Industrial Update – Newsletter – April 2024
IMAP’s Industrials group brings you this monthly update with a focus on latest news, transactions and interesting snippets from the Industrials domain in India
Online B2B Marketplace – An emerging sector in India!
The global online B2B marketplace has seen strong digital adoption with significantly higher penetration levels as compared to India.
In India too, the digital penetration over the next few years is expected to increase by 10x i.e. from US$ 20 bn to US$200 billion.
The key growth drivers in India being the convergence of increasing digital adoption by customers, improved digital infrastructure (payment/logistics/supplychain) and beneficial regulatory framework
The key business models in the B2B e-com space include:
•Horizontal Marketplaces: Platforms serving various customers and sectors
•Vertical Marketplaces: Platforms focused on specific product categories
•E-Service: Provides B2B services or acts as marketplace
•Others: Includes e-auction, classifieds and retail distribution among others
The total funding raised by the B2B space in India is ~US$ 5.5 billion and currently has 5 unicorns- OfBusiness, Infra.Market, Zetwerk, Moglix and Udaan
Some recent transactions
| Apr’24 | Dhruva Space | The space tech startup raised ₹54 Cr. in a fundraise led by IvyCap Ventures and Silverneedle Ventures |
| Apr’24 | Rapidue | The waste management company raised ₹110 Cr. in a fundraise led by IIFL Asset Management |
| Apr’24 | Hyd-Air Engineering | Aeroflex Industries acquired a 100% stake in the hydraulic fitting manufacturer for ₹17.29 Cr. |
| Apr’24 | La Renon | Chrys Capital acquired a 8% stake the pharmaceutical manufacturer for ₹600 cr. |
| Apr’24 | Lithansa Technologies | Aurionpro Solutions acquired a 67% stake in the Ai company for ~₹140 Cr. |
| Apr’24 | Lets Transport | The Logi-Tech company raised ₹63.5 Cr. in funding from Bertelsmann India. |
Recent News
- General Electric completed its transition of splitting into three separate companies with GE Vernova (i.e. GE Energy), GE Aerospace and GE Healthcare all trading under separate stock tickers
- In FY24, India’s defence exports reached an all time high of Rs.21,083 crore (32.5% growth over FY23), supplying its products to over 85 countries; also India exported electronics goods worth $29.12 billion in FY24, up 23.6% compared to a year ago
- IMF, in its latest estimates, has upgraded expected global economy growth in CY24 to 3.2%; strong economic activity in the US and emerging markets has led to this upgrade
- Fears of a full-scale war in the Middle East have led to a rise in oil prices- a barrel of Brent crude is trading at ~$89 (compared to $79 in Jan’24); experts say prices could go to US$ 100 if the war escalates
IMAP Industrials Index & Valuation of sub-segments
Commodity Prices Index
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