Decoding WeRize pre Series B round and shareholding pattern

Decoding WeRize’s pre-Series B round and shareholding pattern

Comprehensive financial services platforms WeRize had recently raised $15.5 million in a pre-Series B round led by existing investors 3one4 Capital. British International Investments & Sony Ventures Corporation also joined the round along with existing investor.

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The Bangalore based company did not provide further detail on the funding round at the time, but analyzed regulatory filings to tease out details such as the funding round’s breakdown, participation pattern and startup valuation.

WeRize pre Series B round

The WeRize board had passed a special resolution to allocate 31,670 pre-Series B Mandatory Convertible Preference Shares CCPS at an issue price of Rs 38,172.83 per shares to raise Rs 121 crore or Rs 15.5 crore, as shown in the company regulatory filing with the RoC.

3one4 Capital has led the funding round by injecting Rs 38.75 crore $5 million, followed by British International Investments BII, which put up Rs 23.25 crore $3 million. Sony Ventures Corporation through Sony Innovation Fund, Kalaari Capital and Picus Capital invested Rs 15.5 crore $2 million each. Orios Venture Partners also joined the round and injected the remaining sum of Rs 12.4 crore.

The company has been valued at around Rs 896 crore or $115 million post cash. The company has raised nearly $26 million $25.75 million to date, including the $8 million Series A round.

Founded by former Lendingkart executives Vishal Chopra & Himanshu Gupta, WeRize sells and distributes a broad portfolio of personalized credit, insurance and saving product to 300 million people in more than 4,000 Tier II to Tier IV cities. The company leverages insight from these data point to create personalized credit, group insurance, and saving product.

Following the pre Series B infusion, WeRize co founder Vishal Chopra & Himanshu Gupta collectively own a 42.61% stake. Kalaari Capital, 3one4 Capital, Orios Venture & Picus Capital hold stakes of 16.1%, 13.46%, 10.18% and 7.26%, respectively. The complete shareholding structure of the company can be seen below:

While WeRize has yet to reveal its financial number for FY22, the company operating income grew 5.4 times to Rs 3.16 crore in FY21 from nearly Rs 60 lakh in FY20. According to its annual financial statement filed with RoC, the startup losses also increased by 53% to Rs 7.12 crore during FY21 from Rs 4.65 crore in the previous FY FY20.

Last year, WeRize stated that it is a profitable entity & is on track to become EBITDA positive in early 2022. In addition, it aims to achieve a revenue run rate of $100 million in the next two year, and expects to double that to $200 million by next year. end of 2025.


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