Good morning, it's Thursday and my god has it been an eventful day- first up we had Quibi announcing that it was shutting down (a surprise to no one) and then a great story out of The Morning Context about the mess between Khatabook and Dukaan and their investors. In not as controversial news, Signzy has a couple of new investors in their Series A and Sugar Cosmetics has raised $2M in Debt kicking off their Series C fundraise.
➡️ Stride Ventures has led a $2M debt round into Sugar Cosmetics, the venture debt fund has partnered with an Indian private bank for the deal. This marks the 10th investment out of Stride's maiden debt fund which also includes Stellapps and HomeLane.
➡️ The cosmetics landscape in India seems fairly competitive with players like Nykaa, Purplle and Sugar. Sugar has been able to carve out their spot through their affordable premium products appealing to the younger demographic.
➡️ The company chose to raise debt as their products have high gross margins, and plans to close their Series C later this year (the $2M is the first tranche of funding in this round). The company plans to use the capital for working capital & purchasing inventory as well as fueling growth as the demand starts reaching pre-covid levels during the holiday/shopping season.
➡️ The company has raised capital from the likes of A91 Partners, India Quotient & RB Investments and is valued at just under $100M. The company also hit ₹105 Cr (~$14M) in net revenue during FY20 and has seen its revenue grow 6x in the last 2 years. And with the company seemingly already having hit PMF, I think we'll see that number even higher in 2021 and beyond once the economy returns to normalcy.
2. https://bit.ly/2Hqn3Ui: Mastercard & Arkam Ventures join Signzy's Series A
➡️ Signzy, a company that helps financial tech companies with digital KYC, has raised an additional $5.4M in their Series A led by Arkam Ventures with participation from Mastercard. The company had raised their first tranche of the round in 2018 from Stellaris & Kalaari Capital amounting to $3.6M.
➡️ Mastercard's investment into the company is quite interesting. Just last week, they payment network announced that it would be using Signzy's video KYC product for its banking customers. This also isn't Mastercard's first investment in India, having backed the POS company PineLabs as well.
➡️ The company has been around for 5 years and provides digital onboarding and KYC products for all sorts of fintechs & financial institutions. The platform is focussed on making compliance and onboarding seamless with helping companies reduce the amount of fraud on their platforms.
➡️ Some of the companies Signzy works with are State Bank of India, ICICI Bank, Aditya Birla Sunlife AMC and interestingly it has some presence in the US and Middle East (I assume their products might be quite different for these markets).
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