India Roundup: SoftBank could make at least $7b gain from IPO rush, and more

SoftBank’s potential US$7 billion windfall from IPO rush

• The Japanese conglomerate is expected to make at least US$7 billion in notional gains from the public listing of Indian startups including Paytm, PB Fintech, Oyo Rooms, and Delhivery.
• SoftBank’s investment in these four startups have jumped from US$3.35 billion collectively to an estimated US$10.6 billion. Its stake in each company is also in the double digits.
• SoftBank’s gains may continue to grow as two more startups in its porfolio – Ola and InMobi – are reportedly planning to go public. The Tokyo-based firm holds a 25% and 40% stake in the two startups, respectively.

PolicyBazaar surges nearly 23% following public listing

• PB Fintech, the parent firm of insurtech startup PolicyBazaar, made a strong showing as it listed at a 17.35% premium over the issue price of its IPO.
• PB Fintech’s stock market debut was oversubscribed by almost 17 times last week as it received bids for 572 million shares against 34.5 million shares on offer.
• Backed by the likes of Tencent, Temasek, and SoftBank, PolicyBazaar has already raised US$343 million in an IPO anchor round. (Read: 7 insights into PolicyBazaar’s prospects for profitability from its IPO filings)

Nykaa reports 96% dip in net profit in second quarter

• Shares of FSN E-commerce Venture plunged 7.4% after the parent company of beauty marketplace Nykaa reported that its consolidated net profit plummeted by 95% to 12 million rupees (about US$161,000) in the second quarter that ended in September.
• FSN attributed the decline to its increased spending for marketing and advertising, which was aimed at ramping up customer acquisition. The monthly average unique visitors to its platform rose to 21 million. Year-on-year growth for its beauty and personal care vertical was at 62% while its fashion vertical hit 328%.
• Revenue from operations jumped 47% in the quarter, while gross merchandise value soared 63%.

Moglix’s Credlix ventures into export-import finance

• Credlix, the digital supply chain financing platform of Moglix, has acquired Singapore-based fintech startup NuPhi for an undisclosed sum.
• Founded in 2019 by former Yes Bank executives Pramit Joshi and Mayur Totla, NuPhi provides cross-border financing and software-as-a-service applications to digitize and automate export-import workflows.
• Credlix said that it has exceeded the annual run rate of credit disbursal of US$100 million since its launch earlier in February. To date, it has provided financing to over 26,000 invoices for more than 2,500 micro, small and medium-sized enterprises (MSMEs).

Paytm Money launches voice-powered trading feature

• According to a company statement, the new feature allows users to place a trade or get information about stocks on Paytm Money through a single voice command.
• It leverages neural networks and natural language processing (NLP) to enable instant processing on the platform.
• The feature is currently available to select users as part of a beta trial. It will be rolled out to all users in the coming weeks.

Women-focused F&B firm raises US$17 million

• Investcorp, a Bahrain-based alternative investment firm, led a US$17 million round in Wingreens Farms, a packaged food and beverage company. The round also saw participation from Omidyar Network India.
• Founded in 2011, Wingreens’ portfolio includes healthy snacks, spice mixes, and nondairy milk, among others. The company has an offline retail presence in more than 200 cities across India.
• It has also launched a new direct-to-consumer website to offer various food and beverage brands across the country.

Currency converted from Indian rupee to US dollar: US$1 = 74.47 rupees