Here are the top headlines from the startup space this week.
BharatPe fires Madhuri Jain for alleged misappropriation of funds
Fintech unicorn BharatPe has fired Madhuri Jain, the company’s controller, on charges of “misappropriation of funds”.
Jain, whose husband is BharatPe cofounder Ashneer Grover, was in charge of finances since October 2018.
BharatePe sources told CNBC-TV18, that Madhuri Jain was terminated on charges of alleged fraud and embezzlement. “Ongoing probe has found misappropriation of funds during her time at BharatPe. Probe found she funded travel, skincare, and bought expensive electronics with company money. Probe found personal spends of few crores on company money, including over Rs 1 crore on holiday travels,” BharatPe sources said.
As per a preliminary report by risk advisory firm Alvarez & Marsal conducted in January, inconsistencies were found in dealings with vendors. The report had flagged up payments to vendors and consultants that were non-existent, Moneycontrol reported.
Ronnie Screwvala-backed edtech startup Lido Learning shuts shop
In a nightmare for more than 150 employees, homegrown edtech startup Lido Learning which is backed by top entrepreneur Ronnie Screwvala, has apparently shut operations, forcing its workforce to seek help via social media platforms.
Several vendors and employees of Lido Learning took to social media and professional networking platforms, complaining about delayed payments and no salaries for nearly two months.
According to employees, Lido Learning’s Founder Sahil Sheth addressed the town hall meeting, informing them that the startup is going through financial constraints.
An industry source told IANS that Lido Learning has shut operations and has sent email notices to its employees.
After Lido Learning, layoffs at OkCredit as the startup pivots from digital bookkeeping to fintech
Digital ledger and bookkeeping solutions provider OkCredit has laid off 35 employees this month across all functions, people familiar with the development told CNBC-TV18.
As per a company spokesperson, the reason behind the move is change in priorities for OkCredit. The Tiger Global-backed startup is gearing up for its foray into the fintech sector.
“As an organization that is in the growing phase, OkCredit has decided to put in effect a change in the company’s priorities. Going ahead we will be focusing on fintech initiatives and on strengthening our growth channels alongside digital, in our mission to help Small and Medium Businesses grow their business in India,” a company spokesperson said.
“This change in priorities also necessitated an assessment of our employee roles, and some restructuring has been deemed necessary, affecting some of our employees,” the spokesperson added.
The company, however, has promised the employees severance pay, ESOP transfers, extended medical insurance, outplacement services to make their transition into their new careers as seamless as possible. This information was confirmed by the employee who spoke to CNBC-TV18.
Post the layoffs, OkCredit, has a total employee base of 100 members, one of the sources said. The company spokesperson told CNBC-TV18 that as part of the re-alignment, OkCredit will be hiring talent with relevant skillsets.
Swiggy eyes $800M IPO early next year: Report
Food delivery company Swiggy, which is backed by SoftBank Group, has started preparations to raise at least $800 million in an IPO early next year, the Nikkei reported.
Swiggy has begun adding independent directors to the board, and plans to position itself as a logistics company and not just a food delivery firm, according to the report.
Swiggy doubled its valuation to $10.7 billion in its latest funding round.
ACQUISITION NEWS
Chargebee acquires collections management platform Numberz
SaaS-based subscription management platform, Chargebee, has acquired private equity-backed collections management platform Numberz for an undisclosed sum.
Chargebee that operates in India through its subsidiary Chargebee Technologies, became unicorn in April in last year.
The company has also launched Chargebee Receivables with this strategic acquisition. The platform will now help subscription businesses to smartly automate their entire receivables process from purchase to payment, and will also manage subscription products and invoices.
Good Creator Co to acquire video commerce startup Bulbul: Sources
The Good Glamm Group owned Good Creator Co is all set to acquire video commerce platform Bulbul, sources told CNCB-TV18.
The 100 percent acquisition will be announced by the company next week.
As part of the deal, Bulbul’s founder Sachin Bhatia will take over GCC’s chief executive, as per a report. The acquisition is expected to help GCC ramp up its influencer-led social commerce play and use Bulbul’s tech stack to help creators launch digital storefronts, the ET report added.
Great Learning acquires recruitment platform Superset
Global player in the professional and higher education segment and a BYJU’S group company, Great Learning has acquired Superset, a leading Talent Recruitment Automation Platform for an undisclosed amount.
Superset’s cutting-edge digital solutions for campus placements and corporate recruitment will augment the skill-based professional learning offerings from Great Learning to bridge the ‘skill- gap’ for India’s talent.
Superset will continue to operate under the leadership of its co-founders, Naman Agrawal and Pranjal Goswami.
CollegeDekho acquires Getmyuni and IELTSMaterial for Rs 50 Cr, aims to hit a 4x revenue run rate growth
Edtech firm CollegeDekho has acquired its peer firms Getmyuni and IELTSMaterial for about Rs 50 crore in a mix of cash and equity deal.
With this, CollegeDekho aims to hit a 4x revenue run rate growth over its last year’s numbers and scale further to maximise its growth this year. Post the acquisition, Getmyuni will continue to operate independently and some of the leadership team will also join the board of the combined entity, the company said in a statement.
Curefoods buys franchise rights for US-based Sbarro
Ankit Nagori-led cloud kitchen company Curefoods, has acquired the South India franchise rights for US-based legacy pizza chain – Sbarro.
As part of the acquisition, Curefoods plans to open around 50 Sbarro outlets in the next 3 years starting with Karnataka. The expansion will consist of a mix of walk-in outlets and cloud kitchens to ensure maximum customer reach. The first Curefoods-owned Sbarro outlet is set to open in Bengaluru within the next quarter, the company said in a statement.
Airtel acquires strategic stake in blockchain technology startup Aqilliz
Telecom major Bharti Airtel has acquired a strategic stake in Aqilliz, a ‘Blockchain as a Service Company’. However, it did not divulge the financial details of the deal.
Airtel aims to deploy Aqilliz’s blockchain technologies at scale across its fast-growing adtech (Airtel Ads), digital entertainment (Wynk Music and Airtel Xstream) and digital marketplace (Airtel Thanks App) offerings.
Femtech startup Sirona acquires IMPOWER in an all-cash deal
Femtech startup Sirona has forayed into the women safety segment with the acquisition of women’s safety brand – IMPOWER from Donna FMCG in an all-cash deal. The size of the deal however remains undisclosed.
After raising Rs 100 crore from the Good Glamm Group, the company said it is bullish on strategic acquisitions and scaling growth to hit the 500 crore revenue mark within the next 3 years.
RenewBuy acquires AI solutions based InsurTech start-up, Artivatic.AI
InsurTech player, RenewBuy acquires cutting-edge, artificial intelligence based InsurTech company, Artivatic.AI for an undisclosed amount.
Artivatic.AI has been delivering underwriting and claim solutions to multiple life and non-life insurers. The acquisition will allow RenewBuy extend its tech solutions across the value chain, from sales to underwriting and claim solutions, it said in a statement. The deep tech integration will also help in providing consumer solutions, related to insurance claim settlements (which remains a challenge for the category), risk assessments and underwriting.
OTHER STARTUP NEWS
WazirX launches BUIDL platformp for crypto entrepreneurs
Cryptocurrency exchange startup WazirX has launched ‘BUIDL With WazirX’, a platform to let upcoming crypto entrepreneurs build their own billion-dollar exchanges.
It will also offer a slew of tools, capabilities and APIs enabling access for entrepreneurs to over 300 trading pairs, the company said in a statement.
This B2B offering will also include technical assistance and guidance in developing product modules and counselling on KYC and AML compliance concerns. WazirX will also help these budding entrepreneurs in raising funds by connecting them with venture capitalists. The crypto exchange has already partnered with a few venture capital funds, it added.
Cars24 announces Rs 75 Cr ESOP buyback
E-commerce platform for pre-owned vehicles Cars24, has announced its annual ESOP Buyback worth Rs 75 crore to reward their employees.
The value of total ESOP buyback till date of Cars24 stands at about Rs 113 crore. The company said it has consistently held annual ESOP buybacks for the last four years, for both existing and former employees.
Unacademy launches new learning product with Sachin Tendulkar
Edtech unicorn Unacademy has launched a new learning product, ‘Unacademy Icons’, which will provide a structured curriculum taught by industry icons and stalwarts.
Icons will have an interactive course developed by Sachin Tendulkar and his brother Ajit. Tendulkar will mentor Unacademy learners through a series of thirty-one interactive lessons of over seven hours, the company said in a statement.
Euler Motors lines up Rs 200 Cr capex to enhance production capacity
Electric three-wheeler start-up Euler Motors plans to invest Rs 200 crore in the next 12 months to ramp up its production capacity. The company plans to increase its production capacity to 3,000 vehicles units per month by mid-2022.
It currently operates out of its integrated R&D (research and development) and corporate office in Delhi that has a production capability of 4,000 vehicles per annum. The firm now plans to reach 35,000 units per annum by the end of FY23.
Religare Broking launches ‘Pre Apply LIC IPO’ app
Religare Broking has announced the launch of Religare – Pre-Apply LIC IPO App which will be a one-stop app to open a DEMAT Account and share intent for pre-applying for LIC IPO.
Even before the public announcement of the LIC IPO, the investors can share their interest in the upcoming LIC IPO and get an instant mobile notification, SMS, and email communication as soon as the IPO opens up for the public subscription, the firm said.
All types of investors, including existing LIC policyholders and first-time investors can register their interest for LIC IPO.
SEBI plans to tighten IPO pricing rules for new-age tech firms
The Securities and Exchange Board of India (SEBI) has proposed to tighten the disclosure standards of new-age tech firms that plan to hit the market with public issues.
The market regulator plans to ask these firms to justify the pricing of shares for their initial public offerings (IPOs) in order to bring in more transparency on the listing of shares.
SEBI issued a raft of proposals in its discussion paper and has set a March 5 deadline for the public to give their comments.
Crypto, NFT ads must carry ‘highly risky’ disclaimer, says ASCI
India’s self-regulatory advertising body has made it mandatory for all ads on cryptocurrencies and non-fungible tokens to carry a “prominent and unmissable” disclaimer that says, “crypto products and NFTs are unregulated and can be highly risky”.
The Guidelines for Virtual Digital Assets and Linked Services by the Advertising Standards Council of India (ASCI) laid out various dos and don’ts—going into as much details as to where, for how long, when, and in which formats this disclaimer should be placed to make sure people are not misled. It also warned celebrities to ensure they have done their “due diligence” before promoting such products.
The ‘Guidelines for Virtual Digital Assets and Linked Services’, ASCI said, would be applicable to all ads released or published on or after April 1, 2022. It also said ads appearing after April 15, 2022, must be in compliance with the guidelines.
Paytm Payments Bank’s merchants to accept e-RUPI prepaid vouchers
Paytm Payments Bank has announced that it is an official acquiring partner for e-RUPI vouchers, making it accessible at offline stores across the country.
The bank has also partnered with One97 Communications Limited that owns Paytm to leverage the latter’s strong merchant base. With this, merchants will be empowered with another digital payment collection method that will help them further increase their digital footprint and onboard more customers, the firm said in a statement.
50% of India leaders feel unsure about the future of work: PwC Report
With the pandemic bringing unprecedented changes in work life, a report has revealed that 50 per cent of India leaders agree there is a need to plan for multiple possible futures around the workplace and workforce.
However, the cost pressures, competing investments or priorities, lack of systems and data, and organisational culture are the biggest inhibitors faced by India leaders in creating a more fit for future workplace, according to PwC India’s People and culture first: Transformation journey in the future of work report.
“About 50 per cent of India leaders agree there is a need to plan for multiple possible futures around the workplace and workforce but cost pressure and the fear of setting a precedent holds them back from taking action,” said the report.
It also revealed that the future of work involves tapping into talent virtually in tier II and III cities on the one hand, and leveraging the gig economy on the other.
78% professionals want employers to upskill them for hybrid work: Harappa’s Survey
The pandemic has completely changed the future of work, making it clear that hybrid workplaces are here to stay.
A survey by online institution for behavioral skilling Harappa finds that to be effective and productive contributors in the hybrid workplaces of the future, professionals will need to evolve an essential set of cognitive, social and behavioral skills to navigate ever-new challenges.
The survey also highlighted that 78% of professionals said that their organisations should invest in programmes to help them become work-ready in the hybrid world.
GLOBAL TECHNOLOGY & STARTUP NEWS
TECH EARNINGS
Jack Dorsey’s Block beats profit estimates
Block, the payments company of Twitter founder Jack Dorsey, posted better than expected fourth-quarter profit thanks to a highly volatile bitcoin market and booming online retail, sending its shares soaring.
Total revenue hit $4.08 billion in the quarter from $3.16 billion a year earlier, while “gross profit” jumped 47% to $1.18 billion, the company said.
Its unit that sells terminals and software for businesses to process payments, Square, generated gross profit of $657 million, up 54%. Cash App, which lets individuals send payments including in bitcoin, grew gross profit 37% to $518 million.
Cash App generated $1.96 billion of bitcoin revenue in the quarter, up 12% from a year earlier despite the cryptocurrency’s sharp swings in value late last year.
Coinbase beats expectations in Q4 earnings
Coinbase reported fourth-quarter earnings that beat analyst estimates after the bell on Thursday.
In the fourth quarter of 2021, Coinbase generated $2.50 billion in total revenue, up from $585.1 million in the year-ago quarter.
The company’s massive growth in top-line led to huge profitability gains, with its net income soaring from $176.8 million in the final three months of 2020 to $840.2 million in Q4 2021. The company also reported GAAP earnings per share of $3.92, on a diluted basis, in the final quarter of last year.
Alibaba reports smallest rise in quarterly revenue, misses expectations
Chinese e-commerce giant Alibaba has reported its slowest quarterly revenue growth since going public and missed expectations.
During its annual Singles’ Day promotional event last November, the company recorded gross merchandise value growth of 8.5%, a record low. International commerce reached 16.45 billion yuan, up 18%. Local consumer services, which includes the company’s food delivery apps, generated 12.14 billion yuan, up 27% from a year ago, Reuters reported.
Ant Group, Alibaba’s fintech affiliate, posted a profit of about 17.6 billion yuan for the quarter ended September, according to Alibaba’s filings, compared with 19.7 billion yuan in the previous quarter and 15 billion yuan a year ago.
EBay forecasts bleak quarter as online shopping frenzy wanes
EBay has forecast bleak first-quarter results, as the e-commerce platform tackles waning online demand, stiff competition and global supply chain disruptions, sending the company’s shares down nearly 9% in extended trading, Reuters reported.
EBay expects first-quarter adjusted profit in the range of $1.01 to $1.05 on revenue of $2.43 billion to $2.48 billion; both estimates came in below Wall Street’s expectations.
The company’s 2022 revenue and profit forecasts were also below expectations.
Meanwhile, eBay posted an adjusted profit of $1.05 per share on revenue of $2.61 billion in the fourth quarter ended Dec. 31, above analysts’ average estimates, according to IBES data from Refinitiv. Part of eBay’s revenue comes from advertising on its platform which crossed $1 billion last year, the company said.
OTHER GLOBAL NEWS
Facebook, Twitter highlight security steps for users in Ukraine
Facebook owner Meta Platforms has set up a special operations centre to monitor the conflict in Ukraine, and it launched a feature so users in the country can lock their social media profiles for security, a company official said in Twitter posts.
Twitter also posted tips on how users can secure their accounts against hacking, make sure their tweets are private and deactivate their accounts. The company tweeted the safety tips in English, Russian and Ukrainian.
As the conflict in Ukraine escalated on Thursday, social media users took to platforms like TikTok, Snapchat and Twitter to post videos of evacuation lines, helicopters in the sky and anti-war protests in Russia.
Google relaxes mandates, opens amenities as it prepares for workers to return: Report
Google is dropping some Covid-related mandates for employees and restoring perks back to its headquarters as it prepares to bring workers back to the office.
Google Real Estate and Workplace Services VP David Radcliffe wrote an email to San Francisco Bay Area employees this week explaining that the company is relaxing some rules around vaccines, testing, social distancing and masks. Separately, a Google spokesperson told CNBC that the company has reversed course and will not require vaccinations as a condition of employment for US workers, but declined to offer further details.
Radcliffe’s note also said that perks such as massages and access to informal spaces in the office will be returning. In the past, Google has been able to attract talent with fun office amenities, but many of those were suspended during the pandemic.
Activision’s mobile gaming unit to see leadership changes ahead of Microsoft deal
Video game maker Activision Blizzard’s mobile gaming unit, King, said on Wednesday two of its senior executives, including a co-founder, would leave the company before its deal with Microsoft Corp, according to a Reuters report.
In January, Microsoft said it was buying the “Call of Duty” maker for $68.7 billion in the biggest gaming industry deal in history as global technology giants stake their claims to a virtual future.
Sebastian Knutsson, one of the founders of King, is stepping down from his role as chief creative officer, the “Candy Crush” maker said. President Humam Sakhnini, who worked for six years at King and 12 years at Activision Blizzard, is also stepping down from his role, with Tjodolf Sommestad replacing him. According to the company, Sakhnini is stepping down to return to the United States.
Users should be allowed to sue US tech giants under EU rules, civil groups say
Individual users should be allowed to take US tech giants to court for breaching landmark EU rules aimed at curbing their power, Privacy International, pan-European consumer group BEUC and a number of academics said.
As per a Reuters report, the call by the coalition of 31 groups and academics comes as EU lawmakers and EU countries thrashed out the final points of the Digital Markets Act (DMA) proposed by EU antitrust chief Margrethe Vestager just over a year ago before it can become law.
The draft DMA sets out a list of dos and don’ts for online gatekeepers, in effect targeting Apple, Alphabet unit Google, Facebook parent Meta, Amazon and Microsoft. It only allows business users to sue violating companies.
SEC probes Elon Musk, brother Kimbal over Tesla share sales – WSJ
The Securities and Exchange Commission is investigating whether recent stock sales by Tesla CEO Elon Musk and his brother Kimbal Musk, who sits on Tesla’s board of directors, violated insider trading rules, the Wall Street Journal reported.
According to the report, the investigation began last year after Kimbal sold shares of the electric carmaker valued at $108 million, a day before Musk polled Twitter users asking whether he should offload 10% of his stake in Tesla.
Kimbal Musk did not know about the Twitter poll ahead of it, Elon Musk told the Financial Times in an email, adding that his lawyers were “aware” of the poll.
China asks state firms to check investments in Jack Ma’s Ant, sources tell Reuters
Chinese regulators have asked state-owned firms to kick-off a fresh round of checks to find out their investments into and other linkages with billionaire Jack Ma’s Ant Group, sources told Reuters.
State-owned banks and non-bank firms are among the entities that have been asked by the regulatory authorities to make checks, said the sources.
The request came last week, one of the sources said. It was not immediately clear if the firms have been given a deadline to submit the information nor what action, if any, will be taken after that.
The regulatory authorities have asked the state-owned firms to submit details of investments in equities, and exposure to asset-backed securities, and loans in relation to Ant.
Reddit launches Discover feature for photos, videos on app
Online message board platform Reddit is launching a new Discover tab that will feature photos and videos from across the site to make its mobile app more visually appealing.
The new feature comes after Reddit confidentially filed for an initial public offering in December. The company is aiming for at least a $15 billion valuation, Reuters has previously reported.
Trump-backed Truth Social tops Apple’s app store charts
Truth Social, a new social media platform backed by former President Donald Trump, sat at the top of Apple’s free apps download charts as of Tuesday morning.
The platform unveiled a soft launch late Sunday, according to Reuters, with many users prompted to join a waitlist. Some who tried to sign up reported glitches when attempting to create an account, though such issues are common in early app releases.
Truth Social has been delayed several times. The full launch was first planned for Feb. 21, but that date has been pushed back to March 31.