"EDITION 172"

Published: 10/9/2020

Good morning, it's Friday and we have a couple of new companies raising some capital today.

  • https://bit.ly/34DMQ2X: Indian crypto exchange raises a series A round led by Draper Associates
  • ➡️ Bangalore-based crypto exchange Unocoin has raised an undisclosed amount of funding from legendary Silicon Valley investor Tim Draper's Draper Associates. XBTO Ventures and 2020 Ventures also participated in the round.

    ➡️ The participation comes at a time where Unocoin is finalizing their Series A round where they are raising $5M at a $20M valuation. The company plans to use the capital to build up their engineering team and enhance its product infrastructure & offerings.

    ➡️ I was a little surprised when I saw Tim Draper's firm being the lead investor- back in 2019 Tim Draper had said that he would seriously reconsider investing in companies in the country after the controversial Citizenship Amendment Act was passed in 2019.

    ➡️ There also seems to be a renewed interest in the space after the Supreme Court lifted RBI's ban on cryptocurrencies, which has led to an increase in the adoption of crypto in the country.

    ➡️ And while trading volumes have been on the rise in the country post the ban being lifted, it's not necessarily clear how the current ruling government thinks about crypto which might have an impact on the companies in the future.

    2. https://bit.ly/33IcioP: Chiratae invests Rs 23.5 Cr in agritech co Ergos

    ➡️ 2020 seems to have been a good year for the agritech sector with Clover, Arya, DeHaat, Kamatan Farm and Bijak raising ~$70M in capital. And now we have Ergos with a Rs. 58.5 Cr Series A round led by Chiratae Ventures with participation from Avishkar Bharat Fund (ABF) as well.

    ➡️ The company is estimated to be valued around Rs 134-136 Cr and interestingly the founders collectively control less than 25% of the country, with ABF controlling 26.22% of the company & Chiratae 17.6%

    ➡️ The company acts as a grain bank that enables farmers to convert their grains into tradable assets and get credit against their stored produce from NBFCs & Banks, as well as get better prices for their produce.

    ➡️ The company was started about 5 years ago and has been backed by ABF since 2016. The platform already has over 30,000 farmers who have sold over Rs. 125 Cr worth of produce. The cross-section of agriculture & financial services is certainly very interesting and at a time where liquidity isn't the easiest to come by, I can see where Ergos could be helpful.

    Feedback & ❤️ always appreciated BONUS (Tweet of the day): https://twitter.com/Arghya_justify/status/1313735564047216641

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