"EDITION 132"

Published: 8/11/2020

Good morning, it's Tuesday! Sorry for the slightly late newsletter, I was playing around with some charts and lost track of time. Coming to the day's news, another unicorn "plans" to go public in 2021 & Flipkart launches a startup accelerator.

  • https://bit.ly/3fMrHr9: Zomato Set To Raise $200 Mn From Tiger Global
  • ➡️ Food delivery & discovery platform Zomato is set to raise up to $200M from American PE firm Tiger Global ($100M with an option to further inject $100M) ahead of their "plans" to go public next year.

    ➡️ In June, the company was also reportedly looking to raise capital from Singapore-base Temasek Holdings, after the company's plans of raising capital from ANT Financial hit a road block (Vedica previously covered this).

    ➡️ The funding would be part of Zomato's plans of raising $500-$600M as Deepinder Goyal (CEO) had announced in December last year.

    ➡️ Zomato is looking to further reduce burn and show a path to profitability (they've already done a lot to reduce burn) before a proposed IPO next year. It does seem, on paper at least, that there is a fairly large IPO class of 2021 (PolicyBazaar, Zomato, Ola) but let's see how many companies actually go public.

    2. https://bit.ly/3isCM27: Flipkart launches accelerator program to back early-stage startups

    ➡️ India's best known startup Flipkart has launched a startup accelerator program called "Flipkart Leap" to help early stage B2C & B2B companies for a 16-week program in 5 key themes: design & make for India, innovation in digital commerce, technologies to empower the offline retail, supply chain management & logistics and enabling relevant deep-tech software or apps.

    ➡️ The companies who are selected will be mentored by Flipkart's teams around biz, ops, product & engineering. The companies will also recieve an equity-free grant of $25k from Flipkart.

    ➡️ There has definitely been a wave of startup accelerators & programs for early-stage companies which may or may not include funding as well- Sequoia launched Surge, Lightspeed Extreme Entrepreneurs, Accel Founder Stack in the last couple of years and Flipkart's Leap seems to be in a similar vein.

    ➡️ Flipkart has been fairly active in investing & acquiring companies so I'm sure they might be looking to invest in (or acquire) a subset of these companies as they progress and scale. But over the last decade, the industry has seen several accelerators with various formats and varying levels of success so I'm curious to see how much importance Flipkart gives to the program.

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