The Arc

🚨 Zopper’s insurance broking business drives 170% growth 1️⃣ Insurtech platform Zopper boosted its operating revenue by 170% to Rs 439 crore in FY24, according to filings with the ministry of corporate affairs (MCA). Total income stood at Rs 448 crore. 2️⃣ The growth was driven by its key subsidiary, Zopper Insurance Brokers, which accounted for 90% of the group’s consolidated revenue. The subsidiary, an insurance brokerage with a licence from industry regulator IRDAI, recorded operating revenue of Rs 396 crore in FY24, a 35X increase from Rs 11 crore in the previous year. It made a small profit of Rs 30 lakh. 3️⃣ Earlier this month, venture funds Elevation and Dharana Capital infused $25 million into the company as part of its Series D round at a valuation of $182 million. The valuation has increased by nearly 88% from the previous round in 2022. Article link below 👇

📣 QUICK-READ [6-min]: Mintifi For the longest time, investors have shied away from software-as-a-service (SaaS) ventures that focus on the domestic market. Why? The product-led growth of SaaS has demonstrated a better return from foreign markets. But what if there was a fantastic product that was relevant to India? ✅ It would still require a unique go-to-market (GTM) strategy, ✅ It needed to create customer stickiness, ✅ It would need to monetise not the product - but something else. In my The Arc feature today, I look at how Mintifi, a supply chain financing company in India's consumer economy, has ticked the above boxes. 📌 Its technology product is used by 300+ enterprises in FMCG, pharma, kitchenware and consumer durables, 📌 It has demonstrated scale by having 25,000 active distributors on its platform, 📌 And it monetises via its NBFC Mintifi Finserve. It took me time to understand the business model, given the nuances, but it was worth it. Little wonder, Mintifi is valued at $850 million in its latest funding round. For the detailed story, click here: https://lnkd.in/gq5nQDSh And for the Company Arc, find the link in the comments. Have a nice day!

🚨 IFC, Lok Capital book hefty returns on early Mintifi bet 🤑 1️⃣ Lending startup Mintifi, which primarily focuses on supply chain financing, closed a Series E round of $180 million in mid-November, reaching a valuation of $850 million. 2️⃣ First backer, Lok Capital, sold its entire stake in the round. It cashed out an estimated Rs 750 crore on a total investment of Rs 68 crore, which translates into a return of 11X.   3️⃣ Another early investor, IFC, made a partial exit with 11X gains. IFC’s stake now stands at 12%. In addition to the early-stage investment, it participated in the Series D deal in May 2023.   4️⃣ Mintifi’s business revolves around providing financing to distributors and other supply-chain allies of large consumer-facing companies, including FMCG brands. Link in comments 👇

🚨 SolarSquare plans 50-city push after $40-m Lightspeed round ☀️ 1️⃣ SolarSquare, which provides rooftop solar systems for mainly residential buildings, has secured $40 million (Rs 338 crore) in Series B funding. This is the largest round of venture capital raised by an Indian solar startup. Lightspeed led the transaction, which also saw participation from Lightrock and existing investors. 2️⃣ SolarSquare initially catered to only corporate clients such as Reliance, D’Decor and TVS Motors before turning focus to households in a recent pivot. Currently, consumer sales drive over 90% of its business. 3️⃣ While the company procures most of the components for solar installation, module mounting structures that hold solar panels in place are developed in-house. These structures are designed to withstand extreme weather like cyclones and storms. The average lifespan of a solar setup is 25 years. 4️⃣ The company’s B2C base comprises more than 20,000 residential customers and over 200 cooperative housing societies across 20 cities. Maharashtra and Madhya Pradesh are its top regional markets. Article link in comments 👇 #cleantech #energy #funding #startups #solar #renewables

🚨 IPO: BlueStone seeks valuation premium over Titan, Kalyan 💎 1️⃣ BlueStone has filed for an initial public offering and is expected to raise Rs 1,000 crore in primary capital. The omnichannel jewellery retailer is reportedly eyeing a post-money valuation of at least Rs 12,000 crore, which will represent a nearly 50% premium over its most recent worth of Rs 8,100 crore. 2️⃣ BlueStone, a venture-backed startup founded in 2011, is seeking a premium valuation multiple that would position it above stock-market favourites Tata Group’s Titan and Kalyan Jewellers. 3️⃣ The two incumbents, however, generate 10 to 40 times the revenues of BlueStone and have a well-established record of profitability. BlueStone is still nursing losses. Article link in comments 👇

🚨 Credgenics, Spocto X and the race for debt collection 1️⃣ Credgenics provides tools for digital debt collection and resolution to lending institutions, from banks and NBFCs to fintechs, in a market estimated to be $9 billion in size. 2️⃣ The software company grew its operating revenue by 66% to Rs 135 crore and logged a profit of Rs 8.4 crore in FY24. In the previous year, its total income rose by 173%. 3️⃣ After being a leading platform in the debt resolution space, Credgenics now faces stiff competition from Spocto X, the venture owned by debt marketplace Yubi. Spocto X’s gross revenue jumped by over 70% to around Rs 130 crore in FY24, and it is expected to double this figure in the current fiscal year. 4️⃣ Both companies are building GenAI-powered applications to mobilise field collection agents. While Credgenics functions with an asset-light model, the question is whether it has a strong moat. Article link in comments 👇 #fintech #startups #lending #loans #collection

🚨 Investors pile into early-stage AI apps, dev-tools startups 1️⃣ Prominent VC houses in India, including Accel, Lightspeed, Prime Venture Partners, and Peak XV Partners are lining up investments in artificial intelligence-based applications and developer tools across businesses and consumer segments. They foresee companies in these sectors defending their market positions and producing major returns. 2️⃣ Several deals are currently in advanced stages of negotiation. The Arc spoke with people close to the developments to identify some of the most interesting ones. 3️⃣ Atomicwork, which streamlines IT service management and enterprise workflows, is speaking with Khosla Ventures to secure $25 million in funding. In 2022, the startup raised $14 million from Blume Ventures, Z47, and other investors. 4️⃣ Soul AI is raising $5-7 million from Accel. It curates hyper-specific datasets and provides expert reinforcement learning from human feedback for training of large language models, or LLMs. Article link in comments 👇 #AI #startups #LLM #venturecapital #funding

🚨 KKR set to join Rebel Foods’ mega round as Coatue, Peak XV exit 1️⃣ Rebel Foods, which runs cloud kitchen brands like Behrouz Biryani and Faasos, is advanced discussions to get an additional $50-70 million from private equity major KKR, according to two people familiar with the matter. The fresh round will be primarily a secondary share sale by existing investors. 2️⃣ This is over and above the $210 million round announced by Singaporean sovereign fund Temasek on Thursday, taking the total fundraising to $260-270 million. Rebel Foods was last valued at $1.4 billion in 2021. 3️⃣ “Both KKR and Temasek have done a largely secondary deal. The primary component of the transaction is less than $60-70 million, which has happened at a flat valuation. Secondaries are typically at a 30-40% discount,” said a person in the know. Article link in comments 👇 #fooddelivery #rebel #cloudkitchen #restaurants #funding #growth

🚨 Softbank-backed Oyo raises $825 mn term loan from Deutsche Bank 1️⃣ Hospitality company Oyo is raising $825 million in a senior secured term loan arranged by Deutsche Bank. This fresh loan comes after Oyo raised $175 million in equity earlier this year and is in the process of raising $65 million. 2️⃣ Softbank-backed Oyo raised a $660 million term loan B (TLB) in June 2021, out of which the remaining $446 million has to be repaid by 2026. Part of the new loan will be used to completely pay off the TLB, besides the $525 million (Rs 4,414 crore) all-cash deal to buy Motel 6. 3️⃣ Combined with earlier debt repayment and a new loan repayment, OYO's interest expense will decline to around $65-70 million in FY25 from $101 million in FY24, according to rating agency Moody’s note. 4️⃣ Oyo is expected to refile its initial public offering (IPO) documents with SEBI after refinancing Term Loan B (TLB) at a lower interest rate. The company pulled out of its IPO filing earlier this year, which was its second attempt to go public. Link in comments #oyo #sharktank #loan #debt #TLB #hospitality #acquisition #funding #refinancing #IPO

🚨 Mobikwik’s IPO valuation drops to $256 mn from Unicorn status 🦄 1️⃣ As it launches its initial public market offering, fintech company Mobikwik will see its valuation drop by over 68%, from Rs 6,900 crore ($820 million) in 2021 to Rs 2,167 crore ($256 million). 2️⃣ Mobikwik is looking to raise Rs 572 crore ($68 million) through the IPO, which is set to open on December 11 and close on December 13. The company has set a price band of Rs 265-279 for the issue, which is a primary offering with no offer for sale (OFS) component. 3️⃣ Mobikwik had originally filed to go for an IPO in 2021, seeking to raise Rs 1,900 crore. But earlier this year, the company refiled the documents, saying that it wants to raise Rs 700 crore in primary capital. Article link in comments #fintech #payments #lending #startups #mobikwik #paytm #ipo