India Roundup: Sequoia-backed Khatabook shuts ecommerce unit, and more (Updated)

*Update (November 9, 8 p.m. SGT): Adds news on Khatabook.

Sequoia-backed bookkeeping firm shuts ecommerce unit

• Sequoia-backed Khatabook is pulling the plug on its ecommerce enabling platform, MyStore in a bid to consolidate its product portfolio as part of its strategic growth plan.
• Ahead of the shutdown on November 15, Khatabook has asked MyStore users to download invoices by sharing order invoices and uninstall the application.
• Khatabook launched MyStore (formerly known as Dukaan by Khatabook) in 2020. It competed with platforms such as OKCredit’s OkShop, which reportedly hasn’t gained much traction either.

Paytm IPO records 18% subscription on day 1

• Paytm’s parent firm, One97 Communications, saw a slow start to its US$2.4 billion initial public offering as it recorded an 18% subscription on the inaugural day of issue. 
• The section reserved for retail investors saw 78% subscription, whereas the parts set aside for qualified institutional buyers and non-institutional investors were subscribed 6% and 2%, respectively. 
• Last week, Paytm raised US$1.1 billion from anchor investors as part of its IPO. The anchor round was co-led by BlackRock, Canada Pension Plan Investment Board, and GIC, which invested US$335.6 million collectively. (Read: Paytm IPO: 8 key points about India’s largest stock market debut)

Ratan Tata-backed AI firm shuts down

• Niki, a Bengaluru-based firm that offers an conversational virtual assistant, is reportedly shutting down and has already laid off most of its employees. 
• The six-year-old AI firm, which is backed by industrialist Ratan Tata and upGrad founder Ronnie Screwvala (via Unilazer Ventures), is closing down after making failed attempts to get acquired by other firms. 
• Niki has raised a total of US$6 million in funding and planned to raise another US$50 million by early 2021. Earlier this year, the firm said it recorded a gross merchandise value run rate of US$25 million.

Battery Smart gets US$7 million power-up 

• Blume Ventures and Orios Ventures co-led the pre-series A round of the Delhi-based firm, which provides a battery swapping network for electric vehicles (EVs). 
• The round also saw participation from Green Frontier Capital and Baring Private Equity India, as well as from angel investors including BigBites co-founder Srinivas Anumolu, GrowthStory partner K Ganesh, Spinny CEO and founder Niraj Singh, and GoMechanic co-founder Amit Bhasin. Alternative debt platform TradeCred also joined the funding round.
• Founded in 2019 by ex-Shuttl executive Pulkit Khurana and former Urban Company executive Siddharth Sikka, Battery Smart uses the “battery-as-a-service” model to provide interoperable battery swapping services for EVs. The company plans to use the latest funds to improve its tech, scale its operations to service more than 10,000 EVs daily, and enter three new states by the end of fiscal year 2022.

Investment advisory platform Stratzy raises US$800k 

• Stratzy, an investment advisory platform for retail investors, has raised US$800,000 in pre-seed funding from Leo Capital, Titan Capital, and First Cheque.
• The company plans to use the funds to acquire new users and secure regulatory permits, among other things. It is backed by Fynd co-founder Harsh Shah, ShareChat co-founder Farid Ahsan, and PointOne Capital partner Archana Priyadarshini. 
• Founded in 2020 by Mohit Bhandari and Gaurav Sangle, Stratzy aims to help young investors make educated decisions on market investments. The company said it will integrate investment strategies for cryptocurrencies by early next year.