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  • Innoviti Allots New ESOPs Worth INR 25 Cr and Plans to Go Public in 12 Months

    Innoviti, a provider of digital payment solutions, appears to have postponed its initial public offering (IPO) and is now aiming to list on stock exchanges within the next 12 months. Rajeev Agrawal, the company’s founder and CEO, stated in a statement that Innoviti aims to achieve operating profitability within the next two quarters. According to him, the company has started the IPO planning process with the goal of listing within the next 12 months and plans to achieve operating profitability within the next two quarters. Notably, Innoviti stated in August of last year that it intended to launch on the market within the following 12 months.

    In the meantime, the business has granted 110 employees additional ESOPs totalling INR 25 Cr in the lead-up to the IPO. As a result, Innoviti currently has INR 106 Cr in the entire ESOP pool. The new grants range from INR 3 Cr to INR 1 Lakh, according to the company’s announcement. Additionally, according to Innoviti, 50% of the new ESOPs have been awarded to specific employees for their “outstanding contributions,” with the other 50% going to individuals who have worked for the company for more than a year. According to Agrawal, throughout the “last few quarters,” the financial SaaS company had a 58% decrease in EBITDA loss and a 67% increase in sales.

    Company’s Operations and Financial Outlook

    According to the company, it is now making less than INR 8 Cr in annualised EBITDA loss and operating at an annualised run rate (ARR) of INR 160 Cr. Additionally, Innoviti reported that last year saw an annualised growth rate of 192% for their sales negotiating software, “Innoviti Genie,” which is targeted at electronics shops. The business also announced that their enterprise payments software, “Innoviti Unipay,” had a 28% EBITDA and a 15% annualised growth over the previous year. The startup, which Agrawal founded in 2002, lets retailers take payments and incorporate real-time sales data into important business operations. It states that it processes more than 20,000 merchants and more than 2,000 Indian cities’ worth of purchases per year, totalling more than INR 80,000 Cr.

    Funding Rounds

    Innoviti obtained a Reserve Bank of India (RBI) internet payment aggregator (PA) license in March 2024 to run its PA, “Innoviti Link.” The business declared in August 2024 that its Series E investment round has closed at INR 70 Cr. Innoviti has attracted more than $100 million in capital so far, including support from Bessemer Venture Partners, FMO, and Catamaran Ventures, among others. During the fiscal year 2022–2023 (FY23), it reported operating revenue of INR 110.2 Cr and a loss of INR 86.56 Cr.

    Paytm Expands ESOP Pool with 2.03 Lakh New Stock Options
    Paytm enhances its ESOP pool by adding 2.03 lakh stock options, reinforcing its commitment to employee rewards and growth.
    StartupTalkyNitin Konde

  • Paytm Cloud will Open Subsidiaries in Singapore, Saudi Arabia, and the United Arab Emirates

    As the Vijay Shekhar Sharma-led fintech giant Paytm seeks to grow and monetise its tech-enabled payments and financial services in global markets, it intends to establish three new companies through its subsidiary Paytm Cloud Technologies in the United Arab Emirates, Saudi Arabia, and Singapore. The company stated in an exchange filing on January 20 that the board of its wholly owned subsidiary, Paytm Cloud Technologies Limited (PCTL), had given its approval for the three new businesses to be incorporated. These companies will become Paytm’s step-down subsidiaries after they are established. Paytm thinks there is room for growth in comparable foreign countries with its technology-driven merchant payments and financial services distribution business strategy in India. According to Paytm, the company has created a portfolio of cutting-edge hardware, software, and services in India that can be used and profited from globally.

    Options Considered by Paytm

    According to the publicly traded fintech, Paytm is looking into a number of options in these foreign markets, such as partnerships, local licensing, strategic investment, and inorganic growth. Within six months, the wholly owned subsidiaries will be established, requiring an initial investment of up to INR 20 Cr in one or more tranches for each of these business units. The board of Mobiquest Mobile Technologies, another Paytm affiliate, has given the company permission to sell off all of its 100% ownership in Xceed IT Solutions, a wholly owned subsidiary. Vineet Narang and Sabina Kamal, the current directors of Xceed IT, will purchase these shares for INR 60,728 in cash. In the information technology (IT) industry, Mobiquest Mobile Technologies offers computer programming, consulting, and associated services.

    Financial Dynamics of Paytm

    In the third quarter of the fiscal year 2024-25 (Q3 FY25), Paytm was able to reduce its consolidated net loss from INR 221.7 Cr in the previous quarter to INR 208.5 Cr, a 6% decrease. In the September quarter of the current fiscal year, the corporation declared a net profit of INR 930 Cr. From INR 2,850.5 Cr in the same time last year to INR 1,827.8 Cr in the current quarter, operating revenue fell 36%. On the other hand, it increased 10% from INR 1,659.5 Cr on a quarterly basis.

    India’s Fintech Ecosystem Still Leading the Global Race

    In spite of this downturn, the Indian fintech ecosystem is one of the top three globally financed fintech ecosystems in H1 2024, after the US and the UK. According to Tracxn’s Geo Semi Annual Fintech India Report for H1 2024, the ongoing funding winter and a number of other geopolitical challenges are to blame for the funding fall. Compared to one in H2 2023, two funding rounds totalling more than $100 million were observed during that time. These include the $120 million Series C funding round raised by lending platform Avanse and the $144 million Series D funding round raised by non-banking lender Credit Saison.

    Zomato’s Net Profit Falls as Blinkit Dominates Quick Commerce
    Zomato reports a decline in net profit, while Blinkit strengthens its position as a leader in the quick commerce market.
    StartupTalkyNitin Konde

  • By Q1 FY25, Oyo Plans to Register for an IPO

    According to media citations, hospitality startup Oyo has begun preparing its draft red herring prospectus (DRHP), which would be its third attempt to go public, by the first quarter of the upcoming fiscal year. Ritesh Agarwal, the founder, is currently rearranging his shareholdings, which is connected to the upcoming IPO.

    According to media reports last week, Peak XV Partners has already sold shares worth $80-90 million, while early investors, Lightspeed Venture Partners and others, are seeking to sell their shares in the Gurgaon-based company. Agarwal has entered into debt finance agreements that include the IPO plans in order to execute a public offering this year. Media reports emphasised that Oyo’s goal is to file well before the conclusion of the first quarter.

    Agarwal, SoftBank group, and HNI are Expected to Retain Key Space

    In order to invest now and benefit from an IPO, the new investors—mostly family offices—are interested in the IPO link. Before the anticipated IPO filing, three significant shareholder groups—founder Agarwal, SoftBank Group, and HNI family offices—are anticipated to possess a significant portion of the company’s capital table, indicating a concentrated ownership structure.

    According to the most recent data on Tracxn, Agarwal and SoftBank share more than 75% of Oyo parent company Oravel Stays; however, the founder’s stake may increase further as a result of his new investment in the company, which he founded in 2012.

    According to an Oyo representative, the firm has not yet decided on the IPO’s timeline. Oyo is positioned alongside late-stage consumer internet companies like Zepto that are considering public markets this year as a result of the IPO rush. After the public markets embraced new-age companies in 2024, at least 20 startups are anticipated to enter the market this year.

    Oyo Making Significant Efforts to Launch IPO

    In January 2023, the stock market authority rejected Oyo’s initial 2021 effort to go public. After that, the business submitted a new application for a smaller initial public offering (IPO), but it withdrew it in May of last year and chose to raise money privately. At a valuation of $2.4 billion, it concluded a fundraising round of INR 1,457 crore. From a height of $9 billion in 2021 to the present $4 billion, the SoftBank-backed company’s valuation has been erratic, reflecting a resurgence in sustainable operations.

    Oyo’s biggest investor, SoftBank, had cut its valuation from $3.4 billion to $2.7 billion in 2022. Oyo’s updated confidential filing called for a 40–60% lower initial public offering (IPO), whereas its initial proposal was for a $1.2 billion (INR 8,430 crore) offering. Although specifics are still being completed, its most recent IPO is probably going to be less than $1 billion. However, at a valuation of about $4 billion, it is anticipated to fetch a higher price in the ongoing stake sale discussions. In the meantime, Oyo has become profitable, and its cash balance has strengthened thanks to recent fundraising.

    In FY24, Oyo reported its first-ever profit after taxes of INR 229 crore. In the first quarter of FY25, the company reported a profit of INR 132 crore. This performance has been fuelled by strategic investments in Europe as well as expansion in Southeast Asia, India, and the US.

    Cashfree and Razorpay Terminate Partnership with Juspay
    Cashfree and Razorpay end their collaboration with Juspay, marking a significant shift in their payment processing partnerships.
    StartupTalkyNitin Konde

  • Co-founders of PharmEasy to Launch a New Consumer Business Together

    The owners of API Holding, the company that operates PharmEasy, Dhaval Shah, Dharmil Sheth, and Hardhik Dedhia, are planning to launch a new consumer business. The managing director (MD) and CEO of PharmEasy, Siddharth Shah, has also made a personal investment in the new business. The creators have received additional funding from a few venture capitalists (VCs), who previously supported their business.

    The founders also stated that they will no longer be involved in the day-to-day management of the e-pharmacy startup. For more than a year, this daily operational handover has been planned. With operational cash flow break-even in the most recent quarter, the founders are now happy that the business is doing well. According to a statement from Shah, Sheth, and Dedhia, certain outstanding leaders have now taken on the day-to-day duties of the brand as well.

    Funders Holding up their Positions on the Board

    The founders jointly said that they are still committed to the firm and will keep onto their shares for the long term for value creation, clearly outlining their respective perspectives on the ventures. Seth, Shah, and Dedhia will remain on the boards of API and Thyrocare. According to the statement, they would continue to be unwavering supporters of creating India’s top healthcare organisation and place their faith in Siddharth Shah and his staff.

    The other four founders are still involved with the company, according to a statement from PharmEasy. They remain board members and observers and align their ownership for the long term. They intend to become less involved in active daily executive duties.

    Well Planned Move by Founders

    The new team has reached operational cash flow break-even, which has pleased the founders, who have been working on this transition for a few quarters. According to Siddharth Shah’s remark, the team is still doing a good job of handling all of its responsibilities. In March 2024, the founders informed Shah and the board that they wanted to launch their own business, according to media sources. The new business is unrelated to PharmEasy and operates in a non-competitive market.

    One percent or less of the corporation is owned by each of the founders. In 2015, PharmEasy was founded. Nonetheless, the founders’ overall ownership ranges from 10% to more. The business has raised $688 million in total. In 2021, $300 million was raised in the largest investment round. After great effort, the company managed to raise INR 1,300 crore from Manipal Group member Ranjan Pai in 2023. Pai’s contribution is a component of the company’s INR 3,500 crore rights issue fundraising campaign. 

    However, PharmEasy’s valuation has significantly decreased in recent years from the $5.6 billion it brought in in 2021. Temasek, TPG, Prosus, B Capital, GSV, and Think Investments are some of the investors in PharmEasy.

    Zomato’s Net Profit Falls as Blinkit Dominates Quick Commerce
    Zomato reports a decline in net profit, while Blinkit strengthens its position as a leader in the quick commerce market.
    StartupTalkyNitin Konde

  • Airtel and Bajaj Finance Collaborate to Provide Financial Services

    Non-banking financial firm (NBFC) Bajaj Finance and telecom giant Bharti Airtel have launched a strategic alliance to provide its clients with digital financial services. The two businesses asserted in a joint statement that the partnership will open the door for the development of the biggest financial services digital platform in India. The telecom giant will first make Bajaj Finance’s financial solutions available on its Airtel Thanks app as part of the cooperation. After that, the telecom would also provide the 27 products offered by Bajaj Finance at its retail locations. A service pilot has already been started by the companies. The Airtel Thanks app currently offers two financial products, but by March of this year, four more will be available on the app: personal, business, and gold loans, as well as a co-branded “Insta EMI” card. By the end of 2025, Airtel intends to provide about ten of Bajaj Finance’s financial products.

    Marking Phygital Presence in Financial Sector

    Through this collaboration, Airtel and Bajaj Finance hope to increase the uptake of financial services and products by utilising their physical presence. According to the companies, the agreement will allow them to connect new users with the official financial system and access new-to-credit clients. According to the statement, both businesses are dedicated to providing seamless customer service, robust regulatory compliance, and data privacy and security as part of their cooperation. Additionally, the two will use artificial intelligence (AI) to “improve customer experiences and increase efficiencies.” The combined reach, scale, and distribution strength of the two businesses will be the foundation of this cooperation and aid in its success in the market, according to Gopal Vittal, managing director and vice chairman of Bharti Airtel. In addition to investing in and expanding the company, Airtel is establishing Airtel Finance as a strategic asset for the group. Rajeev Jain, MD of Bajaj Finance, commented on the agreement, saying that it not only uses India’s digital infrastructure for inclusive growth but also combines the reach and experience of two of the country’s most reputable and well-known businesses. In partnership with Airtel, Bajaj Finance aims to become India’s preferred financier and provide financial services to millions of people, especially in rural areas.

    Growing Nexus of Fintech Market

    In an effort to take advantage of the rising demand for online financial services, an increasing number of Indian conglomerates are entering the fintech space. Reliance is also engaged in the pursuit of a portion of the fintech market through Jio Financial Services. Fintech ventures received 21% of the $12 billion in funding that Indian entrepreneurs raised in 2024, demonstrating the magnitude of the industry. Last year, the industry closed 162 agreements totalling $2.5 billion. By 2030, the domestic fintech ecosystem is expected to reach a $2.1 trillion market potential, according to various media reports.

    Zomato’s Net Profit Falls as Blinkit Dominates Quick Commerce
    Zomato reports a decline in net profit, while Blinkit strengthens its position as a leader in the quick commerce market.
    StartupTalkyNitin Konde

  • Zomato’s Net Profit Declines While Blinkit Continues to Lead the QC Space

    On January 20, foodtech giant Zomato released its financial results for the third quarter (Q3) of the fiscal year 2024–2025 (FY25). 57% Profit Slumps in Q3 of FY25: The foodtech giant’s consolidated net profit fell 57.2% to INR 59 Cr from INR 138 Cr in the same quarter the previous year. Profit fell 66% sequentially from INR 176 Cr in Q2 of FY25. Among the main causes of the drop in the bottom line were a slowdown in the food delivery market and an increase in Blinkit’s adjusted EBITDA loss as a result of growing competition in rapid commerce. According to Akshant Goyal, Zomato’s chief financial officer, the company’s rapid commerce division would continue to lose money in the foreseeable future. As the company keeps expanding its locations, its networks might have to handle more underutilised stores, which will affect short-term earnings in the upcoming quarter or two. However, these investments will also probably keep Gross Order Value (GOV) growth far over 100%, at least in FY25 and FY26.

    Financial Outlook of Zomato

    In the meantime, Zomato‘s operational revenue increased by more than 64% to INR 5,405 Cr in the reviewed quarter, up from INR 3,288 Cr in the same period the previous year. It increased 12.6% sequentially from Q2 FY25’s INR 4,799 Cr. With ESOP expenses excluded, Zomato’s consolidated adjusted EBITDA increased 120% year over year (YoY) to INR 285 Cr in Q3 FY25. This was mostly due to gains in the food delivery adjusted EBITDA margin (as a percentage of GOV), which increased from 3% to 4.5% during the reviewed quarter. From INR 2,062 Cr in Q3 FY24 to INR 2,413 Cr in Q3 FY25, the segment’s adjusted revenue increased by 17%. In Q3 FY25, the food delivery vertical’s GOV increased 17% year over year to INR 9,913 Cr.

    The company had anticipated 20%+ YoY GOV growth, which this GOV growth fell just short of. Additionally, the food delivery GOV climbed 2% sequentially, which was less than the 5% sequential rise in Q2 FY25. Rakesh Ranjan, the CEO of Zomato’s food delivery division, provided an explanation for the slowdown in the food delivery vertical. He stated that Zomato is currently seeing a widespread slowdown in demand that began in the second part of November. Despite the present slowdown, the company is optimistic that it will soon recover and is still confident in the long-term outlook of 20%+ yearly GOV growth in the industry due to the solid foundations.

    The Sustainability of the 10-Minute Food Delhivery

    In December 2024, Blinkit released Bistro, a 10-minute meal delivery app. Later this month, Zomato also launched a delivery service called Bistro that takes 15 minutes.

    Zomato CEO Deepinder Goyal commented on this emphasis on meal deliveries that take ten to fifteen minutes, stating that research indicates that reducing delivery times generates additional demand for restaurant food and results in “meaningful expansion” of the platform’s demand. 

    “We think deliveries of ten to fifteen minutes can result in something like.” According to Goyal, “This is also the reason we tried Zomato Instant, but we were unable to identify the best business plan and had to shut it down.”

    According to him, the goal of the Bistro is to appeal to the sizable “in-office market,” which demands easy access to meals, snacks, and drinks in ten to fifteen minutes. Although he acknowledged that vending machines and on-site vendors currently serve this market, he said that the current food delivery solutions do not fairly serve people across geographic areas. However, Zomato is presently working to determine whether Bistro is a good fit for the market. 

    In order to create a proof of concept, Bistro is building infrastructure and collaborating with chefs, producers, food experts, and eateries. “The company hopes that this platform could be replicated by different restaurants and cuisine types where demand exists,” Goyal continued, adding that if the brand is successful in finding product-market fit and profitability. 

    Cashfree and Razorpay Terminate Partnership with Juspay
    Cashfree and Razorpay end their collaboration with Juspay, marking a significant shift in their payment processing partnerships.
    StartupTalkyNitin Konde

  • Cashfree and Razorpay will End Collaboration with Juspay

    Payment aggregators Razorpay and Cashfree also intend to end all third-party collaborations and integrations with payment orchestration systems like Juspay in response to PhonePe’s lawsuit. Cashfree intends to stop using third-party routers and orchestrators for integrations. According to a statement from a Cashfree Payments representative, the brand can expedite feature release and provide better support and merchant experience by providing direct integration. According to a statement from Razorpay, it will stop integrating with any third-party payment orchestration systems and instead provide its clients with payment gateway services via direct integrations. Razorpay will halt all integrations via third-party routing services going ahead. Through its own direct integrations, the business will provide payment gateway services to our clients. According to a Razorpay representative, the company feels that direct integrations are the only way to guarantee that its most recent innovations quickly reach its clients and improve their operations and experiences.

    Pine Lab Continuing with the Collaborations

    Pine Labs, a provider of digital payment solutions, seems to have remained loyal to Juspay and stated that it will keep collaborating with other orchestration service providers. Collaboration and open architecture are crucial in the technology industry. Amrish Rau, the founder and CEO of Pine Labs, told a media outlet that the company will keep promoting this and that its online platform will keep collaborating with other orchestration platforms to give customers and merchants the greatest possible experience. Online retailers may handle several bank agreements using a single payment gateway thanks to payment orchestration solutions. In short, based on their greater success rate at the moment, these systems enable a merchant to route transactions to the appropriate payment aggregator. Sheetal Lalwani, the chief operating officer (COO) and cofounder of Juspay, informed a well-known media site that the two platforms’ exit will not affect the company’s operations. He claimed that merchants are the source of the company’s income and that some payment aggregators are depriving their clients of options.

    The construction of a full-stack payment system by Juspay to handle payments for the Open Credit Enablement Network (OCEN) and other commercial payment use cases was covered by a media outlet on December 14, 2023. Sheetal Lalwani, a co-founder of Juspay, had previously stated that he would not go up against other payment aggregators directly.

    Why Payment Aggregators Are Shifting Business Operations?

    A month prior, the digital payments juggernaut PhonePe allegedly ended all third-party integrations and agreements with payment aggregators, including Juspay. The move, according to PhonePe at the time, would allow it to control the whole value chain and reduce reliance on external parties. Although they are still in the early phases, Razorpay and Cashfree have also developed their own orchestration platforms, Optimiser and FlowWise, respectively. Vimal Kumar and Ramanathan RV founded Juspay in 2012, and Lalwani joined them later. Juspay is a technological platform that integrates payment gateways to give merchants an enterprise-grade, end-to-end, secure, and dependable payment stack.

    RBI Highlights Rising Consumption Driven by E-Commerce and Quick Commerce
    RBI highlights the impact of e-commerce and quick commerce on rising consumer spending and increasing consumption across India.
    StartupTalkyNitin Konde

  • E-commerce and Quick Commerce Are Increasing Consumption: RBI

    Quick commerce and e-commerce are fuelling private consumption in the nation, according to the Reserve Bank of India (RBI). According to the central bank’s monthly report, e-commerce and q-commerce are driving the economy’s recovery in private final consumption. The central bank went on to say that encouraging competition is more vital than imposing restrictions on certain markets. In the same sentence, the RBI pointed out that the October–December quarter saw a little increase in demand for household commodities. The RBI claims that the middle class, particularly in cities, is counting on relief from food inflation in order to increase their disposable incomes. The central bank proposed that increasing consumption is a means of reviving the economy’s animal spirits.

    Rural India Goldmine for Ecommerce Platforms

    According to the RBI, the country’s rural areas should continue to see rapid volume growth. It is important to remember that the RBI stated in November of last year that during the festive season, rural India became a treasure trove for e-commerce platforms. The development coincides with the emergence of fast commerce as the next arena of competition in the e-commerce industry. Among the leading companies in the market are Zepto, Swiggy’s Instamart, and Zomato‘s Blinkit. In FY24, the three of them recorded combined revenue of nearly $1 billion. Amazon and Flipkart, two of the biggest online retailers, have also joined the market with their products, nevertheless. Additionally, BigBasket and JioMart are vying for a piece of the action.

    Changing Dynamics of Quick Commerce Business

    Although quick commerce began with grocery delivery, more businesses are entering the food delivery market and providing services in ten to fifteen minutes. Swiggy has introduced Bolt and SNACC for speedy delivery, while Zomato has introduced Blinkit’s Bistro and a 15-minute meal delivery service. To provide comparable features, Zepto has also released its own stand-alone app called “Zepto Cafe.” Additionally, recent entrants like Zing and Swish are providing fast meal delivery services.

    The Present State of the Quick Commerce Industry in India

    According to industry data, the rapid commerce business in India has expanded by 280% in the past two years, and the top three companies, Blinkit, Zepto, and Swiggy Instamart, have combined to generate over $1 billion in revenue for FY24. This occurs as Indian businesses are stepping up their rapid commerce solutions. Amazon India is getting ready to debut its rapid commerce service, Tez, while Myntra recently introduced M-Now for 30-minute- to 2-hour deliveries. The fierce competition in the rapid commerce area is shown by Zepto’s recent $350 million fundraising round, which was led by Motilal Oswal’s Private Wealth division. The company has raised $1.35 billion this year alone to increase the number of its dark stores and diversify its product offerings, demonstrating the significant investments being made by competitors to gain market share in this quickly expanding industry.

    E-commerce and other retail formats are being disrupted by quick commerce, which, according to a recent Bernstein analysis, is expanding more quickly than contemporary retail chains like Reliance Retail, Dmart, and Spencer Retail. This is one of the reasons why consumer platforms are responding to the shift by preparing to deliver a variety of goods outside of groceries in 10–20 minutes.

    India Ranks Second Globally in Digital Skills for Future Jobs
    India ranks second globally in digital skills essential for future jobs, showcasing its readiness for the evolving workforce.
    StartupTalkyNitin Konde

  • Paytm Adds 2.03 Lakh Stock Options to the ESOP Pool

    By offering 2.03 Lakh (2,03,137) stock options under its ESOP Plan 2019, Paytm has increased the scope of its employee stock option plan (ESOP). The company stated in an exchange filing on January 17 that it would like to notify the exchange that 2,03,137 stock options have been granted to eligible employees under the One 97 Employees Stock Option Scheme 2019 (“ESOP 2019”) by the Nomination and Remuneration Committee of the Board of the Company (“Committee”) at its meeting on January 17, 2025.

    The business added that each stock option has the potential to be converted into a single, fully paid-up equity share, each of which has a face value of INR 1. The projected total value of these stock options is INR 18.27 Cr, based on Paytm’s stock closing price of INR 899.65 a share on Friday. Paytm reported the cancellation or lapse of 17,68,469 stock options in addition to the fresh ones. In accordance with the terms and conditions of the ESOP 2019 plan, this includes the cancellation of 44,848 stock options.

    Various ESOP Pool Launched by Paytm

    Paytm distributed 1.48 lakh equity shares to qualified workers earlier this month through a number of employee stock option plan (ESOP) programs. In recent months, Paytm has witnessed a number of ESOP-related changes. Under its ESOP 2019 and ESOP 2008 schemes, the fintech giant distributed 2.44 lakh equity shares to qualified employees in December 2024. In November 2024, it additionally reserved 4 lakh equity shares under ESOP 2019 for its qualified employees. In addition, eight Paytm representatives reached a settlement with the market watchdog. These individuals settled the matter by paying a cumulative sum of INR 3.32 Cr, without acknowledging or denying the findings of SEBI.

    Paytm’s Current Financial Outlook

    In terms of finances, the fintech giant made money in the second quarter of FY25, reporting a net profit of INR 930 Cr as opposed to a loss of INR 292 Cr in the same period last year. Profitability resulted from the business selling Paytm Insider, its ticketing division, to Zomato for INR 2,048 Cr during the September quarter. For INR 2,364 Cr ($279.19 Mn) in the December quarter, Paytm sold SoftBank’s Vision Fund 2 its stock acquisition rights (SARs) in the Japanese digital payments company PayPay Corporation. On January 20, the business is scheduled to release its Q3 FY25 financial results.

    For $279.2 million, the Singapore-based affiliate of Paytm recently sold Softbank Vision Fund 2 all of its stock acquisition rights in Japan’s PayPay. As Paytm strives to reduce operations to concentrate on its main business in India, the sale is anticipated to enhance the company’s consolidated cash balance.

    Piramal Finance Partners with MobiKwik to Offer Personal Loans
    Piramal Finance collaborates with MobiKwik to provide seamless personal loans, enhancing financial accessibility for users.
    StartupTalkyNitin Konde

  • Honasa Adds Over 45K Stock Options to the ESOP Pool

    The awarding of 45,663 stock options under the employee stock option plan (ESOP) has been approved by Honasa Consumer Ltd., the company that owns modern FMCG brands like Mamaearth and The Derma Co. According to its BSE filing, the company’s nominating and compensation committee has authorised “a total grant of 45,663 stock options under Honasa Consumer Limited Employee Stock Options Plan—2018 (“ESOP—2018″) to the eligible employees.” The new stock options were worth INR 1.12 Cr based on the stock’s closing price on 17 January. The face value of each equity share is INR 10, and the exercise price is also fixed at INR 10. According to Honasa’s petition, an employee may use their vested options during their employment or within ninety days after their final day of employment. The allocation of 546,601 stock options under the same ESOP scheme was approved by the firm in September.

    Honasa Roped in Lokesh Chhaparwal as Senior Vice President

    Honasa hired Lokesh Chhaparwal as senior vice president of technology and engineering earlier this month, which coincided with the recent ESOP expansion. With an emphasis on using cutting-edge technological solutions to improve operations, Chhaparwal is expected to spearhead the organisation’s technological strategy. According to the corporation, his duties would include overseeing digital platforms, using SAP systems to optimise supply chain operations, and developing marketing technology to deliver individualised customer experiences. He will also supervise internal security protocols to protect information and guarantee operational effectiveness.

    Chhaparwal, a former AVP and Head of Engineering at Snapdeal, provides more than 13 years of experience in data strategy and product engineering. He will work out of Honasa’s Gurgaon office and support the company’s initiatives to use technology to build new products and engage customers.

    Further Developments at Honasa

    In terms of finances, Honasa reported a consolidated net loss of INR 18.6 Cr for the September 2024 (Q2 2025) quarter, compared to a net profit of INR 29.4 Cr for the previous year and INR 40.3 Cr for the June quarter prior. Honasa’s top line for D2C brands suffered as well, as operating revenue dropped by almost 7% to INR 461.8 Cr in the reviewed quarter from INR 496.1 Cr in Q2 FY24. Mamaearth, The Derma Co., Aqualogica, Ayuga, BBlunt, and Dr. Sheth’s are among the six beauty and personal care brands that make up Honasa’s product line. The company was founded in 2016 by Varun and Ghazal Alagh, a husband and wife team.

    In the midst of media stories about credit backlogs and unsold stock with distributors, Honasa had provided clarification on the extent of its remaining inventory. The company stated that, in contrast to the All India Consumer Products Distributors Federation’s claimed amount of INR 300 crore of near-expiry inventory, its distribution value chain contained a total inventory of INR 40.69 crore.

    Manipal Health Prepares $1 Billion IPO Backed by Temasek
    Manipal Health, backed by Temasek, is planning a $1 billion IPO and has begun seeking banker presentations to move forward.
    StartupTalkyNitin Konde