Valuation Newsletter covers important valuation news regarding fund raise, M&A or valuation along with our insights on the news.
Our Coverage in this edition
DREAM SPORTS ON DREAM RIDE TOWARDS DECACORN VALUATION
Fantasy sport unicorn Dream Sports, the leading sports tech company with brands such as Dream11, Dream Capital, FanCode, DreamSetGo, Dream Game Studios, and DreamPay in its portfolio, has announced the completion of an investment of $840 million. At $8 billion valuation, the latest funding round is led by Falcon Edge, DST Global, D1 Capital, Redbird Capital and Tiger Global. Existing investors like TPG and Footpath Ventures also participated in the latest funding round, bringing Dream Sports closer to decacorn valuations. Dream Sports is India’s leading sports technology company which is executing its vision of ‘Make Sports Better’ by providing multiple fan engagement avenues like fantasy sports, content, commerce, experiences, merchandising and events, among others.
Read more at: https://yourstory.com/2021/11/dream-sports-ride-towards-decacorn-valuation
FinVal Analysis
The company had reported its revenues for the financial year 2020 as Rs 2,130 crore, a 166 per cent jump since the last financial year & a profit of Rs 181 crore in FY2020. This makes it one of the few Indian consumer-tech unicorns to have turned profitable. It had recorded a loss of Rs 87.8 crore in FY2019. There was a 236 per cent increase in the company’s net profit from the last financial year. The company’s total expenses for the fiscal were reported as Rs 1,868 crore compared to Rs 934 crore the previous year. The Indian fantasy sports industry is slated to touch $2.5 billion in 2022. The industry is growing at a CAGR of 32% and is expected to be worth $3.7 billion by 2024. With a user base of around 90 million in 2019, according to a study by the Federation of Indian Fantasy Sports in collaboration with KPMG, the fantasy sports industry is now generating revenues that nobody would have imagined in the Super Selector era.
2021: THE YEAR OF INDIAN UNICORNS
The Indian startup ecosystem is on fire, and for a reason worth cheering. A whopping 38 startups have already made it to the list within 11 months of 2021. It’s raining unicorns in India amid an unprecedented funding spree for Indian startups across sectors. 38 Indian startups have already made it to the unicorn club. Well over $32 Bn has been raised till September this year, with several of the rounds producing Indian unicorns in 2021. Unicorn is a term used in the venture capital industry to describe a privately held startup company with a value of over $1 billion. The unicorn story of 2021 is the one with many firsts, as the ecosystem witnessed the entry of the first healthtech, social commerce, epharmacy unicorns. The total count of Indian tech startups that have entered the unicorn club to date stands 80. At this rate, India will manage to get more than 100 unicorns by 2022.
Read more at: https://inc42.com/buzz/indian-startups-that-entered-the-unicorn-club-in-2021-in-india/
FinVal Analysis
2021 is many things to many people. For Indian startup entrepreneurs, it’s the year that brought unprecedented amounts of capital, investor interest, growth opportunities, and IPO ambitions. The local startup community sizzled throughout the year as unicorns kept popping up, one after another, on the back of fat checks and expensive valuations. 38 unicorns have been created in India in the first 11 months this year, and the number is expected to climb. While work from home during Covid, fueled the growth of digital businesses in India, the incident also resulted in a long unicorn list. Mainly three factors, a thriving digital payments ecosystem, large smartphone user base and digital-first business models, have come together to attract investors. Tech companies, which have become household brands, are contributing to the unicorn boom in India, as smartphone penetration and digitization of commerce in every aspect of life have increased manifold during the pandemic. Besides fintech, e-commerce grocery, SaaS and marketplace players are contributing the most to the unicorn universe.
SPINNY RAISES $248M, TURNS UNICORN
Used car marketplace Spinny has raised Rs 1,849.45 crore ($248 million approximately) from returning and new investors as part of its Series E round, according to filings made with the Registrar of Companies. The Gurugram-based startup, now valued at $1.7 billion, has now become the 39th unicorn. The round was co-led by Abu Dhabi Growth Fund and returning investor, Tiger Global, which invested nearly Rs 740 crore each in the round. Other investors in the round include Avenir Growth and Arena Holdings, which invested Rs 185 crore each. Spinny is a used car buying platform enabling trustworthy and hassle-free transactions. The company has raised a total of $510.5M in funding over 7 rounds.
Read more at: https://yourstory.com/2021/11/funding-spinny-raises-248-million-turns-unicorn
FinVal Analysis
Spinny has become the fourth automobile industry’s startup to turn unicorn from the used car space. Presently, Cars24, CarDekho and Droom had entered the elite club of unicorns. The company has entered the likes of OfBusiness and Apna, which have raised three rounds in the continuous calendar year. The India used car market was valued at USD 27 billion in 2020, and it is expected to reach USD 50 billion by 2026, registering a CAGR of 15% during the forecast period, 2021-2026. The COVID-19 pandemic had a minimal impact on the industry. With the increased number of people preferring individual mobility and more finance options infused into the used car market, the market is set to grow considerably. Reduced cash inflow due to the pandemic has forced buyers to look for alternatives other than new cars, and the used car industry has great growth potential in these terms.
CRED FORAYS INTO CORPORATE FINANCE MANAGEMENT, TO ACQUIRE HAPPAY
CRED on 1st December, 2021 said they are acquiring business expense management startup Happay in a cash and stock deal that would potentially value the fintech startup at $180 million, as part of its foray into the enterprise expends space. The deal will help CRED tap the growing business expenses management market, which has lately been seeing a lot of activity in the aftermath of the COVID-19 crisis. Enterprise fintech companies have been instrumental in not only helping businesses keep a closer eye on their spending, but centralising business credit cards as well. Happay will operate as a separate entity within the CRED ecosystem.
Read More at: https://yourstory.com/2021/12/kunal-shah-led-cred-to-acquire-corporate-expense-management-startup-happay
FinVal Analysis
While Happay is yet to file its annual financial statement for FY21, the company’s operating revenue grew 49% to Rs 37.55 crore in FY20 from Rs 25.12 crore in FY19. During FY20, its losses surged 95% to Rs 49.20 crore. Happay guarantees compliance and visibility with an end-to-end audit trail, allowing it to create a strong proposition in a contactless, paperless finance landscape. Happay also offers a software framework and an in-house payment engine, which will strengthen CRED members’ card management experience. CRED members will be able to manage their personal expenses, while Happay’s credit card customers will be integrated under CRED’s banner as a result of the acquisition. As per ResearchAndMarkets.com, the Workforce Management Software Market is expected to reach US$ 10.64 Bn by 2027 from US$ 6.28 Bn in 2020, growing with a CAGR of 7.82% during 2020-2027.
ECOMMERCE STARTUP SNAPDEAL EYES $250 MN IPO AT $1.5 BN VALUATION; TO FILE DRHP IN DEC 2021
With plans to file its draft red herring prospectus (DRHP) in December 2021, e-commerce giant Snapdeal now joins the lists of startups such as hospitality unicorn OYO, cab-hailing service Ola and Walmart-owned Flipkart, who plan to go public next year. Snapdeal is reportedly eyeing a $250 Mn IPO with plans to catapult the startup’s valuation to $1.5 Billion. The Delhi NCR-based ecommerce marketplace has reportedly also appointed Bank of America, Axis Bank and JM Financial for the listing. The move comes months after it was speculated that Snapdeal would move for a $400 Mn IPO at a valuation of $2.5 Billion. The company has raised a total of $1.8 Billion in funding over 14 rounds.
Read More at: https://inc42.com/buzz/ecommerce-startup-snapdeal-eyes-250-mn-ipo-at-1-5-bn-valuation-to-file-drhp-in-dec-2021/
FinVal Analysis
The company’s consolidated revenue from operations grew marginally to Rs 846.4 crore in FY20 from Rs 839.4 crore in FY19. Losses grew 47% from $25.5 Million (INR 186 Cr) in FY19 to $37.5 Million (INR 274) Cr in FY20. Snapdeal, founded in 2010, had emerged as one of the country’s leading e-commerce providers, but lost ground to its larger rivals. In 2017, it backed away from a potential merger with Flipkart that would have united the two local-e-commerce companies against Amazon, a deal that SoftBank had been pushing for. E-commerce has transformed the way business is done in India. The Indian E-commerce market is expected to grow to US$ 111.40 billion by 2025 from US$ 46.2 billion as of 2020. By 2030, it is expected to reach US$ 350 billion.
