We have seen a major decline in startup funding in the past few weeks. However, this week saw a significant rise in the total funding and startup raised.

The current week comes with many unexpected things such as Indian Startups that have raised over $130 Mn this week compared to $ 228 Mn in the last week i.e (Before 16 August - 21 August).

With over 27 funding rounds, the biggest round raised was by Skit, earlier known as Vernacular.ai which secured $23 Mn in series B round.

D2C health brand Soothe Healthcare just finished its Series C round and raised $ 13.6 Million to improve its growth plans and domestic manufacturing.

Also, Mumbai based fraud detection startup company IDfy has managed to raise a capital of $ 12 Mn through TransUnion International and Blume Ventures.

Mobile e-commerce company Bikayi raised $ 10.8 Million in series A funding by Sequoia capital India in order to increase product development, talent hiring and acquisition.

Out of all the 27 IPO deals, most investments have come into the following categories: enterprise tech, fintech and eCommerce sectors.

Here, we have mentioned all the funding rounds disclosed this week:

Startup Sector Sub sector Funding InvestorsSkit (Vernacular.ai)Enterprise TechSaaS$ 23 MnWestBridge Capital, Kalakari Capital & moreSoothe HealthcareHealth TechPersonal Hygiene$ 13.6 MnGulf islamic investment, Northern Arc, IncredIDfyEnterprise TechHR Tech$ 12 MnTransunion international, Blume VenturesBikayiEcommerceEcommerce Enablers$ 10.8 MnSequoiaSugar.fitHealth TechFitness & Wellness$ 10 MnCult.fit, Endiya Partners, Tangline Venture PartnersApps For BharatMedia & EntertainmentSpiritual$ 10 MnElevation capital, Saurabh Gupta, Ankur Sachdeva, Farid Ahsan, Kunal Shah and more.SkepsFintechEnterprise Tech$ 9.5 MillionBertelsmann India Investments, AccelDezervFintechInvestment Tech$ 7 MillionElevation Capital, Matrix Partners India, Kunal Shah, Ramakant Sharma, Ashish Mohapatra, Vidit Atreya, Anurag Sinha and more.OTOFintechLeading Tech$ 6 MnMatrix Partners India, Prime Venture Partners, Better Capital, Ramakant Sharma and moreApp JarFintechInvestment Tech$ 4.5 MnTribe Capital, Akram ventures, WEH Ventures and moreREVOSTransport techEV Charging$ 4 MillionUnion Square Ventures, Prime Venture PartnersBumberryE-commerceD2C$ 3.04 MnThe Chennai Angels, Konglo, Kerala AngelsMagicpinEnterprise TechSaaS$ 3 MillionRitesh Agarwal, Lightspeed, The Bunting FamilyRattleEnterprise TechSaas$ 2.8 MillionLightspeed, Sequoia Capital India, Ellen Lavy, Krish and RamanElevarEcommerceD2C$ 2.6 MillionKalaari Capital, Dream Capital1BridgeEcommerceRural Ecommerce$ 2.5 MillionC4D Partners, KAAJ Ventures and moreMy Classroom FoundationEdtechFoundation Courses$ 1.5 MillionPrem PrakashmoneyHOPFintechNeobank$ 1.25 MillionUndisclosedCondigalEdtechSkill Development$ 1.2 MillionY Combinator, Summer Capital, Nate Lipscomb, Peter Weck and moreAltiusFintechInvestment Tech$ 821 KUndisclosedPeppermintEnterprise TechSaaS$ 684 KVenture Catalysts, Indian Angel Network, Vinners Group and moreHabbitEdtechSkill Development$ 320 KAshok Goyal, Sanjeev Goenka, Kunal Ojha and more.Powerhouse 91EcommerceEcommerce EnablersUndisclosedFJ Labs, Ryan Gnesin, Sujay Tyle, Haresh Chawla and more.KraftInnEcommerceD2CUndisclosedNEDFi Venture CapitalSecLogicEnterprise techCyber SecurityUndisclosedIndia AcceleratorSynergyXHealth TechEnterprise ServicesUndisclosedAsha TripathiTealfeedMedia & EntertainmentKnowledge SharingUndisclosedAh! Ventures

Other Startup Deals

Startup Files for DRHP Startups Going for IPO Startups M&A this Week MapmyIndiaSnapdealBillDeskNykaaOlaJustdial – Acquired by RelianceMobiwikOYO RoomsThe Better Home – Acquired by GLobal BeesPaytmFlipkartCoding Elements- Acquired by Scalar Academy-Nykaa

Startups Already file DRHP with SEBI

MapmyIndia

MapmyIndia has recently filed its DRHP i.e. draft red herring prospectus with SEBI. As per news sources, the startup wants to go public by selling 7,547,959 equity shares to raise funds.

In the IPO, MapmyIndia’s executive director Rashmi Verma will be uploading (approve) 3,070,033 shares. MapmyIndia’s early backer Qualcomm is seeking to sell 2,026,055 equity shares.

Start-Up Going for IPO

Snapdeal is All Set to Raise $ 400 Mn IPO

Soon, Snapdeal files for an SME-IPO which could raise a capital of $ 400 Mn. The Softbank backed eCommerce site is seeking its first listing on the Bombay Stock Exchange with a valuation of $ 2.5 Billion.

Apart from Snapdeal, there are other startups too who are planning to go public next year.

These startups are: Olacabs, OYO rooms, and Walmart owned company Flipkart.

Ola offers Citigroup and Kotak Mahindra to Manage its IPO

Ridesharing company Ola has selected Citigroup and Kotak Mahindra to manage its IPO, which is going to happen next year. Also, Ola has hired an investment bank, Morgan Stanley, for its speculated $1 Billion IPO.

Soon Ola will file DRHP with SEBI before the end of the year. In August, Ola’s founder Bhavish Agarwal had mentioned ola’s plan to go public for the next year, followed by a public listing.

US- Based T Rowe Marks up Paytm’s Share by 16% and Above

T Rowe; an investment giant which invested in Paytm in 2019, has decided to raise the share price of the company by 16% or more from the original price it paid during its investment.

In June 2021, at least two mutual funds priced at $ 295 compared to the original $ 254 (complete the sentence) This is an increase of approximately 57% in the company valuation services as compared to the previous year where the shares were marked to $ 188.

Startups M&A This Week

PayU Acquires BillDesk For $4.7 Billion

This is going to be the biggest fintech deal where Prosus, the parent company of Fintech startup PayU has acquired Indian payment gateway company BillDesk for $4.7 Billion.

This deal allows both payU and Billdesk to own a wide market share in the online payments and billing providers and become one of the biggest online payment industries.

It may be noted that Billdesk will be the fourth major acquisition by PayU post-Wimbay, Paysense and CitrusPay.

Global Bees Acquire D2C Home Care Brand: The Better Home

Firstcry’s Global Bees has acquired sustainable home care product company The Better Home, which began as a content platform The Better India. Soon, the core team of Better India will join Globalbees and start working as per the prevailing product roadmap.

Reliance Acquires India’s Biggest Local Search Engine Company Justdial

Reliance Retail has now become the largest shareholder and takes sole control of Just Dial by purchasing a 40.98% stake in the company.

Justdial allotted 2.12 Crore equity shares of INR 10 each at INR 1022.25 per share on September 1.

This represents 25.35% of the post preferential issue paid-up share capital of Justdial to Reliance Retail.

Scaler Academy Acquires Coding Elements for $1 Mn

Interviewbit, now known as Scaler academy is an upskilling platform that has acquired edtech platform coding elements in a full cash deal which is worth $1Mn. Both the companies have been in talk post Scaler ventured into data science and machine learning process.

Takeaway

Startups play an important role in making the country self-dependent. They are the primary element of a country’s growth story. Startups not only upgrade a country’s economy but also uplift and benefit society at large.

As the economy, India now becomes the most favorite investment destination for FIIs. The primary thing that has initiated India’s growth in terms of a startup is its digital adoption, improved stock market listings and growing infrastructure. In this blog, we have mentioned all the major startups that have raised over $ 130 Million this week.

COVID 19 has increased the use of digital technologies which turned out well for the IT sector. If we talk about the pharma sector, there has been a much increase in the pharma stocks as investors focus shifted to COVID 19 related opportunities.

Till December 2020, many things have changed as many SMEs faced a huge decline in their growth. Also, top-notch companies have gone through crises that can’t be ignored.

In such a deeply problematic situation, one thing that performs exceptionally well during a financial and economic crisis in Indian Stock Markets.

The Nifty 50 index has experienced a remarkable recovery from its all-time lows in March. At the beginning of January 2021, the index had risen to 14%.

If you look at the top ten stocks that have generated outstanding stock market trading returns in 2020, it's none other than IT and Pharma companies that have emerged as the largest stocks.

In 2021, stocks of pharma companies remain on the top yet best-performing sectors in the Indian stock market.

In addition to this, the importance of pharma companies has been rising continuously as the demand for medicines, immunity boosters, and life-saving drugs take superiority to save lives.

Further, as the news of the third wave of COVID has come out, the people of India again keep their eyes on the pharma sector to save the country from the upcoming disaster.

Few companies have benefited from the vaccination drive.

1. Cadila Healthcare (Zydus Cadila)

Cadila Healthcare, popularly known as Zydus Cadila, is a leading pharmaceutical company headquartered in Ahmedabad.

India primarily engaged in the manufacture of generic drugs and the company is ranked 100th in the Fortune India 500 list in 2020.

Cadila Healthcare has produced the first vaccine called ZyCoV-D, built on a DNA platform.

Also, it has received a EUA (Emergency Use Authorization) from regulators. As per the sources, ZyCoV-D is considered India’s second home-grown vaccine post-Covaxin. The vaccine has come in 3 doses with a success rate of 66.6%.

In the June quarter of 2021, Cadila Healthcare witnessed a rise of 29.3% net profit Year on Year. Also, the huge demand for the vaccines made outstanding sales in the Indian market as it has witnessed a revenue increase of 14.5% year on year.

2. Cipla

Introduction:

Cipla Limited is an Indian multinational pharmaceutical company, known for manufacturing medicines to treat depression, respiratory diseases, cardiovascular diseases, arthritis, weight control and other medicinal conditions.

Furthermore, the Drugs Controller General of India has given a go-ahead signal to import India’s Moderna’s Covid 19 vaccine.

The success rate of Moderna’s vaccine is 94.1%. It will be imported in ready to use form. As per the prescription, the vaccine can be stored for seven months, however, if a vial is opened, it can be used for a maximum of 30 days.

As of June 2021, Cipla witnessed a sharp rise of 24% in net profits Year on Year. Furthermore, the revenue also saw a massive increase of 27% year on year. The figures for profit have clearly shown that the Cipla has benefitted from the impact of the second wave of Covid-19.

3. Dr Reddy’s Laboratories

Introduction:

Dr Reddy’s Laboratories is an Indian multinational pharmaceutical company. Headquartered in Hyderabad, the company is committed to providing affordable and innovative medicines for normal people.

Dr Reddy’s Laboratories entered into a partnership with the Russian Direct Investment Fund and produced a vaccine called Sputnik V. According to sources, the vaccine has marked a success rate of 91.6%.

From September 2021 onwards, the company is likely to begin the production of this vaccine. However, the company saw a slight decline in operating profits in June 2021. Profits declined 13% year on year as there was a marginal slump in the profits of Rs 5.7 billion.

4. Panacea Biotec

Introduction:

Panacea Biotec is a pharmaceutical company and vaccine maker company registered in India. With principal offices in Delhi, Mumbai, the company got listed in 1995 as Panacea Biotec.

The company has tied with Dr Reddy’s Laboratories, Human Vaccine and Generium to produce nearly 25 million doses of Sputnik V. In other words, it acts as an intermediary between Generium and Dr Reddy’s Laboratories.

Panacea purchases the products from the company Generium prepares vaccines and distributes them to Dr Reddy for the overall supply within the country.

Even though the company manufactures vaccines, it also suffers from losses. In June 2021, the net loss observed for Panacea is $ 574 Million. Unfortunately, the revenue is still flat for the company.

5. Wockhardt

Introduction:

Wockhardt Limited is a pharmaceutical and biotechnology company that manufactures biopharmaceuticals, nutrition products, formulations, active pharmaceutical ingredients and more.

Headquartered in Mumbai, the company has manufacturing plants in India, UK, Ireland, France, the US, Ireland and France.

Besides panacea, Wockhardt is the next company that is responsible for the supply of Sputnik V and Sputnik Light vaccines. The deal had taken place among three companies: i.e. Wockhardt, Enso Healthcare and Human Vaccine LLC.

Human Vaccine LLC is a subsidiary of the Russian Direct Investment Fund. Wockhardt is likely to supply nearly 600 million doses of vaccine Sputnik V and Sputnik Light Vaccines.

In the June 2021 quarter, the company received 3 patents and currently holds 766 patents. However, the company also faced a huge loss of Rs 65.8 billion for the first quarter.

Takeaway

The pharma stocks stated above are likely to benefit from the vaccination drives. Hence, it is essential to figure out how much time is left for the vaccination approval. Some companies already have their vaccines out in the market, while few just started their manufacturer setup.

Also, check out the companies that have completed all the clearances required by the regulators. Select those companies’ stocks whose products are being prepared or ready to release in the future. It will be a more profitable long-term plan.

About the Company

Paras Defence is India's sole Infrared Optics producer. It is a leading private sector company in India engaged in designing, manufacturing, developing, and testing defence and space engineering products and solutions.

The company has five major product category offerings - Defence & Space Optics, Defence Electronics, Heavy Engineering, Electromagnetic Pulse Protection Solutions, and Niche Technologies.

The Tier 2 defence engineering firm is one of the most advanced and offers a large number of defence goods and solutions. They have an excellent client base with names such as ISRO, Bharat Dynamics, HAL, TCS, Tata Power and others.

About the IPO

The first public offering (SME IPO) for Paras Defense and Space Technologies will all begin next week from 21 September to 23 September. The IPO's size concerns Rs.170 crore including Rs.140 crore fresh and Offering for Sale (OFS) of Rs.30 crore.

Paras Defence IPO details

Subscription Dates21 – 23 September 2021Price BandINR165 – 175 per shareFresh issueINR140.6 croreOffer For Sale1,724,490 shares (INR28.45 – INR30.18 crore)Total IPO sizeINR169.05 – 170.78 croreMinimum bid (lot size)85 sharesFace Value INR10 per shareRetail Allocation35%Listing OnNSE, BSE

Objectives:

• Requirements for capital spending of the Fund.
• Incremental financing requirements for working capital.
• Corporate general objectives.
• Repayment or advance payment of all or part of some of the company's existing borrowing or loan arrangements.

Allocation

This SME IPO shows that the QIB part is 50 per cent reserved, while the Retail portion is reserved at 35 per cent. on the other hand, 15% of the NII component is retained.

IPO Strength

• They are one of the few players in high-quality optics for space and defence application manufacture in India.
• Strong innovation-oriented R&D capabilities
• They are in a good position to take advantage of "Atmanirbhar Bharat" and "Make in India" initiatives.
• Wide range of products and solutions for both defence applications

IPO Risk

• Due to loss, shutdown or slowdown in business activities, their firm and operating performance and financial performance may suffer substantially.
• A small number of customers make up a big amount of their company.
• Insufficient cash flows from their activities might have a significant and unfavorable influence on their operating capital needs.
• Their business is also dependent on contracts between the Government of India and related institutions such as government military enterprises and state research agencies. A reduction in orders, Indian defence and space budget

Financial Highlights:

For the six months ending on 30 September 2020, the firm has recorded overall revenues of Rs. 149.05 crore and Rs.37.94 crore. Consolidated PAT (profit after tax) in FY 2020 was Rs. 19.65 and for the six-month period ending 30 September 2020, it caused a loss in the amount of Rs. 14 lakh.

In 2021 the profit was Rs.15.79 crore compared with Rs.19.66 crore in 2020. In recent years the company has performed stably and will continue to do the same thing that will result in consistent business growth.

Recommendation

According to Swastika Investmart Analyst, eyeing the government's focus on the Space and Defense sector, it is expected that both the segments of the company are likely to be benefited. The "Make in India" campaign by the government to be self-reliant by 2027 will give a boost to the industry.

Since there are no listed players in the industry it is difficult to make an apple to apple comparison. The company is going to be listed in T2T-Segment.

The financials of the company has been mixed. However, in the long company may benefit from the initiatives by the government and is expected to perform well. The company has a strong order book and the IPO is priced at PE of 31x. Thus, we recommend a "Subscribe" rating to the IPO.

Bulls are taking a breather after a strong bull run but they are still in a mood to take forward the market towards a new milestone as there are no signs of weakness in the Indian markets.

There has been less participation from the institutional, which is leading to some consolidation in the market but in the last week, we saw there is decent buying in many quality midcaps and smallcap stocks beneath the flat headline indices.

Global Markets are also in a consolidation mood while Japanese markets are outperforming the developed markets.  Global cues will be a key tracker for market behavior as there are some macroeconomic data are lined up next week like China's industrial production, US inflation numbers.

China's industrial production data for August will be announced on 15 September 2021. The US will announce the inflation rate for August 14 September 2021. US Retail Sales for August will be announced on 16 September 2021.

On the domestic front,  The Wholesale price index (WPI) inflation for August 2021 is due on 14 September. After a muted or less than expected monsoon in August, the market will eye on September as the monsoon is picking up.

The dollar index is again cooling off after facing resistance at the 92.8 marks and if it continues to fall from here then we can again see FIIs' buying to pick up which may help headline indices to gain momentum for new highs. Rising COVID cases in many countries could be a challenge but the markets are ignoring it as of now because of liquidity and strong economic recovery.

In technical terms of the stock market trading, Nifty is in a strong bullish momentum but it ends last week with a small indecisive Doji candlestick formation.

Last week's high and low of 17436 and 17254  respectively will be important reference points where if Nifty starts to trade above 17436 levels then we can see levels of 17600/17750 in coming days while a move below 17254 can lead to some short term weakness where 17050/16900 will be the next support levels.

If we talk about bank nifty then it is still underperforming as investors have fintech companies as an alternative investment option to traditional banking business but it may catch up momentum soon.

It is consolidating above its 20-DMA of 36088 where 37000-37250 is an immediate resistance zone; above this, we can expect a move towards the 37700-38000 zone. On the downside, 36000 is strong support; below this, we can expect any weakness towards 35500/35000 levels. Open demat account with us and start your trading journey at an affordable brokerage rate.

India is currently the world's second-largest telecommunications market, with 1.16 billion subscribers, and has had rapid development over the previous decade. India's mobile economy is quickly developing and will contribute significantly to the country's Gross Domestic Product In 2019.

We can ascribe this growth to the government of India's liberal and reformist policies, as well as strong consumer demand, which has aided in the fast expansion of the Indian telecom sector. India overtook the United States as the second-largest market for app downloads.

Reliance Jio's entrance into the telecom market in 2016 sparked a price war among competitors vying for subscribers. The telecoms, on the other hand, have recently hiked rates.

As of September 2020

Telecom Subscriber Market Share Sept 2020

OperatorsSubscribers in MillionsMarket Share (Sep’20)JIO404.1235.3%Airtel326.6128.5%Vodafone-Idea295.4925.8%BSNL118.8910.4%Total1145.11100.0%

while as on 31 May 2021

The country's biggest telecom players include Jio, Vodafone Idea (Vi), Bharti Airtel, and the state-run BSNL. According to data from the Telecom Regulatory Authority of India, Jio has the greatest market share among wireless customers, with 36.15 per cent, followed by Airtel with 29.83 per cent and Vi with 23.83 per cent as of May 31st.

BSNL had a market share of 9.89 per cent, whereas MTNL had a market share of 0.028 per cent. 0.001% of the market was taken up by Reliance Communication.

Major Developments

1. Customer expenditure on telecom services grew 16.6% year over year in the first quarter of FY21, with nearly three-quarters of that spent on data services. Despite the COVID-19 interruption and the absence of access to offline recharges for a few weeks, consumer spending increased.
2. To provide consumers with a better digital experience, Vodafone Idea Ltd. (VIL) stated in March 2021 that the spectrum it had purchased in five circles will help it increase 4G coverage and capacity.
3. In December 2020, BSNL announced a breakthrough in satellite-based NB-IoT (Narrowband-Internet of Things) for fisherman, farmers, construction, mining, and logistics businesses, in collaboration with Skylotech India.
4. Jio Platforms Ltd. sold a 22.38 per cent interest in the company valued Rs 1.04 trillion (US$ 14.75 billion) to 10 worldwide investors over the course of eight weeks in June 2020, included Facebook, Silver Lake, Vista, and Genpact.
5. To encourage the adoption of ATSC standards in India so that broadcast services can be accessed via mobile devices the Advanced Television Systems Committee (ATSC) and the Telecommunications Standards Development Society of India (TSDSI) inked a contract in March 2021

The companies financial and operational profiles are resilient enough to respond to the industry's next phase of consolidation.