SUMMARY
- Indian Startup Funding dropped 35% in September amid $288.5mn raised
- Nazara Technologies acquired a 47.7% Stake in Moonshine Technology in a ₹832 Cr deal
- Early-stage startups raised a total capital of $53.85 mn
In the second week of September, investments in Indian startups experienced a decline of 35.13%, with a total of $288.5mn raised across 28 deals which marked a notable contraction compared to the previous week.
Among the key investments this week were InMobi, Slice and FlexiLoans. Leading the list, InMobi, a B2C Media & Entertainment company based in Bangalore, raised $100 million from MARS Growth Capital. A B2C-modeled FinTech, Slice raised a significant capital of $36 million. Meanwhile, FlexiLoans, a B2B FinTech startup, secured $34.5 million in the Series C round. These three companies account for 59 % of this week’s total investments.
| INDEX | STARTUP NAME | FUNDING AMOUNT ($) | STAGE | ROUND | MODEL | CITY | SECTOR | LEAD INVESTOR |
|---|---|---|---|---|---|---|---|---|
| 01 | Transcell Biologics | Undisclosed | Growth | Undisclosed Round | D2C | Hyderabad | BioTech | Quantiphi and IAN Group |
| 02 | Clean Electric | 6M | Early | Series A | B2C | Pune | EV | Info Edge Ventures, pi Ventures, and Kalaari Capital |
| 03 | AppsForBharat | 18M | Growth | Series B | D2C | Bengaluru | SpiritualTech | Fundamentum Partnership |
| 04 | Crackle Technologies | 1.7M | Early | Pre-Seed | B2C | Gurugram | AdTech | We Founder Circle and AC Ventures |
| 05 | Exposome | 1.2M | Early | Pre-Series A | B2C | Mumbai | CleanTech | Colossa Ventures |
| 06 | Nestasia | 8.35M | Early | Undisclosed Round | B2C | Kolkata | E-commerce | Susquehanna Asia VC, Stellaris Venture Partners, and notable angel investors |
| 07 | Supersquad | 0.2M | Early | Pre-Seed | B2C | Gurugram | SaaS | WLDD |
| 08 | Mitra | 1.3M | Early | Pre-Series A | D2C | Gurugram | FMCG | Bestvantage Investments |
| 09 | FlexiLoans | 34.5M | Growth | Series C | B2B | Mumbai | FinTech | Accion, Maj Invest |
| 10 | Track3D | 4.3M | Early | Seed | B2B | Hyderabad | AI | Endiya Partners |
| 11 | Zivy | 1.2M | Early | Pre-Seed | B2B | Bengaluru | AI | Blume Ventures |
| 12 | InMobi | 100M | Growth | Debt | B2C | Bengaluru | Media & Entertainment | MARS Growth Capital |
| 13 | Slice | 36M | Growth | Debt | B2C | Bengaluru | FinTech | Blume Ventures, and 8i Ventures |
| 14 | Futwork | 2.5M | Early | Series A | B2C | Mumbai | SaaS | The Michael & Susan Dell Foundation |
| 15 | Centricity | 20M | Early | Seed | B2C | Gurugram | WealthTech | Lightspeed |
| 16 | GameEon | 1M | Early | Undisclosed Round | B2C | Mumbai | Gaming | SucSEED Indovation Fund |
| 17 | Dharaksha Ecosolutions | 3M | Early | Seed | D2C | Delhi | BioTech | Avaana Capital |
| 18 | Trisu | Undisclosed | Early | Pre-Seed | B2C | Gurugram | FashionTech | All In Capital |
| 19 | Wundrsight | 0.4M | Early | Seed | B2C | Bengaluru | HealthTech | Inflection Point Ventures |
| 20 | Onsurity | 26.5M | Growth | Series B | B2B | Bengaluru | HealthTech | Creaegis |
| 21 | Newmi Care | 1.5M | Early | Seed | B2C | Gurugram | HealthTech | Sprout Venture Partners |
| 22 | Moneyboxx | 11M | Growth | Equity Round | B2C | Mumbai | FinTech | Undisclosed Investors |
| 23 | Moneyview | 4.65M | Growth | Undisclosed Round | B2C | Bengaluru | FinTech | Accel India and Nexus Ventures |
| 24 | HROne | 4M | Growth | Pre-Series B | B2C | Noida | SaaS | Insitor Partners and Prudent Investment Managers |
| 25 | Leezu’s | Undisclosed | Early | Pre-Seed | D2C | Mumbai | Wellness | Undisclosed Investors |
| 26 | Fitday | Undisclosed | Early | Strategic Round | D2C | Hyderabad | Wellness | GMB Entertainment |
| 27 | Agilitas Sports | Undisclosed | Early | Strategic Round | D2C | Bengaluru | E-commerce | Spring Marketing Capital |
| 28 | Apptile | 1.2M | Early | Seed | B2B | Bengaluru | SaaS | Singularity Early Opportunities Fund |
[Stage-Wise Analysis]
Growth Stage Deals
In the growth-stage deals, 8 startups raised significant funding, where leading the pack was InMobi with $100 million, followed by Slice with $36 million, and FlexiLoans, which garnered $34.5 million.
Onsurity, a Bangalore-headquartered HealthTech startup, raised $26.5 million in the Series-B round led by Creaegis. Additionally, AppsForBharat, a D2C SpiritualTech startup, secured $18 million in the Series-B round. Another significant deal was made by Moneyboxx, a B2C FinTech startup that raised capital of $11 million.
According to Infomance Research, growth-stage startups collectively raised a substantial amount of $234.65 million.
Early-Stage Deals
Subsequently, in the early-stage funding, a total of 15 startups collectively raised $53.85 million. The top 3 deals were clinched by WealthTech, E-Commerce, and EV sector startups. This included Gurugram-based Centricity which secured the highest investment of $20 million, followed by Nestasia, a Kolkata-headquartered startup, that raised $8.35 million in an undisclosed round. Additionally, Clean Electric, a B2C-focused enterprise, raised substantial funding of $6 million led by Info Edge, Pi Ventures, and Kalaari Capital.
Other noteworthy early-stage startups that secured investments were Track3D, an AI startup that raised $4.3 million, and Dharaksha Ecosolutions, a BioTech enterprise with $3 million in funding.
Round-Wise Analysis
Seed rounds led the funding activity this week, with 6 deals closed, followed by Pre-Seed rounds, which saw 5 deals. Undisclosed rounds also featured prominently, with 4 deals. Series A, Series B, Pre-Series A, Debt, and Strategic rounds each accounted for 2 deals. Meanwhile, Series C, Equity rounds, and Pre-Series B rounds saw 1 deal each.
Business Model-Wise Analysis
The B2C model took the lead this week, closing 16 deals, making it the most dominant business model by a considerable margin. The D2C model followed with 7 deals, while the B2B model secured 5 deals.
Sector-wise Analysis
SaaS and FinTech emerged as the leading sectors, each closing 4 deals. HealthTech followed closely with 3 deals, while BioTech, E-Commerce, AI, and Wellness sectors each secured 2 deals. Other sectors like EV, SpiritualTech, AdTech, CleanTech, FMCG, Media & Entertainment, WealthTech, Gaming, and FashionTech received attention as well, with each closing a single deal.
City-wise Analysis
The highest number of investments was observed in Bengaluru, with 9 deals. This was followed by 6 deals each in Mumbai and Gurugram. Additionally, 3 investments were made in Hyderabad. Pune, Kolkata, Delhi, and Noida are other places where deals were closed.
Undisclosed deals
This week saw five undisclosed deals across various sectors. Transcell Biologics, a Hyderabad-based biotech firm specializing in regenerative medicine, secured funding from Quantiphi and IAN. Luxury vermeil jewelry brand Trisu, known for its unique blend of affordability and craftsmanship, raised pre-seed funding, highlighting continued investor interest in niche luxury brands.
Leezu’s, a prominent player in India’s wellness market, received backing to expand its product line and enter new markets. Fitday, a nutrition brand from Hyderabad known for its holistic wellness products, secured funding from actor Mahesh Babu. Finally, Agilitas Sports, a growing sports equipment and apparel company, raised strategic investment from Spring Marketing Capital to boost its expansion.
Mergers and Acquisitions
Nazara Technologies, a major player in the gaming and sports media industry, strengthened its portfolio by acquiring a 47.7% stake in Moonshine Technology, the parent company of PokerBaazi, for ₹832 crore. This acquisition expanded Nazara’s presence in the real-money gaming sector.
Additionally, Nazara Technologies furthered its expansion by acquiring a 15.86% stake in Stan, a fan engagement platform, for ₹18 crore, enhancing its reach in the e-sports and gaming content space.
GoKwik, a leader in e-commerce enablement, bolstered its returns management capabilities by acquiring Return Prime, a global returns management platform, streamlining the customer return process for its clients.
Moneyview, a fast-growing fintech unicorn, expanded its lending business by acquiring Jify.co, a salary-on-demand platform, aiming to provide more comprehensive financial solutions to a wider audience.
Yudiz Solutions, a key player in the digital innovation and app development space, consolidated its position by acquiring a majority stake in ABCM App Pvt Ltd, strengthening its mobile app development services offerings.
Management Overhaul
In recent management changes, several key appointments and departures occurred, reflecting ongoing shifts in leadership across various industries.
One of India’s leading automotive tech platforms, CarDekho appointed Sudharshan Sharma, an ex-Google executive, as the Chief Business Officer (CBO) for its new auto division, strengthening the company’s leadership as it expands into new ventures.
Prahlad Krishnamurthi left Cleartrip, a major player in the online travel industry, to assume the CEO role at Nextbuy, marking a notable leadership transition within the travel company.
Prominent financial services firm InCred’s CFO, Vivek Bansal, stepped down to launch a fintech startup, signaling the entrepreneurial trend among top finance executives.
TAC Infosec’s CFO, Vishal Jain, resigned from his position, citing personal reasons.
These changes underscore the evolving leadership landscape, impacting industries ranging from automotive to fintech and cybersecurity.
VC Fund Launched
In the dynamic venture capital landscape, new funds continue to be launched, reflecting confidence and growth across various sectors.
Playbook Partners announced the first close of its $130 million growth capital fund, aimed at providing critical financial support to growth-stage companies poised for scalability. This fund is set to play a significant role in expanding high-potential businesses.
Omnivore secured a $5 million investment from Proparco for its AgriTech Fund, reinforcing its commitment to fostering innovation in India’s agritech space.
Arka Hreem launched its Real Estate Opportunities Fund, targeting ₹500 crore, to focus on real estate development projects. This fund, spearheaded by Arka Fincap’s financial services arm, positions the firm as a key player in India’s real estate sector.
These fund launches highlight the continued evolution and strength of the venture capital sector, with investments spanning from high-growth businesses to AgriTech and Real estate ventures
