Meaning used in Startup word based on valuation

1. Firstly, I would like to appreciate and thanks Chander Sir and whole team for starting this
wonderful initiative which is win-win situation for both organisation as well as team. This
presentation helped me in doing a lot of research and I came to know about so many new things.
This research and PPT is our first start, so I tried to give a best shot. Hope it would be value
addition and from future onwards will work on my weakness if found any during my
presentation.
Special Thanks to Tanisha who also played an active role during finalisation of this weekly
discussion topic.
Thanks
Gurdarshan
Analyst
98889-25886
Tuesday, 05 April 2022
ACKNOWLEDGEMENT
Valuations I Transactions I Regulatory

2. AGENDA
I. INVESTMENT TRANSACTIONS EMPHASIZING ON
VALUATIONS - Swiggy becomes decacorn, valuation
crosses $10.7 bn in new funding round
II. NEW/AMENDED LAWS & REGULATIONS AND
IMPACT THEREOF – SEBI rules for preferential
allotments, IPO , Offer for sale

3. INVESTMENT TRANSACTIONS
EMPHASIZING ON
VALUATIONS

4. Food-delivery giant Swiggy has raised $700 million in Invesco-led new funding, which, according to sources,
has made the outfit a decacorn, almost doubling its valuation to $10.7 billion.
Recent Funding Transaction
• This is the news taken from Business Standard as of 25th January 2022. So, while going through this headline I was
surprised to hear the word decacorn as usually we hear the word Unicorn only.
• Start-up the era of modern India. We came across many such technical words which we all found very interesting
but due to technical jargon we are unable to interpret their actual meaning.
• While analyzing and interpreting the meaning of these words, a question strike in my mind regarding the multiples
given to startups which we usually used for our valuations using the Market Approach- Comparable Company
Multiples.
• How will the multiples vary in different stages of start-ups? What is more relevant to used for our valuation
purpose?
• So, in further slides, we will be decoding these technical words in simple language used in the valuation culture of
startups and try to understand the multiples given to startups falling under these different stages and how it can be
used for our valuation purpose.

5. Technical words and their Meaning
Minicorn, Soonicorn, Unicorn, Decacorn, and lastly Hectocorn are
some most common used terminology in start-up valuations.
There are a lot of steps, a start-ups needs to cross for the badges of
honors like Minicorn, Unicorn, Decacorn, and lastly Hectocorn.
Hearing the name minicorn or unicorn will make you think of the
cartoon your kids are watching. Oh, that's the picture of the unicorn.
Do you wish to know how these terms came into existence, well,
practically all the other terms are derived from the term “unicorn”
Well, in venture capital, the word refers to any start-up that had reached
the valuation of $1 billion.? Aileen Lee, founder, Cowboy ventures It
was Aileen Lee, founder of Cowboy ventures who for the very first time
used this word in 2013 to emphasise the rarity of such start-ups. Since
then, business leaders and publications have used this term quite liberally
to write on or discuss start-ups.

6. Technical words and their Meaning
Minicorn:
Minicorns are start-ups with a valuation of $1million and over. They are
companies that are pretty new in the game, but still have some valuation
which further proves that the company has the potential of becoming a
unicorn in the upcoming future. As of
Soonicorn:
Soonicorn aka “soon to be unicorn” are start-ups that have the potential
to enter the unicorn club. Soonicorns are for the most part subsidized by
Angel Investors or financial speculators, in view of future projections or
an apparent valuation. It is consistently in overabundance of start up’s
genuine worth. If a bigger company procures the newbie startup, thus
giving them a valuation more than their real total worth.
Why only USD
denominator? And can we
arrive at these terms due
currency appreciation on
conversion the USD value?

7. Technical words and their Meaning
This is assisting new businesses with before long joining the One
Billion Net worth Club or Unicorn Club.
Unicorn:
As I have already discussed the term unicorn and how the term came
into existence. A unicorn is any privately held startup that hits a billion
dollars or more. This term was coined by Aileen Lee, the founder of
Cowboy Ventures, back in 2013
Decacorn:
A decacorn is a start-up company that has a current valuation of over
$10 billion. Decacorns are the evolved versions of unicorns. What
separates them isn’t simply the funding. It’s the distinctive business
model, the revenue model, and also the rate. They’ve received such
investments and have a post-money valuation of over $10 billion as a
result of they’ve shown the globe a fantastic growth rate that the others
couldn’t.

8. Technical words and their Meaning
Hectocorn:
A tech company valued over 100 billion dollars is called
Hectocorn. These start-ups are also known for the term “Super
Unicorn”. As of 2021, only two companies — ByteDance &
SpaceX — are part of this elite club of Hectocorn companies.
ByteDance, the parent company of Tik Tok, was the first
company to become a Hectocorn after it was valued at more than
$100 billion in May 2020. SpaceX exceeded the $100 valuation
mark in October 2021, becoming the second Hectocorn.
It is important to note that these Hectocorn’s are private
companies; not listed on the stock market. Stripe, privately
valued at $95 billion, will most likely become the third member
of the Hectocorn club.

9. Top Hectocorn & Decacorn Companies in World as of January 2022

10. Valuation and Multiples of Swiggy during these different stages till becoming the
Decacorn

11. Valuation and Multiples of Swiggy during these different stages till becoming the
Decacorn
`
Swiggy is India’s online food ordering and delivery platform. Founded in July 2014, Swiggy is based in Bangalore, and
operates in 500 Indian cities, as of September 2021. Apart from food delivery, Swiggy also provides on-demand grocery
deliveries under the name Instamart, and an instant package delivery service called Swiggy Genie.
Swiggy has raised $700 million in Invesco-led new funding, with a valuation of $10.7 billion in December 2021
Stages Of Funding
Company
Amount
(US$M)
Amount
(INR Cr)
Round Stage Date
Revenue
(INR Cr)
Pre Money
Valuation (INR Cr)
Revenue Multiple
(Pre)
Post Money
Valuation (INR Cr)
Revenue Multiple
(Post)
Swiggy 450 3,357.00 11 Late Jul-21 NA NA NA NA NA
Swiggy 800 5,853.56 10 Late Apr-21 2,955.60 27,648.59 9.35 33,502.14 11.34
Swiggy 152.64 1,111.35 9 Late Feb-20 1,297.30 24,942.26 19.23 26,053.61 20.08
Swiggy 1,000.00 7,163.99 8 Late Dec-18 1,297.30 17,910.00 13.81 23,641.19 18.22
Swiggy 235 1,586.26 7 Growth-PE Jun-18 456.5 7,815.67 17.12 9,233.18 20.23
Swiggy 100 640.98 6 Growth-PE Jan-18 145.67 4,207.62 28.88 4,848.61 33.28
Swiggy 80.51 520 5 Growth-PE May-17 145.67 2,069.58 14.21 2,589.57 17.78
Swiggy 15 100 4 Growth-PE Sep-16 145.67 1,267.69 8.7 1,367.77 9.39
Swiggy 7.1 47.32 3-B Growth-PE Apr-16 23.59 890.35 37.74 937.67 39.75
Swiggy 35 230.34 3 Growth-PE Dec-15 23.59 660.01 27.98 890.35 37.74
Swiggy 16.5 101.61 2 Early Jun-15 0.12 217.97 NA 319.58 NA
Swiggy 2 12 1 Early Feb-15 0.12 22.1 184.17 34.1 284.17
Source: Venture Intelligence Database

12. Valuation and Multiples of Swiggy during these different stages till becoming the
Decacorn
`
0
50
100
150
200
250
300
Revenue Multiples During Different Stages
Revenue Multiple (Pre) Revenue Multiple (Post)
Why multiples are higher at
the initial stages?
Any main reason? Should
we check for some other
Start-ups?

13. Valuation and Multiples of Unacademy during these different stages

14. Valuation and Multiples of Unacademy during these different stages
Unacademy is an Edtech company established in 2015. The company had its beginnings as a Youtube channel created by
Gaurav Munjal and started by Dheeraj Meena. Later on, in 2015, the company was registered in Bengaluru as an education
company. The company has entered the Unicorn club in September 2020 after it raised $150 million from Softbank and
other existing investors. It is an educational platform with a massive transformative purpose of being the world’s largest
educational repository by empowering great educators and making it accessible to everyone.
Source: Venture Intelligence Database
Stages of funding
Company
Amount
(US$M)
Amount
(INR Cr)
Round Stage Date
Pre Money
Valuation (INR Cr)
Revenue Multiple
(Pre)
Post Money
Valuation (INR Cr)
Revenue Multiple
(Post)
Unacademy 440.00 3,270.60 9 Late Aug-21 NA NA 25,586.72 297.44
Unacademy 50.00 365.00 8 Late Jan-21 NA NA NA NA
Unacademy 87.00 638.67 7 Growth-PE Nov-20 13,529.07 157.28 14,167.74 164.70
Unacademy 152.64 1,122.37 6 Growth-PE Sep-20 9,065.50 413.95 10,187.87 465.20
Unacademy 104.08 777.10 5 Growth-PE Feb-20 2,691.76 122.92 3,468.86 158.40
Unacademy 51.10 350.20 4 Growth-PE Jun-19 1,221.88 55.80 1,572.08 71.79
Unacademy 21.00 144.19 3 Growth-PE Jul-18 615.59 NA 756.28 NA
Unacademy 12.93 83.90 2 Early Sep-17 228.70 43.73 312.60 59.77
Unacademy 4.44 29.29 1 Early Jan-17 87.61 NA 116.89 53.31
Unacademy 0.85 5.73 Seed Early Aug-16 44.26 NA 49.98 NA
Unacademy 0.60 3.74 Seed Early Dec-15 23.46 NA 27.20 NA

15. Valuation and Multiples of Unacademy during these different stages
0
10
20
30
40
50
60
70
80
Revenue Multiples During Different Stages
Revenue Multiple (Pre) Revenue Multiple (Post)
Why multiples are higher at
the later stages?
Any main reason? Should
we check for some other
Start-ups?

16. • From the above chart we can interpret the multiples assigned in the initial stages to Swiggy are higher due to growth
potential seen in the start-ups, but does that prevail in all industries?
• In Unacademy, we have seen the multiples are higher at the later stages. Why this is so?
• We must be very clear before using the multiple approaches in start-ups.
KEY TAKE-AWAYS

17. Valuation and Multiples of Swiggy during these different stages till becoming the
Decacorn

18. Valuation and Multiples of Swiggy during these different stages till becoming the
Decacorn
`
1. Minicorn (2015-2016)
Swiggy was founded in 2014, at the time players like
Zomato, TinyOwl and Foodpanda had built marketplaces
that connected customers to restaurants but “outsourced”
delivery to either restaurants or third-party logistics
providers. However, Swiggy was convinced that the only
way to crack the food delivery market was to build an
extensive logistics network.
Seeing their business model working seamlessly, many
investors got interested in funding the venture and Swiggy
received its first cheque of $2 million from Accel and
SAIF Partners.
Swiggy raised around $75m in funding between 2015 to
2016, during this period it saw revenue growth of
20,000%. The revenue multiple in early stages of funding
for Swiggy was (184x indicating a high growth potential.
Observation: Higher the growth potential, higher the
multiple

19. Valuation and Multiples of Swiggy during these different stages till becoming the
Decacorn
`
2. Soonicorn (2017- January 2018)
With 6x growth in 3 years of its launch, Swiggy was
leading the Indian food tech space, thanks to its customer
understanding and adaptability.
This phase showed another series of funding of around
$180m. As the growth stabilised from 20,000% to 500% in
2016 to 2017, the revenue multiple also stabilized at
around 20x pre money value.
3. Unicorn (June 2018 to 2021)
Amid strengthening its leadership, introducing multiple
initiatives including Swiggy Access and Capital Assist, all
in all undergoing a revamp and the team claiming to have
seen a 500 per cent increase in revenues from the last
financial year, Swiggy raised $235m at a valuation of
$1.1b to entered the unicorn club. During the period June
2018 to 2021 it raised a total of $2.6b with valuation of
4.9b around 17.12x pre money value.
Observation: Revenue multiple falls as the growth
rate dip compared with previous the stage.

20. Valuation and Multiples of Swiggy during these different stages till becoming the
Decacorn
`
4. Decacorn (2022)
With $700 million in Invesco-led new funding, Swiggy entered into Decacorn club with a valuation of
$10.7 billion in December 2021
INFORMATION RELATED TO MULTIPLES IS NOT YET AVAILABLE ON VENTURE
INTELLIGENCE. HOWEVER, WE ARE EXPECTING THE REVENUE MULTIPLE ON THE LOWER
SIDE.

21. NEW/AMENDED LAWS &
REGULATIONS AND IMPACT
THEREOF

22. Amendment in SEBI “Issue of Capital and Disclosure Requirements”
Regulations, 2018 effective w.e.f. 14th January 2022
Regulation No. OLD PROVISION (CIRCULAR
DATED SEPTEMBER 11, 2018)
NEW PROVISION (CIRCULAR DATED JANUARY 14,
2022)
OBSERVATIONS
166A No Valuation Report required in
case of preferential issue which
may result in change in control
Any preferential issue, which may result in a change in
control or allotment of more than five per cent of the post
issue fully diluted share capital of the issuer, to an allottee or
to allottees acting in concert, shall require a valuation report
from an independent registered valuer
The purpose of this amendment is to ensure
safeguard of minority shareholder’s right as many
companies try to give controlling stake at an unfair
price to private equity investors, valuation shall bring
transparency to such transactions
164 The price of equity share for
preferential allotment shall be high
of average of the weekly high and
low of the volume weighted
average price (VWAP) of preceding
26 or 2 weeks
The price of equity share for preferential allotment shall be
high of the volume weighted average price (VWAP) of
preceding 90 or 10 trading days
Lowering the time period will enable the price of
shares to be more reflective of recent changes in
market
Sebi extends anchor investors' lock-in period to 90 days for 50% portion. The existing lock in of 30 days shall continue
for 50% of the portion allocated to anchor investor, says Sebi as part of stricter measures to reform IPO market. This is
applicable from the date of allotment for all issues opening on or after April 1, 2022," said the market regulator in a
statement.

23. LATEST MARKET NEWS

24. LATEST MARKET NEWS IN PAST WEEK
• Oil major Adani Wilmar's IPO (initial public offering) was subscribed 56 per cent on the first day of the issue today.
The IPO received bids for 7,04,43,165 shares against 12,25,46,150 on offer. As per a BSE update, retail individual
investors received 96 per cent subscription, while qualified institutional investors received 30 per cent subscription and
non-institutional investors received 54 per cent subscription.
• Tech startups see massive erosion in valuations from their peaks. The lowest hit was as follows
• Paytm (One97) INR 875.5
• Zomato INR 84.10
• Nykaa (FSN E-Commerce Ventures) INR 1661.90
• ICAI flags concerns over CA Act amendment bill to Parliamentary panel. The bill seeks to amend the laws governing
chartered accountants, cost accountants and company secretaries. Parliamentary Standing Committee is going to hear
on 3 February 2022
• Union Budget 2022-23 will be presented by Finance Minister Nirmala Sitharaman in "paperless form", the government
said on January 27 on February 1. The application, named 'Union Budget Mobile App', has been launched for the
lawmakers and the general public.
If you are interested to read the news in detail, kindly go through the attached links