25%! 
 These are rookie numbers. They gotta pump those numbers up!

Nothing much bro. You’ll have to liquidate more equity to raise the same amount. Apart from that? Your existing investors are unlikely to reinvest because the valuation they entered at vs current valuation is a net loss.

Product Manager

Software Engineer

E.g. https://startupstorymedia.com/insightsswiggyvaluationcutby25to8billionbyinvesco/

Welcome to Indian Startups's Private Community

E.g. https://startupstorymedia.com/insights-swiggy-valuation-cut-by-25-to-8-billion-by-invesco/

What is the aftermath of having a startup’s valuation cut?

What is the aftermath of having a startup’s valuation cut?- Grapevine

Swiggy was valued at $10B a couple of months back. Good luck employees waiting for ESOP buy-back in July 2023. Your shares are now worth half of what it used to be!

https://www.moneycontrol.com/news/business/invesco-cuts-swiggys-valuation-to-5-5-bn-2nd-markdown-in-4-months-10549051.html

Swiggy valuation down to $5.5B

BYJUs has raised a round of 700 M last week in a tight funding market, investors are said to be Middle East based sovereign wealth fund. It is said messi partnership and fifa World Cup had introduced the firm to Middle East sovereign funds

BYJUs has raised a whooping USD 700 m (6000 cr.) in this market

Growth Manager

Lately many of the startups faced valuation cuts. Baron Capital cut Swiggy by 40%, Blackrock and Pepsis cut Byju’s by 70%, SoftBank cut Oyo by 70%. Just to name a few. 

Everything about Byju’s is very much present here on grapevine. I’m curious to know about others, not limited to the ones named above. How’s your organization doing these days?

Probably, there is no VC-funded unicorn in India that is likely to stand the test of its private valuation in a public market

Where have all the startup hedgehogs gone?

Devalued startups. How are you doing?

Software Developer

Welcome to News Discussion's Private Community

- Invesco valued its 28,844 shares of Swiggy at $219.2 Mn as of April 2024, translating to a $12.3 Bn valuation for the foodtech company.
- Pine Labs' valuation was pegged at $3.5 Bn at the end of April 2024, down from $3.8 Bn in January 2024.
- The valuation cuts come as Swiggy prepares for its $1.25 Bn IPO, having filed its draft red herring prospectus with SEBI.
- Despite the cuts, Swiggy's latest valuation is still 15% higher than its $10.7 Bn valuation during its $700 Mn decacorn round in 2022.
- The valuation adjustments follow a period of funding challenges and losses for Indian unicorns, though investor sentiment has recently improved. 

 Source: Inc42

Invesco Marks Down Valuations Of IPO-Bound Swiggy, Pine Labs

Journalist

Layoffs are happening at Sharechat starting today.
Each division is being asked to join a call and they are being announced.
First call with product org - around 50 folks were impacted

Layoffs at Sharechat.

They moved to a new massive swanky Office 3 months ago. Team parities were happening even last week. And they do this in last week of the year spoiling the new year plans of hundreds of folks!

Channel Sales

Byjus Valuation Sliced By 99% - Rasing a 200 million $ through rights issue at 250 million dollars

What is an average post-money valuation that people/VCs are dealing for AI SaaS startups?

Pre-revenue Startup valuations

Founder

Baron Capital, an investor in Indian food delivery startup Swiggy, has increased the value of its stake in the Indian firm, implying a valuation of $12.16 Baron Capital, an investor in Indian food delivery startup Swiggy, has increased the value of its stake in the Indian firm.

Baron boosts Swiggy valuation to $12.16B, above prior private market value | TechCrunch

Swiggy's valuation in it's best shape before the impending IPO

Valuation of 1800 crore, sold at 90 crore
The cofounder also acknowledges they were overvalued and got sold for cheap due to investor pressure in this Morning Context article... Another startup that became victim of the funding winter
Thoughts? 

https://themorningcontext.com/internet/why-nestaway-crashed

NestAway's valuation

VC Analyst

What are generally the metrics used during layoffs ?

Is it division by division or each employee is vetted for his performance and contributions ?

Do high salaried folks generally targeted even if they have good performance and history with company ?

With the overall bleak atmosphere in startup ecosystem and lack of transparency in this process from employers wanted to know how are decisions made. Most say it is performance based in news, how true is that ?

Layoff Parameters

"Only when the tide goes out do you discover who's been swimming naked." - Warren Buffet

I want to appreciate Swiggy for whatever they've done in the last year. Everyone's had a tough time, and through the bear market (which we are still in), everyone lost valuation majorly. 

You need to have a super strong business to be able to maintain strength (given we're still not in a bull). When in this market, somebody almost doubles their valuation, it's a feat.

I know there's layoffs and everything that happened there too, but just happy to see all of this happen as an avid user and a small founder who's realized how tough it's been these last 1-2 years.

Swiggy's valuation crosses $10Bn again. After going as low as $5.5Bn last year. A small note:

Welcome to Office Gossip's Private Community

Lately, I have been thinking very deeply about my college days when the Flipkart story had inspired the entire lot of my batch at IIT-D. We were starry eyed college kids who wanted to do something innovative in India and break away from the "three" most popular moves after IIT:

1. UPSC
2. MBA
3. MS/PhD abroad

I proceeded to then work in various Indian startups and noticed an alarming thing. I began to realise a pattern across all my stints:

The initial founding team does exceptional work innovating, they excel at what Thiel calls "Zero to One", the act of creation. I will concede that although most founders fail to innovate by often copying what worked in the west but the initial founding team usually excels in execution. It allows for initial traction as it breathes a fresh breath in the\ space that they are operating in.

Almost always, when Product Market Fit is "achieved"(whatever that means), the founders begin to deploy insane amounts of funds into growth. 

By definition, Growth is not a bad thing. But, I have been noticing that across all startups I have worked at( all raised funds from the largest global funds) that it comes at the expense of product building. And during this era of hypergrowth, the product starts to stagnate while focus becomes marketing and sales. 

I often felt that this was temporary. That once we reach enough scale, we would start to innovate again. 
But time and time again, the ability to innovate atrophies over time.
Rather than building something that has enduring value by executing faster than anyone, the focus becomes achieving growth at all costs. 

This ultimately leads to two outcomes:
1. The startup cannot sustain this growth and retention begins to look dire. The churn becomes unbearable and the startup goes out of business.

2. The startup gets acquired by someone bigger, allowing founders and investors to believe that they created value where none existed in the first place.

I am completely dejected at this.

The Death of Indian Innovation: Why Indian Start Ups are failing to Innovate?

Was any startup/investor( in India )impacted due to SVB insolvency?

SVB aftermaths

- Swiggy has filed for an IPO with SEBI, aiming to raise Rs 3,750 crore through fresh equity shares and an OFS of up to 185,286,265 shares.
- Prosus plans to offload 63.8% of the OFS, with other investors like Accel, Alpha Wave Ventures, and Tencent also participating.
- Funds will be used to invest in Scootsy, expand dark stores, and enhance technology and cloud infrastructure.
- Swiggy reported a 36% revenue growth to Rs 11,247 crore in FY24 and a 44% reduction in losses to Rs 2,350 crore.
- The IPO will heighten competition with Zomato, which currently has a market cap of $29.5 billion. 

 Source: [Entrackr](https://entrackr.com/2024/09/swiggy-eyes-rs-3750-cr-in-fresh-issue-as-prosus-prepares-to-sell-63-8-of-ofs/)

Swiggy Files Draft Papers For IPO, Targets $10 Billion Valuation

The timing of Zeptos fundraise is significant given the slump in investments into growth- and late-stage startups on the one hand and the correction being witnessed in the quick commerce segment on the other.

Unicorn drought ends as Zepto raises $200 million at $1.4 billion valuation

Zepto becomes India's 1st 2023 unicorn

Everything kept aside, it’s genuinely awe-inspiring that they’ve been able to do this in a market with close to zero interest in consumer internet plays, and most models failing  
  
 There’s definitely something about the way they executed. And many good things are said within the ecosystem about Aadit as a founder!

Analyst

VC with 5+ yrs of exp - AMA

Community Manager

https://anonymfile.com/NEEXl/tiger-global-draft-of-new-yorker-story-doing-the-rounds-in-nyc.pdf

TLDR: Tiger Global may pass soon.

Leaked NewYorker Article on Tiger Global

A few summary points:
- LP risk is over exposed to VC funds (Tiger, for these LPs)
- Tiger has had abysmal investments and returns these last few years
- They've actively looking to pass on their assets to buyers where they can find them 
- Lee Fixel, the most prolific investor they had left a few years back
- The fund has been led by Scott Shleifer; who has reported to been an alcoholic, hosts drug parties, and invests with very little DD/deep dive.

All in all, this is scary stuff. With Softbank and Tiger both seeing difficult times, this feels like the Lehman moment for the VC industry.

What is the aftermath of having a startup’s valuation cut?

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