21 February 2024
INDIA | INTERNET | SECTOR UPDATE
From Clicks to Cash: Profitability Paradigm in E-commerce
Deep-Dive
%
OFF
E-commerce reigns, brick
and mortar holds its own
Profitability on the rise, user
experience takes a hit
Includes our propositions for
e-commerce players
21 February 2024
INDIA | INTERNET | SECTOR UPDATE
Table of Contents
Page No.
Executive summary
3
Key consumer pulse readings
4
Key imperatives for e-commerce players
9
Our insights for the key players
10
Company profiles
13
Flipkart
13
Amazon India
14
Meesho
15
Swiggy
16
Zepto
17
Bigbasket
18
Purplle
19
Myntra
20
AJIO
21
Tata CLiQ
22
MakeMyTrip
23
Cleartrip
24
InsuranceDekho
25
Pharmeasy
26
Tata 1Mg
27
Netmeds
28
Urban Ladder
29
Pepperfry
30
CaratLane
31
Melorra
32
JM Financial Institutional Securities Limited Page 2
16 January 202
JM Financial Institutional Securities Limited
With public markets rewarding profitability and private markets undergoing a funding
winter, Indian e-commerce companies have switched tack to deliver profits. Post
Covid, listed internet companies have improved EBITDA margins (excluding ESOPs) by
1,255 bps on average; their unlisted peers are also claiming profitability (Swiggy,
Pharmeasy, Meesho). Key drivers have been minimal moonshot investments,
operating leverage and corners being cut in consumer experience. Our consumer
pulse study across 179 participants suggests that they did anticipate higher fees and
lower discounts but did not expect the stark dip in service quality (60% customer
support experiences are unsatisfactory). Furthermore, platforms were also appreciated
for enabling availability of several long-tail products as well as niche D2C brands. We
believe Indian e-commerce is now at a critical juncture with early users penetrated and
offline players demonstrating brawn and willingness to combat. Future growth will
depend on the players exhibiting heightened sensitivity to consumer pain-points.
E-commerce penetration plateauing for big-ticket items and rising for long-tail products: In
big-ticket categories such as large electronics and mobiles, 70%+ of our survey participants
do shop online already. Predictably, 52% participants had 50%+ online wallet share for
mobiles while the same was only 27% for large electronics. However, 55% / 50% of people
shopping large electronics / mobiles online answered negatively when asked about their
willingness to increase their online wallet share. In comparison, shoppers of small ticket
items such as food, grocery and home merchandise exhibited a higher willingness to
increase their online wallet share. Interestingly, this was despite the current penetration
levels for food/grocery being similar to mobiles and home merchandise being similar to large
electronics. We hypothesise that the convenience of easy availability of these categories on
a single platform is driving this favourable consumer behaviour.
Favourites established by categories: Indian consumers are believed to be value seekers.
However, an overwhelming majority of our survey participants demonstrated a platform of
choice across categories – Nykaa for BPC, MakeMyTrip for travel, PolicyBazaar for insurance,
Amazon in tier 1 cities and so on. In case of fashion, electronics / mobiles and food /
grocery, favourites tend to vary by participant but there surely exists a preferred platform.
This favouritism is to such an extent that the consumers do not even compare pricing on
other platforms; while admitting their awareness of potentially better deals if only they
compared more. This clearly counters the value-seeking image. As highlighted in our report
on ascribing multiples, robust network effects are emerging across these platforms.
Platform and delivery fees on the rise: BookMyShow has leveraged its monopolistic position
and online travel aggregators (OTAs) have benefitted from oligopoly to levy platform fees
since the very beginning. With food-tech platforms also ramping up platform fees in line
with their quick commerce peers, we are now seeing a wider adoption. Simultaneously, e-
commerce players started charging platform fees to consumers with higher-than-average
returns as well as on popular products during the sale season. Companies are now pushing
loyalty programmes and tying free delivery to them, and are consistently revising the cost
upwards. While these charges might come across as relatively modest in absolute terms, it is
noteworthy that users in our survey (~56% on average) are actively tracking the rise. We
anticipate that companies will keep on testing incrementally higher fees in cohorts to avoid
consumer uproar while optimising their bottom line.
Expect profitability boost at the cost of consumer experience: Thanks to consolidation,
nearly every category (including UPI and newer categories such as quick commerce) now has
a limited set of players, resulting in oligopolistic tendencies. With widespread consumer
habit formation and lack of alternate options, consumers are still sticking begrudgingly. The
weights are now tilted towards the incumbents and they are resorting to higher fees, lower
discounts as well as lower user satisfaction, resulting in improved profitability. Occasionally,
we see users raising the question of why the incumbents are doing it – “because they can”.
DEEP-DIVE
Internet
From Clicks to Cash: Profitability Paradigm in E-commerce
21 February 2024
India | Internet | Sector Update
E-commerce on the up but offline
fights back
Consumers forcibly adopting to lower
discounts and higher fees
Potential trend of profit boost at the
expense of user experience
Sachin Dixit
[email protected]om | Tel: (91 22) 66303078
Swapnil Potdukhe
swapnil.potdukhe@jmfl.com | Tel: (91 22) 62241876
Eksha Modi
[email protected]m | Tel: (91 22) 66303054
Atul Borse
[email protected] | Tel: (91 22) 66303134
Generative AI: Machines turning creative
Yatra Online: A new lease of life
JM Financial Research is also available on:
Bloomberg - JMFR <GO>, Thomson Publisher &
Reuters, S&P Capital IQ, FactSet and Visible Alpha.
Please see Appendix I at the end of this report for
Important Disclosures and Disclaimers and
Research Analyst Certification.
Internet
21 February 2024
JM Financial Institutional Securities Limited
Page 4
Key consumer pulse readings
Across categories, majority of the participants notice an increase in delivery and platform fees Exhibit 1.
Source: JM Financial
~70% of the participants have observed incremental charges being levied by food delivery and quick commerce platforms Exhibit 2.
Source: JM Financial Note: Order details of Zomato, Swiggy, Zepto, Blinkit (left to right)
Platform fees charged by fashion platforms
Exhibit 3.
Source: JM Financial
3-5% convenience fees charged by ticketing platforms
Exhibit 4.
Source: JM Financial
73%
69%
60%
59%
57%
56%
55%
54%
51%
51%
51%
50%
47%
10%
13%
11%
8%
14%
13%
13%
9%
12%
12%
11%
12%
12%
17%
18%
29%
33%
29%
31%
32%
37%
37%
36%
38%
38%
41%
Food Grocery Flights Hotels Medicines Clothes Home
Merchandise
Furniture Large
Electronics
Mobiles Insurance Make-up Jewellery
Increased Decreased Roughly remained the same
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21 February 2024
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Page 5
E-commerce on the up but offline fights back: Among our survey participants across 13
categories, only make-up, furniture and jewellery saw 50%+ users not shopping online. We
can overlook make-up as two-thirds of the participants were males with majority of them not
shopping for make-up. While the ‘authenticity’ factor in make-up category has been fairly
addressed by Nykaa, concerns persist in high-value items such as jewellery and furniture.
Lately, offline players have become more competitive and are attempting to claw back their
business, whether it is chemists offering better discounts or cellphone stores finally getting
their time in the sun by getting concurrent access to new launches. Our channel checks also
suggest that offline electronics retailers tend to offer competitive prices on large appliances
and televisions once the buyer confirms interest, despite the higher list prices. Similar to
Flipkart and Amazon, larger retailers also offer incremental discounts on specific credit cards.
Category-wise spending behaviour reveals >50% online penetration in 10/13 categories Exhibit 5.
Category wallet share spent online
Source: JM Financial
Offline stores also offering credit card discounts Exhibit 6.
Source: Vijay Sales website.
Reduced online discounting driving consumers away to alternate options: Over the years,
online platforms have used deep discounting as a means to penetrate the market and build
consumer habits. However, as the emphasis shifts towards sustainable and profitable growth,
we observe a decline in discounts being extended with most discounts now dependent on
payment methods such as credit cards or BNPL platforms. Consequently, with better pricing
not being the driving factor anymore and the additional complexities of returns, refunds,
exchanges, etc., there is a growing trend among participants to revert to physical stores or at
least not increase their online wallet share for their shopping needs. Though a large share of
our participants are already transacting online, they did not show significant willingness to
increase their online wallet share further.
46% 38% 28% 26% 18% 15% 11% 11%
7%
6% 6%
1% 1%
31%
31%
24%
23%
27%
33%
16%
18%
20%
8%
14%
5%
2%
12%
12%
15%
16%
28%
26%
25%
19%
35%
21%
13%
14%
6%
6%
13%
13%
14%
16%
21%
16%
29%
23%
25%
16%
28%
15%
5%
6%
20%
21%
11%
5%
31%
23%
16%
40%
52%
51%
78%
Flights Hotels Mobiles Insurance Grocery Food Large
Electronics
Home
Merchandise
Clothes Medicines Make-up Furniture Jewellery
75%+ 50-75% 20-50% 0-20% Do not shop online
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66%+ users on average feel that discounts have decreased/roughly remained the same across categories over the past few years Exhibit 7.
Source: JM Financial
Willingness of participants to increase online shopping in the respective categories Exhibit 8.
Source: JM Financial
Consumer support becoming elusive: Due to improvement in technology as well as consumer
education, issues do not arise as frequently anymore. However, if/when they do, reaching out
to human consumer support executives has become an arduous task. This is in stark contrast
to 2010-2015, when consumer support numbers were prominently shared by the platforms.
That is now being replaced with machine learning-based chatbots. In most cases, these bots
are not equipped enough to comprehend and resolve the issues and consumers end up
unsatisfied. As highlighted in our report on Generative AI, we are hopeful that Gen AI-based
solutions will bring the best of both worlds by lowering servicing costs as well as having
contextual awareness to resolve issues.
% of orders requiring consumer support
Exhibit 9.
Source: JM Financial
% of satisfactory consumer support interactions
Exhibit 10.
Source: JM Financial
42%
41%
41%
37%
37%
35%
34%
33%
32%
28%
26%
26%
24%
22%
26%
28%
25%
34%
37%
26%
20%
37%
28%
41%
26%
18%
36%
34%
31%
37%
28%
28%
40%
47%
31%
44%
33%
48%
58%
Clothes Large
Electronics
Mobiles Home
Merchandise
Grocery Food Medicines Make-up Hotels Insurance Flights Furniture Jewellery
Increased Decreased Roughly remained the same
65%
63%
60%
58%
55%
51%
50%
45% 45%
43%
29%
28%
13%
35% 37% 40% 42% 45% 49% 50% 55% 55% 57% 71% 72% 87%
Flights Hotels Grocery Food Home
Merchandise
Insurance Mobiles Large
Electronics
Clothes Medicines Make-up Furniture Jewellery
Yes No
20%
80%
Yes No
40%
60%
Yes No
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Page 7
Return policy turning stricter: The rise in e-commerce penetration in India during the early
days was driven by steep discounts, convenience, availability and, most importantly,
favourable return policies. Over the past year, we have seen return policies become extremely
strict, especially on the larger marketplaces. The return window has been squeezed across
platforms and “platform-abuse” term has been coined for users returning too frequently.
Categories such as electronics, mobiles, books, watches and bags have become replacement
only and even those replacements are allowed only in case of damaged / defective products
on major platforms.
Medicines likely to remain at low online penetration levels: Online shopping for medicines is
cumbersome due to the requirement of prescriptions even for basic medications, contributing
to consumers’ reluctance to increase their online wallet share. Furthermore, other than
medicines for chronic illnesses, the need for most medicines is often immediate and, hence,
consumers prefer to get it from their nearest chemist, who is also willing to deliver within 20-
40 minutes. With significant retailer margin available, local chemists have also decided to take
away the cost advantage from online first players by offering discounts.
User growth will need to come from new online shoppers with limited category expansion
opportunity: Despite our survey participants being one of the most mature e-commerce
shoppers of the country, only 10% (18 participants) shopped online in all the 13 categories
that we polled on. Of the remaining 161 participants, only 62 (<40%) are willing to shop in
incrementally more categories online. In certain categories such as medicines and fruits &
vegetables, participants suggested the presence of local stores that deliver immediately over a
phone call as a major reason for not shopping online. Furthermore, offline shopping is
preferred in large electronics and jewellery categories in order to understand the intricacies of
the products, and also due to limited return options when ordered online.
Only 10% participants shop across all categories
Exhibit 11.
Source: JM Financial. n=179
<40% participants willing to shop in more categories
Exhibit 12.
Source: JM Financial. n=161
Participants surprised at their own acceptance for quick commerce and online beauty: When
asked about the categories that they didn’t expect to succeed online, participants mentioned
quick commerce (QC) and beauty and admitted they were astonished at how they had
themselves adapted to shopping online in these categories. Despite their initial resistance or
disbelief at the value proposition of quick commerce, consumers did admit to habit formation
and partial dependence on QC players now. Female participants correlated this to when they
initially heard of Nykaa about 5-7 years back; at that time, they refused to purchase beauty
products online. While some grievances were still raised about the accuracy of shades on the
platform, they did admit that Nykaa now accounts for a significant wallet share of their
beauty spends, thanks to the assortment and availability.
Participants appreciate the convenience but expect further improvement: The e-commerce
landscape has undergone a significant transformation since Covid-19, accelerating the shift
towards online shopping. Businesses have adapted swiftly to the shift in consumer behaviour,
offering speed, convenience and a broader product assortment. A majority (~85%) of our
participants have found online shopping more convenient post the pandemic. Nevertheless,
10%
90%
39%
61%
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Page 8
there remains considerable scope for improvement to further enhance the overall consumer
experience. Users have highlighted consumer support and product quality as major areas of
concern. Further, improved user interface, personalised collections with effective filter
options, AI-enabled shopping, etc. can contribute to a more satisfying online shopping
experience.
Is online shopping more convenient now in comparison to pre-Covid period? Exhibit 13.
Source: JM Financial. n=179
85%
15%
Yes No
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Page 9
Key imperatives for e-commerce players
Most e-commerce companies are built around growth-based models with profitability
emerging as the companies scale up to have contribution profits large enough to compensate
for fixed costs. When profitability becomes the sole focus, companies tend to squeeze higher
contribution by increasing revenue via
1) higher take-rate from the suppliers,
2) increased delivery fees, and
3) levy convenience / platform fees,
or by depressing variable costs via
1) lower new user acquisition,
2) less fees paid to delivery workers, and
3) decreased returns or provisions by churning ‘abusive’ customers.
Consumers insist that Indian e-commerce ecosystem needs to help with these suggestions Exhibit 14.
Source: JM Financial. Larger font represents higher frequency of consumer expectation.
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Our insights for the key players
Based on our interactions with 179 online shoppers and industry experts, we suggest the
below essentials by categories:
Large Horizontals: Considering the amount of investment (~USD 25bn) poured into India
over the past 1.5 decades, it is reasonable that the two large players are laser-focused
towards profitability. They have taken several harsh measures that include letting go of
employees, lowering wage hikes, shuttering ventures with long gestation period as well
as strategic initiatives such as restrictive return policy, minimal marketing spends and
launch of loyalty programmes. Unsurprisingly, losses are declining though at the cost of
lower growth. While we align with most of these actions, we do feel that horizontals
should continue to ramp up the long-tail categories to acquire the next billion customers
and increase engagement so that they also shop for the big-ticket items. Though early
adopters’ online spends are likely to plateau as they shift to niche brands or to vertical
platforms, rising Indian middle class would drive the next phase of growth. We appreciate
that the horizontals have laid out captive logistics network at a significant cost, but would
recommend them to leverage the fledgling 3
rd
party logistics players to penetrate smaller
cities and towns. While rural has been slow for over a year, incomes as well as aspirations
have risen across the country. With companies playing catch-up with Meesho in value
category by launching Shopsy and Bazaar, we would recommend them to be more
proactive in budding categories such as quick commerce and evaluate an acquisition of
cash-starved players, for example Dunzo.
Quick Commerce: This industry has already surprised consumers as well as investors with
the sharp growth rate as well as contribution profit trends for the major players. We do
note that this is a densification play as dark store economics is the key monitorable unit.
Platforms have shown tremendous agility so far in shutting down unprofitable dark
stores, lowering wastage in fruits & vegetables and leveraging topical trends to adjust
assortment across regions. Though there has been strong consumer love for this business
model so far, we do note that it is still in nascent stage with the largest platform having
roughly 5mn monthly transacting users only. We believe this business model requires
massive operational excellence and, hence, the eye for detail should always endure and
the platforms cannot afford to be complacent. Further, geographic expansion needs to be
calibrated as a new city requires significant investment not just in operations but also in
customer acquisition and habit formation. Finally, considering the unavailability of a
successful template, companies will need to have the humility of recognising when
certain stores, cities, strategies are not working instead of trying to power through by
brute force.
Food Delivery: For most consumers, food delivery looks like a settled space with just two
large players that are operationally profitable (Swiggy claimed profitability in May’23),
though there will continue to be some noise around direct ordering, ONDC, etc. We are
impressed with the ability of these companies in managing the delicate balance in a
three-sided arrangement between restaurants, consumers and delivery partners. Although
it is suggested that there is only a small section of stakeholders that create the noise, we
suggest that the platforms continue stakeholder (both restaurant and delivery partners)
management activities that highlight the value delivered to them. Our back-of-the-
envelope calculation suggests that at the highest take-rates, food delivery business could
be margin-dilutive to the restaurants. However, these restaurants need to be educated
about the higher return on assets being delivered thanks to the incremental business and
higher absolute profits. Further, we believe the consumers might have their favourites but
find the two major platforms interchangeable, so there should be an attempt to lock-in
the consumers via longer-term loyalty programmes instead of the current quarterly plans.
Amazon
42%
Flipkart
47%
Meesho
11%
Relative market share of Large
Horizontals
Blinkit
45%
Instamart
27%
Zepto
21%
BB Now
7%
Dunzo /
Others
0.0%
Relative market share of Quick Commerce
Players
Zomato
57%
Swiggy
43%
Relative market share of Food Delivery
Players
Note: Market shares are based on JM Financial
estimates basis industry and media reports
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Beauty: After Nykaa, which has almost a third of the online beauty market share, the
market is split between Purplle, the horizontals, D2C brands and other smaller
marketplaces. Though this sector is far from settled in terms of competitive intensity,
Nykaa and Purplle have demonstrated that beauty will be a vertical play in India. As most
colour cosmetics are returnable only in case of damaged/wrong delivery and colour is one
of the primary criteria, it was surprising for us to know that it is still a struggle, with
colours being tough to gauge on the website/apps. We recommend that the platforms
need to perfect the shade palette using technology as well as virtual make-up try on that
is becoming more prevalent. Further, we believe that growth via existing users shopping
more is expected to be restrained and the platforms need to penetrate the right cohorts
of users across lower tier cities while keeping a check on unit economics. Though
authenticity is not much of an issue on Nykaa, most other platforms still need to solve for
customer trust.
Fashion: Despite most fashion platforms still burning money after almost a decade of
operations, our industry connects suggest that the fashion vertical generates among the
highest absolute contribution profit for the larger horizontals, implying that fashion
businesses do have a path to profitability. With Myntra primarily focused on private labels,
Ajio distributing Reliance Retail owned luxury brands, Meesho finding the buyers for
unbranded products and Nykaa creating an upmarket marketplace, we see each vertical
platform having a defined strategy to capture market share. Our consumer pulse
suggested that there is a decent amount of fake / rejected products being circulated and
the platforms should focus on ensuring that the shoppers get the correct product. While
there are a few platforms better than others, consumers do require better filters and
search engines in order to find the desired products across millions of SKUs. Furthermore,
return policies have changed drastically and it would be ideal to list them distinctly on
each product listing page to avoid issues post sales.
Travel: Travel is one of the highest penetrated segments online with 90% of our
participants transacting digitally and 60%+ spending more than half of their wallet share
online. Despite some consolidation, the sector still has 4-5 players with consumer
experience roughly the same across the board. Consumers would prefer to have clearer
refund policies and turnaround time for refunds, as almost all consumers alluded to a
poor refunds experience. Though platforms are incrementally offering flexible rates for a
certain fee, we would also recommend allowing free changes within the first few hours
in case there are any mistakes in entering name or date details. F, call centre support has
become almost non-existent across most travel portals and consumers would prefer to
have easier access with lesser wait times as chatbots are severely limited in capabilities.
Insurance: Considering that insurance was largely sold via offline agents in India, it is not
surprising that the category is among the lowest online penetration at 2-3% only. While
consumers have started buying the mandatory and simpler auto insurance policies online,
health and life (including savings) is still largely an offline distribution play due to the
complicated terms and conditions. While the distributors are limited by what the insurers
provide, consumers would want better claims support from the platforms and are
appreciative of Policybazaar’s recent efforts. Further, our survey participants also
recommended better (objective) comparison methods across different quotes offered
online. With insurance expected to remain a largely offline category due to the
complicated nature of product and claims support, we would recommend all online
insurance distributors to develop omni-channel capabilities.
Nykaa
34%
Purplle
10%
Good
Glamm
6%
Myntra
12%
Amazon +
Flipkart
23%
Others
15%
Market share of Online Beauty Players
Myntra
18%
Flipkart
20%
Amazon
18%
Ajio
10%
Meesho
14%
Nykaa
2%
Others
18%
Market share of Online Fashion Players
MakeMy
Trip
65%
EaseMy
Trip
9%
Yatra
6%
Others
20%
Market share of Travel OTAs
PB
Fintech
42%
Insurers-
Online
portals
50%
Others
8%
Market share of Online Insurance
Note: Market shares are based on JM Financial
estimates basis industry and media reports
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Page 12
Health: Similar to online insurance, online health is also a relatively tough category as
consumers want the medicines immediately, particularly for acute illnesses (~50% of the
overall Indian pharma market). Historically, regulations have also prohibited direct selling
to consumers with recent rule changes enabling more flexibility. Almost 40% of our
survey participants do not shop for medicines online primarily due to the immediate
servicing requirement and would rather call their local chemist who mostly delivers in 20-
30 minutes. Consumers would prefer 0-2 hour delivery for acute medicines and a quick
commerce powered business model could make sense, though we recognise the
unsustainability of unit economics for low ticket orders. Another consumer pain-point is
the mandatory requirement of prescriptions and the lack of awareness of availability of
prescribing doctors on these platforms. Given sustained tepid consumer adoption and
rising offline competition, a comprehensive rethink of the current business models would
not be unwarranted.
Tata 1Mg
33%
Pharm
easy
20%
Flipkart
Health+
14%
Apollo 247
13%
Netmeds
11%
Others
9%
Market share of Online Health Players
Note: Market shares are based on JM Financial
estimates basis industry and media reports
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Page 13
Company Profiles
Flipkart
Flipkart is a leading Indian e-commerce company, founded in 2007 by Sachin Bansal and
Binny Bansal. The company initially focused on online book sales before expanding into other
product categories such as consumer electronics, fashion, home essentials, groceries, and
lifestyle products. The company invested in captive logistics arm that now ships 85-90% of its
orders and has recently also talked about opening it up for other shippers.
Post 2010, the company made a number of acquisitions including Letsbuy, Myntra, Jabong,
eBay India, Cleartrip, PhonePe etc to diversify its offerings and strengthen its competitive
positioning. In 2018, the US-based retail chain Walmart acquired majority stake in Flipkart for
USD 16bn (valuation of USD 21bn). The company posted robust growth post COVID but has
seen the growth tapering sharply in the past year with major categories such as smartphones
and apparel taking a hit. Our estimates suggest Flipkart’s FY23 GMV (excluding Myntra) of
around USD 20bn.
Funding history Exhibit 15.
Date
Round
(USD mn)
Type
Post Money Valuation
(USD bn)
Investors
Oct-21
Undisclosed
Series J
Tencent
Jul-21
3600.0
Series J
37.6
SoftBank Vision Fund, Tiger Global Management, Willoughby Capital, Azteca Partner, WCH Q3 2020 1,
Pantai Remis Investment, Jadoff SPV 5, DisruptAD, CPP Investments, Walmart, Khazanah Nasional Berhad,
Antara Capital, Franklin Templeton India, GIC, Qatar Investment Authority, Tencent, Appaloosa
Management, Gamvest, Oryx Group, Dipchand Nishar
Sep-20
62.8
Series J
Tencent
Jul-20
1200.0
Series J
Walmart
Aug-18
33.5
Series J
Times Group
Aug-17
2500.0
Series J
SoftBank Vision Fund, Tiger Global Management, Accel
Apr-17
1400.0
Series I
10.1
Naspers, Tencent, Microsoft, eBay
Dec-16
3.8
Series H
Times Group
Jul-15
710.0
Series H
Tiger Global Management, Steadview
Jun-15
50.0
Series G
Morgan Stanley
Dec-14
700.0
Series G
9.9
Greenoaks, Tiger Global Management, DST Global, Iconiq Capital, Baillie Gifford, Steadview, Qatar
Investment Authority, T. Rowe Price, GIC, Vanguard
Jul-14
1000.0
Series G
Tiger Global Management, Naspers, DST Global, Accel, Sofina, Iconiq Capital, GIC, Morgan Stanley,
Vanguard
May-14
210.0
Series F
DST Global, Tiger Global Management, Naspers, Iconiq Capital
Oct-13
160.0
Series E
Vulcan Capital, Sofina, Dragoneer Investment Group, Tiger Global Management, Morgan Stanley
Jul-13
200.0
Series E
Accel, Tiger Global Management, Naspers, Iconiq Capital
Aug-12
150.0
Series D
Naspers, Iconiq Capital, Accel, Tiger Global Management
Jun-11
20.0
Series C
Tiger Global Management, Kaplan Group Investments
Jun-10
Undisclosed
Series B
Tiger Global Management
Oct-09
1.0
Series A
Accel
Jun-08
0.8
Seed
Helion Venture Partners, Accel, Shekhar Kirani, Ashish Gupta
Source: JM Financial, Tracxn
Key investors
Exhibit 16.
Source: JM Financial, Tracxn
Revenue and EBITDA trends (INR mn)
Exhibit 17.
Source: JM Financial, Tracxn
Walmart
80%
Others
9%
Tencent
6%
ESOP Pool
5%
48,030
63,187
81,157
106,405
150,440
-18,566
-16,558
-25,036
-41,084
-37,696
FY19 FY20 FY21 FY22 FY23
Revenue EBITDA
Internet
21 February 2024
JM Financial Institutional Securities Limited
Page 14
Amazon India
Amazon, one of the largest technology companies, was founded in 1994 by Jeff Bezos. The
company was initially launched as an online marketplace for books, but it gradually expanded
into a multitude of product categories, earning it the name ‘The Everything Store.’ It primarily
focuses on five distinct business verticals - e-commerce, cloud computing, online advertising,
digital streaming, and artificial intelligence.
The company ventured into India in 2013 and has since become a formidable competitor to
Flipkart. Similar to Flipkart, Amazon also invested in self logistics to enable faster delivery to
its “Prime” members. Over the years, the company has created dozens of private-label
brands across departments. It also allows for third party sellers to list and sell their products
through the company’s website. Recently, the company announced the launch of “Bazaar”
to capture value oriented customers.
Amazon also benefits from its “Prime” loyalty program with 80mn+ members. This
membership enables delivery within two days while also allowing access to Prime Video and
Amazon Music. Prime Video launched 20+ originals in India in 2023 with investment
expected to further ramp up in 2024.
In comparison to Flipkart that focused on smartphones and large appliances, Amazon
strategically focused on building large assortment of long-tail categories with 168mn+
products listed. Our industry checks suggest that Amazon India did FY23 GMV of roughly
USD 18bn with the company dominating in the bigger cities while smaller cities shop more
on Flipkart and Meesho.
Amount infused by Amazon in India businesses Exhibit 18.
Date
Amount infused
(in INR bn)
Upto July 2014
15.0
July'14-Apr'16
145.0
CY16
35.4
CY17
39.6
CY18
99.1
CY19
80.2
CY20
55.8
CY21
33.6
CY22
3.8
CY23
4.0
CY24
8.3
Nov-20
15.0
Source: JM Financial, Tracxn
Key investors
Exhibit 19.
Source: JM Financial, VCC
Revenue and EBITDA trends (INR mn)*
Exhibit 20.
Source: JM Financial, Tracxn *Note: Data has been considered for Amazon Seller Services Private
Limited
Amazon Group
100%
77,777
110,279
163,789
216,334
224,295
-48,516
-45,375
-31,492
-14,573
-20,337
FY19 FY20 FY21 FY22 FY23
Revenue EBITDA
Internet
21 February 2024
JM Financial Institutional Securities Limited
Page 15
Meesho
The Bengaluru-based startup was founded in 2015 by Vidit Aatrey and Sanjeev Barnwal. It
started as an on-demand delivery service, but for fashion products from local shops, under
the name ‘Fashnear’. However, it pivoted as Meesho in 2016, a platform that would enable
country-wide shipping for resellers across unbranded products.
Meesho is now an e-commerce B2C platform for multi-category consumer products ranging
across fashion, beauty, electronics, home décor, and more. It primarily earns revenue from a
markup on logistics fees and advertisements from resellers. Meesho is particularly popular in
tier-2 and below cities due to its affordable catalogue as no commissions ensure that the
same product is priced cheaper than Amazon and Flipkart.
The company launched Meesho Mall in 2022 and has now partnered with 400 brands across
multiple categories. In comparison to its zero-commission concept, Meesho Mall charges 2-
5% brand fees. With the company becoming the largest 3
rd
party logistics shipper in the
country with 1.2bn+ annualised shipments, Meesho launched Valmo, a logistics marketplace
in 2024. Valmo will aggregate multiple logistics providers to lower dependence on 3PL
players with the company claiming to ship over 0.9mn daily orders. The company was last
valued at USD 3.5bn in Jan’24 by Fidelity.
Funding history Exhibit 21.
Date
Round
(USD mn)
Type
Post Money
Valuation
(USD bn)
Investors
Sep-21
570.0
Series F
4.9
B Capital Group, Prosus, SoftBank Vision Fund, Trifecta Capital, Good Capital, Symphony
Asia Holdings, Footpath Ventures, Fidelity Investments, Facebook
Apr-21
300.0
Series E
2.1
SoftBank Vision Fund, Prosus, Venture Highway, Shunwei Capital, Knollwood Investment
Advisory, Facebook
Aug-19
100.0
Series D
0.7
Naspers, Shunwei Capital, Venture Highway, Elevation, Sarin Family (India), Peak XV
Partners, RPS Group, Facebook
Jun-19
25.0
Series D
DST Partners, Facebook
Nov-18
50.0
Series C
0.3
Shunwei Capital, RPS Ventures, Y Combinator, Venture Highway, Elevation, DST Partners,
Peak XV Partners, Yuri Milner
Jun-18
11.5
Series B
Peak XV Partners, Y Combinator, Venture Highway, Elevation, Maninder Gulati, Jaspreet
Bindra, Abhishek Jain, Chris Workman, Kashyap Deorah
Oct-17
3.4
Series A
Elevation, Y Combinator, Venture Highway
Aug-16
Undisclosed
Seed
Venture Highway, Chris Workman, Maninder Gulati, Jaspreet Bindra, Abhishek Jain
Jul-16
0.1
Seed
Y Combinator
May-16
0.4
Angel
Chris Workman
Source: JM Financial, Tracxn
Key investors
Exhibit 22.
Source: JM Financial, Tracxn
Revenue and EBITDA trends (INR mn)
Exhibit 23.
Source: JM Financial, Tracxn
848
3,416
8,386
33,594
58,893
-1,002
-3,129
-4,898
-32,389
-16,438
FY19 FY20 FY21 FY22 FY23
Revenue EBITDA
Internet
21 February 2024
JM Financial Institutional Securities Limited
Page 16
Swiggy
Swiggy is an Indian online food ordering and delivery platform, founded by Sriharsha Majety,
Nandan Reddy and Rahul Jamini in 2014. Swiggy is currently engaged in restaurant food-
delivery, quick-commerce, concierge services (Genie) and other convenience offerings,
serviced through its network of around 374k delivery partners, and is present across ~600
Indian cities (as of Jun’23).
In FY23, the company expanded into the dining-out space by acquiring Dineout, a leading
dining and restaurant tech solutions platform in India, enhancing its portfolio of consumer
convenience offerings. Swiggy also has a subscription programme, Swiggy One, a multi-
category loyalty programme across its restaurant food-delivery, quick-commerce, dineout and
concierge services.
Though the company was the pioneer of food delivery in India, it has since lost market share
to Zomato as it chases its own path to profitable growth with a public debut in mind.
Funding history Exhibit 24.
Date
Round
(USD mn)
Type
Post Money
Valuation (USD mn)
Investors
Jan-22
700.0
Series K
Sumeru Ventures, Sixteenth Street Capital, Smile Group, Segantii Capital Management, Alpha Wave, Prosus, Lathe
Investment, Segantii Capital Management, Invesco, Baron Funds, 360 One, Axis Growth, Ghisallo, QIA, ARK
Impact Asset Management, INQ Holdings, Motilal Oswal, Ghisallo Master Fund, ARK Impact Asset Management,
GIC, Dovetail Investment Management, Kotak Mahindra Bank, Ghisallo Capital Management, Navin Agarwal
Apr-21
1300.0
Series J
5200.0
Prosus, SoftBank Vision Fund, Alpha Wave, Accel, Naspers, Alpha Wave, Lathe Investment, Goldman Sachs
Investment Partners, Think Investments, Amansa Capital, Qatar Investment Authority, GIC, INQ Holdings,
Wellington, SoftBank, Carmignac, Goldman Sachs
May-20
1900.0
Series I
Samsung Venture Investment
Apr-20
43.0
Series I
3300.0
Naspers, Samsung Venture Investment, Korea Investment Holdings, Tencent, ARK Impact Asset Management,
Mirae Asset Capital Markets
Feb-20
113.0
Series I
3500.0
Naspers, Prosus, Meituan, Wellington
Dec-18
1000.0
Series H
3200.0
Naspers, DST Global, Hillhouse, Coatue, Tencent, Wellington, Meituan
Jun-18
210.0
Series G
1300.0
DST Global, Naspers, Coatue, Prosus, Meituan Dianping
Jan-18
100.9
Series F
739.1
Naspers, Prosus, Meituan Dianping
May-17
80.0
Series E
398.6
Naspers, Accel, Bessemer Venture Partners, Harmony Partners, Norwest Venture Partners, Elevation
Sep-16
15.0
Series D
203.8
Bessemer Venture Partners, Accel, Norwest Venture Partners, DST Global, Elevation
Apr-16
7.0
Series C
140.5
Norwest Venture Partners, Accel, DST Global
Dec-15
35.0
Series C
134.3
Harmony Partners, RB Investments, Accel, Norwest Venture Partners, DST Global, Elevation
Jun-15
16.5
Series B
50.1
Norwest Venture Partners, Accel, Elevation, DST Global
Apr-15
3.0
Series A
4.0
Accel, Elevation
Source: JM Financial, Tracxn
Key investors
Exhibit 25.
Source: JM Financial, Tracxn
Revenue and EBITDA trends (INR mn)
Exhibit 26.
Source: JM Financial, Tracxn
Others
37%
Prosus
32%
SoftBank
8%
Founders
7%
Accel
6%
ESOP
5%
DST Global
5%
12,973
37,277
26,759
61,198
-23,396
-35,305
-10,216
-30,630
FY19 FY20 FY21 FY22
Revenue EBITDA
Internet
21 February 2024
JM Financial Institutional Securities Limited
Page 17
Zepto
Founded in 2021 by two Stanford University drop-outs Aadit Palicha and Kaivalya Vohra,
Zepto is the only dedicated quick commerce platform of the country. The startup was
launched to provide customers with ultra-fast grocery delivery as the founders believed in
India being a high frequency, low ticket grocery market.
Started as Kiranakart, the company tied up with grocery stores to facilitate product delivery.
Kiranakart used to deliver groceries across Mumbai, unlike Zepto that offers delivery across
metro cities such as Bengaluru, Lucknow, Delhi, Chennai, etc. The founders launched Zepto
as an extension of Kiranakart Technologies Private Limited.
The company also launched Zepto Café as a pilot project in Mumbai in Apr’23, which enables
consumers to buy snack items such as tea, coffee, samosas, croissants and the likes along
with groceries. Zepto Café primarily works as a mini cloud kitchen setup in the existing dark
stores of the company and sources from brands such as Chaayos, Blue Tokai, etc.
In its Series E funding round in Aug’23, Zepto was valued at USD 1.4bn, making it India’s first
unicorn of 2023. The company continues to grow rapidly and expects to turn operating
profitable in 2024.
Funding history Exhibit 27.
Date
Round
(USD mn)
Type
Post Money
Valuation (USD mn)
Investors
Nov-23
31.2
Series E
Goodwater Capital, Nexus Venture Partners, Mangum
Aug-23
200.0
Series E
1400.0
StepStone Group, Goodwater Capital, Nexus Venture Partners, Glade Brook Capital, Lachy
Groom
May-22
200.0
Series D
900.0
Y Combinator, Nexus Venture Partners, Glade Brook Capital, Kaiser Permanente, Lachy
Groom
Dec-21
100.0
Series C
Y Combinator, Glade Brook Capital, Nexus Venture Partners, Breyer Capital, Contrary
Capital, Global Founders Capital, Lachy Groom
Oct-21
60.0
Series A
225.0
Glade Brook Capital, Y Combinator, Nexus Venture Partners, Global Founders Capital, Lachy
Groom, Manik Gupta, Neeraj Arora
Jan-21
0.7
Seed
Global Founders Capital, 2am VC, Contrary Capital
Nov-20
0.1
Seed
Y Combinator
Source: JM Financial, Tracxn
Key investors
Exhibit 28.
Source: JM Financial, Tracxn
Revenue and EBITDA trends (INR mn)
Exhibit 29.
Source: JM Financial, Tracxn
Founders
23%
Nexus Venture
Partners
19%
Others
14%
Y Combinator
12%
LGF Scale I
9%
Glade Brook
Capital
8%
StepStone
Group
6%
Angel Investors
5%
Rocket Internet
4%
1,424
20,776
-3,693
-11,618
FY22 FY23
Revenue EBITDA
Internet
21 February 2024
JM Financial Institutional Securities Limited
Page 18
Bigbasket
Bigbasket was founded by five entrepreneurs, V S Sudhakar, Hari Menon, V S Ramesh, Vipul
Parekh and Abhinay Choudhari in 2011. It is a multi-category online grocer that also has
invested in building private label brands. Other than the regular scheduled delivery, it offers 3
different options: 1) BB Daily – early morning delivery service allowing customers to order
milk and fresh groceries, 2) BB Now – grocery delivery service within 15-30 minutes, and 3)
BB Instant - vending machines available in offices and tech parks.
Tata Digital (under the Tata Group) became the majority owner of the company by acquiring
a stake of 64% in May’21. Since the launch of quick commerce business model, the
company has seen an impact to growth and is now having to play catch-up by investing into
building BB Now, as seen in higher losses in FY23.
Funding history Exhibit 30.
Date
Round
(USD mn)
Type
Post Money
Valuation (USD mn)
Investors
Dec-22
200.0
Series G
3200.0
Bessemer Venture Partners, Mirae Asset, Tata, Vinod Shankar, Manas Patil, Sudhir R
Sep-21
11.5
Series F
1900.0
British International Investment, CDC Group
Apr-20
51.9
Series F
1300.0
CDC Group, Alibaba Group
Feb-20
6.8
Series F
1200.0
Saama Capital, Sequoia Capital, CDC Group, Whiteboard Venture Partners, Tracxn Labs, Trifecta Capital,
Lorina Consultants, Venkatram Krishnan, Anupam Mittal, Eoin Barry Saadien, Vinodkumar Surajbhan
Bansal, Akshay Kothari, Ravi Garkipati, Kartik Reddy, Kevin Freitas, Shekar G Nair, Premanshu Singh, Snehal
Yarnalkar, Janardhana Pokkalla, Nila Raja, Ramadikesan Srinivasan, Kunal Shah, Naman Sarawagi,
Sivakumar Tangudu, Preeti Khurana, Rohit Parakh, Vishal Maheshwari, Vinod Shankar, Abhimanyu Rana,
Anu Joshan, Rajeev Krishnan, Nitin Gupta, Chooyoung Cheong, Prithiv Ramadhyani
Jan-20
1.5
Series F
Trifecta Capital
Jul-19
15.6
Venture Debt /
Series F
1100.0
Trifecta Capital
Mar-19
151.0
Series F
1200.0
Mirae Asset Venture Investments, Trifecta Capital, British International Investment, Alibaba Group
Jul-18
0.4
Series E
755.0
Trifecta Capital
Jan-18
302.0
Series E
The Abraaj Group, IFC, Alibaba Group, Sands Capital
Oct-17
0.8
Venture Debt
Trifecta Capital
Sep-17
12.9
Series D
612.0
Helion Venture Partners, The Abraaj Group, Sands Capital Ventures, IFC, Bessemer Venture Partners
Mar-17
17.0
Series D
592.0
Sands Capital Ventures, Bessemer Venture Partners, Trifecta Capital, The Abraaj Group, IFC
Mar-16
150.0
Series D
391.0
The Abraaj Group, Bessemer Venture Partners, Helion Venture Partners, IFC, Sands Capital Ventures,
Zodius, Ascent Capital, TR Capital
Aug-15
50.0
Series C
Bessemer Venture Partners, Sands Capital
Feb-15
14.5
Series C
223.0
Bessemer Venture Partners
Sep-14
33.7
Series B
Helion Venture Partners, Zodius, Ascent Capital, Hari Kumar, Ganesh Krishnan
Oct-13
5.7
Series A
53.6
LionRock Capital, Ascent Capital, Hari Kumar
Feb-12
10.0
Series A
13.2
Ascent Capital, Brand Capital
Source: JM Financial, Tracxn
Key investors
Exhibit 31.
Source: JM Financial, Tracxn
Revenue and EBITDA trends (INR mn)
Exhibit 32.
Source: JM Financial, Tracxn
Tata Digital
64%
ESOP Pool
11%
Other
7%
Helion Venture
Partners
5%
Bessemer
Venture
Partners
5%
Mirae Asset
5%
Founders
3%
Angel
0%
28,042
38,221
65,704
85,612
94,993
-5,154
-4,920
-2,069
-7,107
-13,323
FY19 FY20 FY21 FY22 FY23
Revenue EBITDA
Internet
21 February 2024
JM Financial Institutional Securities Limited
Page 19
Purplle
Founded in 2012 by Manish Taneja, Rahul Dash and Suyash Katyayani, Purplle is an Indian e-
commerce platform that specialises in beauty and personal care products. Purplle
initially started as a blog that provided beauty tips and product reviews, but later expanded
into an online marketplace. It competes directly with Nykaa, though has a bigger play in
smaller cities compared to Nykaa while also having lower AOVs. Purplle also is ramping up its
offline presense with the first store launched in Mumbai this year.
Purplle has around 7mn+ subscribers and 60,000+ products from more than 1,000 brands,
including some of the most popular brands in the industry. The company acquired Faces
Canada in 2021, with an aim to elevate its portfolio in the beauty space.
Funding history Exhibit 33.
Date
Round
(USD mn)
Type
Post Money
Valuation (USD mn)
Investors
May-23
Undisclosed
Series E
1100.0
Abu Dhabi Investment Authority
Oct-22
75.0
Series E
Sequoia Capital, Blume, Kedaara
Jun-22
33.0
Series E
1100.0
Paramark Ventures, Premji Invest, Blume, Kedaara, Neha Malhan, Bhumika Nirmal, Chirag Desai
Jan-22
34.7
Series D
Peak XV Partners, Blume, Sangeeta Pendruka
Nov-21
65.0
Series D
Premji Invest, Blume, Innoven Capital, Peak XV Partners, Tekkethalakal Kurien, Nithya Venkataramani,
Atul Gupta, Rahul Garg, Manoj Jaiswal, Ramanathan Lakshminarayana Kollengode, Rohit Mutthoo,
Sangeeta Pendruka
Oct-21
75.0
Series D
Kedaara, Blume, Peak XV Partners
Mar-21
45.0
Series D
Verlinvest, Blume, Mountain Pine Capital, Suncoast Investments, Peak XV Partners, JSW Ventures, Nava,
Patrick Chong, Deven Sharma, Sameer Taneja
Jun-20
1.0
Series C
Spring, Brand Capital
Dec-19
35.2
Series C
152.0
IvyCap Ventures, Blume, Verlinvest, JSW Ventures, Goldman Sachs Investment Partners
Oct and
Jul-19
2.1
Conventional Debt
BlackSoil
May-19
3.0
Series B
Blume, IvyCap Ventures, JSW Group
Jan-18
6.7
Series B
IvyCap Ventures, JSW Ventures, Blume, AET Fund, kaenterprisellc.com, Nava, Cosendo Technologies,
IndigoEdge, Patrick Chong Fook Seng, Deepika Padukone, Prakash Padukone
Feb-17
2.4
Series B
33.8
Mountain Pine Capital, Suncoast Investments, IvyCap Ventures, Nava, SunCoast Capital Group, JSW
Group,Deven Sharma, Govindarajan Parthasarathy, Sameer Taneja
May-16
6.0
Series B
14.4
JSW Ventures, IvyCap Ventures, Kalpavriksh Fund, Brand Capital, Nava, Deven Sharma
Nov-14
3.9
Series A
7.3
IvyCap Ventures, Blume, The Chennai Angels, Mumbai Angels, Timesgroup, Girish Bhakoo, Greygory
Alexander, Ambarish Raghuvanshi, Ravindra Dhariwal, Kayar Raghavan, Gregory Alexander
Aug-13
0.6
Seed
Blume, Mumbai Angels, The Chennai Angels, Nikhil Kishorchandra Vora, Vaidyanathan Shankar,
Madhura Nathwani, Taha Nabee, Anirudh A Damani, Neeraj Goenka, Nikunj Shah, Rishi Bhasin, Vinay
Menon, Amit Goel, Kayar Raghavan, Avinash Gupta, Gita Nayyar, Partha Biswas Gosh, Jeetu Panjabi,
Venkatachalam Anilode, Gaurav Deepak, Paritosh Joshi, Arik Shah, Abhinav Sinha, C.S Murthi, Prem
Pavoor, Ketan Vallabhji Gada, Anil Radheshyam Chokhani, Murugavel Janakiraman
Mar-12
0.3
Angel
0.7
Aniruddha Gopalkrishna, Vinay Menon, Abhinav Sinha, Gaurav Deepak, Govindaraja N Chellappa, R.N
Khanna, Amit Goel, Prem Pavoor, Kabir Narang
Source: JM Financial, Tracxn
Key investors
Exhibit 34.
Source: JM Financial, Tracxn
Revenue and EBITDA trends (INR mn)
Exhibit 35.
Source: JM Financial, Tracxn
Others
39%
Verlinvest
15%
Founder
12%
Goldman Sachs
10%
Premji Invest
10%
Angel Investors
8%
ESOP
6%
1,014
987
1,391
2,274
5,087
-35
-196
-436
-1,868
-1,974
FY19 FY20 FY21 FY22 FY23
Revenue EBITDA
Internet
21 February 2024
JM Financial Institutional Securities Limited
Page 20
Myntra
Myntra was founded in 2007 by Mukesh Bansal, Ashutosh Lawania and Vineet Saxena, as an
online portal to sell personalised gift items. It initially operated on the B2B model, before
transitioning to an online portal for selling fashion and lifestyle products in 2011. In 2014,
Myntra was acquired by Flipkart in a deal valued at INR 20 bn (USD 250mn). Myntra
continues to function and operate as a standalone brand under Flipkart ownership, focusing
primarily on "fashion-conscious" consumers but the company has also recently enhanced
focus on BPC. In May’23, Myntra launched FWD, an app-in-app experience for Gen Z
customers to showcase their favourite trends along with social media like features.
The platform also allows third-party sellers to sell their fashion products to customers. As a
marketplace service provider, the company generates revenue primarily from commission fees
from sellers. Along with its parent entity, Myntra has dominated online fashion in India for
almost a decade, especially led by a wide gamut of private label brands across categories.
With heightened competition from AJIO and tougher macro environment, the company has
seen a tougher CY23 with growth likely to be in low double digits.
Funding history Exhibit 36.
Date
Round
(USD mn)
Type
Post Money
Valuation
(USD mn)
Investors
Jan-14
50.0
Series E
198.0
Premji Invest, Accel, Tiger Global Management, Sofina, Chiratae Ventures, Kalaari Capital
Feb-13
8.0
Series D
196.0
Tiger Global Management, Chiratae Ventures, Accel, New Enterprise Associates
May-12
25.0
Series D
128.0
Accel, Tiger Global Management, Chiratae Ventures
Feb-12
21.0
Series C
Tiger Global Management, IndoUS Venture Partners, Accel, Chiratae Ventures
Mar-11
14.5
Series B
Tiger Global Management, IndoUS Venture Partners, Accel, Chiratae Ventures, Manoj Shah
Oct-08
5.0
Series A
IndoUS Venture Partners, Chiratae Ventures, Accel, Erasmic Venture Fund, Priyank Garg, Gulu Lalchand
Mirchandani, Manoj Shah
Feb-08
0.3
Seed
Accel, Erasmic Venture Fund, Priyank Garg, Gulu Lalchand Mirchandani, Shantanu Bhagwat
Source: JM Financial, Tracxn
Key investors
Exhibit 37.
Source: JM Financial, Tracxn
Revenue and profit trends (INR mn)
Exhibit 38.
Source: JM Financial, Tracxn
Flipkart
98%
ESOP Pool
2%
10,888
17,185
24,666
36,099
45,092
-5,394
-7,444
-4,250
-5,970
-7,824
FY19 FY20 FY21 FY22 FY23
Revenue Profit/Loss
Internet
21 February 2024
JM Financial Institutional Securities Limited
Page 21
AJIO
AJIO is a fashion and lifestyle brand, created under Reliance Retail’s digital commerce
initiative. It offers multi-category fashion products for men, women, and kids. Launched in
2016, the company directly competes with the likes of Myntra, Flipkart and Amazon. The e-
commerce platform uses the online-to-offline (O2O) business model to bring physical stores
to online marketplaces.
In 2020, through AJIO’s luxury sub-brand ‘AJIO Luxe’, the company ventured into luxury
fashion from Indian and International brands. AJIO also has its own private label ‘AJIO Own’.
The company also benefits strongly from Reliance Retail owning multiple international luxury
brands in the country and hence is positioned as the ideal distribution play for these brands.
Since its launch, AJIO could only garner mid-single digits market share of online fashion until
late 2022 when the compay expanded aggressively with deeper discounts as well as higher
marketing spends. Coincidentally, it also aligned with the time when Amazon and Flipkart
were cutting costs while Tata Cliq was without a CEO and the company managed to reach
low double digits market share in online fashion. We believe the company has now become
more disciplined with regards to these investments and is now sustaining around high single
digit market share.
Key Investors
Exhibit 39.
Source: JM Financial, Tracxn
GMV trends (INR mn)
Exhibit 40.
Source: JM Financial, Tracxn
Reliance Retail
Ventures
100%
19,519
45,050
120,000
FY21 FY22 FY23
GMV
Internet
21 February 2024
JM Financial Institutional Securities Limited
Page 22
Tata CLiQ
Tata CLiQ, a platform from a Tata Group business venture, Tata Unistore, was launched in
2016 as an online e-commerce marketplace for fashion, luxury, electronics, jewellery and
more. Later, the platform also launched its premium and luxury lifestyle destination, Tata
CLiQ Luxury, to cater to consumers who focus on quality and craftmanship.
In addition to an online marketplace, the business is also a direct seller for selected
merchandise categories. Additionally, it has built a strong brand partner network of 1,600+
store and 100+ partner brands to provide an omnichannel shopping experience. This
‘phygital shopping’ experience combines the ease of shoppling online with the reassurance of
buying from a brick-and-mortar store.
With Tata CLiQ joining Tata Neu amid sustained tech-product issues with the platform as well
as loss of its CEO in Dec’22, the company did see a tough FY23. However, we understand
that the platform is stabilising now, though macro environment remains tough.
Tata UniStore Limited is a 100% subsidiary of the Tata
Exhibit 41.
Group
Source: JM Financial, Tracxn
Revenue and EBITDA trends (INR mn)
Exhibit 42.
Source: JM Financial, Tracxn
Tata Group
100%
1,107
2,267
3,586
8,493
4,106
-2,305
-2,451
-3,140
-6,494
-7,918
FY19 FY20 FY21 FY22 FY23
Revenue EBITDA
Internet
21 February 2024
JM Financial Institutional Securities Limited
Page 23
MakeMyTrip
MakeMyTrip is India’s leading online travel company, founded in 2000 by Deep Kalra.
Starting its journey in US-India travel market, the company went ahead to launch India
operations in 2005.
The company offers a wide range of services across all travel requirements including air
tickets, hotels and packages, bus and rail tickets, car and taxi rentals, MICE (Meetings,
Incentives, Conferences & Exhibitions). It has also ventured into the B2B space where it
operates under the brand name ’myBiz’ and ‘Quest2Travel’.
In 2016, the company had acquired the ‘Ibibo Group’ to consolidate its market share and
build complementary synergies, for roughly INR 120bn (USD 1.8bn). It nows operates under 3
dominant brand names - MakeMyTrip, Goibibo and redBus.
Funding history Exhibit 43.
Date
Round (USD mn)
Type
Post Money
Valuation (USD mn)
Investors
May-17
330.0
Post IPO
Naspers, Ctrip
Jan-16
180.0
Post IPO
Ctrip
Oct-07
15.0
Series C
Tiger Global Management, Helion Venture Partners, Sierra Ventures, Elevation
Dec-06
13.0
Series B
Helion Venture Partners, Sierra Ventures, Elevation, Ashish Gupta
May-05
10.0
Series A
Elevation
1.0
Seed
eVentures India
Source: JM Financial, Tracxn
Key investors
Exhibit 44.
Source: JM Financial, Bloomberg
Revenue and EBITDA trends (USD mn)
Exhibit 45.
Source: JM Financial, Company
Trip.com
32%
Others
10%
FIL Ltd.
10%
Capital Group
10%
Schroders
7%
Franklin
Resources
6%
Artisan Partners
5%
FMR LLC
5%
Brown Advisory
5%
Deep Kalra
4%
Baillie Gifford &
Co.
3%
Rajesh Magow
3%
498
517
181
317
607
-126
-125
-38
-4
48
FY19 FY20 FY21 FY22 FY23
Revenue (USD mn) EBITDA (USD mn)
Internet
21 February 2024
JM Financial Institutional Securities Limited
Page 24
Cleartrip
Cleartrip was founded in 2006 by Hrush Bhatt, Matthew Spacie and Stuart Crighton. It is an
online travel aggregator website for hotels and air travel bookings. Over the years, the
company has expanded into new business verticals including buses and cabs. It also operates
Cleartrip for Business, an online corporate travel management tool and Agent Box, a travel
tool for travel agents.
In April 2021, Cleartrip was acquired by Walmart-owned Flipkart in a deal valued at about
USD 40mn in a distress sale due to COVID induced travel bans. Cleartrip continues to operate
as a separate brand under Flipkart ownership. Under the Flipkart umbrella, Cleartrip has
again gained aggression with the group supporting investments into brand to acquire
consumers. The company did grow strongly thanks to post COVID travel boom with certain
research studies claiming the company to have become the 2
nd
biggest OTA in the country.
However, according to recent media reports, Cleartrip CEO, Ayyapan R, is expected to exit
Flipkart and it remains to be seen if the company would sustain the aggression or it changes
are afoot.
Funding history Exhibit 46.
Date
Round (USD mn)
Type
Post Money
Valuation (USD mn)
Investors
Oct-21
Undisclosed
Series F
Adani Group
Jun-16
Undisclosed
Series E
Gund Investment, Concur
Apr-11
40.0
Series D
Concur
Feb-08
18.5
Series C
DFJ, DAG Ventures, Sherpalo Ventures, Kleiner Perkins, Mahindra
Dec-06
8.0
Series B
DAG Ventures, Ram Shriram
Jun-06
3.0
Series A
Sherpalo Ventures, Kleiner Perkins
Source: JM Financial, Tracxn
Key investors
Exhibit 47.
Source: JM Financial, Tracxn
Revenue and EBITDA trends (INR mn)
Exhibit 48.
Source: JM Financial, Tracxn
Flipkart
100%
3,260
3,101
1,071
1,164
-400
-451
-644
-3,490
FY19 FY20 FY21 FY22
Revenue EBITDA
Internet
21 February 2024
JM Financial Institutional Securities Limited
Page 25
InsuranceDekho
InsuranceDekho, incubated under CarDekho in 2016 by Ankit Agarwal, is the country’s
fastest growing insuretech platform over the past few years. Ankit was joined by Ish Babbar
as a cofounder in 2019. It is an online-offline platform that lets users compare insurance
quotes from top-rated insurance companies, and allows them to purchase the insurance
policy. It offers all insurance categories including car, bike, health as well as life insurance.
The company has emerged as the 2
nd
biggest (after PB Fintech) pureplay insurance distributor
of the country despite the presence of several funded players such as Renewbuy, Coverfox
and Turtlemint. The company currently has 150k agents across 1,500+ cities and has tie-ups
with 47 insurers. ~80% of the agents and ~85% of the company’s premium comes from tier
II and lower cities. InsuranceDekho sourced premium of INR 3bn in Oct’23 and continues to
grow further, while sustaining close to breakeven at operating level.
InsuranceDekho is driven by the vision to build insurance penetration for ‘Bharat’ and solves
for the problem of availability, advice and claims support for the buyers. The company has
also made couple of tuck-in acquisitions in 2023 including Verak, an SME insurance
distribution firm and IRSS, a firm with a network of insurance freelancers.
Funding history Exhibit 49.
Date
Round
(USD mn)
Type
Post Money
Valuation
(USD mn)
Investors
Oct-23
60.0
Series B
650.0
TVS Capital Funds, Goldman Sachs Asset Management, Avataar Ventures, Beams Fintech
Fund, Eurazeo, Investcorp, Alstroemeria Investments, MUFG, BNP Paribas Cardif, Mahansaria
Family Trust, Yogesh Mahansaria
Jan-23
150.0
Series A
500.0
TVS Capital Funds, Investcorp, Avataar Ventures, West Street Global, Goldman Sachs Asset
Management, Alstroemeria Investments, LeapFrog, Vineet Dhingra, N Lakshmi Narayanan,
Ajay Shridhar Shriram, Ajit Shridhar Shriram, Vikram Shridhar Shriram, Kavita Wootton Sood,
Anisha Motwani, Nikita Nahata
Source: JM Financial, Tracxn
Key investors
Exhibit 50.
Source: JM Financial, Tracxn
Revenue and EBITDA trends (INR mn)
Exhibit 51.
Source: JM Financial, Tracxn
GirnarSOFT
56%
ESOP Pool
14%
Goldman Sachs
Asset
Management
12%
Others
11%
TVS Capital
Funds
7%
Founders
1%
109
330
306
487
1,003
2
6
-451
-700
-451
FY19 FY20 FY21 FY22 FY23
Revenue EBITDA
Internet
21 February 2024
JM Financial Institutional Securities Limited
Page 26
Pharmeasy
In 2012, Siddharth Shah, Harsh Parekh and Hardik Dedhia launched Dialhealth.com, offering
digital and phone order driven tele-consultation, diagnostic lab pick-ups and medical product
delivery services. They later launched a chain of pharmacies across Mumbai and when they
faced operational challenges such as poor fill-rates and turn-around time, they launched
Ascent to address the supply chain issues in the industry and acquired several wholesale
pharmaceutical distribution businesses across Mumbai, which turned into the PharmEasy of
today. PharmEasy is a full stack healthtech platform offering B2C and B2B pharmacy as well
as dianostic services. Over the years, the company has made significant acquisitons including
rival e-pharmacy company Medlife, diagnostics chain Thyrocare and a healthcare supply chain
company, Aknamed.
In November 2021, the company (parent ‘API Holdings’) filed papers to launch its initial
public offering (IPO) of INR 62.5 bn, However, it withdrew its IPO plans in August 2022 and
completed an oversubscribed rights issue of INR 35bn in October 2023.
Funding history Exhibit 52.
Date
Round (USD mn)
Type
Post Money
Valuation (USD bn)
Investors
Nov-23
420.3
Series G
LGT Capital Partners, ADQ, Orbimed, Temasek, TPG, Prosus, Eight Roads Ventures, Amansa Capital, Caisse de
depot et placement du Quebec
May-22
and Feb-22
Undisclosed
Series F
GSV
Sep-21
205.0
Series F
Janus Henderson Investors, Orbimed, ADQ, SARV Investments, Amansa Investments, Amansa Capital,
Steadview, Neuberger Berman, ApaH Capital Management, Worldwide Healthcare Trust, Prasid Uno Family
Trust, Apah, Beta Oryx, Sanne, Mahender Singh, Sudhir Kumar Singh
Jun-21
300.0
Series F
4.2
Temasek, TPG, B Capital Group, Prosus, Think Investments, Kotak Investment Advisors
Jun-21
55.3
Series E
B Capital Group, Tiger Global Management, JM Financial, Kotak Mahindra Bank, Elizabeth Mathew, Chetan
Gopaldas Cholera, Chaitanya Vaidya, Aditya Puri, Deepak Vaidya, Shalibhadra Shah, Navinchandra Bhogilal
Shah, Deepika Navinchandra Shah, Saroj Mahesh Shah
Apr-21
163.2
Series E
1.6
Naspers, Prosus, TPG, Temasek, Eight Roads Ventures, Think Investments, Lightrock, CDPQ, JM Financial,
Sandeep Kumar Singh, Hardik Dedhia, Harsh Parekh, Shobha Agrawal, Siddharth Bharatkumar Bagadia,
Elizabeth Mathew
Feb-21
66.4
Series D
1.0
Temasek, TPG, Lightrock, Caisse de depot et placement du Quebec, Timesgroup
Nov-19
220.0
Series D
0.5
Temasek, Bessemer Venture Partners, Orios Venture Partners, Eight Roads Ventures, F-Prime Capital,
Fundamentum, KB Investment, Think Investments, Caisse de depot et placement du Quebec, Avendus, KB
Global Holdings, LGT Group, Nandan Nilekani, Sanjeev Aggarwal, Harsh Parekh, Hardik Dedhia
Sep-18
55.5
Series C and
Venture Debt
0.1
Innoven Capital, Fundamentum, Eight Roads Ventures, F-Prime Capital, Think Investments, Bessemer Venture
Partners, Ascent Health & Wellness Solutions, Bina Jhaveri, Anuj Srivastava, Manju Singh, Ramakant Sharma
Feb-18
30.0
Series C
Bessemer Venture Partners, MEMG Family Office, Orios Venture Partners, Trifecta Capital, JM Financial Private
Equity, Ascent Health & Wellness Solutions
Mar-17
17.0
Series B
Bessemer Venture Partners, Orios Venture Partners, Trifecta Capital, Ascent Health & Wellness Solutions,
Shivanand Mankekar, Laxmi Shivanand Mankekar, Kedar Shivanand Mankekar
Jun-15
5.0
Series A
Bessemer Venture Partners, Orios Venture Partners, Aarin Capital, Astarc Ventures, Ascent Health & Wellness
May-15
0.6
Angel
Ramesh Morbia Jethalal, Kavita Morbia, Rohan Ramesh Morbia, Ronak Morbia, Kishor Morbia, Pradeep Chedda
Source: JM Financial, Tracxn
Key investors
Exhibit 53.
Source: JM Financial, Tracxn
Revenue and EBITDA trends (INR mn)
Exhibit 54.
Source: JM Financial, Tracxn
Others
40%
Angel Investors
18%
Naspers
13%
Temasek
12%
TPG
7%
Evermed
Holdings
6%
ESOP Pool
2%
Founders
2%
7,374
23,607
57,810
66,997
-3,163
-5,439
-35,544
-42,872
FY20 FY21 FY22 FY23
Revenue EBITDA
Internet
21 February 2024
JM Financial Institutional Securities Limited
Page 27
Tata 1Mg
Initially launched by Bright Lifecare Private Limited (BLPL) as a digital health platform
‘HealthkartPlus’ in 2012, ‘1mg’ was formed in 2015 when it separated from BLPL and
continued as a general drug search business. The company now has 3 major business
verticals 1) pharmaceuticals, 2) labs, and 3) doctors.
It delivers medicines and health products online, along with lab tests, online consultations,
and authentic information from qualified doctors and health professionals. Thus, it allows
customers to meet all their healthcare needs on one platform hassle-free.
It was acquired by Tata Group in June 2021 to form ‘Tata 1mg’ and has since been made a
part of the superapp, Tata Neu. Though the company played a 2
nd
fiddle to PharmEasy for a
while, it has now become the market leader in online health to account for almost one-third
market share while continuing to be aggressive with discounts.
Funding history Exhibit 55.
Date
Round (USD mn)
Type
Post Money Valuation
(USD mn)
Investors
Sep-22
40.8
Series D
1300.0
HBM Healthcare Investments, Mauritius Africa Fund, Mpof Mauritius, Kae Capital, KWE, Beacon
Trusteeship, Rubal Jain, Vardana Sharma, Martin Whitehead
Apr-21
13.4
Conventional Debt
Tata
Apr-21
0.5
Series D
223.0
HBM Healthcare Investments, Mauritius Africa Fund, IFC, Corisol Holding, Maverick Ventures
Mar-21
0.5
Series D
223.0
Mauritius Africa Fund, HBM Healthcare Investments, IFC
Jul-20
17.8
Series D
206.0
HBM Healthcare Investments, Mauritius Africa Fund, IFC
Jun-20
0.03
Grant
ACT Grants
Jan-20
18.7
Series D
Bill & Melinda Gates Foundation', Mauritius Africa Fund, HBM Healthcare Investments, IFC
Dec-18
70.0
Series D
175.0
Corisol Holding, IFC, Omidyar Network India, HBM Healthcare Investments, Kae Capital, Maverick
Ventures, ES Investor, Peak XV Partners, Mauritius Africa Fund, Bill & Melinda Gates Foundation,
Pinpoint Venture, NewFlight, Nikhil Kumar Srivastava, Rubal Jain
Mar-18
15.2
Series C
108.0
Maverick Ventures, HBM Healthcare Investments, Peak XV Partners, Ghi Holding Marutius, Apex
Group
Jul-17
15.0
Series C
68.7
HBM Healthcare Investments, Maverick Ventures, Kae Capital, Omidyar Network India, Peak XV
Partners, Mauritius Africa Fund, Apex Group, Ghi Holding Marutius
Apr-16
16.0
Series B
40.4
Maverick Ventures, HBM Healthcare Investments, Omidyar Network India, Peak XV Partners, Apex
Group, Ghi Holding Marutius
Apr-15
6.0
Series A
Kae Capital, Omidyar Network India, Peak XV Partners, Intel, Deep Kalra
Source: JM Financial, Tracxn
Key investors
Exhibit 56.
Source: JM Financial, Tracxn
Revenue and EBITDA trends (INR mn)
Exhibit 57.
Source: JM Financial, Tracxn
Tata Group
67%
Others
12%
Founders
7%
Corisol Holding
5%
Maverick
Ventures
4%
HBM Healthcare
Investments
4%
ESOP Pool
1%
1,566
2,682
1,534
4,779
14,101
-25
-120
-271
-3,860
-4,835
FY19 FY20 FY21 FY22 FY23
Revenue EBITDA
Internet
21 February 2024
JM Financial Institutional Securities Limited
Page 28
Netmeds
Netmeds, a Chennai-based company, is a medicine e-commerce platform founded by
Pradeep Dadha in 2010. It is a subsidiary of Dadha & Co., a pharmacy brand with 100+ years
of experience. With family experience in manufacturing of drugs, Pradeep Dadha, CEO of
Netmeds, started the company to take advantage of e-retail.
The company offers a diverse range of prescription and over-the-counter drugs, and
healthcare and wellness products. It has a network of 1,000+ stores across Tier 1, 2 and 3
cities. Additionally, the platfrom also offers lab tests and online consultations with qualified
doctors.
In August 2020, Reliance Industries acquired a majority stake of 60% in Netmeds' parent
Vitalic for INR 6.2bn, suggesting an enterprise value of roughly INR 10bn, lower than the
total amount of funds raised until then. However, the company’s journey under Reliance
remains stop-start with bursts of aggression followed by nothing.
Funding history Exhibit 58.
Date
Round (USD mn)
Type
Post Money
Valuation (USD mn)
Investors
Sep-18
35.0
Series C
Tanncam Investment, Sistema Asia Capital, Daun Penh Cambodia Group
Mar-17
14.0
Series B
Tanncam Investment, Sistema Asia Capital
Oct-15
50.0
Series B
Orbimed
May-15
10.0
Series A
MAPE
Source: JM Financial, Tracxn
Key investors
Exhibit 59.
Source: JM Financial, Tracxn
Revenue and EBITDA trends (INR mn)
Exhibit 60.
Source: JM Financial, Tracxn
Reliance
Industries
100%
1,960
401
1,512
1,115
1,464
-1,711
-1,530
105
120
115
FY19 FY20 FY21 FY22 FY23
Revenue EBITDA
Internet
21 February 2024
JM Financial Institutional Securities Limited
Page 29
Urban Ladder
Established in 2012 by Ashish Goel and Rajiv Srivatsa, Urban Ladder emerged as an online-centric
furniture and décor retailer. However, over the years, the brand added offline stores as well in an
attempt to build omni-channel presence. The company provides curated furniture selections and
home décor solutions, along with incorporating augmented reality (AR) technology, enabling users
to visualize furniture within their homes prior to purchase.
The company’s product portfolio spans across all furniture essentials including sofas, beds, dining
tables, chairs, storage solutions, lighting, and décor, to help build a well-furnished home.
Additionally, it also ventured into interior design consultancy services in 2016 to help customers
create personalised and functional living spaces. Urban Ladder has made extensive use of social
media marketing to build its digital presence and engage with a wider audience.
In 2020, Urban Ladder was acquired in a distress sale by Reliance Group, an all-cash buyout of a
96% stake in for INR 1.82bn (~USD 24.5mn).
Funding history Exhibit 61.
Date
Round (USD mn)
Type
Post Money Valuation
(USD mn)
Investors
Apr-20
1.1
Series E
Sequoia Capital, Kalaari Capital, Elevation
Oct-19
3.2
Series E
186.0
Sequoia Capital, Elevation, Steadview, Bennett, Coleman
Sep-18
2.2
Venture Debt
Trifecta Capital
Jan-18
12.1
Series D
200.0
Sequoia Capital, Kalaari Capital, Elevation, Trifecta Capital, Steadview, ABG Capital
Feb-17
15.2
Series C
Sequoia Capital, Kalaari Capital, Elevation, Steadview, ABG Capital
Aug-16
3.0
Venture Debt
Trifecta Capital
Mar-15
65.0
Series C
148.0
Sequoia Capital, Kalaari Capital, Elevation, Trifecta Capital, TR Capital, Steadview, ABG Capital
Nov-14
0.3
Series B
63.1
RNT Associates
Jun-14
20.2
Series B
64.7
Kalaari Capital, Elevation, Steadview, MIT
Oct-13
5.0
Series A
11.7
Kalaari Capital, Elevation
Aug-12
1.0
Seed
Kalaari Capital, IndoUS Venture Partners
Source: JM Financial, Tracxn
Key investors
Exhibit 62.
Source: JM Financial, Tracxn
Revenue and EBITDA trends (INR mn)
Exhibit 63.
Source: JM Financial, Tracxn
Reliance Retail
96%
Others
4%
4,340
2,504
1,208
2,297
1,963
603
212
41
251
324
FY19 FY20 FY21 FY22 FY23
Revenue EBITDA
Internet
21 February 2024
JM Financial Institutional Securities Limited
Page 30
Pepperfry
Pepperfry had been established in 2011 by Ambreesh Murthy and Ashish Shah. Initially, it operated
as a horizontal online marketplace, catering to a range of categories like fashion and lifestyle.
However, in 2013, the platform’s focus shifted towards establishing presence in furnishings, home
decor, and related items online. In 2018, the company introduced its furniture rental service in top-
tier cities, and also collaborated with the online classifieds platform ‘Quikr’ to set up a furniture
exchange programme. In 2020, the company ventured into home interiors.
It has adopted an omni-channel strategy over the years, with both company-owned and franchise-
owned Pepperfry studios, supported by a logistics network ‘PepCart’. It operates like a managed
marketplace, allowing small and medium business artisans and merchants to sell their products via
the platform. It has also incorporated augmented reality (AR) features for users to visualise the
furniture in their homes prior to purchase.
Funding history Exhibit 64.
Date
Round (USD
mn)
Type
Post Money
Valuation (USD mn)
Investors
Jul-23
23.0
Series F
Norwest Venture Partners, Pidilite Ventures, Ananta Capital, Panthera, Bujorjee Family, Mukesh Sharma Family Trust,
Vedantam Family, Aarin Capital, Erste Wv Gutersloh, Brandon Capital, General Electric, Growth Equity Opportunity
Fund, DSP Mutual Fund, Puri Family Trust, Farida Khambata Family Trust, Lannuccillo Family Trust, Karen
Jenkinsjohnson Family Living Trust, Stonebridge Companies, Dhanvallabh Ventures, Broad Street Investment, Vsd
Holdings and Advisory, Bisleri, Ansuya Mody, Redi port, ACE, Mehratex, Mapro Foods, Angel Investors
Nov-21
10.0
Venture Debt
Norwest Venture Partners, Mukesh Sharma Family Trust, Burjorjee Family Trust, General Electric, Hema Ravichandar, V
Ravichandar
Oct-21
40.1
Series F
10.6
Bujorjee Family, Panthera, Stonebridge, Dsp Hmk Holdings, MMG Advisors, Zanvar Group, Pidilite Ventures, Norwest
Venture Partners, Mukesh Sharma Family Trust, Puri Family Trust, Farida Khambata Family Trust, Lannuccillo Family
Trust, Karen Jenkinsjohnson Family Living Trust, Vsd Holdings and Advisory, Bisleri, Ansuya Mody, Redi port, ACE,
Charishma Hotels, Mehratex, Mapro Foods, General Electric, Angel Investors
Feb-21
4.8
Venture Debt
Innoven Capital
Feb-20
40.0
Series F
Pidilite Ventures, Norwest Venture Partners, Goldman Sachs, Bertelsmann, State Street Global Advisors
Oct-18
0.1
Series E
Venture Catalysts
Mar-18
38.5
Series E
Bertelsmann India Investments, Norwest Venture Partners, Zodius, Goldman Sachs, State Street Global Advisors
Apr-17
Undisclosed
Venture Debt
Innoven Capital
Sep-16
31.3
Series E
0.3
Norwest Venture Partners, Zodius, Bertelsmann India Investments, Goldman Sachs
Jul-15
100.0
Series D
Zodius, Goldman Sachs, Norwest Venture Partners, Bertelsmann India Investments
May-14
16.2
Series C
Norwest Venture Partners, Bertelsmann India Investments, Bertelsmann
Apr-13
8.0
Series B
Norwest Venture Partners
Dec-11
5.0
Series A
Norwest Venture Partners
Source: JM Financial, Tracxn
Key investors
Exhibit 65.
Source: JM Financial, Tracxn
Revenue and EBITDA trends (INR mn)
Exhibit 66.
Source: JM Financial, Tracxn
Founders
1%
Norwest
Venture
Partners
26%
General Electric
12%
Broad Street
Investment
18%
Erste Wv
Gutersloh
16%
Angel Investors
3%
ESOP Pool
5%
Others
19%
2,068
2,442
2,213
2,642
2,904
-1,759
-1,121
-453
-1,234
-912
FY19 FY20 FY21 FY22 FY23
Revenue EBITDA
Internet
21 February 2024
JM Financial Institutional Securities Limited
Page 31
CaratLane
CaratLane, India’s first omnichannel jewellery brand, was founded in 2008 by Mithun Sacheti
and Srinivasa Gopalan. It was started with an objective of making beautiful, everyday-wear,
light-weight and budget-friendly jewellery accessible to everyone. Its product portfolio offers
a diverse range of items, with primary focus on diamond pendants and earrings, gold rings,
nose pins and gold bangles.
The company initially launched as an online retailer before opening physical stores. It also
launched international shipping to expand its geographical footprint and showcase India’s
craftsmanship and designs globally.
It joined forces with Tanishq, India’s leading jewellery brand through a strategic investment
by Titan Company. Titan first purchased a 62% stake in CaratLane for INR 3.57bn in July
2016. Additionally, it purchased the remaining 27% stake for INR 46.21bn in 2023, marking
one of the largest exits for a founder in India.
Funding history Exhibit 67.
Date
Round (USD mn)
Type
Post Money Valuation
(USD mn)
Investors
Dec-14
31.0
Series D
115.0
Tiger Global Management
May-13
15.0
Series C
Tiger Global Management
Mar-12
5.9
Series B
40.1
Tiger Global Management
Feb-11
6.0
Series A
19.9
Tiger Global Management
Source: JM Financial, Tracxn
Key investors
Exhibit 68.
Source: JM Financial, Tracxn
Revenue and EBITDA trends (INR mn)
Exhibit 69.
Source: JM Financial, Tracxn
Titan Company
100%
Others
0%
4,213
6,286
7,230
12,646
21,879
-325
65
441
862
2,116
FY19 FY20 FY21 FY22 FY23
Revenue EBITDA
Internet
21 February 2024
JM Financial Institutional Securities Limited
Page 32
Melorra
Melorra was established in 2016 by Saroja Yeramilli, as a designer and retailer of jewellery
online. Unlike conventional jewellery brands primarily focused on weddings and special
occasions, Melorra targets everyday needs. It designs and retails affordable and trendy
jewellery for everyday wear including casual-dos, parties and work. Focusing on
contemporary and western wardrobes, it uses 3D printing technology to ensure accurate and
elegant finish to products, enabling customers to access trendy jewellery at affordable prices.
Offering a diverse portfolio, Melorra’s jewellery is available in all shades of gold – yellow,
white and rose, and also incorporates gemstones. The company’s stylists and designers are
committed to staying ahead of the curve, consistently creating and launching new collections
that reflect global fashion trends.
Funding history Exhibit 70.
Date
Round (USD mn)
Type
Post Money Valuation
(USD mn)
Investors
May-22
2.0
Conventional Debt
310.0
SRF, Axis Mutual Fund, n+1
Apr-22
22.1
Series D
SRF, Param Ventures, Stride Ventures, Capitar Ventures, Axis Mutual Fund, n+1, Best, Capri Global
Capital, DSP Mutual Fund, Unity Small Finance Bank, Himansu P Bhalodia, Shuchi Kothari, Faisal
Mohammed Ababtain, Virendra Himatlal Parikh, Nitin Siddamsetty, Pragna Ashok Shah,
Ashokkumar Sobhagmal Patni, Gajendrakumar Sobhagmal Patni
Aug-21
Undisclosed
Angel
CapFort Ventures, Kavit Sutariya
Mar-21
24.0
Series C
183.0
9Unicorns, Symphony Asia Holdings, Venture Catalysts, Z Nation Lab, Burlingham, ValueQuest,
Capri Global Capital, LetsVenture, Hiranya, Trans Universal, Param Capital Research, Tarun Kataria,
Payal Bothra, Jyoti Choraria, Prashant Choraria, Shuchi Kothari, Hemang Raichand Dharamshi,
Ravindra Raichand Dharamshi, Kalpraj Damji Dharamshi, Mukul Mahavir Agrawal, Hemant Gupta,
Rohit Poddar, Virendra Himatlal Parikh, Puneet Bhatia, Pramod I, Dinesh Mavjibhai Lakhani, Faisal
Mohammed Ababtain
Sep-20
8.9
Conventional Debt
Shadow Ventures, Lightbox, Gopinath Ambadithody
Jun-20
13.2
Series C
159.0
Symphony Asia Holdings, Alteria Capital, Lightbox, Beeline Impex, Dabur, Faisal Mohammed
Ababtain, Shantaram Jonnalagadda, Gopinath Ambadithody
Oct-19
2.0
Conventional Debt
BlackSoil
Aug-19
1.5
Angel
Nirja Bharat Sheth, Arjun Ravi Sheth, Rahul Ravi Sheth, Nisha Javeri
Jun-19
5.5
Series A
70.7
Beeline Impex, Dabur, Deepika Menon, Sudhir Menon, Shuchi Kothari, Nirja Bharat Sheth, Rahul
Ravi Sheth, Arjun Ravi Sheth, Nisha Javeri
Feb-19
4.0
Series A
63.9
Lightbox, BlackSoil
Apr-18
4.0
Series A
15.2
Lightbox
May-17
3.0
Series A
15.0
Lightbox
May-15
5.0
Seed
Lightbox
Source: JM Financial, Tracxn
Key investors
Exhibit 71.
Source: JM Financial, Tracxn
Revenue and EBITDA trends (INR mn)
Exhibit 72.
Source: JM Financial, Tracxn
Lightbox
36%
ESOP Pool
16%
Founders
15%
Others
12%
Angel Investors
11%
Symphony Asia
Holdings
10%
174
899
790
3,646
-326
-583
-584
-1,038
FY19 FY20 FY21 FY22
Revenue EBITDA
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JM Financial Institutional Securities Limited
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APPENDIX I
JM Financial Institutional Securities Limited
Corporate Identity Number: U67100MH2017PLC296081
Member of BSE Ltd. and National Stock Exchange of India Ltd.
SEBI Registration Nos.: Stock Broker - INZ000163434, Research Analyst - INH000000610
Registered Office: 7th Floor, Cnergy, Appasaheb Marathe Marg, Prabhadevi, Mumbai 400 025, India.
Board: +91 22 6630 3030 | Fax: +91 22 6630 3488 | Email: jmfinancial.res[email protected] | www.jmfl.com
Compliance Officer: Mr. Sahil Salastekar | Tel: +91 22 6224 1073 | Email: sahil.salastekar@jmfl.com
Grievance officer: Mr. Sahil Salastekar | Tel: +91 22 6224 1073 | Email: instcomplianc[email protected]
Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Definition of ratings
Rating
Meaning
Buy
Total expected returns of more than 10% for stocks with market capitalisation in excess of INR 200 billion and REITs* and more than
15% for all other stocks, over the next twelve months. Total expected return includes dividend yields.
Hold
Price expected to move in the range of 10% downside to 10% upside from the current market price for stocks with market
capitalisation in excess of INR 200 billion and REITs* and in the range of 10% downside to 15% upside from the current market price
for all other stocks, over the next twelve months.
Sell
Price expected to move downwards by more than 10% from the current market price over the next twelve months.
* REITs refers to Real Estate Investment Trusts.
Research Analyst(s) Certification
The Research Analyst(s), with respect to each issuer and its securities covered by them in this research report, certify that:
All of the views expressed in this research report accurately reflect his or her or their personal views about all of the issuers and their securities; and
No part of his or her or their compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed in this research
report.
Important Disclosures
This research report has been prepared by JM Financial Institutional Securities Limited (JM Financial Institutional Securities) to provide information about the
company(ies) and sector(s), if any, covered in the report and may be distributed by it and/or its associates solely for the purpose of information of the select
recipient of this report. This report and/or any part thereof, may not be duplicated in any form and/or reproduced or redistributed without the prior written
consent of JM Financial Institutional Securities. This report has been prepared independent of the companies covered herein.
JM Financial Institutional Securities is registered with the Securities and Exchange Board of India (SEBI) as a Research Analyst and a Stock Broker having trading
memberships of the BSE Ltd. (BSE) and National Stock Exchange of India Ltd. (NSE). No material disciplinary action has been taken by SEBI against JM Financial
Institutional Securities in the past two financial years which may impact the investment decision making of the investor. Registration granted by SEBI and
certification from the National Institute of Securities Market (NISM) in no way guarantee performance of JM Financial Institutional Securities or provide any
assurance of returns to investors.
JM Financial Institutional Securities renders stock broking services primarily to institutional investors and provides the research services to its institutional
clients/investors. JM Financial Institutional Securities and its associates are part of a multi-service, integrated investment banking, investment management,
brokerage and financing group. JM Financial Institutional Securities and/or its associates might have provided or may provide services in respect of managing
offerings of securities, corporate finance, investment banking, mergers & acquisitions, broking, financing or any other advisory services to the company(ies)
covered herein. JM Financial Institutional Securities and/or its associates might have received during the past twelve months or may receive compensation from
the company(ies) mentioned in this report for rendering any of the above services.
JM Financial Institutional Securities and/or its associates, their directors and employees may; (a) from time to time, have a long or short position in, and buy or sell
the securities of the company(ies) mentioned herein or (b) be engaged in any other transaction involving such securities and earn brokerage or other
compensation or act as a market maker in the financial instruments of the company(ies) covered under this report or (c) act as an advisor or lender/borrower to,
or may have any financial interest in, such company(ies) or (d) considering the nature of business/activities that JM Financial Institutional Securities is engaged in,
it may have potential conflict of interest at the time of publication of this report on the subject company(ies).
Neither JM Financial Institutional Securities nor its associates or the Research Analyst(s) named in this report or his/her relatives individually own one per cent or
more securities of the company(ies) covered under this report, at the relevant date as specified in the SEBI (Research Analysts) Regulations, 2014.
The Research Analyst(s) principally responsible for the preparation of this research report and their immediate relatives are prohibited from buying or selling debt
or equity securities, including but not limited to any option, right, warrant, future, long or short position issued by company(ies) covered under this report. The
Research Analyst(s) principally responsible for the preparation of this research report or their immediate relatives (as defined under SEBI (Research Analysts)
Regulations, 2014); (a) do not have any financial interest in the company(ies) covered under this report or (b) did not receive any compensation from the
company(ies) covered under this report, or from any third party, in connection with this report or (c) do not have any other material conflict of interest at the time
of publication of this report. Research Analyst(s) are not serving as an officer, director or employee of the company(ies) covered under this report.
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JM Financial Institutional Securities Limited
Page 34
While reasonable care has been taken in the preparation of this report, it does not purport to be a complete description of the securities, markets or
developments referred to herein, and JM Financial Institutional Securities does not warrant its accuracy or completeness. JM Financial Institutional Securities may
not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. This
report is provided for information only and is not an investment advice and must not alone be taken as the basis for an investment decision.
This research report is based on the fundamental research/analysis conducted by the Research Analyst(s) named herein. Accordingly, this report has been
prepared by studying/focusing on the fundamentals of the company(ies) covered in this report and other macro‐economic factors. JM Financial Institutional
Securities may have also issued or may issue, research reports and/or recommendations based on the technical/quantitative analysis of the company(ies) covered
in this report by studying and using charts of the stock's price movement, trading volume and/or other volatility parameters. As a result, the
views/recommendations expressed in such technical research reports could be inconsistent or even contrary to the views contained in this report.
The investment discussed or views expressed or recommendations/opinions given herein may not be suitable for all investors. The user assumes the entire risk of
any use made of this information. The information contained herein may be changed without notice and JM Financial Institutional Securities reserves the right to
make modifications and alterations to this statement as they may deem fit from time to time.
This report is neither an offer nor solicitation of an offer to buy and/or sell any securities mentioned herein and/or not an official confirmation of any transaction.
This report is not directed or intended for distribution to, or use by any person or entity who is a citizen or resident of or located in any locality, state, country or
other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject JM Financial Institutional
Securities and/or its affiliated company(ies) to any registration or licensing requirement within such jurisdiction. The securities described herein may or may not be
eligible for sale in all jurisdictions or to a certain category of investors. Persons in whose possession this report may come, are required to inform themselves of
and to observe such restrictions.
Additional disclosure only for U.S. persons: JM Financial Institutional Securities has entered into an agreement with JM Financial Securities, Inc. ("JM Financial
Securities"), a U.S. registered broker-dealer and member of the Financial Industry Regulatory Authority ("FINRA") in order to conduct certain business in the
United States in reliance on the exemption from U.S. broker-dealer registration provided by Rule 15a-6, promulgated under the U.S. Securities Exchange Act of
1934 (the "Exchange Act"), as amended, and as interpreted by the staff of the U.S. Securities and Exchange Commission ("SEC") (together "Rule 15a-6").
This research report is distributed in the United States by JM Financial Securities in compliance with Rule 15a-6, and as a "third party research report" for
purposes of FINRA Rule 2241. In compliance with Rule 15a-6(a)(3) this research report is distributed only to "major U.S. institutional investors" as defined in Rule
15a-6 and is not intended for use by any person or entity that is not a major U.S. institutional investor. If you have received a copy of this research report and are
not a major U.S. institutional investor, you are instructed not to read, rely on, or reproduce the contents hereof, and to destroy this research or return it to JM
Financial Institutional Securities or to JM Financial Securities.
This research report is a product of JM Financial Institutional Securities, which is the employer of the research analyst(s) solely responsible for its content. The
research analyst(s) preparing this research report is/are resident outside the United States and are not associated persons or employees of any U.S. registered
broker-dealer. Therefore, the analyst(s) are not subject to supervision by a U.S. broker-dealer, or otherwise required to satisfy the regulatory licensing
requirements of FINRA and may not be subject to the Rule 2241 restrictions on communications with a subject company, public appearances and trading
securities held by a research analyst account.
Any U.S. person who is recipient of this report that wishes further information regarding, or to effect any transaction in, any of the securities discussed in this
report, must contact, and deal directly through a U.S. registered representative affiliated with a broker-dealer registered with the SEC and a member of FINRA. In
the U.S., JM Financial Institutional Securities has an affiliate, JM Financial Securities, Inc. located at 1325 Avenue of the Americas, 28th Floor, Office No. 2821,
New York, New York 10019. Telephone +1 (332) 900 4958 which is registered with the SEC and is a member of FINRA and SIPC.
Additional disclosure only for U.K. persons: Neither JM Financial Institutional Securities nor any of its affiliates is authorised in the United Kingdom (U.K.) by the
Financial Conduct Authority. As a result, this report is for distribution only to persons who (i) have professional experience in matters relating to investments
falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended, the "Financial Promotion Order"), (ii)
are persons falling within Article 49(2)(a) to (d) ("high net worth companies, unincorporated associations etc.") of the Financial Promotion Order, (iii) are outside
the United Kingdom, or (iv) are persons to whom an invitation or inducement to engage in investment activity (within the meaning of section 21 of the Financial
Services and Markets Act 2000) in connection with the matters to which this report relates may otherwise lawfully be communicated or caused to be
communicated (all such persons together being referred to as "relevant persons"). This report is directed only at relevant persons and must not be acted on or
relied on by persons who are not relevant persons. Any investment or investment activity to which this report relates is available only to relevant persons and will
be engaged in only with relevant persons.
Additional disclosure only for Canadian persons: This report is not, and under no circumstances is to be construed as, an advertisement or a public offering of the
securities described herein in Canada or any province or territory thereof. Under no circumstances is this report to be construed as an offer to sell securities or as
a solicitation of an offer to buy securities in any jurisdiction of Canada. Any offer or sale of the securities described herein in Canada will be made only under an
exemption from the requirements to file a prospectus with the relevant Canadian securities regulators and only by a dealer properly registered under applicable
securities laws or, alternatively, pursuant to an exemption from the registration requirement in the relevant province or territory of Canada in which such offer or
sale is made. This report is not, and under no circumstances is it to be construed as, a prospectus or an offering memorandum. No securities commission or
similar regulatory authority in Canada has reviewed or in any way passed upon these materials, the information contained herein or the merits of the securities
described herein and any representation to the contrary is an offence. If you are located in Canada, this report has been made available to you based on your
representation that you are an “accredited investor” as such term is defined in National Instrument 45-106 Prospectus Exemptions and a “permitted client” as
such term is defined in National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations. Under no circumstances is the
information contained herein to be construed as investment advice in any province or territory of Canada nor should it be construed as being tailored to the
needs of the recipient. Canadian recipients are advised that JM Financial Securities, Inc., JM Financial Institutional Securities Limited, their affiliates and authorized
agents are not responsible for, nor do they accept, any liability whatsoever for any direct or consequential loss arising from any use of this research report or the
information contained herein.
