Delhi has a lot of post-IPO plan; Vedantu fires 200 employees
So in this letter:
■ Unicorn Edtech Vedantu fires 200 employees
■ Arun Sirdeshmukh, CEO of Ola Cars, resigns
■ ETtech opinion: the way we evaluate startups must change
After the reduced IPO, Delhivery will double the expansion
Launch of new age logistics Delhivery has set a price range of Rs 462-487 per share for its Initial public offering (IPO) of Rs 5,235 crore. The problem registration opens on 11 May and closes on May 13th.
So read | ETtech IPO Watch: a decade of Delhivery
Delayed and downsized: Delhi demanded a lot of its IPO last November and planned to launch it in March, but delayed offering due to unstable market conditions.
The company also reduced the size of the offer from Rs 7,460 crore to Rs 5,235 crore.
What’s the plan? The company wants to double expansion into India through organic and inorganic investments, its executive director and chief business officer Sandeep Barasia told us.
“Today, at Rs 5,000 crore in revenue for the first nine months of fiscal year 22, we are still less than half the $ 300 billion market opportunity we have,” he said.
Delhi plans to use Rs 2,000 crore from the IPO for organic expansion and another Rs 1,000 crore for inorganic growth through acquisitions and other initiatives. The rest of the proceeds will go to general business purposes, he said.
IPO Details: Delhivery will issue new shares worth Rs 4,000 crore, while existing shareholders and promoters will download shares worth Rs 1,235 crore into the offering for sale (OFS) component.
- The company has awarded shares worth Rs 20 crore to eligible employees who will receive a discount of Rs 25 per share during the bidding process.
- Investors will be able to bid for shares in multiples of 30.
Unicorn Edtech Vedantu fires 200 employees in a drought
Online tutoring platform Vedantu is the latest startup to cut staff in an effort to reduce costs as late-stage funding runs out.
The company laid off approximately 120 contract employees and 80 full-time employees. Almost all of them came from the company’s academic teams, who worked as assistant teachers.
Cut costs by all means: The company recently reduced the cost of its courses to manage the declining demand for online education with the reopening of offline learning centers.
It is also leveraging technology to reduce overall costs, which is also one of the reasons for the restructuring exercise, the company said.
Layoff Season: On April 28, we reported that more than 1,800 full-time and contract employees have been fired by various startups when investors start asking high-growth companies to go back to basics, chasing profits and reducing their money consumption. Companies that have laid off employees in the past month include:
- Unacademy edtech company
- Social commerce startups Meesho and Trell
- Lido Learning online educational platform
- Furlenco, a mobile rental startup
And there’s more: As investors step up their diligence in an environment of softening public market valuations, many late-stage rounds have been delayed, increasing the pressure on late-stage companies to reduce their burn rate.
Industry insiders have said that if these startups fail to raise new rounds, there could be more layoffs on the horizon.
Tweet of the day
Arun Sirdeshmukh, CEO of Ola Cars, resigns
Arun Sirdeshmukh, CEO of Ola Cars, he resigned, according to multiple sources familiar with the matter. Sirdeshmukh’s departure comes after the company’s chief financial officer, GR Arun Kumar, was promoted to a new position at the ride-hailing firm.
We have reported that of Kumar elevation on April 12th.
Quote: “Our Group CFO Arun Kumar GR now has an expanded role in managing day-to-day operations,” an Ola spokesperson said via email. This includes overseeing the go-to-market (GTM) function, which Sirdeshmukh headed, Ola said.
Times: His departure comes at a time when Ola has been looking to expand his business beyond ride-hailing, which still accounts for over 90% of his income. Ola Cars, Ola Foods, Ola Dash, and Ola Money are all ways to Ola aims to be a “super app” before its IPO.
ETtech Opinion: The way we evaluate startups needs to change
We all believe that successful financing is proof that everything is going well with a company. This needs to change.
There has been a lot of news lately about corporate governance issues in some high-profile startups. Social media is full of opinions about who is responsible for running the governance function. As the founder of Info Edge Sanjeev Bikchandani said, maintaining the highest degree of governance and transparency is the fundamental responsibility of the founders. In startups, the culture of the company is that of the founders.
Startups regularly raise venture capital. In addition to providing capital, VC firms also attribute their credentials to the company they invest in. In these times, the amount of money and the brand that invests in the company are seen as a measure of success on all metrics, including whether the company is well run.
Therefore, VCs must share the responsibility of ensuring good corporate governance in their companies, especially when many VCs position themselves as company builders and not just asset managers. By lending their names to unknown companies, they signal not only that the company has tremendous potential, but also that it has strong governance and transparency.
Musk raises $ 7.1 billion in new funding for Twitter
Elon Musk secured approximately $ 7.1 billion in new funding commitments for its proposed $ 44 billion acquisition of Twitter, garnering support from some of the world’s largest investors.
Search how? Investors cited in Thursday’s statement include cryptocurrency exchange Binance, Brookfield, Fidelity Management & Research, and Qatar Holding.
- Saudi Prince Alwaleed bin Talal, one of Twitter’s biggest supporters, has agreed to renew his current investment. He had previously turned down Musk’s offer, saying he didn’t come close to “the intrinsic value of Twitter”.
- Musk has also enlisted the support of fellow Oracle entrepreneur and co-founder Larry Ellison, who has a large stake in Tesla and a seat on its board of directors. Ellison’s Trust pledged $ 1 billion to finance the Musk acquisition.
Twitter courts advertisers: Meanwhile, Twitter had to confront a skeptical audience while showing its own advertising opportunities At an event in New York City, three advertising agency executives told Reuters that his plans under Musk remain unclear.
Tesla’s chief executive tweeted that the platform should have no ads so it can have more control over its content moderation policies.
Most advertisers haven’t pulled ad dollars off Twitter, but are watching closely to see how Musk could change the platform and his business, advertising executives said.
Today’s ETtech Top 5 newsletter was edited by Arun Padmanabhan in New Delhi and Zaheer Merchant in Mumbai. Graphics and illustrations by Rahul Awasthi.