Also in this letter:
■ Delay in the execution of IT agreements
■ Garuda Aerospace expands its operations
■ Jai Kisan NBFC License
ETtech Exclusive | Closing new deals in India despite Byju’s downfall: Prosus CEO Fabricio Bloisi
Fabricio Bloisi, CEO of Prosus
Fabricio Bloisi, chief executive of Prosus and its parent company Naspers, said that Group optimistic about funding Indian startups despite the loss suffered on its investment in embattled edtech firm Byju’s.
When restarting the assessment: Blois, who took over as CEO of Prosus Interim CEO Ervin Tu said in May that the valuation reset in the tech world is typical of the sector’s funding cycles and is not deterring long-term investors from betting on India.
Prosus doesn’t live “in cycles,” he told us. “I founded a company 20 years ago… I don’t get nervous about valuations… it’s part of life.”
In the Indian market: Bloisi said India remains a “global priority” for the group, which has invested around $7 billion here, backing companies such as Swiggy, Meesho and Urban Company. Prosus is looking at deals in the generative AI and online marketplaces space, he said.
On Byju’s debacle: “There were some governance issues within the company (Byju’s)… and there were disagreements about how it was run for some time, even before the bigger issues arose,” Bloisi said.
Prosus wrote off its 9.6% stake in cash-strapped Byju’s. marking a fair value loss of $493 millionE-pharmacy startup PharmEasy has also been a drag on the numbers. Prosus said in June that Pharmeasy’s internal rate of return was negative 35%.
Upcoming IPOs: Bloisi said that five to 10 of his Indian portfolio companies are likely to enter the public markets in the next few years. One of Prosus’ biggest bets, Swiggy, and leading digital payments provider PayU are preparing for an initial public offering (IPO).
Read also: Prosus elevates Ashutosh Sharma to the top of the India and Southeast Asia market
Zepto to raise another $310 million; Mars Growth to join funding round
(LR), Aadit Palicha and Kaivalya Vohra, founders of Zepto
Zepto is ready to step up the already intensifying battle of fast-paced trading. More information here in our Monday morning scoop:
Offer details: A little over a month later Zepto raised $665 millionThe three-year-old company is set to raise another $310 million and reach a post-money valuation of $5 billion, marking a 40% higher valuation for Zepto than it was in June.
New investors: Mars Growth Capital, co-led by Mitsubishi UFJ Financial Group Inc and Israel’s Liquidity Group, will participate in the round, joining US-based General Catalyst and other existing investors in the Mumbai-based firm. Some high-net-worth individuals (HNIs) are also investing, the sources told us, adding that the term sheet for the round has been signed.
Read also: Exclusive: Talks for a Flipkart-Zepto deal fail; fast-commerce startup opts for financial investors
Chronology: Zepto’s funding a year ago is symbolic of the rise of fast-trading platforms, as well as demand for fast delivery of edible and non-edible goods. In just a year, its valuation has soared 257% to $5 billion, up from $1.4 billion in August last year.
Limit: While Zepto is raising the new capital at a higher valuation, there is a cap on the current round of $350 million as long as it closes within 90 days of the last round.
Read also: Venture capitalists take to the streets with fast-paced trading and D2C success
More firepower: Zepto will raise more capital with the new round to take on its rivals, especially Blinkit, the current market leader. Blinkit has announced plans to expand to 2,000 dark stores by 2026The annualized gross order value is over $2.3 billion, while Zepto’s is around $1.5 billion. Flipkart Minutes was launched in Bengaluru, While Swiggy Instamart is also expanding.
Read also: The 10-minute challenge: Fast-paced retail becomes the villain of neighbourhood kirana stores
Infinyte.Club raises $3.6 million: Infinyte.Club, a wealth creation and management platform for employees of technology and startup companies, It has raised $3.6 million in a funding round. Led by Elevation Capital.
Truva takes home $3 million: Truva, a real estate technology platform, has raised $3 million in a round of funding led by early-stage venture capital (VC) firm Stellaris Venture Partners.
IT companies see more obstacles in the execution of agreements
India’s $250 billion IT industry is Struggle to translate the strong momentum of agreements into actions which will boost financial performance.
Why the delay? Analysts say the situation could worsen in the coming quarters amid growing fears of a US recession, delays in decision-making and a slow increase in signed deals.
“Global economic challenges, including inflationary pressures, rising interest rates and geopolitical tensions, have made clients more cautious,” said Saurabh Gupta, president of research and advisory services at HFS Research.
Read also: India’s Great IT Reset: Green Shoots in Q1 Earnings
Decoded data: “In the April-June period, $1.5 billion in deals were announced, which is only half of the $3-3.5 billion worth of deals closed during this period, most of which were related to digital and technology transformation,” said Hansa Iyengar, senior principal analyst for enterprise IT at technology research and advisory firm Omdia.
Other featured stories from our reporters
Agnishwar Jayaprakash, founder of Garuda Aerospace
Garuda Aerospace prepares to launch flights in Sri Lanka: Drones launched Garuda Aerospace has expanded its operations in Sri Lanka, The first as part of its Global Garuda initiative that aims to expand operations across 50 countries, the company’s CEO Agnishwar Jayaprakash told ET.
Rural fintech startup Jai Kisan gets NBFC license: Rural-focused fintech startup Jai Kisan has launched a… received a non-banking financial company (NBFC) license following the acquisition of a majority stake in Kushal Finnovation Capital, an NBFC specialising in supply chain finance.
From India, with intelligence: How Indian GCCs Drive Success for Parent Companies | Indian Global Capability Centres (GCCs) play a vital role for global companies, going far beyond traditional back-office functions. This evolution is making these centers a key part of their global decision-making, transforming them from cost centers to strategic partners and contributing significantly to the growth of parent organizations.
AI spending is driving cloud evolution; challenges remain: Massive acceleration in generative artificial intelligence (AI) spending driving a comprehensive restructuring of the cloud infrastructure, according to industry body Nasscom.
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