Check out this week's important updates from the Indian startup ecosystem.
The Reserve Bank of India (RBI) has notified the amended Foreign Exchange Management Regulations, 2024 in an effort to boost the ease of doing business for Indian startups. This will simplify the process for authorized dealer banks in opening foreign currency bank accounts for DPIIT-recognised startups. Also, it changes the definition of startup by including entities up to 10 years from the date of incorporation (as opposed to five years previously) and sets a higher turnover limit of Rs 100 Cr (against Rs 25 crore previously).
Notably, there are more than 1.5 lakh startups registered with the DPIIT. The above-mentioned changes are expected to allow more DPIIT-recognised startups to open and maintain interest-bearing accounts in Indian Rupees or foreign currency.
According to reports, global brokerage firm Bernstein reaffirmed its outperform rating on Paytm and raised its price target for it to Rs 1,000 from Rs 750 per share previously. As a result, shares of Paytm's parent company One97 Communications jumped over 6% (rallied to INR 897.90) on the BSE during the early trading hours on Friday. And with this, the fintech major continued its winning streak for the fifth consecutive trading session.
Given Bernstein’s optimistic scenario for Paytm, the company might start lending directly from its funds, improving its payment profits. And this could lead to its earnings per share (EPS) surging over 100% compared to its current estimates.
As part of its restructuring strategies, electric two-wheeler maker Ola Electric is now reportedly all set to lay off about 500 employees across teams. According to reports, the company is focusing on cost optimization and aligning its operations with its profitability goals.
Notably, this is similar to the company's move back in 2022 ahead of its Initial Public Offering, when it laid off 1,000 employees and shut down three divisions including the Used Cars, Cloud Kitchen, and Grocery Delivery.
(Credit: Marketing Maverick)
Also, the company reported a 43 percent increase in net loss at Rs 495 crore in Q2 FY25, against Rs 347 crore in the previous quarter.
Quick commerce startup Zepto has secured $350 million in its latest round of funding, led by Motilal Oswal’s Private Wealth division along with participation from Indian HNIs, family offices, and financial institutions. The investors included Raamdeo Agarwal, the Taparia Family Office, the Happy Forgings Family Office, the RP Sanjiv Goenka Group, the Cello Family Office, the Haldiram Snacks Family Office, Sekhsaria Family Office, Mankind Pharma Family Office, Kalyan Family Office, Mothers Recipe Family Office (Desai Brothers), and HNIs like Abhishek Bachchan and Sachin Ramesh Tendulkar, among others.
Notably, ahead of its stock market debut (expected next year), Zepto has raised almost $1.6 billion in funding in the last 15 months.
Mumbai-based online pharmacy and pathology brand PharmEasy has reported a 14.7% decline in its revenue for FY24 to Rs 5,664 crore from Rs 6,644 crore in FY23. Also, its net loss fell to Rs 2,533 crore from Rs 5,212 crore previously. Around 88% of the company's operating revenue came from the sale of pharmaceutical and cosmetic products, while the remaining from various rendering services including diagnostic, delivery, teleconsulting, warehousing, and commission on pathological tests.
Notably, in April 2024, it raised $216 million in a funding round led by Ranjan Pai’s Manipal Education and Medical Group among others.
B2B e-commerce unicorn Moglix has acquired Khatema Fibres (eco-friendly paper products manufacturer) for Rs 80 crore. This comes as Moglix’s plans to expand into five new manufacturing categories, boost its product portfolio, and accelerate growth. Also, according to the company, it will lead to enhanced local infrastructure and numerous new market opportunities for farmers and artisans.
Notably, Moglix recently launched Next Day Delivery in over 12 cities, with plans to expand to 40 cities.
Moglix was launched in 2015 by Rahul Garg. Through its online platform, the company sells electrical supplies, power tools, motors, and medical supplies among others.
HealthKart, one of India's rising fitness supplement brands, has secured $153 million in funding in the secondary round, led by investors ChrysCapital and Motilal Oswal Alternates. As the company said, Neo Group and HealthKart’s existing investors A91 Partners also participated in the round. Also, it announced an employee ESOP buyback worth Rs 55 crore, its first liquidity event - with an aim to benefit both current and former employees who have been part of the company's growth.
Sameer Maheshwari, Founder and CEO of HealthKart, said in a statement, "We welcome ChrysCapital and Motilal Oswal to HealthKart and hope to leverage their expertise during the next phase of growth. Very excited about our first ESOP buyback program which will create meaningful value for people who have played a critical role in building HealthKart."
