Funding and acquisitions in Indian startup this week [18 - 23 Nov]

During the week, 23 Indian startups raised around $595.86 million in funding. These deals include 6 growth-stage deals and 15 early-stage deals while 2 startups kept their transaction details undisclosed.

Last week, 24 early and growth-stage startups cumulatively raised around $182.62 million in funding.

[Growth-stage deals]

Among the growth-stage deals, 6 startups raised $541.7 million in funding this week. Quicke commerce platform Zepto is on top with $350 million in funding. Omnichannel D2C nutrition platform HealthKart raised $153 million followed by insurtech firm Zopper, e-commerce platform Locad, fintech startup CredFlow, and drone-based geospatial firm Matrix Geo.

[Early-stage deals]

Further, 15 early-stage startups secured funding worth $54.16 million during the week. Semi-urban commerce platform OneCell Diagnostics led the list followed by decentralized gamer network KGeN (Kratos Gaming Network), same-day delivery platform Blitz, digital consumer products brand Billion Hearts, and beer startup Proost.

Meanwhile, Vee Healthtek and Assure Clinics also raked in funding but did not disclose the transaction details. 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, Mumbai, Chennai, Pune, and Hyderabad.

Segment-wise, E-commerce and Healthtech startups are on the top spot with 4 deals each. Fintech, Foodtech, Logistics, and SaaS startups followed the list among others.

[Series-wise deals]

During the week, Seed funding deals are at the top with 11 deals followed by Series A, pre-Series B, pre-Series A, Series F, Series I, Series D, and pre-IPO deals.

[Week-on-week funding trend]

On a weekly basis, startup funding surged 226% to $595.86 million as compared to around $182 million raised during the previous week.

The average funding in the last eight weeks stands at around $266.77 million with 25 deals per week.

[Fund launches]

As many as three startup-focused funds launched this week namely OG Capital and IIT Bombay’s Incubator Fund with a corpus of $36 million and $11.9 million while 8i Ventures did not disclose the fund size.

[Key hirings and departures]

The startup ecosystem witnessed 11 notable hires this week. WeWork elevated Jitendra Mohandas Virwani, Karan Virwani, Mahua Acharya, Anupa Rajiv Sahney, and Manoj Kumar Kohli and also hired Adnan Ahmad under its board. At the same time, Flipkart welcomed Dan Bartlett to the board of directors.

Additionally, after Flipkart, Binny Bansal resigned from the board of PhonePe.

[Mergers and Acquisitions]

MakeMyTrip announced its plans to acquire Happay from CRED while The Good Glamm Group completed the acquisition of The Moms Co. Other notable acquisitions include Arzooo by Moksha Group, Khatema Fibres by Moglix, and OneSource Speciality Pharma by 360 ONE Asset.

[ESOP buyback]

HealthKart announced its first-ever employee ESOP buyback plan worth Rs 55 crore ($6.5 million). NowPurchase, a SaaS-enabled marketplace for metal manufacturers also completed its first-ever ESOP buyback. 

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

[New launches]

▪️ Swiggy launches kitchen equipment procurement service for restaurants

▪️ Myntra pilots 2-hour delivery service

▪️ Dating app Flutrr launches AI chatbot for user convenience

[Potential Deals]

▪️ Country Delight to raise $50-70 Mn led by SoftBank

▪️ Ritesh Agarwal to increase stake in Oyo

▪️ SolarSquare is looking to raise fresh funds at a 3X valuation

[Financial results this week]

▪️ Healthians achieves EBITDA breakeven with Rs 250 Cr income in FY24

▪️ Glance crosses Rs 600 Cr revenue in FY24 with improved economics

▪️ Teachmint revenue grows 2X in FY24, losses down to Rs 82 Cr

▪️ PharmEasy cuts losses by 51% to Rs 2,533 Cr in FY24, revenue dips 15%

▪️ Apple India posts $8 Bn revenue and $330 Mn profit in FY24

▪️ Dezerv reports Rs 26 Cr revenue and Rs 75 Cr loss in FY24

▪️ FNP crosses Rs 700 Cr revenue in FY24; losses drop by 78%

▪️ Paper Boat posts Rs 585 Cr revenue in FY24; cuts losses by 48%

▪️ Biryani By Kilo reports Rs 268 Cr revenue in FY24, cuts losses by 30%

▪️ Third Wave Coffee revenue crosses Rs 240 Cr in FY24, losses up 2X

▪️ The Sleep Company revenue soars 2.5X to Rs 312 Cr in FY24

▪️ Park+ reports Rs 131 Cr revenue in FY24 with stable losses

▪️ INDmoney revenue spikes 73% in FY24, earns Rs 58 Cr from other income

[News flash this week]

▪️ Zomato extends lead over Swiggy in food delivery

▪️ PhonePe, G-Pay lead UPI market share; Navi surpasses CRED to enter top 4

▪️ boAt and Noise’s growth decline in Q3 amid market slowdown: IDC report

▪️ SEBI approves ArisInfra’s Rs 580 Cr IPO

▪️ BlackBuck’s share lists with a 2.9% premium

▪️ RBI eases forex rules for startups

▪️ Ola Electric cuts 500 jobs to improve profitability

▪️ Groww's valuation takes a hit after India shift: Report

▪️ Karnataka and DRDO join hands to support defence startups

▪️ MamaEarth’s Honasa faces distributor backlash over unsold inventory

▪️ Zomato becomes the first new-age stock to feature in the BSE Sensex index

[Conclusion]

On a weekly basis, startup funding surged 226% to $595.86 million as compared to around $182 million raised during the previous week. The week saw three startup-focused fund launches namely OG Capital, IIT Bombay’s Incubator Fund, and 8i Ventures.

Zomato has solidified its position as the leading food delivery platform in India, capturing a 58% market share in the June quarter of FY25. This marks a significant increase from its previous market share of 54%. Swiggy, on the other hand, saw its market share decline to 42%. While the quick commerce segment continues to be competitive, with players like Blinkit, Zepto, and Swiggy Instamart vying for market share, food delivery remains a key revenue driver for Zomato and Swiggy.

ArisInfra has received approval from the Securities and Exchange Board of India (SEBI) for its initial public offering (IPO) worth Rs 580 crore. The company had earlier planned to raise Rs 600 crore but has now reduced the size of the fresh issue. ArisInfra is also considering a pre-IPO placement of up to Rs 115.92 crore before filing its draft red herring prospectus (DRHP).

BlackBuck's parent company, Zinka Logistics Solutions, saw its shares list at a 2.9% premium over its IPO price of INR 273. The stock debuted at INR 280.90 on the National Stock Exchange. The company's IPO was oversubscribed 1.8 times on the final day of bidding.

Electric vehicle maker Ola Electric has initiated a restructuring process that will result in the layoff of around 500 employees. The company aims to streamline its operations and reduce costs to achieve profitability. This move comes amid concerns over its financial performance and after-sales service issues.

The Karnataka government has partnered with the Defence Research and Development Organisation (DRDO) to support defence startups. This collaboration will provide startups with access to DRDO's testing facilities and mentorship. The partnership aims to foster innovation and growth in the defence sector, leveraging the expertise of both organizations.