SUMMARY
- Indian startups raised $472.8 million, down 39.45%.
- Whatfix, M2P FinTech, and Qure.AI led significant investments.
- Bengaluru dominated funding activity with 11 deals closed.
In the last week of September, investments in Indian startups experienced a decline of 39.45%, with a total of $472.8mn raised across 26 deals which marked a notable contraction compared to the previous week.
Among the key investments this week were Whatfix, M2P FinTech, and Qure.AI. Leading the list, Whatfix, a B2C SaaS company based in Bengaluru, raised $125 million. M2P FinTech, a B2B fintech startup from Chennai, secured $101.8 million backed by Helios Investment Partners. Meanwhile, Qure.AI, a HealthTech startup, raised $65 million led by Lightspeed and 360 ONE Asset Management. Together, these companies account for a significant portion of this week’s total investments.
| INDEX | STARTUP NAME | FUNDING AMOUNT ($) | STAGE | ROUND | MODEL | CITY | SECTOR | LEAD INVESTOR |
|---|---|---|---|---|---|---|---|---|
| 01 | Sharang Shakti | 0.7M | Early | Pre-Seed | B2B | Noida | RoboTech | AUM Ventures and Venture Highway |
| 02 | Kapiva | 10M | Growth | Series C | D2C | Mumbai | Ayurvedic | OrbiMed Asia |
| 03 | Qure.AI | 65M | Growth | Series D | B2C | Mumbai | HealthTech | Lightspeed and 360 ONE Asset Management |
| 04 | Atlys | 20M | Growth | Series B | B2C | New Delhi | SaaS | Peak XV Partners and Elevation Capital |
| 05 | Tuco Intelligent | 2M | Early | Seed | D2C | Bengaluru | Personal Care | Fireside Ventures and Whiteboard Capital |
| 06 | Nurix AI | 27.8M | Early | Seed | B2C | Bengaluru | SaaS | Accel and General Catalyst |
| 07 | Pepsales | 1.1M | Early | Pre-Seed | B2B | San Francisco | SaaS | Chiratae Ventures |
| 08 | CoRover.ai | 4M | Early | Series A | B2B | Bengaluru | SaaS | Venture Catalysts |
| 09 | Oright | 1M | Early | Seed | B2C | Gurugram | DairyTech | Aeravti Ventures |
| 10 | jhana.ai | 1.6M | Early | Seed | B2C | Bengaluru | LegalTech | Girish Mathrubootham |
| 11 | Atomicwork | 3M | Early | Seed | B2B | San Francisco | HRTech | Strom Ventures, Blume Ventures and Neon Fund |
| 12 | Ahammune Biosciences | 5M | Early | Series A | B2C | Pune | BioTech | pi Ventures |
| 13 | Flent | 0.8M | Early | Pre-Seed | B2C | Bengaluru | PropTech | WEH Ventures |
| 14 | AdOnMo | 25M | Growth | Undisclosed Round | B2B | Hyderabad | AdTech | Sinar Mas and Rigel Capital |
| 15 | The Health Factory | 3.5M | Early | Seed | D2C | Mumbai | FoodTech | Peak XV Partner’s accelerator program Surge |
| 16 | Aarna.ml | 6.7M | Early | Series A | B2C | Bengaluru | SaaS | Exfinity Ventures |
| 17 | Homelane | 27M | Growth | Undisclosed Round | B2C | Bengaluru | SaaS | Hero Enterprise |
| 18 | Whatfix | 125M | Growth | Series E | B2C | Bengaluru | SaaS | Warburg Pincus |
| 19 | Giva | 12M | Growth | Series B | D2C | Bengaluru | FashionTech | Premji Invest |
| 20 | Curefoods | 10M | Growth | Debt | B2C | Bengaluru | FoodTech | Binny and Jitender Kumar Bansal |
| 21 | Uppercase | 9M | Growth | Series B | D2C | Mumbai | E-commerce | Accel |
| 22 | Vedantu | 2.3M | Growth | Equity Round | D2C | Bengaluru | EduTech | Stride Ventures |
| 23 | M2P FinTech | 101.8M | Growth | Series D | B2B | Chennai | Fintech | Helios Investment Partners |
| 24 | First Coffee | 1.2M | Early | Seed | D2C | New Delhi | FoodTech | BEENEXT |
| 25 | Care.fi | 1M | Early | Debt | B2C | Gurugram | HealthTech | Winter Wealth and Caspian |
| 26 | Two Point O Capital | 6.3M | Early | Seed | B2B | Mumbai | Fintech | Omnivore |
[Stage-Wise Analysis]
Growth Stage Deals
In the growth-stage deals this week, several startups raised significant funding. Leading the list was Whatfix, a SaaS firm from Bengaluru, which secured $125 million. M2P FinTech followed closely, raising $101.8 million.
Qure.AI raised $65 million in its Series D round. Other notable deals included AdOnMo with $25 million and Homelane with $27 million, contributing to the collective total of $407.1 million raised across 11 growth-stage deals.
Early-Stage Deals
In early-stage funding this week, 15 startups collectively raised $65.7 million. Leading the list was Nurix AI, a Bengaluru-based SaaS startup, which secured the highest investment of $27.8 million in its Seed round. Following closely, Aarna.ml, another SaaS startup, raised $6.7 million led by Exfinity Ventures.
Two Point O Capital, a FinTech startup from Mumbai, raised $6.3 million, while Ahammune Biosciences, a BioTech startup, garnered $5 million in a Series A round. Additionally, CoRover.ai, a Bengaluru-based firm, secured $4 million.
Round-Wise Analysis
The funding rounds were led by Seed rounds, with a total of 8 deals. Pre-Seed rounds followed, contributing to 3 deals, while both Series B and Series A rounds each saw 3 deals closed, highlighting continued investor confidence in scaling companies. Additionally, Series D ,Undisclosed and Debt rounds each accounted for 2 deals, further diversifying the funding activity. Finally, Series C, Series E, and Equity rounds each recorded 1 deal, marking a range of funding strategies among startups this week.
Business Model-Wise Analysis
The B2B model took the lead this week, closing 14 deals, making it the most dominant business model by a considerable margin. Both the B2C and D2C models secured 7 deals each, significantly contributing to overall deal activity.
Sector-wise Analysis
SaaS emerged as the dominant sector, securing 7 deals. Following it, FoodTech captured 3 deals, while HealthTech obtained 2 deals. Additionally, several sectors including RoboTech, Ayurvedic, Personal Care, DairyTech, LegalTech, HRTech, BioTech, PropTech, AdTech, FashionTech, E-commerce, EduTech, and FinTech each closed 1 deal, showcasing a diverse range of interests in the market.
City-wise Analysis
Bengaluru emerged as the top city for investments, recording 11 deals. Following this, Mumbai secured 5 deals, while San Francisco contributed with 2 investments. Other cities like Noida, New Delhi, Gurugram, Pune, Hyderabad, and Chennai each added to the deal activity with 1 deal each, showcasing a diverse investment landscape across various locations.
Undisclosed deals
There were no undisclosed deals in the funding landscape, marking a shift towards transparency as all funding rounds were publicly reported.
Mergers and Acquisitions
Several significant mergers and acquisitions reshaped the market landscape. Zaggle acquired a 98% stake in TaxSpanner for ₹32 crore, marking a strategic move in the fintech space.
Meanwhile, Loco, a game streaming firm, sold a majority stake to UAE-based Redwood, enhancing its operational capabilities.
In another notable acquisition, HomeLane expanded its portfolio by acquiring DesignCafe, securing ₹225 crore from Hero Enterprise and Ranjan Pai.
Additionally, Redcliffe Labs strengthened its position in the healthcare sector by investing in Bengaluru-based Celara Diagnostics, further expanding its diagnostic services offerings.
Management Overhaul
Significant management departures across various sectors marked recent developments in the startup landscape.
Cashfree Payments welcomed Nitin Pulyani as the new Head of Product and Senior Vice President, reinforcing its product development strategy.
In the healthcare sector, Probir Das took the helm as CEO of Integris Healthcare, marking a new chapter in the organization’s leadership.
Probus appointed Anand Agarwal as its Chief Technology Officer, a strategic move aimed at enhancing its technological capabilities.
Epiplex.ai announced the appointment of Raghunath Subramanian as Global President, signaling its commitment to global expansion.
CoinDCX strengthened its decentralized finance (DeFi) initiatives by appointing Rohit Jain to lead its new arm, Okto.
Conversely, Nitin Kumar stepped down from his role as Executive Vice President at RateGain, reflecting shifts in leadership at the travel technology firm.
In a noteworthy departure, Akriti Chopra, Zomato‘s co-founder and Chief People Officer, resigned, leaving a significant gap in the company’s leadership team.
PayU Finance laid off around 100 employees from its credit team, indicating adjustments within its workforce.
VC Fund Launched
In the evolving landscape of venture capital, several new funds were launched last week, signaling continued optimism and investment opportunities across various sectors.
Optimistic Capital introduced a ₹200 crore fund targeting microbreweries, amounting to $12 million, demonstrating a focus on niche markets.
Tribe Capital and Oister Global joined forces to establish a substantial $500 million fund aimed at secondary market investments.
SCOPE received regulatory approval for a $50 million fund, dedicated to investing in high-potential fintech and gaming startups, highlighting the growing interest in these sectors.
Additionally, MudhalVC launched a fund to support idea-stage and early startups in Tamil Nadu, further encouraging local innovation and entrepreneurship.
