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

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.