Startups needs maximum two years to hit $100 million, but here are some startups who did this in just one year – RedBus, News curator – Inshorts, hyper-local logistics firm Roadrunnr, online food-ordering marketplace Swiggy, hyper-local services firm UrbanClap and logistics platform Rivigo. This all startups represents India’s economy as fast-changing startup dynamic economy.
RedBus is India’s biggest bus ticketing startup and joint venture by the South African Multinational Company, Naspers. RedBus has offices in many cities such as Bangalore, Hyderabad, Chennai, Ahmedabad, Coimbatore, Mumbai, Pune, Vijayawada, Kolkata, Vishakhapatnam, and Singapore.
RedBus had raised $9 million at the time of its sale, and had used only $6 million. Parag Dhol, managing director at Inventus Capital, who led the venture capital firm’s investment in RedBus said that, “Companies hitting that ($100-million) mark are raising a lot more capital, at these valuations it is much harder for early investors to make 10x returns.”
According to Parag Dhol, all the five startups mentioned above have raised or are raising between $25 million and $60 million. There are other downsides to rushing to the $100-million milestone. One venture capital investor, declining to be identified, said he had to turn down some potentially good deals because the startups, according to him, had been valued too high too soon, underlining how unrealistic expectations can hurt fundraising.
Inshorts is a mobile application giving short news in 60 words. Inshorts is also working to build technology to optimize mobile applications. In June last year, the company was followed by the most recent funding of Rs 127 crore ($20 million) from Tiger Global Management. Basically, it works on tracking uninstalled users, they also finds possible reasons for uninstallation and ultimately decreasing user acquisition cost.
Azhar Iqubal, cofounder of Inshorts said that, “The acquisition will be helpful in improving mobile experience for customers.”
Swiggy is founded by Sriharsha Majety, Nandan Reddy and Rahul Jaimini in August 2014. It is an an Indian online food ordering and delivery platform. Swiggy is based in Bangalore, Karnataka as Bundl Technologies Pvt Ltd. In just one year, the September 2015, the company’s funding raised to $20 million.
Co-founder of Swiggy, Nandan Reddy said that, “While expanding our catalog, we expect to create a large impact in the hyper-local delivery space – customers can expect to receive their favourite burgers in 35 minutes from the comfort of their home .”
Urbanclap is founded by Abhiraj Bhal, Varun Khaitan, Raghav Chandra in October 2014. It is largest mobile services marketplace in India. The company claims that, Services marketplace startup UrbanClap had raised $25 million Series B round of funding led by Bessemer Venture Partners with participation from existing investors SAIF and Accel Partners.
Even Tata Sons chairman Ratan Tata inversted an unclosed amount in the Urbanclap. Co-founder of Urbanclap said that, “UrbanClap is building a services marketplace, one which stands firmly for trust. Our conversations with him have always revolved around what it takes to build a sustainable valuable business.”
Rivigo was launched in 2014, founded by Deepak Garg, and Gazal Kalra, which build a more reliable and safer logistics networks. The company has raised $30 million Series B which led by SAIF Partners.
Deepak Garg said that, “Clients love it because they get deliveries much faster compared to an environment where truckers have to stop and rest on the highway. Our sensors can centrally manage or control the vitals of a truck and therefore improve the reliability of our operations. We believe that it’s better to make sure vitals are in order, as opposed to looking at them after a breakdown.”