They say you should make hay while the sun shines. And as temperatures continue to rise across nations, scientists in Spain have decided to start naming heatwaves. The aim is to rank them and teach the public about their dangers.
The first one to be named—a heat wave that hit the city of Seville between July 24 and 27—has been christened Zoe.
ICYMI: NPR did this really ‘cool’ list on how to beat the heat, Indian style. Spoiler alert: Turns out, you don’t need an air conditioner all the time.
Meanwhile, India has a new unicorn—the 21st one this year! Logistics startup Shiprocket raised $32.6 million at a valuation of nearly $1.3 billion, marking its entry into the coveted billion-dollar club.
Mergers and Acquisitions
Startup M&A
Future of startup M&As
The first half of 2022 saw 173 acquisitions in the Indian startup ecosystem, up from 98 during the same period last year. It also stood out in terms of large-ticket deals. For example, the acquisition of Blinkit by Zomato for $569 million in an all-stock deal in June 2022.
Industry experts believe the second half of the year will continue to see momentum in startup mergers and acquisitions.
What lies ahead:
- Consolidation in the late stage is likely to kick in as investors become selective over which company to back in a particular sector.
- Mergers and acquisitions will be skewed towards consolidating the market or creating market leadership, rather than adding new verticals.
- All stock, cash, and mixed equity deals will dominate, as companies continue to be in cash-conservation mode.
Agritech
Solving barriers in farming using tech
India is still playing catch-up when it comes to mechanising agriculture. To remove traditional barriers via tech, Akshaya Agri was founded by Satish Nadiger, Abhijit Varade, Robesh Maity, Nilesh Pathak, and Amit Talwar, in 2020. The Pune-based startup provides mechanisation solutions and services in the non-tractor area.
Get tech-ed!
- Akshaya Agri’s vision to disrupt agriculture through tech is carried out through both the B2B and B2C routes.
- The company says it has reached over one lakh farmers with its services.
- It is now looking to add drones into the mix to help digitally map out fields and identify areas that require more attention.
Report
Can fintechs be profitable?
Owing to an increased focus on scale as opposed to profitability and compliance, majority of Indian fintechs may not be able to hit profitability in the next 2-3 years.
A report titled ‘State of India Fintech Union 2022’ by Matrix Partners India and Boston Consulting Group highlights how the last few months have been challenging for fintechs in general with the “funding winter” approaching and pressure on demonstrating profitability, besides customer acquisition.
The fine print:
- Fundamentally, business drivers are not in the right place—not easy to pivot from growth to profitability, said a CXO.
- The report highlights, “While scale is an important driver of profitability, early stage focus on unit economics is a critical orientation needed.”
- The experts reiterate that as the industry matures, it would be critical for fintechs to have a deep understanding of the financial products, revenue pools and business model intricacies.
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