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Funding and acquisitions in Indian startup this week [17 - 22 Jun]

EntrackrEntrackr · 1y ago
Funding and acquisitions in Indian startup this week [17 - 22 Jun]
Medial

As many as 41 Indian startups raised around $906.7 million in funding this week. These deals count 10 growth-stage deals and 22 early-stage deals. Moreover, eight early-stage and one growth-stage startup kept their transaction details undisclosed. In the previous week, about 31 early and growth-stage startups cumulatively raised over $336 million in capital. [Growth-stage deals] Among the growth-stage deals, 10 startups raised $857.4 million in funding this week. Quick commerce company Zepto grabbed the limelight with its $665 million funding. Ummeed Housing Finance, which provides housing and secured small ticket business loans, followed with its $76 million funding. Microlending platform Aye Finance, craft beer maker Bira 91, and fintech firm Slice also made it to the top five with $30 million, $25 million, and $20 million fundraises, respectively. D2C men’s apparel brand WROGN, small financing company Shivalik Small Finance Bank, Dvara KGFS, Aviom Housing Finance, and Jupiter’s NBFC arm Amica Finance are next on the list. [Early-stage deals] Moreover, 22 early-stage startups secured funding worth $49.3 million during the week. AI sales operating system OrbitShift spearheaded the list followed by healthtech platform Alyve Health, agriculture machinery company Balwaan Krishi, D2C fashion brand focused on custom-made The Pant Project, and SME-focused digital lending platform Supermoney. The list of early-stage startups also includes eight startups that kept the funding amount undisclosed: TaxGenie (Regime Tax Solution), Landeed, Praan, ThriveCo, Fanisko, Nirwana.ai, Lazy Cocktails & Co, and LEO1. For more information, visit TheKredible. [City and segment-wise deals] In terms of the city-wise number of funding deals, Bengaluru-based startups led with 13 deals followed by Mumbai, Delhi-NCR, Chennai, Ahmedabad, Hyderabad, and Jaipur. Segment-wise, fintech startups grabbed the top spot with 12 deals. E-commerce, AI, SaaS, Food & beverages, and Healthtech startups followed this list among others. [Series-wise deals] During the week, Seed funding deals led the list with 17 deals followed by 7 Series A and 5 pre-Series A deals. Debt funding also saw 4 deals followed by Series F, Series B, pre-Seed, Series E, and Series G. [Week-on-week funding trend] On a weekly basis, startup funding surged 170% to $906.7 million as compared to around $336.45 million raised during the previous week. The average funding in the last eight weeks stands at around $421 million with 29 deals per week. [Fund launches] This week saw three significant fund launches. VentureSoul Partners launched their debut fund of Rs 600 crore to invest in established startups through venture debt. Gujarat Venture Finance Limited announced the first close of their Rs 200 crore “Prarambh Fund” targeting seed-stage tech startups with investments between Rs 1 crore and Rs 3 crore. 8X Ventures achieved a first close of Rs 60 crore for their second VC fund, aiming to invest in 18-20 early-stage deeptech startups, with a potential final corpus of Rs 300 crore. [Key hirings and departures] Here’s a summary of the key hirings and departures: Flipkart: Cleartrip, Flipkart’s travel booking unit, has appointed Anuj Rathi as its new Chief Business and Growth Officer. Vidyakul: Edtech startup Vidyakul has promoted Akhil Hari Angira to Co-founder and Chief Business Officer. He will oversee strategic partnerships, business growth, and expansion into underserved areas. Paytm: Paytm roped in Rajeev Krishnamuralilal Agarwal as a new non-executive independent director, while Neeraj Arora stepped down from the same position. Agarwal brings experience from companies like U GRO Capital and Star Health, while Arora is the founder of Halloapp and previously held positions at Meta and Google. [Layoffs] Silk product B2B marketplace ReshaMandi seems to be in deep trouble. After failing to secure Series B funding, the company has reportedly laid off 80% of its workforce and is significantly scaling down operations. It’s over Rs 300 crore debt leads to legal challenges and potential insolvency. [M&A] Ananta Capital’s beauty and wellness arm, Guardian, has acquired a 55% stake in D2C personal care startup Anveya Living, with plans to increase its stake further. Anveya Living, which owns the brands ThriveCo, Curlvana, and Anveya, will use the investment to launch new products and expand globally. Meanwhile, online travel aggregator Yatra Online has agreed to buy out its partner’s stake in the joint venture Adventure and Nature Network Private Limited (ANN), which operates in adventure tourism. Yatra Online will increase its stake in ANN from 50% to 99%, making ANN a subsidiary of Yatra Online. [Potential deals] The Indian startup scene is buzzing with potential deals. Here’s a glimpse of what’s brewing: AI-powered comic creation platform Dashtoon, with offices in India, is in late-stage talks to raise $10-12 million from a mix of new and existing investors. HealthTech startup HealthPresso is aiming to secure $1 million in pre-Series A funding, capitalizing on strong investor interest in its AI engine and distribution network. B2B SaaS platform Whatfix is on the verge of a $100-150 million funding round led by Warburg Pincus. Edtech giant Unacademy is reportedly in discussions for a historic merger with K12 Techno, the operator behind Orchids International Schools. This potential 50/50 merger could be the first major consolidation in the edtech space, which has faced a funding slowdown in recent years. Notably, Unacademy previously invested in Orchid Schools and both companies share an investor. Logistics firm Ecom Express is also reportedly in advanced talks with existing investors Warburg Pincus, CDC Group, and Partners Group to raise Rs 350-400 crore. The discussions are nearing completion, and this funding round could elevate Ecom Express’s valuation to over $1 billion, potentially making it the latest entrant to India’s unicorn club. Visit TheKredible to see series-wise deals along with amount breakup, complete details of fund launches, and more insights. [New launches] Bellavita co-founder Aakash Anand launches new venture, Unikon.ai Pocket FM partners with ElevenLabs to convert scripts into audio [Financial results this week] Awfis nears Rs 900 Cr income in FY24; losses contract 62% [News flash this week] Ola Electric gets SEBI nod for $660 Mn IPO Financial Intelligence Unit imposes Rs 18.82 Cr penalty on Binance VC firms General Catalyst and Venture Highway merge to focus on India CCI approves WeWork Inc exit from Indian co-working space Ixigo’s market cap spikes nearly 80% from the pre-IPO round Zomato, Paytm confirm acquisition talks for movie, ticketing business Flipkart-backed Blackbuck converts into a public company Peak XV tops the chart of Hurun India Future Unicorn Index 2024 Delhivery, Xpressbees looking to enter quick commerce space: Report OYO gets approval from shareholders to raise Rs 417 Cr: Report [Conclusion] The weekly funding surged around 170% to $906 million this week, majorly followed by the mega funding deal of Zepto worth $665 million. A bunch of financing companies also contributed significantly. The week saw three startup-focused fund launches by VCs namely VentureSoul Partners, GVFL, and 8X Ventures. Additionally, the week saw a layoff as Reshamandi laid off around 80% of its employees. Six months after filing a draft red herring prospectus (DRHP), Ola Electric has received approval for its initial public offering (IPO) from the Securities and Exchange Board of India (SEBI). The company, which filed the DRHP in December 2023, aims to raise Rs 5,500 crore ($660 million) through the public listing. Ixigo made a remarkable debut on the National Stock Exchange (NSE) on Tuesday, opening at a 48.5% premium above its issue price. Initially priced at Rs 93, Ixigo’s shares listed at Rs 138.5 on the NSE, while on the Bombay Stock Exchange (BSE), the shares opened at Rs 135, according to data from both exchanges. Later, the price touched Rs 194.38. Zomato and Paytm are in talks for Zomato to acquire Paytm’s movies and ticketing business. This deal is estimated to be around Rs 1,600-1,750 crore ($190-210 million). While no final decision has been made yet, Zomato says this potential acquisition aligns with their plan to focus on their core businesses and expand their “going-out” offerings. OYO got the green light from shareholders to raise Rs 416.85 crore by issuing preference shares. The funds will come from InCred Wealth by purchasing 14.37 crore Series G preference shares at Rs 29 each. Additionally, in a move to capitalize on the booming quick commerce market, logistics players Delhivery and Xpressbees are expanding their services beyond traditional e-commerce deliveries. Delhivery is now managing larger warehouses for Swiggy Instamart, which fulfills orders for quick commerce deliveries through a network of smaller, localized stores. Xpressbees is also exploring entry into this space, reportedly in talks with several players. This shift in focus highlights the growing importance of quick commerce deliveries and the potential logistics companies see in this rapidly developing market.

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Funding and acquisitions in Indian startup this week [24 - 29 Jun]

EntrackrEntrackr · 1y ago
Funding and acquisitions in Indian startup this week [24 - 29 Jun]
Medial

This week, 25 Indian startups raised around $211 million in funding. These deals count 9 growth-stage deals and 15 early-stage deals. Moreover, one growth-stage startup kept its transaction details undisclosed. In the previous week, over 40 early and growth-stage startups cumulatively raised more than $900 million in funds. [Growth-stage deals] Among the growth-stage deals, 9 startups raised $150.84 million in funding this week. Edtech company upGrad topped with its $35 million debt funding. SaaS startup Rocketlane, co-working space solutions provider Smartworks, D2C apparel brand Rare Rabbit, and online gold loan platform Rupeek followed with $24 million, $20.24 million, $18 million, and $15 million funding. Healthcare startup Doceree, D2C jewellery brand Bluestone, EV startup Matter, and consulting firm NovaVente also raised capital while IT services provider Celebal Technologies raised an undisclosed sum from BlackSoil [Early-stage deals] Moreover, 15 early-stage startups secured funding worth $60.13 million during the week. B2B platform for apparel sourcing and manufacturing platform Zyod spearheaded the list followed by AI health startup Cloudphysician, D2C dairy brand Sid’s Farm, agriculture tech firm Two Brothers Organic Farms, and fabless semiconductor startup Morphing Machines. Credit card bill payment management platform CheQ, revenue-as-a-service platform for e-commerce and D2C brands Nitro Commerce, and hazardous waste management platform Neo San also raised funding among others. For more information, visit TheKredible. [City and segment-wise deals] In terms of the city-wise number of funding deals, Bengaluru-based startups led with 10 deals followed by Delhi-NCR, Jaipur, Mumbai, and Ahmedabad among others. Segment-wise, fintech startups grabbed the top spot with 4 deals. E-commerce, Manufacturing, Agritech, and Healthtech startups followed this list. [Series-wise deals] During the week, Seed funding deals led the list with 7 deals followed by 6 Series A and 4 pre-Series A deals. Debt and Series B funding also saw 3 deals each followed by Series F and Series D. [Week-on-week funding trend] On a weekly basis, startup funding slipped 76.73% to $211 million as compared to around $906 million raised during the previous week. The average funding in the last eight weeks stands at around $404 million with 28 deals per week. [Fund launches] BizDateUp, a startup supporter organization, is allocating ₹40 crore to fund women entrepreneurs in India. This initiative aims to promote diversity and economic growth. Starting July 1st, women entrepreneurs can apply through BizDateUp’s website. The program offers funding based on a business plan, financial projections, and impact potential. In addition to funding, BizDateUp will connect beneficiaries with mentors and industry experts. [Key hirings and departures] Here’s a summary of the key hirings and departures: Equirus has announced Krishna Jha as a venture partner for their InnovateX Fund, adding his 25 years of experience to bolster their commitment to innovation and strategic growth. Meanwhile, Bengaluru-based early-stage VC firm Mela Ventures has appointed R Kalyan Sundar as the Head of Finance and Legal. Greg Moran, co-founder of Zoomcar, has been terminated as CEO after 12 years. Following his termination on June 20, 2024, he is required to resign from the board as per his employment agreement. Additionally, General Atlantic’s Sandeep Naik will transition to an advisory role by the end of the year. Responsibilities will be divided between Shantanu Rastogi in India, who became managing partner in 2017 and has shared the India head title with Naik, and Neal Kok in Southeast Asia. [M&A] London-based private equity firm Finnest has acquired a majority stake of 53.75% in Bengaluru-based cloud kitchen startup, Kitchens@, making it a subsidiary of Finnest Holdings. Additionally, Nazara-backed Nodwin Gaming announced that its Singapore-based subsidiary will increase its stake in Berlin-based Freaks 4U to 100% through a share swap deal. Nodwin’s Singapore unit, currently holding 13.51%, will initially raise its stake to 57%, with the remaining 43% to be swapped later. The total deal is valued at Rs 271 crore ($32.6 million). [Potential deals] Logistics firm Ecom Express is set to raise Rs 1,424 crore (approximately $172 million) from existing investors via a rights issue, marking its first round of investment this year. Meanwhile, quick commerce unicorn Zepto is reportedly in talks to secure an additional $400 million at a $4.6 billion valuation, just a week after raising $665 million. Visit TheKredible to see series-wise deals along with amount breakup, complete details of fund launches, and more insights. [New launches] Flipkart Group launches UPI app super.money to offer financial services CoinDCX introduces Web3 mode to allow users purchase crypto in INR Acko enters car repair and service space; launches Acko Drive Service Centre Park+ pilots on-demand driver hiring services Zomato launches restaurant services hub to simplify operations [News flash this week] IPO-bound Ather converts itself into a public entity Kota-based institutes see admissions drop by 31% in 2024 Prosus 2024 report card: Byju’s write-off, Swiggy and PayU growth Prosus writes off $500 Mn investment in Byju’s Zomato holds 56-57% food delivery market: Goldman Sachs DGGI asks online gaming companies to disclose cashback offered Avanse Financial joins IPO rush, files DRHP [Conclusion] After a sudden spike in the weekly funding last week, the startups saw a nearly 77% drop in funding to $211 million this week. Only fund startup-focused fund launched this week namely BizDateUp. A recent Goldman Sachs analysis indicates a shift in the Indian food delivery market, with Zomato emerging as the new leader. Zomato’s market share has grown to 56-57%, surpassing Swiggy, whose growth is slowing. Zomato’s food delivery business grew faster than Swiggy’s in 2023, and Goldman Sachs projects a strong future for Zomato with a 31% CAGR and higher profit margins. Zomato has also launched a “restaurant services hub” to streamline restaurant operations. Meanwhile, Flipkart has entered the Indian fintech market with its new app “super.money,” offering real cashback and faster UPI payments. The app plans to introduce credit cards, loans, and fixed deposits. Flipkart and PhonePe are also on the path to profitability, as per reports. Indian tax authorities are investigating online gaming companies for offering cashback to users, possibly to avoid GST. Companies like Delta Corp are under scrutiny for their cashback promotions from October 2023 to June 2024. Additionally, education lender Avanse Financial has filed for a Rs 3,500 crore IPO, with plans to use the funds for business expansion. Avanse reported a net profit of Rs 342.4 crore in FY24.

Funding and acquisitions in Indian startup this week [03-08 Jun]

EntrackrEntrackr · 1y ago
Funding and acquisitions in Indian startup this week [03-08 Jun]
Medial

As many as 17 Indian startups raised around $402.34 million in funding this week. These deals count 4 growth-stage deals and 11 early-stage deals. Moreover, two early-stage startups kept their transaction details undisclosed. In the previous week, about 39 early and growth-stage startups cumulatively raised close to $387.23 million capital. [Growth-stage deals] Among the growth-stage deals, 4 startups raised $317 million in funding this week. Eyewear retailer Lenskart led the list with its $200 million secondary funding followed by a digital lending startup Fibe with $90 million, electric two-wheeler manufacturer Ather Energy with $15 million, and Small and medium enterprises-focused digital lending platform LendingKart with its $12 million debt funding. [Early-stage deals] Subsequently, 11 early-stage startups secured funding worth $85.34 million during the week. Spun off from Polygon, blockchain startup Avail spearheaded the list followed by online astrology platform AstroTalk, AI-based low-code test automation platform Testsigma, fintech platform iPiD, and robotics startup Botsync. The list of early-stage startups also includes two startups that kept the funding amount undisclosed: IoT-driven green robotics solution provider Aegeus Tech and D2C nutrition brand Greenday (Better Nutrition). For more information, visit TheKredible. [City and segment-wise deals] In terms of the city-wise number of funding deals, Bengaluru-based startups led with 7 deals followed by Delhi-NCR, Lucknow, Pune, Ahmedabad, and Chennai. Segment-wise, e-commerce and fintech startups grabbed the top spot with three deals each. Robotics, SaaS, Blockchain, ClimateTech, and EV startups followed this list among others. [Series-wise deals] During the week, Series A funding deals led the list with 5 deals followed by 4 Seed and 3 pre-Series A deals. Further, the list includes Debt, Secondary, Series E, and Series F funding deals. [Week-on-week funding trend] On a weekly basis, startup funding barely increased 3.9% to $402.34 million as compared to around $387.23 million raised during the previous week. The average funding in the last eight weeks stands at around $326 million with 28 deals per week. [Key hirings] Among key hirings, Hardeep Singh has been appointed as CFO by Stride Ventures, Good Glamm Group appointed Lauren Bloomer as International OPS, while Abhaya Hota has been appointed as the Independent Director by Cashfree Payments. [Layoffs] Simpl, a Bengaluru-based fintech startup, has undergone its second round of layoffs in less than a month, cutting around 30 employees. This move follows a previous layoff of around 100 employees. Ashish Kulshrestha, head of communications at Simpl, explained that these layoffs are part of the company’s efforts to achieve profitability by mid-2025 and to enhance operational efficiency. The affected employees will receive a severance package including a pro-rated fixed salary up to the effective date and a two-month notice period salary as per the employment agreement. [M&A] Last week, Entrackr reported that Times Internet-owned MX Player is nearing an acquisition by Amazon. Amazon has now confirmed the acquisition of certain assets from MX Player, although the transaction isn’t yet complete. An Amazon spokesperson mentioned their continuous efforts to enhance customer experiences with local content available on Prime Video and miniTV in India. Additionally, Absolute Sports, the parent company of Sportskeeda.com and ProFootballNetwork.com and a subsidiary of Nazara Technologies is set to acquire all assets of SoapCentral.com, a leading entertainment content source in the US. The all-cash deal is valued at $1.4 million (approximately Rs 11.6 crore) and is expected to close within the next 30 days. [ESOP buyback] Leverage.biz, the company behind the study abroad platform Leverage Edu, Fly.Finance, and Fly Homes, has completed its second ESOP buyback exercise. This initiative benefited over 50 employees across various functions, although the exact amount of the stock buyback was not disclosed. Leverage Edu previously concluded its first ESOP buyback in June 2022. [Potential deals] Scimplify, a platform for sourcing and manufacturing specialty chemicals, is raising a new $5 million round led by Omnivore with participation from existing investors, just six months after its previous round. Meragi, an online platform for wedding-related services and products, is set to raise $8 million in a new round led by Accel, with existing investors Surge and Venture Highway also participating. The deal is in the final stages. Statiq, an electric vehicle charging network operator, is in discussions to raise $50 million in its Series B round, with existing investors Shell Ventures and Y Combinator, along with new investors. InsuranceDekho, the insurance arm of CarDekho, is in the final stages of acquiring a majority stake in wealth tech startup BankSathi through a share swap deal, allowing BankSathi shareholders to receive a stake in InsuranceDekho. Visit TheKredible to see series-wise deals along with amount breakup, complete details of fund launches, and more insights. [Financial results this week] After 4X growth in FY23, Ather Energy’s revenue declines in FY24 After Rs 215 Cr profit in FY22, Molbio reports Rs 3 Cr loss in FY23 [News flash this week] UPI in May: PhonePe maintains domination, Paytm sees marginal growth Amazon says it has purchased some assets of MX Player, not entire company No hurry to sell, indefinite horizon on Zomato: Sanjeev Bikhchandani Trading app Investmint halts services; explores M&A deal Baron Capital marks up Swiggy’s valuation to $15.1 Bn [Conclusion] The weekly funding increased 3.9% to $402 million, driven mainly by Lenskart’s $200 million secondary funding. Additionally, the week saw a layoff as fintech startup Simpl has undergone its second round of layoffs in less than a month, cutting around 30 employees. PhonePe maintained its lead in the Unified Payments Interface (UPI) ecosystem with a market share exceeding 48% in May 2024, processing 6.8 billion of the 14 billion UPI transactions recorded by the National Payments Corporation of India (NPCI). Google Pay and Paytm processed 5.2 billion and 1.14 billion transactions, respectively. Info Edge, renowned for its recruitment portal Naukri, has seen significant success with its investments in Zomato and Policybazaar, with Zomato’s market cap increasing 2.3 times since its IPO. Under the leadership of founder and chairman Sanjeev Bikhchandani, the company remains patient with its profitable investments while nurturing its brands. Read here for more. Investmint, a signal-based trading app, has ceased operations due to challenges in establishing a reliable business model despite having decent traction and funds. The company is now exploring acquisition opportunities with wealth management firms. Baron Capital has increased Swiggy’s valuation to $15.1 billion, a 25% rise from the previous $12.1 billion valuation in December 2023. Following Baron’s lead, Invesco also raised Swiggy’s valuation to $12.7 billion in April.

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