Weekly Funding Report [August 12 – August 17, 2024]: Indian Startups Raised $430.6Mn This Week – Analysis, Highlights, and Breakdown

This week investments in Indian startups experienced a significant surge of 12.04%, with a total of $430.6mn raised across 24 deals which marked a notable rise compared to the previous week.

Among the key investments are Oyo, Ather Energy, and Neo. A PropTech startup, Oyo, raised the highest capital this week i.e., $175mn, while Ather Energy, a B2C- modeled EV startup secured $71mn in a Series E round, with funding led by the National Investment and Infrastructure Fund (NIIF), and Neo, a FinTech Startup based in Mumbai raised $48mn in its Growth stage led by MUFG Bank and Euclidean Capital LLC and. These 3 companies account for approximately 68.28% of the total investment this week.

[Stage-Wise Analysis]

Growth Stage Deals

In the growth phase, 7 startups raised significant funding this week, where leading the pack was Oyo with $175 million, followed by Ather Energy with $71 million, and Neo which garnered $48 million.

Syfe, a Singapore-headquartered WealthTech startup, raised $27 million in the Series C round led by Valar Ventures and Unbound. In addition, Vayana, a business-to-consumer model FinTech startup, secured $20.5 million in the Series D round.
Furthermore, in the Pre-Series B round, E-commerce startup Beco raised $10 million in funding. According to Infomance Research, growth-stage startups collectively raised a significant value of $360 million this week.

Early-Stage Deals

Subsequently, in the early-stage funding news, a total of 14 startups collectively raised $70.6 million. The top 3 deals were clinched by EV sector startups. This included Pune-based Kinetic Green which secured the highest investment of $25 million, followed by Fresh Bus, a Bangalore-headquartered startup, that raised $10.5 million in a series A round.

Additionally, Kazam, a B2C-focused enterprise, successfully raised substantial funding of $8 million led by Vertex Ventures Southeast Asia and India. Other noteworthy early-stage startups that secured investments include 4baseCare, a health tech startup that raised $6 million; Skydo, a FinTech enterprise; and FASHOR, an E-commerce startup, both of which garnered $5 million each.

Round-Wise Analysis

Considering all the deals closed this week, the Seed round emerged as the most prevalent investment stage with 6 deals, closely followed by the Series A round with 4 deals. The Pre-Series A and Series E rounds saw 3 and 2 deals finalized, respectively. Only 1 deal closed in the Pre-seed, Pre-Series B, Series B, Series C, Series D, Series G, and Undisclosed rounds.

Business Model-Wise Analysis

The B2C model emerged as the most dominant, securing 12 deals, closely followed by the D2C model, with 7 deals closed, demonstrating substantial traction in the market.
The B2B model, with 5 deals concluded, constituted 20.84% of the total deal share.

Sector-wise Analysis

This week, both Fintech and EV emerged as the most sought-after sectors, closing 4 deals each, while e-commerce saw 3 deals. AI, WealthTech, PropTech, and HealthTech attracted investor interest with 2 deals each. Other sectors that received attention included FMCG, SaaS, TravelTech, DeepTech, and SportsTech, with each sector represented by a single deal.

City-wise Analysis

The highest number of investments were observed in Bengaluru and Mumbai, with 9 and 7 deals each, accounting for nearly 66.67% of the total deals. This was followed by 2 deals each in Gurugram and Delhi. Additionally, investments were also made in Kochi, Pune, and Ahmedabad.

Undisclosed deals

There were 3 undisclosed deals, with Bengaluru-based FMCG, Adukale, a B2B-modeled SportsTech, CricHeroes, and lastly an AI startup, Flam led by  Indian Cricketer KL Rahul.

Mergers and Acquisitions

The Rural FinTech startup, Jai Kisan acquired the majority shareholding in a registered NBFC, Kushal Finnovation Capital Pvt Ltd, through which the former would be able to design and distribute more credit products to its farmer and business customers.

In a move to enhance its digital transformation services in the banking sector, The Veefin Group of Companies, founded by Gautam Udani and Raja Debnath, acquired a 100% stake in Nityo Tech, the Indian arm of Singapore-based Nityo Infotech. This marked its second acquisition in two months.

In a cash and stock deal, Hospitality giant OYO acquired Paris-based premium rental homes company Checkmyguest for $27.4 Million.

Management Overhaul

As part of its expansion strategy, Lighthouse Canton, a global investment institution announced the appointment of three senior financial industry executives to its senior leadership team across its headquarters in Singapore and London. The three appointments are Amrit Singh, Henrik Aslaksen, and Balaji Prasanna who co-founded AWM Capital Partners.

Indian wellness brand Vahdam India announced the appointment of Akanksha Srivastava Byrnes, a Yale School of Management graduate, as Senior Vice President of Marketing as the company initiated its next phase of expansion.

Additionally, the world’s largest custom manufacturing platform, Bengaluru-based Unicorn Zetwork appointed Vinod Kumar Dasari, former chief executive of Royal Enfield to its Board of Directors.

In a notable exit, San Mateo-based software service firm Freshworks’ chief product officer Srinivasagopalan Ramamurthy resigned from the company. This was the third major exit, that too at a crucial time when the company was trying the minimize its losses.

VC Fund Launched

In the venture capital landscape, 35North Ventures successfully closed its fund at $12 million, focusing on the Indian market through its India Discovery Fund II, as reported by Infomance. Meanwhile, Prudent Equity introduced its Maiden Fund, geared towards growth strategies with a minimum ticket size of INR 50 lakh.

These new launches underscored the continued momentum in the VC sector, with funds targeting diverse opportunities from early-stage consumer brands to mid-market segments, reflecting the sector’s dynamic evolution.