1947 Rise ☀️: 217

1. Late-stage startups tap alternative funding route amid softening valuations

Business-to-business ecommerce platform Udaan is in advanced talks to close a fresh round of debt financing of $150–200 million through convertible notes, people in the know told ET.

This will mark the second such capital infusion for the B2B startup this year at a time when late-stage equity funding is becoming scarce in one of the world’s fastest-growing startup ecosystems.

These notes, which will convert into equity at a later date, require no valuation to be ascribed to the startup currently. With desired valuations not coming their way, startups are resorting to these debt instruments to tide over the economic whiplash where cautious investors are demanding better unit economics and a path to profitability.

Online pharmacy marketplace PharmEasy, which has scrapped its plans to go public, is also looking to raise about $100 million through convertible notes, ET reported earlier, signalling the growing difficulties for late-stage startups looking to pick up equity capital in the current environment.

Late-stage startups tap alternative funding route amid softening valuations

2. Fitness startup Cult.fit shaping up for public listing in 12–18 months

Fitness startup Cult.fit is aiming for an Initial Public Offering (IPO) in 12–18 months as its core gym business has turned in an operating profit, a senior executive said.

Cult.fit,which was earlier known as Cure.fit, has made 14 acquisitions over the last few years, including in-home fitness equipment businesses like RPM fitness and Fitkit.

It acquired a majority stake in F2 Fun & Fitness, becoming the master franchise partner for Gold’s Gym in India. The company said the integration with Gold’s Gym is complete and 40% of gyms are part of the company’s loyalty programme called Cultpass.

Fitness startup Cult.fit shaping up for public listing in 12–18 months

A tweet:

Kunal Shah @kunalb11

Next 10 years are probably going to be the best years to build tech startups in India. Capital availability. Digital Stacks. Talent pool. Support from regulators and government. Stability in economy. Consumer readiness for tech. UPI. Smartphones. 5G and many other stars aligned.

A pod:

Shiva Singh Sangwan @shivassangwan

1947 Operators✨ Bootstrapped it for 5 years and then comes a turning point - @swetarau & @amrishrau were the first believers - The Value operator angels bring - How @onlymadhoo evaluates founders - India would be the Fintech Factory of the world WATCH: bit.ly/3Ty3qcz

Worth your attention

1. Indian edtech giant Byju’s raises $250 million in fresh funding Link

2. Avataar Venture Partners launches second fund of $350 million Link

3. Fireside Ventures closes largest fund at $225 million Link

4. Alteria Capital makes first close of third venture debt fund at Rs 1,000 crore Link

5. Ather Energy raises $50 million in funding as it ramps up electric scooter production Link

6. Vedantu acquires test prep platform Deeksha for $40 million Link

7. Indian startups take to reverse flipping for local ownership Link

8. Global VC funding plummets to 21-month low in India: report Link

9. Blockchain startup Shardeum raises $18.2 million in funding Link

10. Drivetrain AI raises $15 million in fresh funding round Link

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