"EDITION 3"

Published: 6/5/2020

“EDITION 3”

Consolidations, employees making 💰 and decacorns launching new product lines- yesterday was a busy busy day in the India startup world (and I haven’t even mentioned Chaayos & MoEngage raising $20+ M (₹142+ Cr) rounds). I remember back in 2013/2014 when everyone got excited when a company raised more than $20 M once a month or so, now it’s just nonstop!

  • http://bit.ly/39vBO0O (Inc42): NoBroker, the online real estate brokerage acquired Society Connect in an all cash deal. Society Connect is a community management platform, similar to MyGate, and NoBroker plans to combine Society Connect with their NoBrokerHood platform with the combined entity serving over 250,000 houses in India. I’m super bullish on these platforms (MyGate, NoBroker etc) because it’s such an Indian centric problem but I think we will see more consolidation & growth in the next couple of years with 2-3 main players emerging. Focussing on real estate developers (rather than colonies/communities directly) seems like a better strategy to accelerate growth for these platforms (though they will have longer sales cycles but will result in capturing a larger homeowner base)
  • http://bit.ly/39pUE9o (Entrackr): The payment behemoth (& decacorn aka 10x uniciorn) Paytm is entering the “social commerce” space with MyStore. I’ve been pretty bearish on Paytm as a whole because their main revenue driver (wallet - wallet transactions) has essentially been killed off by UPI. But entering the social commerce actually makes a lot of sense for them- they already have Paytm business for SMBs to manage their business, Paytm Mall to manage logistics & shipping, their core product to handle payments and maybe even eventually integrate MyStore back into Paytm Mall. Social Commerce companies like Meesho still haven’t figured out making revenue sustainably (FY19 Rev: ₹84 Cr, Losses: ₹100 Cr) with losses growing at higher rates. But with inbuilt network effects, maybe they can start moving towards profitability after hitting some sort of inflection point.
  • http://bit.ly/2HikkZr (Inc42): CarDekho, the online car marketplace, has announced an employee ESOP buybacks of $3.5 M (~₹25 Cr). ESOP buybacks are one of the few ways startup employees can get liquidity for the equity they hold in the companies they work for (or have worked for). There haven’t been too many cases of ESOP buybacks in the past (Moglix, Razorpay & Unacademy have offered some amount of buybacks in the last year), it’s encouraging to see more employees get liquidity, which will lead to more founders (employees having the capital to build their own companies) & more angel investors (employees investing their capital in other founders)
  • Feedback & ❤️ always appreciated

    More tomorrow :) BONUS (Tweet of the day):https://twitter.com/Tijori1/status/1227211575871696898