2025-01-30 05:30:00 :
Last week, the two startups, Sasas Wingify and Skincare brand minimalist-hit the headlines of the huge funds they received. What are the differences between these acquisitions or withdrawals and the acquisition we see in a wider entrepreneurial world? Mint explanation.
What happened to the minimalist Wingify?
Wingify, a software service company in Delhi, was acquired by the private equity company Everstone Capital last week for $ 200 million. Paras Chopra founded the company in 2010 and operated the company without raising any funds. As of March 2024, it had nearly 84 % of the shares. At the same time, the SKINCARE brand brand minimalist in Sanpail has been acquired by FMCG Bememoth Hindustan Unilever LTD Bleak3,000 million. The founders Mohit and Rahul Yadav have more than 61 % of the shares in the company and have received funds from external investors, such as VC PEAK XV and Unilever Ventures, which is the venture capital company of Hul’s parent company.
Why are these important?
Indian startups prove that they can generate wealth through IPO and acquisition. The latest lists of Zomato, SWIGGY and Nazara have given their founders. Employees holding stock options for a long time have provided a good return with external investors including VC and PE funds including these companies. Swiggy’s IPO makes 500 people very rich, while Zomato’s listing in 2021 will turn 18 people into one millionaires. Although the transaction scale is small and the valuation is small, the acquisition of minimalism and Wingify has made a lot of money for its founders than startup IPOs. As the majority owner, these founders will take most of the funds.
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Why do more founders do not have a majority of equity?
Most people rely on banks or their own funds to carry out business. The founders of dilution equity often raise funds from their family, friends or angel investors. However, without raising hundreds of millions of dollars, many startups have found that it is difficult to expand rapidly. Most Indian unicorn ($ 1 billion or more) raised huge amounts of funds from external investors.
Is there a unicorn with external funds?
Yes. Saas Company Zoho is a unicorn, but it has not raised funds from any external investor, according to the value of Tracxn nearly $ 6 billion. According to the file, the founder Sridhar Vembu and his siblings Radha and Sekar have more than 80 % of companies. Zerodha, headquartered in Bangalore, is another close -owned unicorn. As of 2024, the founders Nikhil and Nithin Kamath and Nithin’s wife Seema Patil had more than 99 % of companies. Zerodha did it BleakThe profit of the fiscal year in 2024 was 47 billion.
So, will the guidance of startups be better?
It may eliminate pressure from external investors. However, micro and small and medium -sized enterprises strive to gain reputation. The World Bank estimates that India’s MSME fund gap is 11 %, which is the difference between the demand for funds and the actual supply. The dispute between the founders may endanger their own business. Consider Zoho’s VEMBU case: When his family controls the company, he is competing for their shares with his ex -wife Pramila Srinivasan in the divorce lawsuit.
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