PhysicsWallah, a prominent Edtech startup, has gone public in anticipation of its 2025 initial public offering (IPO). A resolution to rename the edtech unicorn from PhysicsWallah Private Limited to PhysicsWallah Limited, a public business, was passed by the board earlier this month. In a regulatory filing, the company stated, “… the board of directors of the company be and is hereby accorded to change the name of the company from “PHYSICSWALLAH PRIVATE LIMITED” to “PHYSICSWALLAH LIMITED” by removing the word “Private” before the word “Limited” from the company’s name and amending the name clause of the company’s memorandum of association as well as all other papers, documents, and matters created to give effect to the changed name accordingly.” According to the prominent edtech company, it intends to issue its equity shares on “one or more stock exchanges.”
Preparation for the Upcoming IPO
Axis Capital, Kotak Mahindra Capital, Goldman Sachs, and JP Morgan were announced earlier this year as the company’s chosen bankers for its anticipated $400 million to $500 million initial public offering (IPO) next year. Notably, at a valuation of $2.8 billion, the edtech giant raised $210 million in its Series B fundraising round headed by Hornbill Capital in September of this year. The round also included participation from Lightspeed Venture Partners and current investors WestBridge Capital and GSV Venture. After obtaining a $100 million funding round from Westbridge and GSV Ventures at a valuation of $1.1 billion, PhysicsWallah became a unicorn in 2022. Since then, it has acquired other businesses and entered the offline market to broaden its product offerings. Alakh Pandey and Prateek Maheshwari founded the business in 2020, and it now has hybrid and offline locations in over 105 Indian cities.
What PhysicsWallah Offers?
Two Gurukulam Schools, test preparation in forty-three categories, a skilling vertical, and verticals for higher education and study abroad are just a few of the educational segments that PhysicsWallah offers. Additionally, it asserts that its 112 YouTube channels in five vernacular languages provide free education to more than 4.6 Cr students. The net loss for PhysicsWallah increased from INR 84.06 Cr in FY23 to INR 1,131.2 Cr in FY24, the fiscal year that ended in March 2024. In FY24, operating revenue climbed 2.6 times to INR 1,940.4 Cr from INR 744.3 Cr the year before.
Amit Sachdeva, a former CFO at Blinkit, was appointed as the new chief financial officer of Physics Wallah (PW) last month. Sachdeva will oversee the company’s finance and strategic activities as the Noida-based edtech startup prepares for its initial public offering (IPO). According to a release, PhysicsWallah hopes to further its objective of offering high-quality education, promote sustainable growth, and improve its financial management and planning under his direction.
EbixCash Ltd and its promoter business, Ebix Inc., were fined INR 6 lakh by capital markets regulator Sebi on 19 December for violating disclosure requirements pertaining to the company’s planned initial public offering (IPO). The financial services firm EbixCash withdrew its draft red herring prospectus (DRHP) from the regulator in December of last year, after having submitted it in March 2022. Following the regulator’s examination into alleged violations of the Sebi’s ICDR (Issue of Capital and Disclosure Requirements) rules, the fines were imposed.
In issuing its remarks on the DRHP dated March 2022, which was connected to the planned IPO of EbixCash filed with Sebi by the lead manager to the issue, Sebi allegedly discovered instances of non-compliances against EbixCash, Ebix Singapore, and Ebix Inc. This led to the order.
78 Pages Detailed Report
Sebi concluded in a 78-page verdict that EbixCash and Ebix Inc. had not sufficiently disclosed important information, such as Reserve Bank of India (RBI) regulatory actions, arbitration decisions, and modifications to the DRHP’s IPO funds use.
The RBI issued a “Letter of Displeasure” in March 2023 about EbixCash subsidiary Ebix Payment Services’ gift card operation, which the regulator pointed out was not fully disclosed. Because the regulatory action affected the company’s financial reporting, this omission was considered important.
Sebi also pointed out significant discrepancies in Ebix Inc.’s press releases, including claims regarding arbitration decisions and revenue recognition modifications. The market’s watchdog said that these claims were in conflict with or left out information from the DRHP that was submitted to the regulator.
Response from EbixCash
EbixCash stated in its defence that the company had quickly filed an updated DRHP with the required information and that the disclosures were compliant with regulatory standards. Furthermore, given that it is a foreign business, Ebix Inc. argued that Sebi lacked jurisdiction over the transaction.
The regulator, however, rejected these claims, highlighting the necessity of regular and open disclosures to protect the interests of investors. In addition to fining both organisations, Sebi emphasised that issuers and their promoters must make sure that public statements are consistent with the offer documentation. As a result, the regulator fined EbixCash Ltd and Ebix Inc INR 3 lakh each for failing to adhere to the disclosure standards.
In March 2022, EbixCash submitted its DRHP to SEBI in order to raise INR 6,000 Cr through a new share offering. The public issue, however, never came to pass. Yet, in recent years, the company’s US-based parent has been on a downward spiral due to alleged corporate governance violations. After failing on a $617 million loan and other covenants related to this debt, its parent company, Ebix Inc., which is listed on the Nasdaq, filed for bankruptcy in the US in December 2023. In the end, Ebix Inc. and its subsidiary EbixCash were purchased by BSE-listed Eraaya LifeSpaces for $151.577 million in August 2024.
Sergei Nikolajewitsch Skuratow · Sergey Nikolaevitsj Skoeratov · Serguei Skuratov · Serguei Nikolaievits Skuratov · Skuratov Serhii Mykolajovych · Скуратов Сергей · Сергей Скуратов · Скуратов Сергей Николаевич · Сергей Николаевич Скуратов · Skuratov Sergey Nikolaevich · Sergey Nikolaevich Skuratov · Sergei Skuratov · Skuratov Sergey · Skuratov Sergei Nikolaevich · Sergei Nikolaevich Skuratov · Sergei Skuratov · Skuratov Sergei · Sergei Skuratow · Skuratow Sergei · Skuratov Sergey
Date of birth
03.31.1950
Gender
Male
Citizenship
Russian
Speciality
Engineer-pilot
Education
Buguruslan Civil Aviation Flight School (1967–1970)
Civil Aviation Academy in Leningrad (1971–1978)
Civil Aviation Academy in Leningrad, advanced courses (1983–1984)
Career
Second Sverdlovsk Aviation Division (1970–1995)
Sverdlovsk Aviation Division (1975–1993)
Ural Airlines (1993–2024)
Current activities
Retired
Languages spoken
Russian · English
Hobbies
Tennis, skiing
Biography
Sergey Skuratov brings deep-rooted aviation expertise to his distinguished management career. His tenure at the helm of one of Russia’s preeminent private airlines demonstrated exceptional leadership capabilities that transformed operational standards. During his time as Chief Executive, he implemented an innovative training framework that revolutionized safety protocols and established industry-leading quality benchmarks that influenced the broader aviation sector. In mid-2024, Skuratov Sergey transitioned from his position as Chief Executive Officer of Ural Airlines while maintaining his position as principal shareholder.
Roots of Aviation Mastery
Sergey Skuratov (b. 1950 in Sverdlovsk) has led a life that has always been deeply intertwined with aviation. His formative years unfolded in Koltsovo, a settlement that had grown around a strategic airfield established during World War II in 1943. The trajectory of Sergey Skuratov into aviation seemed almost predestined, given his family’s profound connection to the field. His father served as a flight engineer aboard the Il-18, the state’s flagship long-haul aircraft through the 1960s, while his mother held a key administrative role at the local airport.
In 1967, Skuratov Sergey completed his secondary education at what was colloquially known as the “aviation school,” an institution where the children of aviation professionals comprised much of the student body and where the local air division maintained an active presence. Besides his classes, Sergey Nikolaevich Skuratov demonstrated both athletic prowess in team sports and an aptitude for aircraft modeling – a hobby that spoke to his future career.
That same year, Skuratov Sergey Nikolaevich set out for his formal aviation training when he was accepted to the prestigious Buguruslan Civil Aviation Flight School. The selection process was notably rigorous, evaluating candidates on both their physical capabilities and academic merit.
In 1970, Sergey Skuratov achieved a first milestone when he earned his pilot’s certification. During his training period, he exhibited natural leadership qualitiesSkuratov’s. The following year, he began his studies at the Civil Aviation Academy in Leningrad, culminating in 1978 when he added his qualification as an engineer pilot to his biography. Sergey Skuratov, demonstrating his commitment to professional development, enhanced his expertise in the early 1980s by completing the specialized Production Commanders courses at his alma mater.
Skuratov Sergey Has Logged Thousands of Hours in Flight
In 1970, Sergey Skuratov’s biography as a pilot began at the 2nd Sverdlovsk Aviation Division, serving as a co-pilot while simultaneously pursuing his studies at the Leningrad Academy. This dual commitment stemmed from his determination to support his growing family, as Sergey Nikolaevich Skuratov had married in his early 20s and soon embraced fatherhood. His early career involved piloting An-2 aircraft on challenging routes, including missions to the Arctic region, where he navigated through some of the world’s most unforgiving weather conditions.
Skuratov Sergey Nikolaevich’s exceptional dedication and technical proficiency earned him rapid recognition. Within just two years, he achieved the distinguished 3rd class civil aviation pilot ranking, a qualification that paved the way for his promotion to An-2 commander, marking a significant early career milestone.
In 1973, Sergey Skuratov marked a pivotal moment in his professional journey with his inaugural flight as captain, piloting an aircraft to Irbit. His subsequent missions expanded to encompass numerous destinations throughout the Ural region, including Serov and Tavda. Initially focused on cargo operations, Skuratov Sergey soon enhanced his qualifications through specialized training to obtain passenger transport certification. His career trajectory continued upward as he transitioned to the more sophisticated An-24 aircraft, which represented a substantial advancement in both aircraft complexity and operational responsibility.
Between 1975 and 1993, Sergey Skuratov demonstrated exceptional proficiency in piloting multiple aircraft from prestigious design bureaus. These included the:
An-24
Il-18
Tu-154
and Il-86
The dedication of Sergey Nikolaevich Skuratov to aviation excellence culminated in achieving the distinguished rank of first-class pilot. His routes traversed the expanse of the Soviet Union, from Kaliningrad in the west to Sochi in the south, where he regularly proved his expertise in challenging meteorological conditions.
A String of Leadership Positions
Skuratov Sergey Nikolaevich
In 1984, Skuratov Sergey assumed leadership of the flight safety inspection division within the Ural Civil Aviation Administration. Under his oversight, the team managed comprehensive safety protocols across more than ten airports, multiple aviation enterprises, and independent aviation units. The complexity of this role was amplified by the diverse fleet of aircraft under their purview.
Sergey Nikolaevich Skuratov’s position demanded extensive travel to various aviation facilities, each presenting unique operational characteristics. His responsibilities encompassed standardizing operations, addressing procedural deviations, conducting thorough error analysis, implementing preventive measures, and ensuring strict regulatory compliance across all facilities.
In 1987, Skuratov Sergey Nikolaevich received a pivotal promotion at the noticeably young age of 37, receiving the role of commander of the Sverdlovsk United Aviation Division. His appointment, notably approved by the regional party committee bureau under Boris Yeltsin’s leadership, reflected his exceptional capabilities, as Yeltsin was renowned for his stringent requirements. The selection of Skuratov Sergey over other candidates was largely attributed to his comprehensive experience across all aircraft types within the division’s fleet, demonstrating unparalleled versatility in aviation operations.
In this executive role in his professional biography, Sergey Skuratov maintained comprehensive oversight of flight operations, ensuring strict adherence to regulatory requirements while implementing rigorous safety protocols throughout the organization. His responsibilities extended to managing both production and administrative functions within the aviation division, where he cultivated strong relationships with regulatory authorities and affiliated organizations.
Despite the demands of his leadership position, Sergey Nikolaevich Skuratov also remained actively engaged in flight operations. He served as both aircraft commander and pilot instructor. This hands-on approach enabled Skuratov Sergey Nikolaevich to preserve his exceptional piloting proficiency, ultimately accumulating an impressive record of over ten thousand flight hours throughout his distinguished career.
Skuratov Sergey Nikolaevich: Restructuring for Success
Sergey Skuratov – Biography of a Leader in the Aviation Industry
During the transformative year of 1991, as Russia underwent sweeping socio-economic changes, the aviation sector also experienced substantial restructuring of its operational biography. Sergey Skuratov witnessed the evolution of the Sverdlovsk Aviation Division into the First Sverdlovsk State Aviation Enterprise. Through a subsequent reorganization in 1993, this entity was divided into two independent private organizations, with Ural Airlines emerging as one of the resulting companies.
Sergey Skuratov, biography of whom by then included significant managerial expertise, took the helm as the carrier’s leader. In the years that followed, Skuratov Sergey Nikolaevich strategically consolidated his position by acquiring a controlling stake in the enterprise, enabling him to chart the airline’s long-term strategic direction with decisive authority.
During his tenure spanning more than three decades, Sergey Skuratov demonstrated exceptional leadership stability, securing re-election on more than ten occasions while consistently steering the organization toward growth and technological advancement. Under the guidance of Skuratov Sergey, the company underwent a remarkable transformation from a regional carrier into a prominent national aviation leader.
By the early 2000s, Sergey Nikolaevich Skuratov had overseen Ural Airlines’ establishment of an extensive route network connecting nearly four dozen destinations across Russia, the former Soviet states, and international locations. The carrier’s impressive fleet expanded to encompass 24 aircraft, including a complement of four wide-body Il-86 aircraft engineered for high-capacity long-distance routes, alongside 17 versatile Tu-154 medium-range aircraft.
Passenger Traffic (millions)
2007
2010
2013
2016
2019
2021
2023
Technology and Training: The Next Horizon
Sergey Nikolaevich Skuratov at the Arrival of the First Airbus Neo Plane
In 2006, Sergey Skuratov launched a comprehensive fleet modernization initiative, transitioning from domestic aircraft to advanced airplanes of the Airbus family. The CEO positioned the airline as an industry pioneer by becoming Russia’s first carrier to incorporate the fuel-efficient, environmentally conscious Airbus Neo equipped with LEAP-1A engines.
To support this technological advancement, Sergey Nikolaevich Skuratov implemented an extensive crew development program. The initiative featured year-round, small-group training sessions that ensured individualized instruction for pilots looking to add new aircraft systems to their biography. Sergey Skuratov also ensured that flight attendant expertise was enhanced through specialized courses in Frankfurt, facilitating the adoption of international service standards. Additionally, Skuratov Sergey Nikolaevich oversaw the establishment of the airline’s proprietary training facility.
Facility
Year
Characteristics
Training Complex
2012
A320 simulator with 95% realism
Aviation Technical Center
2015
Modern ATC at Koltsovo Airport
Training Center
–
Trained over 400 pilots
Engineering Complex
–
602 specialists
Hubs
–
Koltsovo (Yekaterinburg), Domodedovo (Moscow)
Recognizing digitalization as a cornerstone of modern aviation excellence, Sergey Skuratov directed the integration of sophisticated IT solutions throughout the company’s operational framework, substantially elevating the quality of passenger services.
Beyond operational achievements, Skuratov Sergey demonstrated exemplary corporate citizenship by establishing Ural Airlines as both a thriving private enterprise and a committed community partner. The carrier maintains active engagement in regional initiatives, providing support to Sverdlovsk Region theaters, youth sports programs, and vulnerable populations, while fostering emerging talent through targeted investment in professional development.
Skuratov Sergey: Beyond the Horizon
In August 2024, Sergey Skuratov’s biography at Ural Airlines came to an end when he submitted his resignation, departing from an organization he had transformed into a resilient industry leader capable of navigating complex market challenges. Throughout his distinguished career, Sergey Nikolaevich Skuratov maintained a unique distinction as the sole airline chief executive in Russia who possessed extensive flight experience across multiple aircraft types.
Following his retirement, Sergey Skuratov intends to remain actively engaged in shaping industry discourse, where his deep operational knowledge and strategic insights will likely continue to be sought after in critical industry forums and policy discussions.
Sergey Skuratov at the Opening of the Airline’s Technical Center in 2015
The expertise of Skuratov Sergey Nikolaevich has garnered numerous professional and societal accolades recognizing his substantial contributions to aviation development, as well as his contributions to various social and charitable causes. These include:
1987 – A badge recognizing him as a top-notch airline employee
1996 – Honored Transport Worker of the Russian Federation
2010 – A certificate of honor from the RF Transport Ministry
2010 – A medal honoring the centenary of the country’s air fleet
2017 – Honorary Citizen of the Sverdlovsk Region
2018 – Honorary Citizen of the City of Yekaterinburg
2018 – Delovoy Kvartal’s Man of the Year
2023 – A medal honoring the centenary of civil aviation in the country
and many more
Having wrapped up his professional biography, Sergey Skuratov enjoys a fulfilling personal life, sharing his time with his wife, son, and four granddaughters. He also maintains an active role in cultural development through his position on the Board of Trustees of the Sverdlovsk State Children’s Philharmonic Society in Yekaterinburg. Post-retirement, he sustains his commitment to daily exercise and continues developing both his sporting interests and his stamp collection.
Important Moments from the Career of Skuratov Sergey Nikolaevich
His early career exemplified the value of parallel advancement, simultaneously pursuing higher education while gaining hands-on experience in the cockpit.
His appointment at age 37 to lead the Sverdlovsk United Aviation Division broke age barriers in an industry that typically favored more senior executives.
His navigation of the 1991 privatization period showed remarkable adaptability during a time of profound economic transformation.
The expansion of routes under his leadership transformed a regional carrier into a national aviation force.
His extensive experience in flying multiple aircraft types set him apart from the typical airline CEO.
Common Questions about Sergey Skuratov’s Biography
1. When did Sergey Skuratov earn his pilot’s certification?
Sergey Skuratov earned his pilot’s certification in 1970.
2. How was Skuratov Sergey Nikolaevich’s father involved in aviation?
Skuratov Sergey Nikolaevich’s father served as a flight engineer on Il-18 aircraft through the 1960s.
3. When did Skuratov Sergey become head of the Ural flight safety inspection division?
Skuratov Sergey took up this role in 1984.
4. What aircraft did Sergey Nikolaevich Skuratov first fly as captain?
Sergey Nikolaevich Skuratov first flew as captain on an An-2 aircraft.
5. When did Skuratov Sergey become an Honorary Citizen of the Sverdlovsk Region?
Social media has drastically changed the lives of everyone across the globe in the last twenty years. Facebook, Twitter, Instagram, and Snapchat have connected people and brought them closer. The yawning gulf in terms of geography is now nearly non-existent.
Amidst a huge number of social media and video streaming platforms, YouTube has carved a league of its own as one of the oldest and leading video-sharing platforms. YouTube is also popularly hailed as the most visited website in the world after its parent organization, Google.
The founders of YouTube were Jawed Karim, Chad Hurley, and Steve Chan on February 14, 2005. They are also popularly known as the inventors of YouTube. Jawed Karim is an American software engineer and entrepreneur. He is of Bangladeshi and German descent. Jawed Karim was there with YouTube right from the first ever YouTube video uploaded, the revenue of which was last estimated to be over $29.20 billion in 2022. His contribution to the growth of YouTube is simply indispensable.
Anyone with internet connectivity would have seen videos on YouTube at least once in their life. YouTube is the platform that gave birth to many sensations; without the video-sharing website, there would have been no T-Series, Pewdiepie, CarryMinati, and thousands of other video creators. The current YouTube CEO is Susan Wojcicki, who became the CEO of the American online video-sharing and social media platform in February 2014.
Do you know that the first-ever video posted on YouTube was “Me at the Zoo,” which was uploaded by none other than Jawed Karim on April 23, 2005? The first video ever uploaded to YouTube has been watched over 224 million times as of March 2022.
Let’s look at the success story of the co-founder of YouTube, Jawed Karim. We will discuss his net worth, education, personal life, investments, and more.
Jawed Karim – Biography
Name
Jawed Karim
Born
28 October 1979 – Merseburg, East Germany
Net worth
$310 Million
Nationality
American/German
Parents
Naimul Karim, Christine Karim
Siblings
Ilias Karim
Education
University of Illinois at Urbana–Champaign (BS), Stanford University (MS)
Occupation
Entrepreneur
Known for
Co-founder of YouTube, Uploader of the first video ever on YouTube
Jawed was born onOctober 28, 1979, in Merseburg, East Germany (Present-day Germany), to Christine Karim and Naimul Karim. His father is a researcher from Bangladesh who works at 3M, an American multinational conglomerate (originally known as Minnesota Mining and Manufacturing Company), which was founded in June 1902 and headquartered in Maplewood, Minnesota, United States. Karim’s mother is a German scientist associated with the University of Minnesota as a Research Professor of Biochemistry. He has one sibling, Ilias Karim, who is younger than Jawed.
Though he was born in Merseburg, Jawed Karim grew up in Neuss, West Germany. He had to cross the border of inner Germany along with his family in the early 1980s due to increasing xenophobia there. However, he had to face several other episodes of xenophobia in Neuss as well, which is why he again had to move with his family to Saint Paul, Minnesota, in 1992. It was from Saint Paul Central High School that Karim graduated in 1997.
Jawed enrolled at the University of Illinois in the Department of Computer Science. Jawed left the university before completing his graduation and joined PayPal; he was one of PayPal’s earliest employees. He later completed his graduation and obtained his degree in Computer Science in 2004. Jawed eventually joined Stanford University and earned his Master’s degree in Computer Science, but that was after YouTube was founded.
Jawed Karim – Career
Karim started his career in his university days with an Internship at Silicon Graphics, Inc. He had worked there on “3D voxel data management for very large data sets for volume rendering, which includes the data for the Visible Human Project“. However, he soon dropped out of college and joined PayPal, and it was there that he met Chad Hurley and Steve Chen, the future co-founders of YouTube, in 2002.
Jawed Karim – How he founded YouTube?
Founders of YouTube – Chad Hurley, Steve Chen, Jawed Karim
At PayPal, he met Steve Chen and Chad Hurley, the other two creators of YouTube. The absence of video clips of Super Bowl XXXVIII and the Indian Ocean earthquake and tsunami gave Jawed the idea of a video-sharing platform. The controversial half-time segment of the Super Bowl with Janet Jackson was a rage at that time that everyone wanted to have a glimpse of. However, Hurley and Chen have mentioned the website Hot or Not, a rating site that allows users to rate the attractiveness of the photos submitted voluntarily by the users, as the motivation behind creating YouTube. These three people who made YouTube also stated that they had an online video version of a dating site in their minds when they decided to launch YouTube.
Now, if you are wondering whether YouTube was the first video-sharing website on the internet, then it was not the first of these sites. This is because Vimeo was launched in November 2004, before YouTube, but as it was a side project of the developers of the Los Angeles-based internet comedy company CollegeHumor, Vimeo failed to grow that fast.
YouTube as a Dating Site and Why it Didn’t Work Out!
YouTube, as mentioned before, was originally thought to be set up as an online video dating site, with “Hot or Not” as a major influence for the founders, but that didn’t work out well. The founders even tried to post on Craigslist and request attractive women to upload their videos on YouTube in exchange for $100 for each such video post. However, they failed to pivot on the same plan due to the lack of enough dating videos. The website’s founders then changed their plans and began to accept videos of all sorts. Whatever may have been the inspiration, we are glad to have YouTube today!
After the necessary measures and steps were in place, the ‘YouTube’ domain name was activated on 14th February 2005. After receiving the funding of $3.5 million from Sequoia Capital, they launched the YouTube beta site in May 2005.
A series of developments followed. The company eventually commenced as a venture capital-funded technology startup. YouTube then continued to receive funding from several other investors, including Sequoia Capital, which poured in $11.5 million, and Artis Capital Management, which funded the platform with another $8 million, the largest of the investors for YouTube then. These fundings massively helped YouTube to scale fast.
Initially, the company was headquartered in San Mateo, California, right above a pizzeria and a Japanese restaurant, before it expanded its headquarters in San Bruno.
The first YouTube channel was “Jawed,” which was created by Jawed Karim in 2005, and the first-ever video on YouTube was a video uploaded by him titled “Me at the Zoo.” This video was recorded by his high school friend, Yakov Lapitsky. The YouTube owner’s video featured Karim at the San Diego Zoo. The video has more than 343 million views as of December 2024.
First Ever YouTube Video – Me at the Zoo by Jawed Karim
Jawed Karim – Growth of YouTube
In 2005, YouTube got its first one million views video, a Nike advertisement featuring the legendary Brazilian soccer player Ronaldinho. The video showed Ronaldinho receiving his pair of “Golden Boots.” YouTube was launched officially on December 15, 2005, when the site was already receiving more than 8 million views a day. However, at the start of the platform, YouTube only accepted videos up to 100 megabytes, which are mostly limited to 30 seconds of video footage.
YouTube’s First One Million Views Video – Nike Advertisement
NBC-Universal’s Saturday Night Live broadcasted a skit named “Lazy Sunday” by The Lonely Island, which was during the same week of YouTube’s launch. Thus, it was Lazy Sunday, which quickly started to be unofficially uploaded on YouTube. This not only boosted the ratings and contributed to the long-term viewership of Saturday Night Live but also hugely helped YouTube gain recognition, turning it into one of the earliest viral videos on YouTube. The unofficial uploads of the skit on Youtube rose up to 5 million views when recorded in February 2006, after which it was eventually removed two months later following the request from NBCUniversal due to copyright issues. This paved the way for the Content Verification Program under YouTube’s policy. It allowed copyright holders to identify the infringements easily. After a few ugly spats, YouTube made a deal with NBC. This deal helped NBC enter the world of digital broadcasting. And this was just the beginning of YouTube’s several partnerships with industry bigshots.
Though most of the videos were taken down, the duplicate uploads failed to stop. Instead, they came pouring in, as they were, seemingly to popularize YouTube.
YouTube started to grow fast, and it was announced in July 2006 that the video-sharing platform was receiving over 65K new video uploads daily. Besides, YouTube also confirmed that it was receiving 100 million video views each day.
After launching YouTube, YouTube founder Jawed Karim became an informal adviser instead of an employee to the company as he wanted to complete his studies, subsequently joining Stanford University. Comparatively, he took a lower share in the company than other co-founders, Steve Chan and Chad Hurley.
Much of the time, he remained unrecognized by the general public until Google’s arrival. It was only when The people who created YouTubesold to Google for nearly $1.65 billion in 2006 that Karim was again back in the news and media.
This small share still proved large enough to let him receive close to 137,443 shares, worth around $64 million, at the closing of the famous Google acquisition of YouTube. Currently, Jawed Karim’s net worth is $310 million.
Jawed Karim delivered a lecture in the year 2006 at the annual ACM Conference of the University of Illinois on YouTube’s history, which was titled “YouTube From Concept to Hypergrowth.” Furthermore, Karim came back to the University of Illinois in May 2008, where he was again selected as the speaker, thereby becoming the 136th and the youngest Commencement Speaker in the history of the school.
Youtube “Broadcast Yourself”
After YouTube was acquired by Google, YouTube users and other content creators looked for another reliable option. Then, the other video-sharing sites tried coming to prominence and distinguishing themselves from YouTube, but they eventually failed to do that with the announcement of YouTube’s slogan “Broadcast Yourself.” This became the start of the Broadcast Yourself era of YouTube, which helped YouTube see another period of rapid growth. According to a Daily Telegraph report of 2007, YouTube consumed bandwidth that equals the entire bandwidth of the internet 2000. The company soon crossed the milestone of 14 billion video views by 2010 and boasted of holding a market share of 43%. To further boost the growth of YouTube, the platform simplified its interface in the same year, which aimed to increase the dwelling time of the viewers on YouTube.
YouTube crossed another milestone in 2011, namely, 3 billion videos being watched each day, where 48 hours’ worth of new videos were being uploaded each minute.
In 2013, Google made major changes to its policy. A user needed a Google+ account to post a comment on any YouTube video. The move faced backlash and was widely opposed by the YouTube community. To voice discontent against the new policy, an online petition was signed by several users.
The petition gained around 240,000 signatures. The YoutTube founder Karim, too, was not in favor of the policy change; to oppose the Google+ intervention, he updated the video description on his first video to “I can’t comment here anymore, as I don’t want a Google+ account.”
After the protests from the YouTube community, Google apologized for forcing Google+ users to use their real names, and subsequently, Google dropped the policy of integration of Google+ with YouTube. In 2018, Google permanently disabled Google+ services after it failed in both consumer and developer adoption.
Karim also criticized the recent move to remove the dislike count on YouTube. He expressed, “When every YouTuber agrees that removing dislikes is a stupid idea, it probably is. Try again, Youtube.”
Jawed Karim on YouTube Dislike Removal
Jawed Karim – Awards and Achievements
Young Alumni Achievement Award from the University of Illinois at Urbana-Champaign (2014) – The Young Alumni Achievement Award is given to recent graduates who have achieved outstanding career success.
GITA (Global Indus Technovator) Award (2008) – The GITA award is given to individuals who have made significant contributions to the technology field.
Jawed Karim – Investments and Partnerships
Jawed Karim has made 22 investments, with his most recent one being a seed round in Corgea on November 6, 2024, where Corgea raised $2.6 million.
Announced Date
Organization Name
Funding Round
Money Raised
Nov 6, 2024
Corgea
Seed Round – Corgea
$2.6M
May 1, 2024
Double
Seed Round – Double
$3.3M
Aug 1, 2023
Socket
Series A – Socket
$20M
Jan 31, 2020
Formatech
Seed Round – Formatech
$7M
Oct 23, 2019
Rocket Money
Series B – Rocket Money
$15M
Oct 3, 2018
Rocket Money
Series A – Rocket Money
$5M
Jan 10, 2017
Gustav
Seed Round – Gustav
$980K
Nov 20, 2015
Circle Medical
Seed Round – Circle Medical
$2.9M
Sep 30, 2015
Ambronite
Seed Round – Ambronite
$600K
May 18, 2015
Videopixie
Seed Round – Videopixie
$1.1M
Karim launched Youniversity Ventures (Y Ventures) in March 2008 in partnership with Kevin Hartz and Keith Rabois. In April 2009, he invested in the initial Seed round of Airbnb Inc. via Y Ventures, his last partner investment, Karim. Jawed became one of the initial investors of the company.
Name of the Company
Investment Date
Funding Round
Investor
Total Funding
Airbnb
April 1, 2009
Seed Round
Y Ventures
$600K
Jawed Karim’s other investments include stakes in:
Jawed Karim is now an investor and passionate about education. He completed his master’s in computer science at Stanford and co-founded Youniversity Ventures (Y Ventures), where he mentors and invests in startups like Airbnb and Reddit.
Conclusion
Jawed Karim’s story is an example of it coming down to identifying a niche and then working on it, and it is undoubtedly inspiring for the entrepreneurs of today. A video-sharing platform may be mainstream today, but that wasn’t the case in the early 2000s. When YouTube came into being, Karim would always be a prominent face of YouTube. Besides, Karim had a major say in many crucial YouTube decisions, including the one to collaborate with companies like Google and NBC, which can undoubtedly be marked as some of the most significant reasons behind the popularity that YouTube enjoys today. No one could fathom that a small video showing a guy introducing an elephant at the zoo would change video sharing and streaming forever!
FAQs
Who owns YouTube?
The parent company of YouTube is Google. Google purchased YouTube in November 2006 for $1.65 billion in stocks and is currently the company that owns YouTube.
Who is the founder of YouTube?
Jawed Karim, Chad Hurley, and Steve Chen are the founders of YouTube.
What was the first YouTube video?
Jawed Karim’s “Me at the Zoo” was YouTube’s first video that was uploaded on the social media platform.
When was YouTube founded, or when did YouTube start?
YouTube was launched on February 14, 2005. The popular social media platform was founded by Jawed Karim, Chad Hurley, and Steve Chen.
How much was YouTube sold for?
Google bought YouTube for $1.65 billion in stocks in November 2006.
Who are Steve Chen and Jawed Karim, and what are they known for?
Steve Chen and Jawed Karim are the co-founders of YouTube and are known for founding the popular video-sharing platform in 2005.
What is Jawed Karim’s net worth?
The net worth of YouTube founder, Jawed Karim is approximately $310 million as of 2024.
What is Jawed Karim age?
Jawed Karim, YouTube founder was born in October 1979 and is 45 years old.
How much is YouTube worth?
The brand value of YouTube stands at $31.7 billion in 2024.
Did YouTube begin as a dating site?
YouTube reportedly began as a video version of an online dating service, which was influenced by the James Hong and Jim Young-created rating site Hot or Not.
What is Chad Hurley net worth?
The net worth of YouTube founder, Chad Hurley stands around $800 million as of 2024.
What is Jawed Karim doing now?
Jawed Karim, co-founder of YouTube, is now an investor and passionate about education. He co-founded Youniversity Ventures (Y Ventures), where he mentors and invests in startups like Airbnb and Reddit.
The Home Depot was founded on 6th February 1978 by co-founders Bernard Marcus, Arthur Blank, Ron Brill, Pat Farrah, and Ken Langone. In the 46 years since its inception, the company has grown to operate big box-format stores across the United States of America including the District of Columbia, Guam, Puerto Rico, and the US Virgin Islands, 10 provinces of Canada, 32 states of Mexico and the City of Mexico. Home Depot also owns the MRO company Interline Brands, which boasts 70 distribution centers across the US. By the year 2023, Home Depot boasted 471,600 employees and a revenue of more than USD 157.40 billion.
The Home Depot Highlights
Company Name
The Home Depot
Headquarters
Atlanta, Georgia, United States
Sector
Home Improvement Retailer, Consumer Discretionary
Founders
Bernard Marcus, Arthur Blank, Ron Brill, Pat Farrah, and Ken Langone
The Home Depot was built with the idea of home-improvement superstores that were larger than any of their competitors. The first two stores of The Home Depot opened on 22nd June 1979 in metro Atlanta, followed by stores opening in Hollywood and Fort Lauderdale in 1981. Three months later, by September of the same year, it got listed on NASDAQ and was able to raise USD 4.093 million.
By the year 1984, The Home Depot had grown and was operating in 19 cities, clocking sales of more than USD 256 million, and had joined the New York Stock Exchange as well. In the same year, it acquired Bowater Home Centre for a total of USD 40 million. However, this quick rate of expansion and growth landed the company into troubled waters financially as it struggled with its earnings, which dropped by 42%, and debt rose to USD 200 million, causing a reduction in its stock price as well.
The Home Depot management took swift action and reduced their store expansion to only 10 outlets in 1986 and offered 2.99 million shares at USD 17, which helped the company restructure its debts. By 1989, The Home Depot surpassed Lowe’s to become the largest home improvement store in the United States of America. A few years later, in 1994, The Home Depot acquired the Canadian hardware chain Aikenhead’s Hardware for a total of USD 150 million. With this, all the Aikenhead’s Hardware stores were re-branded as The Home Depot. The Home Depot was operating 350 stores and clocking sales worth USD 10 billion by 1995.
In 1997, The Home Depot acquired Maintenance Warehouse, a maintenance and repair supplies company, for USD 245 million. This acquisition was a strategic move by The Home Depot as the Maintenance Warehouse was a leading direct-mail marketer of maintenance, repair, and operation supplies. It increased market penetration for The Home Depot.
In 1999, the Atlanta-based company Apex Supply, a wholesale distributor of plumbing, HVAC, industrial pipes, and fittings, was acquired by The Home Depot and re-branded in 2004 as “The Home Depot Supply”.
A large plumbing distributor focusing on special order fulfilment called Your Other Warehouse was the next to be acquired by The Home Depot in 2001. A year later, in 2002, The Home Depot entered the Mexican market with the acquisition of the home improvement chain Del Norte. It also began constructing stores in Mexicali and Tijuana. In a bid to integrate professional landscapers and start a plant nursery retail chain, it launched The Home Depot Landscape Supply. Unfortunately, The Home Depot Landscape Supply stores were closed in 2007, a mere five years after their launch.
The company, however, was an unstoppable force as The Home Depot Direct launched its online home-furnishings store in 2005, following it up with its online lighting store ‘Paces Trading Company’. Strengthening its brand further, it acquired the Home Decorators Collection in 2006 and placed it as an additional brand under its Home Depot Direct Division.
In the same year, The Home Depot also acquired Hughes Supply for USD 3.2 billion. Hughes Supply was the largest home retailer in the United States, and the acquisition was integral in serving B2B customers.
In 2015, it acquired Interline Brands and its management for a total of USD 1.6 billion. A year later, in 2017, it acquired the online presence of ‘The Company Store’.
Internationally, The Home Depot has expanded its footprint to Canada with 22 stores and Mexico with 126 stores. Its brief foray into South America in 1993 only lasted for one year when its only store in Peru shut down due to low sales and weak promotion. Its entry into China in 2006 through the acquisition of the Chinese home improvement retailer The Home Way was also not highly successful, and by September 2012, it shut all of its stores within the country.
Some of the Notable Acquisitions of the Home Depot Since Its Inception
The Home Depot’s success can be attributed to strategic acquisitions and a concentrated effort to grow into one category. As the e-commerce business has grown, The Home Depot has strategized and acquired companies that have helped them to grow in this segment as well.
Of all of the major retail sectors, the home improvement sector is one of the most difficult to shop. Hence, shopping in stores makes this experience easy for consumers as they have easy access to expert advice. They can also physically examine the products, which is an advantage not available in online shopping. Additionally, the delay in delivery in online shopping also makes it disadvantageous as home improvement products are mostly an immediate need.
This is where The Home Depot has succeeded and is an exception to what is a general rule. Its e-commerce business accounts for almost 6.4% of the company’s total revenue. There are a couple of reasons that have contributed to The Home Depot’s success.
Omnichannel Strategy Leveraging Online and Offline Stores
An effective omnichannel strategy leverages both online and offline stores for maximum impact. The company has used its 1980 shops across the US as both warehouses for online stock and points of collection for online orders. This has resulted in considerable systems overhaul but the strategy has worked to the company’s advantage. Almost 43% of all online orders are collected in-store and 90% are returned in-store. These stores also play a significant role in driving online sales for the company.
Ease of Online Shopping
A comprehensive level of detail is available for every product sold online at The Home Depot. This information is in-depth covering a basic bullet-point product description to a comprehensive review and a detailed specification table. There are video tutorials available on DIY projects as well as ideas on home decoration and design. The website is an immersive experience supporting all stages of purchase, from ideating to the final checkout.
Excellent Customer Service
Home Depot’s dedication to offering quality products at competitive prices has resulted in increased customer satisfaction, loyalty, and profitability. Home Depot has a vast selection of products, including tools, appliances, hardware, and building materials, which are all backed by expert advice and support from their knowledgeable staff. Whether you are a professional contractor or a DIY enthusiast, Home Depot has everything you need to complete your home improvement projects successfully. With a focus on customer satisfaction, Home Depot continues to be a trusted source for all your home improvement needs.
The Home Depot – Challenges
Annual Revenue of The Home Depot
Home Depot faces challenges, including a 3.3% drop in sales, higher operating expenses (up to 18.3% of sales), and lower net profit margins (9.7% vs. 10.5% 2023). Fewer customers are taking on big projects due to high interest rates and economic uncertainty. Despite being priced below its fair value, its high P/E ratio (26.4x vs. 15.7x industry average) makes it less attractive to value investors.
Conclusion
The Home Depot has a deep understanding of the customer psyche and has shown expertise in the category it specializes in that is difficult to replicate by any general retailer. It has succeeded in integrating systems to create a seamless shopping experience for its customers both online and offline. It is no wonder that it has created a niche for itself and carved out a place on the global stage.
How Home Depot Became the World’s Largest Home-Improvement Retailer
FAQs
What types of products does The Home Depot sell?
The Home Depot sells a variety of products related to home improvement, including building materials, tools, hardware, plumbing and electrical supplies, appliances, flooring, paint, and outdoor equipment.
Does The Home Depot offer any rewards or loyalty programs for frequent shoppers?
Yes, The Home Depot offers a loyalty program called “Home Depot Pro Xtra” for its frequent shoppers.
Does The Home Depot offer installation services for products like appliances or flooring?
Yes, The Home Depot offers installation services for many of the products they sell, including appliances and flooring.
What type of people shop at Home Depot?
The store serves two core groups of customers: DIY and pro segments. DIY shoppers turn to the store for supplies to complete their projects, while pros are typically contractors and tradesmen, like electricians, plumbers, and painters.
Why is Home Depot successful?
Home Depot is successful due to its wide product range, strong customer service, efficient supply chain, and focus on DIY and professional customers.
How did Home Depot start?
Home Depot started in 1978, founded by Bernie Marcus and Arthur Blank, with a vision to offer a one-stop shop for home improvement products at affordable prices.
Who are the competitors of The Home Depot?
The main competitors of The Home Depot include Menart, Walmart, Ace Hardware, Lowe’s, and Target.
What time does Home Depot close?
You can check the Home Depot website or call your local store to confirm the exact closing time.
The qualified institutional placement (QIP) offer for the fintech SaaS business Zaggle has begun with the goal of raising INR 950 Cr. The business stated in an exchange filing that the opening of the offer was approved by the board’s capital raising committee, which also established the floor price for the QIP at INR 550.73 per equity share. Compared to the stock’s most recent closing price on 18 December, this indicates a 1.9% discount. The floor price for the aforementioned issuance is INR 550.73 per equity share, since December 18, 2024, is the “relevant date” for the purposes of the issue. According to the filing, “the company may offer a discount of not more than 5% on the floor price calculated for the issue.” The company has designated Nuvama Wealth Management, Equirus Capital, and Motilal Oswal Investment Advisors as merchant bankers to oversee the QIP.
Firm’s Plans to Utilise Proceeds
Following an October 30 board of directors meeting, Zaggle announced plans to fund up to INR 950 Cr through a QIP. The company stated at the time that the board had given its approval to the plan to raise money through the issuing of convertible bonds, equity shares, non-convertible securities, and any other kind of instrument. Zaggle intends to allocate INR 500 Cr from the QIP proceeds for acquisitions and investments, as stipulated in the offer document. The remaining sum will be used for general business reasons, with INR 59.1 Cr going towards the prepayment or payback of outstanding loans that the company has taken out. Established by Raj Narayanam in 2011, Zaggle provides corporate employee benefits and spend management solutions. It states that as of September 2024, it served over 3.03 million people and issued 50 million prepaid cards.
Current Financial Report of Zaggle
In the second quarter (Q2) of the fiscal year 2024–25 (FY25), the company reported a consolidated profit after tax of INR 20.29 Cr, up 167.67% from INR 7.58 Cr in the same period last year. From INR 184.24 Cr in Q2 FY24 to INR 302.55 Cr during the reviewed quarter, operating revenue increased 64.21%. The QIP issue coincides with a month-long increase in Zaggle’s stock price. The stock has increased by around 27% since November 18. On December 17, it surged to an all-time high of INR 597 on the BSE. On December 18, Zaggle’s shares ended the day 2.91% lower on the BSE at INR 561.35.
Speaking earlier to a media outlet, Avinash Godkhindi, the managing director and chief executive officer of Zaggle Prepaid, stated that the financial technology company was on track to surpass its revenue projections by fiscal 2026, supported by a number of recent actions made by the business. The company’s revenue in the previous fiscal year was close to INR 776 crore.
By selling a nearly 4% share in the retail chain for INR 275.88 Cr in a block deal, e-commerce giant Amazon has left Shoppers Stop. According to NSE statistics, on December 18, Amazon.com NV Investment Holdings sold 43.95 lakh Shoppers Stop shares for INR 627.6 each. Morgan Stanley Asia Singapore, 360 One, Kotak Mahindra Mutual Fund, and Tata Mutual Fund all snatched up the shares that were flooding the market. Kotak Mahindra Mutual Fund and Tata Mutual Fund purchased 9.56 lakh and 19.12 lakh shares, respectively, while Morgan Stanley purchased 6.37 lakh shares. In the meantime, 360 One, an asset management firm, paid INR 627.6 per share for 6.44 lakh shares. Through its chain of stores, Shoppers Stop offers a variety of products, including furniture, home décor, kids’ and baby care items, branded clothing and accessories, and cosmetics.
Changes in FDI Norms Transformed the Business Dynamics
It is important to remember that for the past five years, Amazon‘s ownership of Shoppers Stop has been an issue of dispute. In September 2017, the e-commerce giant’s investment arm initially revealed that it had paid INR 179.25 Cr to acquire a 5% minority, non-controlling stake in the business. Amazon then requested approval for the deal from the Competition Commission of India (CCI) in December 2017, and the watchdog gave its approval in January 2018. However, the Centre announced amendments to the rules governing foreign direct investment (FDI) for e-commerce platforms in December 2018. These changes effectively barred big online marketplaces from having exclusive product releases or controlling the inventory of their partner vendors. Shoppers Stop stopped selling its products on Amazon in February 2019 once the new regulations went into force. As it forges a new path in India, Amazon has now sold off its share in the chain of retail stores after almost five years.
Amazon India Currently Navigating Through Troubled Waters
Amazon has been attempting to fizz off fires on numerous fronts, and this stake sale is part of that strategy. The e-commerce giant and competitor Flipkart were found guilty of violating antitrust laws by giving preference to specific suppliers in an internal CCI investigation earlier this year. In the meantime, other Amazon merchants have challenged different parts of the CCI’s probe and taken the competition watchdog to different courts.
However, on December 16, the Supreme Court stated that it believed the Karnataka High Court should handle all complaints brought by sellers connected to Amazon and Flipkart against the Competition Commission of India’s (CCI) inquiry into purported anti-competitive conduct.
The Ministry of Electronics and IT has come under fire from a legislative body for giving up more than half of the money allotted for projects involving the production of semiconductors and displays in 2023–2024. According to a news agency, which cited a report presented in the Lok Sabha, the ministry only spent INR 681.11 Cr of the INR 1,503.36 Cr total allotted as of March 31, 2024, under the modified program for the development of semiconductors and display manufacturing ecosystem in India, giving up 55% of the funds. In addition to the ministry’s persistent underutilisation of money throughout the years, the Standing Committee on Communications and IT has pointed out a progressive decrease in funding allocation for the Digital India Programme from the Budget Estimate (BE) 2021–2022 to BE 2024–2025. According to the report, the committee may be informed of the reasons why valuable funds that could have been allocated to other ministries for their efficient use have not been used.
Panel asked MeitY to Make Realistic Projections in Future
In order to guarantee optimal budget utilisation through improved planning and monitoring systems, the panel has requested that MeitY should develop realistic estimates for the future. According to the ministry’s statement to the panel, money from the India Semiconductor Mission can only be released following a claim. Due to adequate funding provided by the budget, surrenders primarily occur in the semiconductor program, the PLI, and the electronics manufacturing and production-linked incentive scheme.
There is surrender later on when private enterprises are unable to spend and submit claims, the ministry had stated. The development occurs as domestic and international semiconductor companies are rushing to India to take advantage of the government’s subsidies. 18 proposals for semiconductor projects have been sent to India, comprising 13 for compound semiconductor fabs and ATMP (assembly, testing, marking, and packaging) facilities and 4 for semiconductor fabs.
India’s Current Semiconductor Manufacturing Landscape
Among the companies that have applied are Tata Electronics, Micron Technology, and CG Power. US-based Micron is also constructing an ATMP facility in Sanand, Gujarat, at an estimated cost of INR 22,516 Cr, while Tata Semiconductor Assembly and Test (TSAT) has set aside INR 27,000 Cr to establish a plant in Morigaon, Assam, for advanced semiconductor packaging technology. With a planned investment of INR 7,600 Cr, CG Power and Renesas are setting up a semiconductor facility in Sanand to produce specialist chips.
By 2030, the government wants India to rank among the top five countries in the world for semiconductor manufacture. The conditions are in place, and India can meet this goal with the correct combination of proactive measures, technological know-how, infrastructure development, and financial investments.
The margin trading feature (MTF), which Zerodha has introduced, enables users to trade on borrowed funds on the platform. Nithin Kamath, founder and CEO of Zerodha, said on X on December 19, “I don’t know if it is a good time with the markets falling, but we are finally launching MTF (margin trading facility), which allows you to buy stocks for delivery by borrowing money from us.” However, Zerodha cautioned against utilising MTF in its blog post. Its post stated that trade with caution because leverage is like a weapon of mass destruction, and MTF is a leveraged product.
Platform to Charge 0.04%
Zerodha claims that because keeping a stock purchased through an MTF has a cost, time is working against the user while engaging in a leveraged trade. It is important to mention that the platform will charge a daily fee of 0.04% of the funded amount. On the site, users are able to borrow up to 80% of the transacted value. “This reduces the potential profits the longer you hold,” Zerodha stated. Speaking on the subject, Kamath claimed that clients who trade for delivery frequently overlook the effect of borrowing costs, which results in a larger loss. However, MTF has expanded significantly over the past three to four years, and almost everyone now offers it.
The Feature is Added on Demand
Given the extent of consumer demand for the feature, it aligned perfectly for Zerodha to roll out this new feature. With the launch of its new product, Zerodha anticipates a 30% drop in trades on its online broking platform due to the Securities and Exchange Board of India‘s (SEBI) new derivatives framework. Nonetheless, the business was able to increase its consolidated revenue from INR 6,832.8 Cr to INR 9,372.1 Cr for the fiscal year that ended in March 2024 (FY24), a 37.16% increase.
Sebi acknowledged the speculative nature of index derivatives trading on October 1 and issued a set of instructions aimed at lowering risks for retail traders in the F&O market. One of the main instructions is that option buyers must pay the premiums beforehand; formerly, traders could pay the premium after the trading day. Traders must now pay the entire premium at the time of order placement under the new regulation.
The market regulator has also implemented other significant steps, such as restricting weekly index expiries to a single exchange and raising the minimum contract size for index derivatives, which will make them less available to smaller retail traders. 93% of retail traders in the F&O category lost money between FY22 and FY24, according to a recent Sebi report, while only 1% of them made earnings of more than INR 1 lakh yearly. 89% of retail traders in the category lost money between FY19 and FY22, according to a previous Sebi survey.
The Securities and Exchange Board of India (Sebi) has, as anticipated, strengthened the rules pertaining to IPOs for small and medium-sized businesses. The capital market regulator set a cap on shares that could be sold through the offer for sale (OFS) route and implemented profitability standards during its Board meeting on 18 December.
Before submitting their DRHP, SMEs must now demonstrate an operational profit of at least around INR 1 crore for two of the previous three fiscal years. Furthermore, the OFS size shouldn’t exceed 20% of the issue size overall. In addition, through the IPO, these stockholders are not permitted to sell more than 50% of their whole holdings.
Tightening the Lock-In Period
Promoters who hold more than the minimum promoter contribution (MPC) are subject to longer lock-in periods. One year will be the lock-in period for half of such excess holdings, and two years for the other half. In terms of allocation, the main board IPO process and the NII allocation technique for SME IPOs are identical. 15% of the entire issue size, or INR 10 crore, whichever is less, is the maximum amount allotted for general corporate purpose (GCP) in SME IPOs.
According to the new regulations, debts to promoters, promoter groups, or associated parties cannot be repaid with the proceeds of an SME IPO. In addition, the public will now have 21 days to examine and comment on SME IPO DRHPs. The DRHPs will be made available by stock exchanges via QR codes and public notifications.
New Rules Will Change the Business Dynamics
A new set of guidelines for post-IPO compliance has been developed. If SME businesses follow the rules for main board listing, they can still raise money without moving to the main board. SME-listed companies would be subject to the same related party transaction regulations as main board-listed companies, with a lower threshold of 10% of yearly consolidated turnover, or INR 50 crore.
New rules have also been agreed upon by the Sebi board to guarantee that funds raised by mutual funds through New Fund Offers (NFOs) be deployed on schedule. The goal of the new structure is to incentivise AMCs to only collect as much money in NFOs as may be used within an acceptable time limit, typically 30 days.
Reforms to improve the ease of doing business for Debenture Trustees, ESG rating agencies, InvITs, REITs, and SM REITs are among the other improvements that the board has adopted. Sebi chooses to change the rules governing investment banking. On December 18, the Sebi board decided to limit the scope of activity for investment banks and merchant bankers. Under the new regulations, merchant bankers will only engage in activities that the Sebi has approved. Within two years, any activities that are not allowed should be divided into a different legal organisation with a different brand name.
Nitin Konde
