In a major relief to thousands of start-ups, most of which have been slapped with tax notices, the government on Tuesday raised the cap of funding by unlisted firms or individuals in a start-up that would be exempted from the so-called angel tax to Rs.25 crore from the current Rs.10 crore and also relaxed a clutch of rules to ease investment flow into such entities. Investments by listed companies having a net worth above Rs 100 crore or annual turnover of Rs.250 crore will be exempt from any limit or tax. Since a large proportion of the notices already issued are typically “assessment notices”, they will be covered by the new rules and quashed. The department for promotion of industry and internal trade (DPIIT) has also relaxed rules to recognise all those companies that are in operation for up to 10 years, instead of the current seven years, as start-ups, if they meet other eligibility criteria on innovation and turnover. Even the annual turnover limit for the start-up tag has been raised four times to Rs.100 crore to extend benefits meant for start-ups to a much larger number of companies.
Bengaluru-based ride-hailing company, Ola has finally confirmed investment from Flipkart cofounder Sachin Bansal. In a statement released today, Ola announced that Sachin has led an investment of $92 mn (Rs.650 cr.) in the company. After Sachin Bansal’s investment, total funding in Ola’s ongoing Series J round has now risen to about $166 mn.
Logistics company XpressBees has raised Rs.35 crore in venture debt financing from InnoVen Capital, the Temasek-backed specialty lending firm. The seven-year-old venture provides end-to-end ecommerce-focused logistics services, including, first and last mile delivery and reverse logistics, offering clients services such as real-time tracking, multiple payment collection and processing options. Till date, XpressBees has raised an estimated $56 million in equity financing from the likes of SAIF Partners, Chiratae Ventures and Valiant Capital.
Indian restaurant chain Lite Bite Foods has acquired four brands from Bellona Hospitality, the food and beverages arm of Phoenix Mills Group, for an undisclosed amount. The brands acquired include Shizusan, which has outlets in Mumbai, Pune and Bangalore, 212 All Day and All Good, and Bar.
Mumbai-based Pantomath Group and Pi Square have formed a joint venture partnership, with an aim to source, invest and nurture emerging businesses. The Fund aims to create a platform to source, invest and nurture emerging businesses that are at inflection point of their growth trajectory, thus partnering with them to establish a sustainable and scalable business model.
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