StartupTalky

Tag: ministry of corporate affairs

  • Government Expands Fast-Track Merger Route to Cover More Companies

    In an effort to facilitate business dealings and spur the practice of “reverse flipping”, which involves Indian start-ups and other companies moving their domicile from abroad to the country, the government has expanded the fast-track route for approval of mergers and amalgamations to include more categories of companies.

    More company types are now eligible for the fast-track merger process under Section 233 of the Companies Act of 2013 thanks to changes to the relevant rules that the Ministry of Corporate Affairs (MCA) has notified. The National Company Law Tribunal is not involved in this approval process.

    How Fast-Track Merger will Help the Companies?

    When the total borrowings, including loans, debentures, and deposits, are less than INR 200 crore and there is no default, the revisions have made it possible for mergers between (unrelated) unlisted companies to proceed more quickly.

    Additionally, unless the transferor company is listed, the fast-track scheme will now apply to a variety of additional transactions, including mergers between a holding company (listed or unlisted) and its subsidiary (listed or unlisted). Additionally, if the transferor companies are not listed, mergers between subsidiaries of the same holding company may receive expedited clearances.

    Key Changes in MCA Rules

    Up until a year ago, inbound cross-border reverse mergers needed NCLT permission. To expedite the approval of such bids, the government modified Rule 25A for cross-border deals on September 17 of last year. To eliminate any ambiguity, the most recent revision has brought this rule into compliance with Rule 25, which deals with expedited approvals, according to sources.

    Since many Indian-born or Indian-connected start-ups have chosen to establish their headquarters here, cases of combining a foreign holding company with its Indian fully owned subsidiary have increased in frequency in recent years. The possibility of exiting at a greater valuation in India was one of the attractions.

    According to analysts, global firms who intend to relocate their operations to India in order to take advantage of the thriving capital markets for possible listings and to combine group companies stand to gain from the move to expedite and simplify clearances for such mergers. Flipkart, Dream11, Meesho, PhonePe, Zepto, Razorpay, Pepperfry, and Groww have all relocated their parent firms from foreign jurisdictions back to India throughout the last two to three years.

    Government Push for Flexible Corporate Restructuring

    The enlarged and modified regulations, according to experts, demonstrate the government’s intention to increase the flexibility of business restructuring procedures. At the moment, only start-ups and “small” businesses, as determined by turnover, etc., are eligible for fast-track merger approvals.

    Special start-up promotion programmes and easier access to funding have also contributed to the rise in popularity of reverse flipping. It has been helpful to loosen some of the limits on round-tripping. The expedited approach would still require requesting approval from the MCA’s regional director.

    Quick
    Shots

    •Boost ease of doing business & encourage
    reverse flipping (Indian start-ups shifting domicile back to India).

    •Revision brings Rule 25A (cross-border mergers) in
    line with Rule 25 (fast-track mergers).

    •Start-ups like Flipkart, Dream11, Meesho, PhonePe,
    Zepto, Razorpay, Pepperfry & Groww have shifted parent firms back to
    India.

    •Global firms may relocate to India to tap into
    thriving capital markets & higher valuations.

  • LEAP India Transforms into Public Company, Appoints Independent Directors Ahead of IPO

    According to documents filed with the Ministry of Corporate Affairs (MCA), supply chain solutions provider Leap India is prepared to become a publicly traded business. The company has given its consent to be converted from a “private company limited by shares” to a “public company limited by shares” in accordance with LEAP India’s MCA filings. As a result, the company’s name has been changed from Leap India Private Limited to Leap India Limited, and the word “Private” has been removed.

    Independent Director Appointments Signal Corporate Maturity

    Additionally, the startup has nominated Sanjiv Gupta and Harinarayan Nair as two independent directors for a five-year term. Notably, news of LEAP India’s 2022 IPO revealed that the business was raising close to INR 1,000 Cr through the sale of shares. But in 2023, the international investment giant KKR bought the bulk of LEAP India.

    In order to raise INR 535 Cr in a fundraising round headed by private equity giant KKR through its subsidiary Vertical Holding, LEAP India subsequently filed with MCA in December 2024. The round was also anticipated to include participation from Madhurima International, FirstBridge India, and Sixth Sense Ventures, among others.

    LEAP India’s Strategic Acquisition of CHEP India

    For an undisclosed sum, LEAP India purchased CHEP India earlier this year in order to increase its reach and fortify its supply chain presence in the nation. CHEP India assists companies with supply chain optimisation and the reduction of throwaway packaging. According to VCCircle in January, the company acquired ownership of CHEP India’s warehouses, clientele, and staff as part of the agreement.

    Supply Chain Sector in India Sees IPO Boom

    Established in 2013 by Sunu Mathew, LEAP India offers a broad range of supply chain solutions to a diverse clientele from various industries, including equipment pooling, returnable packaging, inventory management and movement, transportation, and repair and maintenance. The supply chain and logistics industry in India is flourishing due to rapid commerce, e-commerce, and technology improvements.

    The supply chain industry is changing along with other industries thanks to robotics, blockchain technology, and artificial intelligence (AI). Shiprocket, an IPO-bound logistics platform, introduced Shunya.ai earlier this year. It is an agentic AI stack designed to enable D2C and micro, small, and medium-sized businesses (MSMEs) by enabling multilingual commerce.

    The logistics titan filed the DRHP through a private process and is considering an INR 2,500 Cr IPO. In preparation for its first public offering (IPO), Shiprocket also became a publicly traded business in January. Most recently, as it prepares for an IPO, the board of Bengaluru-based fintech KreditBee allegedly approved the company’s conversion to a public business.

  • Patanjali Under Fire: Baba Ramdev’s Firm Faces Scrutiny Over Financial Deal

    According to a media report, the Centre is seeking an explanation from Patanjali Ayurved Ltd on a number of financial transactions that federal economic intelligence services have identified as suspicious.

    The company has received a notification from the Ministry of Corporate Affairs, which is also looking into possible fund diversion and corporate governance violations.

    Yoga guru Ramdev’s company’s flagged transactions were judged “abnormal and dubious”; however, exact numbers have not been made public because the probe is still in its early stages. Patanjali has around two months to reply to the notice from the ministry.

    Patanjali Going Through a Challenging Time

    Patanjali Ayurved and its affiliates are facing an increasing number of legal and regulatory issues as a result of this most recent investigation. A division of the business was given show-cause notifications last year for alleged tax infractions and false refund claims.

    The company that sells traditional medicines also came under heavy fire for advertising false items that promised to cure serious illnesses like cancer. The Supreme Court cited violations of the Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954, and ordered the corporation to stop marketing its products as remedies for different illnesses.

    The Kerala Drugs Control Department stated in February 2025 that Ramdev and Patanjali were the subject of 26 pending cases under the same advertisement legislation in different state courts.

    A number of newspapers are also being sued for publishing the contentious ads. Although Patanjali Ayurved is still privately held, Patanjali Foods Ltd., a listed business, has been impacted. So far this month, the stock has fallen by almost 10%.

    Patanjali’s Financial Outlook of 2024

    According to the company’s RoC filing, Patanjali Ayurved’s overall revenue increased by 23.15% to INR 9,335.32 crore in 2023–2024 thanks to other revenue from Patanjali Foods (formerly known as Ruchi Soya) and other group companies.

    Financial data obtained through the business intelligence platform Tofler shows that Patanjali Ayurved’s other income in FY24 was INR 2,875.29 crore, compared to INR 46.18 crore in the same period last year.

    For the fiscal year that concluded on March 31, 2024, its operating revenue—which is primarily derived from net sales—dropped 14.25% to INR 6,460.03 crore.

    The July 1, 2022, transfer of Patanjali Ayurved’s food business—which includes biscuits, ghee, cereals, and nutraceuticals—to Patanjali Foods had an effect on revenue. In FY24, their total profit increased fivefold to INR 2,901.10 crore.

    For the fiscal year that concluded on March 31, 2023, Patanjali Ayurved reported a total profit of INR 578.44 crore on revenue of INR 7,533.88 crore. In FY23, Patanjali’s Ayurved, a non-listed company, earned INR 7,580.06 crore in total revenue, including other revenue.

    In FY24, Patanjali Ayurved’s advertising and promotional costs increased by 9.28% to INR 422.33 crore. The Haridwar-based company Group stated earlier this year in July that it will be selling its whole home and personal care division from Patanjali Ayurved to Patanjali Food for INR 1,100 crore.

  • Swiggy Receives MCA Approval to Include Sports Arm

    The corporate affairs ministry (MCA) has given foodtech giant Swiggy permission to incorporate Swiggy Sports Private Limited, its sports division. The company stated in an exchange filing on January 16 that the newly incorporated entity’s primary goals will be to engage in sports team ownership, management, talent development, event organisation, and facility operation; provide career services; acquire broadcasting and sponsorship rights; and promote sporting events using a variety of business models, among other activities.

    The approval follows a month after the foodtech major’s board approved the establishment of a new subsidiary to serve the sports and entertainment and recreation sectors. When Swiggy announced the establishment of the subsidiary in December, it stated that it was solely going to house the Mumbai pickleball team that it had purchased from the World Pickleball League (WPBL). According to Swiggy, the brand’s current connection in sports is restricted to owning the pickleball team’s rights in Mumbai, and there are no intentions to get further involved in sports.

    Swiggy Expanding its Network and Services

    The most recent development coincides with Swiggy‘s aggressive expansion into new markets and introduction of additional products. It just released its new “SNACC” app, which provides meal delivery in a few areas of Bengaluru in 15 minutes.  With the release of a new app called Pyng Professional last week, it also made an entry into the services marketplace business. In the meantime, Swiggy Scenes, a new service that allows customers to reserve parties and events at Swiggy’s partner restaurants, was introduced by the firm in December. Before that, Swiggy also unveiled “One BLCK,” a new premium invite-only membership club.

    In an attempt to cut down on food waste throughout its value chain, listed foodtech giant Swiggy has started a new campaign called “Swiggy Serves.” In an effort to combat hunger nationwide, Swiggy intends to redistribute excess food from its restaurant partners to underprivileged areas, the firm announced in a statement. The non-profit Robin Hood Army, based in Delhi NCR, has partnered with the Sriharsha Majety-led company on the Swiggy Serves project. By the end of 2030, it hopes to deliver 50 million meals to underprivileged communities. With the help of more than 126 restaurant partners, the two have already redistributed 2,000 meals among 33 locations as part of the recently established campaign’s trial.

    Zomato Also Catching Up

    Aiming to expand beyond its core food delivery services and hyper commerce, Zomato launched ‘District’ in August of last year with the goal of consolidating its going-out business, which includes eating and ticketing (movies and events). With this, Zomato entered a number of new markets under one corporate umbrella, including lifestyle services, sports ticketing, live events, retail, staycations, and more. Swiggy’s most recent move is expected to expand the rivalry between the two titans in rapid commerce beyond the food delivery industry.

    Dunzo App and Website Go Down Amid Employee Exodus
    Dunzo’s app and website experience downtime as the company faces significant employee departures, raising operational concerns.
    StartupTalkyNitin Konde