Trump, Tariffs & VCs, Unacademy’s Path To Profitability & More

Trump, Tariffs & VCs

Global markets are on a roller coaster, investors are clueless, and the Indian startup ecosystem is nothing but a silent spectator to what is yet to come. At the centre of this is Donald Trump’s frantic tariff war, which has the potential to set off a pandemic-like crisis, minus the disease.

Although the US has given a 90-day relaxation, temporarily deferring tariff hikes for many countries, including India, the horizon still appears clouded due to the uncertainty ahead. But, what does it mean for VCs?

Fear Of A Covid-Like Crisis Ahead? VCs are reassessing timelines and exit strategies, while foreign limited partners are delaying capital deployment. The concern? Much like the Covid-19-triggered chip shortage, Trump’s tariff war could cause long-term disruptions in global supply chains.

The Wait & Watch Strategy: While Indian startup investors seem to be groping in the dark to understand the impact of the US’ tariff decision on the country, foreign LPs are sitting on the fence and conserving their funds for now as more clarity emerges. 

Why Are VCs Concerned? The unpredictable tariff disputes have disrupted long-term investor forecasts, compelling VCs to reassess how they revalue their portfolio companies, particularly during the remainder of Trump’s presidency.

Any Silver Lining? Notwithstanding the fears of another capital drought, investors see tariff wars as a chance for India’s deeptech manufacturing and exports to grow. With sectors like defence tech, semiconductor, and spacetech in focus, VCs expect US investment in Indian startups to continue in a more calibrated manner in the long term. 

Even though VCs see India in a more advantageous position compared to China and other countries, much could change “forever” in a matter of two quarters. As uncertainties loom large, here’s how Trump’s tariff gambit is forcing VCs to rethink fundraising plans.

From The Editor’s Desk

Unacademy On Path To Profitability: CEO Gaurav Munjal has claimed that 70% of the edtech startup’s offline centres are on track to turn profitable this year. He claimed that Unacademy will reduce cash burn by nearly 50% YoY to under INR 200 Cr in 2025.

HouseEazy Eyes INR 100 Cr: The proptech startup is in advanced discussions to raise about $11.7 Mn in funding from a large unnamed VC fund and existing investor Chiratae Ventures. Founded in 2021, HouseEazy operates a marketplace for reselling houses.

BRND.ME Raises INR 48 Cr Debt: The Tiger Global-backed house of brands startup, which was formerly called Mensa Brands, is raising INR 48 Cr debt from Stride Ventures. This comes at a time when BRND.ME is in the process of shifting its base to India.

PhonePe’s Pincode To Deliver Meds In 10 Mins: The fintech giant’s ecommerce platform, Pincode, has rolled out a 10-minute medicine delivery service in Bengaluru, Pune and Mumbai. This follows Pincode piloting its quick commerce service in six cities last year. 

CCI Breather For Zomato: The competition watchdog has ruled that platform fees and delivery charges levied by the foodtech major do not amount to unfair conduct. The case pertains to a plea that alleged that Zomato indulged in anti-competitive practices. 

Google Settles Smart TV Antitrust Case: The big tech major has agreed to pay INR 20.24 Cr to settle an antitrust case in the smart TV segment. Google also agreed to provide a standalone licence for Play Store and Play Services for Android smart TVs in India. 

KRAFTON Incubator Unveils Second Cohort: The South Korean gaming major has selected six gaming studios across the country for the second cohort of its incubation initiative. KRAFTON will offer $150K in grants and mentorship to selected startups.

India Mulls 10% Cap On Chinese JV Stake: Amid the ongoing tariff wars, the Centre plans to cap Chinese investments in electronics joint ventures at 10%, contingent on technology transfer, prioritising local manufacturing development.

Inc42 Startup Spotlight

How CredResolve Is Using AI For Debt Resolution 

High delinquency rates, even for small ticket size loans, have been a major pain point for India’s NBFCs. Looking to solve this is Bengaluru-based CredResolve with its GenAI playbook. 

Tackling Defaults With AI: Founded in 2023 by Balaji Koustubha, G Prashant Kumar, and Vijay Kumar, CredResolve becomes a mediator between the borrower and the lender and helps in streamlining the debt resolution process. 

The startup uses its AI-powered systems to assign credit scores to borrowers based on their ability to repay. Further, it sends automated digital legal notices to defaulters and manages the online litigation process. Besides, it also creates daily planners for loan collection agents and provides workflows for digital communication. 

The Burgeoning Opportunity: Working with the likes of major financial players like IDFC First Bank, L&T Finance, MobiKwik, and Lendingkart, CredResolve is looking to make a dent in the Indian lending tech market, which is estimated to become a $1.Tn opportunity by 2025-end. 

With competitors sharpening their claws, can CredResolve disrupt the debt collection with its AI stack?