CRED’s next funding may come at a cost; Mapping ixigo’s steady rise

Hello,

India’s robust IPO cycle is back!

OYO is hoping the third time’s a charm as it gears up once again to list on public bourses. The hotel aggregator aims to file its draft red herring prospectus between August and September of this year, targeting a valuation between $6-7 billion for the offering. 

SaaS unicorn Amagi is also moving further in its IPO process by converting its holding company into a public entity. The company’s board has approved the transition of ‘Amagi Media Labs Private Limited’ to ‘Amagi Media Labs Limited’.

Meanwhile, Flipkart is gearing up for a major expansion. The Walmart-owned ecommerce giant is set to hire 5,000 new employees in 2025, as it ramps up bets on hyperlocal delivery, fintech, and AI.

In other news, there’s been a tectonic shift in Asian business and geopolitics—all facilitated by K-pop.

Tencent Holdings just snapped up a nearly 10% stake—valued at about $180 million—in SM Entertainment, home to idol groups like EXO, Red Velvet, and SHINee. 

This marks a rare Chinese investment into a South Korean company in recent years. The funding comes as China is expected to soon lift its unofficial ban on K-pop performances in mainland China after nearly a decade.

Culture is the greatest connector. 

In today’s newsletter, we will talk about 

• CRED in talks to raise $75M
• Mapping ixigo’s steady rise
• Democratising football analytics

Here’s your trivia for today: Which was the first country to make broadband internet access a legal right?

Fintech

CRED in talks to raise $75M

Bengaluru-based fintech unicorn CRED is in discussions to raise $75 million in an internal round of funding, marking its first capital infusion in nearly two years. 

The round, which is set to see participation from existing backers GIC, RTP Global, and Sofina, will come at a sharp reset in the company’s valuation—from $6.4 billion in 2022 to $3.5 billion, sources familiar with the development told YourStory.

Key takeaways:

• Founder Kunal Shah is expected to invest approximately $20 million in the round, according to an Entracker report.
• Over the past two to three years, the members-only credit card bill payment platform has significantly evolved its business model, diversifying beyond its core offering into new verticals, including wealth management and vehicle-related solutions.
• Last year, CRED reported that its total revenue surged by 66% to Rs 2,473 crore in FY24 from Rs 1,484 crore in FY23. Meanwhile, its operating losses narrowed by 41% to Rs 609 crore from 1,024 crore​.

Funding Alert

Startup: Citykart

Amount: Rs 538 Cr

Round: Series B

Startup: Fleetx.io

Amount: Rs 113 Cr

Round: Series C

Startup: Slikk

Amount: $10M

Round: Series A

Travel tech

Mapping ixigo’s steady rise

When ixigo announced its FY25 results, the numbers told a compelling story—revenue had grown 23X in six years, profits kept pace, and its user base at over 544 million annual active users for FY25 now includes over half of India’s internet population. But beyond the scale lies a subtler narrative—one of steady evolution focused on solving practical problems for travellers often overlooked by bigger players.

“Our focus has always been on addressing real pain points for India’s aspiring middle class—people in Tier II and III towns who mostly travel by train or bus and seek budget hotels,” Aloke Bajpai, Group CEO, ixigo, tells YourStory. 

Flying high:

• ixigo’s shift from a discovery tool to a full-fledged OTA came just before the pandemic. It started selling tickets and gradually introduced value-added services designed to reduce travel anxiety, such as ‘Travel Guarantee’ and ‘ixigoSmart Be Assured.’
• ixigo’s revenue surged from Rs 40 crore in FY19 to Rs 914 crore in FY25, illustrating a slow build followed by rapid acceleration. Bajpai says, “It’s been a case of ‘slowly, then suddenly.”
• The company’s AI capabilities extend beyond customer support. The AI chatbot ‘TARA’ now includes a voice interface, and ‘ixigo PLAN’ uses AI for trip planning. Many value-added services rely on AI-driven dynamic pricing models.

Startup

Democratising football analytics

In 2020, Sayak Ghosh and Jeet Karmakar incorporated StepOut—a sports tech startup that offers affordable sports analyses to its clients. The startup remained in the minimum viable product stage until it launched an app in July 2023. 

The startup enhances player and team performance through data and video analysis, helping identify areas for improvement and track progress over time.

Kick-off:

• StepOut offers two products. TMS is a SaaS platform that analyses matches and players, and primarily targets coaching staff. The app, meanwhile, allows players to access the stats and highlights of their games.
• The startup also creates a digital profile of players, with details of how they performed in their previous seasons for scouts to get a comprehensive picture of a player's abilities and shortcomings.
• StepOut raised seed funding of $500,000 in July 2024 led by Rainmatter, the investment arm of Nithin Kamath’s Zerodha.  “We are looking to raise a pre-Series A round primarily to kickstart our international growth plans,” Ghosh says. 

News & updates

• Market debut: Circle said it was targeting a valuation of up to $6.71 billion on a fully diluted basis in its US initial public offering, as the stablecoin giant looks to tap into growing optimism around cryptocurrency.
• AI boost: Salesforce said on Tuesday it would buy Informatica for about $8 billion, betting on the data management platform to sharpen its competitive edge in the booming artificial intelligence market.
• Backlash: Tesla’s sales in the European Union slumped for a fourth consecutive month as Elon Musk’s electric vehicle maker struggles to cash in on a growing EV market in the bloc where Chinese rivals are expanding.

Which was the first country to make broadband internet access a legal right?

Answer: Finland. 

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