Tag: Startups

Corporate Affairs Ministry to release new regulations for unlisted startups in three months

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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In response to growing concerns surrounding bigger unlisted companies like Paytm Payments Bank and ed-tech startup Byju’s, the Company Law Committee (CLC) is set to release a comprehensive report outlining new regulations tailored for larger unlisted startups. Sources from the Ministry of Corporate Affairs (MCA) indicate that the report is expected within the next three months.

MCA has also asked the Registrar of Companies (ROC) to expedite the inspection of Byju’s. However, MCA officials said that they are not involved in the Paytm Payments Bank matter as it is being dealt with by the competent authority, i.e. RBI.

The CLC has been working on making the regulatory environment better and transparent for larger startups for a year now. The focus includes formulating a clear definition for larger startups, with considerations such as net worth, capital raised, and turnover forming the basis of this classification. The intent is to establish a robust framework, incorporating extra measures to ensure the governance and accountability of significant startups.

The forthcoming report by CLC is anticipated to outline provisions aimed at enhancing control for both investors and board directors within these startups. This move underscores a commitment to bolstering transparency and accountability in the startup ecosystem. CNBC TV-18 had reported last year that the MCA was contemplating the inclusion of quarterly reports by larger startups as part of regulatory measures for more effective oversight.

In an effort to gather comprehensive insights, the MCA has sought feedback from key professional bodies, namely the Institute of Chartered Accountants of India (ICAI) and the Institute of Company Secretaries of India (ICSI).

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

TCS CEO bullish on Indian startup ecosystem, shares strategic approach to acquisitions

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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K Krithivasan, Chief Executive Officer (CEO), Tata Consultancy Services (TCS), remains bullish on the Indian startup ecosystem, highlighting the potential and creativity prevalent within the sector.

“The number of all these billion-dollar valuation unicorns that you see in India is increasing, so that definitely is an important hope. The kind of creativity people come in with, I’m completely bullish on the Indian startup scenario,” he told CNBC-TV18 at the Nasscom Technology & Leadership Forum.

Krithivasan also addressed TCS’s approach towards mergers and acquisitions (M&A), outlining the company’s discerning criteria. He noted that while TCS actively explores M&A opportunities, its standards remain high, focusing on achieving a multiplier effect through synergies with existing talent rather than simply bolstering revenue. This selective strategy has resulted in a smaller number of M&As for TCS, but those undertaken have been notably successful.

On potential M&A ventures within the startup ecosystem, Krithivasan struck a cautious tone. While acknowledging TCS‘s interest in acquiring complementary capabilities, he talked about the importance of preserving the innovative spirit of startups.

“We have a unit called Co-Innovation Network that constantly looks at startups not only in India but across the world. We help them scale by introducing them to our customers. We show them the problems that are solvable. So, that’s our approach. I think that you can work together very well with them than just acquiring them,” he added.

Reflecting on TCS’s operational approach, Krithivasan described it as resembling a “big, small company,” with an emphasis on agility and autonomy within individual client units. He underscored the company’s commitment to maintaining a startup mindset, even within a large organisation, by encouraging small units to operate independently while leveraging TCS’s scale and resources.

Also Read: Work From Home eliminates ‘important learnings from colleagues, seniors,’ says TCS CEO

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Pocket FM launches Pocket Novel, aims to become India’s largest online reading platform

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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With an aim to build India’s largest online reading platform and the default destination for the Indian writers’ community, audio series platform, Pocket FM has launched Pocket Novel.

The venture has also announced an investment of $40 million to bolster its presence in the literary landscape. With Pocket Novel, Pocket FM begins diversifying across various entertainment categories and formats, with a focus on developing its IP playbook.

Pocket Novel aims to discover and promote unique stories while fostering a platform that creates opportunities for writers across India and enables them to earn a sustainable income from their craft.

With the global market projected to exceed $6.5 billion by 2028, the venture says India is poised to emerge as the fastest-growing market in this space, presenting a promising opportunity for Pocket Novel. Pocket Novel is aiming to exceed the $100 million Annualised Revenue Run Rate worldwide by 2025.

Commenting on the launch of Pocket Novel, Rohan Nayak, Co-founder and CEO, Pocket Novel said, “We are building an ecosystem that shapes the essence of entertainment which specialises in discovering and distributing unique and unheard stories. These are adaptable across formats and geographies, creating a robust model with millions of audiences. Leveraging our learnings from our successful audio series trajectory, we remain steadfast in our commitment to cultivating a dynamic entertainment ecosystem. Our IP creation engine is designed to produce and disseminate content across diverse categories and brings disruption in the entertainment landscape.”

Pocket Novel in its beta-phase

The platform has witnessed its writers’ community flourished to over 150,000 writers with the top-performing writers earning impressive incomes, with some exceeding $2500 every month. The company intends to continue its journey towards consolidating the aspirations of the writers on its platform and envisions building a community of 1 million writers and strengthening its library to 2 million novels by 2025.

The venture says, readers’ engagement on the platform is consistently high, with an average daily reading time surpassing 100 minutes and the popular genres span across romance, drama, suspense, fantasy, and sci-fi genres.

22-year-old MBA Moni Singh, the writer of Devil Se Shaadi, turns out to be the top earner with over $3000 monthly average earnings, followed by other leading writers like Cerica (alias Jigyasa), Kavya Sharma and many more.

ALSO READ | Vibhor Steel shares list at 181% premium to IPO price — should you hold or book profit?

Speaking about her experience with Pocket Novel, she said, “Since I embarked on my writing journey with Pocket Novel, I have discovered a strength and passion for storytelling. Throughout the process of trial and error as continuous learning, I have evolved into a better writer. My successful novel ‘Devil Se Shaadi’ which also became a blockbuster on Pocket FM has resonated well with my audience. Their love and support kept me motivated and encouraged me to bring more enthralling scripts to them. Pocket Novel not only provided wings to my stories but has always been a supportive force.”

During its beta phase, more than 2% of novels have garnered over 500,000 reads, and over 5% have exceeded 100,000 reads. The platform’s revenue has already grown 500% in 2023 and is set to reach $100 million ARR by 2025. In 2023 alone, readers made over 1 million transactions on the platform for purchasing the entire novels or certain chapters, written by its writers community.

Together, Pocket Novel and Pocket FM want to revolutionise the way stories are found, shared, enjoyed, and appreciated.

ALSO READ | Zaggle shares have nearly doubled from their IPO price—Should you buy now?

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

NIIF invests $25 million in a Bengaluru investor that backs RenewBuy and Capital Small Finance Bank

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The seven-year-old Amicus Capital, which invested early in companies like the insurance aggregator RenewBuy and microfinancier Capital Small Finance Bank, has raised another ₹207 crore (about $25 million) from the National Investment and Infrastructure Fund (NIIF).

The Bengaluru-based private equity firm currently has $259 million worth of assets under management across two funds. Capital Small Finance Bank was listed at an 8% discount to its IPO price on February 14.

The latest fundraising will take Amicus’ second closer to its target of $200 million, which will be invested in growth-stage companies from speciality manufacturing, technology and business services to healthcare and financial services, a press statement said.

“Including NIIF’s commitment, our second fund has raised $171 million (about ₹1,415 crore) as of today,”  Mahesh Parasuraman, the co-founder and partner at Amicus Capital, said. This investment from NIIF will come from the $100 million fund of funds set up in 2021.

The state-initiated NIIF, which has committed over $4.9 billion in investments through four funds, has bet on at least 50 companies in the private markets. NIIF is also backed by the Asian Infrastructure Investment Bank (AIIB) and the Asian Development Bank (ADB), among others.

Some of NIIF’s investments include a new airport in Andhra Pradesh and a highway from Jammu to Udhampur, among others.

Private market investments are those that aren’t traded on any public exchanges.

ALSO WATCH: The Rise of India’s Private Equity and Credit Market

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

‘There is mental illness in every home today,’ says co-founder of a mental health startup

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The COVID-19 pandemic normalised conversations around mental health but access to care is still an issue.

“Around 200 million people suffering – today it is in every home, whether it is domestic violence, abuse, digital addiction, relationships being strained or any kind of mental illness,” Neha Kirpal, the founder of Amaha, an Indian platform for therapy, psychiatry and counselling services.

She was speaking to CNBC-TV18 on the sidelines of ‘Future Female Forward – Season 2′.

As per the World Health Organization (WHO), the estimated burden of mental health problems in India is 2,443 disability-adjusted life years per 10,000 population, while the age-adjusted suicide rate for is 21.1 for every one lakh population.

Between 15-29 age group, suicide is the fourth leading cause of death. The estimated the economic loss due to mental health conditions at $1.03 trillion between 2012-2030.

Neha Kirpal, winner of the President’s Nari Shakti award, joined Amaha as a co-founder in 2019. The organisation was founded in 2016 by Dr Amit Malik. “Awareness is not a challenge, for us the idea was to help people see that they can get quality credible mental healthcare under one roof, so that they don’t waste time going pillar to post seeking that help,” Kirpal added.

Amaha has been valued at around ₹177.2 crore (about $21 million) after raising about $10 million from marquee investors like Lightbox Ventures and Hitesh Oberoi among others, according to an Entrackr report in January 2024.

Kirpal pivoted to her venture in the mental healthcare after founding and running India’s first international art fair for a decade.

Her consulting venture, Librum Ltd, was recently launched in the UK as the world’s first strategic think tank for mental health solutions. She is also the co-founder of InnerHour, which aims to improve mental healthcare access.

As a trained counsellor and mental health caregiver, Kirpal has fellowships from the Aspen Global Leadership Network and the Eisenhower organisation. Also, she is part of the World Economic Forum’s Young Global Leaders community.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Byju’s tells investors: “You’ve no right to ask for a change in CEO”

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Byju’s on Friday (February 2) expressed “sorrow” at statements from a select few investors, who have called for an extraordinary general meeting (EGM) to replace founder and group CEO Byju Raveendran.

In its response, the edtech company has slammed the demand, saying that the investors have no right to vote on CEO or management change. The response comes just a day after the investors said an EGM should be held urgently to resolve outstanding governance, financial mismanagement and compliance issues—along with a change in the leadership of the company.

The investors have also called for the reconstitution of the board of directors—saying that Byju’s founders have been controlling the board since three investors quit the board and walked out in June 2023.

Signatories to the EGM notice include Prosus, General Atlantic, Peak XV, Sofina, Chan Zuckerberg, Owl, and Sands, according to sources. These investors collectively represent nearly 30% of the shareholders of the edtech company. The EGM was called on February 23, a person directly aware of the development told CNBC-TV18.

In June 2023, the representatives of its key investors Prosus, Peak XV Partners, and Chan Zuckerberg Initiative resigned from the board due to differences with the founders. The current board of directors of BYJU’s parent T&L comprises Byju Raveendran, co-founder, and wife Divya Gokulnath, and his brother Riju Raveendran.

The stand-off between Byju’s and some of its investors has come to the fore soon after the company launched a 200 million dollar rights issue at a post-money valuation of $225 million — and the firm has said that despite the criticisms of a few investors, it will go ahead with it.

“TLPL will continue with the proposed $200 million rights issue after receiving encouraging responses from multiple investors. The company is gladdened by the support received by a wide section of its shareholders,” it said in a statement.

“The criticality of the rights issue has been shared with all shareholders, with capital being pivotal for a successful turnaround. Unfortunately, the company and our employees are paying the price for a stand-off triggered by some investors. Business continuity is essential, and we shall priorities this in our actions,” the statement added.

The company has also said Byju Raveendran and his leadership team, along with the advisory board consisting of Rajneesh Kumar and Mohandas Pai, have constituted a working group with the investors and have been providing updates on all crucial matters.

“The company and its leadership have updated the working group on all crucial matters, including ongoing business restructuring, financial position, and audits. TLPL has been turning around the business, cutting the monthly burn to near operational breakeven, and working on an AI-led technological refresh soon. In context, the actions of some unnamed investors are disruptive at a highly challenging time,” Byju’s said.

Remember — Byju’s clocked nearly one billion dollars in losses in FY22 and the FY23 audit is still awaited. In a filing with the Ministry of Corporate Affairs, the company said it clocked a 2.18x increase in revenue from ₹2,428 crore in FY21 to ₹5,298 crore in FY22.

Losses ballooned 1.8x from ₹4,564 crore in FY21 to ₹8,245 crore in FY22. This translates into an EBITDA loss of ₹4,599 crore in FY22 from ₹8,370 crore in FY21. Expenses went up 2x from ₹7,027 crore in FY21 to ₹13,668 crore in FY22.

Embattled edtech company Byju’s has not yet paid salaries for January amid a worsening liquidity crisis, as per reports. Not just that, a US unit of Byju’s has filed for Chapter 11 bankruptcy proceedings in the US court of Delaware, listing liabilities in the range of $1 billion to $10 billion.

Byju’s Alpha unit listed its assets in the range of $500 million to $1 billion, according to a court filing, which showed estimated creditors in the range of 100 to 199.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Nurturing small business innovation: Dell’s commitment and entrepreneur challenge

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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In the dynamic entrepreneurship landscape, innovation is the driving force, and Dell Technologies is at the forefront of advocating for this spirit. Within this universe, Dell recognises the pivotal role played by startups in shaping the future and actively supports their growth with a dedication that goes beyond products and partnerships.

The company exemplifies its commitment through the Dell Entrepreneur Challenge, a competition that empowers startups with a vital platform to showcase innovative solutions. This initiative not only offers exposure but also opens doors to mentorship and networking opportunities. Participating startups gain valuable resources and recognition, propelling their journey to the market.

In the run-up to the Dell Entrepreneur Challenge, Samriddhi Bhattacharyya, Country Head, Small Business Solutions, Dell Tech shared the vision for the competition in a candid interview with CNBC-TV18’s Gautam Srinivasan. Their discussion also delved into Dell’s efforts in enabling and mentoring small businesses, setting the stage for the upcoming Entrepreneur Challenge.

In India, the Micro, Small, and Medium Enterprises (MSME) sector, which consists of approximately 63 million enterprises, holds immense potential for driving economic growth. Frontrunners and aspiring enterprises amongst them are swiftly transitioning from traditional offline operations to embracing the online realm, as they appreciate the significance of technology in meeting their growth aspirations.

Samriddhi Bhattacharyya highlighted the opportunities in the startup space, which has been growing at approximately 7.2% per annum in recent times. Post-COVID, a wave of new-age start-ups has joined the MSME universe, with innovation fuelling their growth. The advent of technologies like AI and ML has provided these businesses with significant leverage, enabling them to scale up and tap into global markets.

However, in the Indian context, she pointed out that small and medium startups face challenges stemming from digital illiteracy. While they demonstrate a knack for finding economical solutions, access to digitisation becomes a key hurdle. Dell addresses this by serving as a reliable technology partner, offering tailor-made solutions and leveraging its experiences, which date back to 1984. The company provides mentorship within its ecosystem, featuring industry experts and in-house specialists who guide start-ups through the tech landscape.

Going further, Dell Technologies has launched various initiatives to facilitate entrepreneurs. For instance, ‘Dell for Startups’ entails a team of experts trained to help start-ups scale up, which offers mentorship sessions and workshops, to help startups identify challenges and overcome them, guiding startups through their journey. Dell also recognises the under-representation of women in the segment and addresses this through the DWEN (Dell Women’s Entrepreneur Network) for women in business. This program creates a supportive community, offering access to capital, tech resources, and fostering growth.

Other initiatives by Dell include the DWEN Dream Tech Challenge, Empower Hour, and TechTalks, to empower female entrepreneurs and envision additional innovations for their businesses. While it hosts contests to enable entrepreneurs to showcase their businesses, forge networks and gain better visibility, it also provides winners with the necessary technology and initial seeding to scale up their IT environments.

Dell aims to define the future with technology, working continuously with start-ups and innovative companies. The Dell Entrepreneur Challenge, which merges the DWEN Dream Tech Challenge and the Dell Startup Challenge, invites Series-A and pre-Series-A startups to showcase innovations and stand the chance to gain access to mentorship, networking opportunities, and tech investments.

The Dell Entrepreneur Challenge is a tangible demonstration of Dell’s role in shaping the future of technology and fostering entrepreneurship. This holistic approach by Dell is not merely a platform; it is a springboard driving progress and innovation for small start-ups across India. Summing up the initiative, Samriddhi Bhattacharyya remarked, “The Dell Entrepreneur Challenge equips businesses with the tools, experience, and expertise to transition to the next phase of growth, embodying Dell’s commitment to advancing human innovation.”

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Government to meet unicorns tomorrow to discuss growth trajectory, risks, capital mobilisation

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Union Minister for Commerce and Industry Piyush Goyal is slated to meet representatives from over 40 unicorns in New Delhi on Wednesday, January 17, to discuss the growth trajectory and plans of mobilisation of domestic capital for the larger startup ecosystem.

Car Dekho, EasyMyTrip, Zerodha, Lenskart, and boAT are among the companies expected to be present in the meeting, which will discuss issues such as navigating risks for startups, sustainable growth, and India’s positioning in the global startup landscape.

The meeting was preceded by the DPIIT Startup Awards and the State Ranking Awards, which were given on Tuesday by the minister. In its fourth edition, the  (NSA) received 2,324 applications, 38% more than the applications in its maiden edition.

Around 58% of the current applications came from emerging Tier-2 and Tier-3 cities, while 40% of the unique startup winners were from emerging Tier-2 and Tier-3 cities.

Maximum applications were received from startups in Maharashtra, followed by Karnataka, Tamil Nadu, and Uttar Pradesh, and 20% of startup applications nominated themselves with women in the leadership positions of their enterprise.

The current edition of the NSA witnessed applications from startups across 19 categories, with an introduction of category-wise applications across various sectors based on the response received in special categories (special categories in NSA 2022 were increased to 7 from 3 and 6 special categories in NSA 2020 and 2021, respectively).

While NSA applications were received from 23, 30, and 31 states and union territories in the 2020, 2021, and 2022 editions, respectively; NSA 2023 witnessed applications from all 36 states and union territories.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Karkhana.io raises $6.3 million in a Series A funding round

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Business-to-business (B2B) custom manufacturing platform Karkhana.io has raised $6.3 million in a Series A funding round led by Arkam Ventures and Susquehanna Asia Venture. The funding round also witnessed participation from existing investor Vertex Ventures Southeast Asia and India.

According to the startup, the fresh funds will be used to fuel the expansion of its supplier base, establish a robust electronics supply chain, and drive scaling efforts in the US and Europe.

“This funding extends beyond growing our platform; it’s a dedication to fortifying India’s MSME (medium, micro, and small enterprise) ecosystem. We want to create a significant impact in sectors with expansive growth potential, addressing surging demand and propelling Karkhana.io to redefining the landscape of the Indian manufacturing industry,” said Sonam Motwani, Founder and CEO, Karkhana.io.

Founded in 2018, Karkhana provides sourcing and contract manufacturing solutions to original equipment. manufacturers (OEMs) and tech companies through its manufacturing MSME network.

Also read: How Indian markets value new-age tech companies is no longer a puzzle: RTP Global’s Nishit Garg

It works with OEMs across product categories like electric vehicles, medical equipment, consumer electronics and aerospace among others. The platform claims to have a supplier network of over 400 MSMEs and is looking to tap 3,000 suppliers in the next three years.

As per Karkhana, India’s manufacturing sector is expected to be worth $1 trillion by 2025-26, and contributions from MSMEs will be pivotal in achieving this lofty goal. Factors such as competitive pricing, extensive labour pools, rising domestic demand and geopolitical considerations such as the China Plus Pne strategy place India as a manufacturing destination for the world. If equipped with the right resources, India’s 63 million-strong MSME ecosystem has the potential to become an integral part of the manufacturing supply chain for global businesses, the firm added.

“India’s manufacturing MSMEs account for 45% of industrial output and 40% of all exports. While there is a surge in domestic and international demand from OEMs, most small suppliers are poorly equipped to tap into new order flows, market their capabilities and find ways to maximize their capacity utilization. We were attracted to a strong Karkhana.io team that provides a differentiated technology platform addressing these challenges while enabling a much-needed layer of trust, efficiency, and quality,” said Bala Srinivasa, Managing Director, Arkam Ventures.

Also read: Startup founders have learnt to prioritise fundamentals over growth, says Good Capital’s Rohan Malhotra

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow