"EDITION 125"

Published: 7/31/2020

It's Friday! I'm happy by the way this week is ending because the NBA is back and I'm very glad I can watch more sports. A lot of big tech cos reported their Q2 earnings in the US today and their stocks all went 📈 (Reliance also reported their quarterly financials). In the day's news, an interview with G.V. Ravishankar (Managing Director @ Sequoia India) & MobiKwik's new product.

  • https://bit.ly/3fgusAo: Focus on profitability, not growth
  • ➡️ With the global pandemic, Venture capitalists have been urging companies to focus on profitability over rapid & unsustainable growth plans. And while funding activity had dropped off in the early months of the pandemic (March & April), it seems to be back to normal (at least in sectors that haven't been directly affected).

    ➡️ In the midst of all this, Sequoia Capital India also announced two new funds with a total corpus of $1.35B for venture & growth investments. G.V. Ravishankar, Managing Director at Sequoia, dropped some insights on investing during this time period.

    ➡️ He says that the last couple months have been about surviving, adapting & building for the future & that the startup industry is very resilient. Companies are reducing their burn, pivoting and all sorts of things in order to survive while companies in some sectors are thriving because of the environment created by the pandemic.

    ➡️ Interestingly, the deal sizes & valuations haven't seen any sort of correction in India while there was some chatter in March/April that there was a correction in the US. There has also been strong activity in certain sectors (EdTech & Healthcare to name a few).

    ➡️ Ravishankar ends by saying that this global crisis is different from the 2008 financial crisis with a current lower consumer demand (more B2B startups?). There is however still a lot of capital flowing into startups and companies will continue to raise and build meaningful businesses.

    2. https://bit.ly/2Dm4vm1: MobiKwik launches mpay.me

    ➡️ MobiKwik, the fintech co, just launched a new product that enables anyone to start collecting payments directly to their UPI-linked bank account. In all honesty, I forgot this company existed and I haven't really heard too much about that they've been up to recently.

    ➡️ But with mpay.me, it seems like company is delving deeper into the business side of things as the product would let merchants set up a link using their mobile number to start receiving money.

    ➡️ This, in my opinion, is quite similar to Instamojo's payment link product (though I assume Instamojo's onboarding is slightly more cumbersome). It looks like the idea behind the service to the alleviate the confusion when senders & receivers of money are using different UPI apps (though I thought having QR codes & UPI IDs alleviated this).

    ➡️ MobiKwik claims that it has over 120M users, 3M merchants & over 300+ billers on the platform and probably can easily distribute this product to the merchant base it has on the platform. But how this fits in the company's long-term thesis is something I am not certain about.

    Feedback & ❤️ always appreciated BONUS (Tweet of the day): https://twitter.com/loganbartlett/status/1288879982798921731

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