So in this letter:
■ Cognizant aims to fully transition to hybrid work by early 2023
■ Unicorn Edtech Vedantu fires 200 employees
■ Arun Sirdeshmukh, CEO of Ola Cars, resigns
Not worried about short-term valuations, says Delhivery’s CEO
Sahil Barua, co-founder and CEO of Delhivery, which will launch its IPO on May 11, told us the company is not worried about short-term valuations because markets ultimately correctly value firms over the long term.
With a price range of Rs 462-Rs 487 per share, Delhivery is aiming for a $ 5 billion valuation for its IPO.
Forward plow: Delhi has long postponed its IPO and changed the size and prices as the markets became volatile. He is moving forward with the offer while many of his peers have chosen to wait.
Barua told us he followed his advice on the IPO. He said the company was moving forward because “a large, mature and well understood company” like Delhivery should be able to float its business under less-than-ideal conditions.
“(Delhivery) has reached a stage that gives us confidence. We have a mature business model. And we’re on track to reach $ 1 billion in revenue, “she said.
Barua also said that while the company relies on technology, logistics is an activity that public market investors understand well.
Quote: “If you look at large IPOs like DMart, it’s a stock that has never traded below its IPO price. I think this is the ambition we have. We want to value it in such a way that our investors earn a substantial amount of money and in the end there is very clear visibility into how the shares are made up, “added Barua, who owns 2.08% of the company and does not. will separate from no action in the IPO.
In the doldrums: New age companies like Zomato, Paytm, Nykaa, and Policybazaar took a leap forward on exchanges last year, but are now trading well below their IPO prices. The price of Paytm shares fell by more than 70% compared to the issue price.
Unicorn Edtech Vedantu fires 200 employees in a drought
Vedantu online tutoring platform 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 laid off from 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 a context 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.
Cognizant wants a complete switch to hybrid work by early 2023, says the India chief
Cognizant Technology Solutions plans to do this completely shift to a hybrid business model by early 2023 because it gives employees more flexibility, India’s President and CEO Rajesh Nambiar told us in an interview. Here are some edited excerpts:
What led to robust first quarter revenue growth?
This is our largest quarter ever in what obviously continues to be a very competitive global job market. For the first time, 50% of Cognizant’s revenue comes from digital (vertical). This is not only the result of the digital demand you see in the market, but also a strategic shift to digital, which is what we have foreseen.
Your operating margins appear to be under stress. Why is this?
I do not believe. We continue to stick with our guide on the sidelines. It may be slightly lower in sequence, but that’s only due to seasonality. That’s the first quarter margin … (and it is) because of wage inflation and this pressure on the market, but I think one of the few ways we’re going to tackle it is by ensuring the right level of pricing and operational efficiency.
ETtech business done
■ The agricultural and supply chain startup Absolute Foods has raised $ 100 million in recent funding rounds of Sequoia Capital India, Alpha Wave Global and Tiger Global, the company said. Absolute Foods said it is now worth $ 500 million.
■ Redcliffe Lifetech, a diagnostic platform, has raised $ 61 million in a round led by LeapFrog Investments, with the participation of Healthquad, Schroders, LC Nueva, Growth Spark Ventures and existing investors Chiratae Ventures and Alkemi Venture Partners. The company will use the capital to expand its geographic reach into Tier II and Tier III cities.
■ Flow Brands, an e-commerce rollup company, also claimed to have done so closed a $ 5 million fundraiser from a handful of investors. The round also saw the participation of Village Global, 9Unicorns, Venture Catalysts, LetsVenture, Shiprocket and several angelic investors.
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, Ols 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 for Ola to market itself as a “super app” ahead of its IPO.
India’s R&D team is central to our service and fossil-free goals: Volvo CTO
The Volvo Group’s research and development team in India will play a key role in the Swedish auto giant’s goal of becoming fossil-free by 2040, its Chief Technology Officer told us.
The Bengaluru team also wants help double the share of revenues from services and solutions by the end of the decade, said Lars Stenqvist, Volvo Group CTO.
Stenqvist, who is also the group’s executive vice president of truck technology, said the goal is to double its share of software and solutions revenue to 50 percent by 2030.
“Bengaluru is becoming an important part of the system which is working intertwined with other research and development centers globally. It is not a service center. We are giving more responsibility to the full delivery center for the different parts of the solutions we are using, such as testing, quality control and costing, ”said Stenqvist.
Other main stories from our reporters
India has the largest number of fact-checkers: India is the country with the the largest number of certified fact-checkers in the world, Irene Jay Liu, Head of News Lab for APAC at Google, said Thursday. She said this is in stark contrast to her when she started working with Google News Lab in 2017, when there were only two or three certified professional fact-checkers in the country.
Neobank Fi Marks Financial Services Foray With Mutual Funds: Neo-bank platform Fi is making a foray into financial services, launching products such as mutual fund investing, peer-to-peer (P2P) investing, and digital lending on its platform alongside other savings products. For starters, it will offer some index funds and eventually increase their number to 600, the company said at a virtual press conference on Thursday.
Global choices we are reading
■ If light bulbs are smarter, why haven’t sockets changed in over 140 years? (WSJ)
■ ‘I don’t really have a business plan’: how Elon Musk does it (NYT)
■ A teen sexually exploited on Snapchat confronts American technology (Washington Post)