Reddit, an online content aggregation and discussion platform recently raised a fresh $410 million in funding with the final round expected to grow upto $ 700 million, soaring its valuation to more than $10 billion. After raising funds in Series E in February, the company announced the recent Series F funding wherein Fidelity Investments contributed $410 million and other new and existing investors who made up the rest.
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AAA Valuation Comment: Reddit is an American social news aggregation, web content rating, and discussion website wherein the registered members submit content to the site such as links, text posts, images, and videos, which are then voted up or down by other members. Currently, it has roughly 52 million daily users and more than 100,000 active sub-reddits or communities, which cover variety of topics. The Company made $100 million in advertising revenue in the second quarter of 2021, up 192 percent compared to the same period last year. Reddit has doubled its employee headcount to 1400 employees over the past 18 months and has also expanded internationally to the U.K., Canada, and Australia
Fintech startup Khatabook raised $100 million as a part of its Series C funding round raising the company’s valuation to $600 million. The funding round was led by US-based venture capital firms Tribe Capital and Moore Strategic Ventures. Other investors who took part in the round include Alkeon Capital and existing investors B Capital Group, Sequoia Capital, Tencent, RTP Global, Unilever Ventures and Better Capital. Alongside this round, Khatabook will also be buying back $10 million worth of employee stock ownership plan (ESOP) shares to acknowledge and reward employees, ex-employees and early investors who contributed to the company’s growth.
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AAA Valuation Comment: Khatabook is two-and-a-half year old startup that is helping merchants in India digitize their bookkeeping and accept online payments. It has more than 200 employees presently. For FY20, the startup posted losses of ₹126 crore, with nil operating revenue. However, without disclosing absolute figures, the company recorded 150% growth in revenue in the financial year ended March 2021. Khatabook also faces stiff competition from incumbents such as Paytm which has launched Business Khata for its 17 million merchant base. PhonePe, which claims to have 17.5 million merchants on its platform, is focusing on enabling hyperlocal commerce for small businesses. Currently, the company has 10 million monthly active users (MAU) and also launched three additional products for MSMEs: Biz Analyst, Pagarkhata and Cashbook.
Gaming and sports media platform Nazara Technologies has acquired Hyderabad based skill-based gaming company OpenPlay for nearly Rs 186.41 crores. It has been reported that the company will acquire 23.30% stake of OpenPlay in first tranche for Rs. 43.43 Cr (in cash) by the end of Q2 of FY 2021-22 and will complete the remaining tranche in FY 2021-22. OpenPlay is Nazara’s eighth acquisition so far and it’s second after March.
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AAA Valuation Comment: Nazara became the first Indian gaming firm to go public in March this year with INR 581 Cr initial public offering which was oversubscribed 175 times and listed at INR 1,670.70 at a premium of 80% to the issue price. OpenPlay (founded by Sreeram Reddy Vanga in 2016) operates a multi-game consumer gaming platform under the “Classic Games” brand which hosts skill-based games. OpenPlay had reported a revenue of INR 53.48 Cr for FY21 compared to INR 39.26 Cr and INR 20.88 Cr in the previous two fiscals. It currently has an annualized gross gaming revenue run rate of INR 80 crore with positive EBITDA margins.
Sales enablement platform Mindtickle has become the latest Indian unicorn startup after raising $100 million in its Series E round of funding led by Japanese investment giant SoftBank, at a valuation of $1.2 billion. The latest round saw participation from existing investors Norwest Venture Partners, Canaan, NewView Capital, and Qualcomm Ventures.
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AAA Valuation Comment: The Pune and San Francisco-based Company is the 20th Indian startup and eighth software-as-a-service company to enter the unicorn club. The revenue of the company has grown by over 170% in the past year and it is expected to end the year at annual recurring revenue of more than $30 million. In total, the company has more than 1 million users and 220 brands on the platform. Mindtickle competes in a sales enablement market that’s anticipated to be worth $2.6 billion by 2024. In November 2020, the SaaS startup raised $100 million in a mix of equity and debt funding led by SoftBank at a valuation of $500 million.
The IT services giant Infosys joined the league of Tata Consultancy Services, Reliance Industries and HDFC Bank for crossing the $100 billion-mark (Rs. 7.43 trillion) in terms of market capitalisation. Infosys is the fourth Indian company and second IT firm to touch a market valuation of $100 billion after Reliance Industries (m-cap of Rs 13.7 trillion), TCS (m-cap of Rs 13.4 trillion) and HDFC Bank (m-cap of Rs 8.42 trillion).
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AAA Valuation Comments: Infosys’s operating profit in the 1QFY21 rose 23% YoY Rs 6,603 crore. IT sector is a leader of a current bull run in the Indian equity market and the Nifty IT index is one of the best performing index in the world. The fund outflows from Chinese tech stocks due to new regulations in China leads to inflows for Indian tech companies as there is more stability in terms of policies and that may lead to further bullish momentum in Indian IT stocks. The stock has seen an upsurge after the company management raised revenue growth expectation to 14-16% for FY 2022-24.
Gold-centric lending platform India gold secures $12 million in its Series A funding. The new financing round was led by Prosus’ PayU which typically only backs later stage deals and Falcon’s Alpha Wave Incubation (AWI) fund. Better Tomorrow Ventures, 3one4 Capital, Rainmatter Capital and existing investor Leo Capital also participated in the round, which brings the startup’s all-time raise to $14 million.
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AAA Valuation comments: India offers a large $650 billion addressable gold loan market which is highly fragmented and currently dominated by the informal segment. Founded in 2020, the startup offers gold-backed loans, gold savings, and gold locker services to over a million consumers in India. The company competes with well-funded startups like Rupeek, which kick-started Series E round in March this year to raise $33 Mn. Another emerging startup in this space, Ruptok, raised INR 14 crore via debt funding round barely few days back.
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