast from 25% to 21% over FY23-27

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April 10, 2023

Zomato, a food delivery firm, is estimated to grow at a compound annual growth rate (CAGR) of 21% over FY23-27, according to a report by brokerage firm JM Financial, which revised its previous forecast of 25%.

The annual growth of investments over a given time is referred to as CAGR.

Instead of focusing on expanding the long tail of consumers who order infrequently, the company led by Deepinder Goyal is now investing in customers with high order frequencies. The report stated that while this strategy may boost profitability in the long run, it would impact the growth of monthly transacting users in the short term, leading it to revise its earlier growth forecast.

Zomato reintroduced the Gold loyalty programme in January to offset the decline in food deliveries. According to the report, the re-pricing of the membership fee and the shutdown of operations in 225 cities that were making losses may help the company reach profitability soon.

Since it offers a considerably bigger total addressable market than food delivery, especially when the level of competition is declining, Zomato and its rival Swiggy are doubling down on rapid commerce as a growth frontier. In terms of strategy moving forward, both companies are investing more incrementally in rapid commerce than in food delivery.

The brokerage firm claimed that despite average order volume likely declining due to the company’s focus on improving customer experience and expanding the transaction base, Zomato continues to report excellent sequential growth in gross order value, driven by volume.

“We also expect both contribution margin and EBITDA margin to increase due to improvement in take-rates (because of better product commissions and ad income), slowing competitive intensity, and delivery partner-related cost efficiencies,” JM Financial said in the report.

Though the company aims to increase the number of dark stores by 30 to 40% over the next 12 months to offset improvements in existing store profitability partially, EBITDA is unlikely to reach break-even in the near term. The company is well positioned to gain from strong industry tailwinds like improving tech penetration and rising income shares of digitally native millennials or GenZ, according to JM Financial, which added that it continues to be optimistic about its long-term prospects in the hyperlocal delivery space.

Teachmint co-founder and CTO Anshuman Kumar quits to pursue new venture

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April 8, 2023

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Anshuman Kumar, co-founder and chief technology officer of edtech startup Teachmint, has left the company after three years to pursue a new venture. As the founder, Kumar will now lead Duolop, a modern relationship management app.

“As someone who is passionate about using technology to enhance relationships, I am excited to lead the charge in creating a platform that offers a variety of services and goods to help couples navigate life’s journey together,” Kumar wrote in a LinkedIn post on Friday.

Kumar served as Teachmint’s CEO for over three years and played a pivotal role in defining the company’s technological capabilities. Teachmint was an edtech firm backed by Lightspeed India. Teachmint is a free, SaaS-based mobile platform that focuses on digitizing classrooms and helping educators manage lessons. It was founded in 2020 by Kumar, Mihir Gupta, Payoj Jain, and Divyansh Bordia.

Bengaluru-based Teachmint has raised over $118 million in funding and is backed by investors, including Lightspeed India, Better Capital, Goodwater Capital, Rocketship, and Vulcan.

The edtech firm reached over 30 Southeast and West Asian countries, impacting 1.5 crore teachers and students last year. Among other markets, it also entered Indonesia, Thailand, Vietnam, the UAE, and Saudi Arabia.

After a long pandemic-driven boom, the edtech sector has been in turmoil. Yet, the resumption of offline classes and a funding winter have severely hit edtech firms. The pandemic offered tailwinds for tremendous growth.

In FY22, the majority of unicorns in edtech reported losses. Unacademy, a company backed by Tiger Global, reported a loss of Rs 2,848 crore, while upGrad witnessed a loss of Rs 627 crore. Vedantu reported a loss of Rs 696 crore. BYJU’S, which has not yet submitted its FY22 financial reports, declared a loss of Rs. 4,588 crores in FY21.

Birla Estates buys 5.76 acres land parcel in Pune

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April 8, 2023

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According to a BSE filing by Birla Estates, a wholly-owned subsidiary of Century Textiles and Industries, the company has acquired 5.76 acres of land on Wellesley Road in Sangamwadi, Pune, for the development of a premium residential project.

K T Jithendran, MD and CEO of the company, said, “The Pune foray is key to our growth strategy and our ambition to be among the top developers in the country.”

The land purchased from Sudarshan Chemical Industries (SCIL) has a potential revenue of nearly Rs 2,500 crore.

“This deal would not have been possible without our partners Anarock Group and Crawford Bayley & Co., a solicitor’s firm and legal advisors to the transaction. The proceeds from the sale will be used to strengthen our balance sheet,” said Rajesh Rathi, managing director, SCIL.

Nazara’s subsidiary acquires 73% stake in Pro Football Network for $1.8mn

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April 8, 2023

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Nazara Technologies Ltd., a listed gaming startup, announced that its subsidiary Sportskeeda has officially acquired a 73.27% stake in Pro Football Network Inc.

Sportskeeda Inc is a wholly owned subsidiary of Absolute Sports Private Limited, a material subsidiary of Nazara Technologies.

Sportskeeda Inc has acquired the 73.27 percent stake in Pro Football Network Inc. by a mix of primary infusion in preferred stocks and secondary purchase of common stock from its existing stockholders at a cash consideration of $1,817,090.67.

“Sportskeeda Inc., a wholly-owned subsidiary of Absolute Sports Private Limited, a material subsidiary of the Company, has completed the acquisition of 73.27% of the Capital Stocks of Pro Football Network Inc., by way of primary infusion in preferred stocks and secondary purchase of common stock from its existing stockholders and subsequent exchange of such common stock into preferred stock, at a consideration of USD 1,817,090.67 (One Million Eight Hundred Seventeen Thousand Ninety US Dollars and Sixty Seven Cents), paid in Cash to the Sellers.,” said Nazara Technologies in its regulatory filing.

According to the filing, Sportskeeda owns 73.27 percent of Pro Football Network Inc. Pro Football Network Inc. is now a step-down subsidiary of Absolute Sports Private Limited and a subsidiary of Sportskeeda Inc.

On Tuesday, Nazara Technologies Ltd announced its subsidiary Nodwin International Pte. Ltd has signed definitive agreements to acquire 51 percent of the share capital of Branded Pte. Ltd for $1.3 million.

With this acquisition, Nodwin International Pte. Ltd. will own IPs of Branded such as Gaming Matters, Sports Matters, Music Matters, and others. Branded also owns and executes a few women-centric IPs, such as It’s a Girl Thing, and produces She Loves Tech in Singapore.

Godrej Consumer Products to invest Rs 100-Cr in Early Spring

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April 7, 2023

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Godrej Consumer Products Ltd., a major FMCG company, will invest Rs 100 crores in Early Spring, a new early consumer fund set up by Spring Marketing Capital (Spring).

Spring Marketing Capital’s brand-first investment franchise aims to help founders who are building the brands of tomorrow.

In addition to offering its expertise and experience to help founders build solid and sustainable companies, the FMCG arm of the Godrej group, Godrej Consumer Products, will anchor a new Rs 300 crore early-stage consumer fund being formed by Spring.

“Enabling companies to leverage marketing expertise along with capital, Spring’s first fund of Rs 150 crore continues to invest in companies at Series A and beyond. The Early Spring Fund will be investing Rs 5 crore to Rs 20 crore in each company, from seed to pre-Series A stage,” it said.

Omar Momin, Head M&A at Godrej Consumer Products, commented on the development and said it aligns with the company’s mission to provide consumers with health and beauty benefits.

“We intend to leverage our understanding of consumer space and learnings over the last decades to enable early-stage founders focused on building strong offline as well as online presence by offering differentiated products in India,” he said.

In the emerging markets of India, Indonesia, and Africa, Godrej Consumer Products is one of the major suppliers of household insecticides, air care products, and hair care products.

Google introduces next-generation gaming with WebGPU technology in Chrome

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April 7, 2023

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Google has announced that WebGPU, a powerful API that allows web apps more access to a computer’s graphics card, will be enabled by default in Chrome 113, which is an exciting development for gamers. This update will allow the use of WebGPU on devices running Windows with Direct3D 12 support, macOS, and ChromeOS systems that support Vulkan and is expected to be launched in about three weeks.

WebGPU can allow developers to get advanced graphics without having to write extensive code, according to a recent blog post. The API also claims a remarkable “more than three times” improvement in machine learning model inferences, which is especially exciting given the popularity of generative AIs and large language models.

Although services like Google’s Bard and Microsoft’s Bing do not use local hardware, there is a significant potential for innovative machine learning applications that can take advantage of the improved performance enabled by WebGPU.

Google claims this month’s WebGPU release will be the beginning point for all upcoming updates and enhancements. The company has promised to expand access to shader cores, introduce even more advanced graphics features, and streamline the development of WebGPU-enabled content. These upcoming updates will allow developers to build advanced graphics-capable, immersive web applications.

The API has been updated over time to expand the capabilities of WebGPU, which has been under development since 2017. While it will soon be turned on by default in Chrome, Firefox and Safari are also expected to support WebGPU. Beyond Windows, macOS, and ChromeOS, Google plans to expand its implementation to other operating systems.

Google has announced plans to accelerate the release of upcoming Chrome browser versions. Google will “feature freeze” them later in the development process, but the schedule for stable releases will remain the same, and there are no plans to release them any earlier. As a result, it will take less time for users to access the build when developers stop adding new features. These changes aim to speed up the delivery of the latest features and enhancements to users while enhancing Chrome’s development process.

Cloud kitchen operator Curefoods raises Rs 300-Cr to diversify offline

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April 6, 2023

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Curefoods, a cloud kitchen startup, has raised Rs 300 crore ($36 million) in a funding round led by Binny Bansal, the co-founder of Flipkart. ASK Finance, Winter Capital, IronPillar, and Chiratae Ventures also participated in the round.

Three State Capital contributes Rs 240 crore (~$29 million) to the fundraising effort, which is made up of a mix of primary, secondary equity, and debt.

From Iron Pillar, Chiratae Ventures, Seventeenth Street Capital, Accel Partners, Binny Bansal, Alteria Capital, BlackSoil Capital, Winter Capital, and Trifecta Capital, Curefoods raised around Rs 800 crore ($97 million) last year. It has so far began receiving funds totaling more than Rs 950 crore ($115 million).

The Ankit Nagori-led company plans to expand its presence in Tier I and II cities in the northern and western regions of India by using the fresh capital to diversify its brands into offline formats.

“This funding will allow us to reach new customers and markets while also targeting our offline model expansion,” said Ankit Nagori, Founder of Curefoods.

Curefoods was founded in 2020, runs a house of brands that includes EatFit, CakeZone, Nomad Pizza, and Frozen Bottle. The cloud kitchen operator manages over 150 kitchens in 15 Indian cities, serving more than 10 different cuisines.

In FY22, the company’s first year of operations, it reported revenue of Rs 88.4 crore and total expenses of Rs 165 crore. According to the company, its business grew 300% year-on-year in FY23.

The company said in a statement that as of December of last year, Curefoods had reached 1.1 million monthly orders and generated Rs 550 crore in annual recurring revenue.

Small & medium IT companies face high attrition rate after lockdown, says survey

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April 6, 2023

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Small and medium IT companies are yet to recover from the effects of the Covid-19 induced lockdown because of the high attrition rate of their employees after upskilling, according to a survey. After the lockdown, small and medium sector technology companies had a 35% attrition rate, according to a Micro Small and Medium Companies-Export Promotion Council (MSME-EPC) survey, as skilled workers leave their companies in search of higher pay.

After this, the services sector attrition rate is 27%. As a result, these areas’ hopes for returning to normalcy following the epidemic have been dashed.

While releasing the report of this survey of 700 IT units on Wednesday, D S Rawat, Chairman, MSME-EPC, stated that many employees in MSME sector companies are leaving for higher salaries at other companies after learning the work.

As a result, many companies have yet to recover from the lockdown’s shock fully. Technology companies invest a lot of time and resources in training their employees, yet afterward, those employees move to other companies for higher salaries.

To overcome the high attrition rate, he said it is necessary to develop more and more capacity-building centres in both the public and private sectors. This will result in more efficient workers, decreasing the number of people switching jobs from one organization to another.

According to Rawat, the rate of attrition in the industrial sector is low, but companies in the technology sector still have trouble keeping their employees. In addition, the attrition rate in the manufacturing sector is 20%. In the service sector, particularly the financial sector, it is 27%. In the e-commerce sector, it is 26%, and in the pharmaceutical sector, it is 25%.

According to the survey, large and multinational companies face a serious threat to the survival of tech firms in the MSME sector. Losing a trained employee in such a circumstance puts them under more stress, ultimately, a threat to their company. The people under the most pressure are those that “outsource” their labour or make it their livelihood to finish projects by a certain deadline.

According to the survey, many MSME industries are adopting digitalization to increase their domestic and global market share. Due to the high employee attrition rate, the entire business plan for this industry is collapsing.

Espire Hospitality launches ‘Country Inn’ resorts in Chail and Mussoorie

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April 5, 2023

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Espire Hospitality Group, one of India’s fastest-growing hospitality companies, has opened its first property in Himachal Pradesh, ‘Country Inn Maple Resort, Chail’. The group recently announced the opening of the Country Inn Premier-Pacific, Mussoorie, its first “Country Inn Premier” resort.

With a tasteful blend of contemporary aesthetics and enriching experiences, this new brand has been designed to enhance the Country Inn experience further.

Speaking on these two important openings, Akhil Arora, Chief Operating Officer, Espire Hospitality Group, said, “Marking an incredible beginning of FY 2023-24, we are thrilled to open these two resorts in high-demand markets of Mussoorie and Chail. Our new brand, ‘Country Inn Premier’ has been designed to further elevate the Country Inn experience. While maintaining the brand’s core DNA of extending hospitality that is heartfelt and intuitive, Country Inn Premier branded hotels and resorts will feature spacious interiors and premium amenities for an inspiring stay.”

He further added, “Last one year has been quite eventful and encouraging for us from the growth perspective. We launched a new brand, ‘ZANA – Luxury Escapes’ with the opening of ZANA Lake Resort, Udaipur, opened six new hotels under Country Inn Hotels and Resorts brand in Goa, Amritsar, Vrindavan, Udaipur, Mussoorie, and Chail, and signed new hotels in Raipur, Dehradun, Rishikesh, Patkot (Jim Corbett) and Ranthambore. With our steady growth strategy, we aim to become among the leading domestic hospitality chains in the country soon.”

“Uttarakhand is an important leisure destination that attracts nature lovers and adventure enthusiasts from across the country. With the addition of this new resort, our presence in Uttarakhand is further strengthened, complementing our existing resorts in Jim Corbett and Bhimtal. On another hand, we are delighted to open our first resort in Himachal Pradesh. Known for its exquisite beauty and exclusive site, Chail is an ideal destination for those who love to take the road less travelled. With this opening, we want to elevate the level of comfort and facilities in the region through our exceptional offerings and renowned heartfelt hospitality,” said Sushil Amlani, Head of Business Development, Espire Hospitality Group.

He added, “These openings mark a milestone in our journey and a strategic move to steadily expand our footprint across the country. We are in active discussions with property owners in Jaipur, North Goa, and Dharamshala, and these should be added to our portfolio soon.”

Video telematic startup LightMetrics bags $8.5mn in Series A round

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April 5, 2023

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Telematics startup Lightmetrics has raised $8.5 million in a Series A round led by Sequoia Capital India, announced on Wednesday. LightMetrics is a cloud-based Software-as-a-Solutions (SaaS) platform that offers a layer of AI to dashcam recordings. Currently, it supports commercial vehicles.

Their solution uses cutting-edge AI to analyze video feeds from the cameras installed in cars to understand driver behavior better, prevent accidents, and improve safety.

With this fundraise, LightMetrics will focus on strengthening various teams to prepare for future growth. Engineering, customer success, product, marketing, sales, and analytics are all included in this.

The company will continue to invest in cutting-edge AI technologies, new products, and solutions to improve its offerings and provide fleets more value across all of its operations. The funds raised will also be used to explore similar opportunities, such as auto insurance.

Soumik Ukil, Ravi Shenoy, Mithun Uliyar, Gururaj Putraya, Pushkar Patwardhan, and Krishna A.G. founded LightMetrics in 2015. The founding team’s six members had previously worked on computer vision and machine learning for cameras at Nokia Research. While advancing smartphone photography technology was exciting, they wanted to use their computer vision and AI expertise for something more significant.

“This investment by Sequoia Capital India is a testament to the fact that we are building the preeminent video-based fleet safety platform globally. We will invest deeply in building the most advanced and efficient edge AI, empowering our customer base to deliver this critical technology across the entire fleet ecosystem, and expanding our international footprint,” said Soumik Ukil, CEO & Co-founder, LightMetrics.

Besides, LightMetrics has implemented a different go-to-market strategy. Instead of selling directly to fleets, it partners with telematics service providers and fleet management firms to upsell and incorporate the solution into its services for fleets. This prevents fragmentation and increases value by ensuring fleets receive a highly integrated offering with all the information they require about their business in one place. Partners who work with LightMetrics can either utilize the rebranded portal or use APIs to build their UI.

The company is hardware agnostic and does not sell cameras. It collaborates with camera manufacturers to provide clients and partners with a range of cameras in terms of capabilities and pricing points.

Due to a common backend, fleet customers have the same UI/UX irrespective of the hardware. As a result, with no engineering or product complexity on their end, LightMetrics’ customers and partners can customize solutions for particular customer segments and geographic regions.

Around 2500 fleets across India, the Middle East, the United States, Canada, Mexico, Brazil, Australia, and South Africa use LightMetrics. Fleets using the LightMetrics’ powered video telematics have seen risky driving, such as speeding and distracted driving, drop by up to 80% and 70% in just a few months of onboarding. This highlights how a combination of in-cab coaching and offline coaching can significantly reduce the risk for fleets.

“Video telematics is the fastest growing segment of the telematics industry. Lightmetrics’ ability to deploy advanced computer vision models on the edge, across a range of dash cameras, enables it to serve all vehicle types in this large market. At Sequoia Capital India, we expect advancements in AI to transform several industries and are excited to partner with Lightmetrics on their quest to improve road safety,” said Ashish Agrawal, MD, Sequoia India.

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