Indian Startups Raise $355.02 Million This Week

This week, Indian startups attracted about $355.02 million in funding, comprising 3 growth-stage and 20 early-stage investments, with 2 startups opting not to disclose their funding details.

In contrast, around $105.87 million was secured by 21 startups from both early and growth stages during the previous week.

Growth-Stage Funding Highlights

In the growth-stage funding segment this week, DarwinBox, an HR tech platform, successfully raised $140 million in its Series D funding round led by Partners Group and KKR. Additionally, Leap Finance, a fintech platform, obtained $100 million in debt from the ASEAN Growth Fund, and InsuranceDekho, an insurtech company, garnered $70 million in its Series C round led by Beams Fintech Fund.

Early-Stage Funding Details

Furthermore, 20 early-stage startups secured a total of $45.02 million this week. MaxIQ, a revenue AI platform, topped the early-stage funding with a $7.8 million round. This was followed by startups like Beacon.li, Nuuk, indē wild, Rezolv, FluxGen, and several others. Real estate platform SILA, Deeptech startup Zuppa, and Quick commerce platform KiranaPro also raised funds but chose not to disclose their amounts.

City and Segment Breakdown

Regarding city-wise funding, Bengaluru startups led with 12 deals, followed by Delhi-NCR, Mumbai, and other regions. In terms of segments, fintech startups were most successful, securing 5 deals, followed by AI startups with 4 deals. E-commerce, Healthtech, and SaaS startups each obtained 3 deals, alongside Agritech, HR Tech, Enterprise Tech, and others that also achieved funding.

Series Overview

This week, Seed funding deals topped the charts with 15 deals, followed by Series A, pre-seed, pre-Series A, and additional categories.

Weekly Funding Trends

In a week-to-week comparison, startup funding surged to $355.02 million, marking a growth of over 3.3 times from the previous week’s figure of about $105.87 million. The average funding over the last eight weeks is around $303.42 million, with 28 deals on average each week.

Leadership Changes

This week also featured notable leadership transitions. OYO, a global travel-tech company, appointed Sonal Sinha as the Chief Executive Officer of its new acquisition, G6 Hospitality. Lightrock, a global investment platform, has added Samir Abhyankar as a Partner and India Head. Phone brought in Amit Doshi as their group CMO, while ParkMate, a provider of parking solutions, appointed Ziaul Hoda as Vice President of Operations for its B2C segment. T-Hub, a startup incubator, has named former OYO executive Kavikrut as its CEO. Additionally, Shraeyansh Thakur, an investor at Peak XV Partners, departed after nearly ten years with the venture capital firm.

Mergers and Acquisitions

Several significant mergers and acquisitions occurred, including M2P Fintech set to acquire Chennai-based AI startup Mad Street Den. Merchant SaaS provider Mintoak has acquired fintech startup Digiledge, which focuses on bill payments and CBDC solutions. GaragePlug, an automotive service platform, has acquired the review management company Freshreview.

New Funds and Expansion

Venture capital firm Prime Venture Partners has closed its fifth fund at $100 million, aimed at backing early-stage startups in fintech and artificial intelligence. A Junior VC (AJVC), led by Aviral Bhatnagar, has also closed its initial Rs 100 crore fund to support pre-seed startups in India. Rohan Misra, son of former SoftBank Vision Fund CEO Rajeev Misra, has launched Gravity Holdings, a London-based fund that secured $150 million to support Indian tech startups. Lighthouse Canton received a strategic investment from Kotak Mahindra Asset Management in its LC GenInnov Global Innovation Fund, which plans to invest in 30-35 high-potential companies across various sectors, including robotics, technology, and healthcare.

Layoffs in the Industry

Ola Electric, a publicly listed electric scooter manufacturer, is reportedly laying off over a thousand employees and contract workers in an effort to curtail rising losses.

New Launches and Partnerships

Several partnerships and launches took place this week. ETAC has partnered with The ePlane Company to advance Urban Air Mobility in India. Garuda Aerospace is collaborating with Bank of India to provide agri-drone loans, while STAN has teamed up with FanCraze to enhance fan engagement through a new game. Krutrim has collaborated with Lenovo to develop India’s largest supercomputer. Ultraviolette is entering the electric scooter market with the launch of ‘Tesseract,’ and Veranda Learning is partnering with IIT Madras to improve skill development. Additionally, AbhiBus has paired with YoloBus to introduce India’s first women-only intercity bus service.

Financial Performances This Week

This week, Phi Commerce reported Rs 81 Cr in revenue for FY24, with losses tripling. Indifi’s scale has exceeded Rs 300 Cr for FY24 while remaining profitable. Safexpay faced a cyber attack in FY24, leading to a 67% decrease in revenue and doubling of losses. M2P Fintech’s revenue fell over 13% in FY24, with losses remaining stable. Falca saw its revenue surpass Rs 350 Cr in FY24, with losses also tripling, while KKR-owned Leap India reported a fourfold increase in profit for FY24.

Potential Funding Deals

A range of potential funding deals are on the horizon. The 10-minute food delivery startup Swish is in the process of raising $14 million, while Kunal Shah-backed Punch is looking to secure fresh funds. Truemeds aims to raise $44 million led by Accel India, and a former KKR India CEO’s VC firm is backing Windo’s Series A. BetterPlace is also initiating a new round aiming for $3.8 million, and XYXX is seeking fresh funding led by Niveshaay Sambhav Fund. Meanwhile, 91Trucks is preparing to raise a new round led by Arkam Ventures.

News Highlights This Week

Ola Electric is expected to lay off 1,000 employees, marking a significant move in the company’s restructuring efforts.

This week, startup funding surged by over 3.3X to $353.97 million, in contrast to the $105.87 million raised the prior week. AI unicorn Krutrim has entered into a partnership with Chinese consumer electronics leader Lenovo to develop India’s largest supercomputer. Premium e-bike manufacturer Ultraviolette Automotive has ventured into a new segment by launching its first electric scooter, ‘Tesseract.’ Numerous startups are looking for investment this week, with various funding rounds in progress.