Insurtech company Go Digit General Insurance’s profit after tax (PAT) zoomed 176.46% to INR 118.52 Cr in the third quarter (Q3) of the fiscal year 2024-25 (FY25) from INR 42.87 Cr in the year-ago period on the back of strong growth in its revenue and controlled rise in expenses.

On a sequential basis, the listed insurtech giant’s profit surged 32.46% from INR 89.47 Cr.

Founded in 2017 by Kamesh Goyal, Go Digit General Insurance is a full-stack digital insurance company. It offers a wide range of non-life insurance policies across sectors such as motor vehicle, health, travel, and property among others.

The company reported a 10.24% increase in gross written premium (GWP) to INR 2,676.78 Cr in the quarter ended December 2024 from INR 2,427.97 Cr in Q3 FY24. Net premium written also grew 5.13% to INR 2,084.14 Cr in Q3 FY25 from INR 1,982.39 Cr in the year-ago quarter. 

To comply with the IRDAI (Actuarial, Finance and Investment Functions of Insurers) Regulations, 2024, Go Digit started recognising GWP on a 1/n basis where “n” denotes the policy duration for applicable long-term products, effective October 1, 2024.

While this resulted in a loss of 60.81 Cr in its gross premium written during the quarter under review, it had no impact on its PAT, the company said in an exchange filing.

Including other income, total revenue stood at INR 2,371.86 Cr during the quarter under review, up 7.11% from 2,214.36 Cr in Q3 FY24.

The premium retention ratio, which indicates the company’s ability to retain customers, fell to 83.8% in Q3 FY25 from 87.9% in the corresponding quarter last year.

As of December 31, 2024, Go Digit’s assets under management (AUM) stood at INR 18,939 Cr, up 20.14% from INR 15,764 Cr on March 31, 2024.

In an investor presentation, the Bengaluru-based company said that it sold 0.9 Cr policies to 6.2 Cr customers in the April-December 2024 period, taking its market share in the insurance space to 3.3%.

Third-party motor premiums remained the single-largest contributor to Go Digit’s revenue. The company earned a net premium of INR 1,385.42 Cr by selling motor insurance in Q3 FY25, up 6.25% from INR 1,303.89 Cr in the year-ago period. Go Digit claimed that its market share in the motor insurance space stood at 6.1% at the end of the December 2024 quarter.

The second biggest source of revenue for Go Digit was health insurance with the company raking in a cumulative premium of INR 438.48 Cr from this segment in the reported quarter, a jump of 21.06% from INR 362.19 Cr in Q3 FY24.

Net premium earned from crop insurance stood at INR 193.21 Cr,  premium from fire insurance came in at INR 26.56 Cr and premium earned from marine insurance stood at INR 1.29 Cr in the Q3 FY25.

Meanwhile, Go Digit’s board has promoted Atul Mehta to the role of country head for retail geographies and key investments, with effect from Thursday (January 23).

Where Did Go Digit Spend In Q3?

The listed insurtech major’s total operating expenses rose 3% YoY and 8% QoQ to INR 2,308.89 Cr in the quarter ended December 31, 2024.

Incurred Claims: The total expense under this head rose nearly 3% to INR 1,519.96 Cr in Q3 FY25 from INR 1,476.88 Cr in the same quarter last year. Sequentially, it surged almost 14% from 1,334.47 Cr.

Of this, the company spent INR 948.77 Cr towards insurance claims while it spent an additional INR 571.19 Cr on change in outstanding claims in the reported quarter. 

Employee Costs: Go Digit spent INR 86.20 Cr towards employees’ remuneration and welfare expenses in Q3 FY25, up 12% from INR 76.89 Cr in the year-ago quarter. However, employee costs declined nearly 5% quarter-on-quarter from INR 90.48 Cr.

Advertisement Expenses: The spending on business development and sales promotion initiatives grew 9.65% YoY and 28.79% QoQ to INR 104.67 Cr in the December quarter.

Go Digit also said that expenses related to the insurance business for the nine months ended December 31, 2024, were in excess of the regulatory limits, as specified under IRDAI (Expenses of Management, including commission of Insurers) Regulations, 2024.

“The company has received forbearance from IRDAI for the financial year 2023-24 via a letter dated December 27, 2024. Authority has advised the company to submit board approved, projected, quarterly EoM ratios for the financial year 2025-26 before March 31, 2025,” it further said.

Go Digit shares closed 1.85% lower at INR 286.20 apiece on the BSE on Wednesday (January 22). The company released its third-quarter results after market operating hours today.

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Shares of logistics major Delhivery plummeted 5% to hit a fresh 52-week low of INR 312.40 apiece during the intraday trading on the BSE today (January 22).

However, the stock pared some of its losses later and was trading 2.86% lower at INR 319.45 at 2:31 PM. 

At the time of writing, the company’s market capitalisation stood at INR 23,794.55 Cr (around $2.75 Bn).

Delhivery’s share price has nosedived more than 18% over the last 12 months and the stock is currently trading 34% below its 52-week high of INR 488.05. 

In its latest research report on Delhivery, Prabhudas Lilladher recommended a ‘HOLD’ rating on the stock with a target price of INR 361. This implies an upside potential of nearly 10% from the stock’s closing price on Tuesday.

Prabhudas Lilladher said that Delhivery’s B2C express volume growth has come under pressure in the last three quarters due to rising insourcing by Meesho.

“Near-term growth headwinds are likely to persist even if we assume Meesho’s insourcing exercise has stabilized given the slowdown in overall consumption space and rising competitive threat from quick commerce,” it added.

Delhivery reported a consolidated net profit of INR 10.2 Cr in the second quarter of the financial year 2024-25 (Q2 FY25) as against a loss of INR 102.9 Cr in the year-ago quarter.

Sequentially, net profit declined from INR 54.3 Cr.

Revenue from services jumped 13% to INR 2,189.7 Cr in the second quarter of the ongoing financial year from INR 1,941.7 Cr in the year-ago period.

Recently, Delhivery started piloting a two-hour delivery service in Bengaluru to address the needs of brands across categories such as beauty and personal care, apparel, and fashion.

The company plans to expand its rapid commerce service to other metro cities such as Hyderabad, Chennai, Delhi NCR, Mumbai, Pune and Ahmedabad soon.

In August last year, Delhivery said it would launch a network of multi-tenant dark stores for “rapid in-city delivery” for ecommerce companies.

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Mumbai-based edtech startup LEAD School trimmed its consolidated net loss by 55.58% to INR 142.98 Cr in the financial year 2023-24 (FY24) from INR 321.95 Cr in the previous fiscal year, helped by growth in its top line and improvement in EBITDA margin.

Operating revenue jumped 28.31% to INR 350.54 Cr in the financial year ended March 31, 2024, from INR 273.19 Cr a year ago.

Founded in 2012 by Sumeet Mehta and Smita Deorah, LEAD School offers academic solutions, including devices and textbooks to its client schools. It also provides curriculum advisory and support devices to schools, pre-schools, parents and students. 

The edtech unicorn enables schools to combine technology, curriculum and pedagogy in an integrated teaching and learning system. LEAD School claims its integrated system is available to schools in over 400 towns and cities across India, reaching 5 Mn students and empowering 50K+ teachers.

The startup managed to narrow its EBITDA loss to INR 112.7 Cr in FY24 from an EBITDA loss of INR 308.2 Cr in the previous year. As a result, EBITDA margin improved to -32% during the year under review from -113% a year ago.

LEAD School generated a revenue of INR 276.10 Cr from the sale of products such as books, teaching aids and devices in FY24, whereas revenue from the sale of services stood at INR 74.43 Cr.

Including other income of INR 19.41 Cr, total revenue stood at INR 369.95 Cr during the year under review as compared to INR 295.51 Cr in FY23.

“The company has been investing in scaling up the business which is expected to result in losses for some time. Management is not reasonably certain about the year in which the company will make profits …” said LEAD School in a filing with the Ministry of Corporate Affairs.

According to Inc42 data, Lead School has raised north of $182 Mn in funding to date from marquee investors such as Elevar Equity, WestBridge Capital, GSV Ventures, among others.

Zooming Into Expenses

LEAD School’s overall expenses went down 16.93% to INR 512.94 Cr in the year ended March 2024 from INR 617.46 Cr in the previous fiscal year.

Employee Cost: The edtech startup spent INR 174.62 Cr towards employee benefits expenses during the year under review, down 38.82% from INR 285.44 Cr in FY23. It must be noted that LEAD School reduced its headcount by more than 160 in multiple rounds in FY23. 

Procurement Cost: Lead School spent INR 124 Cr for procurement of books, teaching aids and devices in FY24, an 8% decline from INR 134.8 Cr it spent a year ago.

Promotional & Publicity Expense: The spending under this expense head surged 40.78% to INR 34.52 Cr in FY24 from INR 24.52 Cr in the previous fiscal year.

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Online B2B marketplace IndiaMART InterMESH posted a 48% jump in its consolidated net profit to INR 121 Cr in the third quarter of the financial year 2024-25 (Q3 FY25) from INR 81.9 Cr in the year-ago period on the back of healthy growth in its top line and improvement in EBITDA margin.

On a quarter-on-quarter basis, net profit declined 10.4% from INR 135.1 Cr in the July-September period.

Revenue from operations surged 16% to INR 354.3 Cr during the quarter under review from INR 305.3 Cr in the December quarter last year. Sequentially, the top line growth was muted as operating revenue rose a mere 1.9% from INR 347.7 Cr.

Founded in 1999 by Dinesh Agarwal, IndiaMART is one of the oldest internet firms in India. The company connects buyers with sellers across 58 industries and 98K product categories such as consumer electronics, chemicals & dyes, construction and raw materials, clothing and apparel, cosmetics and personal care, pharmaceuticals and automobiles among others. 

Since its listing in 2019, IndiaMART has invested in several new-age tech companies, including fintech startup Vyapar, legal tech startup Legistify, fraud detection startup IDfy, omnichannel inventory and warehouse management startup EasyEcom, HR tech startup Zimyo, logistics automation startup Fleetx, among others

Including other income of INR 44.9 Cr, the company’s total revenue stood at INR 399.2 Cr in Q3 FY25 as compared to INR 347 Cr in the same quarter last year.

The company’s EBITDA surged 61% year-on-year (YoY) to INR 138 Cr in the December quarter of the ongoing fiscal year.

In an investor presentation, IndiaMART said that its collections from customers grew 10% YoY to INR 363 Cr during the quarter under review, which primarily comprised the company’s standalone collections of INR 341 Cr and Busy Infotech’s collections of INR 17.6 Cr.  

It also registered 27 Mn unique business inquiries in Q3 FY25, registering a 17% YoY growth. Supplier storefronts and paying supplier additions were largely muted, rising 5% YoY to 8 Mn and 1% YoY to 214K, respectively in the reported quarter. Annualised revenue per paying supplier increased 14% YoY to INR 63K in Q3 FY25.

Meanwhile, deferred revenue zoomed 17% YoY to INR 1,492 Cr during the quarter under review. This primarily included IndiaMART’s standalone deferred revenue of INR 1,430 Cr and Busy Infotech’s revenue of INR 57.3 Cr.

Where Did IndiaMART Spend In Q3?

IndiaMART managed to trim its overall expenses by nearly 2% to INR 226.1 Cr in the quarter ended December 31, 2024, from INR 230.2 Cr in the same quarter last year. However, total expenditure rose 1.3% from INR 223.2 Cr on a sequential basis.

Employee Benefits Expense: This was the biggest expense head for the ecommerce unicorn during the quarter under review. The spending under this bucket rose 10.4% to INR 153 Cr in Q3 FY25 from INR 138.5 Cr in the year-ago quarter. On a QoQ basis, it went up 3.8% from 147.4 Cr.

Other Expenses: IndiaMART managed to bring down its spending in this bracket declined 22.3% to INR 63 Cr in the reported quarter from INR 81.1 Cr in the December quarter last year. On a QoQ basis, the spending under this head fell 4.1% from INR 65.7 Cr. However, the company did not share a breakup of these expenses.

Inc42 reported earlier that IndiaMART is set to purchase an additional stake in Mobisy Technologies, which operates SaaS startup Bizom, for a cash consideration of INR 14.3 Cr.

Shares of IndiaMART closed Tuesday’s trading session 1.09% higher at INR 2293.40 apiece on the BSE.

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Shares of One97 Communications, the parent company of Paytm, slipped 8% to their intraday low of INR 826 apiece on the BSE today (January 21) after the fintech major reported a consolidated net loss of INR 208.5 Cr in the quarter ended December 31, 2024.

Net loss stood at INR 221.7 Cr in the same quarter last year. 

It is pertinent to mention that the Vijay Shekhar Sharma-led company reported a net profit of INR 930 Cr in the September quarter of the current fiscal year.

Operating revenue slumped 36% to INR 1,827.8 Cr in the third quarter of the financial year 2024-25 (Q3 FY25) from INR 2,850.5 Cr in the year-ago period. Sequentially, it rose 10% from INR 1,659.5 Cr on a quarter-on-quarter basis, led by growth in its payments and financial services businesses.

Adjusted EBITDA (excluding ESOP expenses) loss narrowed by 78% quarter-on-quarter to INR 41 Cr in Q3 FY25.

Earlier this week, brokerage JM Financial reinitiated its coverage on Paytm with a ‘buy’ rating and target price of INR 1,250, signaling an upside potential of 39% from the stock’s previous close.

The stock has climbed over 4% in the last five trading sessions and surged more than 12% over the past 12 months. 

The brokerage noted that Paytm has revaluated its business models following the regulatory action against Paytm Payments Bank last year and continues on a sustained recovery path.

It expects Paytm to achieve adjusted EBITDA profitability in Q4 FY25 and a profit after tax (PAT) breakeven in FY26.

In an exchange filing on Monday, along with its Q3 results, Paytm said that its arm Mobiquest Mobile Technologies will divest its entire 100% stake in its wholly owned subsidiary Xceed IT Solutions.

Meanwhile, another Paytm subsidiary, Paytm Cloud Technologies is set to incorporate three new subsidiaries in UAE, Saudi Arabia and Singapore. The move comes as the fintech major looks to expand and monetise its tech-enabled payments and financial services in international markets.

Paytm shares were trading 5.12% lower at INR 852 apiece on the BSE at 12:46 PM.

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Fintech major Paytm is planning to set up three new subsidiaries in the UAE, Saudi Arabia, and Singapore through its arm Paytm Cloud Technologies as the Vijay Shekhar Sharma-led company looks to expand and monetise its tech-enabled payments and financial services in international markets.

In an exchange filing today (January 20), the company said that its wholly-owned subsidiary Paytm Cloud Technologies Limited’s (PCTL’s) board approved the incorporation of the three new companies. Once set up, these businesses will become step-down subsidiaries of Paytm.

“We believe that our technology-led merchant payments and financial services distribution business model in India has the potential for expansion in similar international markets. We have developed a portfolio of innovative hardware, software and services stack in India, which can be deployed and monetised internationally,” said Paytm.

The listed fintech giant said that it is exploring various options, including inorganic expansion, local licenses, strategic investment, and partnerships in these overseas markets.

The wholly owned subsidiaries will be incorporated within 6 months with an initial investment of up to INR 20 Cr in each of these business units in one or more tranches.

Meanwhile, Mobiquest Mobile Technologies, another subsidiary of Paytm, has received approval from its board to offload its entire 100% stake in its wholly owned subsidiary Xceed IT Solutions.

These shares will be acquired by the existing directors of Xceed IT, Vineet Narang and Sabina Kamal, for a cash consideration of INR 60,728.

Mobiquest Mobile Technologies operates in the information technology (IT) sector and provides computer programming, consultancy, and related services. 

Paytm managed to trim its consolidated net loss by 6% to INR 208.5 Cr in the third quarter of the financial year 2024-25 (Q3 FY25) from INR 221.7 Cr in the year-ago quarter.

The company had reported a net profit of INR 930 Cr in the September quarter of the ongoing fiscal year.

Operating revenue declined 36% to INR 1,827.8 Cr during the quarter under review from INR 2,850.5 Cr in the year-ago period. However, it rose 10% from INR 1,659.5 Cr on a quarter-on-quarter basis.

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Venture capital fund SamVed has floated a $50 Mn (INR 433 Cr) fund to back tech-focused early-stage startups in India.

The fund will target sectors including AI, agritech, healthcare, fintech, e-commerce, upskilling and consumer brands.

It is led by former Bridgewater Associates investor Amit Srivastava, alongside LetsVenture founder Shanti Mohan, former Info Edge executive Vivek Khare, and ex-Google leader Gagan Saksena. 

The fund aims to invest across startups with initial cheque sizes ranging from $80-120K in pre-seed funding rounds and $250K-1 Mn in pre-Series A rounds. Besides capital, portfolio startups will receive access to an in-house CTO, operational mentorship and global networks.

Amit Srivastava, managing partner at SamVed said, “We aim to go beyond traditional investing to shape the next decade of innovation.”

As a fund partner of LetsVenture, SamVed claims to benefit from deal flow and founder networks. The fund has already invested in three startups. “We are uniquely positioned to identify high-potential startups and accelerate their growth journeys efficiently,” said Shanti Mohan.

This launch adds to recent fund announcements in the Indian startup ecosystem. Earlier this week, Riceberg Ventures announced a $20 Mn fund for deeptech startups. In December last year, Warmup Ventures unveiled its INR 300 Cr second fund targeting deeptech and climate tech startups.

Overall, the homegrown startup ecosystem saw the announcement and launch of 81 new funds, including VC funds, PE funds, micro funds, angel funds, and government funds, worth over $8.7 Bn in 2024. In comparison, 64 funds were launched for Indian startups last year, which cumulatively amounted to over $5.6 Bn.

Early-stage startups emerged as the darling of investors as 40 funds, with a total corpus of over $1.94 Bn, were floated in 2024. In comparison, 31 funds worth $1.8 Bn were launched for early-stage Indian startups last year.

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Foodtech major Zomato’s consolidated net profit slumped 57.2% to INR 59 Cr in the third quarter of the financial year 2024-25 (Q3 FY25) from INR 138 Cr in the year-ago quarter due to a slowdown in the food delivery segment and rising competition in quick commerce.

On a sequential basis, profit slumped 66% from INR 176 Cr.

However, operating revenue surged over 64% to INR 5,405 Cr during the quarter under review from INR 3,288 Cr in the same quarter last year. Sequentially, it rose 12.6% from INR 4,799 Cr.

Including other income of INR 252 Cr, total revenue stood at INR 5,657 Cr in Q3 FY25 as compared to INR 3,507 Cr in Q3 FY24.

Consolidated adjusted EBITDA (excluding ESOP cost) soared 120% year-on-year (YoY) to INR 285 Cr, primarily led by an improvement in food delivery adjusted EBITDA margin (as a percentage of GOV) to 4.5% compared to 3% a year ago.

However, on a quarter-on-quarter basis, consolidated adjusted EBITDA declined 14% largely due to accelerated investments in the expansion of its quick commerce dark store network, where losses surged by INR 95 Cr sequentially.

The Deepinder Goyal-led company saw healthy growth across all business verticals. The gross order value (GOV) of the food delivery business surged 17% to INR 9,913 Cr in Q3 FY25 from INR 8,486 Cr in the year-ago period. 

However, on a quarter-on-quarter basis, the growth was muted as GOV rose a mere 2% from INR 9,690 Cr. The company attributed this to the ongoing broad-based slowdown in demand, which started during the second half of November.

Meanwhile, quick commerce arm Blinkit’s GOV skyrocketed 120% to INR 7,798 Cr during the quarter under review from INR 3,542 Cr in Q3 FY24. Sequentially, it surged 27% from INR 6,132 Cr.

Amid Zomato’s continued push for its going-out business, the vertical registered the biggest 191% YoY and 35% QoQ surge at INR 2,495 Cr in the quarter ended December 31, 2024. It must be noted that this includes the impact of the acquisition of Paytm’s entertainment ticketing business. 

On a like-for-like basis (excluding the acquired business), the GOV of Zomato’s going-out grew 53% YoY and 52% QoQ.

Overall, the GOV of Zomato’s B2C business grew 57% YoY and 14% QoQ to INR 20,206 Cr in the reported quarter. 

Amid rising demand for 10-minute food delivery, Zomato recently launched ‘Bistro’ targeting a large in-office market wanting quick access to snacks, meals and beverages.

In a shareholders’ letter, Goyal said that the company has also launched a new feature enabling restaurants listed on Zomato to offer food delivery services in under 15 minutes by curating their menu items and providing a dedicated delivery fleet. This quick delivery feature is currently available in select locations and will be scaled over time.

Zooming Into Expenses

Delivery & Related Charges: Zomato spent INR 1,450 Cr under this head during the quarter under review, up 33% from INR 1,088 Cr in the December quarter last year. Sequentially, the spending under this bucket rose a little under 4% from INR 1,398 Cr.

Procurement Cost: Zomato’s expenses in this bracket surged nearly 92% to INR 1,500 Cr in Q3 FY25 from INR 782 Cr in the year-ago quarter. On a QoQ basis, the company saw an 11% rise in procurement costs from INR 1,354 Cr.

Employee Cost: Total employee benefit expenses grew 63% to INR 689 Cr in Q3 FY25 from INR 423 Cr in the corresponding quarter last year. This expense head also saw a 17% QoQ increase from INR 590 Cr.

Ad & Sales: The food delivery and quick commerce major continued to ramp up its investment for promoting its business during the December quarter, which led to a 39% increase in expenses in this bracket to INR 521 Cr in Q3 FY25 from INR 374 Cr in the year-ago period.

Shares of Zomato ended Monday’s trading session 3.14% lower at INR 240.95 apiece on the BSE.

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Shares of Paytm surged 2.2% in early trading hours to INR 919.45 apiece on the BSE today (January 20) after brokerage JM Financial reinitiated coverage on the stock with a ‘buy’ rating, citing the fintech major’s distinguished positioning across its business segments and higher monetisation potential.

The brokerage gave the stock a target price of INR 1,250, which implies an upside potential of 39% from its previous close.

Paytm not only boasts one of the largest merchant bases but is also able to monetise this merchant base across device subscription and commission on payments and loan disbursals, analysts at JM Financial said, highlighting that the company is “transforming challenges into opportunities.”

Paytm had a monthly transaction user base of 71 Mn as of the quarter ended September 30, 2024 (Q2 FY25), which is expected to see significant growth with the company receiving approval from the National Payments Corporation of India for new UPI user acquisition in October last year, according to the brokerage.

“We see Paytm on the cusp of rampant network effects with rising user/merchant acquisition along with significantly improved monetisation. The resulting topline growth would enable steep margin expansion with the company having already delivered marginal incremental profitability of 30%+ across FY21-24,” said JM Financial.

The brokerage noted that Paytm has reevaluated its business models following the regulatory action against Paytm Payments Bank last year and continues on a sustained recovery path.

It expects Paytm to achieve adjusted EBITDA profitability in Q4 FY25 and a profit after tax (PAT) breakeven in FY26.

Paytm managed to trim its consolidated net loss by 6% to INR 208.5 Cr in Q3 FY25 from INR 221.7 Cr in the year-ago quarter.

Revenue from operations declined 36% to INR 1,827.8 Cr during the quarter under review from INR 2,850.5 Cr in the year-ago period. 

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Fintech major Paytm narrowed its consolidated net loss by 6% to INR 208.5 Cr in the December quarter of the financial year 2024-25 (Q3 FY25) from INR 221.7 Cr in the same quarter last year on the back of recovery in its digital payments business.

It must be noted that the Vijay Shekhar Sharma-led company had posted a net profit of INR 930 Cr in the quarter ended September 30, 2024 on account of the sale of its movie and events ticketing business to foodtech major Zomato.

Revenue from operations declined 36% to INR 1,827.8 Cr during the quarter under review from INR 2,850.5 Cr in the year-ago period. However, it rose 10% from INR 1,659.5 Cr on a quarter-on-quarter basis, driven by growth in its payments and financial services businesses.

Including other income of INR 188.7 Cr, total revenue stood at INR 2,016.5 Cr in the quarter ended December 31, 2024, as compared to INR 2,999.1 Cr in the same quarter last year.

Paytm managed to trim its adjusted EBITDA loss (excluding ESOP cost) by 78% to INR 41 Cr in Q3 FY25 from a loss of INR 186 Cr in the September quarter.

Segment Revenue

Revenue from the payment services business surged 9% to INR 1,059 Cr in Q3 FY25 from INR 981 Cr in the quarter ended September 30, 2024, on the back of an increase in gross merchandise value (GMV) and merchant subscriptions. 

GMV surged 13% to INR 5 Lakh Cr during the quarter under review from 4.5 Lakh Cr in Q2 FY25, partly boosted by the festive season. Paytm reported a 10% YoY and 5% QoQ rise in merchant subscriptions (including devices) to INR 1.17 Cr for the quarter ended December 31, 2024.

“New subscription paying device merchant sign ups continue to see strong growth with gross device additions in Q3 FY 2025 comfortably surpassing January 2024 run-rate,” said Paytm in its earnings statement.

Paytm also earns revenue from its financial services such as loans, stock broking and insurance. Revenue from this segment surged 34% to INR 502 Cr during the quarter under review from INR 376 Cr in Q2 FY25, led by a higher share of merchant loans, higher trail revenue from the default loss guarantee portfolio and improvement in collections.

Another source of revenue for Paytm is its marketing services business, which primarily includes advertising, travel ticketing, credit card distribution and deals & gift vouchers. Revenue from this segment stood at INR 267 Cr in Q3 FY25 as against INR 268 Cr (excluding the entertainment ticketing business) in Q2 FY25.

One of the key drivers for growth in marketing services revenue, Paytm said, was the increase in monthly transacting users (MTU), which rose to 7.2 Cr in December 2024 from a low of 6.8 Cr in September 2024 as the company began onboarding new UPI customers following approval from NPCI.

Where Did Paytm Spend In Q3?

The listed fintech major managed to bring down its overall expenses by 31% to INR 2,219.8 Cr in Q3 FY25 from INR 3,216.3 Cr in the corresponding quarter last year.

Employee Benefits Expense: Employee cost (excluding ESOP) declined 6% QoQ and 29% YoY to INR 575 Cr in Q3 FY25 as Paytm continued to leverage artificial intelligence to improve productivity across businesses.

Additionally, the company spent INR 182 Cr in ESOP costs in the reported quarter, down 16.5% from INR 218 Cr in Q2 FY25.

Payment Processing Charges: The spending under this expense head fell 42% to INR 570.4 Cr in Q3 FY25 from INR 982.2 Cr in Q3 FY24. Sequentially, it rose 10% from INR 516.8 Cr.

Marketing And Promotional Expenses: Paytm spent INR 140.9 Cr towards marketing initiatives in Q3 FY25, a 49% decrease from INR 275.2 Cr in the corresponding quarter last year.

Paytm is selling its entire 100% stake in its wholly owned subsidiary Xceed IT Solutions for INR 60,728 in an all-cash deal.

Incorporated in 2005, Xceed IT Solutions is a wholly owned subsidiary of Mobiquest Mobile Technologies Private Limited, which operates in the field of information technology, specifically engaged in computer programming, consultancy, and related activities. 

Shares of Paytm were trading 0.82% lower at INR 907 apiece on the BSE at 2:06 PM.

The post Paytm Narrows Net Loss To INR 208.5 Cr In Q3 appeared first on Inc42 Media.

Crypto exchange WazirX has frozen stolen assets worth $3 Mn as part of the ongoing recovery efforts, nearly six months after a cyber attack wiped out nearly $235 Mn from one of its wallets.

“WazirX has been successful in freezing the first tranche of assets that were stolen during the cyberattack (‘Stolen Assets’), worth ~$3M USDT [Tether],” the company said in a statement.

WazirX’s parent Zettai said that it is actively working with law enforcement agencies, forensic experts, investigative authorities and legal experts to trace and retrieve the stolen assets while the platform goes through restructuring proceedings.

“This is just the beginning. We are fully committed to recovering the stolen funds … [and] maximise recoveries under a Scheme,” said Nischal Shetty, cofounder of WazirX.

In July last year, WazirX suffered a security breach in one of its multi-sig wallets, which resulted in the loss of crypto assets worth nearly $235 Mn. The cyber attack impacted over 4.4 Mn Indian users, who are yet to fully recover their funds.

Earlier this week, the US, Japan and South Korea issued a joint statement and blamed North Korea’s infamous hacking group Lazarus for the WazirX crypto heist.

Meanwhile, crypto unicorn CoinSwitch, earlier this month, launched an INR 600 Cr recovery programme to aid WazirX hack victims.

Recently, the Delhi High Court sought responses from the Centre and the Reserve Bank of India (RBI) on a petition calling for a probe by a special investigative team into WazirX’s security measures and operations.

Justice Sachin Datta, while hearing the case, said that WazirX would be held financially responsible if the breach resulted from its own security failures. 

“If someone from the dark web breached your platform, you cannot say sorry … I am curious to know if the government will wash its hands off in its affidavit,” Justice Datta said. 

The developments come on the heels of reports saying that WazirX is likely to fully resume crypto withdrawals on the platform by mid-April 2025. 

To resume trading, WazirX is pursuing a scheme of arrangement in Singapore, under which it plans to compensate affected users by rebalancing and distributing net liquid assets on the platform, sharing profits from a potential new decentralised exchange, and pursuing recovery of stolen assets.

As of December 5, 2024, WazirX held $565.7 Mn in digital assets. Users are seeking damages worth about $546 Mn.

WazirX is currently facing investigation by multiple government agencies such as the Financial Intelligence Unit, Intelligence Bureau, and the Indian Computer Emergency Response Team (CERT-In) in connection with the $235 Mn hack.

The post Crypto Heist: WazirX Freezes Stolen Assets Worth $3 Mn appeared first on Inc42 Media.

Founders of several new-age tech companies such as MobiKwik, OYO, ixigo and Razorpay among others, reportedly met with government officials on Thursday (January 16) and voiced concerns about the Digital Personal Data Protection (DPDP) rules.

The discussion was centred around provisions of cross-data transfer, the role of consent managers, and overlap with other sectoral regulations, Moneycontrol reported.

Chaired by MeitY secretary S Krishnan, the closed-door meeting also saw executives from startups such as Dream 11, Mobile Premier League, Fampay, Freo, Khatabook and Progcap in attendance.

A government official reportedly said that the DPDP rules would also entail caveats after a startup founder pointed out that cross-border transfer of certain data sets was vital for the operations of companies operating in sectors such as ecommerce and travel.

As per Rule 12(4) of the DPDP Rules, significant data fiduciaries (SDF) can be barred from transferring certain specific personal data beyond domestic borders.

Questions were also raised about the potential overlap between existing regulations and the upcoming DPDP rules as sectors such as fintech and insurance are already regulated under the RBI and IRDAI regulations, respectively, as per the report.

The Centre reportedly assured that separate consultations would be held for startups in light of the concerns raised by the stakeholders.

The government released the draft DPDP Rules 2025 on January 3, laying out the tentative terms of implementing the DPDP Act, which was passed in the Parliament in 2023.

The yet-to-be-enforced DPDP Act provides a legal framework for “data fiduciaries” — internet companies and social media platforms that collect personal data from users — to prevent misuse and penalise companies that flout data protection rules.

The rules state that a data fiduciary shall protect personal data in its possession by implementing reasonable security measures to avert a data breach. In the event of a breach, the Data Protection Board of India (DPBI) must be notified within 72 hours.

The rules further say that if a user is not using an ecommerce platform, social media platform or online gaming service anymore for a prolonged period, their data must be deleted after giving out an advance notice of 48 hours.

The draft also sets out rules for the registration of so-called consent managers, who work with data fiduciaries to obtain users’ consent. The government and its “instrumentalists” can collect data for doling out subsidies and “statistical” purposes, the rules say.

This comes against the backdrop of union minister Ashwini Vaishnaw saying that the DPDP rules will be refined further in order to protect children from the dangers posed by the digital space. 

The post DPDP Rules Alarm Startup Founders, Govt Vows Separate Consultation appeared first on Inc42 Media.

Shares of Zomato jumped nearly 3% to INR 248.65 apiece during the intraday trading session on the BSE today (January 17) after brokerage JM Financial reiterated its ‘buy’ rating on the foodtech major.

The recent market pessimism around accelerated investments in Blinkit’s supply chain and rising competition in quick commerce opens up an opportunity for long-term investors to build sizable positions, said the brokerage.

While the ongoing investor concerns have merit, they may not have a “meaningful impact” on Blinkit’s adjusted EBITDA margin, and supply chain investments are expected to help the company better compete with its peers, according to analysts at JM Financial.

The brokerage gave Zomato a target price of INR 300, which implies an upside potential of almost 24% from the stock’s previous close of INR 242. Over the past 12 months, the stock has nearly doubled in value, surging over 94%.

JM Financial analysts said that Zomato is a clear market leader across all its operating business segments, including food delivery and quick commerce, in terms of both gross order value (GOV) and revenue. The Deepinder Goyal-led company is also ahead of its rivals on the profitability front across business verticals, they added.

Zomato’s food delivery business reported a GOV of INR 9,690 Cr in the September quarter of the financial year 2024-25 (Q2 FY25) while Blinkit’s GOV stood at  INR 6,132 Cr. 

By comparison, Swiggy’s food delivery business reported a GOV of INR 7,191 Cr while its quick commerce arm Instmart reported a GOV of INR 3,382 Cr in Q2 FY25.

The brokerage further pointed out that Zomato is the only major hyperlocal delivery company in India that is currently generating free cash flows on a consolidated basis.

“This indicates the strong execution capabilities of the management, giving us the confidence that Zomato is the best placed company to fend off emerging competitive threats in quick commerce. We, therefore, prefer Zomato over Swiggy (BUY, INR 550) amongst the two listed hyperlocal delivery players, post recent correction in both stocks,” JM Financial said.

The brokerage expects Zomato’s food delivery segment to register a GOV growth of 3.9% on a sequential basis in the December quarter of the financial year 2024-25 (Q3 FY25) with adjusted EBITDA margins expected to expand by 40 basis points during the period.

In the quick commerce segment, Blinkit is expected to register a sequential GOV growth of 22.2% on the back of a surge in order volumes driven by an increase in monthly transacting users.

However, on a consolidated level, Zomato’s reported EBITDA is expected to shrink to INR 201 Cr in Q3 FY25 from INR 226 Cr in Q2 FY25 on account of mounting losses at Blinkit and an increase in ESOP costs, according to JM Financial.

Shares of Zomato were trading 2.25% higher at INR 247.45 apiece on the BSE at 1:54 PM today. 

The post Zomato Shares Jump 3% After JM Financial Reiterates ‘Buy’ Call appeared first on Inc42 Media.

Amid rising sales of its flagship iPhone devices in the country, tech giant Apple has rolled out the Apple Store app in India as it looks to ramp up its retail presence in the world’s second-largest smartphone market.

Users can download the app from the App Store and purchase Apple products directly while receiving customised shopping recommendations, the iPhone maker said in a statement on Friday (January 16).

The Apple Store app features dedicated tabs for products, customised shopping recommendations, and after-purchase support such as online personal setup sessions with Apple specialists.

Additionally, the app lets shoppers upgrade their Mac devices with a more powerful chip, extra memory, or additional storage. It also offers delivery and pickup of Apple products.

“At Apple, our customer is at the centre of everything we do, and we are thrilled to introduce the Apple Store app to reach even more users in India, further deepening our connections,” said Karen Rasmussen, Apple’s head of Retail Online.

The move comes at a time when Apple is looking to strengthen its footprint in India. The year 2023 saw the iPhone maker opening its first physical stores in Delhi and Mumbai. The tech giant is set to open four more brick-and-mortar stores in Bengaluru, Pune, Delhi NCR, and Mumbai in the coming days.

India is the second-largest smartphone market in the world and is increasingly becoming an important geography for Apple. The company reportedly clocked its higher-ever sales of nearly $8 Bn in the country in the financial year 2023-24 (FY24).

Apple has also been doubling down on its manufacturing capabilities in India as it looks to reduce its dependence on China. Earlier, it was reported that Apple was set to begin assembling iPhone 16 Pro and Pro Max models in India.

Amid rising disposable income and growing demand for iPhones, Apple’s iPhone exports from India surpassed the 1 Lakh Cr mark in 2024.

The post Now, Apple Brings Store App To India appeared first on Inc42 Media.

Accel-backed wealthtech startup Dezerv’s operating revenue surged 157% to INR 26.25 Cr in the financial year 2023-24 (FY24) from INR 10.20 Cr in the previous fiscal year.

Founded in 2021 by Sahil Contractor, Sandeep Jethwani and Vaibhav Porwal, Dezerv is a wealth management platform. It provides customised investment solutions, particularly targeting senior working professionals and high-net-worth individuals, across multi-assets and vehicles, including alternative and the new asset class.

The startup claims to have managed assets worth over INR 6,000 Cr since its inception.

Despite the growth in its top line, Dezerv’s consolidated net loss rose 95% to INR 74.53 Cr during the year under review from INR 38.20 Cr in FY23, on account of a sharp increase in its expenses.

The Premji Invest-backed startup posted an EBITDA loss of INR 70.4 Cr in FY24 as against an EBITDA loss of INR 36 Cr in FY23. Its EBITDA margin stood at -268% in FY24 compared to -353% in FY23.

In July last year, Dezerv raised $32 Mn in its Series B funding round, led by Premji Invest, at a valuation of $200 Mn. The round also saw participation from existing investors Accel, Elevation Capital and Matrix Partners.

As per Inc42 data, Dezerv has raised a total funding of $60 Mn to date. It counts the likes of Whiteboard Capital, Blume Founders Fund, CRED founder Kunal Shah, ACKO founder Varun Dua, Meesho founder Vidit Aatrey, and OfBusiness founder Ashish Mohapatra among its investors. 

Where Did Dezerv Spend In FY24?

Amid a surge in its revenue, Dezerv’s total expenditure shot up 108% year-on-year to INR 100.84 Cr in the year ended March 31, 2024. It had incurred expenses of INR 48.42 Cr in the previous year.

On a unit economics basis, Dezerv spent INR 3.82 to earn every rupee in FY24.

Employee Benefit Expenses: This was the biggest expense head for the wealth management startup during the year under review. Employee costs skyrocketed almost 114% to INR 63.34 Cr in FY24 from INR 29.65 Cr in FY23, indicating that it increased its headcount during the year.

Advertising Promotional Expenses: The spending under this bucket grew more than threefold to INR 18.48 Cr in FY24 from INR 6.15 Cr in the previous year.

Information Technology Expenses: The wealthtech startup’s IT expenses surged nearly 106% to INR 3.50 Cr during the year under review from INR 1.70 Cr in FY23.

The post Dezerv’s FY24 Revenue Zooms 157% YoY To INR 26 Cr appeared first on Inc42 Media.

Recently listed fintech major MobiKwik has joined hands with Piramal Capital and Housing Finance (Piramal Finance) to offer personal loans of up to INR 2 Lakh to users across the country.

The partnership will enable MobiKwik users to apply for and access personal loans ranging from INR 50k to INR 2 Lakh seamlessly via the platform, the fintech company said in a statement.

All MobikWik app users with an income of more than INR 25K in the age bracket of 23 and 55 are eligible for these loans. The minimum loan tenure is 6 months and goes up to 2 years.

The fintech major said that with its new offering, it aims to address the diverse financial needs of its customers, including education expenses, medical expenses and travel expenses among others.

Shares of MobiKwik closed today’s (January 16) trading session 1.18% higher at INR 472.65 apiece on the BSE.

Founded in 2009 by Bipin Preet Singh and Upasana Taku, MobiKwik is a digital banking platform that offers a range of payments and financial products to both customers and merchants such as digital wallet, UPI, pocket UPI, and Zaakpay (payment gateway).

The company claims to be India’s largest digital wallet provider serving 167 Mn registered users and a network of 4.4 Mn merchants.

It is to be noted that MobiKwik was among the 13 new-age tech companies that went public in 2024 with its shares listing at INR 442.25 apiece on the BSE, a 58.5% premium against the IPO issue price of INR 279 per share.

MobiKwik slipped into the red in the September quarter of the financial year 2024-25 (Q2 FY25) on account of higher tax expenses. The fintech giant reported a net loss of INR 3.59 Cr in Q2 FY25 as against a profit of INR 5.22 Cr in the year-ago period. 

Operating revenue jumped 42% to INR 290.65 Cr during the quarter under review from INR 203.45 Cr in Q2 FY24. 

The post MobiKwik Joins Hands With Piramal Finance To Offer Personal Loans appeared first on Inc42 Media.

Homegrown private equity firm Kedaara Capital has made an investment of $350 Mn in Impetus Technologies, a leading data, analytics and enterprise AI solutions provider. 

Kedaara Capital has acquired a strategic stake in Impetus Technologies to drive innovation in its data and AI business and expand the company’s footprint globally, the PE fund said in a statement.

Kedaara’s investment will help Impetus expand its offerings in its rapidly growing business verticals, including GenAI and advanced analytics, as well as within LeapLogic, the company’s in-house cloud and data migration accelerator.

The capital infusion from Kedaara will also enable Impetus to strengthen its operations by leveraging the PE fund’s senior team, which comprises former CEOs with expertise in building market-leading businesses. 

“Data, Analytics and AI are key drivers for innovation in the technology landscape and represent some of the fastest growing markets, advancing transformation across industries. Impetus has established itself as a transformative provider of Data and AI solutions to distinguished clients with a team of highly skilled engineering talent,” said Sunish Sharma, founder and managing partner at Kedaara Capital.

Founded in 1996 by Praveen Kankariya, Impetus Technologies offers data and AI solutions to large enterprises. The company claims that its flagship software product LeapLogic helps businesses load their legacy ETL, data warehouse, and analytics systems to any cloud with up to 95% automation.

The company caters to several marquee Fortune 500 companies across the US and Europe such as Microsoft, Databricks, Google Cloud, AWS, Snowflake, among others.

Meanwhile, Kedaara Capital was founded in 2012 by ex-Temasek and General Atlantic executives Manish Kejriwal, Sunish Sharma, and Nishant Sharma. It is one of India’s oldest PE firms and counts Lenskart, Perfios, Purplle, Avanse Financial, and K12 Techno Services among its portfolio companies.

In April this year, Kedaara Capital announced the close of India’s largest private equity fund, Kedaara IV, at $1.7 Bn (about INR 14,417 Cr).

It was Kedaara Capital’s fourth fund and was closed within four months of its launch. The India-focussed PE firm said it plans to invest in startups across sectors such as banking, healthcare, consumer, and SaaS.

The post Kedaara Capital Picks Up Stake In Impetus For $350 Mn appeared first on Inc42 Media.

Early backers of OYO, including Lightspeed Venture Partners, are reportedly in talks with a group of family offices to sell a part of their stake in the hospitality unicorn with the secondary sale likely to value the IPO-bound company at $3.9 Bn.

This would be a 60% premium to the $2.4 Bn valuation OYO secured in its INR 1,457 Cr funding round in August last year, The Economic Times reported.

However, the latest stake sale will take place at a steep discount to its peak valuation of $9 Bn in 2021.

The deal would be part of a broader shuffle of OYO’s cap table ahead of its plans to tap the public markets this year.

Peak XV Partners, one of OYO’s early investors, recently divested a portion of its remaining 3% stake in the newly-turned profitable startup, which created a liquidity of about $80-90 Mn for the venture capital firm, as per the report.

Back in 2019, Lightspeed and Peak XV cumulatively raked in more than $1.4 Bn in returns on their investments in OYO by selling a majority of their stake to founder Ritesh Agarwal.

Last month, Nuvama Wealth and Investment Limited on behalf of some family offices bought shares worth INR 100 Cr in OYO at a valuation of $4.6 Bn.

The latest development comes on the heels of reports that OYO plans to refile its draft red herring prospectus (DRHP) for its initial public offering (IPO) with SEBI after raising $450 Mn through a sale of dollar bonds to refinance its Term Loan B.

Earlier, it was reported that OYO slashed the size of its IPO to $400-600 Mn from $1.2 Bn it planned previously.

Founded in 2012 by Ritesh Agarwal, OYO offers holiday homes, casino hotels, coworking spaces, budget hotels, corporate stays, and more. The startup has raised about $4.5 Bn in funding to date and counts the likes of SoftBank Group and Microsoft among its backers.

It is pertinent to note that OYO turned profitable in the financial year 2023-24 (FY24). It posted a net profit of INR 229.5 Cr during the year as against a net loss of INR 1,286.5 Cr in the previous financial year.

Revenue from operations stood at INR 5,388.7 Cr in FY24, a decline of 1.3% from INR 5,463.9 Cr in the previous fiscal year.

The post OYO’s Early Backers In Talks To Sell Partial Stake At $3.9 Bn Valuation: Report appeared first on Inc42 Media.

Bengaluru-based insurtech unicorn ACKO managed to trim its consolidated net loss by 9% to INR 669.98 Cr in the financial year 2023-24 (FY24) from INR 738.55 Cr in the previous year on the back of strong growth in its top line and improvement in EBITDA margin.

ACKO’s operating revenue crossed the INR 2,000 Cr mark in the year ended March 31, 2024. The digital insurance policy provider clocked sales of INR 2,106.25 Cr in FY24, a 20% jump from INR 1,758.64 Cr in the previous year.

Including other income of INR 53.95 Cr, total revenue shot up 20% to INR 2,160.20 Cr during the year under review from INR 1,796.81 Cr in FY23.

The digital insurance policy provider reported an EBITDA loss of INR 650.2 Cr in FY24 compared to an EBITDA loss of INR 728.6 Cr a year ago. As a result, the EBITDA margin improved 10 percentage points to -31% during the year under review, compared to -41% in the previous year.

Founded in 2016 by Varun Dua and Ruchi Deepak, ACKO sells automobile, health, and travel insurance on its platform. The startup also forayed into the life insurance space last year. 

ACKO raised $255 Mn in its Series D round, led by General Atlantic and Multiples Private Equity Fund, in 2021 at a unicorn valuation. The startup has raised a total funding of $458 Mn to date.

ACKO competes against the likes of Policybazaar, Go Digit, and InsuranceDekho, besides other established players like the LIC in India’s insurance sector. 

Breakdown Of Operating Revenue

Being a digital-first insurance policy company, ACKO primarily earns revenue from the premium it collects from policyholders for protection against risk. Gross premium income stood at INR 1,586.77 Cr in FY24, up 32% from INR 1,184.95 Cr in the previous year.

Another source of revenue for ACKO is recoveries from reinsurers. ACKO reported a 26% decline in recoveries from reinsurers to INR 292.93 Cr in FY24 from INR 398.29 Cr in FY23.

The insurtech startup also earns revenue from service contracts, commission fees, and investments.

Zooming Into Expenses

Amid a strong growth in its operating revenue, ACKO saw a 12% increase in its overall expenditure to INR 2,830.18 Cr in the year ended March 2024 from INR 2,535.36 Cr last year.

Miscellaneous Expenses: This was the biggest expense head for ACKO during the year under review. The spending under this head rose over 4% to INR 1,519.14 Cr in FY24 from INR 1,452.76 Cr in the previous year. 

This largely comprised call centre charges of INR 32.51 Cr, claims paid worth INR 829.83 Cr, gross change in claims outstanding during the year to the tune of INR 267.80 Cr, and premium on reinsurance receded of INR 363.75 Cr. 

Employee Benefit Expenses: Employee costs remained largely unchanged at INR 354.63 Cr during the year under review compared to INR 349.34 Cr in FY23. However, employee share-based payment (ESOP) expenses declined 2.4X to INR 36.63 Cr in FY24 from INR 87.22 Cr in the previous year. 

Advertising Promotional Expenses: ACKO saw a marginal rise in its business promotion expenses to INR 562.73 Cr in FY24 from INR 559.20 Cr a year ago.

The post ACKO’s Revenue Jumps 20% To Cross INR 2,000 Cr Mark In FY24 appeared first on Inc42 Media.

Shares of Awfis rallied more than 5% to INR 717.50 apiece during the intraday trading on the BSE on Tuesday (January 14) after the shared coworking space provider announced the opening of a new centre in Lucknow.

“With the launch of its new centre in Lucknow, Awfis solidifies its position as India’s leading provider of flexible workspace solutions,” the company said in a statement. 

Awfis’ new centre, spread across 47,694 sq ft, is situated in Gomti Nagar, which has emerged as a hub for technology and commercial activity.

The newly launched centre is equipped with a lounge area & Awfis Cafe and offers comprehensive workspace solutions such as meeting and conference rooms, coworking spaces and tailored enterprise solutions.

It must be noted that Awfis became the first homegrown coworking space startup to enter a Tier II city in 2018. Since then, it has expanded its presence to nine Tier II cities — Chandigarh, Bhubaneshwar, Guwahati, Kochi, Jaipur, Nagpur, Pune, Indore and now Lucknow.

Founded in 2015 by Amit Ramani, Awfis claims to be the largest flexible space operator in India with 181 centres, around 1.1 Lakh seats, and about 5.6 Mn square feet of chargeable area, as of March 31, 2024.

Awfis reported a consolidated net profit of INR 38.67 Cr in Q2 FY25 against a net loss of INR 4.24 Cr in the same quarter last year. Operating revenue jumped 40.46% to INR 292.38 Cr during the quarter under review from INR 208.15 Cr in the year-ago period.

The company earns revenue from its core businesses co-working spaces, flexible workspaces, custom office spaces, and mobility solutions, tailored for startups, small and medium enterprises (SMEs), large organisations, and multinational corporations.

In November last year, Awfis launched a new offering called ‘Elite’ to cater to the growing demand in the premium workspace segment and the country’s global technology capability centres (GCC) market.

The company has already launched its first Elite centre in Hyderabad and plans to expand to other cities such as Mumbai, Bengaluru, and Delhi in the coming days.

Rising office space rental costs across the country have led to a boom in initial public offerings by companies in the coworking space. While Awfis got listed on the Indian stock exchanges last year, the likes of Smartworks, DevX, and IndiQube are set to go public soon.

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Shares of ixigo jumped nearly 3% to INR 146.90 apiece during the intraday trading on the BSE today (January 14) after brokerage JM Financial initiated coverage on the stock with a ‘buy’ rating, saying the company is the emerging dark horse in the online travel agency (OTA) market.

The brokerage set a price target price of INR 180 for ixigo, which implies an upside potential of 26% from the stock’s previous close of INR 142.90.

Analysts at JM Financial noted that despite being a late entrant, ixigo is currently the second-largest and fastest-growing OTA in India in terms of gross transaction volume.

Segment-wise, it is the market leader in train ticketing and is quickly strengthening its position in flight and bus ticketing, they highlighted.

In the first half of the financial year 2024-25 (H1 FY25), ixigo clocked a GTV growth of 34% on a year-on-year basis, outperforming its peers. In comparison, MakeMyTrip reported a GTV growth of 23% YoY, while EaseMyTrip and Yatra reported a decline of 1% and 9%, respectively, during the same period.

The brokerage further said that ixigo, which follows a multi-app, multi-brand approach, is well positioned to capitalise on the growth in the travel market in tier II+ cities with 94% of its transactions booked having either origin or destination as non-tier I cities.

“Unlike most OTAs that focus on better pricing or discounts, ixigo focuses on differentiation basis superior customer experience. The company achieves this basis out-of-the-box utility products and services and value-added services (for a small fraction of the ticket value) that enable customers to modify or cancel their bookings without having to worry about cancellation costs,” JM Financial said.

The brokerage expects the online travel platform to deliver a GTV and revenue growth of 26% and 23%, respectively, over FY24-27. Further, the travel tech major is likely to expand its EBITDA and adjusted profit after tax (PAT) by 45% and 33%, respectively, during the period, according to JM Financial.

It is to be noted that Le Travenues Technology, the parent company of ixigo, made its market debut last year, with its shares listing at INR 135 apiece on the BSE, a 45% premium over its IPO issue price.

While the stock has tanked over 12% in the last 5 trading sessions, it has given an upward run of over 5% since its public debut to date.

At 1:36 PM, shares of ixigo were trading 1.82% higher at INR 145.50 apiece on the BSE.

ixigo’s consolidated net profit declined 51% to INR 13.08 Cr in Q2 FY25 from INR 26.70 Cr in the year-ago quarter on account of higher tax expenses. Operating revenue rose 26% YoY to INR 206.47 Cr during the quarter under review.

The post ixigo Shares Rally 3% After JM Financial Initiates Coverage With ‘Buy’ appeared first on Inc42 Media.

The Goods and Services Tax (GST) department conducted a raid on a wholly-owned subsidiary of insurtech major PB Fintech on Sunday (December 13).

In an exchange filing, the company said the Gurugram zonal unit of the Directorate General of GST Intelligence (DGGI) conducted a search and inquiry in connection with some of the vendors of one of its subsidiaries. 

Sources told Inc42 that the raid was in relation to PB Partners, the fintech major’s platform for insurance agents.

The company is being investigated for alleged tax evasion of about INR 80 Cr to INR 90 Cr, and the GST officials reviewed the financial records and GST filings during the raid.

Notably, PB Partners provides insurance and financial services as part of PB Fintech’s broader operations.

In 2023, the DGGI had sent notices to scores of insurance players, including Policybazaar, Go Digit, and HDFC Bank among others, for alleged GST evasion to the tune of INR 2,250 Cr. 

The notices reportedly alleged that these companies issued fake invoices for many insurance companies between 2018 and March 2022, without providing any service, which is a punishable offence under GST norms.

Even Paisabazaar came under the scanner of Income Tax authorities last year for alleged regulatory lapses and non-compliance with know your customer (KYC) norms.

Shares of PB Fintech were trading 1.84% higher at INR 1,729 apiece on the BSE at 10:43 AM.

The insurtech major informed the bourses today (January 14) that it was cooperating with the investigation and provided all information required by GST officials. The company said it does not expect the GST action to affect its operations.

This comes at a time when GST officials are tightening their noose on rampant tax evasion across the country. Last week, Inc42 exclusively reported that the DGGI raided insurance tech major InsurDekho’s headquarters in Gurugram for alleged tax evasion.

Online gaming companies, including Gameskraft, Dream11, and Games 24×7, were issued 71 show-cause notices for alleged evasion of GST amounting to INR 1.12 Lakh Cr during 2022-23 and the first seven months of 2023-24.

However, the Supreme Court stayed the GST proceedings against 49 real gaming startups last week, giving them interim relief.

[With inputs from Lokesh Choudhary]

The post GST Department Conducts Raid On PB Fintech’s Subsidiary appeared first on Inc42 Media.

Funding for Indian startups has grown exponentially to $155 Bn in 2024 from $8 Bn in 2016, according to the Department for Promotion of Industry and Internal Trade (DPIIT).

Highlighting the success of the Startup India initiative during a press briefing yesterday (January 10), DPIIT secretary Amardeep Singh Bhatia said that over the last nine years, the number of startups in the country has surged to over 1.58 Lakh from just 400 in 2016, ANI reported.

Of these, 48% of startups are based in Tier II and III cities, signalling that “entrepreneurship is no longer confined to metropolitan hubs,” DPIIT joint secretary Sanjiv Singh reportedly said.

With the aim to ensure that the ecosystem keeps thriving, DPIIT has envisaged establishing a startup in every district of the country by the end of 2025. While startups had a presence in only 120 districts in 2016, they have expanded to 750 districts today.

This comes just days after DPIIT announced that The Indian startup ecosystem had created more than 16 Lakh jobs across the country as of December 25, 2024.

India is currently home to more than 73,000 startups that have at least one women director, according to DPIIT.

Launched in January 2016, the Startup India initiative aims to build a strong homegrown startup ecosystem while nurturing innovation and encouraging investments. Under the initiative, 157,066 startups have been recognised by the Department for Promotion of Industry and Internal Trade (DPIIT) with 759,303 users registering on the portal to date.

In a major boost to India’s manufacturing startup ecosystem, DPIIT  signed a memorandum of understanding (MoU) with US retail giant Walmart earlier this week.

The partnership is aimed at supporting and empowering startups, along with micro, small, and medium enterprises (MSMEs) from Tier II and III cities, Sanjiv Singh, joint secretary at DPIIT, ministry of commerce & industry, said then.

The post Startups Raised $155 Bn Funding In Last 9 Years: DPIIT appeared first on Inc42 Media.

Omnichannel eyewear retailer Lenskart is gearing up for its initial public offering (IPO), following in the footsteps of new-age tech firms such as Zepto, OfBusiness, Pine Labs, Razorpay, boAt, CarDekho, and Captain Fresh that are looking to go public in the near future.

Lenskart has initiated talks with bankers to pitch for an IPO, with the Peyush Bansal-led company looking to raise anywhere from $750 Mn to $1 Bn, Moneycontrol reported, citing sources.

The report further said that Lenskart is eyeing a valuation of $7-8 Bn through its IPO and is likely to list on Indian bourses toward the end of the financial year 2025-26 (FY26).

Inc42 has reached out to Lenskart cofounder Peyush Bansal for comments on the development. The story will be updated if and when we get a response.

Founded in 2010 by Bansal, Amit Chaudhury, and Sumeet Kapahi, Lenskart is an omnichannel eyewear retailer. Besides India, it has a presence in the UAE, Singapore, and Japan among others.

The company has over 2,500 stores, of which around 2,000 are in India. It claims to have a customer base of 2 Cr.

The eyewear startup narrowed its net loss by 84% to INR 10 Cr in FY24 from INR 64 Cr in the previous year. Operating revenue jumped 43% to INR 5,427.7 Cr during the year under review from INR 3,788 Cr in FY23. 

Lenskart’s public listing plans come amid the IPO boom of new-age tech companies in India with more than 20 homegrown startups planning to make their Dalal Street debut in 2025.

While the likes of ArisInfra, Ecom Express, and Smartworks have received the nod from the Securities and Exchange Board of India (SEBI) for their respective IPOs, Ather Energy, BlueStone, and DevX have filed their draft red herring prospectuses (DRHPs) and are awaiting the market regulator’s go ahead. 

Several other startups, including the likes of ride-hailing major Ola Consumer, audio products and smartwatch maker boAt, coworking space provider IndiQube, and B2B marketplace OfBusiness, have also stacked up plans for bumper IPOs.

The ongoing IPO mania is also fuelling a trend of ‘reverse flipping’ in the homegrown startup ecosystem with new-age tech companies such as fintech unicorn Razorpay, quick commerce unicorn Zepto, and fintech major Pine Labs set to shift their domicile back to India.

It must be noted that 13 homegrown startups went public last year, including foodtech giant Swiggy, fintech major MobiKwik, electric vehicle maker Ola Electric, coworking startup Awfis, and insurtech giant Go Digit, among others. Together, these startups raised a record INR 29,000 Cr+ via their initial share sales.

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