India Roundup: B2B unicorn Udaan to raise $537m, and other news

Udaan in talks to raise US$537 million for expansion

• Business-to-business unicorn Udaan will reportedly close its latest funding round worth 40 billion rupees (US$536.5 million) within the next few weeks.  The latest financing round comes amid a boom in the number of retailers and wholesalers on the platform.
• If the deal goes through, Udaan will be valued in the range of US$4.5 billion to US$5 billion.
• The startup recently named its co-founder Vaibhav Gupta as CEO ahead of a potential public listing.

Zostel looks to put Oyo’s IPO plans on hold

• Hospitality startup Zostel is reportedly planning to appeal to the Securities and Exchange Board of India (SEBI) to put Oyo’s US$1.2 billion public listing on hold.
• Zostel had approached the Delhi High Court alleging that Oyo had violated a binding agreement for a buyout deal that was inked six years ago. Zostel said it fulfilled its obligations under the deal and transferred its business to Oyo but did not receive a 7% stake in the hotel chain in return.
• After a high court hearing slated for October 7, Zostel is also expected to send a letter to SEBI regarding the botched acquisition deal.

UpGrad eyes US$500 million annual revenue run rate by March

• Edtech unicorn upGrad said its annual revenue run rate (ARR) had hit US$210 million in September, and that the company was on track to hit an ARR of US$500 million by March 2022.
• The firm added that it expected to close certain global deals in the coming months.
• In August, upGrad raised US$185 million from Singapore state investor Temasek and others at a valuation of US$1.2 billion.

VC firm that backed Lenskart targets US$150 million second fund

• Epiq Capital is reportedly looking to invest in growth-stage startups via its second fund, which will likely raise half its capital from domestic sponsors, and the rest from international sponsors.
• The second fund will have an average investment ticket size of US$10 million to US$20 million.
• Epiq has previously invested in companies like Lenskart, Cure.Fit and Dailyhunt through its first fund.

Digital consulting firm Kaar Technologies raises US$4 million in venture debt

• Lead investor: BlackSoil Capital
• Funds used to: fuel the company’s expansion into the US.
• About the startup: Founded in 2005, Kaar Technologies offers consulting, implementation, and support based on SAP (Systems Applications and Products in Data Processing) enterprise software solutions to firms across the globe with the aim to improve their business processes.

Cred founder joins US$1.3 million round in credit card service firm Hyperface

• Lead investors: Cred founder Kunal Shah, Better Capital, GFC
• Stage: Pre-seed
• Funds used to: strengthen the company’s tech platform, launch card programs, and ramp up hiring.
• About the startup: Founded in February, Hyperface simplifies launching a credit card product for fintech companies, ecommerce firms, and neobanks that are looking to embed financial products into their mobile apps.

Online community for older adults, Evergreen Club, raises fresh funds

• Lead investor: RPG Ventures
• Stage: Seed
• Funds used to: scale the company’s operations, expand its suite of offerings, and invest in marketing activities.
• About the startup: Founded in January, Evergreen Club aims to cater to the emotional and mental well-being of the elderly by providing them with access to over 1000 sessions including yoga, meditation, dance therapy, gardening, cooking, arts and crafts, and karaoke.

Currency converted from Indian rupees to US dollar: US$1 = 74.57 rupees.