Deal-making has commenced robustly in the New Year, with numerous consumer brands securing funding, indicating a revival in funding activity.
Highlighted deals include:
- Belgian investment firm Sofina is poised to spearhead a funding round for The Whole Truth Foods, valuing the company at Rs 2,000 crore.
- Snabbit, a provider of at-home house help within 15 minutes, is nearing completion of a funding round valued between $10 million and $15 million.
- Nuuk, a home appliances company founded by former Rivigo cofounder Gazal Kalra, is in the process of securing $7 million to $8 million in seed funding.
- Mokobara is aiming to raise between $30 million and $40 million in its new funding round, reaching a valuation of $250 million to $280 million.
- Plush, a brand specialising in sanitary pads and sexual wellness, is on the verge of closing its Series B funding from affluent individuals.
- Accel is currently negotiating an investment in the speciality chemicals startup Scimplify.
The broader perspective is that venture capitalists are equipped with substantial dry powder, which will facilitate increased deal-making in early-stage startups. Investment firms such as Accel, 3One4 Capital, Peak XV Partners, and Lightspeed Venture Partners are actively searching for new investment opportunities across diverse sectors and themes.
Early-stage investment deals are experiencing a resurgence, bouncing back from a stagnant growth pattern in 2023 and 2024, where investments stabilised at $1.7 billion, according to reports.
The outgoing US administration’s proposed regulations to restrict the import of graphics processing units (GPUs) from certain countries could hinder India’s aspirations. GPUs are essential for powering substantial artificial intelligence (AI) models and applications.
Consumer brands are actively participating in deal-making, reinforcing the trend of funding recovery.
Some of these arrangements may also encompass secondary sales, as earlier angel investors and venture capital funds might sell partial stakes.
The industry landscape suggests that venture capital firms are ready to engage in increased deal-making in early-stage startups. Funds such as Accel, 3One4 Capital, Peak XV Partners, and Lightspeed Venture Partners continue to seek fresh investment opportunities across a variety of sectors.
It is evident that early-stage investment deals are on the rise, recovering from a previously steady growth trajectory with consistent investments recorded at $1.7 billion, as per data.
Additionally, reference materials indicate that the startup funding freeze is beginning to thaw in 2024.
The proposed regulation by the outgoing US administration regarding GPU imports may affect India’s tech ambitions, since GPUs are vital in powering advanced AI models and applications.
The Dunzo app and website have gone offline following the departure of cofounder Kabeer Biswas to Flipkart, leaving the hyperlocal delivery platform close to cessation of operations after Biswas’s exit as CEO to lead Flipkart’s quick commerce segment.
A significant investor scion manages a $1.5 trillion fortune and intends to leverage it to gain a competitive edge in AI (Wired).
Amazon is in a race to enhance Alexa’s functionality with generative AI (FT).
General practitioners are increasingly employing AI technologies to assist with their patient workload (BBC).
Other highlights in this report include:
- Financial technology companies and DPDP regulations.
- An interview with the CEO of HCLTech.
- ETtech Done Deals.
The momentum of funding for consumer brands is evident as multiple companies secure new deals, indicating a rebound in investment activity.
Highlighted deals include:
- Belgian investment firm Sofina is poised to spearhead a funding round for The Whole Truth Foods, valuing the company at Rs 2,000 crore.
- Snabbit, a provider of at-home house help within 15 minutes, is nearing completion of a funding round valued between $10 million and $15 million.
- Nuuk, a home appliances company founded by former Rivigo cofounder Gazal Kalra, is in the process of securing $7 million to $8 million in seed funding.
- Mokobara is aiming to raise between $30 million and $40 million in its new funding round, reaching a valuation of $250 million to $280 million.
- Plush, a brand specialising in sanitary pads and sexual wellness, is on the verge of closing its Series B funding from affluent individuals.
- Accel is currently negotiating an investment in the speciality chemicals startup Scimplify.
The broader perspective indicates that venture capital firms are poised for increased deal-making in early-stage startups, with firms like Accel, 3One4 Capital, Peak XV Partners, and Lightspeed Venture Partners actively pursuing new deals across various sectors and themes.
Early-stage investment deals are rebounding, emerging from a previously steady growth trajectory in 2023 and 2024, where investments stabilised at $1.7 billion.
The regulations proposed by the outgoing US administration to restrict GPU imports could significantly impact India’s technological ambitions, given the pivotal role of GPUs in advanced AI models.
Investment deals are making a notable resurgence after a period of stagnant growth observed in 2023 and 2024, during which investment levels remained consistent at $1.7 billion, according to available data.
The previous US administration’s proposed regulation to restrict the importation of graphics processing units (GPUs) from select nations could impede India’s aspirations in technology. These GPUs are essential for powering advanced artificial intelligence (AI) models and applications.
The funding activity among consumer brands is creating a busy deal landscape, with numerous brands engaging in agreements, indicative of a revitalised funding momentum.
Several of these transactions may also include secondary sales, as early angel investors and venture capital firms might choose to liquidity their stakes.
Market Overview: Venture capital firms are equipped with considerable available funds and are poised to increase their investments in early-stage startups. Notable firms such as Accel, 3One4 Capital, Peak XV Partners, and Lightspeed Venture Partners are actively seeking new opportunities across diverse sectors and themes.
Early-stage investments are on the rise once again, moving past the previous flat growth experienced in 2023 and 2024, with investments stabilising at $1.7 billion, as indicated by the data.
Related Reading: Signs of thawing in startup funding freeze observed in 2024.
The previous US administration’s proposed regulation to limit the importation of GPUs from particular countries could impact India’s technology ambitions. These GPUs are vital for running complex artificial intelligence (AI) applications.
The Dunzo mobile application and website experienced a shutdown following the exit of co-founder Kabeer Biswas, who transitioned to Flipkart to oversee its quick commerce division. This has placed the hyperlocal delivery service on the brink of closure.
A prominent financier, Sheikh, possesses a $1.5 trillion wealth and aims to utilise it to become a dominant player in AI (Wired).
Amazon is striving to integrate generative AI into Alexa’s core functions (FT).
General practitioners are turning to AI to assist with their patient workloads (BBC).
Also included in this correspondence:
- Fintechs and DPDP regulations
- Interview with HCLTech’s CEO
- ETtech’s Recent Deals
The activity in consumer brand funding keeps the deal marketplace active, with various brands actively participating in agreements, suggesting a recovery in funding levels.
Highlighted Deals Include:
- The Belgian firm Sofina is set to spearhead a funding round for The Whole Truth Foods, aiming for a valuation of ₹2,000 crore.
- Snabbit, a provider of at-home assistance services within 15 minutes, is finalising a funding round worth $10-15 million.
- Nuuk, a home appliance brand founded by ex-Rivigo co-founder Gazal Kalra, is finalising a seed funding round of $7-8 million.
- Mokobara is aiming to raise $30-40 million in its upcoming round, with a projected valuation between $250-280 million.
- Plush, a brand focusing on sanitary products and sexual wellness, is nearing completion of its series B funding, backed by high-net-worth individuals.
- Accel is currently negotiating a potential investment in Scimplify, a startup concentrating on specialty chemicals.
Market Overview: Venture capital firms possess substantial liquid assets and are expected to boost their investment activities in nascent startups. Funds such as Accel, 3One4 Capital, Peak XV Partners, and Lightspeed Venture Partners are vigorously seeking new engagements across various sectors and themes.
Investments in early-stage ventures are making a comeback, recovering from the previously stable growth observed in 2023 and 2024, maintaining an investment level of $1.7 billion, as recorded in the data.
The previous US administration’s proposed regulation concerning the restriction of GPU imports from specific countries may obstruct India’s ambitions in the tech sector. These GPUs are pivotal in powering high-performance artificial intelligence (AI) applications.
The ongoing enthusiasm in consumer brands’ funding continues to energise the deal landscape, with multiple brands entering agreements, signalling a resurgence in funding activities.
There are indications that some of these transactions will involve secondary sales, as early angel investors and venture capital funds may partially divest their stakes.
Market Overview: Venture capitalists are well-positioned with sizeable available funds and will likely advance in early-stage startup investments. Companies such as Accel, 3One4 Capital, Peak XV Partners, and Lightspeed Venture Partners are searching for new investment opportunities across diverse sectors and themes.
Early-stage funding is experiencing a resurgence, breaking away from a previously flat growth trend in 2023 and 2024, stabilising at $1.7 billion as indicated by the data.
The previous US administration’s proposed regulations to restrict GPU imports from certain nations may potentially impact India’s technology ambitions; these GPUs are critical for running intensive AI applications.
The Dunzo application and its website were rendered offline following co-founder Kabeer Biswas’s exit to Flipkart, where he will now head the quick commerce division, leading the hyperlocal delivery platform to face imminent shutdown.
A well-known financier, Sheikh, controls a fortune estimated at $1.5 trillion and seeks to channel this wealth into dominating the artificial intelligence sector (Wired).
Amazon is making strides to incorporate generative AI within Alexa’s operational infrastructure (FT).
General practitioners are adopting AI technologies to manage patient workloads more efficiently (BBC).
Also in this correspondence:
- Regulatory matters concerning fintechs and DPDP
- Insights from HCLTech CEO’s interview
- Recent deals highlighted by ETtech
The consumer brands funding landscape is bustling, with numerous brands finalising agreements, showcasing a revitalisation in funding momentum.
Noteworthy Deals:
- Sofina, a Belgian investment fund, is poised to lead a funding round for The Whole Truth Foods, targeting a ₹2,000 crore valuation.
- Snabbit, a rapid-response at-home assistance provider, is nearing closure on a funding round of $10-15 million.
- Nuuk, a home appliance start-up founded by former Rivigo co-founder Gazal Kalra, aims to secure $7-8 million in seed financing.
- Mokobara is pursuing a $30-40 million funding round, with a valuation anticipated between $250-280 million.
- Plush, specialising in sanitary products and sexual wellness, is approaching series B funding from high-net-worth individuals.
- Accel is in discussions to invest in Scimplify, a company focusing on specialty chemicals.
