The CapTable Wrap: Startup moxie, Zomato highlights, Mamaearth’s growing ambitions, & more
Startups have rallied to support India’s battle against COVID, pouring in hours of relief work and crores of rupees, even as they remain focused on striking a balance between employee safety and business growth.
That fortitude bears out in Zomato’s IPO filing, Mamaearth’s bold ambitions, and Supam Maheshwari’s massive fundraise for his new venture. We also wrote on how fintech startups are partnering with new-age banks to disrupt the credit card industry.
Here’s a roundup of news and analysis last week from The CapTable. The CapTable is a YourStory product. Subscribe if you haven’t already.
There is a sense of resilience in the startup ecosystem. Although startups are tempering their expectations, factoring in disruptions that could last weeks or months, several are preparing their teams, their safety and wellbeing in mind, to shift gears from survival to growth mode swiftly for whenever the business cycle
It was a historic moment as Zomato filed its draft IPO prospectus last week. The main takeaways: Info Edge’s potential multibagger returns, Zomato’s improving unit economics, and, importantly, the first instance of a billion-dollar technology company from India hitting the public market. Zomato’s IPO will be a test of Indian investors’ appetite for the Unicorn phenomenon.
Is Mamaearth really worth $1 billion? Undoubtedly one of the fastest growing consumer brands in the country, Mamaearth is seeking a 3x jump in its valuation in just three months as it pitches a new business model: a house of brands. The question, however, remains: is the founder asking for too steep a valuation too soon?
The Crux [Crisp and incisive analysis on the developments that matter]
Speaking of house of brands, Firstcry Co-founder Supam Maheshwari is raising $75 million for his latest venture, GlobalBees, providing it a massive thrust in the heated race to build India’s Thrasio. Maheshwari’s second business spawned from Firstcry plans to build a portfolio of 10-12 brands, and already has 4-5 acquisitions in the pipeline.
New-age banks such as IDFC First Bank and State Bank of Mauritius India are partnering with fintech startups such as FPL Technologies, EnKash, and Karbon to disrupt the credit card industry with innovative products. The timing is just right with RBI barring HDFC Bank and American Express from onboarding new customers.