Fund Crunch for Indian Start Ups?

Two decades after the infamous dotcom burst, India start ups are staring at a grave fund crunch. The global economic slowdown and the plummeting of IT stocks in the US market have created a hostile environment for the new-age companies looking for funds here. After peaking at $17 billion in Jul-Sep quarter of 2021, the funding has lost its momentum and reported a steady decline quarter on quarter.

What has crippled the drive is the decision by international investors and venture capitalists to go slow on new deals and commitments amid the raging global slowdown.

Several large investors such as Tiger Global and SoftBank have significantly pulled back from the market. In October, total funding slipped to $1.34 billion, sharply lower than the $4.2 billion raised by start-ups in the corresponding month last year. The companies that raised money at sky-high valuations in 2021 - over 20-25 times their annual revenues - have seen the multiple dwindle in 2022. So far, 2022 has seen a total of $22 billion in funding compared to $42 billion raised in 2021, a blockbuster year with over 1,500-plus deals.

Edutech major Byju's is a classic case. India's highest-valued start-up found itself in trouble and struggled to close the deal it entered into with Akash Educational Services. Its delayed audited results for 2020-21 threw a shocking surprise, with losses soaring nearly 20-fold to Rs.4,589 crores. The company had to lay off several of its staff. In October, it, however, raised $250 million from its existing investors, with the valuation remaining unchanged at $22 billion.

Several other edutech and fintech companies faced a similar situation as the number of funding rounds shrank month-on-month in 2022, with a steady fall in average ticket size. It has been a long struggle for them to save their valuations from slipping down. As a start-up investor rightly said, India's new-age companies ought to prioritise value creation over valuation and chase 'profit pools' rather than 'capital pools' as they scale up. Certainly, the 'funding' winter is unlikely to go away in the next two to three quarters and it will be a big challenge for several start-ups as they continue to book losses. Some unicorns may see a change in their status with the rupee fall jeopardising their dollar valuatios. Some others will have to shed the growing image that they are valued on shaky metrics. The fund crunch and the rupee fall have decelerated the evolution of India's unicorn club.

My take

A scary situation and everyone of us hopes desperately for more funds and the fall of the rupee arrested!

Courtesy.

The editorial, NIE.

Tailpiece.

Got up at a 10' past 6, the chores and was ready by a 10' to 10.

A quiet Friday.

"Kodathi Vilakku" - High Court tells officers to skip it.

The Kerala High has ordered judicial officers in Thrissur district not to be actively involved in organising 'Kodathi Vilakku', a century-old annual event held at Guruvayur temple, in future.

Kodathi Vilakku, like 'SBI Vilakku' and 'Devaswom Employees Vilakku', is an annual program held at the Guruvayur temple during the Ekadasi festival. It is hosted by an organising committee having members of Chavakkad Munsiff Court Bar Association.

In the order issued on 01 Nov, the HC said courts cannot be seen engaging in activities that promote a particular religion. 

Guruvayur Ekadasi falls on 03 Dec, this year, while the vilakku offerings will begin from tomorrow. Kodathi Vilakku is scheduled for 05 Nov.

My take

It's a case of 'Much ado about nothing'. An unnecessary controversy over a non issue!

Tailpiece.

Got up at 6, Lekha gets ready and goes for 'darshan' at the Guruvayur temple - around a quarter to 8 - after quite a while.

The maid fetches up earlier than normal.

Lekha goes to the ration stand to buy our dues for the month. The maid assists her.

SCO Meet : India Stays Out of China Move on BRI.

At the 21st meeting of the Shanghai Cooperation Organisation (SCO) member-states held virtually yesterday, India stayed out of the joint statement reference to China's Belt and Road Initiative (BRI) for which other countries affirmed their support.

The countries backing were Kazakstan, Kyryz Republic, Pakistan, Russia, Tajikistan and Uzbekistan. They also spoke about jointly implementing the project, which included efforts to link the construction of the Eurasian Economic Union and BRI. The meeting was chaired by the premier of China's State Council Li Kegiang.

In an apparent reference to China's controversial BRI project, our EAM said, "Connectivity projects should respect the sovereignty and territorial integrity of member-states and respect international law. Fair market access is the only way to move forward. The Chabahar port and the International North South Transport Corridor would become enablers for better connectivity in the SCO region".

The International North South Transport Corridor that combines road, rail and maritime routes connecting Russia and India via Central Asia and Iran. It links the Indian Ocean to the Caspian Sea via the Persian Gulf onwards into Russia and Northern Europe.

The Indian EAM also spoke about Mission LiFE launched by PM Narendra Modi in Gujarat recently which envisions replacing the prevalent "use and dispose" economy by a circular economy.

India also highlighted that in 2023 the UN International Year of Millets, India intends foster greater cooperation with SCO member-states on countering the food crisis.

Our total trade with SCO members is only $141 billion, which has the potential to increase manifold. Fair market access is to our mutual benefit and will only move forward.

India has repeatedly registered its protests over China-Pakistan Economic Corridor (CPEC), the flagship project of China's BRI as it passes through Pakistan-occupied Kashmir (PoK) which is Indian territory.

The SCO is seen as an eastern counter-balance to NATO and India's membership has allowed her to push effective action in combating terrorism and security issues. The SCO's significance for India mainly lies in economics and geopolitics with member states. 

SCO is also a potential platform to advance India's Central  Asia policy.

My take

India is on a strong wicket here.

Courtesy. Yeshi Seli in the NIE

Tailpiece.

Got up at a quarter past 6, the chores and was ready by a 10' to 10. Earlier, carried out the usual Wednesday aarathi of the house.

Went to town and Mohandas was my faithful sa'arthi for the entire journey. Finished up work at the SBI and ICICI banks. The Life Certificate activity was done.

Went for the Mohanlal starrer 'Monster' but saw the Kannada 'Kantara' instead at Devaki. We, both, liked it!

Kittu was given his supper at sunset. 

We are passing through exciting times!

Deprecating the regressive and invasive "two-finger test" conducted on rape survivors, the Supreme Court on Monday asked the Centre to ensure the abhorrent practice stopped forthwith. The top court has also called for reviewing curriculum in medical schools to ensure that the two-finger test is not prescribed as one of the procedures to be adopted while examining rape survivors.

Justices DY Chandrachud and Hima Kohli said the pre-vaginum test, purportedly conducted to determine whether the survivor is sexually active, has no scientific basis and instead revictimises women who may have been raped. 

Expressing concerns over the continued practice despite the same being declared as violative of the survivors' right to privacy, integrity and dignity by the top court in 2013, the bench said it is patriarchal and sexist to suggest that a woman can't be believed when she states that she was raped, just because she is sexually active. 

Anyone who does the test while examining a survivor shall be guilty of misconduct.

Whether a woman is "habituated to sexual intercourse" or "habitual to sexual intercourse" is irrelevant for the purposes of determining whether the ingredients of Section 375 of the IPC are present in a particular case. The so-called test is based on the incorrect assumption that a sexually active woman cannot be raped.

Nothing could be further from the truth - a woman's sexual history is wholly immaterial while adjudicating whether the accused raped her. Further, the probative value of a woman's testimony does not depend upon her sexual history.

My take

A great decision that dumps the existent inhuman treatment of rape survivors!

Courtesy. The NIE

Tailpiece.

Got up around a quarter past 6, the chores and was ready by a 10' to 10.

Tobias, the cooking range servicing rep, came by around a half past 3 and had serviced the range.

A quiet evening thereafter.

Airbus-Tata Project a Major Leap in Make-in-India.

Prime Minister Narendra Modi, on Sunday, laid the foundation stone of a manufacturing facility in Vadodara, Gujarat for the production of C-295 medium transport aircraft for the Indian Air Force. 

The aircraft will be produced by a consortium of European aerospace major Airbus and the Tata Group. It is the first project of its kind in which a military aircraft will be manufactured in India by a private company. The total cost of the project is Rs.21,935 crores.

India is one of the fastest-developing aviation sectors. India is soon set to enter the list of the top three nations in terms of air traffic and in the coming 10-15 years, India will require 2,000passenger and cargo aircraft.

The approval of the CCS for the procurement of fifty-six C-295 MW transport aircraft from Airbus Defence and Space SA, Spain for the IAF was accorded in Sep 2021.

The aircraft will strengthen the logistic capabilities of the IAF. It can carry either 71 passengers or 44 fully equipped paratroopers or 24 stretchers.

My take

Another feather in India's cap! A great boost for the fledgling Military-Industrial Complex of the country. Coming up of associated industries and enormous job opportunities are the resulting bonanzas.

Tailpiece.

Got up at a quarter past 6, the chores and was ready by a quarter to 10.

Lekha had gone to the Mammiyur Siva kshetram and her return, picked up fish for Kittu and his family.

Latha had come by and left by about 5 in the evening.

The Art of Making the Most of Every Moment.

The book of Ichigo Ichie : The Japanese Way. The friendly face of Carpe Diem.

The Carpe Diem philosophy is commonly associated with excess, with spending money as if there were no tomorrow, but the call to live in the moment also points toward the most beautiful and essential things in life.

A philosopher once said humans are mortals who act as if they are going to live forever, but rather than making us live like gods, this opens the way to the enemies of the present.

* Prioritising the urgent (for other people) over the important (for us).

* Postponing what we most want to do again and again, as if we had unlimited time.

* Thinking that the conditions aren't right to do but that in the future they will be.

* Boycotting the present with feelings of resentment, sadness and worry that prevent us from enjoying it.

In the face of these ills, carpe diem, like Buddhism, reminds us of the impermanence of things. Nothing we love will last forever. Thus, every moment could be the last opportunity.

In this sense, ichigo ichie (translated : 'Once a meeting' and also 'in this moment, an opportunity') becomes the friendly face of carpe diem, since instead of emphasising the fact that one day we will die, it reminds us that today we can live.

My take

However much one tries, there would be moments in one's life which given another opportunity would be redone if it was possible! In other words, regrets are a part and parcel of one's life. So, living for the moment or living every moment is a wise way to go about doing things, to reduce heartburns for the future!

Tailpiece.

Got up at a half past 6, the chores. Watched 'Rangoli' which was an SD Burman special; enjoyed every song in it.

Washing machinex of bed linen.

A quiet, lazy Sunday.

Bravo Zulu, BCCI!

In the Indian Navy 'BZ' (Bravo Zulu) is conveyed to anyone who does a fantastic job. In a similar fashion, the BCCI (Board of Control for Cricket in India) has taken a historic decision by announcing gender parity in cricketers' fee. And hence, BZ to the Board!

In a novel initiative that would usher in a new era in women's cricket, the BCCI announced there will be parity in fee for all international matches irrespective  of gender. Now on, the centrally-contracted women cricketers will get the same match fee as their male counterparts. This comes days after the announcement of hosting of the Women's Indian Premier League next year.

The decision sets the platform to grow and develop cricket, the Board feels.

According to the revised match fee structure, Indian women cricketers will get Rs.35 lakhs per Test Match, Rs.6 lakhs in an ODI and Rs.3 lakhs for T20I. (They were getting Rs.2.5 lakhs for Tests and Rs.1 lakh for ODIs and T20Is as match fee so far).

The world's richest body is not the first nation to bring in parity in fee structure as New Zealand Cricket already announced earlier this year.

My take

Definitely a great move! Roger Binny, take a bow for your first and important decision on taking over as chief of BCCI.

Tailpiece.

Got up around a half past 6, the chores and was ready by 10.

A quiet Saturday.