Ankit Singhal

SCOOP: Urban Company has turned profitable at PBT level (profit before tax) on a consolidated basis in the last month. The development will potentially smoothen its public listing plan which is likely to happen in 2025. My story:

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The e-commerce startup Meesho has raised $275 million in a new funding round, pushing its valuation to approximately $3.9 billion. This funding, part of a larger round expected to exceed $500 million, includes secondary transactions. Notable investors like WestBridge Capital and Norwest Venture Partners are participating in this round, joining Meesho's impressive list of backers, including Meta, Fidelity, Peak XV, Prosus Ventures, B Capital, and SoftBank. However, Meesho faces increasing competition, with Amazon India recently launching Bazaar, a special store featuring affordable fashion and lifestyle products. Despite this, Meesho's focus on an asset-light model and lower fulfillment charges has helped it capture nearly half of India’s annual 3PL e-logistics shipment. For the latest secondary coverage and trading SaxonWeber | ShareWell #secondaries #saxonweber

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Swiggy IPO 😀 😍 The capital markets regulator SEBI has given the big food and grocery delivery company Swiggy the go-ahead to begin its eagerly awaited $1.25 billion initial public offering. 👏 👉 Once Sebi approves both revised draft prospectuses, Swiggy will submit them under the confidential filing process. The first will address criticism from the regulator, while the second will be open for public comments for 21 days. 👉 The company won't be able to start roadshows for the IPO until after the final prospectus has been filed, according to sources. Celebrity Investments 😎 High-net-worth individuals are increasingly investing in tech firms, as seen by Rahul Dravid and Karan Johar's purchase of Swiggy's pre-IPO shares. 😊 Ahead of Swiggy's initial public offering (IPO), a number of celebrities are investing in the meal delivery business through the unlisted market. 🤗 Pre-IPO Swiggy shares were heavily traded in the unlisted market in a recent round, with 200,000 shares already owned by well-known individuals. 😉 During its pre-IPO rounds in the secondary market, Swiggy received investments from Madhuri Dixit Nene, Amitabh Bachchan, and Ritesh Malik, the founder of Innov8. 😇 Global venture capital behemoths like SoftBank Vision Fund, Accel, and Prosus have made investments in the IPO, and the business has also raised money through secondary markets. 🙂 Raamdeo Agrawal, the chairman of Motilal Oswal Financial Services, has also invested in Swiggy. 😊 Swiggy Success 🙌 👏 👍 Founded in 2014, Swiggy was valued at about $13 billion in April. In India, Swiggy has completely changed the food delivery scene, and following their development may be quite profitable. 👍 The company's continuous innovation—which ranges from grocery services to food delivery—has been crucial to preserving its competitive edge in the market. 👍 As of March 31, 2023, the company has over 4,700 workers and $1.09 billion in yearly revenue. 👍 With an offer for sale (OFS) component of up to Rs 6664 crore ($800 million), the IPO is anticipated to raise Rs 3750 crore ($450 million) in new capital. 👉 Swiggy’s upcoming IPO is anticipated to be highly lucrative for early investors .Please Share Your views 

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Investors are becoming extremely conscious of seeking companies with high CAGR and strong potential for exits in today's funding climate. Urban Company's recent $50 Mn fundraising leading to Snapdeal, and Titan Capital's successful exit with 195X returns from the hyperlocal services startup exemplify such opportunities. As investors are prioritizing governance and compliance along with betting on founders and industry nowadays, stories like these offer motivation for strategic investments. I hope 🤞.

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Q-Commerce overtaking traditional e-commerce? Currently we are seeing a big boom in terms of the different SKUs being sold in Quick commerce apps like Zepto, Blinkit, etc. - Atomberg Technologies 's fans - Sony's PS5 - Samosa, Chai and what not - Digital Gold from Jar! Zepto is in talks to raise $300m for its broader ecommerce play. While Swiggy is preparing to file for an IPO this year, incumbent Flipkart is readying its entry into quick commerce. Zomato has invested $240 million in Blinkit over the last one year. Taking a step back, the lines between quick commerce and traditional e commerce have started to become increasingly blurred with QCom pretty much catering to every needs! Also, multiple reports suggest that QCommerce can potentially become bigger than traditional e commerce in India!  Case in point : According to Goldman Sachs, the valuation of Blinkit is greater than Zomato's core food delivery biz! Non-grocery boom in Q-Commerce: Categories including beauty, toys, health and electronics are witnessing robust sales growth on quick-commerce platforms overall. While the overall base for the new categories is still small, aggressive expansion by these players is starting to ensure a dominant presence for these categories. Plus AOV is higher which also comes with better margins, making it a win-win! Case in point: Zepto - 2x sales MoM in segments such as toys and electronics accessories - Beauty category expanded 3x QoQ - ~15% of Zepto’s $1.2bn annualised gross sales currently comes from non-grocery products (Source: Goldman Sachs) For several D2C quick commerce has become the fastest growth channel as well as the platform with highest customer engagement This is definitely a positive for the consumers and the Q-Commerce players, but is everything on the up and up?   As the demand for space on quick-commerce platforms skyrockets, niche D2C cos in segments like FMCG, beauty and personal care, and health and fitness are agreeing to pay a 30-45% commission on sales, besides shelling out on advertising and discounting on these Q-Com platforms. On top of the commissions, brands are also regularly spending around 20% of their total sales on ads on the platforms, and discounting their products by about 20-25% (totaling 60-70% revenue!). This is in stark contrast to the 10-20% commission that large FMCG cos pay these platforms reflecting the intense competition for visibility. The brand's scale and comparison with competitors are crucial considerations when it comes to new listings. On the positive side, smaller D2C brands have seen 40-60% total revenue coming from Q-Commerce compared to ~10-20% from traditional ecommerce, which is surprising! Essentially, Q-com currently has a BIIIG Bargaining power against new D2C brands and can essentially make or break their businesses! Is this sustainable on the long run? #ecommerce #quickcommerce #india #zepto #businessmodel #d2c #startups #LIPostingChallenge

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Thanks Bismah and Inc42 Media for the insightful coverage and deep dive into the vital role of operator VCs! Bismah's thoughtful analysis underscores the growing need for operator VCs in today's startup landscape. As an operator VC , I've witnessed firsthand how founders increasingly value more than just capital. They seek partners who bring operational expertise, strategic guidance, and an extensive network to the table. These elements are crucial for driving sustainable growth and navigating the complexities of scaling a business. At GrowthCap Ventures , we understand the unique challenges faced by early-stage startups, which is why we prioritize offering not just funding, but also hands-on support and access to our extensive network. Together, we're empowering founders to realize their vision and build transformative businesses. #OperatorVC #StartupEcosystem #Gratitude

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Thoughts on Zomato's recent acquisition of Paytm's Movie and Event Biz. 1. Right now Zomato is getting multiple of ~200 on it's EBIDTA, they paid multiple of ~80 (profit of 27 crore). For next couple of years they may continue to trade at ~100 multiple so from that POV it should boost their M cap or help maintain very stretched valuations if not boost them further. 2. It's already a ~9% EBDITA margin business for Paytm (300 cr revenue). Book my show made a PAT of ~85 crore on revenue of ~1000 crore last year (~8.5% PAT). This margin is better than grocery ever will be so margin accretive. 3. Zomato also wants going out biz to be worth 10,000 crore turnover (this is already at ~3500 crore GOV business, yet to make profit in zomato's case). This acquisition is good addition to this biz and fits in well with their ambition of making this the 3rd large business from house of Zomato. 4. Going out / Movie Ticketing is a duopoly market with Bookymyshow as only other large player. Zomato with it's execution rigour may be gunning for No.1 spot. If they make it happen, they will be No.1 player in 3 business. A very difficult feat. Paytm has 30-40% market share in ticketing and movie space. 5. Zomato also sitting on 12000 crores of cash. This is not generating more than FD returns I presume. So this is a good avenue for cash deployment as such opportunities are hard to come by. 6. They may look at entering food biz for movies. This is Large and immensely profitable segment. PVR made 2000 crore of revenue from selling F&B. Although I doubt PVR will be okay with that given 30-40% of their revenue and likely a higher share of profit comes from food. But I feel that some sort of integration is likely on cards. Overall a good buy! Likely to be good for consumers as well. ✅ Ref - News Article, Zomato Quarterly Updates

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Zepto’s rapid rise: strong fy24 results and $350 million domestic funding ahead of ipo Zepto continues to lead India’s quick-commerce revolution with an impressive mix of financial growth and strategic funding. The company’s FY24 revenue surged by 120% to $536 million, up from $244 million in FY23, driven by strong customer demand and operational efficiencies. At the same time, net losses narrowed to $150 million, with loss margins improving from -63% in FY23 to -28% in FY24. Notably, 75% of Zepto’s stores achieved EBITDA positivity as of May 2024, highlighting its operational strength. Adding to this momentum, Zepto recently raised $350 million in a fully domestic funding round led by Motilal Oswal Wealth Limited, valuing the company at $5 billion. This round, the largest-ever 100% domestic fundraise in India’s startup ecosystem, included high-profile investors such as Raamdeo Agrawal, the Taparia Family Office, Mankind Pharma Family Office, and RP Sanjiv Goenka Group, as well as brands like Haldiram Snacks and Cello. Celebrities Abhishek Bachchan and Sachin Tendulkar also participated. Zepto has now raised $1.6 billion over the past 15 months, securing its financial position as it prepares for its IPO in 2025. Co-founder and CEO Aadit Palicha, emphasized the significance of this funding, stating, “When we started, the risk appetite among domestic investors was limited. Today, we are humbled to lead a fundraise of this magnitude, setting a precedent for other startups.” The funding will be used to scale operations, including expanding to 700 dark stores and growing the Zepto Café service, which currently delivers 30,000 orders daily. Zepto’s Gross Merchandise Value (GMV) has surpassed $1 billion, cementing its position as a leader in the quick-commerce market. With a 29% market share, it is second only to Blinkit (46%), outpacing Swiggy Instamart (25%). As India’s most-funded startup this year, Zepto is not just scaling fast but also staying focused on profitability and operational excellence. Its path to profitability by FY25 and emphasis on domestic ownership are setting it apart as a standout in India’s startup ecosystem. #quickcommerce #startupgrowth #zepto #indianstartups #retailtech #ecommerce #fundingnews #iposuccess #domesticfunding #darkstores #zeptocafe #growthstrategy #profitability #hyperlocal #businessinnovation #investmentnews #supplychain #aov #futureofretail #consumertrends #businessnews #retailstrategy #asiastartups #india #fooddelivery #marketleaders #fundingmilestones #logisticsinnovation #startupexecution

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Zomato's Bold Play: Acquiring PayTM's Ticketing Service to Disrupt BookMyShow's Dominance In a game-changing move, Zomato has stepped into the entertainment and ticketing arena with the ₹2,048 crore acquisition of PayTM's ticketing service. This strategic acquisition is not just about expanding Zomato's portfolio—it's a calculated move to challenge BookMyShow’s stronghold in the market. Here’s why this deal could reshape the entertainment landscape in India. - The Unchallenged Giant: BookMyShow: BookMyShow has long been the go-to platform for movie and event ticketing, boasting an impressive ₹1,000 crore in annual revenue. A staggering 70% of this comes from ticket sales, with the remaining 30% from organizing live events. Its dominance in the market has been virtually unchallenged—until now. - PayTM's Ticketing: A Hidden Gem: PayTM’s entertainment and ticketing service, though smaller, brings in ₹297 crore annually—roughly one-fourth of BookMyShow’s ticketing revenue. While this might seem modest, it’s the untapped potential and synergy with Zomato’s ecosystem that makes this acquisition so intriguing. - Zomato's Growing Empire: Zomato has already established itself as a leader in the dining out and food delivery space. Its going out vertical, which encompasses dining experiences, is projected to generate ₹400 crore this year. With the addition of PayTM's ticketing business, Zomato's total revenue in this sector could hit ₹700 crore. This positions Zomato as a formidable contender against BookMyShow, setting the stage for a fierce rivalry. - Why Zomato Could Win : Marketplace Mastery: Zomato’s expertise in scaling marketplace businesses is unmatched. Unlike PayTM, Zomato has a proven track record of building and growing its verticals, giving it a distinct edge in integrating and expanding its newly acquired ticketing service. *Synergies and Cross-Promotion: Zomato can seamlessly integrate ticketing into its existing platform, offering users a holistic experience. Imagine booking a dinner and a movie in one go, or snagging tickets to a concert while planning a night out. The cross-promotional opportunities are endless, which could drive significant user engagement and revenue growth. *Enhanced User Experience: By combining dining and entertainment under one roof, Zomato can offer a more comprehensive service that not only retains existing users but also attracts new ones. This could lead to higher customer loyalty and a larger market share. *Zomato’s acquisition of PayTM’s ticketing service isn’t just a business deal—it’s a strategic move that could disrupt the status quo in India’s entertainment and ticketing industry. With Zomato’s ability to scale and innovate, this could mark the beginning of a new era for consumers, where competition drives better services and more choices. #Zomato #BookMyShow #PayTM #Acquisition #EntertainmentIndustry #BusinessStrategy #MarketDisruption #DigitalTransformation #CustomerExperience #SAAS

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OYO Hits Pause on IPO Again, Eyes Private Funding Amidst 75% Valuation Drop OYO Hotels & Homes has withdrawn its IPO application for the second time, opting instead for private funding. This decision comes as the company's valuation has plummeted by nearly 75% from its peak, now seeking funds at a valuation between $2.3 billion and $3 billion. Despite significant backing from SoftBank, OYO's ongoing financial challenges and a chilly market for tech IPOs have prompted this strategic pivot. CEO Ritesh Agarwal is personally involved in securing up to $90 million in new investments, aiming to stabilize the company's finances and operations. #OYO #StartupNews #IPOWithdrawal #PrivateFunding #Valuation

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Challenging the Traditional "Right to Win" Narrative in Startups 🤔 The startup world often talks about a founding team's "right to win" - typically measured by domain expertise in the industry. But I wonder if this is a narrow view. Consider these examples: 🏨 Ritesh Agarwal built OYO without any hospitality experience - just a deep understanding of budget travelers' pain points as one himself 💄 Falguni Nayar created Nykaa at 50 with no direct experience in beauty/retail - but she understood the Indian woman consumer deeply 🍲 Deepinder Goyal Kalra built Zomato after noticing long lines for food services while working at Bain. The "right to win" can come from multiple sources: - Deep personal experience as a consumer - Pure passion to solve a problem - Obsession with product excellence - Fresh perspectives unburdened by industry assumptions This hits close to home for me. As I build Elfina Health, I often get asked on my "right to win". But my personal mental health journey has given me something equally valuable - authentic user perspective and an unwavering commitment to solving this problem. Sometimes, being too entrenched in an industry can blind you to innovation. The most disruptive ideas often come from outsiders who see problems with fresh eyes and aren't constrained by "how things have always been done." Yes, there are domains like deep tech where technical expertise is crucial. But for many problems, especially in B2C, understanding your users' pain points intimately and being relentlessly focused on solving them can be your strongest "right to win." What's your take on this? Does every founder need domain expertise to win? #Startups #Entrepreneurship #RightToWin #Innovation #StartupIndia

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2021: Only grocery delivery app in India with 10 minutes delivery 2024: Competitor chasing the '10 minute' brand segment Zepto is the only player sticking to its original promise - and is clearly acing it Scaling up a grocery delivery business is particularly challenging in India. And adding up a unique attribute, as huge as this –  has clearly been game changing for Zepto. Success didn’t come easy to Zepto too, There was a time when all the Q-commerce players faced backlash & people questioned the safety of drivers. Some brands stopped claiming the delivery time altogether, from “groceries in 15-30 minutes”, they went to “groceries in minutes” But Zepto didn’t, it went on to install a myriad of dark stores across locations, and is already serving superfast deliveries in 10 cities. Top 3 factors that helped Zepto drive exceptional growth over a very short span of time: - Captivating Customer Experience: The platform served a deeply engaging user experience and the service promise was being consistently fulfilled – a powerful combo. - Outstanding Retention: All thanks to near-perfect buying journey, Zepto achieved a retention rate which was considered only to be a fantasy for the industry earlier. - Not slowing down: More dark stores and continuous geographical expansion at the same time helped the startup acquire customers in huge numbers. Zepto cracked the key to scale in the quick commerce space by constantly growing at the same pace, and not compromising customer satisfaction at the same time – simple yet not easy. A perfect example of go big, go fast – it is surely a fascinating study for the space creators. No matter the circumstances, the brand didn’t let go of its biggest differentiator, eliminating all the question marks experts had put to its launch. What do you think is going to be the future of grocery delivery space in India? #casestudy #growth #startup

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Today, we have built a Million Cases, Peeperly, OMGS and several other D2C brands, that collectively do over 100 thousand orders every month.   Last FY we crossed 100 Cr.+ in collective sales revenue (Bank revenue, not Shopify) that all while remaining bootstrapped and profitable. Along the way of building my business, I realized a few things that I would love to share with you. Here are 4 lessons I want to share after creating 7 successful D2C brands. Lesson 1: You don’t need a fancy MBA degree to scale a business. → I don’t have an MBA degree, nor have I attended a fancy college.  You can make a business as big or as small as you want. All you need is “speed” to scale it. Lesson 2: Keep it simple → Trust me, you can do great business without a high-end website, a large office, and IITians on your side. Start off with the limited resources and scale it from there. Lesson 3: Delegation Boosts Growth → You can’t make a BIG business without a team. Don’t try to do everything yourself, even if you think you can, you shouldn’t. Hire good talent, hold them accountable for results, and grow together. Don’t compromise great talent to save some bucks. That strategy almost never works. Lesson 4: Don’t Overlook sales → Business is Sales, Sales is Business. You need money to build a team, to invest in tools and resources, and for almost everything else that is required to be done to grow and thrive. So, track every step of your sales funnel such as website traffic, most viewed products, and checkout to cart abandonment rate. Make improvements accordingly. Always remember you can always make it 1% better. What’s your biggest learning from your entrepreneurial journey? PS: Loved the read? Share this in your network and follow me, Krishan Kumar for more content like this. #EntrepreneurialJourney #BusinessLessons #Zopoxo

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Consumer is the King. Be it our recent Lok Sabha elections or the two recent strategic changes made by the startup founders basis the market feedback : 1. #Zomato - Reversing decision of its ONLY Veg delivery guy's green attire. 2. #OYO Hotel - Ritesh Agarwal found a strong reason to include family in OYO's hotel fun. Based on Ritesh's twitter post, assuming the script is written by Tanmay Bhat. He never fails to touch the obvious issue in the most authentic & contextual way. I believe his understanding of consumer psychic matches with the era of ad guru #PiyushPandey. Interesting : https://cl.gy/IPMiL #startup #oyo #zomato #consumerism #brandpositioning #riteshagarwal #tanmaybhat Tanmay Bhat

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Sujith Nair, Beckn's WhatsApp-averse, badminton-loving chief mover and shaker, gave us a peek into the world's first # e-commerce protocol. Imagine if Colgate wanted to sell a lot of toothpaste, would it open separate exclusive stores on every street? NO! Instead, it ensures its products are available in all stores where people come to shop, and not just toothpaste. Similarly, Beckn is a way for an online business to make its products and services available on other stores (popular daily-use consumer apps) instead of setting up its own store (its own consumer app) and waiting for customers to come in droves! The Beckn Protocol underpins Open Network For Digital Commerce (ONDC) and is a universal translator for e-commerce platforms. We would normally call it the Rosetta Stone for digital services, but now we have BHASHINI 😉 . It allows disparate systems to "speak" to each other seamlessly. The Beckn Protocol has become a verb in the tech world. "Just Beckn it!" has become a common phrase among developers when discussing open-source solutions for digital commerce. In fact, we like it so much that we are using Beckn use cases as our episode artwork (instead of our normal groovy cover art) to spread the word in our own little way. Some may even argue that the yellow and black in the artwork denote open mobility networks (read taxis) 😀. The even more nerdy might catch the movie reference in the title 🎬. So, is it an app? Is it an aggregator? Is it a platform? No. It is a Super Capability - #decentralised and #open. Listen, learn and use. sujith nair | Pramod Varma | Sanjay Purohit | Shankar Maruwada | Shireesh Joshi | T Koshy | Namma Yatri | FIDE | Antler | Bingepods (Ideabrew Studios) | OpenExO | Thinkers360 | IBM Alumni | Microsoft Alumni Network | The RSA (The royal society for arts, manufactures and commerce) | World Economic Forum | Digital India Corporation | nasscom | Abhishek Singh | Nilesh | Sheetal https://lnkd.in/dydrjnbU

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