Also in this letter:
■ B Capital raises $250M for early-stage fund Ascent
■ Cryptocurrency exchange Gemini lays off 7% of employees
■ Twitter accuses Musk of ‘slow’ lawsuit
PharmEasy Plans To Raise $200 Million With Valuation Down To 25%
PharmEasy online pharmacy is negotiating with investors raise $200 million, but at a valuation that could be 15% or even 25% lower than last year’s $5.1 billion.two people with direct knowledge of the deal talks told Reuters.
PharmEasy’s “down” deal, in which the firm sells shares at a lower price than before, will be the first for a prominent Indian startup in recent times.
Details: One source said PharmEasy, backed by major investors such as Prosus, TPG and Temasek, is in talks to raise new funds at a valuation 15% lower than last year.
A second source said the company had asked its bankers to consider even a 25 percent cut if needed to close the deal.
This could lower PharmEasy’s estimate for the new funding round to $3.8 billion.
IPO postponed: Sources said the company’s initial public offering (IPO) has been delayed.
Banking on higher healthcare costs and growing use of online ordering, parent company PharmEasy API Holdings filed a prospectus last year to raise $782 million in an IPOhoping to be listed in 2022.
ETtech Completed deals
■ Temasek and Zomato-backed logistics aggregator Shiprocket stated that acquired multi-channel technology business Omuni Arvind Retail in a Rs 200 crore cash and stock deal.. This marks another attempt by Shiprocket to double its direct-to-consumer shipping business. The $200 million acquisition of Pickrr was announced last month.
■ M2P Fintech Financial Infrastructure Provider made its third acquisition this year from identity verification provider Syntizen, as it looks to expand its offerings to fintech companies and other financial institutions. Earlier this month, the company bought out Bangalore-based cloud lending platform Finflux.
■ Medical startup Eka Care raised $15M in a funding round led by Hummingbird Ventures, with the participation of 3one4Capital, Mirae Asset, Verlinvest and Aditya Birla Ventures. Flipkart co-founder Binny Bansal and Rohit M.A., co-founder of the Cloudnine hospital group, have also invested in the firm.
B Capital Raises $250M for Early Stage Fund Ascent
Karan Mola, Partner, B Capital
Technology-focused global investment firm B Capital said that raised $250 million in its first dedicated early-stage car fund, Ascent.
B Capital Chairman Howard Morgan, co-founder Eduardo Saverin and general partners Gabe Greenbaum and Karen Page, along with Karan Mohal, are behind the launch of Ascent as a separate fund, the firm said in a statement. Prior to this, Ascent was a partnership fund with no external capital.
B Capital has previously supported startups such as Meesho, Byju’s, PharmEasy and others.
Head of India: Mola, who left Chiratae Ventures (formerly IDGVentures India) and joined B Capital earlier this year, will lead Ascent’s Asian team.
B Capital’s early-stage special fund will cut checks in the range of $1 million to $10 million in sectors like fintech, enterprise and software-as-a-service, and healthcare, Mohl said.
Early Trend: Recently, many large venture capital firms have set aside separate funds for seed and early stage investments.
Last month, Sequoia Capital said it made $2.85 billion. through three different capital pools to double the stakes across milestones and geographies in India and Southeast Asia.
On July 5, we reported that venture capital funding for Indian startups has fallen by 37%. in the second quarter of this year to $6.9 billion, according to research firm Venture Intelligence.
Tweet of the day
Cryptocurrency exchange Gemini lays off 7% of employees in second round of layoffs
Cryptocurrency exchange Gemini laid off 68 employees7% of their workforce amid the ongoing crypto winter, one month after cutting 10% of their workforce, Techcrunch reports.
layoff season: The company will continue to cut staff in the coming months as inflation rises and the Fed raises interest rates.
Last week, NFT marketplace OpenSea lays off 20% of employees, while crypto-lending company Celsius Network, which recently laid off 150 employees, filed for bankruptcy in the US. Last month, crypto exchange Vauld decided to cut its headcount by around 30%.
Apple is slowing down hiring: Meanwhile, Bloomberg reports that Apple slow down next year due to poor macroeconomic conditions, making it the last major tech firm after Microsoft, Meta as well as Google slow down hiring plans or fire workers. Tech companies thrived during the pandemic but have struggled since early 2022.
Twitter accuses Musk of ‘slow’ lawsuit
On Tuesday, Twitter fired again at Elon Musk, accusing him of trying to “slowly go through” the company’s lawsuit while urging the court to hold a trial in September to ensure the terms of the $44 billion takeover deal remain in place, according to court documents.
Quote: “Millions of Twitter shares trade daily under a cloud of doubt created by Musk. No public company of this size and scope has ever faced such uncertainty,” Twitter said in the documents.
In a rush: Twitter is determined to end the lawsuit quickly as the merger agreement with Musk expires on October 25th. Musk a few days ago filed a motion to block Twitter’s request for a trial in September.
Softbank Postpones IPO Arm in London
Japanese giant Softbank suspended plans to list its UK-based chip maker Arm in London due to the collapse of the UK government, according to the Financial Times.
Tell me more: According to the report, Softbank has put the talks on hold as investment minister Jerry Grimstone and digital minister Chris Philip, who played a leading role in the deal, left after the collapse of British Prime Minister Boris Johnson’s government. He will now aim to place Arm directly in the US. as Masayoshi Son stated last month.
Softbank acquired Arm in 2016 for $32 billion and was about to sell it to chip giant Nvidia in an $80 billion deal last year, but the deal fell through. due to regulator resistance.
Arm supplies intellectual property in the form of chips to leading smartphone makers Apple and Samsung.
Today’s ETtech Top 5 newsletter was curated by Zaheer Merchant from Mumbai and Ruchir Vyas from New Delhi. Graphics and illustrations by Rahul Awasti.