Ronnie Screwvala on edtech IPOs; Fashion for style-first consumers

Hello,

Where are all the flying cars?

Ever since Henry Ford patented the concept of an aviation vehicle more than 100 years ago, flying cars have caught the popular imagination. Though The Jetsons era is yet to arrive, technological advancements keep our hopes alive.

The ePlane Company, an Indian eVTOL (electric vehicle and take-off and landing vehicle) maker, has partnered with the International Critical-Care Air Transfer Team to supply 788 air ambulances. The deal, valued at $1 billion, will enable the establishment of India's largest network of air ambulances.

However, the major hindrances to scaling eVTOL are the unchanging weight of the vehicle, the dearth of pilots, high pricing, and safely manoeuvring around urban densities. 

But that isn’t stopping companies from innovating. Skydrive, a Japanese company headquartered in Toyota City, recently partnered with Suzuki Motors in the development of technologies including weight reduction, electrification, mass-production technologies and business development in markets including India.

And some Indian cities are already preparing for this future. According to earlier reports, Boeing is exploring a partnership with the Tamil Nadu government in developing and implementing a roadmap for the launch of air taxis or ‘flying cars’ in Chennai.

The future is faster than you think.

In today’s newsletter, we will talk about 

• Ronnie Screwvala’s reality check for edtech IPOs
• Fashion for style-first consumers
• Streamlining finance operations via AI

Here’s your trivia for today: Where was the world’s largest pizza prepared?

Interview

Ronnie Screwvala’s reality check for edtech IPOs

Last year, India’s startup ecosystem celebrated a milestone with 13 companies—including Swiggy, Ola Electric, and FirstCry—making their debut on the stock market. Yet one sector remained noticeably absent from this wave of public listings—edtech.

However, the edtech sector isn't primed for an IPO surge just yet, since the industry hasn’t reached true maturity yet, according to Ronnie Screwvala, Co-founder and Chairman of higher education and upskilling platform upGrad.

Outcome-based growth:

• Without profits, launching an IPO is ridiculous, says Screwvala, reiterating that edtech needs profitability for reinvestment, and the sector must first shift from sales-driven growth to outcome-based results.
• For upGrad, Screwvala is aiming to grow at 40% compounded for the next 10-20 years, and profitably. Any dividends in the edtech sector, according to him, will be based on how well profits are ploughed back into the business for higher ROI.
• On investor confidence, Screwvala points out that investors have been driving funding even in the worst situations. However, there is bound to be an inevitable downward trend when more money is raised in a short period of time than the sector needs, according to him.

Funding Alert

Startup: Udaan

Amount: $75M

Round: Series G

Startup: Stelmec Ltd

Amount: Rs 175 Cr

Round: Undisclosed

Startup: Rare Rabbit

Amount: Rs 50 Cr

Round: Equity

Startup

Fashion for style-first consumers

Launched by Sanya Pradhan and Adit Purohit earlier this month, Cove & Lane is inspired by its founders' philosophy of creating high quality outdoor styles that are perfect for day meetings to cocktail nights. 

Today, the brand has raised Rs 6 crore in a seed funding round co-led by Sauce.vc and its founders.

Versatile styles:

• The business sprung from Pradhan and Purohit discovering a dearth of premium quality apparel with a fresh style and elevated look. They then decided to quit their jobs in New York and move back home to build a brand with help from Pradhan’s family business in apparel manufacturing and export.
• Cove & Lane differentiates itself from other brands on moats of premium fabric, an India-focused range, and industrial chic styles. It uses proprietary fabric mixes made with bamboo and linen, particularly made for tropical weather, with qualities like colour fastness (resists fading), sweat proof and wrinkle resistance.
• It currently plans to launch its spring-summer collection and set up its D2C channel, followed by a foray on ecommerce platforms and offline expansion down the line. 

Startup

Streamlining finance operations via AI

In today’s rapidly evolving digital landscape, finance teams are under constant pressure to handle high transaction volumes and complexities, often manually. These manual tasks lead to cash flow inefficiencies and gaps in financial decision-making across businesses.

To combat this, Bengaluru-based ZenStatement’s AI-powered cash flow management and financial analytics solution is designed for businesses handling high-velocity transactions. It aims to simplify financial operations, give businesses real-time visibility into their cash flow, identify inefficiencies, and make data-driven decisions.

Intelligent decision making:

• The Bengaluru-based startup is building a full-stack finance operating system that simplifies and automates accounts payable, accounts receivable, reporting, and treasury management. 
• The startup offers a monthly subscription to its customers. The pricing is based on the transaction volumes they process through its platform. 
• ZenStatement raised $1.62 million in seed funding in October 2024, which it will use to focus on increasing its product offerings and building a sales and marketing engine to expand its presence in India and international markets.

News & updates

• Markdown: Fast-fashion retailer Shein is under pressure to cut its valuation to about $30 billion, according to Bloomberg, having in the past been valued at more than three times that amount. Shein shareholders are suggesting that an adjustment is needed to help get its potential IPO in the UK over the line, people familiar with the matter said.
• National security: South Korea has banned new downloads of China’s DeepSeek AI chatbot, according to the country’s personal data protection watchdog. The government agency said the AI model will become available again to South Korean users when “improvements and remedies” are made to ensure it complies with the country’s personal data protection laws.
• Opportunity: India plans to conduct stakeholder consultations with its domestic industry to identify potential opportunities for exporters arising from American tariffs on China, Canada, and Mexico. The Commerce Ministry has stated that domestic exporters may benefit if the US imposes specific tariffs on goods from these countries. 

Where was the world’s largest pizza prepared?

Answer: Los Angeles. Spanning 13,990 square feet, it was made by YouTuber Airrack and Pizza Hut in January 2023. 

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