Indian tech news this week
From the promises of super-fast grocery delivery to the growing ambition of an IPO among startups, things are moving at a rapid pace in the Indian tech industry.
Speed is the name of the game among Indian startups these days. From the promises of super-fast grocery delivery to the growing ambition of an IPO among startups, things are moving at a rapid pace in the Indian tech industry.
But on the other hand, funding for startups slowed down slightly compared to previous weeks, which was followed by CarTrade’s less than impressive debut on the stock market. But before we get into the details, here’s a look at some of the best Indian tech stories this week:
The great debate
India’s e-commerce sector is one of the most mature tech sectors in the country, but this could very well see a big setback in light of recent regulations proposed by the government.
The upcoming e-commerce policy will target the indirect stake held by e-commerce giants Amazon India and Walmart-owned Flipkart in some of the biggest sellers on their marketplaces. This has already led Amazon to quit the joint venture it created with Narayana Murthy’s Catamaran Ventures for one of its biggest Cloudtail sellers.
There could be further disruption in this sector, if government statements on the matter are any indication. Targeting the Tata group, Trade and Industry Minister Piyush Goyal expressed deep anguish that, going against national interests, the group opposed rules he said would help consumers. .
Perhaps it was this uncertainty that drew Adani Group into the race for super apps. The conglomerate’s new division, Adani Digital Labs, will lead the charge for the super app, which has reportedly been in development since January. Can Adani surpass Tata Group and Reliance in the race for super apps?
Speaking of Reliance, the company’s acquisition agreement for Future Group’s retail and warehousing business is still pending. The Supreme Court of India has upheld the emergency award of the Singapore International Arbitration Center to US e-commerce giant Amazon, blocking the $ 3.4 billion acquisition deal. The final word on this matter is yet to come and it could very well determine the future of the retail and e-commerce industry.
In e-commerce, one cannot ignore the rise of startups and direct-to-consumer brands. In 2021 alone, Indian D2C startups raised more than $ 783.7 million, according to Inc42 Plus analysis. And that has led to new categories such as the D2C Hash brand of cigarettes, which seeks to disrupt incumbents in this space. Another emerging category is pet care, where startup D2C Heads Up For Tails has raised $ 37 million (INR 277 Cr) from Verlinvest, Sequoia and others to expand its distribution and retail footprint. .
Indian start-up finance meter
With $ 743 million raised in 41 financing deals, this is the first week since early July that the amount of seed funding has not crossed the $ 1 billion mark.
This week, CarTrade made a mixed IPO, in line with analysts’ expectations. The auto market traded below its listing price on Friday August 20, closing with a nearly 8% discount from its issue price of INR 1,618. It fell 8.77% to INR 1,476 during the day, then finished at INR 1,500.10. The company’s market capitalization was INR 6,875.57 Cr on BSE.
Of course, there were some apprehensions about CarTrade’s high listing price in the days leading up to the IPO, but it remains to be seen whether the company will rebound next week to provide relief to investors.
Seizing the IPO lead, travel and hospitality software as a service (SaaS) startup RateGain filed its draft red herring prospectus, ahead of a potential initial public offering (IPO). The IPO includes a new issue of shares for a total amount of INR 400 Cr and an offer to sell a maximum of 2 26 05 530 shares.
Featured | Organization charts
As more startups join the IPO parade, the focus will also be on some of the key leaders within these startups. We have followed the organizational structure and board constitution of startups considering IPOs in the near future.
Our series of flowcharts has already covered companies such as online travel aggregator ixigo, fintech startup Policybazaar, Zomato, Paytm and others, highlighting not only key personnel, but also decision makers in different industries. verticals and the remuneration structure of these executives.
Click here to read our previous editions.
Top Indian Tech News This Week
Here are the top stories we’re tracking this week:
- When it comes to online deliveries, online grocery shopping is a category that has grown in popularity over the past 18 months. The transition to dark stores is starting to become more certain, which has intensified the race for the fastest delivery. In our The Outline this week, we captured that rush and the role dark stores play in the delivery game.
- Fintech unicorn CRED entered the technology lending industry with the launch of peer-to-peer (P2P) lending called CRED Mint, launched in partnership with the NBFC Liquiloans registered by RBI.
- And here’s some good news. According to recent reports, the Indian government may allow the Employee Provident Fund Organization and the Life Insurance Corporation to deploy funds to startups in order to reduce their dependence on foreign investors.
- Investment firm Avendus has announced the first closing of its Future Leaders Fund II with a total commitment of 584 Cr INR ($ 78.5 million) to invest in growth stage and late stage startups.
- Google Accelerator selected 16 Indian startups for its 5th cohort, including ekincare, AgNext, OkCredit, Zypp Electric, Aquaconnect, MedCords and others.
- While crypto assets have undoubtedly seen massive growth and investment from India this year, are the exchanges doing enough to educate investors about the dangers of investing in this volatile asset? The same question can be asked of crypto influencers in India, who are using their reach to drive more traffic to crypto exchanges, without highlighting this volatility. In our newsletter on the Indian economy this week we touched on these issues, check it out.
It’s all for this week.