This week saw 27 Indian startups securing funding totaling nearly $307.8 million, encompassing seven growth-stage deals and 17 early-stage deals, including three undisclosed transactions. In comparison, the previous week witnessed over $384 million collectively raised by 32 early and growth-stage startups, with five undisclosed deals.
[Growth-stage Deals]
In the realm of growth-stage deals, seven startups amassed $141 million in funding this week. The Ayurveda Experience, a D2C skincare and nutrition brand, led with a $27 million Series C funding round. IDfy, an ID verification platform, also secured the top spot with its $27 million Series E funding. Bira 91, a D2C Craft beer brand, Zetwerk, a B2B construction equipment supplier, and Educational Initiatives (Ei), an education software company, rounded out the top five with their respective funding rounds.
Other notable recipients of funding this week included PlanetSpark, an edtech startup, and Mufin Green, an electric vehicle financing platform. For more detailed information, visit TheKredible.
[Early-stage Deals]
Seventeen early-stage startups garnered funding amounting to $166.8 million during the week, with mPokket, an early-stage startup, leading the charts with a $60 million debt investment. Ema, a generative AI startup, Hunch, a social media startup, Rozana, a rural commerce startup, and Foxtale, a D2C skincare brand, were among the noteworthy names securing funding.
The list also featured business tools provider Exly (formerly MyScoot), Louisa AI, a sales enablement platform, and abCoffee, a D2C coffee chain, among others. Additionally, three startups, Azimuth AI, Swizzle, and Onramp Money, kept their funding amounts undisclosed.
[City and Segment-wise Deals]
Delhi-NCR-based startups led in terms of the number of funding deals, with 10 transactions, followed by Bengaluru with 9 deals, collectively contributing to 65% of the total fundraise during the week. Other contributing cities included Mumbai, Kolkata, Ahmedabad, Surat, Lucknow, and Hyderabad. A comprehensive breakdown of city and segment-wise deals is available at TheKredible.
[Series-wise Deals]
During the week, nine startups secured funding in their seed round, followed by five Series A deals. Additionally, three startups received funding in the pre-Series A stage, with two deals each in debt, Series E, and Series B funding rounds.
[Week-on-week Funding Trend]
On a weekly basis, startup funding decreased by 20% to $307.8 million compared to $384.16 million in the previous week. The average funding for the past eight weeks stands at around $216 million, with an average of 26 deals per week.
[Fund Launches]
This week witnessed the launch of four startup-focused funds. GetVantage introduced the Rise-Up Fund, dedicating Rs 100 crore to support women entrepreneurs’ businesses with capital, aiming to deploy the funds within the next 12 months. Colossa Ventures, a SEBI-registered venture capital management company, announced the first close of its Colossa WomenFirst Fund at Rs 100 crore. Climate tech venture studio NOW officially launched in India with a dedicated $2 million fund for early-stage Indian deeptech startups, aiming to foster innovation in the deeptech space. Navam Capital, an early-stage venture capital firm focused on backing startups in frontier technology sectors, also achieved the first close of its maiden investment vehicle.
[ESOP Buyback]
Community management app MyGate announced an employee stock buyback program for more than 50 employees. The buyback was initiated based on improved financial results for the Bengaluru-based company over the past couple of years, offering 20% of vested shares for employees who have completed four years at the firm.
For a more detailed breakdown of series-wise deals, funding amounts, complete details of fund launches, and additional insights, visit TheKredible.
[New Launches]
– Flipkart launched UPI services to counter third-party apps.
– Cashfree unveiled a new payment solution for software platforms.
– Gupshup rolled out Conversation Cloud to facilitate AI-backed B2C conversations.
– OYO announced plans to launch self-operated premium hotels under the ‘Palette’ brand.
– Lizzie Chapman, ex-CEO of ZestMoney, is set to launch a new venture, SwiffyLabs.
[Financial Results This Week]
– Ergos gross revenue crossed Rs 200 crore in FY23, with stagnant losses.
– Yubi reported Rs 328 crore in revenue and Rs 482 crore in losses for FY23.
– Trell’s revenue plummeted 94% to Rs 5 crore in FY23, with losses at Rs 59 crore.
– BigHaat’s gross revenue approached Rs 700 crore in FY23.
– Healthians reported Rs 224 crore in revenue and Rs 184 crore in losses for FY23.
[News Flash This Week]
– Infibeam Avenues received RBI’s final nod for Payment Aggregator license.
– Flipkart announced plans to take on Zepto and Blinkit with a quick commerce foray.
– Google agreed to temporarily restore delisted apps.
– Karnataka withdrew the electric bike taxi scheme, citing its misuse.
– Tech Fini partnered with NPCI to offer a credit line on UPI.
– NITI Aayog is set to roll out an initiative to create DPI for policymaking and governance.
– Antfin offloaded a 2% stake in Zomato via bulk deals worth Rs 2,827 crore.
– BlackBuck is gearing up to raise $300 million, preparing for an IPO.
– Meesho is set to raise funds from Peak XV and Tiger Global via a secondary transaction, with the deal expected to value the company between $3.5 billion and $3.9 billion based on final terms.
[Entrackr’s Analysis]
The weekly funding decreased by nearly 20% to $307.8 million compared to $384.16 million the previous week. Fortunately, there was no news of major layoffs, shutdowns, or departures in the startup ecosystem. Additionally, four firms launched startup-focused funds to support Indian entrepreneurs.
Google’s decision to temporarily restore applications removed from the Play Store due to policy compliance issues followed intervention by the Indian government, with IT Minister Ashwini Vaishnaw criticizing the delisting of select Indian apps. NITI Aayog’s launch of NITI for States, a digital cross-sectoral knowledge platform, aims to create a digital public infrastructure for policymaking and governance, providing practical knowledge and insights for government officials across states and UTs.
In another development, Flipkart is gearing up to enter the quick commerce sector, with infrastructure ramp-up already underway. Flipkart-backed logistics startup BlackBuck is also preparing for an IPO in the next fiscal year, aiming to raise up to $300 million.
Additionally, investors like Peak XV Partners and Tiger Global are reportedly eyeing a stake in e-commerce unicorn Meesho through a secondary transaction, with some angel and early investors expected to offload shares worth around $200 million. The deal is anticipated to value Meesho between $3.5 billion and $3.9 billion based on final terms.
