Paytm Mall Set For Raising $600 Million
Alibaba backed Paytm Mall is set to raise $ 600 million in a fresh round of funding and is looking for potential investors from across Asia and USA. A news daily reported, the Noida based company has already initiated discussions to raise Rs. 3,000 – Rs. 4,000 crores.
According to one of the sources, Paytm Mall is looking to close the new funding round by the end of this year to compete with Flipkart and Amazon. The company, owned and operated by One97 Communications Limited, was expected to take the third spot in the country’s ecommerce market following Snapdeal’s decline. Launched as an initiative to bridge the gap between offline and online shopping, they have been aggressively scouting for acquisitions and strategic investments to gain the number one position.
Paytm Mall has been looking to strengthen its business since the beginning of the year. The ecommerce firm raised $200 million from SAIF Partners and Alibaba Group Holding recently and lined up Rs. 1,000 crore to spend on marketing, cash back and promotions during September and October. They also invested $ 35 million in their technology and logistics infrastructure to strengthen the logistics network ahead of the crucial festive season. In the 4 day festive season sale, the company claims to have generated a gross revenue of Rs. 900 crores and is targeting a $ 4 billion gross merchandise volume (GMV) run rate by end of this year. In an effort to reboot their business, they also delisted close to 85,000 sellers and cut off half of their logistics partners in July. The ecommerce site was also in talks to invest $ 200 million in the online grocery startup BigBasket.
Paytm, which started as mobile payments and digital wallet platform, has scaled to over 250 million registered users to become one of India’s largest mobile payments and commerce startups. The company is yet to comment on its plans for a fresh funding round.
Carl Pei’s Nothing Invites Retail Investors
Carl Pei said the time came for him to leave OnePlus and focus on other interests, following which he resigned from OnePlus in October 2020. Since then, Pei had been working on his new startup in the audio hardware sector. Carl Pei unveiled the name of his startup which is now called as Nothing, on January 27th, 2021. Since the unveiling of Nothing, Pei’s startup has attracted a lot of attention from Silicon Valley and venture capitalists.
Carl Pei now seems to be emulating his success formula at OnePlus with his new startup Nothing. OnePlus is highly customer centric, because as a company they take in inputs from their consumers and adapt them to their products. Pei seems to be using the same strategy with Nothing, as he invited retail investors to invest in his new startup. Normally a startup raises Series A funding to begin product development and then goes on to Series B and so on. For a normal retail investor to invest in a stock, they could only do it at the time of an Initial Public Offering (IPO) at the time of which the company would be valued highly. However, Carl Pei is letting in investors from the beginning.
Usually the community has to wait for an IPO to invest, but by that time, the valuation is already high. We are inviting you to own Nothing from the very beginning, at the same price as our Series A, and be on board for the entire ride.🚀 https://t.co/mnQtoiJwOV
— Carl Pei (@getpeid) February 16, 2021
ALSO READ: Alphabet Invests In Carl Pei’s Startup Nothing
This lets the investors be a part of the product development process and makes Nothing more personalised. Moreover the investors would also act as promoters for the products. Currently, there are $ 1.5 million worth of shares available. Users can invest a minimum of € 50 and a maximum of € 20,000. However, the demand to invest is off the charts and was unexpected as Carl Pei confirmed there was an interest worth of $ 10 million from 8,700 users.
WOW we have just reached $10m USD of registered interest in just 7 hours from over 8,700 people! So grateful for the amazing community behind @nothing ! 🥰🥰
— Carl Pei (@getpeid) February 16, 2021
Nothing’s first wireless earphones will be unveiled in the summer of 2021. Nothing aims to build an ecosystem of listening devices which talk to each other. Initial investors of Nothing include the likes of Tony Fadell (Principal at Future Shape and the Inventor of the iPod,) Casey Neistat (YouTuber,) Kevin Lin (Co founder of Twitch,) Steve Huffman (CEO of Reddit,) Liam Casey (Founder and CEO, PCH,) Paddy Cosgrave (Founder of Web Summit,) Kunal Shah (CEO of CRED) and Josh Buckley (CEO of Product Hunt.) Alphabet’s investment arm Google Ventures was the latest investor in Nothing as they invested $ 15 million.
Startup India Seed Fund To Be Disbursed From April 1st
There is no doubt India has a strong foothold in the startup ecosystem. India currently ranks third in the world for the number of startups, next only to the United States of America and China. This was possible due to the Indian Government’s initiatives to develop the startup ecosystem and also due to a strong presence of unicorn startups like PayTM, Zomato, Unacademy and many more.
The Government of India announced it would begin to disburse INR 945 crores seed capital from April 1st, 2021 under the Startup India Seed Fund Scheme in a bid to boost the startup ecosystem in India. These funds would be distributed through select incubator partners all over the country. This scheme will be implemented by the Department for Promotion of Industry and Internal Trade (DPIIT.)
In a gazette notification, DPIIT announced that Startup India Seed Fund Scheme will provide financial assistance to startups that have been recognised by the DPIIT and incorporated not more than two years ago at the time of application.
The Guidelines for Startup India Seed Fund have been notified by @DIPPGOI We are on course to implement the scheme wef 1 April ‘21. Please see the details here: https://t.co/pUvXaEwbj2
— Anil Agrawal (@anilarch) January 29, 2021
ALSO READ: How The Events Industry Is Impacted By The COVID-19 Pandemic
The Startup India Seed Fund Scheme will have a common central application on the Startup India portal for startups on an ongoing basis. An Experts Advisory Committee (EAC) will be formulated to oversee and monitor the overall execution of the scheme. The EAC will evaluate and select the incubators for allotment of the seed funds and place measures for the efficient disbursement of funds.
The government also mentioned preference will be given to startups working in the areas of agriculture, education, food processing, healthcare, social impact, waste management, water management, financial inclusion, biotechnology, energy, mobility, defence, space, railways, textiles and oil and gas.
CRED’s Kunal Shah Invests In One Plus Founder Carl Pei’s Startup
Carl Pei is one of the most well known names in the startup circles considering he gave the world one its best smartphone brands OnePlus. Since the debut of OnePlus One. The smartphone maker earned the moniker ‘flagship killer’ and has grown in leaps and bounds. Today OnePlus boasts on an impressive product line up apart from its smartphones and is one of the leading electronic brands in the world. In October 2020, Carl Pei said the time came for him to leave OnePlus and focus on other interests. Since then, Pei had been working on his new startup in the audio hardware sector.
Thank you. @PeteLau @oneplus https://t.co/2RD9AdyWhO
— Carl Pei (@getpeid) October 16, 2020
The name of Carl Pei’s new startup will be unveiled on January 27th, 2021 but in the past three months the unnamed startup received almost $ 7 million in seed funding. The investors include Tony Fadell (Principal at Future Shape & Inventor of the iPod,) Casey Neistat (YouTuber,) Kevin Lin (Co-founder of Twitch,) Steve Huffman (CEO of Reddit,) Liam Casey (Founder and CEO, PCH,) Paddy Cosgrave (Founder of Web Summit) and Josh Buckley (CEO of Product Hunt.)
The latest to invest in Carl Pei’s startup is Indian based CRED founder Kunal Shah who invested an undisclosed amount. Shah is not new to being an angel investor as he already has a portfolio of investing in almost 80 startups. “Carl is working on a new consumer electronics company that I am sure will be a disruptor in the tech industry. I am excited to be part of this journey (sic,)” the CRED founder said in a statement.
While Pei’s startup is headquartered in London, more details will be known on January 27th, 2021.
- Suki: This Startup Wants To Transform Healthcare With Its Artificial Intelligence Tool
- 5 Successful Indian Startups Founded By Women
- Leher Versus Clubhouse: Which Audio Listening Startup Would You Choose?
- Why Are Ads On Digital Media Failing To Reach The Right Audience?
- Facebook Launches BARS For Creating Raps To Counter TikTok’s Growing Popularity
- How Domino’s Pizza Grew 13000% From 2008 To 2020
- Elon Musk Tweets About Bitcoin Bull Run And Loses $ 15 Billion
- Daily Basket Creates BBisabully Over Being Sued By Big Basket Over Usage Of Basket
- Bike Rental Startup Bounce Goes For A Second Round Of Layoffs Amidst Operations Scale Down
- How Parle G Became An Iconic and Well Loved Indian Brand
- Adidas To Sell Reebok Brand Due To Declining Sales
- Carl Pei’s Nothing Invites Retail Investors
- The Incredible Journey Of Wolfe Herd And The Dating App Bumble Which Went Public
- Alphabet Invests In Carl Pei’s Startup Nothing
- Bitcoin Soars As Tesla Purchases 1.5 Billion Dollars Worth Of Cryptocurrency
- From Unicorn To Bankruptcy; Knotel Bears The Brunt Of COVID-19 Pandemic
- The Journey Of Wine Recommendation App Vivino Which Raised 155 Million Dollars In Funding
- How Does Investment Startup Robinhood Make Money?
- The Story of Mens Grooming Startup Bombay Shaving Company
- Startup India Seed Fund To Be Disbursed From April 1st