Singapore’s troubled business-to-business ecommerce startup, Zilingo, is looking to replace suspended CEO Ankiti Bose permanently. Sources tell us that the front-runner for his successor is Zilingo’s chief financial officer Ramesh Bafna, who previously held that position at Myntra.
Also in this letter: Finance minister advocates global crypto regulations Indian SaaS to achieve $116 billion in revenue by 2026: Report Lightspeed partner boosts three executions at level
Amidst investigation, former Myntra CFO to be new CEO of Zilingo
Multiple sources familiar with the matter said Zilingo’s chief financial officer Ramesh Bafna has emerged as one of the contenders to take over as the interim CEO of the company as its board is looking to remove suspended CEO Ankiti Bose.
Bafna, who most recently with Myntra as CFO and SVP, joined the Sequoia Capital-backed startup in March. Another person with knowledge of the talks said he has also been involved in the review of alleged financial irregularities at the firm.
His appointment has not been finalized yet, these people said.
tell me more: Sources tell us that a current senior employee or an investor-approved executive is likely to be Bose’s successor, even if the latest controversies have stalled its current funding talks.
“Any question of a change in management is speculative and premature at this stage,” a spokesman for Zilingo’s board said in an emailed statement.
Earlier, Bloomberg reported that the board was considering replacing Bose permanently. The company’s directors have been meeting regularly in recent days to debate the futures of Bose and Zilingo. Bose, who has been suspended till May 5, has put pressure on the board to clarify its position.
end of the road? Bose has denied any wrongdoing and has hired a lawyer to fight against the “witch hunt”. She is disillusioned with the struggles and begins to realize that she is unlikely to return as chief executive officer.
FM pitches for global crypto regulations to prevent money laundering, terror financing
Finance Minister Nirmala Sitaram has advocated a global framework to regulate crypto, identifying their use in money laundering and terror financing as the biggest risks for all countries.
Running news: Speaking at a discussion on “Money at a Crossroad” organized by the IMF in Washington DC, the minister said that no country can handle these issues alone.
Sitharaman said, “I think regulation using technology is the only answer. And it is not possible if any one country thinks it can handle it. It has to be across the board.”
FM on Crypto Tax: He said that India imposed a 30% tax on crypto assets to track those who transacted in them.
“How can we trace these transactions that were happening. After all these were electronic codes. So we wanted to be sure. So through that (30% tax) we would be able to know who was buying and Who is selling it?” said Sitaraman.
Read also: Government Plans Bill To Ban Private Cryptocurrency, RBI Allows Digital Coinage
Double whammy for Indian crypto: In addition to high taxes, crypto companies and investors have to contend with denial of services with banks and other payment providers.
On 18 April we reported that many crypto exchanges are facilitating peer-to-peer (P2P) deals, while some are accepting deposits directly from coin buyers to bypass restrictions imposed by banks and payment companies. Huh.
P2P Deals: In P2P transactions, the exchange shares the seller’s bank account details with the buyer after receiving the order. The buyer then transfers funds directly to the seller using any regular online payment option, while the seller moves the cryptocurrency from their wallet to the buyer. Exchange only connects buyer and seller; Money doesn’t flow through it.
Direct Deposit: Alternatively, some exchanges receive funds from crypto buyers directly into their current accounts. Once money is sent, the amount is credited to the merchant’s account with the exchange, which can be used to buy crypto. The current account is usually in the name of the company that provides software solutions to crypto exchanges.
Indian SaaS to achieve $116 billion in revenue by 2026: Report
According to the latest report by venture capital firm Chirate, Indian software-as-a-service (SaaS) startups are expected to achieve total revenue of $116 billion by 2026, a compound annual growth rate (CAGR) of 55-70%. growing from. and Management Consulting Zinov.
Funding for the boom this year: Titled ‘India SaaS: Punching Through the Global Paying Order’, the report said that total funding for Indian SaaS startups is expected to reach $6.5 billion this year from $4 billion in 2021 – a growth of 62.5%.
The report said that the average size of investment in Indian SaaS increased from about $25 million in 2020 to $56 million in 2021.
It said there are currently over 1,150 active Indian SaaS companies.
Read also: SaaS space heats up with big deals at Chargebee, Innovaker as valuations climb
SaaS companies raised $2 billion in 93 deals in the first quarter of 2022, according to data from research platform Venture Intelligence.
Mature Area: In 2021, about 40% of the total funding invested in Indian SaaS was in growth in late-stage rounds, compared to only 15% between 2018 and 2020.
Read also: Indian SaaS market to grow 20 times to $50-70 billion by 2030: Report
Unicorn Factory: With investors continuing to support Indian SaaS startups for their projected revenue and growth results amid the global slowdown, the report said eight SaaS startups could become unicorns in 2022.
Read also: India to have over 250 unicorns by 2025: Report
Of the 14 startups that became unicorns in the first quarter of 2022, five were SaaS companies – HR software provider Darwinbox, analytics company Fractal, conversational automation startup Unifor, cloud broadcasting software company Amagi Media Labs and developer tools platform Hasura.
Read also: Wings to have 50 more unicorns: Report
Web3, next limit: As Web3 continues to capture investor interest, venture capital firms like Elevation and Accel bet big on the space, with the sector seeing a surge in SaaS innovation. The report said that Web3, data analytics, developer tools and security represent the next frontier for SaaS startups.
tweet of the day
Lightspeed promotes three executives, including two women, to the partner level
(From left) Shuvi Srivastava, Pin Logindakul, and Rahul Taneja
Shuvi Srivastava, Pin Logindakul, and Rahul Taneja have been promoted to partner roles on Lightspeed Venture Partners’ early-stage investment advisory team. Lightspeed Venture Partners has funded businesses such as Byju’s, ShareChat and Udaan.
New Appointments: Srivastava started in the fund in 2015 as an associate after moving back from the US, where he had set up a company. It has been instrumental in “identifying and accessing many exciting opportunities including Darwinbox, Uni, Pixel, Rattle, Bhanzoo and XFlow,” The company said in its blog post,
Lightspeed said Logindakul, which joined in 2020, helped set up its office in Singapore for the Southeast Asia exercise. Both Logindakul and Srivastava joined the fund along with Harsh Kumar, a third woman partner.
Read also: Lightspeed Venture Partners will turn its attention to growth deals
Lightspeed also said that Taneja, who had joined as a chief business officer, had been promoted to partner.
Partiality: Female leadership in venture capital (VC) funds is extremely low in investment firms, especially in large funds.
Other early-stage funds such as Elevation Capital have an all-male participation while Sequoia Capital India has a female Managing Director – Sakshi Chopra – in its Indian team.
ETtech Concluded Deals
insurance startup Horoscope has raised $25 million as part of a new funding round co-led by existing investors General Catalyst and Elevation Capital (formerly SAIF Partners). The company said it will use the new funding for sales growth, product development and strategic recruitment to enhance its new health assurance delivery model.
Collateral free Micro, Small and Medium Enterprises (MSME) loan provider Kinara Capital Ltd. said it closed a fresh equity round of Rs 380 crore with participation from Dutch microfinance fund ASN MicrocreditFunds, led by global investment manager Nuveen.
I Ricoor Technologies PteA Singapore-based financial platform, announced a $30 million fundraising in a combination of equity and debt from a group of Indian investors. The fintech startup operates in India through its Delhi-based subsidiary, Recour Club Technologies.
ETtech Opinion: Demystifying the Customer Acquisition Cost Enigma
At Matrix Partners India, we have been an early investor in multiple consumer internet businesses across Marketplace, Consumer Brands, EdTech, Media, Social, Gaming etc. A common problem we face today with most early stage consumer internet companies is ballooning customer acquisition cost (CAC) as shown in the chart below.
In such a scenario, especially when the days of ‘grow at all costs’ are behind us, founders and development teams often grapple with three main questions:
Why is the CAC blowing up the balloon?
What is the right CAC for my business?
What can I do about raising the CAC, especially as an early stage company?
While I’m no expert on the subject, I’m going to try to build my point of view based on some of our learnings at companies.
Why is the CAC blowing up the balloon? We would all like to believe that the CAC is on the rise due to a lot of competition and investors investing a lot of money in similar companies. While this is true, there are three underlying issues that are at the heart of the problem:
Products and services do not differ substantially in the view of the customer (for example, the failure of the mattress industry in the US).
The total addressable market is much smaller than what the company or investors might have initially thought (1-1 live class, arguably).
Digital-only channels for customer acquisition are ending sooner than we’d like to believe.
Today’s ETtech Top 5 newsletter was produced by Arun Padmanabhan in New Delhi and Zaheer Merchant in Mumbai. Graphics and illustrations by Rahul Awasthi.
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