Flipkart separated from PhonePe🤝🏻; Sequoia-Accel lead VC investments💰; Adani effect propels India to become the best-performing stock market📊
Flipkart completes full separation, Sequoia and Accel lead VC investments, Adani effect propels India to become best, Funding Deals and more.
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Flipkart completes full separation of PhonePe🤝🏻
Flipkart has completely separated its business operations from PhonePe, the two entities announced on Friday, saying the move would allow both to chart their own growth paths.
As part of this transaction, existing Flipkart Singapore and PhonePe Singapore shareholders, led by Walmart, have bought shares directly in PhonePe India.
This completes the process – which began earlier this year – of making PhonePe a fully India-domiciled company.
The business groups will now operate as independent entities, with Walmart remaining the majority shareholder in both. The US retailer acquired a 77% stake in Flipkart for $16 billion in 2018; PhonePe was part of the Flipkart group then.
Flipkart’s valuation will be reduced from $37.6 billion to around $33 billion.
Amid funding winter, Sequoia and Accel lead VC investments💰
Sequoia Capital led venture capital investments in India in 2022, completing 71 deals as of November. However, it was 30% fewer than the 103 it struck in the year earlier, data from the market analytics platform Venture Intelligence.
Venture capital firms also faced a funding crunch in 2022, leading them to reduce ambitious bets. VC firms closed 1,075 deals in India in 2022 until the end of November, compared with 1,212 transactions in the same period the previous year.
However, deal sizes saw a significant decrease in 2022 despite a smaller drop in the number of transactions due to a decline in late-stage funding activity. As a result, venture capital investments by size fell about 34% to $23.2 billion in 2022 (as on 30 November) from $35.4 billion in the same period the previous year.
Hot Shorts⚡
Data analytics company Tredence has raised $175 million in Series B funding from Boston-based private equity giant Advent International.
Northern Arc Investments Managers (NAIM), the fund management vertical and a wholly-owned subsidiary of debt financiers, Northern Arc Capital, has raised Rs 65 crore from the Belgian Investment Company for Developing Countries (BIO).
Digital engineering and transformation service provider INT. (Indus Net Technologies) has made a strategic investment in digital consultancy firm Codebuddy, which enables SMEs and startups to build their businesses online and scale.
Adani effect propels India to become the best-performing stock market in the world in 2022📊
India is set to rank among this year’s best-performing major stock markets globally, overcoming concerns about higher interest rates and an economic slowdown that has mired peers.
The S&P BSE Sensex Index is up 3% so far in 2022, the biggest gain in the world after measures in Singapore and Indonesia. A solid run of earnings buoyed key Indian benchmarks to record levels, making the market larger than the UK.
This year’s winners include shares linked to billionaire Gautam Adani and banks boosted by a sharp recovery in credit demand. Some of the biggest losers were shares of technology firms that languished following their public debuts and software outsourcing providers that faced concerns of a potential slump in overseas demand.
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“The whole world is a series of miracles, but we're so used to them we call them ordinary things.”
- Hans Christian Andersen
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