The new round is expected to benchmark a new valuation for Snapdeal besides testing if its founders can win investor trust for the business after seeing a significant value erosion, said the first source mentioned earlier.
Prosus CEO Bob van Dijk's statement comes at a time when the DPIIT is looking into online food delivery companies like Zomato and Swiggy, where Prosus owns a 39% stake for an investment of $850-900 million, for deep discounting, data masking and private labels.
While a large part of the losses for these companies (Softbank-backed Paytm, Walmart-owned PhonePe and Amazon Pay) were driven by marketing and promotion spends, including cashbacks to customers, costs related to technology and employees were other significant contributors.
The funds will be used by the promoters of Dindigul Thalappakatti to expand in metros across India and also overseas.
Software requires a fairly deep understanding of customer needs and what technology makes sense, says Naren Gupta, co-founder of Nexus Venture Partners.
In June last year, Freshworks had said that it had reached $100 million in annual recurring revenues (ARR). Analysts tracking the space peg the current ARR at $150-200 million.
Paytm has completely cut incentives on P2P UPI transactions after seeing a group of customers conduct millions of transactions of Rs 21 between its network and other rival players.
Their exposure in startup scene and operational credibility have made them darlings of venture capital firms
While Pine Labs does not have a high cash burn, the additional capital raised will help it expand in the lending space.
The final size of the fund is still being decided, and Accel could end up raising more than its stated intention.
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