Indian Startups Raised $780.835 Million This Week [Sept 16-21] – Key Insights and Analysis

This past week, investments in the Indian Startup Ecosystem surged by 1.7X. The total amount invested this week was recorded as $ 780.835 million. Noida-based ed-tech company Physics Wallah secured $210M in the Series B round. The B2C-modeled Nazara Technologies raised $108M in the Equity round. Operating in the Software as a Service (SaaS) sector, Whatfix managed to raise $100M in the Secondary round, this investment was led by Sweet Nectar Investments and SoftBank. The Bengaluru-headquartered firm e6data- an early-stage startup secured $10M in the Series A round.

According to Infomance Research and Data Available on Public Sources, Indian startups raised $780.835 million across 32 deals this week. This included 15 growth-stage deals totaling $737.8 million and 12 early-stage deals totaling $43.035 million. Additionally, there were 05 undisclosed deals, all coming in the early stage.

[Stage-Wise Analysis]

Growth Stage Deals

Among the growth-stage deals, 15 startups raised $737.80M in funding this week. This list was led by ed-tech giant Physics Wallah, which secured $210 The investment was led by Hornbill Capital. Mumbai-based Nazara Technologies secured $108M from SBI Mutual Fund and Junomoneta Finsol. ‘The B2C modeled Whatfix managed to raise $100M in the Secondary round. Operating in the FinTech space, M2P Fintech and Credlix raised $50M each from Taj Investment Holdings and Moglix, respectively. Redcliffe Labs, a health tech firm, raised $42M in the Series C round. Bengaluru-headquartered startup iBUS secured $34M; the funding round remains undisclosed.

Other noticeable startups in the growth stage that managed to raise funds include Everest Fleet which raised $30M in the Series C round. DeepTech sectored Big Bang Boom Solutions which secured $30M, Media and Networking site Way2News secured $14M, and FinTech firm Aye Finance raised $30M in the Series G round.

Early Stage Deals

Subsequently, 12 early-stage startups secured funding worth $43.035M during the week. Among the early-stage startups, analytical startup e6data raised $10M in the Series A round from Accel. Wellness-focused startup The Wellness Co managed to raise $7.2M in the Equity round. Kolkata-based NowPurchase secured $6M from Info Edge Ventures. The B2C-firm Elivaas also secured $5M in the Series B round. Media and Entertainment startup Schmooze which is headquartered in Bengaluru raised $4M in the Series A round.

Other worth-mentioning early-stage startups that successfully raised funding this week include SaaS-based Altius Hub, DeepTech-focused Proxgy, Bengaluru-headquartered GalaxEye, Hyderabad-based Bluecopa Nabs, and Fast Moving Consumer Goods (FMCG) sectored Alpino.

Round-Wise Analysis

The maximum number of deals (5) was done in Series B, Equity, Undisclosed, and Seed rounds. Following this was the Series A round which recorded 4 investments. Rounds like Series C and Pre-Series A recorded 2 investments each. Additionally, there was a deal maed each in Series D, Secondary, Corporate, and Series G rounds.

Business Model-Wise Analysis

Maximum deals were closed by B2C-modeled firms, the number of deals being 14. It was followed by 12 deals by B2B companies and 06 deals were secured by D2C startups.

City-Wise Analysis

Mumbai-based startups led the funding list with 07 investments made in startups from this region. Next on the list were the Bengaluru-headquartered firms with 06 deals. There were 05 investments recorded from startups in Gurugram. Startups from Chennai closed in on 04 deals this week. It was followed by Hyderabad-headquartered startups with 03 investments. There were 2 funding deals made each in startups from Noida and Delhi. An investment each was made in startups from Coimbatore, Surat, and Kolkata

Sector-Wise Analysis

Sector-wise, FinTech and Software as a Service-focused startups led the list with 6 investments recorded in each one of them. It was followed by companies from DeepTech, E-Commerce, and Media and Entertainment sector with 2 deals each. An investment each was made in EdTech, Gaming, HealthTech, Mobility, Analytics, Wellness, PropTech, SpaceTech, FMCG, Consumer Service, Manufacturing, Event Management, FoodTech and Artificial Intelligence (AI).

UNDISCLOSED DEALS

There were 05 deals recorded this week in which the amount raised remains undisclosed. This includes AI-sectored TraqCheck, Mumbai-based Salt Oral Core, B2C-firm Ticket9, operating in the Manufacturing sector Venttup, and D2C-startup Kaatil.

MERGERS & ACQUISITIONS

Max Healthcare Institute Ltd, a leading healthcare services provider based in New Delhi, has announced a strategic partnership with Lakshdeep Group, the promoter group of Jaypee Healthcare Limited (JHL), which is currently undergoing the Corporate Insolvency Resolution Process.As part of this collaboration, Max Healthcare will acquire a 64% controlling stake in JHL, with the option to purchase the remaining 36%.The acquisition will include JHL’s flagship 500-bed hospital in Noida, alongside two additional facilities located in Bulandshahr and Anoopshahr, Uttar Pradesh.

The platform-first martech network, Wondrlab, has acquired the influencer marketing platform, Opa. This acquisition is Wondrlab’s second in the influencer marketing sector and its sixth acquisition overall. By integrating Opa and Opportune, Wondrlab secures its status as a leading figure in the influencer marketing arena.

Indian multinational hospitality firm, OYO, has agreed to purchase G6 Hospitality, which operates Motel 6 and Studio 6, for $525 million in an all-cash deal. The acquisition would see OYO take over the US-based company from Blackstone Real Estate. The agreement is anticipated to be finalized by the end of 2024.

Fintech company Veefin has acquired a 26% equity stake in software solutions provider EpikIndifi through a cash-and-share swap arrangement. This marks Veefin’s third acquisition this year, after earlier deals involving Nityo Infotech and Regime Tax Solutions, the operator of TaxGenie and PayInvoice. Following the acquisition, EpikIndifi’s co-founders along with their team, will be integrated into the Veefin Group. Veefin expects the deal to enhance its service portfolio, particularly in the digital retail lending space.

A business-to-business-to-consumer (B2B2C) global investing platform enabling Indian investors to access global markets, Stockal declared the strategic acquisition of Acru, a company specializing in infrastructure solutions that facilitate investments in Indian financial products for non-resident Indians (NRIs) and person with Indian origin (PIOs). This strategic move completes Stockal’s cross-border investment ecosystem, empowering both Indian and global investors to seamlessly invest in each other’s markets.

Agritech startup Marsh Harrier, backed by IIMA Ventures, announced that it has acquired a computer vision company AJA Vision Technologies, based in Ahmedabad, in an undisclosed deal, an official release stated Thursday. The acquisition will enhance Marsh Harrier’s capabilities in automation and computer vision, crucial for advancing its packhouse solutions.

MANAGEMENT DEPARTURE & LAYOFFS

B2B ecoB2B ecommerce platform Bizongo split its raw material marketplace BizongoBuy and embedded supply chain finance platform BizongoFin into new and larger businesses, each to be led by a new chief executive officer. The group–backed by Accel and IFC—also appointed a chief technology and product officer, and chief financial officer, strengthening its senior leadership. Former banker Kiran Dev has been named CEO to lead BizongoFin. Prahlad Krishnamurthi has joined as the CEO of BizongoBuy, the integrated B2B marketplace for SMEs buying raw materials. In addition, Gaurav Singhania, with over 20 years of experience at American Express and LendingKart, has been appointed as the CFO to bolster Bizongo’s financial processes and controls in the run-up to a planned public listing. Amol Wanjari has joined as chief technology and product officer.

Amazon has announced that Samir Kumar, a 25-year veteran of the company, will take over as head of its India consumer business starting October 1, 2024. The leadership change comes following the resignation of Manish Tiwary, who had been leading Amazon India for over eight years.

Pizza Hut, a division of US-based Yum! Brands has announced the appointment of Rohan Pewekar as the Managing Director, Pizza Hut Indian Subcontinent. Based in Gurgaon, Rohan will lead the brand across India, Nepal, Bangladesh, Sri Lanka, and the Maldives, as Pizza Hut sets the stage for its next phase of expansion in the region.

ACT Fibernet- a leading fibre-focused wired broadband Internet Service Provider (ISP) announced the appointment of PVV Srinivasa Rao as its Chief Executive Officer (CEO). Rao replaces Bala Malladi who has resigned from ACT Fibernet after serving the company for 16 years.

Sidharth Shakdher, the former Executive Vice President and Chief Marketing Officer, of Disney+ Hotstar has joined ANI Technologies (Ola Mobility) as its Global Chief Business Officer, say sources. Shakdher will now spearhead the company’s revenue and marketing efforts in India and internationally.

Aakash Educational Services Ltd. (AESL), owned by Byju’s, has reportedly laid off 80 to 100 employees over the past few months as part of a strategic shift in business operations. According to sources, the layoffs impacted senior and middle-level executives, including several long-term employees who had been with the company for more than four years. The layoffs come as AESL focuses on its “Aakash 2.0” strategy, which aims to introduce new business models, consolidate existing roles, and create new opportunities.

VC Fund Launched

At the first closure of its inaugural fund, Shivalik Investment Fund(SIF), a Category II Alternative Investment Fund (AIF), has raised 50% of its intended corpus of ₹150Cr. Under the “green shoe” option, the fund also hopes to raise an additional ₹150Cr. The fund’s primary focus is on residential and commercial real estate investments, along with project planning in Ahmedabad’s high-growth districts.

z21 Ventures, an early-stage venture capital (VC) firm, has completed the initial investment round of its $40 million Fund II, raising $20 million (₹167Cr) from its primary investor, WestBridge Capital. The firm has announced its plan to also seek additional funding from “leading operators and experts who will mentor and support founders”.

Capital A, a VC firm, has introduced its second fund, targeting ₹400Cr to invest in startups across sectors like manufacturing, deep tech, climate, and fintech. The firm plans to back 17-20 companies, with total investments of $2-3 million per startup with an initial funding range from $750,000 to $1 million.

Mayank Bidawatka, one of the co-founders of the homegrown microblogging platform Koo, which ceased operations in July, is working on a new venture named Billion Hearts Software Technologies. He has secured $250,000 in an angel investment round for this venture. The new venture is supported by 13 angel investors, including the founders of companies like redBus, Ola, InMobi, Myntra, and former Flipkart CTO, among others.