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.
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.
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