{"id":36591,"date":"2024-04-27T02:20:57","date_gmt":"2024-04-27T02:20:57","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/04\/27\/startup-twists-and-other-top-tech-and-startup-stories-this-week\/"},"modified":"2024-04-27T02:20:57","modified_gmt":"2024-04-27T02:20:57","slug":"startup-twists-and-other-top-tech-and-startup-stories-this-week","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/04\/27\/startup-twists-and-other-top-tech-and-startup-stories-this-week\/","title":{"rendered":"Startup twists & turns on IPO street; and other top tech and startup stories this week"},"content":{"rendered":"
\"Startup<\/div>


\n<\/p>\n

Food and grocery delivery company Swiggy on Friday confidentially filed its draft documents for an initial public offering<\/a> (IPO) with stock market regulator Securities and Exchange Board of India (Sebi), sources told us.<\/p>\n
<\/div>\n

The Bengaluru-based company has filed for a $1.25-billion public issue through the confidential route, whereby draft red herring prospectuses (DRHPs) are not released to the public. This came a day after Swiggy\u2019s shareholders approved its IPO plan<\/a>, which includes a fresh share issue of Rs 3,750 crore ($450 million) and an offer for sale (OFS) worth Rs 6,664 crore ($800 million) by existing shareholders.<\/p>\n

\"Key<\/div>\n

On the flipside, FirstCry, an omnichannel retailer for baby and mother care products, is withdrawing its draft IPO papers<\/a>, after being pulled up by the regulator for inadequate disclosures in its key performance indicators (KPI). The SoftBank-backed company will update the papers with the latest financials, as of March 2024, and resubmit it for consideration.<\/p>\n

Also read | <\/span>Office-sharing startup Awfis gets Sebi nod for IPO<\/a><\/p>\n

The big picture:<\/span> What\u2019s happening with FirstCry is not entirely surprising. Several internet industry executives and bankers have told ET about the market regulator\u2019s increasingly cautious approach to disclosures. \u201cNot just FirstCry, recent new-economy IPO proposals over the last year faced the same scrutiny. Sebi wants to know all key business metrics as well as why is a company going for an IPO \u2013 what\u2019s the break up between fresh share issue and divestment from existing investors?\u201d a senior industry executive said.<\/p>\n

\u201cThis is not just for new-economy firms but the regulator wants the same information from all companies, so investors have the maximum amount of information before investing,\u201d the person added.<\/p>\n

Sebi\u2019s queries have led to companies shrinking their secondary share sale plans \u2013 especially after large IPOs like Paytm\u2019s led to massive losses for retail investors, these people said. <\/p>\n

FirstCry is eyeing $ 500 million (around Rs 4,163 crore)<\/a> from its planned IPO. However, the final size will hinge on the valuation they set for themselves during the offering.<\/p>\n

One investor said that the regulator wants access to all business information that\u2019s made available to shareholders of private companies. \u201cSebi\u2019s position is pretty clear, they want the smallest of details that private investors are privy to about the business.. which is why FirstCry has to refile.\u201d<\/p>\n

\n

Top Stories This Week<\/p>\n

\"Peyush<\/div>\n

Temasek, Fidelity may invest $200 million in Lenskart at $5 billion valuation: <\/span>Singapore\u2019s Temasek and US\u2019 Fidelity are in advanced discussions to invest<\/a> around $200 million in Lenskart through a secondary share sale at a valuation of about $5 billion, three people aware of the matter said.<\/p>\n

\"Top<\/div>\n

Lenskart\u2019s secondary sale is taking place at an 11-12% higher valuation than its previous $4.5 billion, setting it apart from other such transactions that typically close at a lower valuation.<\/p>\n

WeWork to sell 27% stake in India unit via Rs 1,200 crore secondary deal: <\/span>US office-sharing company WeWork Inc. is set to exit the Indian operations<\/a> by selling its entire 27% stake in the local unit through a secondary transaction. The estimated Rs 1,200 crore deal will also see Bengaluru-based property developer Embassy group pare its holding from 73% to 60%, said the people cited above.<\/p>\n

Mohit Gupta, Mukesh Bansal\u2019s omnichannel fashion startup Lyskraft raises $26 million in seed funding:<\/span> Former Zomato senior executive Mohit Gupta and Myntra founder Mukesh Bansal have raised $26 million in seed money<\/a> for their omnichannel fashion startup Lyskraft, making it one of the largest early-stage rounds for an Indian startup amid the ongoing funding crunch.<\/p>\n

PhonePe poured bulk of Rs 800 crore investments into insurance business: <\/span>Walmart-owned PhonePe has invested over Rs 800 crore<\/a> in its subsidiaries during the last year to grow businesses ranging from insurance broking to wealth management and hyperlocal ecommerce, regulatory filings show. More than half of this, or Rs 426 crore, went to PhonePe Insurance Broking Services \u2014 a clear indication of the payment firm\u2019s intention to build a large retail cover distribution business.<\/p>\n

\"PhonePes<\/div>\n

PhonePe is also restructuring its ecommerce strategy<\/a> on the Open Network for Digital Commerce (ONDC). It has exited several categories like fashion, grocery and electronics, but will continue to offer food delivery services on the network<\/p>\n

Startups shuffle top deck, play to ace long-term profitability game:<\/span> Over a dozen new economy ventures have appointed a new chief executive<\/a> over the last 12 months, as a greater focus on profitability and governance gains primacy across the sector.<\/p>\n

\"Corner<\/div>\n

Ather eyes new round, Nikhil Kamath buys big part of Sachin Bansal\u2019s holding: <\/span>Electric two-wheeler maker Ather Energy is in talks for raising a \u201csignificant round of funding\u201d<\/a> in a mix of primary and secondary share sale, said people with knowledge of the development. Existing investor, Flipkart cofounder Sachin Bansal, has sold a significant part of his holding in the company to Zerodha cofounder Nikhil Kamath, they said, adding that Kamath may buy out Bansal\u2019s remaining stake in the firm.<\/p>\n

\n

Fintech News<\/p>\n

\"RBI<\/div>\n

RBI tells online payments firms to track fishy transactions amid Lok Sabha elections:<\/span> The Reserve Bank of India has directed all regulated payment companies<\/a> to track high-value or suspicious transactions during the course of general elections, according to multiple senior executives in the know.<\/p>\n

Govt teams up with SBI Cards, telcos to combat OTP frauds:<\/span> India\u2019s home ministry, SBI Cards and Payment Services Ltd (SBI Card) and telecom operators have partnered to develop<\/a> an innovative solution for alerting about stolen one-time passwords as part of a broader effort to combat the growing threat of cyber fraud and phishing attacks on the banking ecosystem.<\/p>\n

\n

IT Updates<\/p>\n

\"Tech<\/div>\n

Tech Mahindra Q4 net profit down 41% to Rs 661 crore; revenue tanks 6.2%: <\/span>Tech Mahindra, country’s fifth largest IT services firm, reported a decline in net profit of 40.9%<\/a> year-on-year (YoY) to Rs 661 crore primarily driven by slowdown in its telecom, communications, media and entertainment business, which is its largest vertical with 36.5% market share.<\/p>\n

HCLTech Q4 net profit rises marginally to Rs 3,995 crore:<\/span> IT major HCL Technologies on Friday reported a net profit of Rs 3,995 crore<\/a> for the quarter ended March 31, 2024. This was marginally higher by 0.35% as against Rs 3,981 crore reported in the year-ago period. <\/p>\n

LTIMindtree Q4 profit falls 1.2%, revenue edges up:<\/span> India’s sixth-largest IT services firm LTIMindtree reported a 1.2% YoY decline<\/a> in net profit at Rs 1,100 crore for the March quarter of the financial year 2024 missing street estimate of Rs 1,150 crore. The profit stood at Rs 1,114 crore a year ago.<\/p>\n

Also read |<\/span> Top IT firms saw wage bills rise 5.5% even as revenue growth dips<\/a><\/p>\n

With $11 million exit pay, Delaporte joins other CEOs in costly exits: <\/span>Outgoing Wipro CEO Thierry Delaporte is set to get a separation payment of Rs 92.1 crore<\/a> (or about $11 million) after his ahead-of-schedule exit from India’s fourth-biggest outsourcing company, joining a swelling list of top executives in the country’s most globalized industry to have inked iron-clad job contracts that guarantee hefty severance packages.<\/p>\n<\/div>\n


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Food and grocery delivery company Swiggy on Friday confidentially filed its draft documents for an initial public offering (IPO) with stock market regulator Securities and Exchange Board of India (Sebi), sources told us. The Bengaluru-based company has filed for a $1.25-billion public issue through the confidential route, whereby draft red herring prospectuses (DRHPs) are not […]<\/p>\n","protected":false},"author":2,"featured_media":36592,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","fifu_image_url":"https:\/\/img.etimg.com\/photo\/msid-109632936\/Swiggy%20IPO%20THUMB%20IMAGE%20ETTECH%204.jpg","fifu_image_alt":"","footnotes":""},"categories":[607],"tags":[6254,26955,2799,6564,9136,7139,2293,403,476,14690,2416,1846,5342,39500,1513],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/36591"}],"collection":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/comments?post=36591"}],"version-history":[{"count":1,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/36591\/revisions"}],"predecessor-version":[{"id":36593,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/36591\/revisions\/36593"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media\/36592"}],"wp:attachment":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media?parent=36591"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/categories?post=36591"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/tags?post=36591"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}