Paytm Mall Records Rs282 Cr Revenue and Rs142 Cr Loss

Paytm Latest Startup News

Paytm Mall, the e-commerce platform of Paytm, has been trying to find a sustainable model for the past two years. The Paytm Mall’s revenue from operations grew to Rs 282 crore during the fiscal year ending March 2022 from Rs 277 crore in FY21, according to its annual financial statement with the Registrar of Companies (RoC). Sales of products contributed 49.6% of the company's total operating revenue.

Revenue from Paytm Mall grew 85.3% to Rs 139.9 cr. Commission collected from merchants and sellers for providing platform services accounted for 45% of the total collection during FY22, which declined 27% to Rs 126.9 crore from the preceding fiscal year's revenue of Rs 12.7 crore. The company also booked revenue of Rs 8.6 crore during FY22 as a marketing promotion fee for providing advertising services on its platform; this income surged 47.7% from Rs 6.5 crore in FY20. In FY22, the company also collected operating revenue of around Rs 3 crore and recovered claims from courier companies; Paytm Mall also recorded non-operating income of Rs 21.6 cr from liabilities written back & Rs 80.4 cr as interest income related to bank deposits, royalty accounting adjustments, and others which drove the total revenue to Rs 384 crore during FY22.

Interestingly, only 53% of revenue in FY22 came from India with the rest from other countries. The 47% revenue Paytm Mall's revenue came from offshore markets is even odder when one considers that it doesn't have an effective presence in any overseas markets. On the expense front, royalty fees paid in exchange for services received from One97 Communications Limited (Paytm) turned out to be the largest cost element, forming 23% of its total expenditure. For those who aren't familiar with it, Paytm Mall isn't a subsidiary of One97 Communications Limited, but has been licensed to use the Paytm brand, and run on the Paytm app; however, employees don't receive benefits and advertising/promotional expenses declined 29.7% and 59%.

It costs money to run a business, and the cost of connectivity and payment gateway charges decreased by 43% in FY22 from Rs 36.9 crore in FY21 to Rs 21.1 crore. Paytm Mall's expenditure decreased by 43% to Rs 526 crore in FY22, resulting in a loss of Rs 142 crore during that period. The company also booked an exceptional item of Rs 398 crore as an impairment of goodwill taking the losses to Rs 540 crore, as per annual statements filed with the MCA portal. This could be attributed to $398 worth of impairment of goodwill booked under non-cash adjustment.

Entrackr has excluded this expense while calculating overall losses and ratios; Its costs such as connectivity and payment gateway charges have decreased by 43% in FY22 to Rs 21.1 crore from Rs 36.9 crore in FY21. The company's expenditure for Paytm Mall also decreased by 43% to Rs 526 crore during FY22. As a result, the losses of the company decreased to Rs 142 crore in FY22. The company also booked an exceptional item of Rs 398 cr as an impairment of goodwill taking its overall losses to Rs 540 cr, as per the annual statements filed to the MCA portal. Entrackr has excluded this expense while calculating the overall losses and ratios so far; however, we will be running a separate analysis on that at a later date. The EBITDA margin and ROCE improved to -27.34% and -12.88% during FY22.

Also Read: Top Benefits of Virtual Workspace

In May, the e-commerce marketplace Paytm Mall pivoted from the traditional physical goods marketplace to join the government-backed Open Network for Digital Commerce (ONDC). Meanwhile, Paytm Mall’s early and key backers Alibaba and Ant Financial took an exit from the Bengaluru-based company. While no longer a subsidiary, deep legacy relationships with former parent One97 are nowhere close to unwinding soon; as evident in the numbers. For a truly sustainable future, it needs to look at every cost harder in that respect and build further on the new opportunities it is mining now.

For more latest startup news & information, stay tuned to Entrackr.

Tiger Global Leads $15 Mn Round in Jodo at $90 Mn Valuation

Latest Jodo Startup News

Tiger Global Management, one of the largest venture capital firms in the world, has led a $15 million investment round in Jodo, a social media platform for businesses which was participated by existing investors Elevation Capital and Matrix Partners India. The investment values Jodo at $90 million.

Jodo, an academic-focused fintech startup, creates payment solutions that make it easy and affordable to pay for education. It also simplifies fees collection for educational institutions.

This is a big vote of confidence in Jodo, which has only been in operation for a little over a year. The company is based in Bangalore, and was founded by Atulya Bhat, Koustav Dey, & Raghav Nagarajan.

The investment from Tiger Global will be used to help Jodo tweak its products, catalyse sales and expand its team according to a press statement by Jodo.

Fintrackr was able to decode the Series B round through regulatory filings. Jodo has not disclosed any details. According to filings, Tiger led the round with Rs 78.5 crore. Elevation and Matrix were existing investors and each contributed Rs 19.6 crore.

Jodo assists middle-income families with their academic expenses. The company also helps schools digitise the collection process, and offers multiple payment options. It is able to collect fees for more than 700 schools and facilitate fee payments for more than 15,000 students.

After two years, the Series A round has been completed for the Bengaluru-based firm. It raised $3.8million from Matrix and Elevation, as well as 15 angels, including Amit Rajan and Nithin Kamath (through Rainmatter Capital), Softbank’s Sarthak Mitra and CRED's Kunal Shaikh. Entrackr reported exclusively on Jodo's seed round.

After the Series A round, Tiger now holds 11.24% of Jodo's shares. Matrix and Elevation each own 13.35%. Atulya T. Bhat, Raghav Nagarajan and Koustav dey are the co-founders. They collectively hold 52.75%. It is worth noting that all three are ex-executives of Matrix Partners India.

This is a big win for Jodo, and it is sure to help the company attract more customers and grow its business.

Also read: Top Benefits of Virtual Workspace You Must Know in 2022

To get more related latest startup news and upcoming startup funding news, follow Entrackr.

GOAT Brand Labs Secured $50 Million in Series A1 Round

GOAT Brand Labs Startup Funding News

GOAT Brand Labs, a D2C brand aggregator has recently secured a funding of $50 million in their Series A1 round. New investors 9Unicorns, Winter Capital, Oxyzo, Vivriti Capital, Venture Catalysts, and other existing investors

OfBusiness' lending arm -  Oxyzo became a unicorn in March 2018. Entrackr sources say that Oxyzo has lent more than 20 startups. GOAT has raised from its first institutional round a funding of $36 million from Tiger Global Management and Flipkart Ventures. Its current investors include Better Capital, and Nordstar as well as a number of angels like Sujeet Kumar and Ranjan Pai.

Being a marketplace platform, GOATS acquires D2C (direct-to-consumer) brands and helps them scale with its expertise and market understanding.

After receiving profitable brands, the company claims its portfolio has experienced a nearly 85% increase in scale. Since its inception, the company has made 15 acquisitions, including Abhishti and Doggie Dabbas, as well as Frangipani, Hipkoo The Label Life, and Voylla. The company will be in discussions with 12 other brands in the coming weeks.

Also Read: Indian Startups Acquisitions & Fundings News [30 May- 04 Jun]

GOAT was founded by Rishi Vasudev and Rameswar Misra and focused on brands in fashion and beauty as well as home and kitchen space. Vasudev, Myntra, Jabong, and Flipkart Fashion were previously in charge of Flipkart's Fashion for over five years. Rameshwar was part of Voonik’s management team that merged with Bangladesh's ShopUp in February 2020.

GOAT is a D2C company optimization tool that works in the same way as Perch, Thrasio and Branded in America. It helps companies with expansion and marketing, growth hacking and process optimization.

GOAT is competing with two unicorns in the space: GlobalBees, Mensa Brands, and 10club. Evenflow, Powerhouse91 and Powerhouse91. Mensa reports that it raised $300 million equity and debt, while GlobalBees led by Nitin Agarwal & Supam Maheshwari has raised more than $260 millions in two funding rounds.

Subscribe to Entrackr’s newsletter to stay updated on the latest startup news.

Indian Startups Acquisitions & Fundings News [30 May- 04 Jun]

Startup Fundings News

This week the 33 Indian startups raised funds, and 28 of them received an estimated total of $525.81 million. MoEngage and Cuemath were among the top fundraisers who raked in the sums of $77 and $57 million, respectively. This week, 30 local startups raised funds worth around $250 million.

In the meantime, the amount of funding for five of the startups was not disclosed.

Growth/ late-stage deals

This week, nine late-stage and growth startups have taken on funds that include MoEngage's $77 million round as well as Cuemath's round of $57 million. In addition, fintech startup Slice and DC2's cosmetics company Sugar Cosmetics and cloud kitchen brand Curefoods have raked 50 million dollars each.

Early-stage deals

In the early stages of deals, 19 companies have acquired money in five different rounds. The gaming startup Eloelo was the highest on the list, with a $13 million round. The list comprises Aerospace company Bellatrix Aerospace and agritech startup Nutrifresh.

Unknown deals

Unotag, Glovatrix, Kwicpic, Offee, and EzeRx have not disclosed their financials.

City and segment-wise fundings

In the week that just ended, Bengaluru was on top in terms of the number of startup deals as well as the amount of money they raised. According to Fintrackr's statistics, 15 Bengaluru-based companies have raised money this week, totaling $297.54 million, or 56.59 percent of the total funds. This week, Mumbai-based and Delhi-based startups have raised $165.84 million and $45 million in 3 and 6 deals, respectively. They were followed by Hyderabad as well as Pune with 2 and 3 deals, respectively.

Startups in Fintech were among the leading segments in terms of the quantity of deals. Startups in this field received $85 million through four deals. D2C, edtech, SaaS, health tech, crypto, and E-V startups are followed on the list.

Startup Acquisitions News

Apart from more than 30 funding rounds, the week also saw 3 acquisitions.

The list includes the acquisition of OneDirect by Gupshup, data science startup Prakshep by Arya.ag and Verb Studio by Kafqa Academy.

Subscribe to Entrackr’s newsletter to stay updated on the latest startup news.

Lenskart Subsidiary Styled Venture Neso Brands Raises $100 Mn

Lenskart Subsidiary Neso Brands News

Neso Brands, a subsidiary of the omnichannel brand Lenskart has raised more than $100 million during one of the biggest seed rounds of any company. Neso Brands' investors include KKR, Softbank, Alpha Wave Global and Temasek. 

The company based in Singapore said it would invest in eyewear brands that appeal to consumers and expand them through synergies with Lenskart Group.

In addition to the funding, Neso Brands has also announced the appointment of Bjorn Bergstrom as the company's new CEO. Before becoming Neso's CEO, Bergstrom served as chief growth officer and interim chief technology and product officer at Sweden-based fashion brand NA-KD.

"By investing in the most promising new brands in the [eyewear] industry and leveraging centralized resources across technology, manufacturing and distribution, Neso Brands will be uniquely positioned to scale the eyewear brands of the future," Bergstrom added. 

Lenskart creator Peyush Bansal has said, "It is our firm conviction that the brands of eyewear that we have today won't be the ones that will be in the near future. Neso is our plan to work with global founders to create brand names for the future of eyewear.

Lenskart had already raised $125 million over two tranches of its series I round back in April. Based on Fintrackr's estimates, the Peyush Bansal-led firm is worth $4.32 billion, and it is hoping to close the round at $5 billion.

A few days ago, ET revealed that Lenskart had registered the D2C company with Neso Brands and that it was seeking funding from the outside to fund the new subsidiary.

You may also like: Delhivery IPO Open Up on 11th May Reduces Issue Size By 30%

Lenskart currently serves more than 10 million users and is present in 235 cities throughout India and Singapore. The company's revenue was the sum of 905.3 crores in FY21 as opposed to the figure of Rs 900 crore in FY20 as per the company's annual financial statements. In addition, the company achieved an increase in its annual profits by more than 4.6X to 28.92 crore from 6.32 million in FY20.

Neso Brands' $100 million round is the biggest seed round ever for an Indian-origin company. Established in 2022, Neso Brands is the latest addition to India's list of brands roll-up startups following the successes of two unicorns within the industry, Mensa Brands and GlobalBees. Neso Brands will only look for brands that sell eyewear and expand them to create a Thrasio-like venture.

To get all the latest startup news and upcoming IPO news subscribe to Entrackr’s newsletter.

Newton’s School’s Valuation Jumps 7x With $25 Mn Funding

Steadview Capital led the Series B round of funding for Newton School, an online coding training platform that is income sharing-based. The company has raised Rs 188.4 crore (or $25 million). This new round comes within 15 months of the company's previous Series A investment, which saw them pick up $5 million from RTP Global.

The Newton School, Bengaluru, has approved a special resolution to allot 10 equity shares and 5,473 Series A preference shares in order to raise Rs. 188.4 crore (or $25 million), regulatory filings indicate.

Steadview contributed $15 million to this round, while Nexus and RTP Global contributed $5.9 million each and $3.4 million, respectively. Sama Family Trust and AngelList invested the remainder.

According to Fintrackr estimates, Newton School raised fresh funds at an estimated value of Rs 1,034 crore (or $138 million). This represents a sevenfold increase in the company's valuation compared to $20 million in previous rounds.

After the allotment, Newton School's co-founders Siddhartha Mahashwari and Nishant Chandra have reduced their combined stake from 44.68% down to 35.89%.

Nexus holds the largest stake with 24.72%, followed by RTP Global with 14.42% stake and Steadview at 11.11% and 11.11%, respectively.

Also read: Meesho Rebrands Farmiso to Meesho Superstore and Integrates It to Its Core App

About Newton School

The US-based Lambada School has inspired Newton School. InterviewBit's Scaler is the market leader, along with Masai School (and Pesto), among others.

Newton School saw a remarkable jump in operating revenue in FY21. In FY21, the company had a revenue of Rs 4.18 crore, compared to Rs 5 lakh for FY20.

Its losses have risen by more than 150% to Rs 4.57 Crore during FY20's fiscal year, compared with Rs 1.82crore in FY20.

For more information related to Newton’s School and the upcoming startup news, subscribe to Entrackr’s newsletter.

CityMall Raises $75 Mn in Series C Round Led by Norwest

A social-commerce platform called CityMall has received Rs 574 crore or $75 million, led by Norwest Venture Partners and participated by other investors, both existing and new investors. This is the third round of funding for the firm based in Gurugram in the past year.

CityMall has granted the allotment of one equity share and 11771 preferential shares at the price of 458,716 to raise $574 crore (or $75m), the regulatory reports indicate. Norwest Capital and Citius Fund are the two biggest participants in the round, with an investment of Rs 142.52 crore and the sum of Rs 112.52 crore, respectively. Jungle Venture, Elevation Capital, AM Holding, General Catalysts, Waterbridge Ventures, and Accel have a total of Rs 90 crore, 60 crores, and the sum of Rs 56.2 crore as well as the sum of Rs 30 crore and 22.5 crores, respectively.

Entrackr was exclusive information regarding this particular round back in October. CityMall raised $11 million in Series A in March and $22.5 million Series B by June. As per Financial Tracker's estimations, the company is valued at 320 million dollars in its Series C round.

Also read: Wakefit Slips Into Losses After Crossing Rs 400 Cr in Revenue

Additionally, the company has also expanded its ESOP option pool from 1381 to 2912 options, and it is now worth 135 crores, equivalent to $17.5 million.

CityMall offers the categories of lifestyle, grocery, and other categories by establishing an extensive network of community-based resellers in tier II as well as III towns. The company claims to have 200K customers and 20,000 resellers in eight cities within Haryana. Haryana.

CityMall has earned money at the beginning of the year during the year-end of March 2021. The operating revenue was the sum of Rs 14.95 crore for FY21. However, it suffered a loss of the equivalent of 10.4 crores over the same time.

CityMall's rival that is closed, DealShare, recently added to the Series E funding round with 45 million dollars. The Tiger Global-backed business was the second unicorn to emerge from the world of social commerce, following Meesho. CityMall is also in competition against Farmio by Meesho and a couple of others.

Also read: SharkTank's Ashneer Grover Demands Rs.4000 Crore to Leave His Company BharatPe

The Angad Kikla and Naisheel Vardhan-led company joined a few startups which have raised three capital rounds over the past twelve months. On Monday, the B2B animal protein market Captain Fresh announced its $50 million Series C round. The Bengaluru-based business's previous two rounds took place in July and December this year.

Get all the latest startup news and upcoming IPO news on Entrackr.

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.

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

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%.

Subscribe to Entrackr to know all the latest happenings and Latest Startup News in the business world.

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).

You may also like:

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

• Nykaa Updates Its Fresh Equity Offer to Raise 630 Crore in IPO

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.

Also read: With Premji Invest’s participation, Purplle latest round crosses $100 Mn

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.

For such informative news and updates of the Indian startup scene, check out Entrackr.

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.

You may also like to read:

• Nykaa Updates Its Latest Equity Offer to Raise 630 Crore in IPO

• After FIR, Dream 11 suspended its operations in Karnataka

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.

If you want to stay updated with the latest ongoings in the start-up industry, then visit our official website “Entrackr”.