Udaan's flat raise; Nykaa's market woes
B2B ecommerce unicorn Udaan raised fresh funds in a round led by existing investors. This and more in today's ETtech Top 5.
Also in the letter: ■ Tesla 'not' driving into India■ Infosys CEO payout■ Fintech sector: Road ahead
Udaan closes latest funding round at $114 million led by UK's M&G, Lightspeed
Vaibhav Gupta, CEO, Udaan
B2B ecommerce platform Udaan has raised $114 million in a fresh funding round led by existing investors, M&G Prudential (UK) and Lightspeed Venture Partners.
Round details: The round closed at a flat valuation of $1.8 billion and includes the previously disclosed $75 million investment from the same two investors, which founder and CEO Vaibhav Gupta announced at a town hall earlier this year. The new capital will go towards deepening Udaan's footprint in key sectors like fast-moving consumer goods (FMCG) and the hotel, restaurant, and catering (HoReCa) industry.
The company also plans to expand its private label brands, with a sharper focus on staples.
What else? 'We have cut our Ebitda losses by 40% every year over the past three years and are on course to reach full group Ebitda profitability within the next 18 months,' said Gupta.
Quick lookback: Udaan's valuation fell by 44% in 2023 to around $1.8 billion, down from its $3.2 billion peak following a funding round in January 2021. The company restructured its debt late last year but continues to carry about $100 million in liabilities, with repayments pushed to later dates.
Nykaa shares drop 5% as muted fashion growth weighs on strong Q4
Shares of FSN E-commerce, the parent company of Nykaa, slipped as much as 5.11% to 192.85 a piece during Monday's trade. The scrip closed 4.33% lower at Rs 194.45, underperforming the benchmark Sensex, which dipped just 0.09%.
Driving the news: A strong Q4 failed to lift investor sentiment. Operating revenue : Rs 2,061.7 crore, up 27% from Rs 1,668 crore a year earlier.
Rs 2,061.7 crore, up 27% from Rs 1,668 crore a year earlier. Net profit : Rs 19 crore, versus Rs 9 crore last year.
: Rs 19 crore, versus Rs 9 crore last year. Beauty segment: Rs 1,895 crore, up 24.7% from Rs 1,519 crore.
Rs 1,895 crore, up 24.7% from Rs 1,519 crore. Fashion segment: Rs 161 crore, up 11% from Rs 145 crore.
Also Read: Nykaa Q4 profit doubles to Rs 19 crore; revenue up 24% Source: Google Finance
Fashion lacks glitz: Analysts flagged the fashion vertical's subdued performance in their post-results commentary. The segment's contribution margin dropped to 5.6% during Q4, down from 14.4% in the previous year.
Kotak Institutional Equities trimmed profitability estimates on expected higher ad spends in the fashion segment.
Analystspeak: "While BPC (beauty and personal care) segment continues to deliver healthy growth with better profitability, revival in fashion business remains a key monitorable, given the heightened competitive intensity across the industry," said brokerage house Nuvama in a note on Monday.
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Infosys paid CEO Salil Parekh Rs 80.62 crore as salary in FY25, up 22%
Salil Parekh, CEO, Infosys
Infosys chief executive officer (CEO) Salil Parekh received a 22% hike in annual compensation for the financial year ending March 2025, with total pay rising to Rs 80.6 crore, according to the company's latest annual report.
CEO's payslip: Parekh's salary was structured as follows: Base salary: Rs 7.45 crore
Rs 7.45 crore Retiral benefits: Rs 49 lakh
Rs 49 lakh Variable pay: Rs 23.18 crore
Rs 23.18 crore Stock options: Rs 49.5 crore The jump in compensation was driven by higher bonuses, incentives, and variable payouts, along with an increase in restricted stock units (RSUs), equity-linked grants linked as part of long-term compensation.Parekh earned Rs 66.25 crore in FY24, a 17.5% increase over the previous year, making him the second highest-paid CEO in the Indian IT sector at the time. His pay had dipped in FY23 to Rs 56 crore from Rs 71 crore in FY22.
Peers' pay packages: With the FY25 figures, Parekh's pay now surpasses that of his counterparts at Tata Consultancy Services (TCS) and Wipro. Wipro chief Srinivas Pallia earned $6.2 million (around Rs 53.64 crore), a 10% bump over last year. TCS chief K Krithivasan saw his compensation rise 4.6% to Rs 26.5 crore.
Tesla unlikely to make in India, will focus only on imports: All you need to know
Elon Musk, CEO, Tesla
Despite the Indian government's generous policy incentives, the Elon Musk-led EV giant Tesla, remains hesitant to manufacture in India, preferring instead to sell imported vehicles through showrooms, according to union minister HD Kumaraswamy.
But why? India's price-sensitive market, high import duties, and Tesla's direct-to-customer sales model pose major hurdles. Even the company's most affordable offering, the Model 3, would be classified as a luxury vehicle in India due to current import tariffs.
Still, Tesla hasn't shut the door. We reported in February that the company has secured retail space in Maharashtra and Delhi, and has posted job openings, moves that hint at plans to establish a sales footprint.
India's move: The government is gearing up to formally launch its flagship EV policy, the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI). Under this scheme, automakers that commit at least $486 million to local manufacturing could see import duties slashed to 15%, down from the existing 70%.
Others revving up: While Tesla holds back, other global automakers are accelerating plans. Kumaraswamy said Mercedes-Benz, Skoda-Volkswagen, Hyundai, and Kia have shown strong interest in setting up EV manufacturing under the new policy.
Where the fintech sector is headed next: QED-BCG Global Fintech Report 2025
Fintechs still account for just 3% of global banking and insurance revenues, but their influence is growing rapidly, according to QED–BCG Global Fintech Report.
In numbers: Fintech revenues rose 21% year-on-year, sharply outperforming the broader financial services sector, which grew by just 6%. Public fintechs are also turning the corner on profitability; 69% are now in the black, up from less than half the previous year.
Growth engines: The report sees agentic artificial intelligence (AI) as a long-term game changer.
Financial activity on the blockchain is picking up pace, but still has structural hurdles to clear.
Challenger banks, born digital, would do well to focus on deepening their presence in existing markets.
Fintechs are now better at lending and have more seasoned customer data. The big unknown: will these lending models hold during a full economic downturn?
B2B(2X), infrastructure, and lending are shaping up as the sector's next major frontiers.
Quote, unquote: 'Regulators are now internalising that fintech is here to stay,' QED Investors cofounder Nigel Morris told ET in an exclusive interview. Fintechs have a role to play in the future of how financial services are delivered, he added.
Updated On Jun 02, 2025, 07:43 PM IST
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