Introduction:

InShorts, the popular online news aggregator and local language social media platform operator, faced a challenging fiscal year ending March 31, 2023. The company witnessed a significant surge in its operating revenue, yet grappled with widening losses, marking a pivotal year in its financial journey.

Rise in Operating Revenue:

Despite the economic hurdles and fierce market competition, InShorts managed to boost its operating revenue by 8.7%, totaling Rs 180.90 crore in FY23 compared to Rs 166.37 crore in the preceding year. This growth underscores the company’s continued traction among users and advertisers.

Losses Escalate:

However, the bright revenue picture was overshadowed by a concerning escalation in losses. InShorts reported a staggering 33% increase in losses, soaring to Rs 309.75 crore from Rs 231.87 crore in FY22. This spike in losses points to the challenges and investments incurred, particularly in expanding its local language social media platform, Public.

Revenue Streams and Expenditures:

The company primarily derives its revenue from advertising on its news app, witnessing a 4.3% increase in ad-based income to Rs 147 crore in FY23. Supplementary income stems from support services. However, its total expenses surged by 23.5% year-on-year, reaching Rs 492.13 crore in FY23, compared to Rs 398.52 crore in FY22. This significant expenditure growth reflects the aggressive investments made by InShorts during this period.

Investor Backing and Fundraising:

InShorts boasts a robust lineup of backers, including Lee Fixel’s Addition, Tiger Global, SIG, A91 Partners, and Tanglin Venture Partners. The company secured $60 million in July 2021 from Vy Capital and existing investors, totaling its fundraising to $165 million. This considerable financial backing illustrates the investor confidence in InShorts’ potential for future growth and innovation.

Diversification Efforts and Public Platform:

Founded in 2013, InShorts is renowned for its concise news delivery in just 60 words. Its expansion into the local language social media platform, Public, launched in 2019, aimed to foster real-time local updates and community engagement. The platform caters to multiple languages, reflecting InShorts’ commitment to linguistic diversity.

Comparison and Competition:

In the realm of news aggregation and local language content, InShorts faces formidable competition, notably from DailyHunt, backed by Matrix Partners. DailyHunt reported a substantial 57% revenue increase, reaching Rs 1,809 crore in FY23, showcasing the intensifying rivalry and growth potential within this domain.

Conclusion:

InShorts’ financial report for FY23 portrays a mixed narrative—showcasing commendable revenue growth while grappling with escalating losses. The company’s strategic focus on expanding its local language platform, Public, signifies a commitment to diversification and innovation. However, the burgeoning competition in the market, coupled with amplified expenses, necessitates a delicate balance between expansionary efforts and financial prudence for sustained growth in the future.

Overview

GitHub’s annual Octoverse report for 2023 highlights the unprecedented growth of India’s developer population, indicating a substantial rise in the number of developers on the platform. The report predicts that India is set to surpass the United States as the world’s largest developer hub by 2027. With India’s significant contributions to generative AI projects, GitHub emphasizes the country’s burgeoning influence in the global AI landscape. Sharryn Napier, VP of APAC at GitHub, underscored the pivotal role played by India’s developer community in shaping the future of AI innovation worldwide.

Key Findings

1. Rapid Growth in Developer Population

• India witnessed a remarkable surge in its developer count, with an addition of 3.5 million new developers on GitHub in 2023, bringing the total to 13.2 million.

• The report suggests a steady growth trajectory, showcasing a 36% increase in India’s developer community in 2023 alone.

2. Impressive Contributions to Generative AI

• India’s active participation in generative AI projects has led to a 148% year-over-year growth in individual contributors to such projects globally.

• GitHub’s data indicates that India, along with the US and Germany, leads the world in terms of developer communities, followed closely by Japan, Hong Kong, the UK, and France.

3. Impact of Digital Public Goods Alliance

• The UN-backed Digital Public Goods Alliance, in collaboration with India’s efforts to build a digital public infrastructure, has significantly contributed to the growth of India’s developer community.

GitHub’s Initiatives

1. Introduction of AI-Powered Features

• GitHub announced the launch of GitHub Copilot Chat, integrating natural language programming to aid developers in tasks such as error detection, unit test writing, and debugging.

• The Copilot Chat, powered by GPT-4, offers advanced code suggestions and is set to be available in December 2023.

• GitHub also unveiled the GitHub Copilot Partner Program, aiming to expand Copilot’s capabilities through integration with third-party tools and services.

2. Enhanced Security and Accessibility

• GitHub Copilot Chat will be accessible through subscriptions and will be integrated into GitHub.com and the GitHub mobile app, offering insights, pull request analysis, and coding assistance.

• The company introduced GitHub Copilot Enterprise, tailored for integration within a company’s codebase to enhance developer productivity. It comes with enterprise-level security and will be available from February 2024.

3. Focus on Workspace and Future Developments

• GitHub is developing the GitHub Copilot Workspace, aimed at bridging the gap between conceptualization and coding by providing AI-generated plans for implementing changes. It is expected to launch in 2024.

Conclusion

GitHub’s Octoverse Report 2023 underlines India’s burgeoning influence in the global developer community. With the rapid growth of India’s developer population and its significant contributions to generative AI projects, the country is poised to become the world’s largest developer hub. 

GitHub’s introduction of AI-powered features and advanced security tools, along with its focus on enhancing accessibility, reaffirms its commitment to empowering developers and fostering innovation within India and globally.

The Indian startup ecosystem has encountered a challenging phase in 2023, with funding levels regressing to those observed in 2020. With only $8.3 Bn raised, a mere quarter of the funds raised during the same period in 2021, the situation appears daunting at first glance. However, a closer examination reveals the resilience and determination of Indian founders, who have continued to navigate the adversities with remarkable fortitude.

SaaS Market: A Glowing Beacon of Hope

Despite the funding constraints, the Indian SaaS market has emerged as a beacon of hope, exhibiting significant growth and potential. Projections indicate that the market is poised to expand to a staggering $50 Bn opportunity by 2030, marking a quadruple increase from its current size. Impressively, Indian SaaS startups have managed to raise over $899 Mn this year, showcasing the resilience and potential of the sector even in the face of funding constraints.

October 2023: A Glimmer of Hope Amid the Funding Winter

The month of October provided a glimmer of hope, with Indian startups collectively raising $1.1 Bn, surpassing the funding figures from the corresponding month in the previous year. While this may not completely alleviate the funding challenges, it serves as a testament to the determination and perseverance of Indian founders.

30 Startups to Watch: Showcasing Resilience and Innovation

In the 41st edition of ’30 Startups to Watch,’ the spotlight remains firmly on the SaaS sector, with a significant number of startups in the list hailing from this domain. Additionally, the list also highlights promising startups in the fields of AI, edtech, and fintech, emphasizing the diversification and resilience of the Indian startup ecosystem. These startups, despite the challenges, have managed to break new ground, demonstrating their innovative approaches and their potential to make a significant impact in their respective industries.

Conclusion: Embracing Resilience and Growth

The Indian startup ecosystem’s journey in 2023 has been marked by challenges, but it has also been defined by the unwavering resilience and adaptability of its founders. The SaaS sector’s remarkable growth, alongside the promising developments in AI, edtech, and fintech, serves as a testament to the potential and dynamism of the Indian startup landscape. As we navigate through the funding winter, it becomes increasingly clear that the spirit of innovation and entrepreneurship continues to thrive, promising a bright and robust future for the Indian startup ecosystem.

The Early Years: A Prodigy in the Making

Samir Vasavada’s journey towards entrepreneurial success began at an early age, setting him apart as a prodigious talent. Starting university classes at a mere 12 years old and establishing his first company by the age of 13, his early ventures showcased his innate entrepreneurial spirit and an exceptional aptitude for business.

Initial Setbacks: Learning from Failure

Despite his early promise, Vasavada faced setbacks early in his entrepreneurial journey, with his first two startups failing to gain traction. These experiences, while challenging, served as valuable lessons, shaping his approach and fueling his determination to succeed in the fiercely competitive business landscape.

The Turning Point: Embracing the Unconventional Path

Undeterred by initial failures, Vasavada made a bold decision to drop out of high school, a move that would ultimately define his path to success. Relocating to the vibrant tech hub of San Francisco’s Tenderloin district, he immersed himself in the entrepreneurial culture, leveraging his innovative ideas and relentless drive to propel his company forward.

Overcoming Adversity: A Journey of Resilience

Vasavada’s journey was not without its share of challenges. Faced with numerous obstacles and hurdles, he navigated the complexities of the business world with unwavering determination and resilience. Overcoming financial constraints, industry skepticism, and the pressures of being a young entrepreneur, he remained steadfast in his pursuit of success.

The Billion-Dollar Success: A Testament to Persistence

Through perseverance and an unwavering commitment to his vision, Vasavada’s company achieved a remarkable corporate valuation of $1 billion, propelling him to the forefront of the tech industry at the tender age of 23. His extraordinary achievement solidifies his status as the youngest individual to helm a billion-dollar enterprise, serving as a testament to the power of perseverance and tenacity in the face of adversity.

Conclusion: A Story of Unparalleled Tenacity and Triumph

Vise Samir Vasavada’s extraordinary journey from a high school dropout to the founder of a billion-dollar startup stands as an inspirational testament to the indomitable spirit of entrepreneurship. 

His unwavering determination, resilience in the face of failure, and unconventional approach to success serve as a beacon of hope for aspiring entrepreneurs, highlighting the transformative power of perseverance and innovation in the pursuit of one’s dreams.

 As Vasavada continues to make waves in the tech world, his story remains a source of inspiration for individuals seeking to carve their path to success, regardless of their background or age.

Joselu’s Missed Opportunities

• Striker’s Struggles: Joselu, entrusted with the role of the impact player, missed several key chances, reflecting Real Madrid’s offensive difficulties in the match. His wastefulness in front of goal epitomized the team’s overall struggles, resulting in a frustrating outcome.

• Missed Chances: Despite some promising opportunities, including a close-range effort and a diving header, Joselu failed to convert, adding to Madrid’s frustration in their pursuit of a crucial victory.

Team Efforts and Missed Opportunities

• Valverde’s Early Chance: Federico Valverde’s early opportunity to score within five minutes was thwarted by Stole Dimitrievski, setting the tone for a match marked by missed opportunities for Real Madrid.

• Bellingham’s Impact: Jude Bellingham’s near miss, hitting the bar, further contributed to Real Madrid’s frustration during the first half, emphasizing the team’s difficulty in finding the breakthrough.

Persistence Despite Adversity

• Second-Half Pressure: Real Madrid’s continued pressure in the second half, highlighted by Joselu’s additional missed chance and Vinicius Jr.’s disallowed goal, demonstrated the team’s persistent pursuit of a victory, despite facing defensive resilience from Rayo Vallecano.

• Unsuccessful Attempts: Despite launching 22 shots, Real Madrid’s inability to find the net and secure a win ultimately left them two points behind Girona in the title race, highlighting the significance of converting critical chances in competitive matches.

Conclusion

Real Madrid’s goalless draw against Rayo Vallecano underscored the team’s struggles in converting crucial scoring opportunities, with Joselu’s missed chances and overall offensive inefficiency contributing to the disappointing result. While the team displayed persistence and a proactive attacking approach throughout the match, the inability to capitalize on key moments ultimately hindered their pursuit of securing a vital victory in the title race.

Third-Quarter Financial Results

• Consolidated Revenue Surges: Freshworks’ a Nasdaq-listed SaaS company, third-quarter consolidated revenue reached $153.6 million, marking a robust 19% year-on-year increase, surpassing the estimated range of $149 million to $151 million.

• Improved Non-GAAP Income: The company reported a significant improvement in Non-GAAP income from operations, shifting from a loss of $3.1 million in the third quarter of 2022 to $17.4 million in the same quarter of 2023.

• Customer Growth and Retention: Freshworks attributes its growth to acquiring new customers and retaining existing large clients. The company onboarded nearly 1,000 net customers in the quarter, resulting in a total customer count of 66,600. Customers contributing over $50,000 in Annual Recurring Revenue (ARR) increased by 32% year-on-year.

• Positive Financial Metrics: Freshworks demonstrated positive trends in various financial metrics, including an improved GAAP (Loss) from Operations, a reduced net loss, and a significant improvement in free cash flow, reaching $22.1 million.

Strategic Initiatives and Outlook

• Focus on Larger and Higher-Yielding Customers: Freshworks aims to achieve $1 billion in revenue by 2026, with a strategic focus on attracting larger and higher-yielding customers.

• Monetization of AI Offerings: Freshworks plans to monetize its AI capabilities, specifically its AI chat, Freddy AI, starting in the first quarter of the following year.

• Positive Financial Projections for 2023: Freshworks projected its 2023 revenue to range from $593 million to $596 million, with a marginal growth expected in the fourth quarter, estimated at $156 million to $159 million. The company also revised its non-GAAP operating income guidance and increased its free cash flow estimates for the full year.

Comparison with Competitor and Financial Position

• Comparison with Zoho: Freshworks’ announcement of its goal to achieve $1 billion in revenue by 2026 is noteworthy, especially in comparison to its direct competitor, Zoho, which achieved this milestone in 2022.

• Robust Financial Position: Freshworks maintains a robust financial position, with $1.16 billion in cash, cash equivalents, and marketable securities as of September 30, 2023, indicating a strong foundation for future growth and investment opportunities.

Conclusion

Freshworks’ strong financial performance in the third quarter of 2023, characterized by significant revenue growth, improved operating income, and increased customer base, positions the company well for its ambitious goal of reaching $1 billion in revenue by 2026. With a strategic focus on attracting larger clients and monetizing its AI offerings, Freshworks is poised for continued success in the competitive SaaS market. The company’s positive financial projections and robust financial position further reinforce its potential for sustained growth and innovation in the coming years.

Two young Indian entrepreneurs, Aryan Sharma and Ayush Pathak, have secured a significant investment from OpenAI’s Sam Altman for their startup, Induced AI. Aryan Sharma, one of the co-founders, shared insights into their journey and the fascinating world of coding and AI during a recent podcast on Overpowered.

Their journey began with cold outreach, as Sharma started connecting with tech industry figures at the age of 14 through email. While some discouraged his emails, the duo persevered. They saved money to visit San Francisco, where they attended events, hoping to meet influential figures such as Sam Altman. After dedicated networking and efforts to connect with key players in the AI ecosystem, Aryan Sharma finally had the opportunity to meet Altman.

During their meeting, Sharma expressed his eagerness to be Altman’s secretary to learn from him and OpenAI. They maintained contact, which ultimately led to Altman’s involvement during the funding round for their new AI platform, Induced AI.

Induced AI is a browser-based platform that utilizes an AI agent to automate tasks. The company claims that its AI workers can complete browser tasks efficiently. As a cloud-based solution, it operates seamlessly alongside other tasks on the user’s machine. Induced AI is designed to provide human-like reasoning capabilities, enabling browsers to interact with web services without human intervention, except for authentication.

Aryan Sharma elaborated on their innovation in a tweet, saying, “We let anyone create virtual AI workers that can automate the execution of workflows on a browser in the cloud with human-like reasoning.” Essentially, Induced AI allows businesses to input workflows in plain English, which are then transformed into pseudo-code for handling repetitive tasks, usually managed by back offices.

Induced AI has garnered support from various prominent figures in the AI industry. Apart from Sam Altman, other notable players, including Peak XV, Daniel Gross, and Nat Friedman’s AI grant, have invested in this promising venture initiated by the Indian teenage entrepreneurs. With this backing, Induced AI is poised to make a significant impact in the field of AI-powered automation.

Fresh Bus, an up-and-coming player in the electric inter-city bus service sector, has successfully raised INR 7.5 crore in its latest funding round. Distinguished investors, including Kunal Shah, Founder and CEO of CRED, Sudarshan Venu, Managing Director of TVS Motor Company, and Deepak Garg, Founder and CEO of Rivigo, led this second round of financial backing for the startup.

In a previous seed funding round held in November 2022, Fresh Bus had secured INR 16 crore in funding with support from Ixigo, a prominent online travel solutions platform. With this recent capital infusion, Fresh Bus’s total funding has now reached INR 23.5 crore.

Fresh Bus’s Ambitious Plans for the Funding

Fresh Bus has big plans for deploying this new capital effectively. Sudhakar Reddy Chirra, Founder and CEO of Fresh Bus, has revealed that a significant portion of the funds will be earmarked for technological development. Additionally, some of the funding will be directed towards expanding the company’s workforce.

Chirra underlines that Fresh Bus is more than just a bus service – it integrates technology and sustainability into its business model. The startup harnesses advanced technologies, such as Artificial Intelligence (AI) and Machine Learning (ML), to forecast fares for various routes.

Looking ahead, Fresh Bus is gearing up for substantial expansion. The company aims to introduce 150 new buses and ten additional routes, with a target revenue of INR 20 crore by December 2024.

About Fresh Bus

Fresh Bus, led by Founder and CEO Sudhakar Reddy Chirra, represents a new frontier in inter-city passenger mobility. Chirra’s entrepreneurial journey began in 2008 with AbhiBus, which he nurtured into an INR 1,000 crore GMV brand with positive EBITDA. The company ultimately became part of Ixigo through acquisition.

From April 2023 to October 2023, Fresh Bus experienced substantial growth, reporting a turnover of INR 6.5 crore. Currently operating a fleet of 20 electric buses, the company has ambitious plans to introduce 150 new buses and ten additional routes, with a revenue target of INR 20 crore by December 2024.

Sudhakar Reddy Chirra underscores the company’s commitment to customer satisfaction, safety, On-Time Performance (OTP), and sustainability, all offered at affordable prices. He states, “The ultimate goal is to encourage customers to opt for sustainable modes of transportation, ensuring they enjoy the best travel experience with convenience.”

Indian space-tech company Skyroot Aerospace has secured $27.5 million in a pre-Series C funding round, primarily led by Singaporean investment firm Temasek. The latest funding has brought the total investment in the company to $95 million. Skyroot Aerospace, established in 2018 by Pawan Kumar Chandana and Naga Bharath Daka, rose to prominence after launching India’s and South Asia’s first privately developed rocket. The company provides cost-effective space launch services to the global small and medium-sized satellite markets.

Pawan Kumar Chandana, the co-founder, and CEO of Skyroot Aerospace stated that the funds will be instrumental in accelerating their upcoming launches over the next two years. Chandana has been recognized as a pioneer in India’s private space-tech sector and is committed to building a formidable global space-tech enterprise in India.

India’s Emergence as a Space-Tech Power

Chandana attributes India’s rapid growth in space-tech startups to the formulation of India’s Space Policy, which opened the sector to non-government entities (NGEs). The government established the Indian National Space Promotion and Authorization Centre (IN-SPACe) as a single-window agency for the promotion and authorization of space activities, providing a robust policy framework. He noted that having an independent authorization agency has facilitated business and investment.

Chandana explained that before the policy was in place, raising capital for space-tech startups was significantly more challenging. The policy created an environment of trust that attracted investors to the sector. Furthermore, India’s robust space ecosystem, developed over 60 years, played a crucial role in supporting these startups.

Skyroot Aerospace’s Growth and Vision

In the early stages, Chandana acknowledged that fundraising was a challenging and time-consuming task, taking up around 50% of their efforts. As the space policy came into effect, fundraising became easier, and questions shifted toward scale and growth.

The new funding will be deployed to enhance infrastructure, space technology investments, talent acquisition, and the frequency and capabilities of space launches. Skyroot Aerospace aims to contribute to India’s rise as a global leader in space technology and innovation.

With the global space-tech market valued at approximately $400 billion, India’s current 2% share presents significant potential for growth. Skyroot Aerospace has already achieved notable milestones, such as sending India’s first privately developed rocket, Vikram-S, into space last year. The company is now gearing up for its first orbital space launch in Q1 2024 using the newly unveiled multi-stage launch-vehicle Vikram-1, which can carry payloads of around 300 kg and deploy satellites in lower Earth orbit (LEO).

Skyroot Aerospace’s innovative approach, in conjunction with India’s supportive policy environment, continues to propel the country’s standing in the space-tech sector, positioning it as a formidable player in the global space industry.

Startup Landscape Growth

• In the past five years, India’s startup ecosystem has witnessed significant growth, expanding from 6,000 startups in 2017 to 80,000 by 2022.

• The proportion of women-led startups has grown from 10% in 2017 to 18% in 2022, indicating a notable increase in female participation within the entrepreneurial landscape.

Unicorn Companies and Female Leadership:

• The report highlights an increase in the number of unicorn companies in India, with 105 startups achieving unicorn status in 2022, up from 13 in 2017.

• Notably, the proportion of these unicorn startups led by women has risen from 8% in 2017 to 17% in 2022, showcasing the growing prominence of female leaders within the startup community.

Funding Landscape:

• The venture capital funding for Indian startups surged from $5.9 billion in 2017 to $21.9 billion by 2022.

• The funding allocated to women-led startups increased from 11% in 2017 to 20% in 2022, indicating a positive trend in terms of financial support for female entrepreneurs.

Gender Dynamics in Startups vs. Corporates:

• The report highlights a significant difference in gender representation between startups and traditional corporate firms.

• In managerial positions, startups have 32% female representation compared to 21% in corporates. At the CXO level, startups have 18% women in leadership positions, while corporates have only 5%.

• Startups with female founders also exhibit more gender-inclusive hiring practices, with 2.5 times more women in senior roles compared to those founded by men.

Persistent Challenges:

• Despite the progress, the report emphasizes the existence of challenges that still impede gender parity within the startup landscape.

• Long-term career trajectories show that while 8 out of 10 men in startups occupy director-level positions or higher after a decade, only 5 out of 10 women attain similar roles, indicating a significant disparity in career progression.

Conclusion:

The data presented in the WISER report signifies the encouraging rise of women-led startups in India’s entrepreneurial ecosystem over the past five years. The increased representation of female entrepreneurs, along with a notable rise in funding allocation for women-led ventures, reflects a positive trend toward gender inclusivity and diversity within the startup community.

However, despite these advancements, the report underlines persistent challenges, including discrepancies in long-term career trajectories and representation at the highest organizational levels. Therefore, it calls for continued efforts to address these disparities and foster a more equitable and inclusive environment for women in entrepreneurship, ensuring sustained growth and empowerment within the Indian startup landscape.