Funding and acquisitions in Indian startup this week [08 - 13 July]

This week, as many as 22 Indian startups raised around $116.26 million in funding. These deals count 4 growth-stage deals and 16 early-stage deals while 2 early-stage startups kept the transaction details undisclosed.

During the previous week, 24 early and growth-stage startups cumulatively raised more than $270 million in funding.

[Growth-stage deals]

Among the growth-stage deals, 4 startups raised $80 million in funding this week. Wealthtech platform Dezerv spearheaded with its $32 million Series B round. E-commerce roll-up brand Goat Brand Labs, B2B e-commerce firm Infra.Market, and higher education services platform CollegeDekho followed with $21 million, $18 million, and $9 million in funding, respectively.

[Early-stage deals]

Moreover, 16 early-stage startups secured funding worth $36.26 million during the week. Biotech brand Immuneel Therapeutics led the list followed by semiconductor startup iVP Semi, Marathi OTT platform Planet Marathi OTT, consumer electronics manufacturer Circuit House Technologies, and healthcare-focused fintech startup Care.fi.

QSR chain House of Briyan, online real-estate broker Jugyah, and electronics renewal and refurbishment startup QarmaTek 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 seven deals followed by Mumbai, Delhi-NCR, Ahmedabad, Thane, Chennai, and Ankleshwar among others.

Segment-wise, e-commerce startups grabbed the top spot with three deals. Fintech, SaaS, AI, and Automotive tech startups followed this list among others.

[Series-wise deals]

During the week, Seed funding deals led the list with 10 deals followed by 3 debt and 3 Series A deals. Pre-Seed, pre-Series A, and Series B are next on the list.

[Week-on-week funding trend]

On a weekly basis, startup funding declined 57% to $116.26 million as compared to around $270.3 million raised during the previous week.

The average funding in the last eight weeks stands at around $381.54 million with 28 deals per week.

[Fund launches]

Anicut Capital announced the close of its maiden late-stage Equity Continuum fund at Rs 300 crore, aimed at supporting high-potential companies preparing for IPOs within the next 2-4 years. Former Premji Invest partner Atul Gupta, along with Rajesh Ramaiah and Pravan Malhotra, launched Trident Growth Partners (India) to invest in startups across various sectors such as consumer, financial services, enterprise software, technology, industrial, manufacturing, and healthcare.

Additionally, former defense secretary Ajay Kumar introduced the MountTech Growth Fund, a Rs 250 crore fund targeting early-stage startups in the defense, aerospace, and deeptech sectors, which has secured SEBI approval and Rs 280 crore in subscriptions. Lastly, NABARD (NABVENTURES) launched the 'Agri-SURE' fund with an initial corpus of Rs 750 crore to support agritech startups, with contributions from NABARD, the Ministry of Agriculture, and other institutions.

[Key hirings and departures]

Zepto elevated Devendra Meel to Chief Business Officer, effective July 2024, to lead category management and brand partnerships. Petzzco appointed former cricketer Ravi Shastri as principal advisor and brand ambassador. Grip announced its expansion into fund management and portfolio management distribution services, with Founder Nikhil Agarwal transitioning to Group CEO to co-lead the EV management platform, Electrifi Mobility. Adrenalin eSystems appointed Sanjay Kamath as Senior Vice President and Business Head.

In terms of departures, Medikabazaar’s cofounder Vivek Tiwari stepped down as CEO and took a board role, with the company undergoing a management restructuring and audit by PwC. Zoomcar’s global president Adarsh Menon resigned, following the termination of cofounder Greg Moran from the CEO position.

[M&A]

Google-backed edtech company Adda247 acquired the CA test preparation platform Ekagrata Eduserv. Fintech startup CASHe entered the insurance broking sector by acquiring Centcart Insurance Broking Services. Melooha acquired Bengaluru-based Munitalks to enhance its AI astrological offerings. Edtech platform Schoolnet acquired K-12 focused quiz-based learning app Genius Teacher in an all-stock deal. IT major Accenture acquired Bengaluru-based chip design startup Excelmax Technologies. Construction giant L&T is also acquiring a semiconductor design startup SiliConch Systems in exchange for Rs 183 crore.

[Potential deals]

Farm-to-fork firm Otipy is set to raise fresh capital in an extended series B round from new and existing investors. Generative AI startup Simplismart is preparing to raise a new round led by Accel. Despite the 'funding winter' in edtech, PhysicsWallah (PW) is close to securing a new large round. Goldman Sachs is reportedly looking to invest $30-50 Mn in Bengaluru-based SaaS provider MoEngage via a secondary deal.

Visit TheKredible to see series-wise deals along with amount breakup, complete details of fund launches, and more insights.

[New launches]

▪️ Vidyut launches offline platform for pre-owned commercial EV sales and financing

▪️ Wow Skin Science forays into the cosmetic category with the launch of ‘Color Cupid’

[Financial results this week]

▪️ Exotel crosses 400 Cr revenue in FY23; losses jump 2.5X

▪️ Tata 1mg’s revenue nears Rs 2,000 Cr in FY24; losses down by 75%

▪️ OfBusiness revenue nears Rs 20,000 Cr in FY24; profits crosses Rs 600 Cr

[News flash this week]

▪️ Blackbuck files DRHP; Accel to divest 24.2% of OFS

▪️ Paytm received a nod from Govt. to invest Rs 50 Cr in Payment Services

▪️ Menhood to raise Rs 19.5 Cr via IPO on NSE Emerge

▪️ Invesco marks down valuations of IPO-bound Swiggy and Pine Labs

[Conclusion]

The weekly funding shrank nearly 57% to $116.26 million. This week saw four startup-focused fund launches by VC firms: Anicut Capital, Trident Growth Partners, MountTech Growth Fund, and NABVENTURES (Agri-SURE).

Jaipur-based D2C men’s grooming brand Menhood is set to go public with an IPO on NSE Emerge, opening on July 16 and closing on July 19. The company, under its parent entity Macobs Technologies Limited, will issue 25,95,200 equity shares with a face value of Rs 10 each, priced between Rs 71-75 per share. At the upper end, Menhood aims to raise Rs 19.5 Cr. The IPO proceeds will fund the expansion of product offerings and enhance operational capabilities.

In another significant development, Paytm has received approval from a government panel for its Rs 50 Cr investment in Paytm Payment Services. This clearance brings Paytm closer to obtaining the final approval from Finance Minister Nirmala Sitharaman. Once approved, Paytm will apply for an online payment aggregator license from the Reserve Bank of India. The panel, which includes representatives from the ministries of home, finance, and industries, as well as inputs from the foreign ministry, is responsible for reviewing investment proposals from neighboring countries.

Meanwhile, US-based fund manager Invesco marked down the valuations of its portfolio startups, Swiggy and Pine Labs, at the end of April 2024. According to its half-yearly shareholder report filed with the SEC, Invesco valued its 1.77% stake in Swiggy at $219.2 million, translating to a $12.3 billion valuation for the foodtech company. This is a 3% decline from the previous $12.7 billion valuation but still 15% higher than the $10.7 billion valuation during Swiggy's $700 million funding round in 2022. Meanwhile, Pine Labs was valued at $3.5 billion, down 8.5% from January 2024 and over 27% from December 2023.

Online trucking platform Blackbuck has also filed its draft red herring prospectus (DRHP) with SEBI for an initial public offering (IPO). The firm aims to raise Rs 550 crore through a fresh issue of equity shares and an offer for sale (OFS) of up to 2,16,09,022 equity shares. Accel plans to divest 24.2% of the total OFS, equating to 52,32,632 shares, while Quickroutes International, International Finance Corporation, and Tiger Global will offload 3,973,898, 3,973,898, and 1,711,962 shares, respectively. The fresh issue and OFS will have a face value of Re 1, with the price band and minimum lot size to be determined in consultation with the book-running lead managers.