Funding and acquisitions in Indian startup this week [Sep 15- Sep 20]

During the week, 21 Indian startups raised a total of $361.5 million, including 6 growth-stage and 13 early-stage deals, while 2 startups kept their funding undisclosed.

In comparison, the previous week saw 26 startups across early and growth stages secure around $329  million.

[Growth-stage deals]

Growth and late-stage funding this week reached $320 million, led by healthtech firm Pharmeasy’s Rs 1,700 crore ($193 million) debt round from 360 One. It was followed by credit infrastructure fintech platform Finbox and InCred Money, the retail investment arm of InCred Group, raising Rs 250 crore ($30 million). Sustainable home essentials brand Ecosoul and consumer electronics startup Indkal Technologies secured $20 million each, while foodtech unicorn Rebel Foods raised $17 million in debt from Alteria Capital and InnoVen Capital. 

[Early-stage deals]

On the early-stage front, 13 startups raised a total of $41.55 million this week. SaaS startup Scalekit and lab-grown diamond jewellery brand Lucira led the pack with $5.5 million each, followed by fintech startup Pelocal and deeptech venture SpaceFields, which raised $5 million apiece. Other funded startups included IT product enterprise BeyondSquare, consumer electronics maker iDO Devices, and fintech-focused AI SaaS venture Pascal AI Labs, among others. 

Electric motorcycle maker Raptee and deeptech education AI startup CrazyGoldFish also received grants this week, though the amounts were not disclosed.

For a detailed funding breakdown, visit TheKredible.

[City and segment-wise deals]

By city-wise deal count, Bengaluru-based startups led with 11, followed by Mumbai with 5, though Mumbai topped in terms of total funding raised. Delhi-NCR, Kamrej, and Chennai also saw activity with deals closed this week.

Segment-wise, fintech and e-commerce startups are at the top spot with 4 deals each. Consumer Electronics, deeptech, healthtech, foodtech and other startups also bagged deals this week.

[Series-wise deals]

During the week, seed funding dominated with 8 deals, followed by Series B. Series A, debt, and other stages also saw activity.

Visit TheKredible to see series-wise deals along with amount breakup, and more insights.

[Week-on-week funding trend]

On a weekly basis, startup funding increased by 10% to $361.55 million as compared to around $329 million raised during the previous week.

The average funding in the last eight weeks stands at around $265.8 million with 24 deals per week.

[Key Hirings & Departures]

Only three key hirings were announced this week. Data and AI company Databricks appointed Kamalkanth Tummala as Country Manager for India, while Polygon Labs named former Stripe Head of Crypto John Egan as its first Chief Product Officer. Meanwhile, Blyp (formerly ParkMate) brought on Rannvijay Singha to strengthen brand presence and engage with the youth.

VisitTheKrediblefor more details

[Mergers and Acquisitions]

PayU, the payments and fintech arm of Prosus, has increased its stake in Mindgate Solutions to 70%, becoming the majority shareholder. Founders George Sam and Guhan Muthuswamy will retain the remaining 30% and continue to lead the company’s operations.

[Fund Launches]

Private equity firm Singularity AMC has closed its second fund, Singularity Growth Opportunities Fund II, at Rs 2,000 crore ($235 million) to invest in growth-stage and pre-IPO startups. The International Finance Corporation (IFC), the private sector arm of the World Bank Group, will invest up to $25 million in Trifecta Capital’s fourth venture debt fund.

[Layoffs]

Gameskraft, one of India’s largest real-money gaming firms, has laid off around 120 employees across teams as part of a restructuring move following the government’s blanket ban on online money games.

[Shutdown]

MyPickup, a subscription-based electric mobility startup backed by Inflection Point Ventures (IPV), has shut down after three years of operations. The company attributed its closure to challenges in achieving product-market fit (PMF) and limited access to patient capital.

[New Launches and Partnerships]

▪️ CRED launches RuPay credit card with IndusInd Bank

▪️ Hoi has partnered with EaseMyTrip to launch a rewards programme across airports

▪️CARS24 joins hands with ElevenLabs and Google Cloud to bring voice AI to the used car market

▪️ PRISM rolls out CheckIn, uniting OYO’s hospitality brands under premium value collection

[Financial result this week]

▪️ SilverPush growth stalls in FY25; slips into red with Rs 18 Cr loss

▪️ Walmart India trims losses to Rs 110 Cr in FY25 amid muted revenue growth

▪️ Edtech unicorn LEAD cuts losses by 70%; revenue remains flat

▪️ Jar clocks Rs 208 Cr operating revenue in FY25, turns profitable in H2

[News flash this week]

▪️ CRED, PhonePe, Paytm stop rent payments via credit cards

▪️ Urban Company lists at 58% premium in stock market debut

▪️Gameskraft's former CFO siphoned Rs 250 Cr for F&O trading

[Summary]

On a weekly basis, startup funding increased by 10% to $361.55 million as compared to around $329 million raised during the previous week.

CRED, PhonePe, and Paytm have stopped allowing rent payments through credit cards on their platforms, following the Reserve Bank of India’s (RBI) latest master directions on payment aggregator regulations.

Home services marketplace Urban Company made a strong stock market debut today, listing at Rs 162.25 per share on the NSE, a 57.5% premium over its issue price of Rs 103. On the BSE, the stock opened at Rs 161.

Bengaluru-based online gaming firm Gameskraft Technologies is facing a major financial scandal after its former CFO, Ramesh Prabhu, allegedly siphoned off Rs 250 crore of company funds to trade personally in the futures and options (F&O) segment.

Fintech unicorn CRED has broadened its financial portfolio by launching a RuPay co-branded credit card in partnership with IndusInd Bank, alongside introducing Sovereign, an exclusive invite-only membership society featuring an 18K gold credential.

PRISM, the parent company of OYO, has introduced CheckIn, a new premium value hotel collection uniting brands such as Townhouse Hotels, Clubhouse, Sunday Hotels, Belvilla, and Palette Hotels. With over 1,300 properties across India, CheckIn positions itself as the country’s largest premium value hotel chain.