Neobank Open enters unicorn club with IIFL-led $50mn funding

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May 2, 2022

According to persons familiar with the situation, Neobank Open has finalised a $50 million financing headed by IIFL Finance, with participation from current investors Temasek, Tiger Global, and 3one4 Capital.

According to sources familiar with the situation, Open will leverage the extra capital and IIFL Finance’s strategic skills to build out a loan business in the future.

Open had raised $100 million in a capital round sponsored by Temasek, Singapore’s sovereign wealth fund, last year. In addition, strategic partners, such as Visa, the world’s largest payments network; Google, the world’s largest search engine; and Japan’s SBI investments, all participated in the round.

Open, founded in 2017, is a neo-banking platform that provides small businesses with business tools and integrates with their current account. At the moment, Jupiter, Razorpay X, and Niyo, among others, compete against the company.

“We are excited to partner with IIFL and existing investors Tiger Global, Temasek and 3one4 Capital for our series D round. We see a lot of synergies with IIFL especially on leveraging the lending book, as we are getting ready to launch innovative products like revenue-based financing, early settlement, working capital loan and business credit cards to SMEs on our platform,” stated Anish Achuthan, co-founder and chief executive of Open, in a statement.

Yes Bank open to inorganic opportunities for growth

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May 2, 2022

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Yes Bank sees itself as an acquirer rather than a target for a takeover. The bank, which plans to raise Rs 10,000 crore in the capital, has stated that it will expand by 15% and gain market share.

“After cleaning up the bank, we would like to be a very strong player. During our journey, if we see any inorganic growth we will look at it,” said Prashant Kumar, MD & CEO, Yes Bank, addressing analysts.

According to Kumar, the bank sees itself as a digitally strong franchise, with one out of every three digital transactions in India being conducted via it.

“This is a platform which can grow and reward the investor. Despite the large equity, we are best placed in terms of the potential for upside. We have already demonstrated this with the capital we raised in 2020,” said Kumar.

Although the bank’s 11.6% common equity tier I capital is sufficient to fulfil loan growth requirements this year, he added that given the uncertainties, the bank plans to raise more capital as a buffer and to meet future growth requirements.

Kumar stated that the bank plans to finalise a partner and establish an asset reconstruction company (ARC) in the current fiscal year’s first quarter.

Pride Group of Hotels signs up Pride Suites in Gurugram

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April 30, 2022

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With the debut of its new brand Pride Suites, the Pride Group of Hotels has entered the premium service apartment market. The company recently signed a deal to open its first property under the brand in Gurugram, its first extended-stay hotel, with two-bay and three-bay suites with kitchenettes, a rooftop bar, and grill restaurant, and a swimming pool.

The new property will be adjacent to various business centres, shopping malls, commercial establishments, and other points of interest.

Announcing the signing, Atul Upadhyay, vice-president of Pride Group of Hotels, said, “The market for luxury homestay has been growing exponentially over the years. We are delighted to venture into this lucrative market by signing our first property in Gurugram under Pride Suites. Gurugram which houses some of the leading corporate and multinationals has seen steady growth in the inflow of business travellers. However there has been an acute shortage of upscale rooms in the city. Pride Suites will offer all the contemporary amenities and unmatched comfort for the discerning corporate traveller ideally looking for an extended stay in the city.”

Meesho records about 100 million transacting users in last one year

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April 29, 2022

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E-commerce start-up Meesho announced that its platform had acquired more than 100 million transacting users in the previous year. Since March 2021, the platform’s transactional user base has increased by nearly 5.4 times. In addition, according to the business, its gross merchandise value (GMV) has risen by about three times, which did not provide specific figures.

“In the sphere of e-commerce, Meesho has achieved significant growth in a short span of time. We have been the fastest to reach 100 million transacting users. With nearly 80 per cent of the demand coming from tier 2 plus cities, our vision to democratize e-commerce for everyone is truly being brought to life,” Utkrishta Kumar, CXO – Business at Meesho, said.

Since April 2021, Meesho has seen an 85% rise in seller registrations and a threefold increase in average seller revenue.

According to the statement, about 70% of all Meesho vendors come from tier 2+ cities like Hisar, Panipat, and Tiruppur.

“Meesho has enabled the creation of thousands of jobs for delivery personnel and enabled lakhs of MSMEs to succeed online. We are building a platform that enables growth and margins for MSMEs,” Kumar said.

India IT services industry reaches $14bn as companies drive digital transformation

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April 28, 2022

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The Indian information technology (IT) industry increased 7.2% yearly in 2021, up from 5.3% the previous year, as more local enterprises adopted digital transformation projects. As a result, the domestic IT services business was valued at $14.15 billion in 2021, according to a market research firm International Data Corp (IDC) survey.

According to IDC, adopting new technologies such as cloud platforms, AI-based services, cyber security, and application modernization contributed to the rise of IT services last year. With an estimated compound annual growth rate (CAGR) of 8.9%, the domestic IT services industry will reach $21.67 billion in value by 2026.

Harish Krishnakumar, a senior market analyst for IT services at IDC India, said enterprises in India increased their IT spending through 2021 to “improve the resiliency and efficiency of their business operations, and enhance customer experience.” He added that adopting hybrid work models across the industry pushed up IT spending in India.

According to IDC India, the rise of IT services in India has been fueled by pent-up demand for digital transformation and acceptance of new technology, which has been delayed due to the covid-19 pandemic. Project-oriented IT services grew the fastest, at 7.9% year on year, among domestic IT services, according to the report.

“IT services providers continued to build capabilities on digital technologies through solution and platform-centric approaches. Areas like cloud and security continued to see momentum along with automation and AI. We see this trend continuing as Indian enterprises will look up to their service providers, as they progress towards their goal of becoming a future-enterprise,” said Sharath Srinivasamurthy, research director of enterprise solutions at IDC India.

HCL Technologies’ Q4 FY22 earnings, reported earlier this month, reflected this growth. Last quarter, HCL Tech’s IT and business services revenue increased to $2.199 billion.

During the company’s earnings call, C. Vijayakumar, managing director and chief executive, claimed that significant growth in “digital, cloud, and engineering services” bolstered the country’s IT service provider’s overall quarterly revenue.

Furniture startup WoodenStreet receives $30mn headed by WestBridge Capital

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April 28, 2022

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WoodenStreet, a furniture and home decor platform has raised $30 million in a fundraising round led by WestBridge Capital, valuing the company at $156 million (Rs 1,200 crore).

The funds were raised through a combination of primary and secondary investments.

Existing investors sell shares to new investors in secondary sales, and the money does not go to the company.

In 2020, WoodenStreet raised funding from the Indian Angel Network and Rajasthan Venture Capital Funds, totalling $3 million.

According to the company, the latest capital infusion will develop new areas, invest in technology, expand the supply chain, and add new categories.

It intends to open 200 stores in the following two years and bring on more than 3,000 home decor businesses.

The company today has over 50 locations and provides solid-wood and modular furniture, kitchen and wardrobe solutions, and home décor, lighting, and furnishings. It offers the service in more than 300 cities throughout the world.

WoodenStreet plans to enter the office and modular furniture markets, according to the company.

Lokendra Singh Ranawat, Virendra Ranawat, Dinesh Singh Rathore, and Vikas Baheti launched the company in 2015.

“WoodenStreet has grown 100% year-on-year in the past three years while maintaining profitability at net level, and we plan to achieve a turnover of Rs 600 crore in next two years with this fundraise,” Dinesh Singh Rathore, also its chief financial officer, said.

Kristal.AI buys Globalise, plans to expand its retail offerings

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April 27, 2022

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Digital-first global private wealth management platform, Kristal.AI, said it had acquired Globalise, which offers access to the US stocks, exchange-traded funds, and ETF baskets for Indian investors. The companies didn’t disclose the size of the deal.

For the affluent and high net worth (HNI) segment, Kristal.AI concentrates on institutional products such as pre-IPO deals, hedge funds, and venture capital funds. At the same time, Globalise offers stock and ETF investments with no minimum criteria for the affluent and retail divisions.

Kristal.AI now has $400 million in assets under management (AUM), and its user base has increased sevenfold to over 30,000 in the calendar year 2021. Kristal.AI has been providing institutional and accredited investors in over 20 countries with access to quality goods and advisory services since its debut in 2016.

According to Kristal.AI, Globalise’s strategic acquisition will allow individual investors to invest in global products through fractional investments.

Asheesh Chanda, founder and CEO of Kristal.AI, said, “The acquisition of Globalise is complementary as it will help us offer stock and ETF investing with no minimum requirement for the affluent and retail segments. The acquisition will help us penetrate the retail segment and deliver on our mission to bring access to best-in-class products and advisory within the reach of everyone. We see tremendous opportunity in global investing and growth via partnerships will continue to remain an important element of our growth strategy.”

Globalise will help democratize private wealth management by providing routes for fractional ownership of stocks, ETFs, and stock baskets. As a result, Kristal.AI can better serve this vast group of self-directed investors by assisting with asset allocation and wealth planning.

“The merger helps us deliver access to premium global products. We couldn’t have found a better home than Kristal.AI for our customers, partners, and team to continue living our vision,” said Viraj Nanda, CEO and co-founder of Globalise.

According to the companies, Globalise’s clients and partners will not see any price or product changes. Furthermore, Globalise’s complete operations team has been retained and will continue working from various locations.

Kristal.AI and Globalise teams will collaborate closely over the next few months to integrate product flows and customer accounts.

Teamonk bags ₹3.5-cr in funding headed by Inflection Point

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April 27, 2022

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Inflection Point Ventures, an early-stage angel investing platform, led a pre-series A financing of ₹3.5 crores for tea brand Teamonk.

The funds will be used to assist the company in expanding its domestic and international reach.

Ashok Mittal and Amit Dutta founded Teamonk, a direct-to-consumer packaged tea brand, in April 2017. Turmeric moringa green tea, Assam masala tea, and herbal infused teas are among the green and black teas available.

The company currently distributes its products in the United States, the United Kingdom, the United Arab Emirates, Canada, Germany, Australia, and India. Teamonk offers agreements with tea estates that can meet quality standards, simplify sourcing, provide vertical integration, and provide a managed supply chain.

According to Mittal, the pandemic has increased the demand for health and immunology products across all socioeconomic categories worldwide.

IPV is investing in the brand for the second time.

“While tea has been a universal and most preferred everyday antioxidant drink, the last few years have witnessed a tectonic shift in the consumer consumption behavior globally,” said Vinay Bansal, founder and CEO of Inflection Point Ventures.

Consumers are shifting to organic and healthy tea beverages that increase immunity, improve skin, provide anti-aging benefits, and improve mental alertness and attention.

“Consumers too are also willing to spend for an authentic cup of tea. Teamonk with their excellent product curation and innovation abilities have over 64 specialty tea variants and have created exactly what is needed in the market. The brand is all set to emerge as a leader in the specialty tea segment and IPV continues to support them in their endeavor to provide the best to tea consumers not only in India but also in the global market,” said Bansal.

HCL pegs FY23 revenue growth at 12-14%

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April 22, 2022

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HCL Technologies Ltd said that revenue for this fiscal year would grow between 12-14% in constant currency, following a positive market environment and strong growth momentum in the last three quarters, particularly in the services business, after a year of only providing directional guidance. For FY23, the company expects an 18-20% Ebit margin.

HCL Technologies, situated in Noida, reported a net profit of ₹3,593 crores for the March quarter, up 24% from the previous year, discounting the impact of a one-time incentive paid to staff and tax charges.

Revenue for the March quarter increased 15% year over year to ₹22,597 crores. The services industry, which has grown at a compound quarterly growth rate (CQGR) of 5.2% for three quarters, drove revenue.

The company’s full-year revenue increased 13.6% to ₹85,651 crores, owing to excellent performance across all business areas, headed by its digital business, or ‘Mode 2,’ which increased 31.8% in constant currency.

In constant currency, HCL’s dollar sales increased 13.3% to $2.99 billion in the third quarter, boosted by new deal wins and clients’ digital agenda acceleration.

“Over the last three quarters, our services business has been consistently growing organically at 5% and higher, delivering one of the highest CQGR in the industry. Our overall growth on YoY basis stands at 12.7%, which is better than the guidance, led by strong momentum in digital, cloud and engineering services. We continue to invest proactively to create a larger talent pool to address the demand,” said C. Vijayakumar, HCL’s chief executive and managing director.

Meanwhile, the company’s attrition rate increased to 21.9% in the March quarter, up from 9.9% a year ago and 19.8% in the December quarter, indicating that demand for IT expertise outweighs supply. However, the high attrition rate is predicted to decrease progressively during this fiscal year.

During FY22, HCL added 39,900 people, bringing its total headcount to 208,877. It hired 22,859 freshers last year, and it expects that number to rise by 50% this year.

The Burger Company plans for 100 total outlets

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April 21, 2022

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According to The Burger Company’s recently announced targets, the company plans to reach a century in 2022. In Bareilly, Uttar Pradesh, The Burger Company has opened its 50th location. The company operates in 20 cities and nine states. At the moment, there are 49 franchisee-owned outlets and two company-owned outlets.

Neelam Singh, founder and CEO of The Burger Company, informed that the company is getting tremendous response from tier 2 and 3 cities. “We have a strong presence in North India and in coming months we will be opening stores in West, South, Center and East India as well. Stores are under fit-outs in cities like Agra, Meerut, Moga, Malout, Pathankot, Srinagar, Ahmedabad, Nagercoil, Chennai, Hyderabad, Patna, Purnia, Deoghar, Kanpur and many more,” she added.

To reach a wider customer base, the company has rapidly increased its footprints and product offerings.

“In April ’22 we have added six stores to our tally, practically we have opened a store every fifth day in the month which is a great milestone,” Singh added.

According to Singh, the majority of the stores are profitable from the first month of operation since the cost structure is well-managed. For example, the Burger Company operates on a zero-commission strategy and passes the entire cost-benefit to the outlets as a brand policy. In addition, all raw ingredient deliveries are coordinated centrally, with stores receiving them at their doorstep.

The Burger Company first opened its store in Gurugram in 2018 and will shortly announce international outlets.

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