October records $1B in VC funding; Inside Daalchini Technologies’ game plan

Hello,

Swiggy gears up for Indian bourses. 

The Zomato rival is all set to open its IPO subscription on November 6, with the price band set in the range of Rs 371-390 per share. Reports suggest that Swiggy aims to raise around Rs 11,700 crore. 

According to CFO Rahul Bothra, Swiggy’s valuation for its upcoming IPO is derived from a comprehensive institutional roadshow and a deep focus on “strategic moats” within the company’s model. 

ICYMI: Big returns await Swiggy investors. 

Speaking of the markets, October has turned out to be the worst-ever month in terms of FPI outflows. Foreign investors pulled a massive Rs 94,000 crore (~$11.2 billion) from the stock market, triggered by the elevated valuation of domestic equities and attractive valuations of Chinese stocks.

Meanwhile, happy hours are over at TGI Fridays, as the casual American dining chain filed for bankruptcy protection owing to struggles with financial challenges brought about in part by the COVID-19 pandemic, Executive Chairman Rohit Manocha said.

In other news, Voyager 1, Earth’s interstellar explorer, switched on a radio transmitter that hadn’t seen action since 1981. Here’s what happened! 

Lastly, a wildlife sanctuary in Australia bid farewell to Cassius—a 5.48-metre Australian crocodile that held the world record as the largest crocodile in captivity. He was thought to be more than 110 years old!

In today’s newsletter, we will talk about 

• October records $1B in VC funding
• Inside Daalchini Technologies’ game plan

Here’s your trivia for today: Which Disney character is named after Ebenezer from Charles Dickens’ novel "A Christmas Carol"?

Funding

October records $1B in VC funding

Venture capital funding into Indian startups continued to stay at billion-dollar levels in October, in keeping with the trend for the last six months, starting May this year. 

In October, startups raised $1.106 billion in funding across 103 deals—a fall of 11% compared to the $1.245 billion raised in October last year. According to YS Research, startups registered a 20% decline in funding compared to September 2024.

Key takeaways:

• The total VC funding raised across 10 months in 2024 touched $11.7 billion, overtaking the $10.8 billion recorded in 2023.
• Eruditus, Samunnati, and Finova Capital raised funds in the range of $100 million and above. Meanwhile, upGrad and Purplle secured funds within the $50 million-$100 million range.
• Mumbai emerged as the leading destination for VC funding in October at $336 million, followed by Bengaluru and Chennai. Surprisingly, Delhi-NCR, generally in the top three, just raised $93 million this month.

Startup

Inside Daalchini Technologies’ game plan

Founded in 2018 by ex-Paytm executives Prerna Kalra and Vidya Bhushan, Daalchini Technologies is implementing data-driven solutions and AI models to offer products through automated retail and smart vending machines.

Over the last three years, Daalchini’s topline has grown substantially. In FY22, the company earned Rs 12 crore in revenue, which grew to over Rs 25 crore in FY23 and Rs 42 crore in FY24. It expects to cross Rs 100 crore in annual recurring revenue by the end of this fiscal year.

Strategies:

• The company has hinged its growth strategy to AI-led retail to optimise the probability of selling the product within a small area. It leverages technologies like the IoT for remote monitoring and real-time restocking updates to ensure an uninterrupted supply.
• In addition, Daalchini’s consumer app utilises AI to analyse customer purchasing behaviour, search history, and past purchases. 
• Daalchini’s major revenue comes from products sold through the vending machine, contributing 40% to the topline. “We earn through the margins on the products we sell, which range from 12% to 45%,” Kalra says.

News & updates

• Price hike: Leading FMCG companies reported a decline in margins in the September quarter on account of higher input costs and food inflation, which ultimately slowed down the pace of urban consumption. Some FMCG firms have hinted at a price hike.
• Production: China's electric vehicle giant BYD ramped up its production by nearly 200,000 units from August to October, hiring close to 200,000 new employees in car manufacturing and making components. BYD posted an 11.5% rise in third-quarter net profit as it maintained strong sales momentum.
• Loans: Australian Prime Minister Anthony Albanese said his government planned to cut student loans for around three million Australians by 20%, wiping off around 16 billion Australian dollars ($10 billion) in debts. 

What you should watch out for

• Swiggy IPO opens for subscription on November 6 and closes on November 8.
• All investor eyes will be on the crucial US Presidential election on November 5, followed by the US Federal Reserve meeting on November 7. Analysts anticipate a 25 basis point rate cut.

Which Disney character is named after Ebenezer from Charles Dickens’ novel "A Christmas Carol"?

Answer: Scrooge McDuck.

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