"EDITION 204"

Published: 11/25/2020

Good morning, it's Wednesday and we have another Indian unicorn! Also wanted to give everyone a quick heads up that tomorrow is Thanksgiving so we shall be off tomorrow and friday for the holidays and will be back with regular programming on Monday.

  • https://bit.ly/3m3KMcb: Cars24 raises $200M to become India's next unicorn
  • ➡️ Online used car marketplace Cars24 has become India's newest unicorn as it announced its $200M Series E led by DST Global with participation from existing investors Exor Seeds, Moore Strategic Ventures and Unbound.

    ➡️ We've seen a bunch of new unicorns in 2020 (especially in Fintech & EdTech) but Cars24 is now the most valuable used car marketplace in the country and is planning to use the new capital towards building new verticals.

    ➡️ The company operates on an asset-heavy model- buying cards on the behalf of dealers and then selling to consumers. They also recently launched a two-wheeler category that they plan to double down on- the company has already transacted over 3000 two-wheelers.

    ➡️ And while there was some impact to the company's business due to the pandemic, the company's transaction volumes are now surpassing pre-pandemic levels (by >20%) which is certainly a welcome sign for them. The company presently does 15,000 transactions every month and this is probably poised to grow with the expansion of verticals.

    ➡️ The company also has an NBFC license for its own financing business and this fits the thesis of all companies eventually becoming fintech cos- I can certainly see this part of the business growing quickly and becoming a meaningful part of the business in the future.

    2. https://bit.ly/3fvasfg: Zerodha invests ₹10 Cr in ERPNext

    ➡️ Rainmatter, Zerodha's investment & incubator, has invested ₹10 Cr in ERPNext- an open source enterprise resource planning system. There certainly haven't been too many companies in the OSS space in India so the investment was certainly interesting.

    ➡️ The way a lot of these business work is that their core software is free and open sourced for anyone to use themselves, while the company charges businesses for a managed solution- installation & hosting. Zerodha came across the company in 2016 and have been using it since.

    ➡️ The company's founder, Rushabh Mehta, founded the company to create a system to manage his family business and out of that, him & his team have turned it into an impressive ERP system with tons of modules (everything from inventory management to payroll to sales and support CRM, and ticketing to HR and employee wellness)

    ➡️ The company is already being used by over 5000 companies across the world (though I'm not sure how many used the managed cloud instance vs the self hosted version)- I assume most of the smaller businesses pay for the managed service while some of the larger and highly technical companies i.e Zerodha self-host & manage their systems.

    Feedback & ❤️ always appreciated BONUS (Tweet of the day): https://twitter.com/february_31st/status/1331164858687975424

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