Most of us are curious of how decisions are made in major VC funds, as these funds are private and only share this information with their Limited Partners (LPs).
For the unknown, there are VC funds known as Corporate Venture Capital funds, which are the venture arms of corporate firms; they are required to disclose the performance of their CVC funds to the general public.
Prosus, one of the largest funds in this category, has just released its 2024 Annual Report, so thought it would be helpful to share the key takeaways with you all. So, here we go:
1/ Swiggy: On the Launchpad Swiggy continues to impress with a 26% surge in its gross order value and a robust user base that's grown to 104 million. The food delivery giant isn't just expanding—it's preparing to soar with a confidential IPO filing. Swiggy's blend of core deliveries and quick-commerce ventures positions it as a frontrunner in the food-tech race.
2/ Byju's: A Reality Check The tides have turned for Byju’s, once a darling of the edtech world, now facing a stark reality with a $493 million valuation write-down by Prosus. This significant markdown is a wake-up call to the high-flying valuations in the edtech sector, spotlighting the need for sustainable financial health over speculative growth.
3/ PayU: Quietly Confident While specific updates on PayU were sparse, its role in Prosus’s fintech ambitions remains pivotal. PayU continues to weave through Prosus's strategy, likely focusing on enlarging its digital payment solutions and tapping into burgeoning financial service opportunities in emerging markets.
4/ PharmEasy: Unsung Potential PharmEasy's story remains under the radar in this year’s dispatch. However, as a component of Prosus's health tech ventures, it’s poised to play a crucial role in expanding accessible digital healthcare solutions, streamlining services from prescriptions to doorstep delivery.
The Bigger Picture? Prosus's strategy paints a vivid portrait of India's evolving startup ecosystem. It's no longer just about rapid growth and sky-high valuations. The game has changed:
1/ Sustainability is king: Byju's fall from grace is a stark reminder that financial health trumps speculative growth. 2/ IPO readiness matters: Swiggy's preparations show the market's appetite for well-prepared tech giants. 3/ Quiet expansion: PayU and PharmEasy's low-key presence suggests strategic focus on steady growth over flashy headlines. 4/ Diversification is key: Prosus's varied portfolio highlights the importance of spreading bets across sectors.
Checkout their annual report at https://www.prosus.com/~/media/Files/P/Prosus-CORP/AR2024/1latestfinancialresults/04annualreport/fy2024annualreport.pdf - happy reading!
Would you like more breakdowns of such reports and documents? Let us know in comments below 👇🏽
Thanks for the breakdown but it doesn't scratch the itch, no where mentioned how the fund operated and allocates it's capital.
Agreed. Kinda get annoyed by so much paraphrased surface level content floating around with not much tangible value
Yes please
Yes please
"Swiggy continues to impress with a 26% surge in its gross order value" - How to decide if the 26% growth is impressive, good or just average? Zomato's grew by 48% and Zepto grew by 100%+, in the similar period. Yeah, long road ahead for Swiggy before it becomes a "frontrunner in the food-tech race".
Adding to that. What's the end game in food tech? Cash burn till consolidation, monopoly? Innovation to crack sustainability is missing and outcome is clear. After public listing, trading will be speculative and short term opportunistic rather than people genuinely believing the company for returns.
Interesting, can we get such write on tigerglobal and softbank
"BYJU’S grew considerably since our first investment in 2018, but, over time, its reporting and governance structures did not evolve sufficiently for a company of that scale. Despite repeated efforts from our Director, executive leadersh...
Largest shareholder saying this publicly, I wonder if there is any way of recovering from this point
Prosus just released their annual report - was checking it out and saw that they've written off 100% of their Byju's stake
For the unaware, they're Byju's largest share holder with ~10% of the business - their stake was last valued at...
Managed to cash out atleast 25% of ESOPs (on average) up till now? This is a very important test of liquidity for our ecosystem. Its been almost 8 years of VC funded existence. Any thoughts on this?