{"id":40658,"date":"2024-05-02T01:34:05","date_gmt":"2024-05-02T01:34:05","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/05\/02\/innovaccers-new-funding-round-ondcs-logistics-push\/"},"modified":"2024-05-02T01:34:05","modified_gmt":"2024-05-02T01:34:05","slug":"innovaccers-new-funding-round-ondcs-logistics-push","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/05\/02\/innovaccers-new-funding-round-ondcs-logistics-push\/","title":{"rendered":"Innovaccer\u2019s new funding round; ONDC\u2019s logistics push"},"content":{"rendered":"
\"Innovaccer\u2019s<\/div>


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Happy Thursday! SaaS startup Innovaccer is in discussions to raise funding at $3 billion valuation. This and more in today\u2019s ETtech Morning Dispatch.<\/p>\n

Also in this letter:<\/span>
\u25a0 Companies help employees amid the heatwave
\u25a0 Former BharatPe COO launches venture fund
\u25a0 Ecom Express posts spike in FY23 revenue<\/p>\n

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Kaiser Permanente may steer $250 million funding in SaaS unicorn Innovaccer<\/p>\n

<\/div>\n

Software-as-a-service (SaaS) startup Innovaccer is in the middle of raising a $200-250 million funding round <\/a>led by US health and insurance major Kaiser Permanente, sources told us. <\/p>\n

Deal details: <\/span>The primary round of funding is likely to take place at a flat valuation of $3 billion, while the secondary share sale may come through at a lower price, according to people briefed on the matter. \u201cThe blended valuation would be around $2.5 billion,\u201d a person aware of the matter said.<\/p>\n

\"Investment<\/div>\n

Tell me more:<\/span> UAE’s Mubadala Capital\u2013an existing investor\u2013will also participate in the new round at Innovaccer, which entered the unicorn club with a valuation of $1.3 billion in February 2021. In the same year in December, it raised another $150 million led by Mubadala, more than doubling its unicorn round valuation.<\/p>\n

Why it matters:<\/span> The almost flat valuation underscores the changing revenue multiples investors are willing to ascribe now. From a peak of 30X of revenue in 2021, valuations are now trending between 10-15X. According to Bessemer Venture Partners Nasdaq emerging cloud index, listed SaaS companies have a market capitalisation of around 7.1X of their revenue. The index \u2013 which measures various parameters of cloud software firms \u2013 average revenue growth is under 20%.<\/p>\n

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ONDC’s first buyer side logistics app MP2 to help fix delivery issues<\/p>\n

\"MP2<\/div>\n

Open Network for Digital Commerce (ONDC), the government-backed ecommerce network, has approved the first logistics buyer side app<\/a> that will aim to solve one of the biggest sore points of online shopping through the network \u2013 logistics.<\/p>\n

Driving the news:<\/span> MP2 Innovations will be the first buyer side app for logistics on ONDC through which participants can tap into existing delivery fleets on the network to access the best available delivery fleet through a single API instead of tying up with individual logistics companies, sources added.<\/p>\n

What\u2019s MP2? <\/span>MP2 Innovations has been set up by Mahesh Herle\u2013who previously cofounded hyperlocal delivery startup Goodbox. Herle told ET that the final approval for MP2 Innovations as Technology Service Provider (TSP) came through on Wednesday and it should be able to launch its services soon on the network. It has already partnered with logistics firms like Loadshare and Zypp while more hyperlocal delivery partners are being added as well. The app should go live next week, he said.<\/p>\n

The big picture:<\/span> We reported that the likes of PhonePe exited ecommerce on ONDC due to issues <\/a>cropping up around consumer experience. This is primarily because of failing and delayed deliveries. Large ecommerce players haven\u2019t been keen to integrate the ONDC network onto their core marketplace. <\/p>\n

On april 29, ET reported that the Centre had asked Amazon and Flipkart to set up ONDC storefronts on their home pages<\/a> to help the government-backed network scale operations and assist with deliveries, according to people in the know. The aim is to boost operations and order efficiencies as well as iron out glitches and delays on ONDC, they told ET.<\/p>\n

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Companies pull out all stops to ensure staff well-being amid heatwaves<\/p>\n

\"IT<\/div>\n

With much of India enduring a sweltering summer, IT services firms and manufacturing companies are leaving no stone unturned to ensure employee well-being. <\/a><\/p>\n

What’s happening: <\/span>Companies are taking measures such as stocking up on refreshments, having doctors on-site, conducting webinars on ways to beat the heatwave, and offering flexible work hours.<\/p>\n

Also read |<\/span> Sales glut, sweat and tears: For ecommerce, heat wrings out the worst of worries<\/a><\/p>\n

Firms are nudging employees to boost water intake, limit commuting during the hottest time of the day and avoid terraces or open food courts at offices. And all this at a time when companies have turned stringent in getting employees to return to offices post pandemic.<\/p>\n

Measures undertaken:<\/span><\/p>\n