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<ul><li>About 200 existing and former employees will be eligible to participate in the ESOP buyback plan.</li><li><keyword id="3358959" type="PERSON" weightage="20" keywordseo="ShareChat">ShareChat</keyword> has updated its ESOP exercise price, which will allow the employees to buy each share at ₹1.</li><li>The company entered the unicorn club in April 2021, after raising $500 million at a valuation of $2.1 billion.</li></ul>Mohalla Tech, the parent company of vernacular social media platform ShareChat and short video app Moj, has announced its first employee stock ownership plan (ESOP) buyback programme worth $19.1 million (₹140 crores at current prices). Nearly 200 existing and former employees with vested options will be eligible to participate in the process. The company also announced that it has revised its existing vesting schedule. Under this, qualified employees will be allowed to vest 25% of ESOPs in the first year, followed by 8.25% every quarter. In case any employee leaves the organisation, the individual can still keep all the vested options and continues to enjoy the related benefits. Further, it has revised its ESOP exercise price from ₹1551 to ₹1, meaning that eligible employees can buy each share at ₹1. The firm’s chief executive officer (CEO) and cofounder Ankush Sachdeva attributed the success of ShareChat and Moj to the employees that have been working in the company for years. “We are presently witnessing an exciting growth journey and following an ambitious plan. Therefore, we have aligned our ESOP policy accordingly to reward our people who will be instrumental in paving the way for the next level of growth,” he added. The announcement comes only two months after ShareChat raised<a href="https://www.businessinsider.in/business/startups/news/sharechat-is-2021-9th-unicorn-as-it-raises-over-500-million-from-tiger-global-snap-and-twitter/articleshow/81964106.cms"> $500 million</a> at a valuation of $2.1 billion. The Series E investment was led by Lightspeed Ventures and Tiger Global, along with the participation from Snap Inc, Twitter and India Quotient. Overall, the company has raised about $824.8 million since its inception in 2015. ShareChat has also acquired five businesses over the years. This includes Clip App, Elanic, Circles Internet, Memer and HPF Films. Four of these acquisitions were announced in 2020 to enhance the platform’s content offerings. The company seems to have witnessed an exponential growth in 2020, due to growing digital adoption during the pandemic and the ban on Chinese apps like TikTok. The company claims to have recorded a <a href="https://inc42.com/buzz/sharechats-monthly-user-base-reaches-160-mn-riding-on-tier-i-growth/">166% spike</a> in its monthly active users base during the pandemic from 60 million in March 2020 to 160 million in November 2020. Moj, Sharechat’s <a href="https://www.businessinsider.in/business/startups/news/sharechat-moj-will-air-exclusive-content-from-bigg-boss/articleshow/79425405.cms">youngest offering</a>, has garnered over 120 million monthly active users within a year of its launch. Like ShareChat, Moj is available in local languages like Hindi, Punjabi, Marathi, Bengali and more. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/startups/news/grofers-cofounder-saurabh-kumar-exits-says-he-wants-to-wander-again/articleshow/83636943.cms">Grofers cofounder Saurabh Kumar exits, says he wants to ‘wander again’</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/paytm-ipo-vijay-shekhar-sharma-may-not-remain-the-promoter/articleshow/83633743.cms">Paytm IPO: Vijay Shekhar Sharma may not remain the promoter of the company he founded 12 years ago</a>

Sharechat employees will make $19 million out of the latest ESOP plan, as growth spikes in the absence of TikTok

<ul><li><keyword id="3358959" type="PERSON" weightage="20" keywordseo="ShareChat">Sharechat</keyword> has announced that it has added $14 million to its <keyword id="120103" type="PERSON" weightage="20" keywordseo="Esop">ESOP</keyword> (employee stock ownership plan) pool, taking the total to $35 million.</li><li>Sharechat now has over 160 million monthly active users and also launched a video sharing platform Moj, right after the TikTok ban.</li><li>The company said that the ESOPs were a way to reward the employees for their hard work. </li></ul>Indian social media platform Sharechat has announced that it has added $14 million to its ESOP (employee stock ownership plan) pool, taking the total to $35 million. The five-year-old startup also said that 50% additional ESOPs have been awarded as a bonus to employees who already held shares in the company. “The ESOPs have also been extended to every employee on its payroll including administrative staff who were not holding any ESOP earlier,” said the company. Sharechat has been driving high numbers, exceeding 160 million monthly active users recently, and also launched a video sharing platform Moj right after the TikTok ban. The company said that the ESOPs were a way to reward the employees for their hard work. “The foundation of our existence has been purely our people, combined with their passion and energy. Our growth since inception has not been without challenges, but we have always managed to come out of these challenges unscathed just on the strength of our people. The additional ESOP is a measure of small appreciation for this commitment, and a recognition of our team’s efforts. The new pool will keep us well placed for rewarding our teams in the future as well,” said Ankush Sachdeva, CEO &amp; Co-founder, ShareChat. <keyword id="6362513" type="UNKNOWN" weightage="20" keywordseo="startups">Startups</keyword> hop on the ESOPs bandwagon With this, Sharechat joins the numerous Indian startups who have been rewarding ESOPs to employees during the pandemic. Recently, Zerodha announced that from the ESOP pool of ₹200 crore, employees will be permitted to sell 5-50% of the 33% of their shares that vest this year. When the ESOP money hit the banks of the employees, founder Nithin Kamath had called it the “most satisfying day” as an entrepreneur. Home services startup Urban Company had announced its third ESOP sale for $5 million. Meanwhile, OYO had allotted ESOPs (employee stock ownership plan) worth ₹130 crore ($18 million) for its furloughed employees. SEE ALSO: <a href="https://www.businessinsider.in/business/startups/news/byjus-onboards-new-investors-edtech-decacorns-paid-subscriber-base-jumps-by-a-million-in-a-month/articleshow/78267761.cms">BYJU’S onboards new investors – edtech decacorn’s paid subscriber base jumps by a million in a month</a> <a href="https://www.businessinsider.in/careers/news/interview-cams-ceo-says-they-are-actively-hiring-through-the-pandemic/articleshow/78269110.cms">INTERVIEW: CAMS CEO says they are actively hiring through the pandemic</a> <a href="https://www.businessinsider.in/business/news/mukesh-ambani-reliance-retail-gets-its-second-investment-in-two-weeks-kkr-invests-5550-crore/articleshow/78267281.cms">Mukesh Ambani's Reliance Retail gets its second investment in two weeks – KKR invests ₹5,550 crore</a>

Sharechat’s ESOP pool hits $35 million as company allots $14 million to employees

<ul><li><keyword id="3480589" type="PERSON" weightage="20" keywordseo="Meesho">Meesho</keyword> has rolled out an employee stock ownership plan (ESOP) buyback plan worth $5 million.</li><li>Through the ESOP buyback, Meesho’s employees from the junior level to the senior executive level will be able to vest 100% of their shares. </li><li>Meesho joins startups like Swiggy, Unacademy, Zerodha and Urban Company which have recently rolled out <keyword id="10250462" type="UNKNOWN" weightage="20" keywordseo="esop-buyback-plans">ESOP buyback plans</keyword>.</li></ul>Facebook-backed social e-commerce platform Meesho has rolled out an Employee Stock Ownership Plan (ESOP) buyback plan worth $5 million. This will be the second buyback plan the five-year old company is undertaking. Through the ESOP buyback, Meesho’s employees from the junior level to the senior executive level will be able to vest 100% of their shares. The share buyback plan comes at a time when the company claims that it is growing fast and now, has over 7 million entrepreneurs on its platform⁠— four times the pre-COVID level. “We at Meesho believe our employees to be our assets. The journey for everyone at a young company like ours has been interesting especially by the sheer rate at which we have grown in scale and speed. This venture is driven by a sense of entrepreneurship and responsible ownership on the part of each employee of the company, hence, with this second buyback we want to acknowledge their continued efforts and reward them for their contribution in building Meesho and thereby instill confidence in our existing and potential employees,” said Vidit Aatrey, Founder &amp; CEO, Meesho. Startups doling out benefits Employees in a startup when they join are offered certain shares in the company in the form of an Employee Stock Ownership Plan. While the actual benefits of it has been questioned by many, Indian startups are beginning to prove them wrong. Several startups have launched ESOP buyback plans including the likes of the $3.5 billion Swiggy which had offered an ESOP buyback plan for 40% of its employees who could sell their shares at three times the allotted price. “This program will see participation from the family offices of leading industrial houses in India and a few individuals who are stalwarts in their respective fields. Their interest to join the Swiggy investor community is a testament to their trust in the brand, our vision and growth potential,” said a Swiggy spokesperson. Recent startups which rolled out ESOP buyback plans <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Swiggy </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$7-9 million <a href="https://entrackr.com/2020/11/swiggy-to-reward-its-employees-with-esop-liquidity-program/">(reported value)</a> </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Unacademy </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$4 million </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Urban Company </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$5 million </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Zerodha </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$8.7 million </td></tr></tbody></table> Meanwhile, many others like Sharechat and OYO had also expanded their ESOP pool. In September, Sharechat had announced that it had added $14 million to its ESOP (employee stock ownership plan) pool, taking the total to $35 million. Meanwhile, OYO had allotted ESOPs (employee stock ownership plan) worth ₹130 crore ($18 million) for its furloughed employees. SEE ALSO: <a href="https://www.businessinsider.in/tech/news/google-will-be-probed-by-indias-competition-commission-for-allegedly-abusing-dominance-to-push-gpay/articleshow/79141895.cms">Google will be probed by India’s Competition Commission for allegedly ‘abusing dominance’ to push its payments app</a>

Facebook-backed Meesho is the latest to roll out an ESOP buyback plan worth $5 million

<ul><li>Employees who have completed over a year with the company will be eligible for this program.</li><li>In September this year, <keyword id="6630114" type="UNKNOWN" weightage="20" keywordseo="unacademy">Unacademy</keyword> became a unicorn with a $1.45 billion valuation after the much-talked-about funding from SoftBank. </li><li>Unacademy’s <keyword id="10112424" type="UNKNOWN" weightage="20" keywordseo="esop-buyback">ESOP buyback</keyword> plan is taking place for the second time, the first time being in September 2019. </li></ul>India’s latest edtech unicorn Unacademy has announced ESOP (Employee Stock Ownership Plan) buyback for ₹25-30 crore. “All vested <keyword id="173739" type="PERSON" weightage="20" keywordseo="Esops">ESOPs</keyword> until December 10, 2020 will be eligible for the buyback and current and exited employees may liquidate between 25% to 100% of vested ESOPs based on a specified scheme,” said the company’s statement. Employees who have completed over a year with the company will be eligible for this program. Unacademy’s ESOP buyback plan is taking place for the second time, the first time being in September 2019. In September this year, the company achieved the prestigious unicorn status, with a $1.45 billion valuation after the much-talked-about funding from SoftBank. Unacademy had also raised funding from Facebook in February, the social media giant’s second direct investment in India. The startup is also backed by Sequoia India, Nexus Venture Partners, Steadview Capital and Blume Ventures, and individual investors Kalyan Krishnamurthy, CEO, Flipkart, and Sujeet Kumar, co-founder, Udaan. The five-year-old startup is also one of the official sponsors for the ongoing Indian Premier League. The startup is also one of the <keyword id="2989202" type="PERSON" weightage="20" keywordseo="edtech-startups">edtech startups</keyword> that benefited from the coronavirus lockdown and the subsequent shift to online learning. Unacademy has over 13 million learners on its platform. <keyword id="6362513" type="UNKNOWN" weightage="20" keywordseo="startups">Startups</keyword> and their ESOP offerings Unacademy joins the long list of startups who have announced ESOP buybacks this year. In August, home services startup Urban Company, had announced its third ESOP (Employee Stock Ownership Plan) sale for $5 million. Zerodha announced that from the ESOP pool of ₹200 crore, employees would be permitted to sell 5-50% of the 33% of their shares that vest this year. In September, Sharechat had announced that it had added $14 million to its ESOP (employee stock ownership plan) pool, taking the total to $35 million. Meanwhile, OYO had allotted ESOPs (employee stock ownership plan) worth ₹130 crore ($18 million) for its furloughed employees. SEE ALSO: <a href="https://www.businessinsider.in/finance/banks/news/pnb-yes-bank-central-bank-of-india-idbi-and-six-more-indian-banks-are-the-worst-performing-bank-stocks-in-asia-pacific/articleshow/78679569.cms">10 out of 15 worst-performing bank stocks in Asia-Pacific are Indian — PNB, YES Bank, Central Bank of India, IDBI among them</a> <a href="https://www.businessinsider.in/business/news/now-paytm-mall-joins-amazon-flipkart-snapdeal-and-myntra-with-the-same-dates-for-its-sale-event/articleshow/78677121.cms">Now, Paytm Mall joins Amazon, Flipkart, Snapdeal, and Myntra with the same dates for its sale event</a>

Unacademy announces ESOP buyback worth nearly ₹30 crore for its employees

<ul><li>Khatabook has raised $100 million in its Series C round led by Tribe Capital and Moore Strategic Ventures (MSV).</li><li>Overall, the company’s merchants network manage more than 264 million users across India.</li><li>The company will use this funding to introduce new offerings for the merchants and hire across verticals.</li><li>The company had reported no revenue with a loss of ₹126 crore in the financial year 2020, as per Tofler.</li></ul>Bookkeeping app Khatabook’s valuation has touched $600 million even though the company is still in a pre-revenue phase. The company had reported no revenue with a loss of ₹126 crore in the financial year (FY) 2020, as per data platform Tofler. Khatabook’s financial statement for FY21 is not yet publicly available. A major reason for the company’s skyhigh valuation seems to be its penetration in the Indian small and medium businesses (SMB) market, which does not have much internet penetration. The company claims to have over 10 million monthly active merchants registered on the platform. Overall, its merchants manage more than 264 million customers. About 95% of the Indian districts are represented on its app, as per the company. The company, on Tuesday, said that it has raised $100 million in its Series C round led by Tribe Capital and Moore Strategic Ventures (MSV). Alkeon Capital also participated in the round, along with existing investors B Capital Group, Sequoia Capital, Tencent, RTP Ventures, Unilever Ventures, and Better Capital. Former and current partners of Andreessen Horowitz, Balaji Srinivasan and Sriram Krishnan, also infused an undisclosed amount in the Bengaluru-based startup. The latest round would allow Khatabook to strengthen its talent base and hire across multiple roles like engineering, product, design, analytics and data science functions. The company currently employs 200 individuals. A part of the funding will also be used to launch several new financial services for its merchant partners, the company said in a press note. Khatabook further added that it would also buy back $10 million worth of employee stock ownership plan (ESOP) shares to reward current and former employees of the company. Eligible employees will be able to sell as much as 30% of their vested options, the company said. It has also expanded its ESOP pool to $50 million. Khatabook was originally founded by Vaibhav Kalpe in 2016. The company was later acquired by Kyte Technology — founded by Ravish Naresh, Jaideep Poonia, Dhanesh Kumar and Ashish Sonone — in 2019, with Kalpe joining the company. The company enables small and medium enterprises (SMEs) to record and track business transactions. Khatabook helps small shopkeepers and kirana store owners in India manage their account by keeping track of the money owed to them through digital ledger. It also offers several features to make collection of money earlier through the use of technology. SEE ALSO <a href="https://www.businessinsider.in/business/startups/news/swiggy-sharechat-byjus-lead-the-funding-race-as-indian-startups-raised-6-5-billion-between-april-and-june/articleshow/85583697.cms">Swiggy, ShareChat, Byju’s lead the funding race as Indian startups raised $6.5 billion between April and June </a><a href="https://www.businessinsider.in/retail/news/ikea-products-would-now-be-even-cheaper-in-india/articleshow/85585775.cms">Ikea products would now be even cheaper in India</a>

Khatabook’s valuation touches $600 million with zero revenue to show

<ul><li>This is the fourth round of funding raised by the Delhi NCR-based startup in the last 15 months.</li><li><keyword id="6251606" type="UNKNOWN" weightage="20" keywordseo="classplus">Classplus</keyword> was founded in 2018 and helps tutors take their traditional classes online.</li><li>It has close to 100,000 tutors on its platform, teaching 20 million students across 1,500 cities in <keyword id="3658" type="LOCATION" weightage="20" keywordseo="India">India</keyword>.</li></ul>Edtech startup Classplus, which helps tutors go online, has raised $65 million in Series C funding round led by US-based <keyword id="526777" type="COMPANY" weightage="20" keywordseo="Tiger-Global">Tiger Global</keyword>. This is the fourth round of funding raised by the Delhi NCR-based startup in the last 15 months. GSV Ventures, along with existing investors Alpha Wave Incubation (AWI), Blume Ventures and RTP Global also participated in the Series C round. Overall, Classplus has raised over $85 million in funding to date, from investors like Sequoia Capital’s accelerator programme Surge, Times Internet and former cricketer <keyword id="6359039" type="PERSON" weightage="20" keywordseo="sourav-ganguly">Sourav Ganguly</keyword>. Classplus offers a mobile-first software that allows coaching institutes, tuition centres and private tutors to take their traditionally offline classes online. The company claims to serve a user base of 20 million students and 100,000 tutors across 1,500 cities in India. About 80% of the educators on the platform are from Tier-2 and beyond regions. “A typical educator is able to grow its student base from 100 to 1200 students within 8-10 months of using Classplus. The platform has seen massive success stories of educators generating 5x [five times] of their usual incomes within a year of starting up,” the company claimed in its press note. It also claims to help tutors increase their profitability by 2 times to 3 times within 6 months of using the platform. The company’s software solutions allow tutors to run their coaching, communication, assessments, payments, and student engagement programmes through their mobile solutions. Classplus was founded in 2018 by Mukul Rustagi and Bhaswat Agarwal. The company’s chief executive (CEO) and cofounder Rustagi said, “We are on a mission to ensure that every educator can go online and connect with their students across the world. The power of educators has historically been confined to their local neighbourhoods.” The company intends to use their capital raise to build on their product capabilities, grow geographically and expand their engineering team. The company will be hiring aggressively across engineering, product and business roles. Classplus competes with Bengaluru-based edtech startup Teachmint, which also enables teachers to conduct online classes through two-way interactive learning solutions with video sharing and more. The platform was<a href="https://www.businessinsider.in/business/startups/news/byjus-backer-lightspeed-india-invests-in-a-live-tutoring-platform-teachmint/articleshow/78924152.cms"> founded in 2020</a> and has raised $20 million to date from marquee investors like Better Capital, Lightspeed India Partners, Learn Capital and more. SEE ALSO: <a href="https://www.businessinsider.in/business/startups/news/upside-ai-raises-1-2-million-in-seed-funding-to-help-indians-invest/articleshow/83713098.cms" data-type="tilCustomLink">Personal investment platform Upside AI raises $1.2 million in seed funding to help Indians make money</a> <a href="https://www.businessinsider.in/business/startups/news/james-murdoch-plans-to-raise-150-million-from-ultra-rich-to-invest-in-indian-startups/articleshow/83709567.cms" data-type="tilCustomLink">James Murdoch plans to raise $150 million from ultra rich to invest in Indian startups</a> <a href="https://www.businessinsider.in/business/startups/news/sharechat-around-200-existing-and-former-employees-will-be-eligible-to-participate-in-the-esop-buyback-plan/articleshow/83638787.cms" data-type="tilCustomLink">Sharechat employees will make $19 million out of the latest ESOP plan, as growth spikes in the absence of TikTok</a><h1 style="margin-bottom: 10px; padding-bottom: 15px; border-bottom: 1px solid rgb(238, 238, 238); font-variant-numeric: normal; font-variant-east-asian: normal; font-stretch: normal; font-size: 1.6rem; line-height: 1.2em; font-family: LabGrotesque-Black, Helvetica, Arial, sans-serif; vertical-align: baseline; color: rgb(17, 21, 22); background-color: rgb(255, 255, 255);"></h1>

Edtech startup Classplus raises $65 million led by Tiger Global to bring more tutors online

<ul><li>Beauty e-commerce unicorn <keyword id="6376684" type="UNKNOWN" weightage="20" keywordseo="nykaa">Nykaa</keyword> has raised another investment from the Boston-based asset management company Fidelity Management &amp; Research Company. </li><li>Earlier this year, Nykaa had raised funds similarly through secondary transactions from actresses Alia Bhatt and Katrina Kaif. </li><li>In March 2020, Nykaa had raised ₹166 crore from Steadview Capital, one of its existing investors. </li></ul>Indian beauty e-commerce unicorn Nykaa has raised funds from the Boston-based asset management company Fidelity Management &amp; Research Company. The investment was made through a secondary transaction, which gave Nykaa’s previous investors a partial exit. Through the investment, some of Nykaa’s employees also sold their ESOPs (Employee Stock Ownership Plan). Earlier this year, Nykaa had raised investments similarly through secondary transactions from actresses <a href="https://www.businessinsider.in/business/startups/news/after-katrina-kaif-alia-bhatt-invests-in-e-commerce-unicorn-nykaa/articleshow/78888581.cms">Alia Bhatt</a> and <a href="https://www.businessinsider.in/business/startups/news/bollywood-star-katrina-kaif-invests-in-nykaa-a-year-after-she-launched-her-own-beauty-line-on-the-e-commerce-platform/articleshow/78697016.cms">Katrina Kaif</a>. In March 2020, Nykaa had raised ₹166 crore from Steadview Capital, one of its existing investors. The investment had brought Nykaa a ticket to the unicorn club with a $1.2 billion valuation, having already raised over $100 million in total funding. “We are very excited to have Fidelity, one of the largest asset managers in the world, to join as a partner in our growth journey. Their investment in a private company in India is testament to the strength of our brand and business model. Nykaa’s focus on business sustainability and corporate governance further supports such strong investor confidence,” said Nykaa Founder and CEO Falguni Nayar in a statement. Nykaa’s profitability streak <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Year </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Revenue </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">EBITDA </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FY20 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,860 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹94 crore </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FY19 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,159.32 crore. </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹2.3 crore </td></tr></tbody></table> With the rise in e-commerce sales despite the coronavirus lockdown, Nykaa expects its revenue to grow by 40% in FY21. SEE ALSO: <a href="https://www.businessinsider.in/business/startups/news/alia-bhatt-dons-the-entrepreneur-hat-launches-a-conscious-clothing-line-for-kids/articleshow/79421788.cms">Alia Bhatt dons the entrepreneur hat — launches a conscious clothing line for kids</a> <a href="https://www.businessinsider.in/business/startups/news/sharechat-moj-will-air-exclusive-content-from-bigg-boss/articleshow/79425405.cms">Sharechat's Moj has a new strategy to add more users — ties up for exclusive content with one of India's most viewed reality shows, Bigg Boss</a>

Nykaa raises another round of investment from Boston’s Fidelity through a secondary transaction

<ul><li><keyword id="830092" type="COMPANY" weightage="20" keywordseo="Zomato">Zomato</keyword> is pegged to be valued at $8.1 billion, ahead of its upcoming IPO scheduled for this year.</li><li>The company is expected to earn $1.4 billion as operational revenue, but the question over its profitability still lingers on.</li><li>Swiggy’s capital flow can put Zomato’s valuations in danger as it is susceptible to losing the dominant position in <keyword id="3658" type="LOCATION" weightage="20" keywordseo="India">India</keyword>.</li></ul>Food delivery platform Zomato, which started as an online restaurant finder, is all set to raise $1.1 billion through its initial public offering (IPO) scheduled for this year, reportedly at a valuation of a whopping $8 billion. The question that is bothering many is the fact whether the Gurugram-based company deserves this kind of valuation given its loss-making operations. Some experts say, yes. The Indian financial services company <keyword id="46249" type="COMPANY" weightage="20" keywordseo="Edelweiss">Edelweiss</keyword> has valued Zomato at $8.1 billion (₹58,051 crore) currently, given the strong business performance in the past and the potential for an even greater future. The said valuation is calculated at a 49% premium to Zomato’s last funding round raised in February 2021, which valued the company at <a href="https://www.businessinsider.in/business/startups/news/ipo-bound-zomato-valuation-jumps-to-5-4-billion-as-it-cashes-in-another-250-million/articleshow/81164109.cms">$5.4 billion</a>. But these valuations are simply based on the narratives, and the company will really have to pull up its socks in order to maintain its ground in the public market. Zomato may have reported somewhat steady growth so far, but the food-tech company would really have to pull a bunny out of its hat in order to impress the public market. Zomato’s valuation largely hinges on the ability to sustain and fortify the leadership in the Indian market, says Edelweiss, and rival Swiggy is <a href="https://www.businessinsider.in/business/startups/news/zomato-and-swiggy-have-never-been-this-close-to-making-profit-say-goldman-sachs-analysts/articleshow/79163334.cms">not that far behind</a>. Zomato (founded in 2008, started deliveries in 2016) may have received a head start in the food segment, but Swiggy (founded in 2014) played many right moves to give a tough competition to the Gurugram-based company. While Zomato was busy expanding its presence across 23 overseas markets, Swiggy solely focused on capturing the Indian market. The end result was that Zomato had to<a href="https://www.livemint.com/Companies/oSrhvB1xFHHx3gsMXtPifO/Zomato-scales-back-operations-in-global-markets.html"> roll back its services</a> in 9 countries by 2016 due to rising losses, and Swiggy had closed three funding rounds and crossed over<a href="https://yourstory.com/2016/04/swiggy-growth-story/amp"> million downloads</a> in India. Today, both these platforms match up in almost every metric -- <a href="https://www.moneycontrol.com/news/trends/millennials-prefer-swiggy-to-zomato-report-5023321.html">average order value</a>, monthly deliveries, operational cities (India)and more. To add on, Swiggy has raised almost $1 billion in the last couple of years and has enough capital to take on Zomato in the Indian market. “Swiggy and Zomato are practically of the same size currently; hence their execution in terms of cohort growth and getting new consumers would be key. We don’t see capital as a constraint for both the companies in the medium term. Execution, therefore, will be a function of quality of management and their strategic choices,” the report read. Zomato declined to comment on the queries raised by Business Insider. Swiggy did not reply until the time of publishing. Besides the incoming competition from Swiggy, Zomato will also be susceptible to rivalry from new entries like <keyword id="18635" type="COMPANY" weightage="20" keywordseo="Amazon">Amazon</keyword>. Zomato may have to find more attractive mediums to keep the customers interested without giving up on its unit economics, which is going to be one challenging task. Zomato expected to turn profitable by FY23, operational revenue to hit $1.4 billion Edelweiss’ report on InfoEdge’s performance in the financial year 2021 also looks into the performance of its portfolio companies. Zomato is expected to report an operating revenue (commissions on deliveries) of $1.4 billion (₹10,554.8 crore) by the financial year (FY) 2023, nearly five times higher than its $350 million reported in FY20. Besides this, Zomato is also expected to turn profitable at an EBITDA and FCF level by the same time frame. EBITDA is the company’s earnings before interest, taxes, depreciation, and amortization, whereas FCF is the free cash flow available to the company after the capital and operational expenditures. But this may be too bullish of an approach. Global investment bank <keyword id="6361649" type="COMPANY" weightage="20" keywordseo="Goldman-Sachs">Goldman Sachs</keyword>, which is also running Zomato’s IPO process, estimates that the food delivery giant will be able to reach EBITDA breakeven (cost = expense before tax) by FY23. The food delivery giant’s positive unit economics achieved in 2020 may be a good sign, but it is too soon to be considered as a long term trend. It may be a step towards profitability, but there are still miles to cover for the Gurugram-based company. Zomato ended up in losses in FY21 (till December 2020) despite earning ₹22.9 per order. The company registered a loss of $10 million (₹74 crore) on a monthly basis between April to December 2020. Its monthly transacting users were also cut by half from 10.7 million to 5.8 million in the same time frame as the pandemic made users more cautious about ordering in. Zomato expected to deliver 130 million orders a month by 2025 Founded in 2008, by Deepinder Goyal and Pankaj Chaddah, Zomato has marked its presence in every continent, except Antarctica, through acquisitions and its subsidiaries. Edelweiss' estimates show that the foodtech business’ monthly order rate is expected to grow 30% in the next four to five years. This means Zomato, which delivers about 30 million orders on a monthly basis at the moment, could be delivering 130 million orders by 2025. However, the same might not hold true for Zomato’s average order value (AOV). The company’s average order value (AOV) grew to ₹407 in Q3 of FY21 due to many Covid-induced factors. The biggest trend of 2020 was that individual orders were seen shifting towards family ordering as young professionals started working from home. However, Zomatos’s AOV is expected to decline to ₹360 once offices start resuming, as per the report. “A notable dip in AOV due to single orders – instead of family orders – and rising discounts due to increased competitive intensity are the key risks to unit economics, and valuations,” the report reads. There is no doubt that Zomato’s IPO is one of the most anticipated ones in the India market, given its popularity amongst the masses. But keeping up with the volatile market is not an easy thing to do. Zomato’s US-based counterpart DoorDash was valued at a revenue multiple of 17X in its IPO. A similar multiple would peg Zomato below its current valuation of $5.4 billion, <a href="https://the-ken.com/story/the-non-obvious-takeaways-from-zomatos-ipo-prospectus/">says </a>The Ken. SEE ALSO: <a href="https://www.businessinsider.in/business/ecommerce/news/flipkart-and-amazon-may-not-be-able-to-do-flash-sales/articleshow/83737670.cms">Amazon, Flipkart and other e-commerce platforms may not be able to do flash sales any more, if Indian government has its way </a><a href="https://www.businessinsider.in/business/startups/news/sharechat-around-200-existing-and-former-employees-will-be-eligible-to-participate-in-the-esop-buyback-plan/articleshow/83638787.cms">Sharechat employees will make $19 million out of the latest ESOP plan, as growth spikes in the absence of TikTok</a> <a href="https://www.businessinsider.in/business/startups/news/paytm-has-appointed-goldman-sachs-and-jp-morgan-as-the-bankers-for-its-upcoming-ipo/articleshow/83574242.cms">Paytm ropes in Goldman Sachs, JP Morgan as bankers for upcoming IPO ⁠— there may be more along the way</a>

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Sharechat employees will make $19 million out of the latest ESOP plan, as growth spikes in the absence of TikTok

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Edtech startup Classplus raises $65 million led by Tiger Global to bring more tutors online

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Nykaa raises another round of investment from Boston’s Fidelity through a secondary transaction

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There are a few reasons why Zomato wants $8 billion valuation from its IPO — here's a look at if it makes sense

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