Swiggy Raises Funding In Series K Round, Total Market Value Goes Up To $10.7 Billion

swiggy raises funding

Hardly six months after bagging a whopping $1.25 billion investment in funding, leading online food ordering platform based in India Swiggy raises funding one more time in Series K round of funding. Swiggy has freshly procured $700 million in a Series K financing round as the Indian food tech giant is proactively looking forwards to expanding its business operations. Apart from India, Swiggy has already rolled out its services in South Asian markets. 

An insider having direct knowledge of the matter revealed that Invesco managed the Series K investment round, which increased the market capitalization of Swiggy to $10.7 billion. Previously, during the Initial Public Offering (IPO) in July, the food-tech company was valued at $5.5 billion. 

The market capitalization value of the food tech giant crosses Zomato’s existing market value as Swiggy raises funding in the Series K round. It is important to note here that Zomato, a 13 years old company, is witnessing a slump in its share price, which has brought down Zomato’s market value below $10 billion.

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Swiggy’s Round K funding saw participation from Axis Growth Capital, Sixteenth Street Capital, Kotak, Sumeru Ventures, Baron Capital Group, IIFL AMC Late Stake Tech Fund, Segantii Capital, Ghisallo and Smile Group. Existing investors of Swiggy also participated in the funding round, which included Alpha Wave Global, Qatar Investment Authority, ARK Impact and Prosus Ventures.

Swiggy’s quick delivery service, Instamart, is on track to hit a $1 billion annual gross merchandise volume run rate in the coming three quarters, the food-tech firm believes.

Swiggy, India’s leading food ordering platform giving tough competition to Zomato,  had said last year that the firm wanted to spend $700 million to upgrade its services and geographic presence. After Swiggy raises funding, it seems the rivalry in the food delivery industry in India will witness stiff competition in grabbing market share.

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‘Invesco Developing Markets Fund, on a long term basis, is looking forward to investing in leading companies across the world that have long term structural development ability. Investment in Swiggy is one such kind of investment.’ Said Justin Leverenz, Chief Investment Officer at Invesco.

Majety’s Words After Swiggy Raises Funding

Sriharsha Majety, Swiggy co-founder and chief executive, said that Instamart had achieved a Gross Merchandise Value (GMV) in only 17 months, while the core food delivery company required 40 months to accomplish the same level of success.

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The ultimate goal of Swiggy is to make 100 million users at least use Swiggy 15 times a month. The completion of this goal will help Swiggy’s ecosystem to have a broader influence and bring revolution in the food and grocery delivery industry. For that, the food tech company will continue to invest in our partners and products.’ Sriharsha Majety added further.

The Indian food services sector will stand at a value of $97 billion by the end of 2026. Organized food service is increasing at a higher rate compared to the other industries, and it is anticipated to have a 55 per cent market share by 2025. By the end of 2025, we predict internet access to hit 20% and the market size to achieve $20 billion, with a compound annual growth rate of 46 per cent (CAGR). Acquisition of new customers as well as expanding into new and emerging areas will comprise the major of the company’s development.

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Vodafone Idea Ltd Share Price Falls By 19 Per Cent

vodafone idea ltd

Badly trapped in a financial crisis, Vodafone Idea Ltd has unanimously decided in a board meeting to convert its total interest amount against the spectrum auction into equity shares.

Vodafone Idea Ltd’s outstanding interest on spectrum auction and AGR have crossed Rs 16,000 crore, which the company cannot procure from its business operations in the country given the constant loss. To facilitate the conversion of interest amounts into equity shares, the telecom operator will have to liquidate the stake of the company’s present shareholders. Currently, the VI telecom network shares are distributed amongst Idea Cellular and Vodafone India.

After the unanimous decision of converting interest amount into equity, The stake ratio of the existing shareholders of Vodafone Idea Ltd will be reshuffled. The central government will have about 35.8 per cent share in the telecom group. At the same time, Vodafone India will have 28.5 per cent and the Aditya Birla Group 17.8 per cent.

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Vodafone Idea Ltd is laden under debt. The telecom operator has decided to convert interest into shares to reduce the deficit. Since the rollout of Jio in the country, other telecom operators have been battling for existence. At the same time, the company is losing its customers. The collaborative group had 43.5 crore telecom subscribers in the Q1FY19, which is now shaded to 25.3 crores only during the Q2FY22. The road ahead for the telecom operator is bumpy as the company has to pay interest its heavy debt and do CAPEX for the 5G spectrum.

“Vodafone Idea is a heavily indebted company. Only the AGR and spectrum dues have been converted to equity. The competition in the telecom space has heated up, and Vodafone Idea has a heavy chunk of subscribers. It had 43.5 crore subscribers as of Q1FY19, which has reduced to 25.3 crores by Q2FY22. The challenge is uphill for Vodafone as it has to pay interest on its heavy debt and do CAPEX for the latest spectrum. Only the promoter has changed.

Vodafone Idea Ltd promoters have been changed, not the challenges for the company,” said Aditya Kondawar, Chief Operating Officer of Mumbai based services firm JST Investments.

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According to the latest available data, Vodafone Idea Ltd’s total debt amounted to Rs 1.80 trillion as of March 2021. On January 11, the stock of Vodafone Idea plummeted by 14 per cent in the first hour of trading.

According to Vodafone India, “the administration and other privileges of the promoter investors are regulated by the shareholders agreement (SHA) to which the business is a party and are also contained in the Articles of Association of a Company.”

In the context of conversion of interest into equity, the promoters have unanimously agreed to amend the existing SHA to lessen the minimum qualifying threshold from 21 per cent to 13 per cent to strengthen certain governing privileges, like the appointment of directors and the appointment of certain key officials, among other things, the telecom company stated.

Vodafone Idea Ltd shareholders have welcomed the decision to liquidate and transfer their existing share in the company to the central government. The board of directors has approved the execution of share adjustments and suggested changes in the Article of Association to facilitate the smooth transfer of the equity shares. Modifications in AoA will depend on the approval from the shareholders, the telecom company said in a general meeting.

“This was in line with expectations,” said Nitin Soni of Fitch Ratings, who also noted that the company does not anticipate large amounts of money to be invested in it shortly. The rating agency expects that the business will have significant difficulties raising capital from new investors.

Fitch even said Vodafone Idea Ltd would need outside money to enlarge capital expenditures into the firm and that it will require more price increases in the next 12 to 18 months.

Tech Firm Paytm Share Price To Plummet By 25 Per Cent, Says Macquarie Report

tech firm paytm

The global brokerage company Macquarie report stated tech firm PayTm share price could additionally lose 25 per cent from its existing share price. If so happened, the stock would reduce the investor’s wealth by half. Furthermore, the brokerage firm has reduced its target price for PayTm’s share to Rs 900 apiece. Macquarie had previously set the target price at Rs 1200 apiece, which is now reduced by 25 per cent to just Rs 900. However, PayTm was trading at Rs 1,173 per share.

Paytm IPO was one of the much-awaited IPOs but the tech company is showing very poor performance on the Bombay Stock Exchange and National Stock Exchange since its listing on the stock market in November month of the last year. Over time, the stock price has dropped by over 45 per cent in about three months.

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According to analysts at the global brokerage Macquarie, tech firm Paytm had a target price of Rs 1,200 a share at the beginning of this year, but the analysts now expect the stock to fall by a further 25 per cent. A drop in profit estimates for the tech firm Paytm has also been made by the stockbroker. In a statement, Macquarie noted that decreased distribution and commerce/cloud revenues, largely compensated by stronger payment revenues, are pushing the company to “basically drop revenue expectations for FY21-26E on average by 10 per cent per year.” As a result of fewer sales and greater staff and software expenditures, the company’s loss predictions for fiscal year 22 have been raised by 16 to 27 per cent.

Macquarie analysts also forecast reduced revenues for commerce and, especially, distribution business given to less demand. The firm said, “Competition will impede commerce revenue growth, and the distribution business will continue to be dominated by small ticket BNPL loans, thus limiting profit potential in our opinion.”

Bumpy Future For The Tech Firm Paytm Ahead

The near future for the tech firm PayTm is predicted to be bumpy. The major reason is considered to be the latest RBI regulations related to digital payments. Paytm still earns more than 70 per cent of its revenues from the payments business. In case the Reserve Bank of India starts capping charging on the payments made through the app could badly hit PayTm’s business. Furthermore, the insurance regulatory authority IRDA turned down PayTm’s proposal to venture into the insurance business. Macquarie brokerage firm believes IRDA’s rejection could also impact Paytm”s attempt to obtain a bank license.

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The global brokerage firm also raises concern over the reducing number of senior management staff at the tech firm Paytm. Macquarie firm claims PayTm senior executives are resigning from their posts, which might shadow the company’ operations if the staff continues to leave the tech firm. Also, PayTm’s permitted loan facility is as low as Rs 5,000 and will ensue lower costs than expected.

On the other hand, the optimistic viewpoints on the tech firm Paytm shares from Jp Morgan and Morgan Stanley have attempted to justify the current prices of PayTm share, while the analysts at Macquarie have labelled them as “excessively costly.” As the letter said, “the stock trades at 17 times FY23E revenues, which we feel is exorbitant.” A 25 per cent decline in Paytm’s current market price and a 58 per cent decline in the company’s initial public offering (IPO) price are suggested by the lower target price of Rs 900 a share.

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RBL Bank Crisis: Vishwavir Ahuja Steps Down From CEO Post, AIBEA Cautions Something Wrong At RBL Bank

RBL Bank crisis

While the rest of the world was busy celebrating Christmas eve, there seemed to be some massive events happening in the RBL that indicates RBL Bank Crisis like situation . The 78 years old bank lost its existing MD and CEO. Additionally, the Reserve Bank of India appointed Yogesh Dayal as an additional director on the bank’s board.

Before the RBL Bank crisis, Yogesh K Dayal was serving as chief general manager in the communication department. The central bank also announced indefinite leave for the existing CEO and MD of RBL Vishwavir Ahuja, who hosted the CEO and MD post for the past ten years. Therefore, Rajeev Ahuja was selected as an interim CEO and MD, which is still subject to approval from the authorities.

The cause that invoked RBL Bank crisis is still uncertain, and speculations were doing the internet rounds. The association of bank employees AIBEA had also written a letter to the finance minister of India, Nirmala Sitharaman, to bring to her notice that something was not going well inside the RBL Bank. The association also expressed its fear that the RBL Bank seemed to follow the Yes Bank and Lakshmi Vilas Bank’s footsteps.

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Reason Behind RBL Bank Crisis

The exact reason why these two actions took place leading to RBL Bank crisis remains clouded. As yet, neither the bank nor the regulator has furnished any justification.

Although, at the moment, the solid backdrop of the major events leading to RBL Bank crisis is still sparse. But the actions the Reserve Bank of India took in the case of RBL and a few other banks in the past clearly shows that India’s top bank wanted to monitor the finance and governance of the RBL bank closely. Often the Reserve Bank of India places its people into the management bodies of the private banks to carry out in-depth scrutiny.

At the moment, nothing clarifies the exact cause of the RBL Bank Crisis. However, the banking industry experts speculate either the RBI found discrepancies in the regulations at the RBL Bank, or the central bank of India doubted the RBL Bank’s integrity as a result of constant malpractices in the transactions.

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The RBL Bank, in the last five years, has reported its overall advances been doubled. The bank has exceeded the mark of Rs 58,000 crores from Rs 29,000 crore back in 2017.

On the other hand, the non-performing assets and bad loans of the RBL Bank have also shown a tremendous swell. The bank’s NPA has risen to Rs 2,600 crores from Rs 357 crores in 2017.

Some reports reveal that the RBL Bank promoted retail credit, credit cards, and micro-financing. The bank is believed to have made a blunder by overlooking its financial situation.

The association of bank employees AIBEA said that it is imperative to take necessary actions to prevent the RBL’s customers from suffering as the customers of Yes Bank and Lakshmi Vilas Bank did when both the bank went into financial troubles. The AIBEA association also suggested merging RBL Bank with any public sector bank as a solution for RBL Bank crisis.

The Reserve Bank of India (RBI) had earlier this year approved RBL’s request to extend Ahuja’s resignation as CEO for a third three-year term. However, RBL Bank has been granted a one-year extension by the Reserve Bank of India, commencing on June 30, 2021.

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From 2001 through 2009, Vishwavir Ahuja served as the managing director and chief executive officer of Bank of America in India. To see this is to see that the RBI has been careful.

PSB Strike Ended Today, Organizations Signal To Continue The Protest If Govt Doesn’t Agree

psb strike

PSB strike hampered the banking services across the nation on second day of their country-wide strike. Staffers of the numerous public sector banks, including Punjab National Bank, Bank of Baroda, UCO Bank, Canara Bank, and State Bank of India, had proactively participated in the strike against the privatization of public sector banks.

Before going on the PSB strike, the State Bank of India had notified its customers of service disruption longing over two days. It also suggested to the customers that ATM services would remain close or affected due to the strike. ‘We suggest that our functioning might be affected by the protest even though we have made sure the operations are carried out at our branches on strike days.’ State Bank of India said in a statement. Approximately 8,590 bank and ATM outlets across the country had their doors closed for two days, as per the UFBU (United Forum of Bank Union), an apex body of Nine banking organizations.

The state government of West Bengal also reported disruption in banking services on the massive level on day two as the PSB strike followed consecutively and thousands of bank officials and staffer resumed their protest. On the other hand, the DMK government in Tamil Nadu has also declared its support for the two-day nationwide strike. DMK’s general secretary and minister Durai Murugan prayed for the success of the public sector bank strike. They announced the party’s support to more than nine lakh bank staffers and officials participating in the strike.

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Reason For 2-Day PSB Strike

The finance minister of India, Nirmala Sitharaman, in the union budget 2021, presented the law amendment before assembly to privatize the public sector banks to fulfill the central government’s divestment plan of 1.75 lakh crore. According to the proposed bank amendment law, the government’s compulsory stake in the public sectors will be reduced to 25 percent from 51 percent decided per the banking companies act accepted in 1970.

The speculations suggest that the proposed PSB banking amendment bill will not be discussed in the currently happening winter session of parliament.

“Public sector banks hold approximately 70 percent of India’s total deposits, and giving over these institutions to the privately held organization would put people’s money held in public sector banks at risk,” All India Bank Officers Confederation’s general secretary Sanjay Das said.

Sanjay Das further explained that the central government’s plan to privatize public sector banks, according to him, would have a negative influence on India’s economy, priority sector lending, and credit flow to self-help organizations and rural enterprises.

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Public Sector Banks play a seminal role in dispensing the central government’s social welfare schemes such as Jan Dhan Yojana and Mudra Loan Scheme to the far-fetched regions. Privatization of public sector banks will result in the shutting down of rural bank outlets, which will reduce the dispersion of social welfare schemes.

The United Forum of Bank Unions (UFBU) had appealed for a 2-day PSB strike on 16 and 17 December 2021 to protest against the new banking law. The apex organization of nine banking associations including the All India Bank Employees Association, Bank Employees Federation of India, All India Bank Officers’ Confederation, All India Bank Officers’ Association, Indian National Bank Officers Congress, National Organization of Bank Workers, National Organization of Bank Officers, National Confederation of Bank Employees and Indian National Bank Employees Federation.

Sanjay Das, All India Bank Officers Confederation’s general secretary, says that the PSB strike received an enormous response from more than 9 lakh bank staffers and officials who participated in the strike. We will continue our PSB strike in the future if the central government insists on implementing the newly proposed banking amendment bill.

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Policybazaar fixes price band for its IPO at Rs. 940-980 per share

Policybazaar

PB Fintech, the operator of online insurance individual Policybazaar, on Gregorian calendar month twenty-six discharged the dates of its forthcoming initial public giving (IPO). the problem would open on the holy day of obligation, the corporate same during a red herring prospectus. The initial public offering can shut on Gregorian calendar month three and also the date for completion of the basis of allotment with the securities market has been expressed as Gregorian calendar month ten.

The price band of the initial public offering has been set at Rs 940-980 per share. the problem size is half-dozen,07,30,265 shares, with a face price of Rs a pair of every. The dates for initiation of refunds and credit of shares were expressed as November 11 and Gregorian calendar month twelve, severally.

Through the general public issue, atomic number 82 Fintech can raise the associate quantity of around Rs 5709.72 crore, reports same, adding that the initial public offering contains a contemporary issue of Rs three,750 crores, at the side of a proposal purchasable (OFS) of Rs 1959.72 large integer by existing promoters and shareholders.

The OFS would be driven by capitalist SVF Python II (Cayman), which might be commercialism shares price Rs one,875 crores. As of now, crocodilian holds nine.45 % stake within the company.Kotak Mahindra Capital, Morgan Stanley, ICICI Securities, HDFC Bank Ltd, IIFL Securities, Citigroup world Markets Bharat, and Jefferies Bharat square measure the book running lead managers of the initial public offering.

Market regulator Securities and Exchange Board of Bharat (Sebi) had last week given the inexperienced light-weight to atomic number 82 Fintech to float its maiden public issue. As of March 2021, over 4.8 large integer customers have registered on the Policybazaar platform and purchased over one.9 large integer policies from insurance underwriter partners. In FY21, the annual range of visits on the Policybazaar website was twelve.65 crores.

The Reserve Bank of India Imposes Rs.1 Crore penalty on the State Bank of India.

The Reserve Bank of India slapped Rs.1 Crore as a fine on the state bank of India as a results of failing to comply with the fraud classification rules.

An investigation on the accounts maintained with SBI by the regulators found it to be deficient in reporting frauds.

“A scrutiny was administered by the RBI during a customer account maintained with the bank and therefore the examination of the scrutiny report and every one related correspondence concerning an equivalent , revealed non-compliance with the aforesaid directions to the extent of delay in reporting of fraud within the said account to RBI,” the regulator said during a statement.

A notice was issued to the lender advising it to show why penalty shouldn’t be assessed on it for similar non-compliance with the said directions.

“Considering the reply of the state bank of india, the oral submissions and notice made by the bank in the personal hearing, RBI made a conclusion that the charge of non-compliance with the foresaid Directions of RBI was warrented and substantiated imposition of monetary penalty”, the regulator said.