StartupSuperb

Category: Reports

  • Startup Investments and Acquisitions in India: Highlights from January 27 to February 1

    Startup Investments and Acquisitions in India: Highlights from January 27 to February 1

    Indian Startups Raise $240.85 Million in Funding

    Throughout the week, approximately 30 Indian startups secured around $240.85 million in funding. This included 5 growth-stage deals and 20 early-stage deals, while 5 startups opted not to disclose their transaction details.

    Growth-Stage Funding

    In the growth-stage funding segment, the edtech startup Leap garnered $65 million in its Series E round led by Apis Partners. B2B seafood venture Captain Fresh raised $30 million in its ongoing pre-IPO round. The SaaS IT management platform SuperOps received $25 million, and a supply chain startup also secured $12 million in its Series C round from Evolvence India and Mirabilis Investment Trust.

    Early-Stage Funding

    Furthermore, 20 early-stage startups attracted funding totalling $107.15 million during the week. Leading the early-stage funding was the B2B SaaS startup Atomicwork with $25 million from its Series A round. The co-working company Innov8, healthcare services provider Geri Care focused on senior citizens, telecom firm Astrome Technologies, and mobility startup VoltUp were among others that received funds.

    Several D2C handloom brands like Dressfolk and road safety products manufacturer Prisomoline also obtained funding, but the amounts remain undisclosed. For further details, various sources can be consulted.

    City and Segment-Wise Funding

    City-wise, Bengaluru-based startups dominated with 12 deals, followed by Delhi-NCR, Mumbai, Chennai, Patna, and other cities.

    Segment-wise, e-commerce startups led with 5 deals, while SaaS and fintech startups followed closely with 3 deals each. Foodtech, healthtech, manufacturing, and others also secured funding.

    Series-Wise Funding Deals

    In the series-wise breakdown for the week, Seed funding deals led with 10 agreements, trailed by Series A, pre-Series A, Series B, pre-seed, and other funding rounds.

    Weekly Funding Trends

    Comparatively, startup funding exhibited a slight decrease of 3.22% to $240.85 million this week, down from $248.87 million raised the previous week. The average funding over the past eight weeks averages around $349.53 million, with 26 deals executed weekly.

    Key Hires and Departures

    This week witnessed several significant hires. Zomato appointed its former Head of Growth, Shalin Bhatt, as the Head of its Dining-Out division. FlexiLoans made prominent executive appointments, including Hemant Saklecha as the Chief Credit and Risk Officer (CCRO) and Pavan Matai as the Head of its Supply Chain Finance unit.

    Notable departures took place as well, with Sridhar Vembu stepping down as the Founder and CEO of Zoho. The Managing Director and CEO of Paytm Payments also resigned, along with Clensta’s Co-founder and Chief Business Officer.

    Mergers and Acquisitions

    This week saw several significant acquisitions. Raise Financials acquired the financial media startup Filter Coffee, while Shadowfax, a logistics firm, took over CriticaLog. NODWIN Gaming, owned by Nazara, expanded its portfolio by acquiring e-sports startup StarLadder, and MapMyIndia secured a stake in AI startup SimDaaS. More information can be found across various sources.

    Fund Launches

    In fund launches, the venture debt firm Trifecta Capital announced the initial close of its fourth and largest venture debt fund to date, amassing Rs 2,000 Cr (approximately $230 million). The early-stage angel VC firm Peaceful Progress Fund also closed its first fund at Rs 50 crore. Veloce Fintech, part of the Lemon Group, introduced its SEBI-registered Category-II Alternative Investment Fund (AIF) called the Veloce Opportunities Fund.

    To see the series-wise deals along with amounts and specific details regarding fund launches, one can refer to various sources.

    New Launches and Partnerships

    • CRED launches e₹ wallet in collaboration with RBI
    • Paras Chopra to establish an advanced AI lab in India following a $200 million exit
    • ONDC partners with CoRover to launch Mahakumbh AI Sahayata
    • ETO Motors teams up with FlixBus for intercity electric bus ventures
    • The Derma Co opens its first brand outlet in Gurugram
    • Easebuzz collaborates with Zepto to enhance payment infrastructure
    • Anq introduces RuPay On-The-Go on X Card for seamless transit
    • Elever launches quant-based Portfolio Management Services (PMS)
    • Paytm unveils QR Widget for immediate payment collection on Android home screens
    • Pee Safe partners with National Games 2025 to promote women’s health and sustainability
    • Hyperone Energy aims to release India’s first EV moped with chain drive technology by 2025
    • Flipkart introduces a feature for credit card bill payments
    • Nutraceuticals brand Miduty branches into skincare with clean, science-based products

    Financial Results This Week

    • Upstox reports an eightfold profit increase to Rs 190 Cr in FY24
    • PB Fintech declares a revenue of Rs 1,292 Cr and profits of Rs 72 Cr for Q3 FY25
    • CollegeDekho’s revenue surges by 32% to Rs 216 Cr in FY24
    • CityMall achieves Rs 450 Cr GMV in FY24 despite ongoing losses
    • CarTrade posts Rs 176 Cr in revenue along with Rs 45.5 Cr in profits for Q3 FY25
    • MapMyIndia records Rs 32 Cr profit for Q3 FY25
    • Ixigo shows Rs 242 Cr revenue in Q3 FY25 with a 54% jump in PBT
    • A23 reports Rs 841 Cr in revenue and Rs 72 Cr profit in FY24
    • Parent company of Man Matters, Mosaic Wellness, records Rs 333 Cr in revenue for FY24

    Potential Deals

    • InsuranceDekho aims to raise up to $100 million with bank participation
    • Mukka Proteins seeks Rs 60 Cr in debt funding from Tata Capital
    • Former Tiger Global executive’s Tanglin Venture Partners plans to raise $250 million for a new fund
    • D2C brand P-TAL is in talks to secure Rs 30 Cr in funding
    • Juspay is targeting to raise $150 million in a new funding round led by Kedaara Capital
    • Mahesh Bhupathi-backed Scentials is gathering fresh investments from existing stakeholders

    News Highlights This Week

    • OfBusiness transitions into a public company ahead of its IPO
    • Representatives from Accel, Prosus, and Bessemer exit The Good Glamm Group
    • Zepto has reverted its corporate domicile from Singapore to India
    • North East Small Finance Bank is set to rebrand as Slice Small Finance Bank
    • Flipkart Group has received a BSI code for organisational resilience
    • Lenskart has commenced its IPO process by appointing two bankers
    • MobiKwik becomes the first fintech company to fully implement CBDC
    • Droom plans to submit draft papers for a Rs 1,000 Cr IPO by June
    • Curefoods is in discussions with bankers for a $300-400 million IPO
    • Pine Labs is preparing to file IPO draft papers by mid-February
    • Shiprocket aims to become a public company with plans to list in the upcoming year
    • Servify is set to file a Draft Red Herring Prospectus (DRHP) for a $500 million IPO by August

  • A23 Announces Impressive FY24 Results with Revenue of Rs 841 Crore and Profit of Rs 72 Crore

    A23 Announces Impressive FY24 Results with Revenue of Rs 841 Crore and Profit of Rs 72 Crore

    A23 Reports Revenue Growth and Increased Profits in FY24

    Online rummy platform A23 has announced stable revenue figures for the fiscal year ending March 2024. Despite flat revenue growth, the company achieved a notable 24% rise in profits, attributed to effective cost management and an increase in non-operating income during the same timeframe.

    Financial Performance Overview

    A23’s net revenue reached Rs 841 crore in FY24, a slight increase from Rs 839 crore in FY23, as outlined in its consolidated annual financial statements sourced from the Registrar of Companies (RoC).

    • The company reported a gross revenue increase of 31%, amounting to Rs 1,378 crore in FY24, up from Rs 1,051 crore in FY23.
    • Out of this gross revenue, Rs 537 crore was disbursed to players, resulting in a net revenue of Rs 841 crore for FY24.

    Revenue Sources

    The platform fee, which is a percentage of users’ buy-in fees, served as A23’s primary revenue stream in FY24. Additionally, the company garnered Rs 37 crore mainly from interest accrued on deposits and current investments, leading to a total revenue of Rs 878 crore for FY24.

    A23 claims a player base exceeding 5 crore, offering five games: rummy, fantasy, poker, carrom, and pool.

    Cost Structure

    The company has not provided detailed disclosures regarding its overhead costs, documenting Rs 515 crore, which accounts for 68% of overall expenditure, under miscellaneous expenses. This category likely encompasses significant expenditures such as advertising, server maintenance, and hosting services.

    Employee benefits escalated by 41%, reaching Rs 138 crore in FY24, compared to Rs 98 crore in FY23. Other costs, including legal, safety and security, printing, travel, and miscellaneous overheads, resulted in total expenditures of Rs 761 crore in FY24.

    Profitability Metrics

    The strategic management of costs and the rise in non-operating income enabled A23 to achieve a 24% increase in net profits, amounting to Rs 72 crore in FY24, up from Rs 58 crore in FY23. Key profitability and efficiency metrics included:

    • Return on Capital Employed (ROCE): 11.5%
    • Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) Margin: 15.26%
    • Expense-per-Revenue Ratio: Rs 0.90

    As of the end of FY24, A23’s total current assets were reported at Rs 613 crore, including cash and bank balances of Rs 534 crore.

    Industry Context

    Within the real-money gaming sector, MPL reported a revenue increase of 22.2%, reaching Rs 1,068 crore in FY24. Gameberry and Gameskraft experienced revenue growth of 46.9% and 30%, respectively, to Rs 461.7 crore and Rs 3,500 crore. The financial results for Dream11 for FY24 are still pending release.

    The gaming industry has faced GST scrutiny for the past two years, with the Directorate General of GST Intelligence (DGGI) issuing 71 notices to gaming companies regarding alleged GST evasion amounting to Rs 1.12 lakh crores. Recently, the Supreme Court of India granted a stay on the GST show-cause notices directed at several online gaming companies. This ruling, handed down by a bench led by Justice JB Pardiwala, precedes the Supreme Court’s conclusive hearing scheduled for March 18, 2025.

    Future Considerations

    Despite governmental attention on the gaming sector, the industry continues to attract profitable startups. With no debt and significant managerial flexibility to control profits and report higher expenses, the performance of FY25 will be closely monitored amid discussions of a market slowdown, even as regulatory scrutiny remains prevalent from agencies like the GST authorities.

    A23, as a major player in the market, may find it challenging to navigate these issues, whether beneficial or detrimental. Nevertheless, the company is advised to invest in genuine game development to create authentic intellectual property (IP). Its current offerings may not provide a robust competitive advantage, highlighting the necessity for innovative strategies. Moreover, A23 is urged to refrain from the allure of cryptocurrency, which is likely to attract further regulatory attention.

  • Ultrahuman Achieves Impressive ₹620 Crore Revenue Milestone in 2024

    Ultrahuman Achieves Impressive ₹620 Crore Revenue Milestone in 2024

    Ultrahuman’s Impressive Growth in 2024

    Wearable technology startup Ultrahuman has experienced a remarkable increase in its operating scale, reaching $74.5 million (approximately Rs 620 crore) for the calendar year 2024 (CY24), as detailed in the company’s annual report. This represents a nearly six-fold rise in revenue compared to $12.9 million (around Rs 100 crore) reported in 2023 (CY23).

    The Bengaluru-based company also achieved a similar revenue figure for the financial year 2024 (FY24). Current trends suggest that Ultrahuman is on track to exceed the Rs 620 crore revenue mark in FY25.

    Financial Performance Overview

    Despite closing FY24 with a loss of Rs 39 crore, Ultrahuman managed to post a profit before tax (PBT) of 11% and achieved an EBITDA margin of 8% during the last calendar year (CY24), according to the firm’s report.

    Revenue Sources

    Ultrahuman attributes its growth largely to the flagship product, the Ring AIR, which accounted for 90% of its revenue, amounting to $67 million in CY24—up from $7 million in CY23. The remaining revenue came from:

    • PowerPlug/UltraHuman X: $2.8 million
    • Extended Ecosystem (M1, Home, Blood Vision): $4.3 million

    Peak Sales Achieved

    According to the report, Ultrahuman recorded its highest sales ever in November last year, achieving $17.7 million.

    Expansion and Innovation

    To accommodate increased demand, Ultrahuman expanded its Bengaluru UltraFactory by 15X in 2024 and also initiated a new facility in Plano, Texas, to enhance innovation and optimize supply chain efficiency.

    Organic Growth Focus

    Significantly, the company accomplished this growth without any advertising expenditure. Instead, it concentrated on organic growth, direct sales, and retail expansion during the year 2024.

    Retail Performance Highlights

    Retail sales saw a substantial increase, rising to 35% in 2024, up from 20% the previous year, while direct-to-consumer (D2C) sales remained robust at 41%. This expansion was fuelled by strong performances in emerging markets such as:

    • Thailand
    • Hungary
    • Germany

    Additionally, continued strength was noted in core markets including the US, India, UAE, and the UK.

    Gender Demographics

    In terms of gender demographics, the proportion of female users increased to 44% of Ultrahuman’s user base in 2024, up from 29% the prior year. This increase was influenced by features such as:

    • Cycle Insights
    • Ovulation Tracking
    • Introduction of size 5 for the Ring AIR

    Investment Highlights

    Ultrahuman has successfully raised over $60 million, including a $35 million Series B round led by the founder and CEO of Zomato, Deepinder Goyal, alongside existing investors. Nexus Ventures holds the largest external stake at 17.26%, followed by Blume Ventures. Co-founders Mohit Kumar and Vatsal Singhal own 28.9% of the company.

  • Toothsi’s Parent Company MakeO Sees Steady Revenue for FY24 as Losses Decrease by 32%

    Toothsi’s Parent Company MakeO Sees Steady Revenue for FY24 as Losses Decrease by 32%

    MakeO Reports Stable Revenue with Reduced Losses in FY24

    MakeO, the parent company of Toothsi and the skincare brand Skinnsi, has demonstrated stability in revenue following impressive growth of over 100% in FY23. For the fiscal year ending March 2024, the company achieved a 32% reduction in losses.

    According to the consolidated financial statements submitted to the Registrar of Companies, MakeO’s operational revenue slightly increased by 6.5%, reaching Rs 179 crore in FY24 compared to Rs 168 crore in FY23.

    Company Overview

    MakeO was established in 2018 by Arpi Mehta Shah, Pravin Shetty, Manjul Jain, and Anirudh Kal. It began as Toothsi, an aligner brand, and later consolidated its primary brands, including Skinnsi, to provide an extensive array of dental, skin, and hair treatment solutions.

    Revenue Breakdown

    • The sale of tooth aligners constituted 69.2% of the total operating revenue, which rose by 7% to Rs 124 crore in FY24.
    • The remainder of the revenue came from Skinnsi’s skin makeover services, including:
      • Laser hair reduction
      • Hydra facials
      • Anti-aging treatments
      • Acne treatments
      • Derma facials
      • Sales of skincare products

    Expenditure Overview

    Consistently, employee benefits remained the most significant cost for MakeO, representing 36% of total expenditure, which reached Rs 119 crore in FY24. The company made notable reductions in consultant fees and marketing costs, decreasing by 57% and 24% respectively, resulting in costs of Rs 26 crore and Rs 69 crore in FY24.

    The aggregation of software, payment gateway, rent, legal, travel, and other overhead expenses led to total costs being reduced to Rs 332 crore in FY24 from Rs 395 crore in FY23. A detailed breakdown of expenses can be found across various sources.

    Financial Performance

    Despite the modest growth, the trimming of consultant fees and marketing expenses enabled MakeO to reduce its losses by 31.8%, bringing them down to Rs 150 crore in FY24 from Rs 220 crore in FY23. The company’s Return on Capital Employed (ROCE) and Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) margin were recorded at -77.3% and -66.12% respectively, with an expense-to-earnings ratio of Rs 1.85. By the end of FY24, MakeO’s current assets stood at Rs 153 crore, comprising cash and bank balances of Rs 93 crore.

    Investment and Stakeholders

    To date, MakeO has successfully raised over $90 million, including a $16 million investment round led by 360 One Asset and Ashish Kacholia’s investment office. As reported by various data intelligence platforms, Eight Road Ventures is identified as the largest external stakeholder in MakeO, followed by Think Investment.

  • Unraveling ShareChat’s Financial Journey for FY24

    Unraveling ShareChat’s Financial Journey for FY24

    Overview of Mohalla Tech’s Financial Performance

    Mohalla Tech, the parent company of the vernacular social media platform ShareChat and the short video entertainment app Moj, has reported a remarkable year-on-year growth of 33% for FY24. Despite this achievement, the Bengaluru-based company did not reveal net losses, opting instead to present adjusted EBITDA.

    Revenue Insights

    According to the consolidated financial statements filed with the Registrar of Companies, ShareChat’s operational revenue surged by 29.9%, reaching Rs 718.1 crore for the fiscal year ending March 2024, a significant increase from Rs 552.73 crore recorded in FY23.

    Mohalla Tech is dedicated to the development and management of mobile software applications known as ‘ShareChat’ and ‘Moj’. These platforms facilitate the creation, consumption, and sharing of diverse content, including quotes, videos, images, and news.

    Revenue Breakdown:

    • Live Streaming/Chatroom Revenue: This segment accounted for 56.1% of total operating revenue, increasing by 41.4% to Rs 403 crore in FY24.
    • Advertising Revenue: Increased by 23.5%, totalling Rs 315.37 crore.
    • Online Fantasy Sports: Generated Rs 12.52 crore last year through Jeet 11, which ceased operations in December 2022.
    • Interest and Gains: An additional Rs 28.98 crore was earned from interest and financial assets, bringing total revenue to Rs 747.08 crore in FY24.

    Expenditure Analysis

    On the expenditure side, employee benefits emerged as the largest cost centre, representing 21.9% of total expenses. This cost decreased by 16.8% to Rs 580.39 crore in FY24, down from Rs 697.96 crore in FY23, which notably included an ESOP expense of Rs 131.95 crore.

    In 2023, the company undertook several cost-cutting initiatives, including laying off 700 employees in two phases. Further reductions are anticipated for FY25 with an additional 5% of the workforce being let go in August 2024.

    Key Expense Insights:

    • The cost of server rentals decreased by 45.3% to Rs 559.57 crore in FY24.
    • Finance costs rose by 50% to Rs 510.57 crore due to significant debt payments.
    • Provisions for doubtful assets and loans increased by 102% to Rs 402.56 crore in FY24.

    Overall, total expenses fell by 33.2%, amounting to Rs 2,644.71 crore in FY24 compared to Rs 3,958.75 crore in FY23.

    Note: The cost of Rs 1,903 crore related to the amortisation of intangible assets (non-cash) is excluded from total expenses and losses for FY23, as this amount was related to optionally convertible debentures for MX TakaTak.

    Losses and Financial Health

    Due to significant reductions in expenses alongside honest growth, ShareChat’s losses decreased by 41.4%, amounting to Rs 1,898.94 crore in FY24, down from Rs 3,240.83 crore the previous year.

    The adjusted EBITDA loss improved to Rs 777.84 crore in FY24 from Rs 2,342.11 crore in FY23, excluding finance costs, depreciation, amortisation, ESOP costs, provisions for doubtful assets, and foreign exchange losses.

    As of FY24, total outstanding losses for ShareChat climbed to Rs 12,438 crore.

    Cash Flow and Assets:

    • Operating cash outflows enhanced by 68.3% to Rs 964.96 crore.
    • EBITDA margin improved, settling at -183.50% for FY24, while it cost Rs 3.68 to generate one rupee of operating revenue.
    • The company had cash and bank balances of Rs 36.2 crore, with total current assets valued at Rs 128.96 crore.

    Debt and Funding Situation

    Borrowings witnessed a minor increase, with non-current liabilities rising from Rs 4,810.17 crore in FY23 to Rs 5,401.44 crore in FY24, indicating the company’s reliance on external financing. Outstanding dues from creditors and small enterprises totalled Rs 357.78 crore during the financial year.

    Given these losses, substantial debts, and limited cash on hand, the company will inevitably depend on funding to manage working capital.

    Per insights from various startup data intelligence platforms, ShareChat has successfully raised approximately $1.8 billion from investors, including Twitter (now X), Alkeon Capital, Moore Strategic Ventures, and Tencent, among others. In 2024 alone, it secured $65 million in debt across two tranches.

  • “13 States and UTs Shine as Top Performers in Logistics Performance Index, Reports DPIIT”

    “13 States and UTs Shine as Top Performers in Logistics Performance Index, Reports DPIIT”

    As per a report published by the Commerce and Industry Ministry on Friday, Gujarat, Karnataka, Maharashtra, Odisha, Tamil Nadu, and Delhi have been designated as “achievers” in the logistics index for 2024. This index is a key indicator of the effectiveness of logistical services, which are crucial for boosting exports and driving economic growth. Last year, 13 states and Union Territories (UTs) were also recognised in this achievers category.

    The additional states and UTs that are classified as “achievers” comprise Chandigarh, Haryana, Telangana, Uttar Pradesh, Uttarakhand, Assam, and Arunachal Pradesh. In contrast, Andhra Pradesh, Goa, Bihar, Himachal Pradesh, Madhya Pradesh, Punjab, Rajasthan, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, along with Dadra and Nagar Haveli, Daman and Diu, Jammu and Kashmir, Lakshadweep, and Puducherry, have been categorised as “fast movers” in the report. The “aspirers” group includes Kerala, West Bengal, Chhattisgarh, Jharkhand, Andaman and Nicobar Islands, and Ladakh.

    Notably, some states, such as Maharashtra, Odisha, Uttarakhand, and Arunachal Pradesh, have improved their standings from the ‘Fast Movers’ and ‘Aspirers’ categories in 2023 to the ‘achievers’ category for 2024. Conversely, Punjab has dropped from the top tier to ‘Fast Movers’ this year, while Andhra Pradesh has moved from ‘Achievers’ to ‘Fast Movers’ status in 2023.

    The report assesses states on four primary pillars:

    • Logistics Infrastructure
    • Logistics Services
    • Operating and Regulatory Environment
    • Sustainable Logistics (a newly added component)

    This evaluation is part of the sixth LEADS (Logistics Ease Across Different States) 2024 report, introduced by Commerce and Industry Minister Piyush Goyal. The index aims to enhance the focus on logistics performance improvement across states, which is essential for national trade advancement and minimising transaction costs.

    LEADS was established based on the Logistics Performance Index (LPI) from the World Bank in 2018. While the LPI solely relies on perception surveys, LEADS integrates perception with objective indicators, thus enhancing the reliability and comprehensiveness of the assessment. The report not only evaluates state performance in crucial areas but also equips state and UT governments with region-specific insights to facilitate informed decision-making and overall development.

    During the event, Goyal urged the DPIIT to refine the evaluation system this year, suggesting a more stringent set of criteria to encourage competition among the states and UTs. He stated, “I believe too many individuals are receiving accolades as high achievers. We will be tightening the entire evaluation framework.” He emphasised that standards need to be elevated, asserting, “We cannot adhere to the expectations we set five years ago.”

    Furthermore, the department has launched a framework for evaluating logistics costs in India.

    He mentioned that the ministry is considering a digital public infrastructure similar to the UPI model for the logistics sector. “The objective is to create a network akin to UPI, enabling various stakeholders to share data and streamline the paperwork associated with goods movement. This could significantly revolutionise business operations,” he remarked.

    Goyal highlighted the importance of this initiative, cautioning that otherwise, “we risk becoming overwhelmed with numerous records and paper-based documentation that will inevitably encumber us.” He stressed the necessity of uniting all stakeholders on a single network and developing digital public infrastructure that will improve governance, optimise operations, and accelerate decision-making in a cost-efficient manner.

    He encouraged states and UTs to develop regional action plans aimed at simplifying logistics for businesses. “Planning for the future is crucial to attract investments,” he emphasised, advocating for the adoption of green logistics technologies to meet global demands for sustainable practices.

  • Tech Industry Restructuring 2024: A Detailed Overview of Job Reductions and Layoffs

    Tech Industry Restructuring 2024: A Detailed Overview of Job Reductions and Layoffs

    The topic of tech layoffs in 2024 has sparked considerable discussion, and as an avid follower of the tech sector, I found the trends and data particularly enlightening. Below is a detailed overview of the occurrences.

    Summary of Tech Layoffs in 2024

    The year 2024 continued the pattern of workforce reductions that began in previous years, with numerous leading tech firms downsizing their staffing levels. This trend was primarily influenced by economic uncertainties, the necessity for cost-reduction strategies, and the reorganisation of business models.

    Key Companies Impacted by Layoffs

    Several notable tech firms were involved in these layoffs. Here are some of the most significant:

    • Amazon: Renowned for its large workforce, Amazon implemented significant layoffs, mainly within its technology and corporate divisions.
    • Google: Alphabet Inc., Google’s parent company, executed considerable layoffs as part of its restructuring initiatives.
    • Microsoft: Microsoft also reduced its workforce to streamline operations and concentrate on its core business areas.
    • Meta: Meta Platforms, Inc., the organisation behind Facebook, Instagram, and WhatsApp, experienced substantial layoffs, particularly within its engineering and product teams.
    • Twitter: Following a change in ownership, Twitter conducted extensive layoffs that affected a significant portion of its staff.

    Factors Contributing to the Layoffs

    A variety of elements contributed to these layoff events:

    • Economic Uncertainty: The global economic climate was characterised by instability, prompting companies to reduce expenses and brace for possible downturns.
    • Overhiring: Many tech organisations had expanded their workforce during the pandemic, and as market conditions stabilised, adjustments were necessary.
    • Restructuring: Firms were realigning their operations to concentrate on more lucrative sectors and enhance efficiency.
    • Technological Advancements: The swift advancement of technology rendered certain job roles superfluous or less relevant.

    Consequences for Employees and the Tech Sector

    The layoffs significantly affected both the employees and the wider tech industry:

    • Job Security: Many employees faced uncertainty regarding their job security, resulting in anxiety and transition periods.
    • Industry Dynamics: The layoffs underscored broader trends within the tech industry, including the move towards remote work and the growing emphasis on AI and automation.
    • Talent Availability: The layoffs created an accessible pool of highly skilled and experienced professionals for other companies to recruit.

    Prospective Developments

    Looking ahead, it is evident that the tech industry will continue to change. Consider these key points:

    • Flexibility: Companies must swiftly adapt to shifting market conditions and technological developments.
    • Innovation: There will be an enduring emphasis on innovation, especially in sectors like AI, cloud computing, and cybersecurity.
    • Effective Talent Management: Managing talent efficiently will be essential as companies navigate the landscape post-layoffs.

    The discussions surrounding tech layoffs in 2024 have underscored their profound impact, with trends and figures revealing a lasting influence on the industry.

  • Generative AI Investments Hit New Milestones in 2024

    Generative AI Investments Hit New Milestones in 2024

    As we look back at the year 2024, it is evident that funding for generative AI has reached unprecedented levels, with this momentum showing no signs of waning. Below is an overview of the critical statistics and advancements that characterised the year.

    Quarterly Funding Highlights

    In the third quarter of 2024, there was a remarkable performance in venture capital investments aimed at generative AI startups. According to PitchBook, venture capitalists invested a total of $3.9 billion across 206 deals during this timeframe. Notably, this amount does not include the impressive $6.6 billion funding round achieved by OpenAI.

    Geographical Distribution of Funding

    Out of the $3.9 billion invested in Q3 2024, an impressive $2.9 billion was allocated to companies based in the United States, spread across 127 deals. This significant capital deployment in the U.S. marketplace highlights the nation’s dominant role within the generative AI sector.

    Notable Funding Rounds

    Several organisations distinguished themselves with considerable funding rounds:

    • Magic, a coding assistant, secured $320 million in August.
    • Glean, an enterprise search company, raised $260 million in September.
    • Hebbia, a business analytics firm, closed a $130 million funding round in July.
    • Moonshot AI, a company based in China, raised $300 million in August.
    • Sakana AI, a Japanese startup dedicated to scientific discovery, obtained $214 million.

    Industry Growth and Projections

    The generative AI sector is witnessing rapid expansion. The global market value is anticipated to exceed $66 billion by 2024, marking an increase of nearly 50% compared to the previous year. The U.S. market alone is expected to surpass $23 billion by the end of 2024, representing over a third of the global revenue.

    Looking to the future, the global market is projected to grow beyond $88 billion in 2025 and exceed $110 billion by 2026. By 2030, the total market value is estimated to reach nearly $207 billion, signifying more than a fourfold increase since 2023.

    Investment Trends

    Investments in generative AI have experienced considerable oscillations yet are currently trending upwards. Global investment in generative AI saw a fourfold increase from 2022 to 2023, totalling $21.8 billion. This remarkable surge was primarily fuelled by substantial funding in organisations such as OpenAI, which secured $10 billion in 2023—accounting for almost half of the total funding within the industry that year.

    As we transition into 2025, it is clear that the funding landscape for generative AI has dramatically evolved, with no indication of a slowdown in sight.

  • The Unexpected Downfall of Bench Accounting: A Tale of Crisis and Redemption

    The Unexpected Downfall of Bench Accounting: A Tale of Crisis and Redemption

    Bench, the venture capital-backed accounting startup, has experienced a shocking few days, leaving its customers unsettled before a last-minute recovery. Below is a summary of the events that transpired.

    The Unexpected Shutdown

    On December 27, 2024, Bench unexpectedly ceased its operations, leaving its 12,000 customers taken by surprise. This abrupt halt was particularly disruptive, occurring just after Christmas and on the verge of the 2025 tax season. Customers were notified via email that access to the Bench platform would be terminated.

    Customer Turmoil

    The sudden closure forced numerous customers to rush to retrieve vital financial documents, such as loan statements and tax returns. Elizabeth MacBride, an author and small business owner, expressed her disappointment upon being unable to access essential financial information during her postponed Christmas celebrations.

    Initial Guidance and Consequences

    Initially, Bench suggested that customers file for a six-month IRS extension and switch their data to a competitor, such as Kick. However, this guidance proved too late for many, who were already distressed about securing their financial records.

    The Impact of Venture Capital Involvement

    The shutdown serves as a warning regarding the potential hazards of venture capital engagement. Following the ousting of original founder Ian Crosby by venture capitalists, the company shifted direction, ultimately leading to its decline. Crosby co-founded Bench in 2012, and prior to its closure, the company had raised over £100 million in funding.

    A Last-Minute Acquisition

    As the situation looked increasingly bleak, Employer.com, a San Francisco-based HR technology firm focused on payroll and onboarding, intervened to acquire Bench. This acquisition was confirmed on December 30, 2024, in a timely intervention. Employer.com is set to revive Bench’s platform and will soon provide customers with guidance on how to log in and retrieve their data.

    New Ownership and Future Prospects

    Matt Charney, the Chief Marketing Officer of Employer.com, reassured customers that they would have the option to transfer their data or maintain their service under the new management. The company’s website now features a welcoming message titled “Welcome Back,” informing customers that their service will continue seamlessly with the platform they have come to rely on.

    Reflecting and Looking Ahead

    The unexpected shutdown and following acquisition of Bench highlight the difficulties and dangers associated with rapid expansion and venture capital involvement. As customers adjust to this change, they remain optimistic that the new ownership will provide the stability and reliability they require. While Bench has faced significant challenges, it appears to have survived, at least for the time being.

  • Fittr Sees Remarkable Growth in FY24 with 73% Reduction in Losses

    Fittr Sees Remarkable Growth in FY24 with 73% Reduction in Losses

    Growth Challenges for Fittr

    Fitness technology startup Fittr has faced hurdles in its growth trajectory, with revenue plateauing over the last three years. Nevertheless, the company backed by Rainmatter Capital has substantially reduced its losses in the most recent fiscal year.

    Financial Performance Overview

    Fittr’s operational revenue experienced a slight decline of 3%, totaling Rs 85 crore in FY24, down from Rs 87.5 crore in FY23, based on its consolidated financial statement from the Registrar of Companies (RoC).

    About Fittr

    Founded by Jitendra Chouksey, Sonal Singh, Jyoti Dabas, Rohit Chattopadhyay, and Bala Krishna Reddy, Fittr operates as a community-focused health and fitness online marketplace. The platform develops tailored workout plans considering the following factors:

    • Fitness goals
    • Available equipment
    • Time constraints
    • Preferred exercise styles

    Revenue Breakdown

    Revenue from online fitness and wellness services accounted for the majority, reaching Rs 80 crore, although this reflects a 4.42% decrease from Rs 83.7 crore in FY23. New income streams, including smart ring sales, contributed Rs 80 lakh. Additionally, academic fees and other revenue sources generated Rs 2.8 crore and Rs 1.4 crore, respectively.

    Fittr also earned an extra Rs 1.3 crore from non-operating revenue, bringing total revenue to Rs 86.3 crore in FY24.

    Expense Management

    Total expenses for the company saw a considerable reduction of 26%, down to Rs 97 crore in FY24 from Rs 131 crore in FY23. Key factors contributing to this decline included:

    • A 36.2% reduction in employee benefits, amounting to Rs 20.8 crore
    • A 65.8% decrease in advertising costs, totalling Rs 8.4 crore
    • A 30% cut in other overhead expenses, equating to Rs 13.5 crore

    Meanwhile, expenditure on consultants and study materials, which represents the largest cost component, remained unchanged at Rs 54.3 crore.

    Losses and Financial Ratios

    As a result of effective cost management, Fittr’s losses decreased significantly by 73.5%, totalling Rs 11 crore in FY24 compared to Rs 41.5 crore in FY23. The company’s Return on Capital Employed (ROCE) and EBITDA margin were recorded at -38.89% and -10.66%, respectively. The expense-to-earning ratio stood at Rs 1.14.

    Current Assets and Funding

    As of March 2024, Fittr reported current assets amounting to Rs 46.5 crore, which includes Rs 27.8 crore in cash and bank balances.

    Fittr has raised a total of $17 million in funding to date, comprising a $3.5 million round led by Zerodha-backed venture fund Rainmatter. Other significant investors include Surge, Dream Capital (now defunct), and Elysian Park.