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Tag: Peak XV

  • Six Bankers are Finalised by Zetwerk to Lead a $500 Million IPO in 2025

    According to reports, Zetwerk, a B2B marketplace backed by Peak XV, has selected six bankers to lead a possible $500 million IPO later this year. According to an international media agency, Zetwerk has nominated Kotak Mahindra Bank, Jefferies Financial Group, Axis Capital, Goldman Sachs Group, JM Financial, and JPMorgan Chase & Co. as bankers for the impending public listing. According to the article, the company is aiming for a valuation of about $5 billion and intends to raise at least $500 million during the IPO. The size and timing of the public listing, however, could yet alter as negotiations are still in their early phases. The most recent event occurred about a month after Zetwerk’s CEO and cofounder, Amrit Acharya, told an Indian news agency that the company intends to go public within the next 12 to 18 months. Additionally, this comes after assertions from November of last year that Zetwerk had begun talks with investment banker JP Morgan for a possible $1 billion initial public offering (IPO) at a valuation of “several billion dollars.”

    Zetwerk’s Funding Rounds Till Now

    Over a month after the B2B marketplace said that it had raised over $70 million in a strategic fundraising round at a $3.1 billion valuation, Zetwerk has accelerated its market launch. Prior to its most recent fundraising round in 2023, the company was valued at $2.7 billion. In 2024, the business raised a total of $90 million from investors including UK-based Baillie Giord, Indigo cofounder Rakesh Gangwal, and Khosla Ventures. Zetwerk, which was established in 2018 by Acharya, Srinath Ramakkrushnan, Rahul Sharma, and Vishal Chaudhary, links manufacturers with suppliers and vendors for the purchase of industrial machine parts. According to the startup, its gross merchandise value (GMV) for the fiscal year 2023–2024 (FY24) was INR 17,564 Cr, or around $2.1 billion. In total, the business has raised over $700 million to far, with backers including Lightspeed, Greenoaks Capital, and Mars Growth Capital.

    IPO Fever Raising High on India’s Startup Stecor

    Indirect rivals of Zetwerk include Moglix and OfBusiness, among others. The startup has rapidly expanded its operations and strengthened its position in industries including electronics and original design manufacture over the last 12 months. As a result, Zetwerk is now the most recent Indian startup to join the IPO trend. Thirteen cutting-edge tech firms, including Go Digit, Swiggy, and MobiKwik, listed on stock exchanges and raised over INR 29,000 Cr through initial public offerings (IPOs) last year. More than twenty firms, including Ather Energy, BlueStone, CarDekho, CaptainFresh, Ecom Express, Fractal, and Infra Market, have aspirations to list on the bourses in 2025.

    Urban Company to File INR 3,000 Cr IPO Draft by March-End
    Urban Company is set to submit draft documents for its INR 3,000 crore IPO by the end of March, marking a significant step toward its public listing.
    StartupTalkyNitin Konde

  • Peak XV Offloads About INR 82 Crore Worth of MobiKwik Shares

    On December 26, Peak XV Partners Investment Holdings III, a foreign venture capital investor in One Mobikwik Systems, sold shares in the company for INR 81.63 crore through open market transactions. Recently, One Mobikwik Systems was added to the benchmark index. According to an NSE bulk sale, Peak XV Partners Investment, formerly Sequoia Capital India and SEA, sold a 1.54% share in the business. At INR 679.38 per share, the investor sold off 12.01 lakh shares.

    As of December 16, Peak XV Partners Investment Holdings III owned 2.81% of the business, per BSE statistics. However, as of December 6, Peak XV Partners Investment Holdings III owned 3.67% of the business, according to the Red Herring Documents. for a premium of 57.71%, the stock made its debut on the National Stock Exchange for INR 440 a share. At INR 442.25 per share, it was listed on the BSE, representing a 58.51% premium.

    MobiKwik’s Recently Concluded IPO

    The initial public offering (IPO) of MobiKwik Systems, which ended on December 13, was subscribed for 119.38 times, with qualified institutional purchasers driving demand. Only a new issue of shares valued at INR 572 crore was included in the IPO.

    The IPO proceeds will be used by MobiKwik for a number of initiatives, such as INR 150 crore for financing organic financial services growth, INR 135 crore for payment services, and INR 107 crore for investments in data, machine learning, artificial intelligence, and product and technology research and development. The remaining INR 70.28 crore will be allocated to general corporate objectives and capital expenditures for its payment devices division.

    About MobiKwik and Expansion of Fintech Sector in India

    MobiKwik, a digital banking platform that provides a range of financial solutions for both customers and merchants, was founded in 2009 by Bipin Preet Singh and Upasana Taku. The fintech startup makes money by offering payment gateway services, buy now pay later (BNPL), and consumer payments. In India’s growing fintech market, it faces competition from companies like Paytm, PhonePe, and Google Pay. Recently, MobiKwik became public on the stock exchanges. Its initial public offering (IPO) included no offer for sale and only a new issuance of shares valued at INR 572 Cr.

    Company’s Performance at BSE

    MobiKwik’s stock debuted on the BSE at INR 442.25, which was 58.5% higher than the issue price of INR 279. The shares were listed at INR 440 each on the NSE, which was 57.7% more than the issue price. The stock has been rising steadily ever since. Dolat Capital, a broking firm, began covering the stock earlier this month with a “BUY” rating and a price objective of INR 500. In the first quarter of FY25, MobiKwik recorded a net loss of INR 6.6 Cr, down from a net profit of INR 3 Cr in the same period last year. During the reviewed quarter, operating revenue was INR 342.2 Cr.

    IndiQube Files DRHP for INR 850 Cr IPO
    IndiQube, a leading coworking space provider, has submitted its Draft Red Herring Prospectus (DRHP) for an IPO worth INR 850 crore, marking a major milestone.
    StartupTalkyNitin Konde

  • Shareholders of Awfis Space Solutions are Expected to Offload Shares valued at INR 583 Crore

    According to reports, Delhi-based Link Investment Trust, Mauritius-based Bisque Limited, and prominent venture capital company Peak XV Partners intend to offload Awfis shares valued at INR 583 Cr. The three investors will collectively offload a 12.2% interest, or 85.8 lakh shares, in the flexible workspace solutions company through a block deal, according to a media outlet, which cited sources. The investors will offload the shares for INR 680 each. Compared to the stock’s closing price of INR 717.05 on 10 December, this indicates a 5.2% discount. IIFL Capital Services and ICICI Securities are the deal’s book runners.

    As of September 2024, Bisque and Link Investment Trust owned 14.38% and 0.36% of Awfis, respectively, while promoter Peak XV owned 10.92% of the coworking space provider. Awfis’s stock has increased by more than 70% since its launch in May, although it has decreased by 7.5% in the last month.

    Brokerages Continue to be Bullish on the Company

    Up to five analysts that follow the company have a “BUY” rating on the stock, indicating that brokerages are still positive on the business. The optimistic forecast is primarily due to Awfis‘s quick expansion and acquisition of new office space. The company said last month that it would develop and oversee the National Stock Exchange’s 1.65 lakh square feet of office space in Mumbai. Rounak Real Estate Consultants, a company that specialises in high-value real estate advice services, helped to facilitate Awfis’ collaboration with the NSE.

    Amit Ramani founded Awfis in 2015, and as of March 2024, it has 181 facilities, over 1.1 lakh seats, and 5.6 million square feet of billable space, making it the largest flexible space operator in India. The business began as a coworking network before branching out into the market for tech-enabled workspace solutions.

    Awfis Financial Dynamics

    In Q2 of the fiscal year 2024–2025 (FY25), it posted a consolidated net profit of INR 38.67 Cr. In Q2 of FY24, on the other hand, it reported a net loss of INR 4.34 Cr. During the reviewed quarter, operating revenue increased 40.46% from INR 208.15 Cr in Q2 FY24 to INR 292.38 Cr. On the BSE, Awfis’s shares ended on December 10, trading session 0.15% lower at INR 716.95.

    According to Amit Ramani, chairperson of Awfis Space Solutions, the recently signed NSE contract will help the company’s income in both the current fiscal year and the fiscal year 2025–2026. Ramani had told a media outlet that the contract would “certainly help” with the 30% revenue projection that the company had provided for FY25.

     Awfis and Nyati Group also collaborated in August to build an extra 3 lakh square feet of Grade-A workspace. It intends to open first-rate flexible workspaces in the prestigious commercial buildings “Nyati Empress” in Viman Nagar and “Nyati Enthral” in Kharadi, both owned by the Nyati Group.

    YesMadam Faces Backlash Over ‘Fired for Stress’ Stunt
    YesMadam’s ‘Fired for Stress’ stunt sparks criticism, with the company facing backlash for its controversial PR move perceived as insensitive.
    StartupTalkyNitin Konde

  • Former MD of Peak XV Piyush Gupta Establishes Kenro Capital and Considers Secondary Transactions

    As early investors in startups increasingly seek exit opportunities, Piyush Gupta, the former managing director of venture capital firm Peak XV, established Kenro Capital on 28 November to focus on late-stage secondary deals. Gupta told a media house that the fund will look for acquisitions in the consumer and financial services sectors, with an emphasis on tech-led businesses. According to him, the company intends to invest $20–30 million per transaction, with the possibility of deploying bigger sums through co-investment opportunities. This occurs months after Gupta saw a need in the secondary fund industry and left Peak XV to start his own fund.

    “Think of all the corporate venture investors, founders, workers, and hundreds of venture firms that invest in startups. Who do they turn to when they need to come up with an escape plan? No one is there. And we are concentrating on that chance,” he stated. Additionally, Gupta stated that Kenro is in talks to raise money, but he withheld further information.

    Requirement of Secondary Fund is Essential

    Due to the mature VC environment in India, where some funds are now 17–18 years old, Gupta thinks that a secondary-only fund is crucial. This creates demand for exits. He went on to say that secondary funds now have more dependable and transparent liquidity opportunities as a result of the liberalisation of the Indian IPO market. “The IPO exit flywheel is operating slowly, and capital markets have deepened significantly,” he continued.

    Kenro Capital will pursue minority holdings in growth companies that have reached revenue scale, are profitable, or are close to profitability within the priority industries. Additionally, the business will favour companies that have the potential to go public two to three years following its investment.

    Secondary transactions let additional investors place bets on late-stage businesses while enabling current investors to cash out all or part of their investment in a startup. More than a dozen firms, including Capillary Technologies, ixigo, Urban Company, Porter, and Pocket FM, underwent secondary transactions in the first half of this year. Similar agreements are currently being made at firms like Lenskart, Acko, and OfBusiness. It is important to remember that Gupta is not the first person to profit from this year’s trend of secondary acquisitions.

     A new fund with a target corpus of INR 150 Cr (about $18 Mn) and a major concentration on secondary market transactions was unveiled by LC Nueva Investment Partners in October. 360 ONE Asset, an asset management firm, introduced the INR 4,000 Cr Special Opportunities Fund-12 earlier in May with the goal of investing in late-stage entrepreneurs. According to the company, it is the first alternative investment fund (AIF) in India that is specifically focused on the secondary market for private equity.

    Kenro Capital to Focus on Growth Secondaries in India and Southeast Asia’s Venture Ecosystem

    The venture ecosystems in India and Southeast Asia will be the primary focus of Kenro Capital’s investments. Norbert Fernandes, a private equity expert with experience at Temasek, IvyCap Ventures, and TR Capital, joins Gupta. Gupta will remain stationed in Singapore, while Fernandes will be located in Mumbai. The fund intends to expand its staff to “five to six investment professionals.”

    Tesla Trademark Case: Delhi High Court Schedules Next Hearing for April 2025
    The Delhi High Court postpones the Tesla Inc. vs. Tesla Power trademark dispute hearing to April 2025 as mediation efforts at the Delhi Mediation Centre continue.
    StartupTalkyNitin Konde

  • Razorpay Collaborates with Lightspeed and Peak XV to Finance and Guide B2B Startups

    In partnership with venture capital firms Peak XV and Lightspeed, fintech company Razorpay announced the Razorpay Venture Investment Programme on November 13, 2024. The programme will invest in more than 50 early-stage business-to-business (B2B) enterprises.

     Every year, the company and its venture capital partners will invest in ten to fifteen early-stage startups, offering B2B startups at different stages of development financial, technological, and leadership support. The initiative has the potential to raise up to $1 million for early-stage enterprises.

     Based in Bengaluru, Razorpay is a business-to-business (B2B) omnichannel banking and payment platform. Over the next five years, India is expected to welcome an additional 10-15 unicorns in the B2B sector due to the rising interest in assisting entrepreneurs in this field, the business said in a statement.

    Companies Benefiting from  Razorpay’s Application Programming Interface

    Razorpay‘s sandbox environments and API (Application Programming Interface) stack will be accessible to early-stage finance startups. This will cover product alliances, customer relationships, and introductions to the distribution network.

    The company’s founders and other members of the executive team will advise the entrepreneurs one-on-one. The programme for the entrepreneurs will be run by Vishnu Acharya, Razorpay’s head of strategy and corporate development. According to Razorpay, the business-to-business market is still one of the most promising sectors with significant development potential. According to Harshil Mathur, co-founder and CEO of Razorpay, the company hopes to facilitate this process with the Razorpay Venture Investment Programme by giving founders access to the appropriate technology, partnerships, and coaching to enable them to innovate and scale more quickly.

    Startups Will Get Guidance from Around 3000 Founders

    Razorpay intends to use the programme to provide one-on-one coaching from its founders and other executives, as well as to expand access to its API stack and integrate it with its tech platform. Additionally, startups will get access to the Razorpay Rize network, which consists of more than 3,000 entrepreneurs and companies. 

    Ishaan Mittal of Peak XV and Dev Khare of Lightspeed expressed excitement about the programme, pointing out that it has the ability to promote ideas aimed at SMEs by utilising Razorpay’s payment infrastructure and wide-ranging SME network.

    B2B Startups In India

    The magnitude of India’s mostly unorganised B2B industry and disjointed supply chain, according to a report by Bessemer Venture Partners, makes B2B markets extremely promising. B2B e-commerce made up only 1% of India’s total B2B market in 2022, which is a sharp contrast to its very small share in 2019. The adoption of B2B e-commerce is expected to have a notable uptick, nevertheless, with estimates suggesting that by 2030, its proportion of the market would be just less than 5%.

    Report further predicts that tech-enabled, online-first B2B marketplaces will offer an incredible $200 billion business opportunity by 2030. It’s crucial to remember that, despite this tremendous development, online B2B gross merchandise value (GMV) would still only make up around 5% of all B2B transactions in India, which is far less than the penetration in other nations.

    Business Model of Razorpay | How Does Razorpay Make Money?
    Razorpay is a leading payment gateway in India that enables businesses to accept online payments. Here, let’s understand how Razorpay makes money.
    StartupTalkyAbinaya Arangarajan

  • Slashing 16% of its Biggest Fund, Peak XV

    The growth-stage funding to the start-up ecosystem has slowed down dramatically over the previous two years, leading venture capital company Peak XV to reduce the size of its largest fund by sixteen percent. In May 2022, the company secured $2.85 billion for its ninth fund, and it will give its limited partners (LPs) a return of roughly $465 million.

    The firm is cautiously investing in its growth fund while keeping an eye on seed and venture stage opportunities, given the highly valued public market in India. Consequently, it has decided to reduce the size of its 2022 vintage funds by sixteen percent, according to a statement released by Peak XV. While maintaining the same economics for its seed and venture funds, Peak XV Partners has chosen to link a portion of its carried interest to profit distributions in its growth and multi-stage funds. The difficulties in deploying capital during the last 24 months, particularly for growth and late-stage businesses, are reflected in the downsizing.

    Why It Opted for This Move?

    In light of the difficulties in deploying capital over the last 24 months, particularly for growth and late-stage enterprises, and the growing compliance and governance concerns that Indian startups are facing, the firm has decided to shrink the size of its fund.

    A number of businesses in Peak XV’s portfolio, including GoMechanic, BYJU’S, and Mojocare, have faced serious challenges as a result of these problems. Additionally, in order to get better long-term valuations, companies have begun to look to public markets for expansion and late-stage finance.

    The Move Has Been Receiving Positive Feedback

    Feedback from a large non-profit LP indicates that the decision has been well accepted. There has never been more firm belief in the benefits of investing in India and Southeast Asia. Strong portfolio performance has put the company on track to have its second-best year ever for exits and dividends, according to the VC firm. According to reports, Peak XV would also reduce the management fee it charges to its investors, or LPs, from 2.5 per cent to 2 per cent for the fund.

    Concurrently, the venture capitalist is withdrawing from Zomato and Mamaearth and divesting its holdings in start-ups like K12 Techno, Pocket Aces, and PingSafe through mergers and acquisitions (M&As) and secondary deals. Almost 700 companies have received backing from Peak XV Partners, an aggressive start-up investor in India that separated from US-based VC Sequoia Capital in June of last year. The enthusiasm that the Indian public markets are currently experiencing is similar to what the private markets went through in 2021 when the country created a record 45 unicorns—startups valued at one billion dollars or more—in just a single year.

    Top 10 Venture Capital Firms in India | Active VC Firms in India
    VC investments are currently recorded at $14.4 bn. Here’s a list of Top 10 venture capital firms in India that actively invests in Indian startups
    StartupTalkyAnga Mahatara