Exfinity Venture Partners Announces Partial Exit from CloudSEK, Delivering 13x Returns

Exfinity Venture Partners, an early-stage investor in Deep-Tech & B2B tech, has announced a partial exit from its investment in cybersecurity platform CloudSEK, delivering a 13x multiple on invested capital (MOIC) and an internal rate of return (IRR) of more than 40%. The transaction was executed as a secondary sale to existing investors, while Exfinity continues to retain a meaningful ownership stake in the company.

Exfinity was the first institutional investor in CloudSEK, backing the company during its pre-Series A round and supporting its vision of building a predictive, intelligence-led cybersecurity platform at a time when the market was still largely oriented around reactive threat detection. Since then, CloudSEK has evolved into a comprehensive AI-driven threat intelligence platform, helping enterprises proactively identify and disrupt cyber threats across digital risk, attack surface, and supply chain layers. At its core, the platform models cybersecurity not as isolated alerts but as connected attack paths across identity, exposure, and trust relationships-enabling organizations to predict and disrupt attacks before execution.

CloudSEK has demonstrated strong commercial momentum, having recently crossed USD 15 million in ARR and consistent year-on-year growth. The company has increasingly established itself as a global cybersecurity partner, with over 60% of its net new revenue driven from international markets and the United States emerging as its fastest-growing region. Its customer base includes leading enterprises across banking, telecom, aviation, and digital platforms, reflecting strong product-market fit in complex, large-scale environments.

In early 2025 the company had raised over $20 million across its Series B rounds, including participation from global investors such as Commvault (NASDAQ: CVLT) and Connecticut Innovations Fund (State of Connecticut Fund). Its strategic relationship with Commvault is expected to significantly strengthen CloudSEK’s global go-to-market motion, particularly in the US, enabling deeper enterprise penetration and accelerating its next phase of growth.

The rise of AI-native threats is fundamentally reshaping the cybersecurity landscape, with attackers increasingly leveraging autonomous systems to identify and exploit vulnerabilities across interconnected environments. CloudSEK’s platform is designed for this new paradigm, shifting enterprises from reactive detection to predictive resilience by using AI to simulate, validate, and disrupt attack paths before they materialize. This positioning places the company at the forefront of the next generation of cybersecurity infrastructure.

CloudSEK also represents a compelling example of reverse innovation, built and refined in India and now solving mission-critical cybersecurity challenges for enterprises globally. With

R&D anchored in India and a growing international footprint, the company exemplifies the emergence of India-origin deep-tech platforms scaling successfully across global markets.

“CloudSEK is one of the clearest examples of what Indian deep-tech can achieve on the global stage. Our early conviction in Rahul and his team has been validated by the company’s ARR trajectory, enterprise client quality, and now, by the confidence of a global strategic player like Commvault. This is a calibrated partial exit - we remain invested and excited about what comes next,” said Chinnu Senthilkumar, Managing Partner at Exfinity Venture Partners.

“Exfinity was our first institutional investor and backed us at a time when few were willing to take a bet on a cybersecurity platform emerging from India. Beyond capital, they have been a true partner, supporting us across early customer introductions, follow-on fundraising, and strategic direction as we scaled globally. This journey reflects what long-term, hands-on venture partnership should look like, and we are excited to continue building the next phase together” added Rahul Sasi, Founder & CEO at CloudSEK. 

This transaction marks the latest in a series of liquidity events for Exfinity’s 2016 vintage Fund II, including full exits from Kinara.ai and Locus, and a prior partial exit from Pixis. The fund has already crossed key DPI milestones through these exits, and this secondary adds further distributions to Limited Partners, while retaining meaningful upside across the remaining portfolio. These outcomes reinforce Exfinity’s belief in building globally competitive deep-tech companies from India.

About Exfinity Ventures

Exfinity Venture Partners is an early-stage venture capital firm focused on backing category-defining startups in deep-tech, enterprise technology, semiconductor, AI, and frontier technology sectors. The firm invests in companies building globally relevant technologies from India and has backed several high-impact startups across enterprise and industrial innovation.

To know more about Exfinity, visit https://www.exfinityventures.com/

Techpreneurs Nikhil and Nishant Rathi Exit Web Werks in Milestone Full Stake Sale to Iron Mountain

Web Werks India Pvt Ltd, a leading data center provider in India, founded by Nikhil & Nishant Rathi, has been fully acquired by Iron Mountain (NYSE: IRM) in one of the largest transactions in India’s data center industry. The founders of Web Werks secured an investment of $150 million during the joint venture’s formation in 2021, followed by an additional $170 million in 2023. With their successful exit, the Rathi brothers have demonstrated their expertise in building and delivering exceptional value to India’s digital and data center ecosystem.

L-R — Nishant & Nikhil

The acquisition marks a significant milestone for the company, solidifying its legacy as a key enabler of India's digital economy. As part of the transition, Web Werks will now operate under a new brand identity while continuing to serve its enterprise clients without disruption.

“Nishant and I have been working around the clock for 25+ years to build Web Werks data center. I am incredibly proud of what the entire team has achieved - making it one of the biggest acquisitions in Indian Data Center history. What started with just 40 people and three data centers at 1MW capacity has grown into a team of over 200 with 162 MW of capacity. Since then, we have blitzscaled to a capability of 162+ MW, a total of 6 live data centers in major cities and a family of 200+ people. I am grateful to everyone who has been part of this incredible journey as I look ahead to the next chapter,” said Nikhil Rathi, Co-Founder, Web Werks and NeoSOFT.

Speaking about the sale, Nishant Rathi, Co-Founder of Web Werks and NeoSOFT, added, “While this marks an exciting new chapter for Web Werks, our commitment to fostering growth in the technology sector remains strong. Nikhil and I will continue to lead NeoSOFT and build NeoSOFT & NeoNXT platforms - driving initiatives that will propel businesses to leverage the best of digital & AI. We also look forward to lending our expertise and partnering with investors, entrepreneurs & VCs, and committed to mentoring the next generation of entrepreneurs and growing the data center industry both in India and globally. The India story is alive and well and we are just one of the few examples of what dedication, customer centricity and a belief can do.”

Founded in 1996 by Nikhil and Nishant Rathi in a bedroom, Web Werks has grown into a powerhouse in India’s digital infrastructure space. Over nearly three decades, the company has established itself as a highly trusted provider of high-density, hyperscale, and AI-powered data centers, with best-in-class reliability and efficiency. At the time of sale, Web Werks operated six Tier-3, carrier-neutral data centers in Mumbai, Pune, Delhi-NCR, Bengaluru, and Hyderabad, with construction on another in Chennai already underway.

The journey of Web Werks is a testament to the vision, resilience, and adaptability of its founders. What began as a small web hosting company evolved into a leader, keeping pace with India’s rapidly growing digital ecosystem. Founded by Nikhil and Nishant Rathi when they were only teenagers, the company navigated the early days of dial-up internet, working tirelessly to scale from serving small businesses to enterprise-level solutions. Through industry shifts—from the dot-com boom to the cloud and AI revolutions—Web Werks has consistently stayed ahead of the curve, cementing its role in shaping India’s digital future.

As they look ahead, the Rathi brothers are eager to reinvest their time and expertise into India’s tech landscape. Their unwavering belief in the country’s potential fuels their commitment to helping shape the next phase of India’s digital evolution. “No story is complete without India,” said Nikhil. “We’re proud of everything we’ve achieved, but the best is yet to come. We’re excited about what lies ahead, and we’ll continue to be part of India’s story for years to come.”

About Web Werks

Web Werks is a leading provider of Tier III and Tier IV data center solutions in India, offering robust and scalable infrastructure services to businesses across industries. The company specializes in colocation, cloud hosting, disaster recovery, and managed services, catering to enterprises, hyperscalers, and government organizations. With a strong reputation for reliability and innovation, Web Werks serves over 1,300 clients globally.

Khaitan & Co, led by Partners Deepak Jodhani and Gautam Suseel, advised Nikhil Rathi and Nishant Rathi throughout the entire deal lifecycle, including Iron Mountain’s initial investment in Web Werks. Deutsche Bank acted as the exclusive financial advisor to Web Werk

Maharashtra Defence and Aerospace Venture Fund (MDAVF) Successfully Exit from Two Portfolio Companies

The Maharashtra Defence and Aerospace Venture Fund (MDAVF), a SEBI-registered Category II Alternative Investment Fund (AIF) managed by IDBI Capital Markets & Securities Limited (ICMS) focused on supporting innovative companies in the defence and aerospace sectors, recently announced its successful exit from two of its portfolio companies, viz., Cyronics Innovation Labs Private Limited (CILPL) and JSR Dynamics Private Limited (JSR Dynamics) realizing ₹14.46 crores and ₹59.15 crores respectively.

 

Mr. Amey Belorkar, Fund Manager - Defence and Aerospace Venture Fund, IDBI Capital Markets & Securities Ltd

 
Mr. Amey Belorkar, Fund Manager - Maharashtra Defence and Aerospace Venture Fund (MDAVF), IDBI Capital Markets & Securities Ltd, speaking about the exits said, “Both, Cyronics Innovation Labs and JSR Dynamics, are instrumental in driving technological progress and self-reliance within India’s defence and aerospace industries with a focus on enhancing the operational effectiveness of defence forces. MDAVF remains focused on supporting India’s journey towards self-reliance by investing in high-potential ventures that foster technological breakthroughs and enhance indigenous capabilities. These milestones reflect the strength of our investment strategy and our ongoing commitment to driving innovation in India’s defence and aerospace sectors. By backing sustainable growth in these critical industries, we’re proud to contribute to India’s defence ecosystem and the vision of Atmanirbhar Bharat.”

MDAVF, to date, has invested approximately ₹406 crore in 22 MSMEs. The fund has successfully executed full and partial exits from 12 companies, realizing divestment proceeds of around ₹281 crore and achieving a strong Internal Rate of Return that highlights the fund's disciplined and strategic approach to value creation.

Cyronics Innovation Labs Private Limited (CILPL)

CILPL, founded in 2020, operates in the AI and Machine Learning sectors, specializing in software-defined radio technologies for the defence and aerospace sectors. CILPL has served leading defence and aerospace organizations, including Kirloskar Oil Engines Ltd., Navstar Integrated Systems Pvt. Ltd. (Navy) and Theta Controls (Army), among others.

JSR Dynamics Private Limited (JSR Dynamics)

JSR Dynamics was founded in 2018 with an intention to contribute in a big way towards achieving self-reliance in the defense sector through indigenous Design, Development and Manufacture. JSR Dynamics is engaged in the development and manufacturing of advanced munitions, including glide bombs and loitering munitions. The company’s products are poised to play a significant role in both Indian and international defence markets.

These exits showcase MDAVF’s commitment to supporting high-potential ventures in the defence and aerospace industry, driving technological advancements, and generating strong returns for its stakeholders. Both exits have been marked by impressive internal rates of return (IRR), underscoring the fund’s effective investment strategy and its ability to identify high-growth companies.

Managed by IDBI Capital Markets & Securities Limited, MDAVF continues to play a transformative role in driving indigenous innovation, fostering self-reliance, and enhancing India’s global competitiveness in the defence and aerospace sectors.

For more information, visit: https://idbicapital.com/aif/Maharashtra-Defence-and-Aerospace-Venture-Fund.html

About IDBI Capital Markets & Securities Ltd (ICMS):

IDBI Capital Markets & Securities Ltd (ICMS), a wholly owned subsidiary of IDBI Bank Ltd., is a registered Portfolio Manager with Securities and Exchange Board of India (SEBI) since 1998 and is authorised to undertake Funds Management activities (Debt & Equity). These activities would be governed by Securities and Exchange Board of India. Presently, ICMS Alternative Investment Fund (AIF) is acting as Investment Manager for two SEBI registered AIF’s and is also the Project Advisor to a Scheme of Government of Maharashtra.

Softbank Exits Paytm at Loss of ~ $150 Million

Japan's Softbank investment arm, the Softbank Vision Fund, exited from fintech major Paytm during the June quarter. The exit resulted in a loss of around $150 million. Softbank had initially invested about $1.5 billion in One97 Communications, which owns the Paytm brand, in tranches back in 2017.

The exit was in line with Softbank's plan, although the company did anticipate the loss at that time. Before Paytm's initial public offering (IPO) in 2021, Softbank held around 18.5% stake in Paytm.

As of the quarter ending in March 2024, SoftBank held a 1.4% stake in Paytm. However, by June of the same year, its shareholding dropped below the 1% mark.

During the IPO, it held a 17.3% stake through SVF India Holdings (Cayman) Ltd and 1.2% through SVF Panther (Cayman) Ltd. SVF Panther sold its entire stake during the IPO for about $225 million. Paytm's share price has not matched its issue price of Rs 2,150 apiece to date.

Besides Softbank, Warren Buffett's Berkshire Hathaway haa also made an exit from its investment in Paytm-parent firm One97 Communications. The exit resulted in a loss of about 40% on the high-profile investment made more than five years ago.

Back in 2018, Berkshire Hathaway invested approximately $260 million in Paytm, acquiring a 3% stake in the financial services startup at a valuation of around $10 billion. However, the investment giant sold its remaining position in Paytm for $121.6 million, securing a return of less than $160 million on its initial investment.

Despite Paytm's IPO debut at a valuation north of $20 billion, its share price fell significantly afterward. The Indian firm has since rebounded, ending at $10.73 per share following fast revenue growth and improved finances in recent quarters. 

Softbank May Completely Exit Paytm This Month

It is being reported that Japanese conglomerate SoftBank is in the process of exiting its investment in Paytm. Reports indicate that SoftBank's stake in the Indian payments platform has been reduced to 1.4% at the end of March 2024, and it is likely to exit completely this month. This would mark the end of a 7-year association between SoftBank and Paytm. Previously, SoftBank had sold a 4.5% stake in Paytm for about $200 million, and it has been divesting its stake over the last couple of years through a mix of block deals and open market transactions.

SoftBank Group Corp. sold a majority of its stake in Paytm before regulatory scrutiny caused the once-celebrated Indian fintech firm’s shares to dive. The decision was influenced by several factors. Uncertainty grew in India's regulatory environment, prompting SoftBank to reconsider its investment. The regulatory landscape can significantly impact a company's operations and growth prospects.

Concerns over Paytm Payments Bank Ltd.'s license also played a role. The license issues led to the suspension of much of the banking operation's business by the Reserve Bank of India, affecting Paytm's stock price.

SoftBank's executive managing partner, Navneet Govil, stated that it was prudent to start monetizing their stake in Paytm. They sold a good portion of Paytm shares before the recent stock correction.

Paytm's stock price declined by over 40% from its peak in January due to regulatory challenges and banking-related issues.

Overall, SoftBank's decision to exit Paytm reflects a combination of regulatory concerns, license uncertainties, and strategic financial considerations. The Japanese investor has been gradually reducing its stake in Paytm, and it now stands at approximately 5% as of January 2024.

The Implications of the Exit

SoftBank's decision to exit signals a lack of confidence in Paytm's future prospects. Investors often view SoftBank as a strategic and influential player, so its exit may raise concerns among other investors. The exit has already affected Paytm's stock price.

The company's shares have dipped significantly due to regulatory challenges and banking-related issues. The decline has been over 40% from its peak in January. On addition, SoftBank's exit could impact how the market perceives Paytm. Investors may question the company's stability and growth potential, especially given the regulatory hurdles it faces.

With SoftBank divesting its stake, Paytm may face liquidity pressure. The company needs to manage its finances effectively to sustain operations and growth.

Paytm will need to reassess its strategic direction without SoftBank's backing. It may seek alternative investors or partnerships to fill the void left by SoftBank.

SoftBank's exit ends a 7-year association, and its departure may have long-term consequences for Paytm's business model, expansion plans, and investor confidence.

In summary, SoftBank's exit introduces uncertainty and challenges for Paytm, but the company will need to adapt and find new avenues for growth and stability.

MEITY’s Electropreneur Park Announces 1st Successful Financial Exit for Its Incubated Health-Tech Startup UnivLabs Technologies

In a major boost to the Indian Electronics System Design and Manufacturing (ESDM) market, Electropreneur Park (EP) announced the exit of Univlabs, a leading Indian health-tech startup.

With its remarkable growth journey, Univlabs Technologies has established its presence in 6 countries, offering innovative solutions to 2000+ hospitals in India and overseas. So far, the startup has applied for 11 patents while having 2 to its name.

An initiative of the Ministry of Electronics and IT, Electropreneur Park has been set up to primarily to carry out incubation and build an ecosystem to help budding ESDM entrepreneurs. EP is managed by Software Technology Parks of India, implemented by India Electronics and Semiconductor Association (IESA) and supported by CyberMedia (India) Ltd (CMIL).

Since its inception, Electropreneur Park has incubated 59 companies which have developed 125 products, and applied for 66 patents, along with generating employment opportunities to 885 professionals. The startups of EP have received Rs 21.79 crore of follow-on funding.

UnivLabs Technologies began its growth journey with Electropreneur Park with a mission to revolutionize healthcare by providing affordable and cutting-edge medical devices that improve patient outcomes.

The startup received a valuation of ₹20 crore and initiated an investor buyback from stake holders of EP incubator worth Rs ₹94.64 lakhs, marking a 36X growth for EP’s investment thereby marking a milestone in EP’s history. With this, Univlabs' successful exit leaves an impressive footprint of Electropreneur Park’s role in fostering innovation and entrepreneurship over the past seven years of its operations.

The exit was formally announced with a cheque handover ceremony during the inauguration of the Apiary CoE incubation facility. The launch of Apiary CoE incubation facility has marked the beginning of yet another chapter of supporting budding entrepreneurs and startups by STPI. The launch event was graced by the presence Shri S. Krishnan, IAS, Secretary, Ministry of Electronics and IT and other dignitaries from the IT industry.

“It’s quite inspiring to meet and learn the journey of Sunil Singh, founder of Univlabs Technologies. The level of confidence, vision and ability to persevere over the last eight years have been crucial for his success. He should stand as an example of somebody who everyone can imitate,” said Shri S. Krishnan, IAS, Secretary, Ministry of Electronics and IT.

On the successful and profitable exit of UnivLabs, Shri Arvind Kumar, Director General, STPI expressed how Electropreneur Park has been successful in fostering innovation and entrepreneurship and said, “In the last few years since it was set up, Electropreneur Park has incubated ESDM startups aligning with India’s commitment and vision to reach US$ 300 billion worth of electronics manufacturing and exports of US$ 120 billion by 2025-26, this progress is a promising development. Looking forward to witnessing more such startups leading the way of nurturing India’s ESDM market.”

Reflecting upon how an initiative like Electropreneur Park has given a push to India’s Make in India strategy, Shri. Sanjay Gupta, Chairman, IESA emphasized the role played by IESA in nurturing the ESDM startups and wished EP was the first incubator of its kind to set up and create a state-of-the-art electronics lab and other support infrastructure in the country.

On the successful first exit of UnivLabs, Shri. Pradeep Gupta, CMD, CyberMedia Group and Chief mentor of EP, said, “Electronics manufacturing in India is the new sunrise industry and we need to ensure that we continue our efforts to make the Make in India campaign a success through the promotion of indigenous innovation and entrepreneurship in the ESDM sector.”

Delving into Univlabs’ journey with Electropreneur Park, Sunil Singh, Founder & CEO, Univlabs Technologies said, “We are a passionate enterprise committed to making healthcare more accessible and affordable for everyone. Electropreneur Park gave us the perfect platform in the form of world class infrastructure facilities equipped with cutting edge ESDM Labs and other support which helped channeling our efforts in fostering innovation and entrepreneurship. Our vision is to become a world No 1 company in the field of EndoVision in the next 10 years.”

This unprecedented success for Univlabs is a beacon of hope for the future of electronic innovation in India. Emphasizing the immense potential within the Indian ESDM sector, the growth journey for Univlabs Technologies, fostered by Electropreneur Park is a significant contribution to the Indian government’s "Make in India" vision.

Inflection Point Ventures announces full exit from Koovers with 47% IRR

• IPV has recorded 2.1X MoM in just 22 months of investing in Koovers
• Koovers is a B2B e-commerce platform providing genuine spare parts to independent auto-workshops and the aftermarket with doorstep delivery.
• IPV has successfully delivered 22 Partial Exits, 12 Full Exits to their investors with promising returns so far.
• Recently, IPV announced exits from 2022 registering 160% IRR

Inflection Point Ventures, one of the most active angel platforms with over Rs 600 crore invested across 175+ startups, has announced a full exit from Koovers with 47% IRR. IPV has achieved 2.1X MoM from this exit within 22 months of investing in the Company. This success underscores IPV's strategic expertise in nurturing and guiding its portfolio companies to thrive in the competitive startup landscape. The exit comes at the back of Koovers acquisition by German automotive giant Schaeffler India for over Rs 142 crore.

Koovers, a B2B e-commerce platform, streamlines genuine auto part supply to independent workshops and the aftermarket. With a focus on convenience and efficiency, it aims to expand its offerings and improve the automotive aftermarket supply chain. The company is known for its diverse range of authentic parts, user-friendly ordering, and prompt doorstep delivery thus reducing workshop downtime, and enhancing efficiency. Koovers is dedicated to innovation, ensuring its customers have timely access to the right parts.

Koovers owes its success to a strong founding team, whose dedication to innovation and industry expertise has been pivotal in reshaping the automotive supply landscape.

Commenting on the exit, Mitesh Shah, Co-Founder, Inflection Point Ventures, says, “At IPV, we're dedicated to working closely with founders to create lasting value. With Koovers, we went beyond the business aspect to enhance their overall market perception in a rapidly evolving sector. We're not just advisers; we're connectors and active partners in every business decision. We work with the founders closely to actively influence outcomes by being fully engaged throughout the journey as opposed to signing a cheque and playing a passive role.”

IPV recognized Koovers' unique strengths and opportunities. The collaboration was designed to go beyond traditional investment relationships. IPV worked closely with Koovers to refine their strategies, shape their business model, and craft a strong fundraising and exit plan.

IPV's commitment extended to connecting Koovers with key industry professionals helping the company build a network of right professionals to guide them through a planned growth and exit map.

Sandeep Begur, CEO, Koovers, says, “IPV was a pillar for us during our fund raise and M&A stage - with Mitesh playing a pivotal role in the whole process.”

As of 2023, IPV has achieved remarkable milestones. The early stage focused angel platform has delivered 22 partial exits and 12 full exits to their investors with promising returns so far. In 2022, IPV continued its trend of success with 12 exits, delivering a commendable 160% IRR to investors. This followed an exceptional 2021, during which IPV achieved 13 exits with a remarkable 190% IRR, solidifying its commitment to generating substantial returns and fostering the growth of promising startups

About Koovers

Koovers is a prominent B2B e-commerce platform specializing in supplying genuine auto parts to independent workshops and the aftermarket sector. Focusing on convenience, Koovers offers doorstep delivery. The company's constant goal is to improve its product range and enhance the efficiency of the automotive aftermarket supply chain, ensuring customers have access to quality parts with ease.

About Inflection Point Ventures & Physis Capital

Inflection Point Ventures (IPV) is an angel investing platform with over 8600 CXOs, HNIs, and Professionals to together invest in startups. The firm supports new-age entrepreneurs by providing them with monetary & experiential capital and connecting them with a diverse group of investors. IPV has announced the launch of a $50 million CAT 2 AIF Physis Capital to invest in pre-Series A to Series B growth-stage start-ups.

Venture Catalysts Announces Full Exit from Its Portfolio Koovers with Handsome 2.1X Returns in Just 1.5 Yrs

Venture Catalysts, India’s first and largest early-stage investment firm, has announced full exit from its portfolio Koovers, a leading B2B Ecommerce platform for auto spare parts, with handsome 2.1x returns in just 1.5 years.

Venture Catalysts (Vcats) exited its investment in Koovers post the latter’s acquisition by Schaeffler India Ltd, an industrial and automotive parts maker and listed subsidiary of German automotive major Schaeffler Group, in August, 2023. Schaeffler acquired Koovers for Rs 142.4 crore.

Venture Catalysts had invested in Koovers in early 2022 in its pre-Series A round through its Angel Fund and few other Angels and Family Offices directly investing in the company. All the investors have got an exit with the acquisition. Inflection Point Ventures, Canbank Venture Fund, and JPIN some of the other marquee investors in Koovers.

“Koovers is one of the rarest startup that is not only solving a major problem in the automotive aftermarket segment but also been posting impressive revenues year after year. We invested in the company for a long term but the acquisition was a great exit opportunity with over 2.1x returns in just 1.5 years in a market that’s facing a longish funding winter and a liquidity crunch. These opportunities to the investors creates a huge positive impact in the entire ecosystem,” said Dr Apoorva Ranjan Sharma, Founder and Managing Director of Venture Catalysts ++.

Founded in 2015 by Vinayak YB, Sandeep Begur, and S Prem Kumar, Koovers is a B2B ecommerce platform that supplies auto spare parts to independent auto workshops (IWS) and the aftermarket ecosystem. It has clocked a revenue of Rs 77 crore in 2022-23 and supplies to over 7,000-plus workshops and has a portfolio of around 1.8 million parts from various manufacturers.

“We are quite excited to have had investors like Venture Catalysts on our captable. With their guidance under the leadership of Dr Apoorva Ranjan Sharma, we we were able to achieve our growth metric goals thus creating immense value for all our investors,” said Sandeep Begur, Cofounder, Koovers.

About Venture Catalysts

Venture Catalysts is India’s first integrated incubator. It typically invests $250K – $2 Mn in early stage start-ups with a potential to create enduring value for over a long period of time. Founded in 2016 by Dr Apoorva Ranjan Sharma, Anuj Golecha, Anil Jain and Gaurav Jain, Venture Catalysts has invested in over 300+ startups since inception. The cumulative valuation of the startups invested by Venture Catalysts is $10 Bn+. Venture Catalysts has its presence across 55 cities in 9 countries and is one of the most active early stage investor globally.

SoftBank To Sell Its Stakes in Paytm and Zomato – Report

Japan's SoftBank is reportedly set to sell its, stakes in Indian digital payments giant Paytm and food aggregator Zomato, as it looks to compensate the losses it incurred in last 2 years or so. SoftBank is reportedly looking for partial exits from high-performing companies like these two.

SoftBank Group is facing losses from the SoftBank Vision Fund, which had widened 70% to a record $32 billion from a year ago. Now the Japanese investment firm is aiming to turn a profit on its bets following a recent rally in their share prices. Softbank reported a record annual loss of $7.2 billion (₹58,962.60 crore) for the fiscal year ending March 2023.

According to media reports, SoftBank may sell its shares, in Paytm and Zomato, in small tranches on the open market rather than in block deals. Softbank holds 11.17% stake in Paytm and 3.4% in Zomato.

Notably, Paytm and Zomato's shares have been rising substantially since the beginning of this month, owing to better market sentiment about them as a result of both startups exceeding their EBITDA profitability targets ahead of expectations.

In November last year, SoftBank sold a 4.5% stake in Paytm through block deals for $200 million, which led to a sharp fall in the shares of the Indian payment company.

Paytm went public in 2021, in India's biggest-ever IPO, but the shares skidded as low as 70% below listing price in the months after the listing. SoftBank has invested $1.6 billion in Paytm over the years, among its biggest investments in India

SoftBank had also recently sold a part of its stake in eyewear company Lenskart to private equity firm ChrysCapital, and made cash of over $70 million (₹573.16 crore) from the stake sale.

SoftBank’s active investments in Indian startups have slowed this year after a series of losses incurred by its Vision Fund. Even though, in last month it was reported that Softbank is in talks with four to five Indian Startups, to invest about $4-$5 million in each, with valuations of around $400 to $500 million.

Crypto Friendly Neo Banking Startup Cashaa Exits From Unicas in India

Cashaa, a prominent fiat, and crypto neo bank announced its exit from Unicas, Cashaa’s maiden attempt to enter the personal crypto-banking market after becoming a market leader in B2B crypto banking. In 2020, Unicas offered crypto-friendly INR Savings accounts to its customers in partnership with the United Multistate Co-op.

In recent events, Cashaa holding company Crypto Innovations UAB was granted a European virtual assets license from Lithuania. “The proposal was in the best interest of Cashaa, and it was decided that it would be even beneficial for both companies if Cashaa accepts a proposed buyout offer and exits from Unicas,” said Ms. Anamaria Redianu, Cashaa’s Board representative.

Cashaa will soon release its expansion plan for India. “The Indian market offers tremendous potential, especially after the recent clarity regarding cryptocurrency taxation and legal infrastructure. We at Cashaa welcome this decision”, said Mr. Kumar Gaurav, Cashaa CEO.

The compensation from the buyout will contribute to a $20 million investment fund to develop the fast-growing Web3 market. The complete details will be out soon.

“We have decided to acquire our stake from Cashaa representative in India to give a new direction to Unicas. After the recent reforms, the Indian market has a huge upside potential”, said Sonal Kukreja, Co-founder and CEO of Unicas.

Presently, Unicas has four branches fully operating in India, and the company aims to further its expansion. Unicas provides saving accounts and offers collateralized loans against crypto assets.

Cashaa started as a peer-to-peer (P2P) money transfer platform that transformed into a neo-bank in the UK. Cashaa has been helping businesses to access crucial banking infrastructure and deliver robust products to their users. 

Cashaa has onboarded more than 400 crypto businesses that have transacted billions of dollars using its solution. Cashaa is currently the largest community of crypto businesses, including heavyweights such as Binance, Chainlink, Kucoin, Nexo, Polygon, Paxful, CoinDCX, CoinSwitch Kuber, Bitbns, Unocoin, and many more.

Early Investors of Smytten Exit With Upto 15X Return, As the D2C Product Discovery Platform Raises Rs.100 Cr in Funding Led by Fireside Ventures and Roots Ventures

(L-R) Swagat Sarangi and Siddhartha Nangia, Founders, Smytten

Smytten raises INR 100cr in Pre-Series B led by Fireside Ventures and Roots Ventures; Some early investors exit with up to 15x return

• The round also saw participation from Sharrp Ventures, Waao Partners, Survam Partners and Sattva Group Family Office.
• A significant part of the investment will be used for building best-in-class engineering talent and tech infrastructure with advanced application of AI & ML that will transform the pre-purchase engagement between consumers and brands.
• The fund will also be deployed to double down the resource strength across key functions including Supply Chain, Marketing, Research & Insights and accelerate growth to INR 500cr ARR by end of FY23.

Smytten-India’s largest tech-enabled product discovery & trial platform which is revolutionizing the pre-purchase experience for millions of online consumers, has raised INR 100cr in Pre-Series B led by Fireside Ventures and Roots Ventures. The round also saw participation from Sharrp Ventures (Harsh Mariwala family office), Waao Partners (Pratul Shroff Family Office), Survam Partners (Munjal Family Office) and Sattva Group Family Office.

Over a half a decade now, Smytten has been transforming the pre-purchase product trial experience for consumers by helping them to try many new products and brands at the comfort of their homes with just a click of a button. Smytten is rapidly gaining popularity amongst millennial consumers and has witnessed an explosive growth in its user base in the last 9-12 months. With more than 10 million users, Smytten is one of the leading innovators in consumer tech, fuelling the growth of a potentially large D2C market in India that's expected to be a $100 Billion market by 2025.

The new investment will primarily be used for building many industry-first tech and data solutions with advanced applications of AI & ML to optimize the marketing funnel for D2C brands starting from new product development to consumer acquisition and retention. Also, the platform is going to invest heavily in creating a best-in-class servicing infrastructure across the country, to widen the product trial touch points and strengthen the online service delivery to better the pre-purchase buying experience for consumers at scale.

Smytten is planning to double down on its hiring across supply chain, marketing and other key functions. Smytten today employs more than 300 people with a very vibrant culture and strong focus on talent retention. It is scaling up its leadership team to fuel the next phase of growth across its offices in Bengaluru and Ahmedabad.

On the fundraise Siddhartha Nangia, Co-founder, of Smytten said, “We believe sampling-led tried-and-tested method of customer engagement will change the way D2C brands and consumers interact, making it more immersive and experience-based. Smytten has re-crafted the standard playbook of brand creation with the deep tech solutions built based on trial intent and feedback from millions of consumers. It is empowering the next generation of D2C & multi-national brands with actionable insights and a captive audience to scale their business fast. We are launching a new brand a day on our platform and bringing more than 15-20 new products every day to consumers to try. We are thankful to all our brand partners who have placed trust and confidence as we create a robust D2C ecosystem.”

Swagat Sarangi, Co-Founder at Smytten added, "Our mission is to democratize access and experience of premium & D2C brands for the Indian consumers by offering direct-to-home product trials. We are building a robust tech platform to make the pre-purchase journey and decision-making process of consumers very seamless by bringing in the power of trial experiences, data, content and community all together."

Kannan Sitaram, Partner at Fireside Ventures said, "We continue to believe in the development of an enabling ecosystem for the consumer brand revolution that's shaping up in India and Smytten is right at the forefront of it. Their integrated approach to consumer funnel and technological innovations to solve the key challenges faced by many D2C brands, makes them the unequivocal leader in a potentially $10B sampling and advertising market. The data-driven experiential solutions are already making waves and Smytten is becoming the first port of call for every consumer brand."

Japan Vyas Managing Partner at Roots Ventures quoted, “Smytten has grown more than 12X by revenue since the time we invested. We have participated in every round of fund raise they had and will continue to back them in future with even stronger conviction. We are very confident that Smytten is going to be a very large, profitable and fundamentally strong business in the consumer-tech space globally.”

Smytten hosts 900+ brand partners on its platform across lifestyle categories, ranging from fragrances, beauty & makeup, male grooming, food & beverages, baby & mother care, health & wellness and offers product samples to consumers across these categories to help them make the right purchase decisions. It also offers its brand partners a suite of services, data & insights needed for scaling up customer acquisition, product development & channel expansion. Many leading D2C & multi-national brands like Mamaearth, Plum, mCaffeine, WOW Skin, Maybelline, Man Matters, Bodywise, The Man Company, & more are already leveraging Smytten’s platform extensively to reach relevant users at scale and deliver first-hand product experience through sampling.

To date, Smytten has raised more than $20 million in institutional funding. Smytten also counts some marquee angel investors such as Rajan Anandan, ex-MD of Google India & South East Asia, and many other industry veterans as its early backers.

About Smytten

Smytten is India's largest D2C product discovery & trial platform. Launched by ex Unilever and Google executives, Siddhartha Nangia and Swagata Sarangi, respectively, Smytten is enhancing the way India's online consumers discover, interact with, and try consumer products and services. It hosts 900+ brand partners on its platform across lifestyle categories, ranging from fragrances, beauty & makeup, male grooming, food & beverages, baby & mother care, health & wellness and offers product samples to consumers across these categories to help them make the right purchase decisions. It also offers its brand partners a suite of services, data & insights needed for scaling up customer acquisition, product development & channel expansion.

Staqu Raises INR 11 Cr in Funding Led by Mount Judi Venture and SIS; IAN Makes Partial Exit

The platform aims to utilise the funds to scale up its product development to meet rapidly increasing market demand in audio-video analytics and bolster its presence internationally and domestically

Building on its success and looking to expedite its growth further, Staqu, India’s leading AI implementation enabler who works in audio-video analytics and management solution on existing CCTV , has raised INR 11 Cr as part of its Pre-Series A funding round from Mount Judi Venture and SIS limited. IAN (Indian angel network) existing investor in Staqu took partial exit in the round. IAN had invested undisclosed amount in Staqu, in 2016.

In addition, the operationally profitable startup executed an employee stock ownership plan (ESOP) buyback worth INR 1.5 Cr to recognize and reward its employees’ contributions to the company’s growth.

Staqu will be utilising the freshly infused funds to fulfil the current demand for its innovative AI-based audio-video analytics technology JARVIS in the international and domestic markets. The newly raised capital will also be used to bolster the brand’s presence globally, build powerful AI propositions to solve the safety, security, and analytics problems.

Commenting on the occasion, Atul Rai, Co-Founder, and CEO of Staqu said “Staqu has been committed to bringing about a revolution across industries using its proprietary AI technology JARVIS. The latest funding will allow us to cater to the rising demand and scale our business. We are thrilled to have eminent investors who understand AI’s immense potential backing us in our journey. We aim to build a safer, smarter, and more efficient society with our offerings. We look forward to achieving our goals and expanding the business.”

Mount Judi Ventures (MJV), a boutique fund house founded by successful entrepreneurs and experienced professionals, was the lead investor of this round. "We are delighted that Staqu, with its innovative solution converting dumb to smart cameras, is the fifth investment by Mount Judi India Growth Fund. We are happy that in this funding round, Staqu was able to attract a strong strategic investor. Together, we look to fuel its growth across and beyond India" said the Managing Partner of MJV and Ex-CTO of Sun Microsystems, Mr. Sherif Kottapurath.

Mount Judi aims to invest in innovative Indian start-ups in early growth stage across MedTech / Healthcare, EduTech, Digital / IoT, Food, CleanTech, Trans & Logistics and offers equitable terms to both the investors and entrepreneurs.

Staqu intends to bring AI into day-to-day decision-making across industry using their ever-evolving research and engineering products JARVIS. Last year in August, Staqu partner with Embassy Group, one of India’s leading real estate development firms, to augment the perimeter security of real estate assets and infrastructure with the audio-video analytics capabilities of its AI platform JARVIS.

Staqu presently works with over 100 + enterprises and 9 state governments . Some of the clientele includes Rebel food, JK Cement, We Work, Olive Co-living, Embassy, Tata projects, Tata Consumer, Borosil, Future Consumer, GMR, TFS, Agrocel, Crocs etc including governments of Uttar Pradesh, Bihar, Rajasthan, Punjab, Chhattisgarh, Haryana, Uttarakhand etc.

About Staqu :

Staqu is a national award winning audio-video analytics and management (A-VA-VMS ) company founded By Atul Rai, Anurag Saini and Pankaj Sharma built JARVIS, its proprietary AI technology which works on existing cameras to automate the monitoring of people, process and property. Staqu catering to clients like Wework, Rebel Foods, Embassy, Tata Projects, etc. with SAAS business model.

Exfinity Venture Announced Partial Exit from One of Their Early Investments in Mad Street Den Inc (MSD)

Exfinity Venture Fund, an early-stage VC Fund that was one of the first funds to focus exclusively on B2B technology investments, announced a partial exit from one of their early investments in Mad Street Den Inc (MSD). While Exfinity has exited partially, and given the aggressive growth of the company, it is safe to infer that MSD will not only return the entire fund but also will provide significant upside over the fund size. The secondaries were purchased by existing investors, FalconEdge, who led the company's Series B.

Exfinity is now raising its third fund aggregating to Rs. 500 crores based on the same thesis and has already announced its first investment in Ati Motors, a company which is into autonomous robots for material movement. Exfinity’s portfolio comprises some marquee names in B2B SaaS, Enterprise and Deep Tech viz. MoEngage, Locus, Pyxis, Vernacular.ai, Deep Vision, Log 9 Materials etc.

MSD is one of the first true blue AI companies from India which has a platform called Vue.ai, which powers end to end automation and digital experience management using AI for Multi-Billion Dollar Retailers including Diesel, Mercadolibre, Tata Group and more.

The company's latest platform play, Blox.ai, puts it on a trajectory with global A.I players, allowing it to bring its offerings from Retail into education, healthcare, finance and many more industries. With the rapid growth of Blox.ai platform, the company is positioned to become the biggest AI player in the India-US corridor.

Speaking on the exit, Shailesh Ghorpade, Managing Partner & CIO, who served on the Board of MSD said that “MSD has had a fascinating journey so far. Exfinity funded the company in the seed stage as the founders were extremely accomplished and they had a clear vision of where they wanted to go. During this course, MSD has achieved a pole position in the digitisation of the retail segment while growing exponentially in others & bagging multi-year contracts from some of the best names in the business. We believe MSD is just blossoming out and they have enormous potential. It is extremely satisfying to be a part of a journey of one of the earliest AI companies from India”.

Ashwini Asokan, co-founder and CEO of MSD stated, “We've been incredibly lucky to have the folks at Exfinity by our side since day 0. From operational help to hiring to business development and more, Shailesh and team have been there for us through so many different milestones. As a fund with a clear deep tech and enterprise tech thesis, they've created an entire cross border portfolio of companies that are building the next generation of businesses in the segment. We're barely just getting started with our journey here at MSD. Our vision for all things AI is big and we hope to take the lessons from this first phase of our journey with Exfinity with us, all the way forward”.

SucSEED Investors Secure Exit from their Fintech Portfolio Startup Paymatrix

Muthoot Pappachan Group has picked up 54 percent Stake into the company with exit provided to existing investors in the company, as part of its added focus on digital payments segment.

Hyderabad, India, June 22, 2021: Hyderabad based early-stage investment firm SucSEED Angel Network & IIIT seed fund have announced its successful exit from their investment portfolio Hyderabad based Fintech startup Paymatrix. Started in 2016 by Mukesh Chandra Anchuri, Muralidhar Nayak Guguloth and Anusha KP, the startup enables individuals to pay their Property rent, Rent deposit and maintenance payments online using Credit cards, thus enabling the card holders to take advantage of a credit-free period of 45-50 days.

Paymatrix has emerged to be one of the largest property rent payment & collection platforms in India, with a user base of 82,000+ and having processed INR 200 Cr till date. The start-up has some key integrations with various leading Co-living and Co-working spaces in India besides integrations with platforms such as 99 Acres, Bajaj Finserv etc.

Paymatrix has secured a strategic investment from Muthoot Pappachan Group (also known as Muthoot Blue), one of the largest financial conglomerates in India with interests in Gold loans, MSME loans, Vehicle loans, Housing Financing loans, Microfinance, Chits and Precious metals. The investment marks the entry of Muthoot Pappachan Group has picked up 54 percent Stake into the company with exit provided to existing investors in the company, as part of its added focus on digital payments segment.

Speaking on this successful exit, Vikrant Varshney, Cofounder & Managing Partner of SucSEED Angels Network, said --

The transaction volume on Paymatrix expanded 30x over the period FY 2019-21, with the startup displaying positive unit economics all throughout its journey. The team was able to consistently strengthen their value proposition and was able to stay ahead of peers in identifying and capturing the market opportunity. We are glad to have played an instrumental role in the journey of Paymatrix till date

The early investment from SucSEED Angel Network has helped Hyderabad-based Fintech firm to grow its presence into strengthening its value proposition beyond the target segment of credit cardholders. Further Paymatrix’s Founder & CEO, Mukesh Chandra Anchuri commenting on Muthoot's investment said “At Paymatrix, we are working to facilitate seamless and quick access to short-term credit for individuals and businesses so that they can better manage their cash flows or unanticipated expenses.

The investment from Muthoot Pappachan Group will help build capabilities and reach out to non-credit card holders, who share a similar pain point to that of credit card holders. We look forward to leveraging the experience of Muthoot Blue in lending business to build Paymatrix into a one-stop digital platform for individuals and businesses, who are looking for quick access to short-term credit"

Muthoot Blue views Paymatrix as a key enabler to foster their digital presence and to unlock synergy between the startup’s value proposition and their lending capabilities.

Ramesh Loganathan, COO at IIIT-H Foundation said “Paymatrix was one of our very promising early-stage investments at IIIT-H Foundation. The team has shown remarkable understanding of their markets and constantly tweaked and pivoted to connect, onto becoming a category-creator in space management and credit card payments. We are also a very happy early customer. We believe that this partnership and investment from Muthoot group shall enable them to scale greater heights."

Viiveck Verma, cofounder & Partner with IIIT-H Seed fund, said “We got an opportunity to work with Paymatrix and its founders closely over the past few years. The founders have shown great persistence and have successfully built a highly motivated team with great execution capabilities. Their razor-sharp focus on capturing the market and relentless product development to meet customer needs has been remarkable. This investment cum association shall enable Paymatrix to significantly strengthen the value proposition, while extending a jumpstart for Muthoot group to grow their digital presence. We are super excited to have mentored them on the way and wish them all the best in their journey ahead with Muthoot Group"

About Paymatrix: The start-up was incubated at IIIT-Hyderabad and Paypal accelerator and had secured early-stage investments from investors including Xseed venture partners, IIIT-H seed fund, IIIT-H foundation, SucSEED Angel Network, and SmartCity Dubai.

Over the past two years, Paymatrix diversified into facilitating payments beyond Property Rental payments to turn itself into a full-stack payment player; the platform now enables individuals to pay for all their large ticket monthly expenses such as Rent, Tuition fees, Maintenance, Vendor payments, etc. on Credit cards without the need of Point-of-Sale at the recipient.

In 2020, the company had also expanded its proposition to facilitate start-ups and small businesses to use their corporate credit cards, purchase cards, and business cards to pay business expenses; businesses can thus effectively manage their working capital and timely honour the vendor expenses without having to rely upon short term credit/ working capital loans. The launch of the offering resulted in the expansion of the customer base to 82,000 and the Monthly Gross payment value expanded by 800% within 12 months.

The Paymatrix team stumbled upon this idea when they had to pay a Rental deposit to their landlord wherein, they looked for an option to pay the same using a Credit card in absence of ready liquidity.

About SucSEED Angel Network (SAN)

SucSEED Angel Network (SAN), founded in early 2017, is one of the fastest growing Angel Network, with a combination of CXO level Corporate Professionals, Technology Angels, Business Leaders and Serial Entrepreneurs, who have come together to fuel the growth of Indian Startup System at early stage, with provision of growth capital, organizing access to market and Business mentoring. SucSEED’s Investment focus is primarily targeted at Growth stage in post revenue startups involved with Use cases around real problem statements and solving them using emerging Technology.

SucSEED has been investing in diverse domains as listed below, but also open to support wider innovation and businesses. SucSEED facilitates raising seed funding through Angel investments and provides support towards Venture Capital to such entities and teams.

About Paymatrix: The start-up was incubated at IIIT-Hyderabad and Paypal accelerator and had secured early-stage investments from investors including Xseed venture partners, IIIT-H seed fund, IIIT-H foundation, SucSEED Angel Network, and SmartCity Dubai.

Over the past two years, Paymatrix diversified into facilitating payments beyond Property Rental payments to turn itself into a full-stack payment player; the platform now enables individuals to pay for all their large ticket monthly expenses such as Rent, Tuition fees, Maintenance, Vendor payments, etc. on Credit cards without the need of Point-of-Sale at the recipient.

In 2020, the company had also expanded its proposition to facilitate start-ups and small businesses to use their corporate credit cards, purchase cards, and business cards to pay business expenses; businesses can thus effectively manage their working capital and timely honour the vendor expenses without having to rely upon short term credit/ working capital loans. The launch of the offering resulted in the expansion of the customer base to 82,000 and the Monthly Gross payment value expanded by 800% within 12 months.

The Paymatrix team stumbled upon this idea when they had to pay a Rental deposit to their landlord wherein they looked for an option to pay the same using a Credit card in absence of ready liquidity.

IAN makes it 3rd Exit in 2019 as Spinny Raises $13.2 Mn from SAIF and Accel Partners

Indian Angel Network, the single largest horizontal seed stage platform in India, has successfully received full exit from Spinny, a used car buying and selling platform. Valuedrive Technologies, which owns and operates used car retailing platform Spinny, has raised $13.2 million (about Rs 92 crore), from marquee investment firms SAIF Partners and Accel Partners.

The early investors from IAN, had invested only INR 1.67 crore – and have now a multiple of well over 3 times in just three years.

Commenting on the exit Digvijay Singh, COO IAN said, “IAN’s investment in Spinny was driven by the belief in the founding team’s vision and expertise, as well as its business model. With this exit, IAN investors are reaping the dividends of their faith in this high-potential venture, led by a team focused on execution in the auto space. IAN is delighted to have been a part of the growth that My Spinny has seen in the last three years and wish it all the very best in the future."

[caption id="attachment_131278" align="alignright" width="300"] Digvijay Singh[/caption]

IAN lead investor in Spinny, Hari Balasubramanian commented, “Startups are all about discovering the right business model. Since inception Spinny had gone through several tough and near death situations . But the team led by founder Niraj Singh were relentless and went on trying to discover new approaches to satisfy customers with a compelling value proposition . This ultimately led to product market fit for Spinny. Happy to see their growth and I am confident that this startup is the dark horse in this domain due to the efficient way they have deployed capital for customer development . We as angels did our job of getting them to this stage and it gives me a sense of sadness and joy since we are exiting 100 % from this investment with a reasonable multiple.”

[caption id="attachment_131279" align="alignright" width="300"] Hari Balasubramaniam[/caption]The Spinny IAN exit was facilitated by the Rs 13.12 crores investment from SAIF Partners and Accel, at a pre-money valuation of INR 125 crore. The development also marks the third successful exit for IAN investors in 2019, retaining its position as the top seed investment platform in India. IAN had previously secured multi-fold exits from Noida-based online women’s fashion brand FabAlley.com and a Bengaluru-based start-up TagBox.

Indian Angel Network is India’s first and world’s largest business angel network with close to 500 members across the world, comprising the who’s who of successful entrepreneurs and dynamic CEOs. With investors from 12 countries, IAN’s operates from 7 locations, including cities in India and UK. The network is sector agnostic and has funded start-ups across 17 sectors in India and 7 other countries, helping breed global footprint companies. IAN has been giving excellent cash exits year-on-year to its investor-members. Some of its marquee investee companies include, Druva, Box8, Sapience Analytics, WOW Momos, Faballey, Consure amongst many others.

Indian Angel Network has been a pioneer in the seed and early stage investing. It has now launched a ₹450 Crores VC fund making it now, the single largest platform for seed & early stage, where entrepreneurs can raise from Rs. 25 lakhs to Rs. 50 crores (with co investors), thus making IAN the platform of choice – for both entrepreneurs & investors!

Walmart may 'Dis-Invest' in Flipkart As India's New Complicated FDI Rules Hinders Company's Profitability

Within a year after global retail giant Walmart had bought Flipkart for $17 billion, it is being reported that it could exit Flipkart, as the US retail firm does not see a long-term path to profitability, The Economic Times reported citing a Morgan Stanley report.

In a report dated February 4, Morgaon Stanley said, “an exit is likely, not completely out of the question, with the Indian e-commerce market becoming more complicated”.

Walmart isn't likely to consider divesting its stake in Flipkart, but at the end of the day it may be the right move if there is no longer a clear path toward achieving a profit in India, according to Morgan Stanley.

The Morgan Stanley report came after the new Foreign Direct Investment (FDI) rules for the e-commerce sector came into effect on February 1, post which not just Flipkart but Amazon has too has been impactedand saw a drop of around 25-35% in sales after having to re-arrange their seller entities where they held an equity stake.

Flipkart may need to scrap approximately 25% of its products from its site in light of the new rules. The smartphones and electronics category will feel an immediate impact because of the necessary changes which need to made in supply chains and existing exclusivity deals, said the brokerage report.

“We estimate that Flipkart derives 50% of its revenue from this category, meaning Flipkart could face meaningful disruption and top-line pressure in the near term,” it said.

A Walmart spokesperson told Economic Times, “Despite the recent changes in regulations, we remain optimistic about the e-commerce opportunity in India given the size of the market, the low penetration of ecommerce in the retail channel and the pace at which it is growing. As Walmart scales in India, the company will continue to partner to create sustained economic growth across agriculture, food and retail. Future investments will support national initiatives and will bring sustainable benefits to the country.”

Soon More Tax Reductions For Startups in India and Failed Startups Can Exit in 3 Months

Modi government seems to be pulling all stops to ensure that the burgeoning startup industry in the country remains on its path to success and doesn't gets sidetracked due to burden of unnecessary rules and regulations. In its latest dose of encouragement for the Indian startup industry, the government is considering further reduction in taxation for startups and a three months exit procedure for those ventures who have failed to take off.

Taking the podium at the India international MSME and Startup Expo 2017, Dr Jitendra Singh, Minister of Development for North-eastern state and Minister of State for Prime Minister Office Personnel revealed that the Indian central government is contemplating a new tax holiday, a temporary reduction or elimination of tax for new ventures with a three months exit window.

Currently, Inter-Ministerial Board (IMB) certified startups in the country are allowed a three-year tax exemption within the first seven years of their existence. The Union Budget for 2017-18 had allowed eligible startups to make use of their three-year tax holiday in a period of seven years instead of five years.

Closing a company in India is a task in itself. As of today, it takes an entrepreneur up to three years to close the final curtains on their venture as they require a court approval. The Modi government is now planning to cut down this waiting period to a maximum of three months.

The expo also saw Singh drawing the attention of state politicians towards helping startups with sustainability and urged the state departments to add value to the startup events. He said, “We waste resources by giving mementoes to each other and said many of them are given to the drivers or left in the car and are eventually wasted.”

He further added, if ministers used the resources for startup and SME events and motivate the youth of India to become entrepreneurial, we can preserve our environment.

Singh also took the opportunity to advise Indian startups to push the envelope and think out of the box and not follow the herd mentality, a trend being witnessed in startup industries all around the world.