Pepperfry Receives $10 Million in Debt

Hybrid furniture market Pepperfry has acquired the second tranche of 10 mn dollars from investors in form of obligatory convertible debt. This is the second round of debt that they have acquired till now.

In February, Pepperfry received Rs 35 from the debt firm InnoVen Capital.

According to its regulations, Pepperfry has approved the issue of CCD 74348 (Series A-class) with a face value of 10,000 to raise about the 74 crore mark, which is around $10 million.

Norwest Venture Partners, Broad Street Investments, and Erste WV Guttersloh are the most prominent players in this tranche.They are worth 23.28 crore and 15 crores and 18 crores per. Panthera Growth Fund, General Electric Pension Trust as well as Madhumala Ventures have also joined this round.

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It's important to know it is important to note that Madhumala can be a part of Pidilite Industries limited, which has invested in Pepperfry in the month of May last year. Pepperfry is valued about $462 million in the round, based on Fintrackr's estimates.

The company, which has been in existence for a decade, was created by Ambareesh Murty and Ashish Shah is based on a marketplace model with both online and offline formats. Pepperfry is a platform that offers more than 11,000 items and connects brands like Spacewood, Godrej and Springfit to buyers.

At the end of June, Pepperfry boasted having more than 70 studios offline across 40 cities.

According to a Mint article, Pepperfry plans to apply for an Initial Public Offering (IPO) during the 1st quarter of 2022. It is expected to fund a public pre-public offering that will range from $50-$100 million at the end of the year.

Also read: INDmoney is Expected to Raise $100 Mn in a Round Led by Tiger Global

Although the company hasn't released its annual financial report for FY21, it reported an increase of 26% in revenues to 260.61 crores for FY20. The company has also reduced its losses by 33%.

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Setu Records Rs 3 Cr Revenue in Fy21 Even as Losses Climb to Rs 19 Cr

Fintech infrastructure firm Setu has broadened its offerings and currently includes data, payments as well as lending and investments through an Automated Programming Interface (APIs). The company announced in August that Google Pay partnered with Setu to provide fixed deposits from Equitas Small Finance Bank.

Although this company that is backed by Lightspeed startup is growing at a good rate, it appears to be at a pre-revenue phase as far as revenue is concerned for FY21.

Setu has reported operating revenues of 3.31 crore in FY21 as compared to none in FY20. This is the 2nd full financial year of operation for Setu. The majority of the revenue comes from the selling services (subscription charge).

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The Bengaluru-based business has been able to make 5.74 crore during FY21. This is additional income from interest earned on bank deposits. This is 334% higher than FY20. The company raised fifteen million (Rs 110 crore) Series A round at the start of FY21.

To earn this operating profit, Setu has spent 228 percent more in FY21. This is the rate of 27.96 crore, up from 8.52 crore in FY20. In accordance with the B2B model, its old set of costs were for salary and benefits for employees as well as other plans. The expense jumped by 254% in FY21 and reached 23.51 crore in FY21. 23.51 crore, up from the figure of 6.63 million in FY20.

The three-year-old firm also put aside more than 1.73 billion on consultation services in FY21. The cost increased by 226% during the previous fiscal year, compared to 52 thousands in FY20. At a unit-level, Setu spent Rs 8.45 to generate a rupee operating revenues in FY21.

The increase in total expenses has boosted setu's cash outflow by 70%, to Rs 15.3 crore in FY21 opposed to the just Rs 9 crore in the FY20.

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Although the epidemic affected the businesses of all industries, Setu is unlikely to suffer a significant hit since it's a technology infrastructure company in a market which is rapidly changing and expanding. This means that Setu's primary priority will be to roll its products more quickly in the effort to reduce the burn rate in the year 4. With an appropriate product portfolio and technological expertise it will be an option for acquisition by any large company or group looking to establish an investment market.

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INDmoney is Expected to Raise $100 Mn in a Round Led by Tiger Global

INDmoney Startup Funding News

Startups operating in the field of investment management appear to be becoming popular with investors. Fintech platform INDmoney provides its customers manage their money across taxes, investments expenditures, loans, and taxes on a single platform, and is currently in negotiations to secure $100 million through an existing investor Tiger Global Management, according to two sources who are familiar with the developments.

Sources also said that this round is likely to put the value of INDmoney at $500 million. The company's last funding round was in January of 2020.

"Tiger is leading the $100 million round, and the existing investors, including Steadview as well as Dragoneer are likely to be part of the deal," said one of the sources who requested anonymity. "The details for the transaction are nearly done and are likely to be announced in the near future," the person added.

Incredibly, Tiger Global has also invested in other companies operating in the same industry: Groww, which recently reached a valuation of a unicorn and Upstox is another platform that lets its customers manage their the management of their investments.

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INDmoney has received $58 million since it was founded this year from investors like Tiger, Steadview Capital and Dragoneer. The company was created by Ashish Kashyap, who was the founder of the travel platform Goibibo. INDMoney also utilizes its robo-advisor platform to assist clients, mainly between the ages of 25 to 45.

INDMoney also allows Indian customers to invest into US stocks on its platform.

In August of 2020 the Bengaluru-based company had launched third-party loan options that range from personal, home as well as against property and investments. According to the website of the company the personal loan could vary from 12 to 36 percent, while the interest rate for business loans is typically between 12-22 percent.

"INDmoney has expanded its offerings in terms of products like loans and credit on demand for the last 12-15 months, and the proceeds are likely to be utilized as a key element of the company's expansion plan to grow.," said the second source.

According to reports in the media The company is likely to join the insurance market in the near future. The other major competitors for INDmoney are Zerodha along with Paytm Money, among others.

Tiger Global declined to comment on the report. Questions addressed to INDmoney were not answered as of publishing this story. We will bring the story up to date in the event that INDmoney responds.

Although the company has yet to submit its accounts for the fiscal year ending in FY21 the company has reported operating revenues of 1.07 crore. The company saw the opportunity to record a 2.3X increase in its total earnings to 7.26 crore, up from 3.17 millions in FY19. The total spending of the company increased to 19.12 crore, up from 3.06 millions in FY19.

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