Indian Startups Secure $152.49 Million in Funding

This week, Indian startups have collectively raised around $152.49 million, comprising 5 growth-stage and 17 early-stage funding deals, with one startup opting to keep its funding information confidential.

Growth-Stage Funding Highlights

In the realm of growth-stage investments, the wealthtech firm Smallcase secured $50 million in its Series D funding round, driven by Elev8 Venture Partners, while Jindal Stainless acquired a 9.62% share in M1xchange. Additionally, DCDC Kidney Care successfully obtained Rs 150 crore from ABC Impact. The agritech enterprise VAHDAM, known for its direct-to-consumer tea products, also obtained financial support this week.

Early-Stage Funding Insights

Seventeen early-stage startups achieved a total funding of $54.09 million this week. Fintech startup Abound led this group with a $14 million funding round, followed by NBFC startup Ecofy, manufacturing company GreenFortune, climate tech enterprise FluxGen, and the direct-to-consumer diamond jewellery brand Firefly Diamonds, among others. Edtech startup KollegeApply also secured funds, although the raised amount has not been disclosed.

For a comprehensive funding breakdown, please explore various sources.

City and Segment-wise Funding Analysis

Looking at the geographical distribution of funding, startups in Delhi-NCR topped the list with 8 deals, followed by Bengaluru, Mumbai, Hyderabad, and Chennai.

From a segment perspective, fintech businesses led with 6 deals. E-commerce and healthtech sectors followed with 5 and 3 deals, respectively. Agritech, climate tech, AI, and other sectors also secured financing.

Series-wise Funding Overview

This week, seed funding deals took the lead with 7 transactions, followed by pre-Series A, Series D, debt, Series A, and others.

Week-on-Week Funding Trend

In week-to-week comparisons, startup funding experienced a decrease of 13.57%, dropping to $152.49 million from approximately $176.44 million acquired in the preceding week. Over the last eight weeks, the average weekly funding stands at around $243.62 million with 24 deals each week.

Significant Hiring News

This week witnessed notable leadership changes across multiple organisations. Delhivery appointed Milind Sharma, co-founder of the now-defunct Peppertap, as Head of Rapid Commerce and D2C Brands. B2B SaaS company MaxIQ named Sastry Malladi as its Chief Technology Officer (CTO). Camb.Ai has brought on Anupam Sengupta to lead AI Business for the India Subcontinent and SEA region, while Times Internet has recruited former Razorpay executive Johney Maheshwari to oversee its corporate development division.

Mergers and Acquisitions

A variety of significant mergers and acquisitions were reported this week. B2B platform Jumbotail acquired Solv India from SC Ventures, the innovation and investment arm of Standard Chartered. KRAFTON, creators of Battlegrounds Mobile India (BGMI), gained a controlling interest in Pune-based Nautilus Mobile for Rs 118 crore ($13.7 million). SaaS unicorn Chargebee acquired Trainn, an AI-powered customer tracking solution, to bolster its revenue management and customer retention capabilities. In addition, JungleWorks secured AI-based startup Outplay.

For further details, check various sources.

Fund Launches and Expansion Initiatives

The Indian government has unveiled a Rs 1,000 crore funding initiative aimed at enhancing the space sector startup ecosystem. NuVentures, a venture capital firm established by Venk Krishnan in 2015, has announced the launch of a $75 million fund with a focus on investing in startups that possess strong ties to India. Singularity AMC revealed that its second private equity fund, which is oversubscribed, has amassed Rs 1,800 crore ($210 million).

For a complete overview of fund launches, series-wise deals, and additional insights, please refer to various sources.

Layoffs

A report from Mint indicates that electric mobility startup Zypp Electric has laid off around 250 employees, which represents 10% of its workforce, over the last three months, citing performance issues.

Shutdowns

Alcoholic beverage startup O’Be Cocktails has ceased its operations after over five years in the market.

New Launches and Partnerships

• SaaSBoomi introduces BoomiAI to assist AI-driven founders.
• RedBeryl, a luxury lifestyle management firm, partners with Tata CLiQ Luxury.
• Twid collaborates with redBus to launch reward points for users.
• TenderCuts’ founder Nishanth RaviChandran launches an AI-based analytics startup.
• The Centre plans to launch ‘Sahkar Taxi’ to compete with existing players like Ola and Uber.

Financial Results This Week

• AlgoBulls reports a remarkable 4.4X revenue increase for FY24 and achieves positive EBITDA.
• VerSe reduces its cash burn by 51% in FY24 and aims for profitability in the second half of CY25.
• BharatPe reaches EBITDA breakeven in the first nine months of FY25.
• BattRE surpasses Rs 100 crore revenue milestone in FY24, maintaining profitability.
• Garuda Aerospace’s revenue and profit have more than doubled in FY24.
• Mindgate, supported by PayU, reports a profit surge of 3.6X in FY24, achieving Rs 257 crore in revenue.
• Celebal Tech nears Rs 300 crore in revenue for FY24 but incurs significant losses.

Potential Financing Deals

• Kareena Kapoor-backed Pluckk expected to raise $10 million in Series A funding.
• Groww is in discussions to secure $200 million in a pre-IPO funding round.
• Country Delight aims to raise $25 million from Temasek.
• Zepto is negotiating for a $250 million secondary funding round.
• Curefoods plans to secure debt financing from Blacksoil and Binny Bansal.
• Apna Mart raises $25 million, led by Fundamentum and Accel.

News Flash This Week

• Mobikwik expands into stock broking with its new subsidiary.
• Ola Electric’s subsidiary resolves its insolvency dispute with Rosmerta Group.

Summary of the Week

Startup funding this week decreased by 13.57%, totaling $152.49 million as compared to the previous week’s amount of around $176.44 million. Fintech firm Mobikwik is making strides into the securities broking field with the introduction of its fully owned subsidiary, Mobikwik Securities Broking Private Limited (MSBPL), aiming to broaden its financial service offerings by including stock and commodity brokerage services.

Home Minister Amit Shah announced the forthcoming launch of ‘Sahkar Taxi,’ a government-supported ride-hailing service aimed at competing with platforms like Ola, Uber, and Rapido. This initiative is designed to empower drivers by providing them complete control over their earnings without the interference of third-party commissions.

Numerous startups are currently in the process of raising capital, as indicated by regulatory filings reviewed by Startup Superb. Dairy startup Country Delight is looking to collect $25 million in its Series E funding round from Temasek. Another startup, B2C, seeks to raise $10 million in Series A funding from Euro Gulf Investment. Additionally, Apna Mart, a franchise-driven grocery and FMCG chain, is securing $25 million in a new round led by Fundamentum Partnership Fund and Accel.