Rural commerce startup VilCart receives $13mn in Series A round

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January 6, 2023

VilCart, a startup in rural commerce, has raised $13 million in a Series A funding round led by Asia Impact, with investments from Texterity Private Limited and Nabventures Fund.

To raise Rs 106.6 crore, or roughly $13 million, VilCart has passed a special resolution to issue 68,761 Series A and 405 Series A1 Compulsory Convertible Preference Shares (CCPS) at Rs 15,411.6 per share.

According to the company’s regulatory filing with the Registrar of Companies (RoC), the funds would be used for operations and business development.

The National Bank for Agriculture and Rural Development (NABARD), which established the Nabventures Fund, invested Rs 14 crore after Asia Impact, which had invested Rs 91.96 crore, had taken the lead in the funding round. Texterity Private Limited invested Rs 62 lakhs.

Following the funding round, Asia Impact now holds 31.28% of VilCart’s shares, while NabVentures owns a 12.36% stake. Texterity Private Limited and Test Yantra Software Solutions command 0.17% and 3.18% stakes, respectively.

VilCart, a company founded in 2018 by Prasanna Kumar, Mahesh Bhat, Rajasekhar, and Amith S. Mali, makes it simple for village kirana stores to acquire inventory and handle logistics and supply chains.

It commenced business in one Karnataka district and has since quickly expanded to several other districts, including Mandya, Kolar, and rural Bengaluru. With 45,000 kirana stores in its network, it currently provides services to nearly 5,000 villages across Karnataka.

Dunzo likely to raise up to $100mn through convertible notes

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BRL Editor

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January 6, 2023

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Reliance-Retail backed Dunzo is likely to raise $70 million to $100 million (up to Rs 825 crore) through convertible notes to expand its quick commerce vertical Dunzo Daily, said a report in Economic Times.

The Bengaluru-based company is still talking with a few other backers to increase the size of the funding round. With a stake of over 26%, Reliance Retail is the single-largest investor in Dunzo and is most likely to cut a small cheque. According to the report, the funding round may include investors like Abu Dhabi Investment Authority.

The company raised Rs 50 crore ($6.2 million) in debentures from Blacksoil India one month before this development.

According to the report, the startup initially intended to raise at least $150 million by selling a stake but eventually opted for convertible notes to sustain value in a challenging funding environment.

Reliance Retail invested over $240 million in January last year, giving the e-grocery company a $775 million valuation.

Kabeer Biswas, Dunzo’s co-founder and CEO, had said that the company is planning to go public in three years.

InCred Financial announces public issue of up to ₹350 crores of NCDs

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BRL Editor

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January 6, 2023

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InCred Financial Services Limited has announced the public issue of Secured, Redeemable Non-Convertible Debentures (NCDs) with face values of ₹1,000 each, totaling ₹175 crores with the option to retain oversubscription up to 175 crores, or 350 crores. The Issue will open the next week on January 9, 2023, and end on January 27, 2023.

The NCDs under the Issue have received the CRISIL A+/Stable rating from CRISIL Ratings Limited. Non-convertible debentures (NCDs) are designed to be used as a financial tool to raise long-term capital. JM Financial Limited is the issue’s Lead Manager.

“The NCDs offer Coupon Rate ranging from 9.45% to 10.00% per annum with quarterly and annual interest option. The NCDs have two tenors of 27 months and 39 months. The NCDs are proposed to be listed on BSE Limited and National Stock Exchange of India Limited, where BSE is the designated stock exchange,” the company said.

According to InCred Financial, at least 75% of the funds raised through this Issue will be used for further lending and financing and to repay the principal and interest of the company’s existing borrowings. The remaining funds are then expected to be used for general corporate purposes, provided that they do not exceed 25% of the funds raised through this Issue in accordance with the Securities and Exchange Board of India (SEBI).

The Reserve Bank of India has registered InCred Financial Services Limited as a systemically significant non-deposit-taking NBFC. The company caters to Indian households for their personal finance needs like education and personal loans.

Godrej Properties sells 870 flats worth ₹435 crores in Ahmedabad project

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BRL Editor

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January 5, 2023

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Godrej Properties announced that it had sold apartments in its housing project in Ahmedabad, Gujarat, for a total of ₹435 crores.

In the three months since its launch in October 2022, 870 flats have been sold.

The project “Celeste,” which is a part of the township Godrej Garden City, has sold more than 1 million sq ft of area, according to a regulatory filing by the company.

“The company has sold 870 homes with a booking value of approximately ₹435 crores since Celeste was launched in October 2022,” the company said.

Celeste, a 2.3 hectares project, has 8 towers and provides a variety of homes and retail outlets.

The company claims that this phase includes a wide range of cutting-edge facilities that cover social, health, and leisure needs for all age groups, facilitating residents to live more actively and pleasantly.

Gaurav Pandey, MD & CEO of Godrej Properties, said, “We are happy with the overwhelming response received for Celeste at Godrej Garden City, Ahmedabad.”

“The customer’s confidence is a reflection of the increasing demand for sustainable integrated developments by reputed developers. Ahmedabad is an important market for us, and we will aim to build an outstanding residential community that creates long-term value for its residents,” he added.

Amazon layoffs: Job cuts to outreach 18,000 roles, confirms CEO Andy Jassy

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BRL Editor

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January 5, 2023

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Amazon confirmed that it is laying off more than 18,000 roles as part of a workforce reduction it previously disclosed, Chief Executive Andy Jassy said in a public staff note on Wednesday.

He said that the company’s e-commerce and human resources organizations would be significantly impacted.

The layoffs, which reflect a swift turn for a company that recently doubled its base pay threshold to compete more aggressively for talent, affect 6% of Amazon’s approximately 300,000-person corporate workforce.

Andy Jassy said annual planning “has been more difficult given the uncertain economy and that we’ve hired rapidly over the last several years.”

After Walmart Inc., Amazon is the second-largest private employer in America, with more than 1.5 million employees, including warehouse staff. It has planned for likely reduced growth as rising inflation urged firms and consumers to cut back on spending, and its share price has decreased by half in the previous year.

Its layoffs now exceed those at Meta Platforms Inc., the parent company of Facebook, which slashed 11,000 jobs and those at competitors in the tech industry.

Indian startups take 5 years to scale from 0 to $100M in revenue: Redseer Strategy Consultants

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BRL Editor

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January 5, 2023

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According to a recent study by Redseer Strategy Consultants, the time it takes to reach the $100 million milestone has dramatically decreased as the ecosystem has matured over the past decade. According to the report, the time it took to reach $100 million in revenue in 2000 decreased from 18 to just 5 years.

There are 170 soonicorns and about 100 unicorns in India. Approximately 40 firms in the fintech, e-commerce and logistics sectors have generated more than $100 million in revenue as of FY22.

Venture capital has greatly aided startups’ ability to reach the $100 million revenue milestone. The startup ecosystem, valued at $804 billion, has seen investments from VCs totaling around $143 billion during the past 15 years (CY08 to CY22). According to the report, at present valuations, that equates to a roughly 4.5x return for venture capitalists on their investments.

The report also highlighted that there are 12,000 startups in India, ranging in size from Emerging ($10 million or less), Growth Stage ($10 million to $100 million), to Large ($100 million to >$1 billion). 95% are under the emerging category, 3-4% are in the growth stage, and fewer than 0.5% are large companies.

Scaling challenges are a common part of the growth journey for startups. The report found that while some firms need help with product-market fit and unsustainable expansion, others are part of niche industries that limit their overall addressable market.

MobiKwik to hire mid and senior talent amid push for growth

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BRL Editor

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January 4, 2023

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MobiKwik plans to expand its team by about 80-100 this year, spread across the engineering, marketing, finance, collections, and other teams.

Initially a payments firm, the company has expanded to offer investment, insurance, and credit products based on consumers’ buying behaviour. It aims to be a full-fledged digital bank for its 135 million customers and 4 million merchants.

“Last year, we grew our business by 80%, and we’ve had two very profitable quarters. We’re now looking for mature people to take responsibility for handling our growth, keeping risk in check, and scale across teams. We’re looking for someone senior to head the public policy team and are hiring branding talent, and of course, a majority of the hiring will be for the technology and engineering side,” Upasana Taku, cofounder of MobiKwik, said.

The business seeks mid-to-senior level personnel to help it grow its large businesses and more innovative new product lines. The hiring process will take place during the next six to eight months.

“For our newer product lines like insurtech, we’re looking for talent that has the capability to be agile and build things from scratch,” Taku said.

In terms of revenue, the company plans to reach Rs 1,000 crore this year.

As part of its DEI strategy, it is also working to increase the number of women hired, interviewed, and progressed to leadership roles.

MobiKwik was one of the businesses that put off its IPO plans last year. After the markets stabilize, the company will reevaluate its IPO plans, Taku added.

upGrad-owned Harappa lays off 30% of its workforce

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BRL Editor

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January 4, 2023

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Harappa Education, a New Delhi-based edtech startup that Ronnie Screwvala’s upGrad acquired last July for a value of Rs 300 crore ($38 million), is reported to have laid off nearly 60 people, or 30% of its 200-person workforce.

The content division has been hit hardest by the layoffs, which were first reported during the last week of December. Business Today reported that the affected employees have been told to serve one month’s notice and have not received any further severance benefits.

According to the report, this is only the first phase of layoffs, and there could be more.

In 2018, Pramath Raj Sinha and Shreyasi Singh co-founded Harappa, which now boasts 200 enterprise clients and more than 600,000 learners. The programs it offers emphasize intellectual, social, and behavioral skills.

To improve its soft-skill and leadership capabilities for working professionals, upGrad committed an additional Rs 320 crore (nearly $40 million) to the platform in September 2022 to establish the Harappa Global School of Leadership.

Dastawezz, legal and professional services from the comfort of their homes

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Amala Sree Murali

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January 4, 2023

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When hiring a lawyer for the first time, getting legal assistance can be stressful and complicated for entrepreneurs. A lawyer for a startup guides entrepreneurs through the early legal procedures needed to establish and expand their startup. This is where Dastawezz intends to provide legal assistance to entrepreneurs at every stage of their company journey.

The significant impact of COVID-19 might be remote work. The founder of Dastawezz, Shivanjali Malik, was inspired by this circumstance to build an online platform that can provide services that address the legal requirements of startups and established businesses. Dastawezz’s mission is to allow individuals and businesses to conveniently access all of their legal and professional needs from the comfort of their homes at those times.

Highly reputed law firms only handle cases from well-known corporations. Due to the hefty costs associated with the company name, many small businesses or newly formed startups were forced to go empty-handed. Even though many startups would prefer to hire a legal advisor promptly, it’s simply not feasible financially. Startup lawyers won’t be a major priority because they will already be balancing hiring, product development, and overhead expenses.

As startups cannot afford to hire in-house legal counsel or a full-time law firm, they usually rely on readily available templates that are not customized to meet their unique business needs. This frequently leads to non-compliance with certain regulations, lack of proper licenses, legal disputes amongst co-founders, etc.

Even if startups hire specific lawyers to handle the difficulties and challenges, they would still need to find a CA (Chartered Accountant) to handle the taxation aspects and a CS (Company Secretary) to handle the startup’s legal structure. The key problem is that India’s startup sector remains incredibly young. Traditional lawyers are relatively new to this field, leaving them with a limited number of professionals to choose from.

Entrepreneurs might have a multibillion-dollar concept, but if they don’t have access to legal help or expert knowledge, it could result in significant expenses. However, getting stuck in paperwork, legal requirements, and the cost of hiring a lawyer is simple. Fortunately, businesses don’t require expensive legal counsel to begin their operations. However, they do need to set down legal pillars that properly secure everything they are striving to achieve. Dastawezz is a platform to help emerging firms create, customize, sign, and manage the key legal contracts and documents a startup requires.

The founder of Dastawezz, Shivanjali Malik, began working for start-ups, doing pro bono work for them such as preparing various legal documents and offering legal advice while in law school. This helped her better understand their work culture, expectations, and objectives. She was learning and assisting start-ups, making their journey easier.

After graduating from National Law University and working in Tier 1 law firms, she uncovered a necessity in the market for startups. In contrast, only 1% of the requirements of these companies were being met by the top-tier law firms, which expected a lack of investment.

Dastawezz is a legal tech start-up founded in 2020. The company has a network of lawyers, CAs, and CS, and teamwork in various domains for startups and individuals, including IPR, compliances, documentation, litigation, advising and structuring various business models for different countries, providing personalized services, and so on. This facilitates startups to focus on their products and services while they handle all the hassles.

Dastawezz has assisted over 150 startups across 6-7 countries, including the US, UK, India, Australia, Russia, New Zealand, and others, in the fields of cryptocurrencies, fintech, edtech, skincare brands, gaming startups, and entertainment. Dastawezz transforms their lives easier by assisting them with the legal aspects of launching and expanding their businesses.

Dastawezz believes in educating young founders on legal concerns that many are unfamiliar with and offering legal help. With this in mind, they raise awareness through free events and webinars on various platforms. They host discussion sessions, speak with entrepreneurs directly, and have educated more than 1000+ founders on various legal subjects to simplify their entrepreneurial journey.

Every entrepreneur wants their business in safe hands, especially regarding legal problems. The Dastawezz team of startup lawyers provides legal expertise and business expertise gained from working with many businesses. Startup lawyer with the capability and mindset to fully commit to the business from its establishment to the day it hits the milestone. Working with the same advisors from the beginning can help save time and money, and the trust built through time is incredible.

You can read more about Dastawezz on:

Website: https://dastawezz.com/

LinkedIn – https://www.linkedin.com/company/dastawezz/

Facebook – https://www.facebook.com/dastawezz

Instagram – https://www.instagram.com/dastawezz/

Safex Chemicals to invest Rs 100-Cr in its agritech arm

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BRL Editor

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January 3, 2023

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Agrochemicals maker Safex Chemicals Ltd announced plans to invest Rs 100 crore in AgCare Technologies, its new agritech arm, over the next three to four years to build an interactive tech platform and establish a manufacturing facility.

Speaking to PTI, the company’s Group Director, Piyush Jindal, said, “We are investing Rs 100 crore from our own kitty. We are not raising any funds. The investment is planned for the next 3-4 years.”

The objective is to introduce an interactive technology platform that will integrate the entire agri economy value chain. According to Jindal, key stakeholders, particularly farmers, can use this platform to acquire quality crop protection products and receive services like weather information, expert assistance, and mandi rates.

“A pilot study of this interactive tech platform will be conducted in January-March. We plan to go live in the next fiscal year,” Jindal said, adding that the platform will be expanded in a phased manner.

Jindal added that a new manufacturing facility would also be built to meet the need for new and existing products—such as cattle feed solutions—resulting from the proposed platform.

To set up the IT platform, Safex Chemicals will use its domain expertise. He added that the company has already made certain technological investments and plans to gradually expand the team.

With the recent acquisition of Briar Chemicals, a firm based in the UK, the company’s revenue is expected to increase from Rs 783 crore in the last fiscal to Rs 1,220–1,250 crore by the end of 2022–23 fiscal.

Safex Chemicals currently has six manufacturing facilities in India and one in the UK.

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