Alteria Capital, which provides loans to startups, is one the three large companies that dominates India’s venture debt market. It was started by Vinod Murali and Ajay Hattangdi, former executives of Temasek-owned InnoVen Capital, which is among the three major venture debt firms in India. The third in the pack being Trifecta Capital. Venture debt or venture lending, simply explained, is debt financing typically for venture-backed companies. Unlike traditional bank loans, venture lending caters to startups and growth companies that may not necessarily have positive cashflow or hard assets to show as collateral.

“Venture dent is a mechanism for founders to reduce dilution when everything else is attractive. This is not a bailout product, this is not a last resort. It is the way you can optimise a good situation and make it even better,” says Alteria Capital Managing Partner Vinod Murali, during a late August chat with YourStory Founder and CEO Shradha Sharma.

Alteria Capital has 28 companies in its portfolio including the likes of hyperlocal delivery startup Dunzo, online learning platform Toppr, student housing startup Stanza Living, scooter rental platform Vogo, and digital lender Lendingkart.

“It (venture debt) provides you insurance, it provides you time, it gives you that extra oxygen which you may need, that you don’t know if you have a necessity (for) or not, up front. In February, nobody thought the rest of the year was going to play out like this, nobody would have forecast that,” says Vinod. 

As the novel coronavirus or COVID-19 continued to spread rapidly across the world, it was declared a global pandemic by the World Health Organization (WHO) in March. The unforeseen event and its adverse impact has left several businesses and economies across the globe reeling. The International Monetary Fund (IMF) has called it a “crisis like no other’ and its June projection estimates the global economy to grow at – 4.9 per cent in 2020, 1.9 percentage points below its April 2020 World Economic Outlook (WEO) forecast. The COVID-19 pandemic has had a more negative impact on activity in the first half of 2020 than anticipated, and the recovery is projected to be more gradual than previously forecast, according to the IMF

“It’s like an umbrella you buy before it starts raining, once it starts raining everything gets expensive. Before it starts raining you grab it, keep it. If you don’t use it, great for you, if you use it, you’ve always had it with you — that's venture debt. It’s a debt product, it’s a monthly repayment of principal and interest but it gives a little bit more time for founders,” explains Vinod, who is an IIT-IIM alumnus.

The venture debt market in India is seeing transactions upwards of 300 million to 400 million in a year, with 80 per cent to 85 per cent of it being financed through the three large players Alteria, InnoVen and Trifecta, according to the former Citibank executive.

ALSO READ

How two college friends built a startup that turned profitable in under a year, raised $2M

Capital in the times of COVID-19

The pandemic has been a difficult time for most businesses, as cashflow has dried up for many. Capital has been critical for several companies to stay alive. While debt financing may be one of the options to raise capital, it could also sound the death knell for some, warns Vinod.

He explains, “While there is a fairly overwhelming need for capital I think it’s also important to distinguish as to what may be appropriate (depending on) what kind of companies, what kind of situation, because you can take a lot of equity and it will be sub-optimal (and) you don’t kill the company but if you take a lot of debt you can actually kill the company. So one needs to be very careful both founders and lenders alike in figuring out what the right fit is.”

Money

Taking on too much debt can kill a company, warns Vinod.

Vinod stresses upon the fact that venture debt is definitely not the right fit for all in need of capital.  “It’s not meant for all companies, I’ll be the first one to say that. Historically, we have seen 25 per cent -30 per cent of funded startups to be appropriate for venture debt and it may seem like an astonishingly small number but the reason is every single company that has taken venture funding is equity funded,” he says.

Alteria spent March to May largely figuring out what its portfolio needed. “We were in firefighting mode, which I think is true for most of the ecosystem,” says Vinod while adding that since June there’s been a lot more understanding on what’s working and where the damage is most heavy. “So we have also managed to calibrate and figure out which are the newer areas in which we can participate and help provide more capital to companies,” he says.

Unsurprisingly, edtech is one the sectors doing well through the pandemic and thus attracting deals from investors. However, even if a startup is part of a sector that is seeing tailwinds, it is important to have a differentiation factor to be able to seal deals with potential investors, according to Vinod.

“It’s not just that if you are an edtech company, everybody wants to give you money. You have to assure you are a good edtech company and you are showing some differentiation. There is a reason why companies are attractive and it’s not just the market,” he says.

Watch the full conversation here:

ALSO READ

‘Abhi toh sirf trailer hai, picture abhi baaki hai’: WOW Co-founder

During the current times, raising venture debt over venture funding may make sense for several startups, as the pandemic has hit many of their valuations hard. Raising capital through venture funding is likely to force many startups to dilute their equity heavily, making venture debt a more attractive option.

For businesses from the worst hit sectors, however, there is little or no interest from venture capital and venture debt firms alike. “There are some sectors that are fairly badly hit that involve physical community, which involves interaction necessarily for the way in which the way the business is done and this could be across travel, hospitality, offline retail, and all of those are going to take a long time to recover. And we are seeing low to no equity interest in those spaces, so consequently from a venture debt perspective these companies would be difficult to target right now,” says Vinod.

Want to make your startup journey smooth? YS Education brings a comprehensive Funding Course, where you also get a chance to pitch your business plan to top investors. Click here to know more.

Original Source: yourstory.com

Fintech platform MobiKwik on Tuesday said it has promoted Chandan Joshi as the co-founder and CEO (Chief Executive Officer) of the company's payments business.

Joshi has been part of the MobiKwik leadership team for the last 2.5 years as senior vice president, payments, a statement said.

"This is the first time the company has bestowed the co-founder title on anyone outside the original founding team. The company has kickstarted its IPO 2022 campaign with this major appointment," it added.

Previously, Joshi had founded Paketts, a last-mile logistics service company, and exited the business after Paketts was acquired by Nuvo Logistics (Peppertap) in 2017. Prior to being an entrepreneur, Chandan was a financial trader in global financial markets with Credit Suisse in London and Hong Kong.

MobiKwik co-founder and CEO, Bipin Preet Singh, said:

"Chandan has demonstrated all the right traits that we look for in a business leader – he leads from the front, is invested in his teams, is tenacious in driving business results and in closing large strategic deals. He has been a strong growth driver for MobiKwik and we want him to partner with us as a co-founder in the overall build-out of the company."

In its recently published financial year 2020 annual report, the company had reported net revenue growth of 133 percent year-on-year to Rs 379 crore, and cash EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) loss reduction of 91 percent y-o-y to Rs 8.5 crore.

"My journey with MobiKwik so far has been very fulfilling – I joined in the aftermath of demonetisation and my first assignment was organising the retail payments business, then to run ecommerce payments and finally to grow all of the Payments business…I am confident that together we will be able to profitably grow MobiKwik and take the company public," Joshi said.

ALSO READ

Also Read

OYO, Bira 91, Mobikwik — 10 Delhi-NCR startups that bagged funding during the COVID-19 lockdown

As CEO of the Payments business, Joshi will take on complete ownership of the company's flagship Payments Business which drives 75 percent of the revenues. While he was already driving the business (Sales, Marketing, Product, Engineering) in his existing role, all functions in the payments business unit will now report into him, the statement said.

MobiKwik has two business verticals – payments and fintech (includes credit and insurance).

Bipin Preet Singh is the CEO of the overall business.

Edited by Megha Reddy

Want to make your startup journey smooth? YS Education brings a comprehensive Funding Course, where you also get a chance to pitch your business plan to top investors. Click here to know more.

Original Source: yourstory.com

Route Mobile, a cloud communications service provider, on Tuesday said it had garnered Rs 180 crore from 15 anchor investors ahead of its initial share-sale offer that opens for public subscription on Wednesday.

Goldman Sachs, Franklin Templeton Mutual Fund, SBI Life Insurance, Kuwait Investment Authority, Vantage Equity Fund, Axis Mutual Fund, Macquarie, and SBI Mutual Fund are among the anchor investors, according to information available with stock exchanges.

Route Mobile has finalised allocation of 51,42,856 shares at Rs 350 apiece to 15 anchor investors. Based on the price, the total proceeds would be to the tune of Rs 180 crore, it added.

The company proposes to raise Rs 600 crore through the initial public offer (IPO), which comprises fresh issue of shares worth Rs 240 crore and an offer for sale (OFS) of Rs 360 crore by promoters Y Sandipkumar Gupta and Rajdipkumar Gupta.

A price band of Rs 345-350 apiece per share has been fixed for the IPO that will open on September 9 and conclude on September 11.

The company proposes to utilise the net proceeds towards funding for repayment or pre-payment, in full or part, of certain borrowings of the company; acquisitions and other strategic initiatives; purchase of office premises in Mumbai; and general corporate purposes.IPO

Image Source: Shutterstock

ALSO READ

Also Read

Happiest Minds Technologies IPO subscribed 8.40 times on the second day of bidding

The company received approval from markets regulator Sebi in December 2019 to float IPO.

The cloud communications service provider had initially filed for its IPO in January 2018. Later it refiled its document in October 2019. According to market sources, the company failed to bring its IPO even after receiving approval in 2018 because of unfavourable market conditions.

ICICI Securities, Axis Capital, Edelweiss Financial Services, and IDBI Capital Markets & Securities are the managers to the issue.

Route Mobile does not have a direct comparable listed peer in India. It will become the second firm in the larger mobile communication services after Affle India.

(Disclaimer: Additional background information has been added to this PTI copy for context)

Want to make your startup journey smooth? YS Education brings a comprehensive Funding Course, where you also get a chance to pitch your business plan to top investors. Click here to know more.

Original Source: yourstory.com

Plumbing emergencies can occur when we least expect them. After all, that’s what the emergency is all about. Knowing what to do when there’s an emergency in your house is key to smiling again. 

The best course of action is to find solutions to the problem. You need to find an emergency plumber in your city. A plumber you can rely on to quickly attend to your call with urgency.

According to the Design Criteria for Sewers and Watermelons that was released by the City of Toronto, “plumbing emergencies happen all the time. Whether it’s on the kitchen, bathroom, or pipes, attending to it with urgency can prevent further costly damage.”

An emergency plumber should be able to fix problematic sinks, drains, pipes, and toilets — and restore your home as it was before the emergency. There are thousands of plumbers in your city right now, the real challenge is knowing which professional to trust to have a successful outcome.

It’s not enough to choose a plumber next to your house, make sure you analyze their plumbing services. Make sure the plumber you eventually hire actually offers emergency plumbing repair services. A general plumbing company may not get the job done.

You don’t want to risk calling a plumber who will not treat your case with any urgency. Find an emergency plumber in Toronto, CA that offers the exact services you need. This is a great way to narrow down the list of local plumbers that may be vying to do the job.

That being said, here are 8 effective ways (and questions) you should ask an emergency plumber:

Verify Insurance Coverage

According to Adrian Mak, “Plumbers insurance can provide financial protection for your business if someone is injured by your business or if your business damages property.”

You want to make sure you’re hiring an emergency plumbing company that has insurance coverage. 

Most plumbing companies will carry two kinds of insurance:

Workers’ compensation insurance
Liability insurance

So you should ask about these two types of insurance coverage before moving forward. If you’re wondering what the difference is, here it is in a nutshell:

Workers’ compensation is a type of insurance coverage that attends to works who are injured while executing their duties at work. There should be adequate payout provisions for them.

Liability insurance coverage, on the other hand, covers the plumbing professional for damages that his team caused on your home or belongings while performing their duties. If an insurance company causes any form of damage to your home, you can capitalize on the liability policy to get the necessary backup and repairs.

 

It may not seem necessary to check for insurance coverage with a plumbing company you’re hiring to do emergency repair services, but you should do it to save both the plumber, the workers, and your home. 

 

Emergency plumbing repairs require urgent action, which could lead to unintended consequences if the plumber isn’t experienced or lacks the right tools for the repairs.

Cost may be the only factor you might want to reconsider when asking about insurance coverage from your plumbing company.

This is because it’ll be more expensive when you hire a plumber with insurance coverage than plumbers that don’t have it. But the added cost will be well worth it there’s a damage on your home/property or the workers get injured.

Ask Around For Recommendations

If you don’t have a reliable plumbing company to call, you should ask around for recommendations from family members, neighbors, co-workers, and friends. 

If you know or have heard good things about a local plumber who provides reliable results, you can consult them as well. 

Recommendations from those you know are invaluable because they’re often unbiased and objective. 

So you’ll be given all the pertinent information from the person recommending the professional to you. When this happens, you’ll be able to know firsthand what you can expect in terms of pricing, overall efficiency, and above all, customer service.

How is the Pricing Determined?

Another factor that will guarantee that you hire the best emergency plumber in your city is the pricing model. Is it hourly or fixed? Since the average cost to hire a plumber is between $125 – $350, it’s best to know how this works out hourly or otherwise.

Sometimes, a friend or co-worker can refer a reputable emergency plumber to you. This might be the best way to get access to plumbers who can get the job done the first time.

A plumber may offer both hourly and fixed pricing structures but it all depends on what the client wants. The best way to save some money, though, is to stick with fixed pricing. Because if a plumbing company estimated that the project could take 2 hours to fix, what’s the guarantee they’ll deliver an excellent result?

You want to avoid surprise bills when the repair job is completed. If the plumbing company you hire insists on an hourly pricing structure, ask him/her, in their experience fixing emergency damages, how long your project should take. 

An experienced plumber should be able to give a good estimate of the time after a proper inspection of the damage. If the repair is obvious, (i.e., the pipes are accessible) you might want to stick to hourly pricing structure — otherwise, insist on a fixed rate.

Licensing

Before you hire an emergency plumbing company, you need to ask the plumber if they have the necessary licenses to practice. Although it depends on your state or city because not all states require licenses to operate. 

If the plumber doesn’t carry a license, ask why. Often, a plumbing company that has a license is certified and you can be sure they have passed a state examination. 

However, a license will not get the repair excellently executed. That’s why you must never be fooled by it. What a business license simply means is that the plumber is eligible to practice in your state or city. 

Above all, make sure the license isn’t just for any type of business but for professional plumbing practice. 

Know the Estimated Total Cost of Fixing Your Plumbing Problem

When you have found a reliable emergency plumber, it’s time to know firsthand what the total cost will be. 

We talked about knowing the pricing structure earlier, so if it’s hourly, how many hours will it take to repair the damage. And how much do they charge per hour?

As a homeowner, don’t completely rely on quotes you receive over the phone or via email. A trusted and reputable plumbing company will likely not give you a quote until they have properly inspected the problem. 

They want to know if it’s piping-related or a clogged sink. It’s always better to hire an experienced plumber because they’ll often include the cost of new parts needed for the repair. 

Don’t just assume they’ll get the job done based on the quote they sent you, you must confirm with the plumber if the price estimate includes both parts and labor cost.

 

Warranties and/or Guarantees For the Repairs 

How long will the repair work last? An experienced plumber should be able to make guarantees with a few exceptions. After the repair is completed, a plumber that stands behind what they have done will not be afraid to offer warranties and/or guarantees for their work.

If they’re scared to do that, then it’s obvious they don’t even trust their expertise in emergency repairs. Both for labor and material (parts used in the repairs), there should be a warranty. 

A homeowner needs to have that peace of mind after spending money on emergency plumbing repairs. A warranty or guarantee of up to 12 months is expected. However, it all boils down to the level of damage, and whether or not a part of the plumbing system was replaced or repaired.

If the plumber or company you speak to doesn’t offer any warranties and/or guarantees for their work, it’s a sign you should pass on that plumber or company. 

You should only work with those plumbers that give a cast-iron guarantee and/or warranties for their work. 

Are There Any References?

What do clients say about the plumbing company you want to hire. If you found them online, you need to read up a few reviews to know whether their past clients were happy or regretful.

A reputable emergency plumbing company that has been in the trenches for years will have garnered lots of references, comments, testimonials, success stories, and ratings from homeowners and clients.

So, it’s important to hear what other people think about the professional you intend to hire. Past clients are in a better position to describe the quality of their customer service, how efficient they are, and how they respond in case something happens after the repair is done.

Reputable plumbers like to talk about their clients even before you ask them. Because they know that new clients will be thrilled to experience the same treatment as happy clients. If you want to do a little digging, then you can look up their name or company name online to find customer reviews and ratings.

When a professional plumber isn’t excited about giving you a list of references to contact (if you want to), you should see this as a red flag. You might want to look elsewhere for an emergency plumber.

Conclusion

With a plethora of plumbing companies in Toronto, it’s becoming more difficult to find a reliable and efficient plumber to handle your emergency repair services. 

Every aspect of a plumbing system is delicate and must be handled by a professional — otherwise, it could lead to the collapse of your entire plumbing system.

It’ll cost you a lot more money to fix the damage before getting to the main emergency work. That’s why you should carefully choose wisely. You can call us if you need an emergency plumbing services.

The post How to Hire the Right Emergency Plumbing Company (And Save Money) first appeared on Anta Plumbing Blog.

Original Source: blog.antaplumbing.com

MakeMyTrip Founder Deep Kalra

MakeMyTrip Founder Deep Kalra

Battered by the coronavirus pandemic that crashed its revenues to zero, India’s largest online travel booking company MakeMyTrip was forced to let go of 350 people, which is nearly 10 percent of its staff, in June.

Initially, around March-end when the country entered into the first phase of the lockdown, the company had hoped it would not have to fire any of its employees, having affected pay cuts across the board.

“But then, two months into the pandemic we realised this is going to take longer and we had to take a very tough decision. I think it's fair to say the toughest decision we have ever taken, which was a large scale retrenchment — almost 10 percent of our staff, which was 350 people — we had to ask to go,” MakeMyTrip Founder Deep Kalra said during a recent chat with YourStory Founder and CEO Shradha Sharma. The company has around 3,200 employees on its rolls.

The layoffs were from businesses which the company thought would not come back in a long time or at least would not be done the same way. These were primarily the retail businesses, which the Nasdaq-listed Gurugram company is in the process of converting into franchises and hopes people will still have gainful employment in these functions when the stores come back in their new avatars.

“But I don’t think we want those (jobs) on our rolls, we were anyway talking about restructuring this (retail business). But it was a tough time. I know for Rajesh (Magow, MakeMyTrip Co-founder and CEO) and myself, we had many sleepless nights. As did our HR, as did every leader, actually. It’s very hard." 

“I think for us, the way we are wired — we are Indian, we don’t have that hire-fire mentality — at least, we certainly don’t. Asking one person to go for (a) reason (that’s) not his or her fault is hard and when you do it mass-scale, it’s very hard,” Deep said.

In March, the World Travel and Tourism Council had warned that 50 million jobs in the travel and tourism industry could be lost worldwide due to the coronavirus pandemic. It projected Asia as being the worst affected with the possibility of 30 million job losses in the continent.

deep-kalra-founder-and-ceo-makemytrip

Deep Kalra started MakeMyTrip at the age of 30 in 2000

The 50-year-old founder of one of India’s early internet successes who went on to become a poster boy for the Indian startup ecosystem and the online travel industry, said, the company wanted to ensure the separation process, albeit painful, was made as easy as possible.

“It’s the right thing to do. So we did extend the benefits and perks, whether it was medical insurance till a whole year, we did let them keep the laptops [sic]. For people who had done long service, we did even more, like linked to how long they had served us." 

“And then, even on a personal front, both Rajesh and I wanted to help anyone who had done a long time with us, more than 10 years, which we did. But it’s the worst thing to do and hopefully we never ever have to do that again,” he said.

At the peak of the pandemic, as travelling came to a standstill, MakeMyTrip’s revenues plummeted from $500 million a month revenue run rate to zero. “We did $6 billion gross booking (in) the last year, the last fiscal that we reported and we were suddenly down to zero,” Deep said.

He reflected on the irony that 20 years after the travel company was launched on April 1, 2000, it found itself in a position where on its anniversary there was virtually no travel happening, with everyone locked down inside their homes.

“We had our earnings call for the worst hit quarter, which is April, May and June, which is the first quarter of our fiscal and it’s open knowledge, since we are a public company, we were 95-96 percent down on revenues. So I was half jokingly saying, this should be called a lack of earnings call not an earnings call,” Deep said.

Also ReadFrom humble village boy to billionaire: Byju’s success mantra revealed

After assessing the initial damage to the business, the MakeMyTrip management got down to figuring out the things they could control to salvage the situation. “We are in travel, not really diversified. So it’s been great for us for so long. We can sit and mope or fret and get into a panic, but neither of those are going to solve our problems,” Deep said.

The management figured the “only thing” it could do was act on two fronts — cutting costs and keeping employees’ motivation levels up, which became even more critical in the backdrop of the job cuts.

Deep elaborated: “How could we be completely maniacal about cutting down on cost wherever possible? So variable costs were (a) little easier, most of them were related to marketing and sales promotion. Semi-fixed cost, which was outsourced partners for post-sales service, call centres was a little harder, but again we gave notices, we negotiated, and we cut back. And the toughest of all, of course, was when it came down to people-cost.” 

According to the company, it tried to do everything possible to avoid the layoffs, especially through the deep pay cuts at the top, but eventually had to take the tough call of letting people go after an extended phase of little or no business.

 

“So, we took cuts, personal cuts in salaries at all levels, literally starting with managerial level at 10 percent, going all the way up to the top where Rajesh and I are still basically going 100 percent cut [sic] because it was not only symbolic but it was the right thing to do. "

“Our entire leadership team, I think it was creditable (that) they took a 50 percent cut and they continue to do so. And even though travel is coming back and now we have started restoring, it’s been (a) good four-five months of being like that,” Deep said.

Also ReadStarting Apollo Hospitals at the age of 50, Dr Prathap Reddy was called a ‘fool’

MakeMyTrip started restoring salaries of employees till the senior manager level by July end, once the business started to come back. “Some of our lines of business have definitely started like domestic flights, I think we are back now at 15-20 percent capacity, which is a start,” Deep said. For hotel bookings, demand is at 10-12 percent of the capacity, as is the demand for bus and other inter-city travel modes, he added.

(Edited by Megha Reddy)

Want to make your startup journey smooth? YS Education brings a comprehensive Funding Course, where you also get a chance to pitch your business plan to top investors. Click here to know more.

Original Source: yourstory.com

Visit Us On TwitterVisit Us On FacebookVisit Us On YoutubeVisit Us On Instagram