Tiger Global & Vogo in talks for $40-$50 million funding round

New York-based investment firm Tiger Global Management is in preliminary talks with Vogo Automotive, which owns and operates an eponymous scooter rental platform, to invest $40-50 million in the Bengaluru-headquartered startup, according to people aware of the development.

Why does it matter?

A potential deal could be the latest in a string of risk capital transactions that have been made, or are in the process of being completed in India’s still nascent, but fast-growing mobility sector.

ET had reported earlier this week that Vogo, which was founded in 2016 by Anand Ayyadurai, Padmanabhan Balakrishnan and Sanchit Mittal, has also had conversations with Japanese investor SoftBank, although it is unclear whether the same will lead to an actual investment. Read more

Top VCs ready big cheques for proven winners

Top venture capital investors, including Sequoia Capital, Matrix Partners and Lightspeed Venture Partners, are cutting large cheques for second-time founders and seasoned industry veterans for idea stage startups, as they look to get in early on the most competitive seed and series A funding deals.

What does that really mean?

Entrepreneurs with a track record of success are more likely to succeed than first time entrepreneurs and those who have previously failed, according to a research paper from Harvard Business School titled ‘Skill vs Luck in Entrepreneurship and Venture Capital’.
Investors and industry watchers say most founders and top executives are closely guarding their equity and may not want to shell out 20-25% at discounts, which is the reason why they get large cheques and high valuations.

Research also suggests second-time founders have a much higher chance of having another exit. Read more

More women going up the ladder in global tech firms

A growing number of women have taken up leadership roles at the India units of global technology firms. Very often, they come from a strong engineering and technology background and drive tech roles, not just a business function.

Why is it significant?

Companies, especially multinationals, are increasingly veering around to the view that a woman at the helm helps bring in a different perspective and approach to business.

One reason why women are suddenly rising to the top in tech companies is also to do with how long the industry has been around in India. Tech roles have been there for a considerably shorter time period compared to more traditional services or marketing roles.

Product engineering is now becoming a big part of the industry and as it grows, more women leaders will emerge for these roles, said Anand Subramaniam, Associate Director at management and strategy consulting firm Zinnov. Read more

Swiggy hitches a ride with Bounce for bike taxi pilot

Online food delivery service Swiggy has tied up with scooter-sharing startup Bounce for a bike taxi pilot in Indore and Ahmedabad, four people aware of the partnership said.

What led to this?

The pilot started about two months ago with Swiggy’s delivery personnel using Bounce’s app to pick up and drop customers when food delivery orders are low, sources said. In this case, the bikes and personnel are Swiggy’s while Bounce acts as a platform where they can find customers.

Another factor that appealed to both companies is that the markets are small and chances of regulatory hurdles are low. Since transport is part of state legislation, several cities do not allow this as a form of ferrying passengers and have outlawed bike taxis. Apart from that, those who allow bike taxis say that the identity of the rider, fitness certificate of the vehicle and the right insurance documents are essential before starting operations. Read more

Pipeline for large deals very robust: Infosys CEO Salil Parekh

As Infosys’ clients look to invest in technology to transform their businesses, the pipeline for large deals “is very robust”. Infosys CEO Salil Parekh, who has invested in building capabilities in digital and cloud, shoring up sales and its onsite delivery presence, told ET in an interview that it is now confident to exploit the opportunity.

Why does it matter?

"We see a lot of demand coming in data, cloud, the whole experience in the digital studios that we have; cyber security and IoT space. I don't have a view on whether we are being aggressive. As long as we remain client focused and that allows us to say ‘look our guidance is 8.5-10%’, we are delighted. If that changes tomorrow to something else, I'm extremely happy," Parekh said. Read more