Akash Rathi

#SaaSeries2: Freshworks Q2 FY24 Results. Here are the key highlights: - Total customers in Q2 FY24 grew by 4% to 68.8K YOY. - Customers with ARR >USD 5K grew by 14% YOY, accounting for 90% of the ARR. - Customers with ARR > USD 50K grew by 30% YOY, making up 50% of the ARR. In terms of key metrics: - Revenue saw a 20% growth to 174 Mn in Q2 FY24, with the US market contributing 45%. The growth was also driven by acquisition of Device42 signaling the saturation in US market for key offerings. - Net Dollar Retention stands at 106%. - #ACV is at #USD10K, while the gross margin remains high at 85%. - #FCF USD 32.8 Mn in Q2 FY 24 Few observations: 1) The #Enterprise segment is the fastest-growing, maintaining its trend QoQ. 2) The #SMB segment, constituting ~10%, is critical for expansion despite being the least growing segment. Special focus areas include #GenAI solutions like #Freddycopilot and #Freshchat, with a 40% attachment rate, aimed at enhancing #agentproductivity. #SaaS #GenAI #Freshworks #SaaSUnicorn #AIagents #AIAssistants #conversationintelligence #venturecapital #privateequity #investments

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Zepto entering BNPL. I generally hate how startups see lending as a go-to strategy for growth - whether it is B2B marketplaces / manufacturing aggregators to Quick commerce (especially given the organic growth happening). I often wonder if it really enables true demand or ends up unduly inflating it only to bring it all down during downturns. But, in this case, I slightly differ. Consumers have historically enjoyed extended monthly settlements from their local grocers - remember, hisaab me likh lena! BNPL for Zepto eliminates another friction for customers in buying grocery online.

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🚨 Making of a billion-dollar exit 💰 Accel has sold shares worth over $300 mn in Freshworks over the last 12 months, according to research done by The Arc The VC firm had not sold any shares during the IPO in 2021. It still holds over 13% stake in the Nasdaq-listed company 👨‍💻 The returns on this will be a multi-bagger for Accel 🤑 Series A entry price - $0.05 a share Current price - $18.44 a share Accel's average price increased as it participated in follow-up rounds. More 👇 #venturecapital #software #saas #freshworks #accel #vc #exits #returns https://lnkd.in/g65TbjGR

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Co-lead a workshop (with Sumathi my business partner and Komal lath of Tute Consult) on branding and communication and why/how its' strategic & important for the portfolio companies of an early stage growth focused PE fund in Mumbai this noon. very interactive session. lots of takeaways. one of the biggest benefits of doing such workshops with founders and CXOs of growth companies is that you get to first hand understand their pain points and priorities. which makes you realize there is a long road ahead laden with great opportunity for those in PR & comms if we take off our hats and look at it from their perspective.

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Buying gold / silver coins on the auspicious occasion of Akshaya Trithiya come under low frequency - low complexity purchase category. It is a seasonal product bought generally during specific occasions. Zepto Blinkit Swiggy lapped up this opportunity and started selling this with the benefit of quick delivery. No wonder the sales picked up quite well. I wonder how much would it have impacted the sales of larger eComm players. Sales trends from swiggy is already out. I am sure the trend will be similar for Zepto - Aadit Palicha and Blinkit - Albinder Dhindsa I detailed out this approach and more in my notes - https://lnkd.in/gBmvVKy2

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India’s Oyo, once valued at $10 billion, is finalizing new funding at a $2.5 billion valuation. This marks a steep decline from its $10 billion valuation in 2019. The startup, which has raised over $3 billion from backers like SoftBank, Peak XV Ventures, Lightspeed, Airbnb, and Microsoft, has struggled to attract institutional investors. In recent months, it has aggressively pitched to high-net-worth individuals after withdrawing its IPO application twice in the past four years. Once a red-hot Indian startup active in markets including the U.S. and Europe, Oyo has now scaled back its international presence. #venture #downround https://lnkd.in/gE2GjYnM

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{New pod 🎤} "𝐆𝐓𝐌 𝐋𝐞𝐚𝐫𝐧𝐢𝐧𝐠𝐬 𝐟𝐨𝐫 𝐔𝐒-𝐈𝐧𝐝𝐢𝐚 𝐁2𝐁 𝐒𝐚𝐚𝐒 𝐒𝐭𝐚𝐫𝐭𝐮𝐩𝐬" This episode explores GTM strategies and learnings for US-India B2B SaaS startups. We cover everything from finding design partners in the US, scoping MVPs, figuring out what ICP to focus on, navigating the unique challenges of early PMF, GTM hiring in the US, and finally, working towards creating M&A exit options. Joining me for this discussion is Satya Ganni, an experienced SaaS founder and operator who has successfully built and sold five companies and led two acquisitions as a buyer. He is currently serving as CEO of Beamer and Userflow. Beamer is developing a cutting-edge product-led growth toolkit tailored to product leaders at SaaS and digital-first companies. They recently acquired Userflow to augment the business. TIME STAMPS: (01:15) Satya’s journey as a repeat US-India SaaS founder and operator (04:38) [Case Study: 0-to-1] Finding US design partners (11:09) Scoping B2B SaaS MVPs (15:42) [Case Study: $10k-100k ARR] Identifying which ICP to focus on - SMB vs mid-market vs enterprise (22:23) [Case Study: $100k-$1Mn ARR] Navigating the unique challenges of early PMF (27:18) [Case Study: $1-5Mn ARR] Building a US leadership team post-PMF (34:33) [Case Study: $5-20Mn ARR] Working towards creating M&A exit options  (38:46) Learning to become a proactive relationship builder YouTube - https://lnkd.in/guGQeBwA Spotify - https://lnkd.in/gAg7XeF4 Apple Podcasts - https://lnkd.in/gkYEDpED An Operator's Blog - https://lnkd.in/ggGbzSKY

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Who would invest in founders who have wasted $50M? Koo, an Indian microblogging platform, recently shut shop after raising $50M in capital. Everyone has their views on why Koo failed. IMO, the biggest reason behind its failure was a lack of PMF (Product Market Fit). Koo spent much money on marketing and didn’t build a product people wanted. It kept harping on nationalism, a Twitter for Indians, made in #India. This approach failed. However, this doesn’t mean Koo’s founders aren’t smart or intelligent. I wrote in an earlier post that we shouldn’t be surprised if Koo’s founders raise fresh capital for a new startup. To many of us, this might seem grossly unfair. Millions of smart, hardworking founders are struggling to raise capital while investors are backing failed founders who have wasted millions of dollars. How is that fair? It confirms the widely held belief that the #venturecapital industry is broken and corrupt where a few people with the right connections get all the capital while others don’t see a dime. It shows that the VC industry is a closed group, a cabal where who you know matters more than anything. While these are just complaints, most people who criticise VCs don’t understand how startup investing works. VCs welcome failures. They embrace them because they know failures are inevitable. When VCs invest in 20 #startups, they know 15 will fail. The goal is to invest in startups that can give them a 100x return. Failures are part of the game. They are unavoidable. The aim is to back founders who can build such 100x return companies. Hence, failures are not looked down upon in the VC industry. It’s similar to the American culture where society appreciates the people who take risks, and it easily accepts personal bankruptcies that result from this risk-taking approach. There’s no taboo in failing in the USA and the VC industry. I’m sure Koo’s founders have learnt from their mistakes. It’s an expensive mistake and not everyone is so lucky to have this luxury to spend $50M on their education. ;) However, most VCs will back Koo’s #founders because these founders know how to raise capital and they know how to not build and scale tech companies. Their past failures have improved their chances of future success. In the VC industry, Failure is Good.

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Today marks an incredible milestone for us at Inflexor Ventures as we proudly announce the 𝐟𝐢𝐫𝐬𝐭 𝐜𝐥𝐨𝐬𝐞 𝐨𝐟 𝐨𝐮𝐫 ₹350 𝐂𝐫𝐨𝐫𝐞 𝐎𝐩𝐩𝐨𝐫𝐭𝐮𝐧𝐢𝐭𝐢𝐞𝐬 𝐅𝐮𝐧𝐝. This isn't just a number—it's a symbol of our steadfast commitment to empowering founders who are ready to amplify their proven potential and take their vision to new heights. In my journey from being an entrepreneur to a VC, I've witnessed firsthand the critical juncture where vision meets opportunity. The Opportunities Fund is designed to be that bridge—supporting visionary founders who have already proven their potential and are ready to scale further and faster. To all the founders who trust us with their stories and growth, thank you for your resilience and ambition. You inspire us daily to be more than just investors; you motivate us to be partners who champion your vision and share in the challenges and triumphs of building something extraordinary. Our heartfelt gratitude goes out to HDFC AMC Select AIF FoF I scheme and our other valued limited partners for their trust and belief in our mission. Your support fuels our drive to not just invest in ventures but to become true partners in the journey, championing innovation and resilience every step of the way. I also want to acknowledge my colleagues, whose dedication and expertise drive us forward, and the wider ecosystem that plays an essential role in making ventures thrive. This milestone wouldn’t be possible without each of you contributing to this vibrant network of progress. To the entrepreneurs who dare to dream, build, and inspire: your determination is why we do what we do. We are honored to walk alongside you in navigating the exhilarating journey of scale and impact. Here's to nurturing more stories of growth and innovation as we embark on this exciting chapter together. Venkat Vallabhaneni, Jatin Desai, Pratip Mazumdar, Murali Krishna Gunturu, Harsha Mundhada, Parmi Doshi, Aishwarya Kulkarni, Pratik Ahuja, Kirti Chaturvedi, Akhil Nehru, Minal Sequeira, CA Vijay Sundar A N https://lnkd.in/gJUHBZk6 #VentureCapital #Entrepreneurship #OpportunitiesFund #Innovation #Gratitude

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The BPC industry’s growth rate in India > the growth rate in the UK + USA + Germany combined!! It’s a massive segment but, it’s getting nuanced and competitive…. 6-7 years ago, if you told me that a customer in a tier 3 city of India would know what niacinamide or hyaluronic acid is - I’d be shocked. That’s the reality today. This industry has matured more in the last decade than in the previous 60 years since independence!  With a higher degree of consumer awareness than ever and 3000+ brands, India’s BPC market will be worth over $30 Bn by 2027! 💄 This is greater than the GDP of the entire country of Mauritius 🔥 In this market - E-commerce has been the driver of growth. It has worked because of the nature of the product - low volume, high value and strong gross margin (>80%). Sales via online will dominate growth and account 1/3rd of the entire segment. I’ve said this 10s of time now - market is getting more and more competitive. A cookie cutter approach and creating something for ‘everyone’ won’t work. Winner products will now be built in niches and micro markets. Think about this: 🛒 Gen Z face acne issues & prefer affordable & result-driven products 🛒 Millennials want products with long-term efficiency 🛒 Gen X and Boomers with wrinkles & fine lines look for simpler solutions This diversity opens doors for brands to innovate and disrupt by offering specialized value! As disruptive digital native brands have emerged we’ve seen the traditional BPC players also evolve. They’ve become savvy with social media, have in-house D2C teams and even develop e-commerce marketplace exclusive SKUs! As with most spaces in India - the growth will be driven from Bharat going forward. Last year during Nykaa’s Pink Friday Sale, 57% of sales were generated from tier 2 and 3 cities! What does the future look like? My predictions: ✅Growth will continue to be rapid  ✅Winner products will be more ‘Indianized’ in terms of size, pricing and offering as Bharat will dominate growth  ✅100 Cr+ brands will be built in micro niches that you haven’t even heard of yet  ✅Customers will become more fussy  What still remains a question for me is, will Indian brands go global? 🌍 What do you think? Any other BPC trends I’ve missed? #india #beautyandpersonalcare #fmcg #brands #startup

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Unicommerce IPO/listing is being closely tracked by Indian SaaS founders and investors alike. It’s perhaps the only SaaS listing after Tracxn in 2022. There are tens of Indian SaaS companies which are already at 100 Cr in ARR or have clear visibility to get there in a few years but aren’t growing fast (> 100% YoY). Most of them have India as the primary market. They always face questions on market size/TAM from early and growth stage investors for their ability to deliver large outcomes ($100M in ARR or more) within 7-8 years In US, there is no “exit path” for such founders/companies except waiting and selling to a strategic. However, in India, you could list at 100-200 Cr in ARR at a good 8-10x or higher ARR multiple and do well post listing if the co. is growing steadily at 30%+ CAGR with consistent improvement in profitability. There is dearth of listed SaaS companies in India vs a market like US where the bar for listing is way higher What does it mean for founders? A) Don’t raise too much capital otherwise not all shareholders would be aligned to this outcome if you decide to pursue it B) For founders who are at a similar scale of ~100 Cr in ARR or will get there soon while being profitable or with low burn, there is a choice between raising growth capital in private market or listing C) Think carefully about domiciling outside of India as the cost and effort of reversing it is very high if eventually you want to list the company in India

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Overall Funding Landscape: Total Raised: $5.3B, a slight 1.8% dip from H1 2023, but deal volume is up by 7%. Median Ticket Size: Down 8% YoY to $2.8M but a significant 87% increase from H2 2023. Indian Startup: The Shift in Funding Trends! The first half of 2024 has been quite a ride for Indian startups! I was reading this article early morning, and wanted to share this latest funding report. Debt Funding Surges: Debt investments have skyrocketed to $576M, more than double the $285M from H1 2023. Notable deals include GPS Renewables’ $50M, Bira 91’s $25M from Kirin Holdings, and Ola Electric’s $50M from Alteria Capital. Equity Investments Dip: On the flip side, equity funding took an 8% hit, dropping to $4.7B from $5.1B in the same period last year. and why this trend? Startups are increasingly turning to debt to fuel growth without diluting ownership—a smart move, especially for those gearing up for IPOs like Ola Electric and Mobikwik. The Bright Side: The future is promising for our startup ecosystem with a 15% sequential increase in deal volume and rising investor activity, particularly from venture debt firms like Stride Ventures, InnoVen Capital, and Trifecta Capital. My 2 cents: While these trends signal growth, we must remain vigilant about potential bubbles. Increased debt can be a double-edged sword—fueling expansion but also increasing financial risk. #Startups #Funding #DebtFunding #EquityInvestments #VentureCapital #Growth #Sustainability #IndianStartups #H12024

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My take on GPay's evolution in Indian Fintech Let's be real: waiting for Google Play Store reviews is maddening. Our app, Queo Health, has been stuck in review for a month, leaving our early adopters in limbo. But instead of just stewing, I decided to channel this frustration into something new and productive. While I am not a fintech expert, I have been building a foundation in understanding the next wave of innovations - particularly in fintech and climate tech. I have been reading the recent trends and technologies in Fintech and I took a deep dive into GPay's potential evolution in the Indian fintech space. Ironic, right? Exploring Google's fintech arm while their Play Store keeps us waiting. This also marks my 30th article I wrote in Linkedln. Key points I have covered: 1.GPay's transition from simple wallet  2.Opportunities in P2P lending and AI-driven credit assessment 3. How GPay could revolutionize services for SME merchants 4.Future trends: BNPL, Super Apps, and more I also have addressed 2 case studies besides looking at the market growth vs attractiveness, segment vs complexity and future opportunities. Case 1: Bridging Financial Inclusion and Premium Services - For the underbanked - Develop alternative credit scoring models using digital payment patterns, offer micro-savings options and provide customised credit offers based on individual payment behaviours. For premium customers - Offer advanced financial management tools and personalised advisory services, integrate concierge services and exclusive banking partnerships Case 2: Revolutionising Lending and Merchant Services - GPay can transform itself from a payment app into a comprehensive financial ecosystem by focusing on three key areas: Peer-to-Peer Lending: Create a marketplace for direct lending between users, bypassing traditional banking systems. This democratizes finance by providing alternative investment options for lenders and new credit avenues for underserved borrowers. Innovative Credit Assessment: Develop sophisticated AI algorithms to revolutionize credit assessment, especially for those lacking traditional credit histories. This data-driven approach can enable quick, paperless, and collateral-free loans, addressing a significant pain point for small businesses in India. Merchant-Focused Services: Develop a suite of services tailored for SMEs, including instant settlement of transactions, automated loan repayment systems, inventory management tools and financial analytics dashboards While I'm still waiting (impatiently) for that Play Store review, I believe in looking at the bigger picture. GPay's evolution could reshape our financial future, and that's worth discussing. Thoughts? How do you see GPay and other fintech players evolving in India? And hey Google, if you're reading this - a little faster on those app reviews would be great!

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I have seen this play out a lot - Investors evaluating D2C brands take feedback from friends and family which might not be the right thing to do because of 2 reasons -- 1. Negative bias kicks in. When you ask someone close how this product is, they aren’t thinking, “What’s good?” Instead their immediate thought is, “What’s bad?” This is a natural tendency—people tend to focus on what could be wrong instead of highlighting the positives. 2. The Target audience isn’t the same. Your friends and family probably aren’t the target customers of the startup. Real feedback comes from people who actually use the product and experience the problem it solves. Here is what you should do instead: ask the founder who their target customers are and talk to them for real feedback. Feedback from friends and family can create bias, as they’re not the real customers.

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What if you invested in Swiggy's first funding round? Back in February 2015, Swiggy raised $2 million in its Series A funding round by Accel & Elevation Capital (Formerly SAIF partners) with a post-money valuation of just $4.87 million. Fast forward to today, and Swiggy’s IPO is targeting a valuation of around $12.5 billion to $13.5 billion​. Here’s the math: - Investment in Series A (2015): ₹10 Lakh - Post-money valuation then: $4.87 million - Current valuation: $13.5 billion That ₹10 lakh investment from 2015 would now be worth roughly ₹36.5 Crore!

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🚨 US-based WeWork Inc is selling its 27% stake in its India joint venture after filing for bankruptcy WeWork India valuation - about $500 million 📈 WeWork US market cap - $6.4 million (post-bankruptcy filing) 📉 As The Arc first reported last year The latest deal is a win for all WeWork Global and Embassy Group will get some liquidity New investors - Enam family office, Caratlane's Mithun Sacheti & A91 Partners - are getting a good deal at attractive multiples because of the restructuring And what we need to watch out for is if Adam Neumann gets back control of WeWork Global. The last news was that he had bid $500 million for the company. https://lnkd.in/gGpaxdtD

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The Rise of India’s SaaS Market: A $70 Billion Opportunity by 2030 India’s SaaS (Software-as-a-Service) market is on a growth trajectory like never before, poised to become a $70 billion industry by 2030. 🚀 Let’s unpack what’s fueling this incredible expansion: 1️⃣ Global Leadership: India is home to over 1,600 SaaS companies, including 18 unicorns as of 2024, contributing significantly to the global SaaS ecosystem. 2️⃣ Exports Powering Growth: A whopping 75% of India’s SaaS revenue comes from international markets, making India a global SaaS powerhouse. 3️⃣ Funding Boom: Indian SaaS startups have raised $6 billion+ in funding since 2020, demonstrating strong investor confidence. 4️⃣ SMEs and Startups Driving Demand: With over 60 million MSMEs in India digitizing rapidly, the demand for affordable, scalable SaaS solutions is skyrocketing. 5️⃣ Employment Opportunities: By 2030, the SaaS sector is expected to generate over 1.5 million direct and indirect jobs, boosting India's economy and talent pool. 6️⃣ AI and Cloud Adoption: AI-driven SaaS products and cloud computing are transforming industries, with Indian companies leading innovations in vertical SaaS solutions for healthcare, finance, and education. India’s SaaS journey is not just a growth story; it’s a transformation story—reshaping how businesses operate globally. 🌍 As we look to 2030, it’s clear that Indian SaaS is not just solving problems; it’s setting benchmarks. 💡 Let’s hear from you: How do you see Indian SaaS evolving in the next few years? Share your insights below! #SaaS #IndianTech #StartupIndia #Innovation #DigitalTransformation

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🚀 Swiggy Set to Make Waves with ₹11,300 Crore IPO: Key Details and Market Implications 🌐 Swiggy, India's food delivery giant, is set to go public with an IPO launching on November 6, 2024, aiming to raise around ₹11,327 crore (~$1.35B). Shares will be priced at ₹371-₹390 each (around $4.64), with trading expected to start on November 13, 2024. IPO Highlights: Price Range: ₹371-₹390 per share Funds Allocation: Expanding logistics and quick commerce operations This IPO is launching amidst rising tech-driven competition in India’s market. By securing capital, Swiggy plans to advance its quick commerce capabilities, aiming to gain a strategic edge over competitors like Zomato. Market Impact: Swiggy’s IPO offers a unique investment opportunity with strong growth potential, balancing between established dominance in food delivery and quick commerce expansion. Investor Insight: With a grey market premium around ₹25, sentiment is optimistic. As Swiggy steps into the public sphere, it's poised to redefine India's fast-paced delivery ecosystem. #IPO #SwiggyIPO #Investment https://lnkd.in/eyHRRPXh

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Founder blows up $22bn edtech startup to zero. 0️⃣ Founder runs away and hides in Dubai. 🛩 👻 Founder blames investors. 😯 In this situation, what words other than f*%k come to your mind? 👇 👇 👇 I present to you Loot and Thug - today’s Indian origin words that are commonly used in the English language. This is the 4th weekly edition of such words. Please repost and share with your friends if you like this. Words from the last 3 weeks are at the bottom of this post. LOOT: The term loot is primarily derived from the Hindi word lūṭ, which means "booty" or "spoils of war." The Hindi term can be traced back to the Sanskrit words loptra meaning "booty" or luṇṭ which translates to "to rob" or "plunder". Loot can be used as a noun as in booty (not that booty), or as a verb to carry off or take something. The adoption of this word into English occurred when India was a British colony. The earliest recorded use of loot in English dates back to 1802, when it was defined in a military context as an "Indian term for plunder or pillage." By the 1920s, its figurative meaning had developed further within American English. An example of its use in modern slang is “stash the loot.” THUG: Originates from the Hindi word ṭhag meaning "swindler, thief, cheat" and is ultimately derived from the Sanskrit word sthaga meaning "cunning, fraudulent." The first use of the term goes back to the 14th century and referred to a gang or network of criminals operating around India’s main roads. The first recorded English use was in 1810 to refer to members of the Thuggee gang. Like loot the adoption of this word occurred when India was a British colony. In modern usage it typically refers to a violent criminal or bully. Prime Minister Margaret Thatcher of the UK used it to describe everyone from unruly football fans to people involved in race riots. The word thug actually rebounded in American popular culture, thanks in part to Indiana Jones and the Temple of Doom. It has also been adopted in hip-hop culture since the 1990s, sometimes with more positive connotations of resilience, like by Bone Thugs-N-Harmony. But it continues to retain strong negative connotations as well outside of its original cultural context and use PLEASE REPOST AND SHARE with friends if you enjoyed reading this. Last week we covered Musk and Juggernaut. In previous weeks we have talked about Orange, Candy, Khaki, Shampoo, Jungle and Pepper... all words of Indian origin commonly used in the English language. You can find the previous posts on my timeline. In closing, did the edtech founder do something wrong? Until the courts decide, he is innocent until proven otherwise. CAN YOU GUESS WHO IS THIS FOUNDER?

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