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Indian startups raise $900 Mn in February: Report
Entrackr
·
1y ago
Medial
Funding inflow improved in February on the back of a couple of large rounds of growth-stage firms. Some early-stage startups also received decent traction. At the same time, the Indian startup world continued to battle with ongoing challenges like layoffs and departures of key executives. Indian startups mopped up nearly $900 million across 121 deals in February, as per data compiled by TheKredible. This included 25 growth-stage deals worth $585 million and 83 early-stage deals amounting to $313.5 million. There were 13 undisclosed rounds. [Month-on-Month and Year-on-Year trend] February registered a modest jump in funding from $732.7 million in January. Even on a year-on-year basis, February 2024 surpassed the February 2023 funding mark of $845 million. Unlike January, February saw three-digit funding as Shadowfax raised $100 million in a new round. The M-o-M and Y-o-Y trends can be seen below. [Top growth stage deals] Flipkart-backed logistics company Shadowfax topped the charts with $100 million in a Series E funding round led by TPG NewQuest. While the company did not disclose its valuation, it is estimated to have reached closer to entering the unicorn club. SaaS firm Capillary Technologies saw $95 million in funding via a secondary round. Other funding rounds in the growth stage were below $50 million which included EV startup River, e-commerce company Kushal’s, and seafood company Captain Fresh. Rentomojo and Zeno Health also raised $25 million each. [Top early-stage deals] Blockchain startup Avail, spiritual tech startup AstroTalk, and metal supply chain company Metalbook led the chart with $27 million, $20 million, and $15 million in funding, respectively. Notably, the top eight startups in the early stage raised at least $10 million each in their new fundraise. The list counts Keus, OTO, Moove, Vidyut, and Interview Kickstart. [Stage-wise deals] Series-wise, Seed and Series A startup funding deals co-led the list with 33 deals each during February. Pre-Seed and Pre-Series A deals stood at 12 and 10, respectively. Among growth stage deals, Series B, Series C, Series D, and Series F are next on the list while as many as 10 startups raised debt funding during the month. [City-Segment] In terms of city-wise deals, Bengaluru retained the top spot with 45 deals worth around $482.6 million, or close to 54% of the total funding raised during February. Delhi-NCR and Mumbai-based startups were the next with 26 and 25 deals, respectively, collectively amounting to $311 million. Pune saw 9 deals followed by Hyderabad, Chennai, Jaipur, and Ahmedabad among others. E-commerce startups re-captured the top position this month in terms of segment-wise number of deals with 27 deals. This was followed by healthtech (12), fintech (10), and SaaS (10). EV, proptech, AI, edtech, and food tech startups also made it to the top 10. [Most active investors] Early stage venture capital firm Blume Venture and venture debt firm Stride Ventures have emerged as most active investors in February with 5 investments each. Fireside Ventures was next on the list with four deals followed by 9Unicorns, Antler India, IAN, Omidyar, and others. The full list can be found at TheKredible. [Mergers and acquisitions] February witnessed 12 mergers and acquisitions deals. Acquisition of investing platform Kuvera by CRED, LotusPay by Juspay, cybersecurity startup Difenz by Signzy, gaming firm Ninja Global FZCO by Nodwin, and seafood platform CenSea by Captain Fresh were some of the notable deals during the period. In comparison, January saw nine mergers and acquisitions deals. [Layoffs, Shutdowns, and top-level exits] Like January, the layoffs spree continued in February as more than 350 employees were let go of across six startups. Log9 Materials topped this list with 115 employees followed by Licious, Waycool, and Polygon. Meanwhile, Indian startups also saw 10 top-level exits. Flipkart alone saw three departures including senior vice presidents Amitesh Jha, Dheeraj A, and Bharat Ram. Paytm Payments Bank also saw the exits of two independent directors and the surprising exit of Vijay Shekhar Sharma who was the part-time non-executive chairman and board member of the company. The full list can be found here. [Conclusion] It might be early signs, but we would venture to say that the situation is actually improving steadily, as over a year of relatively tough market conditions have ensured a higher focus on resilience in startups. A booming stock market has also meant that amidst all the gloom of a shrinking job market, investible funds do exist for the right idea, and newer segments like Proptech that are riding the real estate boom are set to make a splash with a few big deals sooner than later. As expected, the AI rush is not getting anywhere in a hurry, and the impact will be visible over a much more extended period of time. Climate tech can also be expected to make a serious play for investor funds soon, with new opportunities in carbon markets and more. Global realignments that are underway across manufacturing and soon, services as well, augur well for India in the medium to long term, and we will soon see the first, early bets on these shifts being placed soon. While many will see the upcoming elections as a crimp for the coming quarter, we believe it will be a good time to see just how far investors have moved away from counting on favourable policies, and looking instead at stable and consistent policies to base their thesis on.
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Rapido Eyes $100 Mn Funding From WestBridge Capital, Others
Inc42
·
1y ago
Medial
Indian ride-hailing startup, Rapido, is reportedly planning to raise $100 million in funding from existing investor WestBridge Capital and other sources. The company has already received commitments of around $70 million and is approaching Indian family offices for additional support. This funding could potentially raise Rapido's valuation to $900 million. Rapido operates in the bike taxi, auto-rickshaw, cab, and peer-to-peer delivery service segments, with a fleet size of 5 million bike taxis and 700,000 auto-rickshaws. It reported a standalone loss of INR 674.5 crore ($89.8 million) for FY23, a significant increase from the previous year.
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Once burnt, investors curb enthusiasm for India's startups
Reuters
·
1y ago
Medial
Investors in Indian startups are becoming more cautious and reducing funding in the sector. They have been burned by the sharp declines in valuations of once-promising companies such as Paytm and Byju. This year, Indian startups raised only around $900 million in January and February, indicating another slow year following the six-year low of $8 billion in 2023. Investors are now more interested in stable brick-and-mortar businesses and potential profitability, rather than tech companies. The drop in startup funding has broader economic implications, as startups have been significant contributors to job creation and economic growth in India.
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From BluSmart To Grow Indigo — Indian Startups Raised $48 Mn This Week
Inc42
·
1y ago
Medial
Indian startups faced a 72% drop in funding, securing $48 million across eight deals in the week ending February 3. This decline followed the interim budget week, with funding activity decreasing both in terms of value and volume. EV startup BluSmart led the funding with $25 million from responsAbility Investments AG. Cleantech emerged as the most funded sector, raising $36 million across three deals. Edtech giant BYJU’S initiated rights issues procedures to raise $200 million at a $225 million valuation, while dairy tech startup Stellapps is reportedly in talks with existing investors for a $20 million Series C funding round.
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India Ranks Fourth In The Number Of Startups That Have Raised Over $50 Mn Funding: Report
Inc42
·
1y ago
Medial
India ranks fourth globally in terms of the number of startups that have raised $50 Mn or more in funding, according to Startup Genome's Scaleup Report. Out of the 12,400 such startups worldwide, 429 are from India. India also secured the third position in terms of total funding, with these startups raising a capital of $127 Bn. The report highlights the dominance of biopharma and fintech sectors in scaleups, and a rising trend of serial founders in the Indian startup ecosystem. Despite the funding winter, the increasing number of scaleups showcases the maturity of India's startup ecosystem.
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From Rentmojo To Yulu – Indian Startups Raised $110 Mn This Week
Inc42
·
1y ago
Medial
Investment activity in the Indian startup ecosystem remained slow in the third week of February. Startups collectively raised $110.4 million across 15 deals, a 12% decrease from the previous week. Seed funding also decreased to $4.1 million across five deals. Cleantech and fintech sectors received the highest number of deals, with cleantech securing $35.9 million and fintech obtaining $11.2 million. Some notable funding rounds included EV startups Yulu and Pure EV raising $19.25 million and $8 million respectively. Additionally, online furniture rental startup Rentomojo raised $25 million in its Series D funding round.
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Indian startups seen raising $10-12 billion this year: Peak XV’s Rajan Anandan
Economic Times
·
1y ago
Medial
Indian startups are expected to raise around $10-12 billion in funding this year, which is seen as sufficient to build the country's ecosystem, according to Rajan Anandan, Managing Director of Peak XV Partners. This estimate follows a period of exuberance in 2021 and 2022 during which India received $60 billion in funding. Anandan also noted that around $20 billion of private capital is currently uninvested and committed to the Indian market. The report suggests that in the coming years, there will be at least 100 Indian startups aiming for initial public offerings.
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Insurtech startup Onsurity raises $45 mn in Series B round
VCCircle
·
10m ago
Medial
Indian insurtech startup Onsurity has raised $45 million in a Series B funding round led by private equity firm Creaegis. Existing investors such as International Finance Corporation, Quona Capital and Nexus Venture Partners also participated in the round. The Bengaluru-based company offers employee healthcare benefits to small and medium-sized enterprises, startups and corporations. The funding will be used to launch new digital offerings and product lines, enhance the company's technology capabilities, and develop fully digital greenfield products. Onsurity has onboarded over 8,000 companies across 26 Indian states and three union territories since its founding in February 2020.
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9 Spiritual Tech Startups Transforming India’s Faith Market
Inc42
·
9m ago
Medial
The Indian religious and spiritual market is growing rapidly, with a predicted CAGR of 10% until 2032. The market is currently worth $58.56 billion, and there are over 900 spiritual tech startups in the country. These startups provide services such as e-darshan, e-pooja, and prasad delivery. Interestingly, the majority of these startups' revenue, about 70%, comes from the younger generation aged 25-35 years.
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15 Early Stage Startups Eye $100 Mn Funding From Global Investors At 4th Edition of Demo Day By 9Unicorns
Inc42
·
1y ago
Medial
Mumbai-based accelerator VC 9Unicorns is preparing to host the fourth edition of DDay (Demo Day) on October 5, 2023. The virtual event will give 15 early-stage startups from various sectors the opportunity to present their business models to Indian and international investors. The previous edition of DDay saw 23 startups raise $80 million from global and Indian investors. A focus on deeptech, agritech, and fintech sectors is expected, as consumer trends indicate growth in these areas. The participating startups in this edition have already raised an average of $4 million in prior funding rounds.
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Investors jittery as some Indian startups' fall from grace dwindles faith
VCCircle
·
1y ago
Medial
Investors are becoming cautious and cutting back funding for Indian startups after several high-profile failures. Once eager to invest billions in Indian tech ventures, investors have been burned by falls in valuations such as those seen by digital payments firm Paytm. India's startups raised just $900 million in the first two months of 2023, following a six-year low of $8 billion in 2022. This drop in investment could have broader economic impacts, as startups have generated up to 25% of new jobs and 15% of economic growth in India in recent years.
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