SUMMARY
- Indian startup investments fell 78.17%, raising $103.2mn across 21 deals.
- Cricket legend Sachin Tendulkar joined Sugar.fit as a strategic investor.
- Mstack led early-stage funding with $40mn in Series A round.
In the first week of October, investments in Indian startups experienced a decline of 78.17%, with a total of $103.2mn raised across 21 deals which marked a notable contraction compared to the previous week. The top fundraisers included Mstack, Waycool, and BASIC Home Loan.
Leading the early-stage category, B2B-modeled ChemTech startup Mstack secured $40 million in its Series A round. Chennai-based AgriTech startup Waycool raised $12 million from Grand Anicut. Additionally, BASIC Home Loan, a B2B FinTech firm, garnered $10.6 million in its Series B round, led by Bertelsmann India Investments. These deals contributed significantly to the overall funding activity this week.
| INDEX | STARTUP NAME | FUNDING AMOUNT ($Mn) | STAGE | ROUND | MODEL | CITY | SECTOR | LEAD INVESTOR |
|---|---|---|---|---|---|---|---|---|
| 1 | Lissun | 2.5M | Early | Pre-Series A | B2C | Gurugram | HealthTech | RPSG Capital Ventures |
| 2 | Zintlr | 1M | Early | Seed | B2B | Bengaluru | SaaS | Om Jain |
| 3 | BASIC Home Loan | 10.6M | Growth | Series B | B2B | Gurugram | FinTech | Bertelsmann India Investments |
| 4 | Conscious Chemist | 1.4M | Early | Venture Round | D2C | Delhi | Beauty Commerce | Atomic Capital |
| 5 | Waycool | 12M | Growth | Debt | D2C | Chennai | AgriTech | Grand Anicut |
| 6 | Aikenist | Undisclosed | Early | Seed | B2C | Bengaluru | HealthTech | Venture Catalysts |
| 7 | FermionIC Design | 6M | Early | Seed | B2B | Bengaluru | Semiconductor | Ashish Kacholia |
| 8 | IG Drones | 1M | Early | Seed | B2B | Delhi | DroneTech | India Accelerator |
| 9 | Troo Good | 8.6M | Growth | Equity Round | D2C | Hyderabad | FMCG | Oaks Asset Management |
| 10 | Clayco Cosmetics | 2M | Early | Series A | D2C | Mumbai | Beauty Commerce | Unilever Ventures |
| 11 | Secret Alchemist | 5M | Early | Seed | D2C | Mumbai | Wellness | Samantha Prabhu |
| 12 | Str8bat | 3.5M | Early | Series A | D2C | Bengaluru | SportsTech | Exfinity Venture Partners |
| 13 | Mstack | 40M | Early | Series A | B2B | Bengaluru | ChemTech | Lightspeed and Alphawave |
| 14 | OnCare | 1M | Early | Seed | B2C | Gurugram | HealthTech | Huddle Ventures |
| 15 | Furnishka | 3.2M | Early | Pre-Series A | B2C | Bengaluru | Manufacturing | IndiaQuotient |
| 16 | ZEVO | 2M | Early | Pre-Series A | B2C | Delhi | EV | BizDateUp |
| 17 | Ai Health Highway | 1M | Early | Seed | B2C | Bengaluru | HealthTech | Turbostart |
| 18 | True Balance | 2.4M | Growth | Debt | B2C | Gurugram | LendingTech | VentureSoul Partners |
| 19 | Digilogic Systems India | Undisclosed | Early | Undisclosed Round | B2B | Hyderabad | AeroSpace | Negen Capital |
| 20 | SanchiConnect | Undisclosed | Early | Undisclosed Round | B2B | Noida | DeepTech | Baring PE India, Seafund, 8X |
| 21 | Sugar.fit | Undisclosed | Early | Strategic Round | B2C | Bengaluru | HealthTech | Sachin Tendulkar |
[Stage-Wise Analysis]
Growth Stage Deals
In the growth-stage funding, 4 startups collectively raised $33.6 million. Leading the growth deals was Waycool which garnered $12 million in debt financing. Gurugram-based, BASIC Home Loan secured $10.6 million, whereas, D2C-modeled, FMCG startup Troo Good raised $8.6 million backed by Oaks Asset Management. Finally, True Balance, a leading tech startup, raised $2.4 million in debt funding from VentureSoul Partners.
Early-Stage Deals
The Early-stage funding saw a total of 13 deals, collectively raising $69.6 million. Leading the pack was Mstack, which raised a capital of $40 million, backed by Lightspeed and Alphawave. FermionIC Design, another Bengaluru-based semiconductor startup, secured $6 million in its Seed round.
Mumbai-based wellness brand Secret Alchemist raised $5 million supported by Indian actress Samantha Prabhu. Str8bat, a SportsTech startup, garnered $3.5 million in Series A funding. Lastly, Furnishka, a B2C manufacturing startup, raised $3.2 million.
Round-Wise Analysis
The funding activity was predominantly led by Seed round, which secured a total of 7 deals, reflecting a strong interest in early-stage startups. Pre-Series A and Series A rounds each contributed to the landscape with 3 deals, indicating sustained investor confidence in developing companies. Additionally, Debt and Undisclosed rounds each accounted for 2 deals. Lastly, Series B, Venture, Equity, and Strategic rounds each recorded 1 deal, further highlighting the diverse approaches to investment among startups.
Business Model-Wise Analysis
The B2C model took the lead, closing 8 deals, closely followed by the B2B and D2C models securing 7 and 6 deals respectively.
Sector-wise Analysis
HealthTech emerged as the leading sector, securing 5 deals and highlighting the growing interest in healthcare innovations. Beauty Commerce followed with 2 deals. Additionally, several sectors including SaaS, FinTech, AgriTech, Semiconductor, DroneTech, FMCG, Wellness, SportsTech, ChemTech, Manufacturing, EV, LendingTech, AeroSpace, and DeepTech each closed 1 deal, showcasing a diverse range of investment interests across various industries.
City-wise Analysis
Bengaluru led the investment landscape with 8 deals, establishing itself as a prime destination for investors. Gurugram followed closely with 4 deals, while Delhi contributed 3 investments. Hyderabad and Mumbai each secured 2 deals, reflecting steady activity in these cities. Additionally, Chennai and Noida recorded 1 deal each.
Undisclosed deals
A series of undisclosed deals took place that underscore ongoing momentum in the investment landscape, with innovative companies at the forefront of these transactions. Digilogic Systems India, a leading tech solutions provider, secured fresh funding in a round led by Negen Capital. Similarly, SanchiConnect, a deep-tech accelerator focusing on SaaS solutions, raised funding from Baring PE India, Seafund, and 8X Ventures.
Sugar.fit, a health and wellness platform dedicated to lifestyle management, also completed a round of funding, with cricket icon Sachin Tendulkar coming on board as a strategic investor. Additionally, an emerging player in the tech space, Aikenist received seed funding from Venture Catalysts.
Mergers and Acquisitions
Several notable mergers and acquisitions were seen, highlighting key movements across industries.
PrepInsta, a prominent placement preparation platform, was acquired by Adda247, further strengthening Adda247’s portfolio in the education sector.
In the health and nutrition space, Pluckk, a food-tech firm, secured Upnourish, a nutrition brand, in a deal valued at $1.4 million.
Meanwhile, GlobalBees completed a full acquisition of The Butternut Co., expanding its footprint in the wellness and organic food industry.
In the tech domain, Capital IQ acquired Karman Drones in a transaction valued at ₹75 crore, marking a significant move in the drone technology space.
Finally, UST, a digital services firm, took over the automation unit of Information Services Group (ISG), a US-based company, for $27 million, bolstering its digital transformation capabilities.
Management Overhaul
This week witnessed significant management transitions across various sectors, highlighting the evolving nature of leadership within these organizations.
Popular digital news and entertainment platform, Rediff appointed Vishal Mehta as its new Chairman and Managing Director to drive strategic initiatives and enhance the company’s competitive edge in the digital landscape.
In the healthcare sector, MediBuddy, a leading digital health platform, welcomed Nijil George as Senior Vice President and Head of Operations with an aim to bolster the organization’s operational efficiency and improve customer experience.
Ferns N Petals, a major player in the floral and gifting industry, took a significant step by naming Gaurav Sharma as Chief Technology Officer, demonstrating a commitment to enhancing technological capabilities and service delivery.
In a creative move, Secret Alchemist welcomed actress Samantha Prabhu as a Co-founder, indicating a focus on innovative wellness solutions that combine entertainment with business strategy.
On the other hand, Indifi, a fintech firm dedicated to supporting small businesses, saw Siddharth Mahanot step down from his role as Co-founder after a successful nine-year tenure.
Lastly, Ola Electric Mobility, a prominent player in the electric vehicle sector, experienced a change in leadership with the resignation of Pramendra Tomar from his position as Company Secretary, reflecting ongoing adjustments in leadership dynamics across these diverse industries.
VC Fund Launched
Two new venture capital funds were launched to support early-stage startups. ThinKuvate introduced a ₹25 crore fund aimed at fostering innovation and growth in Indian startups, while Trillion Dollar Ventures launched a ₹50 crore fund to back promising ventures. Both initiatives highlight growing support for the startup ecosystem, offering early-stage companies opportunities for expansion and development.
