Also in the letter:
■ Nazara, C5i acquisitions
■ Chip firms seek sops
■ Content blocking goes wide
Scoop: Credit card startup Uni eyes fresh funds at over 70% valuation cut amid RBI curbs
Fintech startup Uni, which helps distribute credit cards, is facing a sharp markdown, with its valuation set to drop nearly 70% in an ongoing fundraise.
Driving the news: Sources told us that Fundamentum, the Nandan Nilekani-backed venture fund, is in talks to lead an $18 million funding round that could value the startup at around $95 million (post-money), down from $350 million in 2024.
What’s going on? A series of regulatory and credit-cycle shifts has hit Uni’s model.
- Its P2P lending bet failed to scale.
- Rising delinquencies forced lending partners to pull back.
- Buy now, pay later took a hit after tighter RBI norms were introduced.
Setting context: Indian fintech’s credit boom has cooled after the RBI tightening between 2022 and 2024, which squeezed high-growth, lightly regulated models.
Peers like Slice have managed to adapt, but others, including Uni, OneCard, Jupiter, and Fi, have struggled to find a stable footing. Uni Cards’ massive down round reflects that story.
Exclusive: AI boom due for correction, strongest firms will endure: First Round Capital cofounder Howard Morgan
The current artificial intelligence boom is likely to undergo a market correction, but the strongest companies will become much more powerful after the shakeout, veteran US venture capitalist Howard Morgan, chairman of B Capital, told us in an interview.
Technology bubbles: The influx of capital into AI startups mirrors earlier technology booms, said the 80-year-old investor, who cofounded seed-stage firm First Round Capital.
“I started investing formally in 1982, so that’s more than 40 years. What I’ve learned is that after every bubble ends, a few companies come out much stronger two or three years later,” Morgan said.
Skyhigh valuations: Morgan said companies like OpenAI are overvalued, and that venture capital firms need to stay disciplined in their investment strategies.
“I do think OpenAI is probably overvalued, more overvalued than some others. To justify some of these prices, you need ten years of earnings, and that is very far out for venture capital,” he said.
India focus: Morgan said B Capital, which has backed companies like Meesho, Blackbuck and Icertis, is sharpening its India strategy, with growing interest in deep tech, robotics and applied AI, while also becoming more open to consumer investments in one of the world’s largest markets.
New pockets: Karan Mohla, general partner at B Capital, said there are some India-for-India pockets too, especially in fintech, and the company’s India strategy is now more nuanced, and it fits its strengths much better than before.
Nazara Technologies to acquire 50% stake in Spain-based Bluetile, BestPlay for $100 million
Gaming and technology firm Nazara Technologies will acquire a 50% controlling stake in Spain-based gaming studio Bluetile Games and its engagement platform BestPlay Systems.
Deal details: The $100.3 million deal is the firm’s largest acquisition to date.
- Nazara can acquire the remaining 50% by 2028, after which Bluetile and BestPlay can exit.
- The valuation for this stake will be based on the company’s earnings, at 6.6 times its trailing earnings before interest, taxes, depreciation, and amortisation (Ebitda).
- The total deal size could amount to $314 million.
- The transaction includes performance-linked earnouts of up to $98.2 million, partly in equity, based on revenue and profit targets for 2027–2029.
The transaction will be conducted through its fully owned subsidiary, Nazara Technologies UK.
Quote, unquote: “Many of our past acquisitions have been on the game studio side. We are now doubling down on the core gaming strategy. Earlier, we had diversified into esports and other things. But we are now re-focusing on core gaming. So, we are just executing what we have said,” said its founder and chief executive Nitish Mittersain.
He added that the initial payout of $100.3 million will come from internal funds, while the company may explore external funding for the rest.
Enterprise AI company C5i to buy UK’s Datavid in $50 million all-cash deal
Artificial intelligence and analytics company C5i has bought UK-based data and AI firm Datavid for an undisclosed amount, marking its third acquisition.
More on the deal:
- People familiar with the matter said the deal, completed entirely in cash, is estimated at around $45–50 million.
- After integration, Datavid is expected to add roughly 15% to C5i’s overall revenue.
- The agreement includes a three-year earn-out structure, with Datavid’s leadership set to continue at the company.
- Around 120 AI specialists from Datavid will join C5i as part of the deal.
What else? Industry insiders indicated that C5i could pursue an initial public offering by the end of the year, although Mittal did not confirm this. Previously, in July 2024, C5i acquired analytics firm Analytic Edge in a deal valued at $30–40 million.
Other Top Stories By Our Reporters
Semicon ecosystem players seek sops to meet chip goals: Companies related to semiconductors have sought financial incentives, such as capital subsidies and rebates on power and taxes, to help achieve the stated goals of the second phase of the India Semiconductor Mission (ISM), underscoring the criticality of building a broader ecosystem beyond fabs.
Centre mulls giving content blocking powers to multiple ministries: The government is considering expanding the remit of the Information Technology Act, 2000 to empower critical ministries such as defence, home affairs, external affairs and information and broadcasting to issue content blocking orders under Section 69(A) of the legislation, officials told us.
Early summer heat drives D2C and quick commerce demand for essentials: The early arrival of summer in several parts of India has nudged direct-to-consumer (D2C) brands and quick commerce platforms to accelerate preparations for a prolonged high-demand season.
Global Picks We Are Reading
■ AI chatbots often validate delusions and suicidal thoughts, study finds (FT)
■ China is mobilizing thousands of one-person AI startups (Rest of the World)
■ Why Walmart and OpenAI are shaking up their agentic shopping deal (Wired)
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