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Java Capital launches Rs 75 Cr seed-stage fund

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Java Capital, a SEBI-registered Alternative Investment Fund (AIF) that focuses on seed-stage companies, has announced opening its first fund, which has a corpus of Rs 75 crore and a greenshoe option of Rs 25 crore.

The fund completed its first close at Rs 30 crore and plans to complete its final close over the next six months. The recently established fund has already begun funding pre-seed to pre-Series A startups, and it plans to build a portfolio of 15 to 20 such startups with an average first check size of Rs 2 crore. For follow-on investments into portfolio firms with the best track records, the fund will set aside 50% of its total assets.

The fund, which has already invested in four companies, is looking at startups in the deep tech, SaaS, enterprise tech, fintech, and climate and sustainability verticals that are looking to raise pre-seed to pre-Series A funding.

Vinod Shankar, Co-founder and Partner of Java Capital, said, “We are possibly one of the only funds with strong diversity with three full-time partners and are led by deep conviction in the companies we invest in. We are not afraid to lead rounds ourselves at this stage, which is again led by our deep conviction and contrarian to most other funds in this market. We are willing to take outlier risks such as Agnikul, a company making India’s first 3D printed semi-cryo rocket engines, or EPlane, which is building electric flying taxis.”

The company has previously invested in 23 startups, including Agnikul, KukuFM, BharatX, Better Opinions, Yellow Metal, The Eplane Company, Kindlife, Legistify, etc.

In 2020, professional venture capitalists and startup ecosystem enablers Bhargavi V, Vinod Shankar, and Karteek Pulapaka launched Java Capital. 40% of these companies have used it to lead rounds. The portfolio as a whole raised additional funding by over 50%.

After receiving investments from Java, four companies were chosen for the Y-Combinator accelerator. Java’s entire portfolio is currently valued at $385 million.

Bhargavi V, Co-founder and Partner of Java Capital, says, “We are super excited to announce the launch of our fund, and we are strong believers in the long-term growth story for India. We are in the venture space for the next few decades and would like to grow Java Capital as the first port of call for founders looking to start companies.” 

Karteek Pulapaka, Co-founder and Partner of Java Capital, said, “India is in the midst of a once-in-a-century transformation, and this will be underscored by cutting-edge startups. We have a strong record of backing and nurturing visionary founders developing disruptive business models and technology.”

Vee Technologies to add 3,000 freshers in south India

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Vee Technologies, an IT services firm with its headquarters in New York, has announced its plan to hire over 3,000 fresh graduates to its workforce in south India over the next 12 months to meet the expanding demand from its healthcare clients in the US. As a first step in its Rs 200 crore expansion plan, the company said it had started the hiring process to bring in 1,200 recent graduates in biotech, science, and the arts. 

Through proprietary platforms, Vee Technologies’ delivery centres in Karnataka, Tamil Nadu, and Telangana in India, Manila in the Philippines, and other locations in the USA serve clients worldwide in engineering, design, and healthcare.

Six of the top 10 US hospitals are among the hundreds of hospitals that use Vee’s proprietary platforms and technologies as clients for software, analytics, and strategic IT services.

CEO and Managing Director of Vee Technologies, Chocko Valliappa, said the company “aims to triple the number of employees in Tamil Nadu to 10,000, in the next three years, with this investment in the IT-enabled services operations.”

According to the announcement, medical coders and calling agents are being sought for roles in Bengaluru, Chennai, Salem, Trichy, and Hyderabad.

Booking.com search highlights where Indians prefer to travel for the holiday season

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The most recent search data trends from Booking.com provide insight into the popular vacation spots for Indian travellers during December and the holiday season. For Indian travellers eager to get back out there and make the most of their vacations, the world is opening up again with the majority of travel restrictions lifted. 

Beach, nature/mountains, and road trips are among the top five most preferred trip types for Indian travellers, according to the Booking.com APAC Travel Confidence Index, and this is reflected in the most popular destinations for the upcoming holiday season. 

According to data from Booking.com, when it comes to domestic travel, Indian travellers prefer hill stations, beaches, and historical places, with Pondicherry topping the list and being followed by Lonavala and Manali.

For Indians, travelling the world is once again on their bucket list. Regarding international travel, Indians look for metropolitan cities where they can ring in the new year and celebrate the festive season. The most popular travel destinations in South-East Asia are Bangkok and Singapore, with Dubai continuing to be the top choice for Indian tourists.

Paris, London, and Dubai top the list of the top 15 locations searched for during the holiday season by travellers worldwide.

Santosh Kumar, country manager, India, Sri Lanka, Maldives and Indonesia at Booking.com, “The last few years have taught us that travel should not be taken for granted. After two years of travel restrictions, travellers feel overwhelmingly more optimistic about travelling. It is encouraging to see Indian travellers exploring different destinations both within India and abroad with a more positive outlook towards travel. As people remain enthusiastic and book their holidays, Booking.com will continue to make it easier for everyone to create their unique travel memories as they experience what these different destinations have to offer during the year end and beyond.”

Cash on delivery about $30 billion of India’s ecommerce market, says Gokwik

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Though consumers are utilizing digital currency more frequently, according to e-commerce enabler GoKwik, cash on delivery transactions still account for around $30 billion of India’s e-commerce market.

“We live in a low trust society. It’s not that these people have not done UPI ever. We have in fact seen that there is a 50% overlap in people using UPI or credit cards and COD. It is also a generational thing, and it will take another 10-15 years to move away from COD similar to other markets like Japan,” said Chirag Taneja, co-founder of Gokwik. “COD has withstood the shock of demonetization, and Covid wave and cash in circulation (CIC) has come back in the economy.”

It predicts that the COD and RTO percentages will increase with the industry expansion as e-commerce penetration in India reaches double digits due to improved accessibility and affordability in tier 3 and beyond cities.

Currently, COD makes up approximately 25-30% of all e-commerce transactions. Gokwik expects that if brands make back-end interventions, COD will halve and remain at about 10-15%. Also, higher COD orders typically lift the possibility of the Return to Origin (RTO) rate, effectively the rate of orders that are cancelled even before delivery. RTO is worth around $9 billion, according to GoKwik.

“Companies have built payment infrastructure from the payment lens and not from the ecommerce lens, which merchants want us to solve. Similarly, the entire check out propositions, including log in, address and discounts, have deep problems, and we address these shopping experience issues for brands,” added Taneja.

Taneja, Ankush Talwar, and Vivek Bajpai established GoKwik in 2020 to solve problems with e-commerce firms, such as optimizing the customer experience, recovering from abandoned carts, boosting conversions, raising GMV, and minimizing the return to origin (RTO). Their solutions cover the entire customer journey—before, during, and after the sale. They recently reported that their network had processed over $1 billion in orders and had experienced a 520% rise in transactions year over year.

SoftBank-backed Snapdeal to shelve IPO plans

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SoftBank-backed digital marketplace Snapdeal has shelved plans for a $152 million public offering. 

Snapdeal filed its IPO filings for regulatory approvals in December 2021. Snapdeal was founded in 2010 by Wharton alumnus Kunal Bahl and IIT graduate Rohit Bansal. The year saw the blockbuster listing of restaurant aggregator Zomato in July 2021, followed by Falguni Nayar-led Nykaa in November 2021.

Private and public markets experienced a bull run during the year. However, the performance of tech stocks in 2022 caused investor sentiment to deteriorate.

Snapdeal currently faces competition from Flipkart and Amazon in India. The e-commerce player currently trades “value-for-money” products priced under Rs 1,000 in the value segment.

“There is currently no interest in tech stocks,” the people said, adding that SEBI has been informed of current market conditions and other strategic decisions leading to changes in IPO plans.

Agritech startup Cropin raises $14mn from Google and Impact Assets 

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As part of its pre-Series D round, the agritech startup Cropin has raised $14 million from Google and Singapore-based Impact Assets. 

As per the regulatory filing with the Registrar of Companies, Cropin passed a special resolution to issue 95,590 pre-series D CCPS at Rs 11,862.68 per share to raise Rs 113.4 crore ($14 million). Chiratae Ventures and JSR Active Innovation Fund, two existing investors, also participated.

“We will be going to the market in the next 3-4 months,” Co-founder and CEO Krishna Kumar confirmed.

According to the CEO, the startup funded by the Bill & Melinda Gates Foundation will increase hiring and operations at its new subsidiaries in the US and Singapore. Cropin established a subsidiary in the Netherlands last year to take its agri-tech solutions across the European Union.

According to Tracxn estimations, Cropin was most recently valued at $67.5 million. It raised $20 million in Series C funding in January of last year with the help of ABC World Asia and previous backers Chiratae Ventures and Ankur Capital. Beenext, CDC Group, and Kris Gopalakrishnan’s family office are other investors. The CEO added that Cropin planned to go public in 4-5 years.

Cropin, a company founded in 2010, offers agribusinesses cloud software-based solutions to help them use data to maximise production. The startup claims to have digitised 16 million acres of farmland across 92 countries and has collaborated with over 250 enterprise clients. 

The company, which competes with companies like Intello Labs, Ninjacart, and Gramophone, had revenue of around Rs 40 crore and annual bookings of about Rs 145 crore at the end of FY 2022. According to the company, net revenue retention, which shows how the contribution from current deals has improved, increased by 120% in FY 2022.

Trent to sell Unistore stake to Tata Digital 

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Trent, the Tata Group’s retail division, has signed a legally binding agreement to sell its stake in Tata Unistore to promoter group company Tata Digital alongside three other Tata Group companies: Tata Industries, Tata Unistore (TUL), and Tata Digital (TDPL). The deal is likely to close by December 15 or earlier. 

On a fully diluted basis, Trent is selling to Tata Digital its approximately 3.22% stake in Tata Unistore. With no consideration of cash and for a total estimated value of ₹24.14 crores, TUL shares will be sold to TDPL in exchange for Compulsorily Convertible Preference Shares of the promoter group company.

Under the brand names “Tata CLiQ” and “Tata CLiQ Luxury,” TUL operates an ecommerce business. As of March 31, 2022, it has an ₹845 crore revenue.

How ‘MergerWare’ automated the M&A deals to be more result-driven

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“Build a platform for the M&A community that allows executives to automate and systematize their M&A deals across the firm gives improved transparency and control, helping the team to focus on value drivers and results in synergy generation.” This idea evolved into the pioneer M&A digital platform known as MergerWare today.

According to research by Bain & Company in the Harvard Business Review, 75% of M&A executives agree that digital disruption significantly impacts such operations or drives companies to rethink their strategy.

The world of mergers and acquisitions (M&A) is quite fascinating. Companies look for other companies they can acquire when the market dynamics are favourable. In contrast, businesses search for opportunities to be acquired by bigger groups when the market is not performing well. Numerous factors, such as economies of scale, market share, acquiring new technology or expertise, value creation, etc., lead two organizations to engage in an M&A process.

An M&A deal requires extensive analysis and decision-making, including choosing a firm to purchase, carrying out due diligence, integrating the new company, ensuring culture fit, etc. Post-merger integration, or PMI, is a complex and challenging process involving combining and restructuring businesses to gain potential synergies and cost savings, typically the driving force behind mergers and acquisitions. Achieving success early in integration can help build confidence in a deal and quiet critics. This process entails several decisions to be taken quickly.

The M&A is a complex and challenging process involving combining and restructuring businesses to gain potential synergies and cost savings, typically the driving force behind mergers and acquisitions. Achieving success early in integration can help build confidence in a deal and quiet critics. This process entails several decisions to be taken quickly.

Most business executives—nine out of ten—agree that new M&A skills must be built for organizations to remain competitive. Specifically, those who help decide when to collaborate, buy, invest, or incubate as they implement digital business models. Small teams of consultants previously handled risk analysis and due diligence, and they are still handled for many M&A deals. 

Experts can be time-consuming and pricey, but technological breakthroughs make it possible to achieve results quickly. Artificial intelligence (AI), for instance, is being incorporated across the M&A process, from target identification to due diligence and post-deal integration.

How it all started 

The CEO and Founder of MergerWare, Dharmendra Singh, refers to the company’s establishment as a “career accident.” At the pinnacle of his corporate career, Dharmendra Singh encountered significant M&A challenges, which inspired him to start MergerWare, his own business.

He was a founding member of the R&D team at Schneider Electric (SE), a major player in the energy sector in France, which was tasked with creating a global R&D hub to create energy management software. After nearly a decade of expertise in forming and managing exceptional global teams, he decided to contribute to other business areas.

He began speaking with many M&A leaders at SE and other companies to understand the crucial issues. SE was involved in several agreements at the time, and he was curious about how the company managed to carry out so much.

Mr Singh observed that post-merger integration brings real challenges, and overcoming them determines whether a deal is successful. He joined SE’s corporate development team in a global role after completing his MBA at the INSEAD Business School. This team was in charge of driving M&A deals across the globe.

His primary responsibilities included establishing the M&A process over the deal lifecycle, expanding the organization’s model and driving global post-merger integration. He engaged with other M&A executives, including country managers, in charge of value creation.

Gradually, he witnessed how ineffective and inaccurate it was to manage and track the integration programmes using spreadsheets, data repositories, VDRs and other desperate tools. Surprisingly, he found that there wasn’t a single M&A-specific platform when he looked at the available tools.

He hit a breaking point when he decided to take on the challenge of creating a tool to help other companies resolve difficulties and increase the returns to management and shareholders for every acquisition they complete.

What does MergerWare offer?

The MergerWare platform helps M&A deal professionals to streamline multiple deal procedures, improve deal visibility through different dashboards, and accelerate M&A deals. This makes deal execution easier for them, allowing them to focus on adding value. The platform can serve as the only legitimate information source for all stakeholders involved. This enables businesses to get real-time pipeline visibility, execute a more thorough due diligence in half the time, and speed up post-merger integration processes by up to 40%. 

Companies find it simple to apply their M&A process playbook, onboard deal execution teams, and efficiently track the entire deal execution progress, especially during cross-border deals.

Large enterprises like Berkeley Research Group (BRG), NEOM, L.E.K Consulting & Cherokee Nation Businesses worldwide rely on MergerWare’s cloud-based M&A platform to execute their M&A deals and post-merger integration programs.

For more information about MergerWare’s platform and services, visit their website: https://www.mergerware.com/ or write to insights@mergerware.com.

Simplilearn introduces SimpliRecruit, a hiring platform for recruiters

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The edtech company Simplilearn, backed by Blackstone, has introduced SimpliRecruit, a platform for hiring professionals across all technical areas. 

According to the company, the platform will allow recruiters to find freshers and experienced professionals for job openings in data science, full-stack Java development, digital marketing, and other tech-related fields.

“We are grateful to have successfully enabled millions of learners with quality digital economy upskilling over the years. Given our mindful growth and expansion in the recent past, going beyond bridging the skills gap in the industry and towards empowering, recruiters feels like the most natural next step,” Krishna Kumar, Founder and CEO of Simplilearn, said in a media statement. 

“With SimpliRecruit, we aim to help recruiters easily identify and connect with the candidates with the right tech skills, which is an ongoing challenge in the industry. Extending our database of millions of learners and skilled talent to enterprises and recruiters, we look forward to effectively improving the employment landscape in India and globally,” Kumar elaborated.

According to the company, the platform will cover over three million learners across more than 300 core skills and now has recruiters from over 450 companies. 

The platform is now free for recruiters, according to the edtech company, and SimpliRecruit relationship managers will help recruiting companies at no additional cost. 

Tech Mahindra, Mphasis, DSP, Ericsson, Sutherland, Intellect, Bank of America, Quest, Onmobile, Mu Sigma, Fullerton India, Lowe’s, CLSA, Allstate, and Principal are a few of SimpliRecruit’s current hiring partners.

Travel fintech platform SanKash to hire over 500 in the next six months

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SanKash, a fintech platform for travel, announced that it would be hiring 500 professionals in India over the next six months. 

The platforms claimed that the new hires would strengthen SanKash’s ground presence at 150,000 travel point of sale, which dominate the domestic travel market, and fuel its sales and operations feet on the street capability to cater to its existing travel merchant base of 6,000 spread across 250 cities.

“With the market picking up post-Covid, travel merchants are seeing significant growth in bookings compared to the bygone year as consumers’ confidence is gradually returning,” said Abhilasha Negi, Co-founder and Head HR, SanKash.

India’s travel and tourism industry is expected to grow from an estimated $75 billion in FY20 to $125 billion by FY27.

“Along with the surge, the travel merchant base is also witnessing blitzkrieg expansion. The fresh hiring is directed at catering to this segment,” said Negi.

The country’s economy is bolstered by the tourism industry, which also opens up many job opportunities. 

In 2021, the sector added 5.8%, or Rs 13,161 billion, to India’s GDP. 

The Gurugram-based startup, established in 2018 by Akash Dahiya, Manu Pal, and Abhilasha Negi, has developed a plug-and-play application programming interface (API) platform that offers a variety of travel products and streamlines the online payment process for these products and services.

The company operates under the “Travel Now Pay Later” strategy. As tourism recovered after the two-year pandemic, SanKash plans to serve 1 million customers by 2025.