Paytm to invest Rs 500 cr in tech startups to drive innovation, create jobs

Source: Business Standard, Nov 11, 2019

New Delhi: Digital payments firm Paytm on Monday said it plans to invest Rs 500 crore in 20191113-5early stage startups that build complementary technologies augmenting the digital ecosystem.

The company will focus on artificial intelligence-based technology and big data solutions for new innovations that can generate large scale employment.

“The company has set aside Rs 500 crore to invest in early-stage companies that build complementary technologies augmenting the digital ecosystem,” Paytm said in a statement.

The company said it expects to employ technology across the growing internet to become the dominant player in AI.

“We are well aligned with our country’s mission to ensure the benefits of the digital revolution reach the last mile. We partner with startups who have capabilities that augment the digital ecosystem for the next wave of growth.

“These investments are also an indication that Paytm believes India’s entrepreneur ecosystem is innovative and is growing well,” Paytm Deputy Chief Financial Officer Vikas Garg said.

The company typically invests Rs 200-250 crore every year in intellectual properties or companies building complementary technologies such as Insider, Nearbuy, Loginext, Ticket New, Hungerbox, Nightstay, QRQL, and RecruiterGrid, the statement said.

Seven new unicorns added in first eight months of 2019, 50 more waiting

Source: Business Standard, Nov 05, 2019

Bengaluru: While India expanded its base of unicorn start-ups by seven to reach 24 in the first eight months of 2019, there are at least 50 potential ones waiting for their turn in coming years, industry body Nasscom said in its annual report on start-up ecosystem.

These includes companies such as GreyOrange, Pine Labs, Practo, BlackBuck, Lendingkart and Grofers.

The list of these potential unicorns which raised cumulative funding over $50 million, stood 15 during the same period last year. In the start-up parlance, unicorn start-ups are those which have achieved a valuation of $1 billion and more.

Releasing the report, the industry body said that unlike in the past when only the so-called ‘unicorns’ would attract large cheques, venture funding is now flowing to early-and mid-stage technology start-ups pointing to a broadening of the start-up ecosystem in the country. Overall, the start-up space in India attracted investments of $4.4 billion, which is marginally higher than $4.2 billion raised last year.

“The data points to a maturing of sorts of the ecosystem where a number of middle-layer companies are achieving scale. We are seeing the ecosystem grow really fast and we feel this is a sustainable ecosystem,” said Nasscom president Debjani Ghosh.

Some of the new unicorns which were added during the last eight months included BigBasket, Druva, Ola Electric, Rivigo and Delhivery. Other than the home-grown unicorns, India is also becoming a destination of choice for global ones such as Cohesity, Canopym and JFrog who are building products out of India by setting of their R&D centres.

Nasscom, for the first time also issued a ‘maturity index’ to place different start-up sectors in their growth cycle. According to this, fintech, health-tech, enterprise and retail were considered matured sectors whereas ed-tech, logistics and mobility, and nascent sectors such as energy, gaming and agri-tech are emerging ones.

Read the rest of this entry »

Startups to get 10-Yr waiver from regulatory filings

Source: The Economic Times, Nov 05, 2019

New Delhi: India proposes to let startups issue sweat equity and grant additional exemptions as it eases norms for them under the Companies Act with a view to boost entrepreneurship in the country.

The ministry of corporate affairs plans to allow startups to issue 50% of their paidup capital as sweat equity and extend the period of exemptions from other regulatory filings for up to 10 years instead of five now. They will be exempted for 10 years from a rule that bars private companies from raising deposits exceeding 100% of their paid-up share capital. 20191105-1

“Exemptions already given to startups for five years will be available for 10 years, in line with the revised definition by the Department for Promotion of Industry and Internal Trade,” a government official told ET.

The DPIIT expanded the definition of startups earlier this year to state that entities would be considered startups for up to 10 years from the date of their incorporation.

The official said a notification would be issued soon to put into effect the proposed changes, although relaxation of norms on financial filings for startups would require an amendment to the Companies Act.
Read the rest of this entry »

With 21 unicorns, India third on list of billion-dollar tech start-ups; US, China lead

Source: Financial Express, Oct 16, 2019

Kochi: India, with 21 unicorns, stands a distant third to China and the US in the inaugural Hurun Global Unicorn List 2019, a ranking of the world’s billion-dollar tech start-ups compiled by the China-based Hurun Research Institute.

China, with 206 unicorns and the US, with 203, dominate the list with over 80% of the world’s known unicorns, despite representing only half of the world’s GDP and a quarter of the world’s population.

Hurun Research found 494 unicorns in the world, based in 25 countries and 118 cities. Set up seven years ago on an average, they are worth $$3.4 billion on average and $1.7 trillion in total. Valuations are a snapshot of June 30, 2019. Read the rest of this entry »

Rivigo becomes eighth unicorn startup of 2019, valued at $1.05 billion

Source: LiveMint.com, Sept 26, 2019

Mumbai: Trucking logistics firm Rivigo is the eighth Indian startup to become a unicorn — valued a billion dollars or more — this year, after it raised $4.9 million from a South Korean fund, KB Platform Fund, according to regulatory filings with the Ministry of Corporate Affairs.

Entrackr first reported the development.

Read the rest of this entry »

Lee Fixel sets sights on Indian startups again, may invest $1 billion

Source: LiveMint.com, Sept 15, 2019

Mumbai/Bengaluru: Lee Fixel, the former Tiger Global executive responsible for the firm’s most lucrative India investments, is set to return to his favourite stomping ground as early as next month; this time with his own money, three people directly aware of the matter said.

Fixel is looking to invest around $1 billion through his new fund, Addition, as soon as a non-compete agreement with his former employer expires, the people said, requesting anonymity. He plans to actively look at startups in India and also in South-East Asia, they said.

As the head of Tiger Global’s private equity business, Fixel led the firm’s investment in Flipkart. Walmart later bought a majority stake in Flipkart, giving the US fund its biggest pay-off in India so far. Read the rest of this entry »

With 10 unicorns, Delhi-NCR is the new startup capital of India: Report

Source: LiveMint.com, Sept 10, 2019

New Delhi: Move over, Bengaluru and Mumbai, Delhi-NCR is the newest hotspot for startups and unicorns in India.

The region that comprises the national capital and adjoining cities of Gurugram and Noida now counts more startups and unicorns than Bengaluru and Mumbai.

Delhi-NCR is home to 10 unicorns, or those with a valuation of at least $1 billion, with at least one added each year since 2013, compared with the nine and two unicorns that Bengaluru and Mumbai had added, respectively, in the first half of 2019, according to the “Turbocharging Delhi-NCR Startup Ecosystem” report issued by TiE Delhi-NCR and consulting firm Zinnov on Tuesday. Read the rest of this entry »