"EDITION 190"

Published: 11/5/2020

Good morning, it's Thursday and we still don't know who won the US elections yet* (officially). This is probably the first time I'm writing a newsletter watching CNN instead of listening to music and it's honestly kind of a vibe. We've got the Mech Mocha acquisition today as well as an EggriTech (ok AgriTech) startup.

  • https://bit.ly/3epB8xA: Flipkart acquires Gaming company Mech Mocha
  • ➡️ Indian eCommerce giant Flipkart announced that they have acquired the IP of gaming company Mech Mocha- that runs the popular app "Hello Play". With the acquisition, Mech Mocha's gaming team will join the company and the cofounders Arpita Kapoor and Mohit Rangaraju will be scaling Flipkart's gaming efforts under Prakash Sikari (VP @ Flipkart)

    ➡️ Mech Mocha develops and publishes freemium games like Ludo, Carrom & Cricket among other popular multiplayer games on its platform in several languages and largely targets users coming online for the first time from Tier 2 & 3 cities. The cool thing about the app is that it lets users interact with each other through in-app video & audio chat.

    ➡️ It seems like Flipkart wants to target casual gamers & new internet users and potentially convert them into buying online for the first time or doing so more frequently. Building an in-app communication platform was also probably not super cheap so I'm sure Mech Mocha is going to get a huge upgrade by being able to use Flipkart's internal engineering infrastructure to power their platform.

    ➡️ This also seems like another platform with a lot of eyeballs where Flipkart can expand their Ad network and potentially their rewards as well. This is certainly not a super common acquisition for Flipkart as it is the first gaming company they have acquired (though it is important to note that Flipkart did invest in the company's seed round round).

    ➡️The company raised a $1M seed from Blume and Flipkart back in 2015, and had also raised a $5M Series A from Accel & Shunwei in 2017. According to VCCircle (in Nov 2018), the company was likely to valued at around $30-32M but the value at which the company was acquired has not been disclosed.

    ➡️ The company hasn't really has capital in a couple of years, so the acquisition might come in a time of weakness not strength for the company. I wouldn't be surprised if Accel and Shunwei make a small loss or make their money back with Blume probably getting a larger multiple but nowhere close to a fund-returner.

    ➡️ On the bright side, larger Indian startups & conglomerates acquiring smaller startups is definitely good news for the ecosystem and I hope we see more of this in the future.

    2. https://bit.ly/2TV8I54: AgriTech Eggoz raises a $1.5M Pre-Series A from Avaana & Rebright

    ➡️ Eggoz (not to be confused with the popular toaster waffles Eggo's) has announced a $1.5M Pre-Series A from Avaana Capital and Rebright Partners. The company had also previously raised a Rs. 1.2 Cr angel round & Rs. 2.5 Cr seed round.

    ➡️ Founded in 2017, the company aims to be the consumer-focused brand for eggs and wants to be the preferred brand for farmers & consumers alike. India consumers 100B eggs every year (WOW!) but the sector hasn't seen much innovation in product development. Eggoz sources from farmers directly and builds products for the farmers to maintain a robust supply of high quality products.

    ➡️ Farmers get higher earnings & a faster payout and access to financing through Eggoz. The company currently has sold over 25M eggs with over 100k birds under management (first time I've heard that metric)

    ➡️ I definitely have very little insight into most AgriTech companies as is the same with Eggoz but their verticalized approach to owning the entire Egg Stack seems very interesting. The company will use the capital to expand into more markets, grow its supply base and work on its tech platform, which will hopefully help the company hitting a larger scale.

    Feedback & ❤️ always appreciated BONUS (Tweet of the day): https://twitter.com/b50/status/1324234574629498882

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