 Morning Dispatch |
Food delivery growth revives; Kreditbee eyes $1B valuation
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Happy Tuesday! Food delivery majors registered strong growth in the December quarter. This and more in today’s ETtech Morning Dispatch.
Also in the letter:
■ AI bolt-ons threaten IT, cybersecurity
■ Urban Company’s InstaHelp surge
■ Amazon India’s new headquarters
India’s food delivery duopoly returned to over 20% growth in the October December quarter, with Zomato’s gross order value (GOV) up 21.3% and Swiggy’s rising 20.5%, beating internal and Street estimates.
What’s driving it: Both platforms are leaning into affordability to widen their user base — cutting minimum order values, promoting sub-Rs 99 meals, and curating budget menus. Much of the recent expansion is coming from customers with average order values in the Rs 100–200 range.
Profit cushion: The push comes from a position of strength. Zomato’s adjusted Ebitda rose 25% year-on-year to Rs 531 crore, while Swiggy’s food delivery Ebitda jumped 48% to Rs 272 crore, aided by higher platform fees.
Why it matters: With Rapido and Flipkart eyeing entry, protecting market share in a $9 billion market projected to nearly triple by FY30 is critical.
User momentum: Monthly transacting users rose over 21% for both players, signalling renewed headroom for growth.
Also Read: ETtech Explainer: Eternal’s older bets hover near breakeven as newer ventures burn cash
Madhusudan Ekambaram, CEO, Kreditbee
Kreditbee is in talks to raise $120 million (around Rs 1,000 crore) in fresh funding, a move that could value the Bengaluru-based fintech at over $1 billion, making it a unicorn.
Tell me more: The round is expected to be led by a new external investor, with existing backers also planning to increase their commitments, according to sources.
The company is targeting a post-money valuation of about $1.2 billion. One source said Kreditbee plans to go public within the next one to two years at a probable market valuation of $1.5–1.7 billion.
Zoom out: In July 2025, ET reported that the company received board approval to convert into a public limited company as part of its IPO preparations.
Financials (December 2025 quarter):
(L-R) Shaurya Gupta, Divyansh Ameta, and Chandan Yadav, founders, Wishlink
Creator commerce platform Wishlink has raised $17.5 million in a round led by Vertex Ventures Southeast Asia and India, with participation from existing investors Fundamentum and Elevation Capital.
Fund usage: The startup plans to expand its creator and brand network and invest in technology to enhance its creator tools.
Tell me more: It has about 40,000 active monthly creators and works with over 500 brands and marketplaces, including Amazon, Meesho and Myntra.
Also Read: Kids’ essentials brand Basil raises $2 million in round led by Prime Venture Partners
(L-R) Amar Sneh and Deepak Kumar, founders, Oncare
Gurugram-based healthcare startup Oncare has raised Rs 27 crore in a Series A round led by Sky Impact Capital, with participation from Huddle Ventures, Lotus Herbal Group, Steerx and Tremis Capital.
Fund usage: The startup will expand into Bengaluru and open centres across tertiary cities in UP, Bihar and West Bengal, pitching 30–40% cheaper cancer treatment than corporate hospitals.
About the company: Founded in 2023 by former Pristyn Care executives Amar Sneh and Deepak Kumar, Oncare builds and operates oncology departments inside mid-sized, non-branded hospitals.
Also Read: Recruitment tech startup HireBound raises $2 million in round led by Kalaari Capital
In under 10 days, Anthropic triggered two selloffs in enterprise tech stocks after launching new AI tools — first its Cowork agent, then Claude Code Security.
What’s happening? Analysts say mid-sized developer tools, code-related security and software firms in the US and India are most at risk. Businesses that have merely added AI features to existing software, rather than building core AI products, could face serious pressure.
“Point security or SaaS players with AI bolt-ons displacing IT and low-code platforms face high risk,” said Gaurav Vasu, CEO of UnearthInsight.
Also Read: AI services a real opportunity for IT to adapt, move fast: Vinod Khosla
By the numbers:
Yet the overall market continues to expand. Gartner projects global IT spending to reach $6.1 trillion in 2026 and $7.6 trillion by 2029, largely driven by AI investments.
Also Read: $1.5-trillion tech services industry is still standing: Infosys CEO Salil Parekh
Abhiraj SIngh Bhal, CEO, Urban Company
Urban Company's quick services vertical InstaHelp crosses 50,000 daily bookings: Urban Company’s quick service vertical InstaHelp has crossed 50,000 daily bookings less than a year after launch, at a time when the listed home services platform is expanding into high-frequency use cases.
Amazon's second-largest Asia office opens in Bengaluru: The 1.1-million-sq-ft facility is the company’s new India headquarters and will house more than 7,000 employees across ecommerce, operations, payments, technology and seller services.
Aakash Educational Services appoints Alka Garg as its CFO: Aakash Educational Services Limited (AESL) on Monday announced the appointment of Alka Garg as its new chief financial officer (CFO). Prior to this, she was the CFO of Yum Restaurants India and has also worked with Siemens, GreyOrange, Bharti Airtel, and Deloitte.
■ Say Goodbye to the Undersea Cable That Made the Global Internet Possible (Wired)
■ US plans Peace Corps-style “Tech Corps” to counter China’s AI exports (Rest of the World)
■ Uber launches autonomous vehicles services venture in robotaxi push (FT)
Also in the letter:
■ AI bolt-ons threaten IT, cybersecurity
■ Urban Company’s InstaHelp surge
■ Amazon India’s new headquarters
Food delivery momentum returns for Zomato and Swiggy in December quarter
India’s food delivery duopoly returned to over 20% growth in the October December quarter, with Zomato’s gross order value (GOV) up 21.3% and Swiggy’s rising 20.5%, beating internal and Street estimates.
What’s driving it: Both platforms are leaning into affordability to widen their user base — cutting minimum order values, promoting sub-Rs 99 meals, and curating budget menus. Much of the recent expansion is coming from customers with average order values in the Rs 100–200 range.
Profit cushion: The push comes from a position of strength. Zomato’s adjusted Ebitda rose 25% year-on-year to Rs 531 crore, while Swiggy’s food delivery Ebitda jumped 48% to Rs 272 crore, aided by higher platform fees.
Why it matters: With Rapido and Flipkart eyeing entry, protecting market share in a $9 billion market projected to nearly triple by FY30 is critical.
User momentum: Monthly transacting users rose over 21% for both players, signalling renewed headroom for growth.
Also Read: ETtech Explainer: Eternal’s older bets hover near breakeven as newer ventures burn cash
Kreditbee eyes $120 million pre-IPO fundraise at unicorn valuation
Kreditbee is in talks to raise $120 million (around Rs 1,000 crore) in fresh funding, a move that could value the Bengaluru-based fintech at over $1 billion, making it a unicorn.
Tell me more: The round is expected to be led by a new external investor, with existing backers also planning to increase their commitments, according to sources.
The company is targeting a post-money valuation of about $1.2 billion. One source said Kreditbee plans to go public within the next one to two years at a probable market valuation of $1.5–1.7 billion.
Zoom out: In July 2025, ET reported that the company received board approval to convert into a public limited company as part of its IPO preparations.
Financials (December 2025 quarter):
- Net profit: Rs 137.8 crore (up from Rs 47 crore a year earlier).
- Operating revenue: Rs 805 crore (up from Rs 566.2 crore).
Wishlink bags $17.5 million
Creator commerce platform Wishlink has raised $17.5 million in a round led by Vertex Ventures Southeast Asia and India, with participation from existing investors Fundamentum and Elevation Capital.
Fund usage: The startup plans to expand its creator and brand network and invest in technology to enhance its creator tools.
Tell me more: It has about 40,000 active monthly creators and works with over 500 brands and marketplaces, including Amazon, Meesho and Myntra.
Also Read: Kids’ essentials brand Basil raises $2 million in round led by Prime Venture Partners
Oncare raises Rs 27 crore
Gurugram-based healthcare startup Oncare has raised Rs 27 crore in a Series A round led by Sky Impact Capital, with participation from Huddle Ventures, Lotus Herbal Group, Steerx and Tremis Capital.
Fund usage: The startup will expand into Bengaluru and open centres across tertiary cities in UP, Bihar and West Bengal, pitching 30–40% cheaper cancer treatment than corporate hospitals.
About the company: Founded in 2023 by former Pristyn Care executives Amar Sneh and Deepak Kumar, Oncare builds and operates oncology departments inside mid-sized, non-branded hospitals.
Also Read: Recruitment tech startup HireBound raises $2 million in round led by Kalaari Capital
Why AI bolt-ons won’t help IT, cybersecurity weather this storm
In under 10 days, Anthropic triggered two selloffs in enterprise tech stocks after launching new AI tools — first its Cowork agent, then Claude Code Security.
What’s happening? Analysts say mid-sized developer tools, code-related security and software firms in the US and India are most at risk. Businesses that have merely added AI features to existing software, rather than building core AI products, could face serious pressure.
“Point security or SaaS players with AI bolt-ons displacing IT and low-code platforms face high risk,” said Gaurav Vasu, CEO of UnearthInsight.
Also Read: AI services a real opportunity for IT to adapt, move fast: Vinod Khosla
By the numbers:
- Motilal Oswal estimates rapid AI-driven pricing pressure over 12–18 months could cut large-cap IT earnings by about 10%.
- Markets are factoring in free cash flow growth of just 6.5% over the next decade, far lower than previous high-growth periods.
- UnearthInsight expects sector growth to slow to 3–4% in FY27, with about 1.5 percentage points coming from acquisitions rather than organic demand.
Yet the overall market continues to expand. Gartner projects global IT spending to reach $6.1 trillion in 2026 and $7.6 trillion by 2029, largely driven by AI investments.
Also Read: $1.5-trillion tech services industry is still standing: Infosys CEO Salil Parekh
Other Top Stories By Our Reporters
Urban Company's quick services vertical InstaHelp crosses 50,000 daily bookings: Urban Company’s quick service vertical InstaHelp has crossed 50,000 daily bookings less than a year after launch, at a time when the listed home services platform is expanding into high-frequency use cases.
Amazon's second-largest Asia office opens in Bengaluru: The 1.1-million-sq-ft facility is the company’s new India headquarters and will house more than 7,000 employees across ecommerce, operations, payments, technology and seller services.
Aakash Educational Services appoints Alka Garg as its CFO: Aakash Educational Services Limited (AESL) on Monday announced the appointment of Alka Garg as its new chief financial officer (CFO). Prior to this, she was the CFO of Yum Restaurants India and has also worked with Siemens, GreyOrange, Bharti Airtel, and Deloitte.
Global Picks We Are Reading
■ Say Goodbye to the Undersea Cable That Made the Global Internet Possible (Wired)
■ US plans Peace Corps-style “Tech Corps” to counter China’s AI exports (Rest of the World)
■ Uber launches autonomous vehicles services venture in robotaxi push (FT)
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