Indian Startups Raise Funds This Week

This week, Indian startups raised a total of $218.69 million through 2 growth-stage deals, 22 early-stage deals, and 2 rounds whose details remain undisclosed. Additionally, there were 7 significant hires, 2 mergers and acquisitions, 2 new funds launched, and layoffs affecting 350 employees. In comparison, the preceding week saw 21 startups collectively garnering approximately $198.33 million.

Growth-Stage Deals

Growth-stage startups raised $68 million in two deals this week. Third Wave Coffee, a coffee chain located in Bengaluru, secured Rs 408 crore ($43 million) in a funding round led by WestBridge Capital, an existing investor. Matter, an electric motorcycle manufacturer based in Ahmedabad, raised $25 million (around Rs 250 crore) in growth equity from existing investors such as Helena, Capital 2B, Japan Airlines, TransLink Innovation Fund, and SMSC.

Early-Stage Deals

Early-stage startups collected $150.69 million across 22 deals this week. Airbound, an aerospace startup in Bengaluru, led the funding with a $37 million Series A round initiated by Greenoaks, with backing from DoorDash, Lachy Groom, Lightspeed, and Humba Ventures. Runable, a startup focusing on AI, attracted $21 million in a Series A round co-led by Susquehanna Venture Capital and Nexus Venture Partners.
Nexedge Capital, a wealth management firm in New Delhi, garnered $20 million in its first funding round through investment from Mirae Asset Venture Investment and Elev8 Venture Partners. InstaAstro, a digital spiritual wellness platform in Gurugram, raised $12 million in a Series A round led by Singularity AMC and Artha Venture Fund, along with investment from its founders. Other startups receiving funding this week included InspeCity, a spacetech startup, Ringg, a voice AI venture, as well as D2C skincare brand Asaya, logistics platform TrucksUp, and EV motorcycle manufacturer Omega Seiki Mobility, among 13 others, including two undisclosed deals.

City and Segment-wise Deals

Bengaluru maintained its position as the leading city for funding activities with 12 startup deals this week, followed by Delhi-NCR with 6 deals. Mumbai, Ahmedabad, Kolkata, Hyderabad, and Trichy also witnessed deals during this time. Segment-wise, AI startups topped the list with five deals, followed by e-commerce with three. Furthermore, Spiritual Tech, Logistics, and EV startups secured two deals each, while sectors such as F&B, Aviation, Fintech, Spacetech, and others also reported significant activity.

Series-wise Deals

Series A rounds led the week with 11 deals, while seed and pre-seed rounds each saw five deals. Series C, Series B, and pre-Series A had one deal each during the week.

Week-on-Week Funding Trend

Comparing with the previous week, the startup funding saw a decrease of over 10%, dropping from $198.33 million to $218.69 million. The average weekly funding over the last eight weeks remained approximately $192.5 million, distributed across 20 deals.

Key Hirings / Departures

This week, BharatPe welcomed two former senior executives from Paytm into essential roles. Kamal Sharma took on the position of AVP, Engineering, Consumer, while Yugal Tiwari is set to assume the responsibilities of Chief Product Officer. Slice, a digital and AI-centric bank, appointed Samir Sawhney as Executive Director and Ramesh Kumar as Independent Director on its board. Pluto Insurance, part of Raise Financial, appointed Abhishek Singh as CEO. Additionally, Qure.ai designated Mihir Bhanushali as Executive Vice President, Global Health, to spearhead its expansion efforts in low- and middle-income nations. Technology-driven insurance distribution platform Coverfox made Shikha Gupta its Chief Strategy Officer. Temple welcomed Longevous founders Dr Robert Mohr and Dr Avi Roy to their team, with Dr Mohr taking the role of Chief Medical Officer and Dr Roy becoming Head of Science.

Mergers and Acquisitions

Temple, headed by Deepinder Goyal, has acquired Longevous, a London-based longevity medicine practice, to enhance its clinical and scientific capabilities in preparation for its launch. Healthify, a health-centric startup in Bengaluru, merged with Berry Street, a US-based nutrition care entity, in an all-stock deal, combining Healthify’s AI-powered platform with Berry Street’s insurance-supported clinical care network in the US.

Fund Launches

TILT, an impact-focused investment platform affiliated with The/Nudge Foundation in Bengaluru, has launched a Rs 250 crore venture fund aimed at supporting early-stage enterprises catering to India’s Next Billion. This fund is set to invest between Rs 2 crore and Rs 16 crore, spanning from Seed to Series A. Micromax Informatics, a tech firm, has introduced a Rs 250 crore family office dedicated to investing in deeptech startups both in India and internationally.

Layoffs

Even Healthcare, a healthtech startup, laid off approximately 350 employees, representing 30-35% of its workforce, despite obtaining multiple funding rounds this year. The job cuts are part of a strategy to transition from its insurance business to a hospital-led healthcare model.

Financial Results This Week

New Launches and Partnerships

Cashfree Payments has released Relay, an AI Super Agent designed for comprehensive payment operations aimed at SMBs. Flipkart Ads has launched Saarthi, a programme that helps sellers enhance their strategies with AI-driven tools and professional guidance. Tulu Health has introduced Longevity OS, marking its announcement for expansion in the US. iServeU has partnered with Maximize Money to broaden its services with a Gift Card Management Platform.

News Flash This Week

Ribbit Capital sold a Rs 2,217 crore stake in Groww, leading to a 3% drop in shares. DealShare is in discussions for acquisition as it faces a potential shutdown. Flipkart Minutes has surpassed Swiggy Instamart in dark store count in the top 10 cities according to CLSA. Lightspeed has exited its investment in PhysicsWallah with a Rs 550 crore block deal. Lenskart investors sold over $1 billion worth of shares in three months, with SoftBank unloading another $300 million. Swiggy’s Food on Train service has grown 12 times in two years, now available at 201 stations.

Summary

On a week-to-week basis, startup funding increased by 31% to $198.33 million from $151.5 million raised the previous week. US-based VC firm Ribbit Capital sold around 11.31 crore shares worth Rs 2,217 crore in Groww’s parent company Billionbrains Garage Ventures through bulk transactions. The wider transactions included approximately 12.74 crore shares valued at nearly Rs 2,500 crore. Silicon Valley-based Lightspeed Venture Partners exited entirely from its stake in edtech firm PhysicsWallah via a Rs 550 crore block deal. Flipkart Minutes has now outperformed Swiggy Instamart in terms of dark store tally throughout India’s leading cities. SoftBank has sold additional shares of Lenskart, reducing its stake. Cashfree Payments introduced Relay for automating payment operations, while Flipkart started the Ads Partner Program to aid growth for sellers.