Ecosystem rallies around SVB fall

Over the weekend, venture capital firms, technology executives, and startup founders raced to contain the aftermath of the SVB collapse.

Ecosystem rallies around SVB fall

Monday March 13, 2023,

5 min Read


It’s the start of a new week, and for the global startup ecosystem, the continuation of its test of resilience amid the Silicon Valley Bank implosion. 

Over the weekend, venture capital firms, technology executives, and startup founders raced to contain the aftermath of the SVB collapse. American venture capital firm Khosla Ventures sent an email to founders saying it would cover payroll for some of its portfolio companies if they had shortfalls because of funds tied up with SVB. 

Meanwhile, US Treasury Secretary Janet Yellen said she was working with regulators to respond to the crisis but ruled out a bailout.

Closer home, Union Minister Rajeev Chandrasekhar on Sunday acknowledged the disruption caused by SVB’s closure, tweeting that he will be meeting startup founders this week to understand the impact on their business.

ICYMI: Elon Musk now wants to build his own town. According to a report by The Wall Street Journal, the billionaire businessman has purchased thousands of acres of pasture and farmland outside Austin, Texas.

Musk and his employees have met landowners and real-estate agents, describing “a sort of Texas utopia along the Colorado River, where his employees could live and work”, added the report. Oh, and it may be called…wait for it…snailbrook in reference to The Boring Company’s mascot.

Last but not least, someone asked ChatGPT to create a new game and well, it complied. Scottish software engineer Daniel Tait prompted the AI to generate a ‘unique game’ for Sudoku fans.

The result: Sumplete.

In today’s newsletter, we will talk about 

  • Discount brokerage Fyers in fast lane
  • Ecosystem rallies around SVB fall
  • Persian cuisine beyond kebabs

Here’s your trivia for today: How many moons does the dwarf planet Pluto have?


Fyers in the fast lane

Tejas Khoday, Co-founder & CEO, Fyers

The emergence of sophisticated technology, and zero or flat charges helped new-age discount brokerage platforms gain customers, especially during the COVID-19 pandemic. So much so, the top five discount brokerages account for almost 59% of overall NSE active clients share today, with Zerodha, Groww, Upstox, and Angel One, among others, commanding top positions. 

Launched in 2016, FYERS is looking to enter wealth and portfolio management services. What is its game plan for the future?

Money, money:

  • Fyers is among the fastest-growing online discount brokerages in the last few years, with an active client base of 1,66,077 till January 2023.
  • Its revenue growth from operations (majorly broking income) jumped 2.5X to Rs 57.78 crore in FY22, while net profit stood at Rs 22.52 crore, up from Rs 2.6 crore in FY21. 
  • According to rating agency ICRA, after a strong run in the previous two fiscals, revenue growth rate for the brokerage industry will taper in FY23, even as overall performance remains strong. 


Ecosystem rallies around SVB fall


The implosion at Silicon Valley Bank has sent shockwaves across Indian startups. However, ecosystem partners—revenue financing entities, as well as organisations like AngelList—have rallied around to help these companies. 

In the trenches:

  • Neobank Razorpay, revenue financing startups like GetVantage, Kluband Recur Club and cross-border payments solution provider Salt.Pe have jumped in to offer solutions to startups that need help with a line of credit to manage expenses. 
  • AngelList launched its Lifeline Agreement and Bank Account product to help startups in need of emergency capital after SVB shut down.
  • Recur Club estimates that over 1,000 startups have been directly affected by the SVB crisis.


Persian cuisine beyond kebabs


As the grandchildren of the head chef of the Persian monarchy, brother-sister duo Amin and Honey Ebra had a dream of serving Persian food beyond kebabs. Their venture Belgrave, a chain of restaurants, serves authentic and flavourful Persian food in Abu Dhabi, Dubai, and London.

Top class:

  • On offer are Dishes such as Pistachio Bread and Zeytum Parvardeh, a starter made of olives, pomegranates and herbs.
  • Currently, the restaurant has a team of 25 people in Abu Dhabi.
  • Over the last one year, the restaurant has made over AED 4 million in Abu Dhabi. The brother and sister now wish to expand their business across the GCC.

News & updates

  • Phosphogeddon: Misuse of phosphorus could lead to deadly shortages of fertilisers that would disrupt global food production. At the same time, phosphate fertiliser washed from fields–together with sewage inputs into rivers, lakes and seas–is giving rise to widespread algal blooms and creating aquatic dead zones that threaten fish stocks.
  • Record breaking: Saudi Arabia’s state-controlled company Aramco on Sunday reported a record net income of $161.1 billion for 2022—the largest annual profit ever achieved by an oil and gas company. Aramco’s net income increased 46.5% over the year, from $110 billion in 2021. 
  • Higher wages: Germany has averted a threatened postal strike after Deutsche Post DHL Group agreed to double-digit pay rises, which will compensate its workers for higher living costs but add to central bankers’ fears about persistently high inflation.

How many moons does the dwarf planet Pluto have?

Answer: Five known moons: Charon, Styx, Nix, Kerberos, and Hydra.

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