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

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.