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26th March 2021
Good Morning! 

Happy Friyayy and a Happy Holi to all of you in advance. 
We will be taking the day off on Monday to enjoy as well, so we will now see you on Tuesday.
Please stay safe and enjoy all the gujjiyas and "that drink" at home with your immediate family only this time. 
  MARKETS
 

SENSEX

48,440.12

- 1.51%

NIFTY

14,814.75

- 1.54%

US$

72.63

+ 0.09%

GOLD

44,837

- 0.05%

10-YR

6.13%

- 2.2 bps

OIL

4,324

- 0.77%

*As of market close

  • Markets: Benchmark stock indexes dropped sharply in the late afternoon yesterday as covid cases in the country continue to rise. Selling was heaviest in index majors Reliance Industries, Infosys and HDFC Bank led by foreign fund outflow.

Regulations

Stay Calm And IPO
Not Too Happy

Everybody Stay Calm. What we've been waiting for is finally happening. 

Our stock market regulator SEBI has eased some IPO rules and regulations. This should make things a bit easier for our startups to list here.

Innovators Growth Platform(IGP)

Ever since 2019, we've had a separate exchange for "new-age companies". The Innovators Growth Program(IGP).
Don't get too worked up finance lovers you're forgiven for not knowing about this since they have a grand total of zero companies currently listed on the platform. Yes 0.
But now they are easing the rules so maybe just maybe someone will list.

New Rules

The rule changes are a bit technical in nature, but here’s The Gyst of the changes:

  • Currently, if a company wants to list on the IGP, at least 25% of its pre-IPO capital needs to be held by an institutional investor (like a mutual fund or private equity or venture capital fund) for at least 2 years. This holding period has now been relaxed to 1 year.
  • Also, now institutional investors are not strictly needed to meet this 25% criteria. The shares can be held by an ‘accredited investor’ too and the company will still be able to list on the IGP. (An accredited investor is a person with a liquid net worth of Rs 5 crores and above). 
  • SEBI has also taken some steps to make it easier for startups, once listed, to later delist or migrate from the IGP to the main board of the NSE or BSE.

The Takeaway

With the flood of IPOs being announced maybe we can see some startup deciding to take advantage of this too.
Hopefully, this is the first step of many to encourage Indian startups to opt for IPOs in India rather than going abroad.

Tech

One App To Rule Them All
One app to rule them all
Ever since we've had smartphones in India plenty of companies have been looking to create the one app to rule them all -- The Super App.

Now it's become quite clear that we're going to have Tata and Reliance going head to head for it.

Tata has now gone on and set aside some serious money to realize these dreams.

Big Plans

As per ET, Tata Sons' board held a meeting where they have decided to put aside Rs 12,000 cr just for acquisitions and investments.

As you all will probably remember, Tata is waiting for CCI approval to acquire a 64% stake in BigBasket. That itself is going to be costing them around Rs 8,700 cr.
It also looks pretty certain that they will be acquiring a majority stake in 1mg (the online pharmacy), which will cost another Rs 1,000 crores or so.
And then they already have their own e-commerce platform set up through Tata Cliq and also their own e-grocer called StarQuik which will require quite a bit of its own money to grow.

Payment Plans

Their plans aren't just related to online commerce btw.
Remember the whole NUE license saga we recently covered?

Tata is one of the companies applying for a license.
They are doing this by partnering up with HDFC Bank, Kotak Mahindra Bank, Airtel and Flipkart.

Initial reports of what these guys are working on are quite interesting.

As per ET, they are working on 3 products that will increase the reach of digital payments across India.

  • Tata is working on a universal payments ID that could potentially replace all thumbprint-backed transactions like Aadhar based payment options. Aadhar based payment options are quite popular in rural areas. (Check this video out if you want to see how it works.)
  • They are also looking to build some sound-based payment solutions for users who don’t own a smartphone.
  • They also hope to launch a mobile phone-based universal POS that will be usable across all payment operators.

The Takeaway

Tata definitely seems to be serious about becoming the one place to go for everything (if they weren't already). They literally sell everything from salt to software.

The only thing in their way is Mukesh Bhai. For whatever Tata is trying, Reliance is trying too. Reliance also has applied for an NUE license.
We are pretty excited because as consumers, we're hoping to get a ton of benefits coming our way!

Tech Snippets 

Byju's Fundraising, Again

Because raising over $1 billion last year isn't enough Byju's is out to raise money, again.
As per Techcrunch Byju's is out to raise another $600 million at a rumoured $15 billion valuation.
Talks are quite advanced and the size of the round could become even bigger.
Byju's has been killing it ever since the pandemic hit with their current revenue run rate at $800 million.
Around $100 million of this came from the US market where they plan to gain an even bigger foothold over the next few years.

While we joke about them fundraising Byju's really isn't one of those "raise now and think about unit economics later" type startups. In fact, they are already profitable.

Byju's is currently the 2nd most valuable private startup in India.
We won't be surprised to see them become the biggest by the end of this year.

Us after covering another ed-tech funding though ⬇️




Analyst in the Khata

Khatabook has acquired Biz Analyst, a SaaS application for business management. The rumoured price is $10 million with the deal being a mix of cash and equity.

BizAnalyst provides software to SMEs so they can manage their sales, inventory, outstanding balance etc.
They already cater to 80k paid users.

This acquisition fits perfectly in Khatabook's recent strategy of providing all the solutions an SME would need to completely digitize their operations.
Khatabook originally started with Digital Khata, which is an online bookkeeping tool for SMEs.
Since then they've launched an online merchant storefront called 'MyStore' and 'Pagarkhata' for staff management.

While BizAnalyst will still run as an independent company post-acquisition, we are sure Khatabook will use its existing network of 10 million monthly active merchants to really propel its growth.

Khatabook didn't make any operating revenue in FY20 so BizAnalyst provides a good way to monetize as well.

Whatever You Can Do, We Can Too!

One of Khatabook's competitors on the Online Merchant Storefront side of things has just gone on to raise some money too.
Dot has raised Rs 171 crores.

Dot (through DotPe) provides solutions for brick and mortar stores to list their catalogue, accept orders and payments and even engage their customers.

In September 2020 they decided to get into the Online Merchant Storefront space as well with a separate app called Digital Showroom. This directly competes with Khatabook's MyStore.
Digital Showroom claims to have 4.5 million users as of January.

The online merchant storefront (or 'dukaan tech') space is quite hot right now with Dukaan, Khaatabook, OkCredit, Bikayi and Dot all vying for as many merchants as they can get.
On a Lighter Note

If you have more time ...

The Gyst Contest


As a reminder, our Gyst referral giveaway contest is still going on and will be open until Sunday 11:59 pm. For those who missed it earlier. 

You can win a set of 3 top books on Decision Making!

There'll be 2 lucky winners that will get a set of 3 books each!

How to take part:
  • When you share The Gyst over this week using your unique referral link, you get entered into a raffle to win.
  • The more you share, the better chance you have (1 referral = 1 ticket).
  • The contest is going to last until Sunday 11:59 pm. We will announce the winner next week.
Just use the sharing links below or copy and paste your referral link in an email, WhatsApp, on social media, or however else you'd like to share it.

Share The Gyst on WhatsApp, Twitter, Linkedin, Facebook or via email.

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