STARTUP DIGEST: Top stories of the day

Updated : March 08, 2021 09:21 PM IST

There were several important developments during the day on Monday. Here’s a wrap of the top startup stories today.

Ola to make electric cars after e-scooters, welcomes Tesla to India

Ola is building its first e-scooter manufacturing facility in Tamil Nadu’s Krishnagiri district at a frenetic pace, with the aim to bring the vehicle to Indian roads by June of 2021. The long-term plan for the company is to also manufacture electric cars, Ola Group CEO and chairman Bhavish Aggarwal said.

The company says Phase 1 of the factory on the 500-acre site will be ready by June and that it will have a capacity to manufacture 2 million vehicles annually. The factory will be built in four phases, and the company says this will be completed by June 2022, by when the company will have a capacity to make 10 million units annually. “This will make us the world’s largest two-wheeler manufacturer, and we will be contributing 15% of the global capacity.

We are starting with a two-wheeler which is the quintessential Indian mobility product. We will start with the scooter, then go to motor-bikes, and eventually 4-wheelers,” Aggarwal said during a press meeting at the factory site in Tamil Nadu on March 5. He did not disclose details on when and where the electric car manufacturing will begin.

Ola is pitching the e-scooters as retail consumer vehicles. There will be some added to the fleet as well, Agarwal said.

The company will focus on a Direct-to-Consumer approach with a focus on digital sales, but will also partner with dealers across the country.

Aggarwal told CNBC TV 18 that the company will work with investors Hyundai and Kia for supply chain, manufacturing and go-to-market partnerships.

Apart from domestic sales, the company is also simultaneously focusing on exports. “We will be building a global business, exporting to many markets. We will Make in India and Make for the World. We want to use India as a base to export EVs globally, boosting the Atmanirbhar plan,” Aggarwal told CNBC TV 18.

OYO vs ZO Rooms: Zostel claims win in 3-year legal battle; OYO refutes

Hostel chain Zostel Hospitality Pvt Ltd, which owns Zostel Hostels and ZO Rooms, said that it has won a three-year legal battle against Oravel Stays Pvt. Ltd, the parent company of hospitality major OYO Hotels & Homes. This is expected to lead to shareholders of ZO Rooms owning 7 percent in OYO.

The Arbitral Tribunal ruled that OYO acted in breach of its binding agreement after its acquisition of rival Zostel Hospitality and directed OYO to sign the documents and issue the shareholding as committed in the Term Sheet. The Term Sheet executed between the two parties on November 26, 2015, promised ZO Rooms’ shareholders 7 percent of OYO.

According to Zostel, ZO Rooms completed its obligation under the agreement and transferred the business but OYO failed to transfer 7 percent to ZO Rooms' shareholders, which eventually led to the arbitration process.

Zostel in its statement said: “If the order from the Arbitrator is to be given effect, allotment of 7 percent to ZO Rooms' shareholders will make this outcome the biggest exit in the Indian startup ecosystem.”

The order was pronounced by the Arbitral Tribunal, Former Chief Justice of India, Justice AM Ahmadi on March 6, 2021.

“We welcome the judgement by the Hon'ble Tribunal. Beyond the monetary compensation, it was a fight for our rights and reputation. We are extremely relieved with the judgement that the arbitral tribunal has pronounced after diligently evaluating the merits and evidences produced by us over the last 3 years,” said Paavan Nanda, Ex Co-founder, Zostel.

However, in a blog on Sunday evening, OYO said, “We are stating that the Arbitration Tribunal has granted no specific relief to Zostel in terms of receiving ownership in OYO.”

OYO said that the Tribunal hasn't given any direction for issuance of shares as the definitive agreement was neither agreed nor consummated and therefore, "closing conditions were far from being achieved and the same has been acknowledged by the Arbitrator".

The tribunal has ruled and categorically acknowledged that the definitive agreements, which are extremely important documents for any M&A transaction, were neither finalised nor agreed upon, the blog said. The final award, however, purports to provide Zostel a right to initiate "appropriate proceedings" and for seeking execution of the definitive agreement while no specific remedy for the same was granted except against their prayer for a cost which OYO will "vehemently" oppose in all avenues available under the law of the land, it said.

"OYO continues to strongly hold its position that the parties were merely at the stage of discussions and no definitive agreements were finalized between the parties, as has also been confirmed by the Tribunal," said the blog.

Stylework raises pre-series A round; to expand in Tier-1 cities

Co-working aggregator platform, Stylework has raised Rs 4 crore as well as a strategic undisclosed investment amount in its Pre-Series A round, led by Inflection Point Ventures, a statement said.

ah! Ventures, We Founder Circle, Instarto & select potential HNI/Angel investors, Rachit Poddar from Marwari Venture Catalysts, Anil Gupta - Ex-President Reliance Infrastructure/General Electric & Sunaina Gera - CEO GridLines, also participated in the round.

Stylework helps freelancers, start-ups, and corporates find the right type and any custom membership of a co-working space, with the intent to empower the incoming era of remote working.

The team will invest the current fund raise to expand its network in tier-1 cities - Bengaluru, Mumbai, Hyderabad, Pune and Chennai. A portion will also be used to upgrade technology and boost product growth. Significant attention will be given to capture market share fast with an aim to become a market leader in co-working aggregation.

LetsVenture launches women-focussed angel network

Angel investing platform LetsVenture has launched a women angel network- meant for more women to both invest, as well as mentor startups.

The platform will provide access to women angel investors to invest in early and growth stage startups and also provide the flexibility to mentor and support startups. With this launch, LetsVenture aims to onboard at least a 100 women angel investors in 2021; and in addition will launch at least five Lead Syndicates run by women, a statement said.

According to a study conducted by LetsVenture, India has about 10,000 angel investors and only 1% of these are women. The launch of the platform comes at the backdrop of a strong business case for women to invest, take board positions and also add value to startups.

Amazon India expands Amazon Food across Bengaluru

Amazon India’s food delivery service- Amazon Food, which was launched in 2020, has now expanded the service across 62 pincodes covering key localities in India’s Silicon Valley.

Customers can now order food from over 2500 restaurants and cloud kitchens in Bengaluru with convenient doorstep delivery. Prime members get free delivery on all their orders, while other customers will have to pay a delivery fee of Rs 19 for their orders from Amazon Food, a statement by the ecommerce giant said.

Deliveroo plans IPO, reports $309 million loss in 2020

British food delivery firm Deliveroo announces IPO plans, disclosing it posted an underlying loss in 2020 of 223.7 million pounds or $309 million.

The Deliveroo IPO is one of the most eagerly watched-for initial public offerings (IPOs) in the first half of 2021, and is expected to value the company at more than $7 billion.

Online learning platform Coursera files for US IPO

Online education provider Coursera Inc on Friday filed for a stock market listing with U.S. regulators, revealing a surge in revenue from a boost to business due to the disruption caused by the COVID-19 pandemic.

Revenue rose 59% to $293.5 million for the year ended Dec. 31, 2020, the company said in a filing.Coursera offers courses such as machine learning, cloud computing and language learning, with its platform used by more than 3,700 colleges and universities, according to the company’s website. It launched “Coursera for Campus” in response to the pandemic to help educational institutions offer courses to stuck-at-home students, reported Reuters. Online learning platforms also benefited as retrenched employees took online courses to rotate into new careers. Mountain View, California-based Coursera was founded in 2012 and its investors include venture capital firm GSV Capital and Kleiner Perkins.

The company raised $130 million in funding in July, bringing its cash balance to more than $300 million. Coursera’s net loss widened to $66.8 million for the year ended Dec. 31, from a $46.7 million loss a year earlier.

Bill Gates-backed Evolv to go public via blank-check merger in $1.7 billion deal

Bill Gates-backed crowd safety technology provider Evolv Technology will go public through a merger with a blank-check company in a deal that values the equity of the combined company at around $1.7 billion, the companies said. The deal with NewHold Investment Corp will provide the merged entity with $470 million in proceeds, including a private investment of $300 million, Reuters reported.

Besides Microsoft Corp’s co-founder Gates, Evolv is also backed by venture capital firm General Catalyst.

The firm uses AI technology and sensors to screen people in public spaces including stadiums, hospitals, schools and entertainment venues, eliminating security gaps presented by metal detectors, according to its website.

Twitter's Dorsey auctions first ever tweet as digital memorabilia

“just setting up my twttr” - the first ever tweet on the platform is up for sale after Twitter boss Jack Dorsey listed his famous post as a unique digital signature on a website for selling tweets as non-fungible tokens (NFTs).

The post, sent from Dorsey’s account in March of 2006, received offers on Friday that went as high as $88,888.88 within minutes of the Twitter co-founder tweeting a link to the listing on ‘Valuables by Cent’ - a tweets marketplace. Old offers for the tweet suggest that it was put for sale in December, but the listing gained more attention after Dorsey’s tweet on Friday.

NFTs are digital files that serve as digital signatures to certify who owns photos, videos and other online media.

Dorsey’s 15-year old tweet is one of the most famous tweets ever on the platform and could attract bidders to pay a high price for the digital memorabilia, reports Reuters.

Published : March 08, 2021 09:21 PM IST

STARTUP DIGEST: Top stories of the day

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