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❄️Onset of ‘startup winter’❄️

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Daily Capsule | 28th May 2022

Hello Readers,


“Only when the tide goes out do you discover who's been swimming naked.”

The famous saying by Warren Buffett, one of the world’s most prolific investors, is quite applicable to what is happening in the Indian startup ecosystem right now

The massive layoffs and dwindling funding on the back of a global market meltdown and consequent liquidity crunch have signalled the onset of the Indian ‘startup winter’. 

Private equity and venture capital investments in April 2022 declined 27 percent year-on-year to $5.5 billion due to a slowdown in large startup investments, revealed an IVCA-EY report.

This comes after two years of skyrocketing valuations and fundraising. The liquidity crunch is an aggregation of multiple factors—global supply chain disruptions owing to lockdowns, the Russia-Ukraine war, meltdown in the global tech stocks, and spike in inflation and consequent hike in interest rates.

It is more heated after last year’s “overinflated euphoria” among investors, who signed big cheques for both early and growth startups, putting money more on a ‘vision’. 

But who is likely to get more affected by the current market situation between early and growth-stage startups? Read more .

Here are other highlights of today's Daily Capsule:

  • Editor’s Pick: KT Professionals’ good hair days

  • Startup Spotlight: Frigate

  • News and updates and more…

Editor’s Pick: KT Professionals’ good hair days

KT Professionals was started by Dhruv Sayani in 2016 under the parent company Crystal Plastics. He has built the brand from scratch, making keratin-infused hair care products for the urban population. In six years, the company has made its presence felt pan India. Read more .

Startup Spotlight

On-demand custom manufacturing services for OEMs

In 2011, Tamizh Inian, who worked for an industrial solutions provider as part of his company project, got an opportunity to work for Nanban, a Tamil remake of Bollywood movie ‘3 Idiots’. His team helped build a scooter prototype, which doubled up as a flour mill, for it.

What started as a project became a business opportunity for Tamizh. He continued to build similar prototypes, earning Rs 9 to 10 lakh per annum. Seeing the demand, he decided to capitalise on the success and set up Frigate in March 2021. Read more .

Top Stories of the Week

  • Cloud kitchen and food delivery startup FreshMenu found itself suddenly short of revenues amid funding crunches, potential acquisition and the pandemic. Despite being stuck between a rock and a hard place, founder Rashmi Daga and her startup team remained resilient .

  • After WittyFeed shut down overnight, entrepreneurs Vinay Singhal, Shashank Vaishnav, and Praveen Singhal were determined not to give up. The trio set out to build a 'Netflix for Bharat' and launched STAGE, an artist and dialect-based OTT platform for Indians . Today, the hyperlocal video entertainment platform has recorded more than two million downloads and has over one lakh paying customers.

  • While Decentralised Autonomous Organisations (DAOs) can enable a decentralised future devoid of hierarchy, Apoorv Nandan and Vikram Aditya noticed that using them can be too complicated. So, they built tooling platform DAOLens to help DAOs onboard contributors .

  • Sunny Leone continues to push the envelope. An actor, she has her own production company, cosmetics line, and lingerie brand. Now, she has ventured into gamification with 'I Dream of Sunny' —a product that combines NFTs, Artificial Intelligence (AI), fan verse, etc. 

  • NASSCOM Foundation helps people and institutions transform the way they tackle social and economic challenges through technology. During the COVID-19 pandemic, the Foundation impacted about 5.1 million people.

Startup Funding: Deals of the Week

Startup

Amount

Round

Country Delight

$108 million

Series D

BluSmart

$25 million

Series A

Three Wheels United

$10 million

Series A

Brand Spotlight

As the world’s largest three-month global accelerator programme, the K-Startup Grand Challenge can provide startups with the support and opportunities for investment that you need to launch your business in Asia.
To know more, Read on.

In conversation with YourStory, Issac Mathew, Sr. Director, Technology, DACI Supply Chain, Lowe’s India, discussed how data is leveraged to help the business scale and how Lowe’s takes care of its associates. Read on!

On the cusp of a transformation, the Indian dairy sector is slowly embracing tech solutions. But, several challenges are hindering development. Click here to read how tech can boost India’s milk production.

AkzoNobel’s India startup challenge 2022 is looking out for startups who can digitally transform the painting journey of consumers, be it in planning, painting, post-painting or all the stages. Have a disruptive tech solution then hurry – ONLY 4 DAYS LEFT! Know more.

Before you go, stay inspired with...

—  Puneet Chandok, AWS India and South Asia

“Cloud education is key to the success of India's large and diverse SMB market.” 

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