From Leap To Innov8— Indian Startups Raised $196 Mn This Week

The momentum that was evident in the Indian startup ecosystem for the better part of January loosened at the end of the month. With no mega funding rounds materialising in the final week of the month, the fresh capital infusion in the world’s third startup ecosystem shrunk to $195.5 Mn across 24 deals, marking a 29% decline from the $275.2 Mn raised across 28 deals in the preceding week. 

Despite the declining funding numbers, the week was rife with headlines about more potential startup listings, new fund launches and prospects of fresh, unconfirmed funding rounds that materialised. Prominently, ecommerce unicorn Meesho was reported to have  closed another $250-270 Mn in a funding round in a mix of primary and secondary funding. However, the startup neither confirmed or denied the development. 

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Funding Galore: Indian Startup Funding Of The Week [ Jan 27 – Feb 1 ]

Key Startup Funding Highlights Of The Week

• The week’s top sector in terms of investment was edtech on the back of the biggest funding round which saw edtech Leap raise $65 Mn in its Series E round.
• Closely trailing edtech at a sectoral level was enterprise tech with four startups cumulatively raising $57.7 Mn. 
• Deeptech saw a similar number of funding deals materialise in the past week with four startups raising $12 Mn. 
• Eight startups at the seed stage raised $21.8 Mn in the past week. This marked a near 30% dip from the $31.2 Mn raised at this stage last week. 
• Peak XV emerged as the most active weekly investor for the second time this month, backing Leap, Atomicwork and Ambak this week. 

Mergers & Acquisitions This Week

• Logistics unicorn Shadowfax announced the acquisition of critical logistics service provider CriticaLog India to optimise its last-mile delivery capabilities.
• Continuing its acquisition spree, gaming major Nazara-owned NODWIN Gaming acquired esports broadcasting platform StarLadder for an initial consideration of $5.5 Mn.
• Investment platform Dhan parent Raise Financial acquired new-age media startup Filter Coffee to expand its content capabilities, offer data-driven insights and further expand to video and storytelling. 

Fund Launches This Week

• Ex- IIFL Asset Management CEO Prashasta Seth’s venture capitalist (VC) firm Prudent Investment Managers floated a INR 500 Cr fund (about $57.8 Mn) to invest in early stage startups. 
• Trifecta Capital marked the first close of its INR 2,000 Cr Trifecta Venture Debt Fund IV this week. The firm plans to invest in more than 100 startups, with an average ticket size of INR 25 Cr to INR 30 Cr with the fund. 
• Institutional finance firm Veloce Fintech announced the raise INR 140 Cr ($16.22 Mn) for its fund Veloce Opportunities Fund. It plans to offer venture debt and pre-IPO funding to MSMEs with ticket sizes ranging from INR 1 Cr to INR 20 Cr.

Startup IPO Updates Of The Week

• B2B marketplace unicorn OfBusiness converted into a public company this week, rechristening its registered name to OFB Tech Limited from OFB Tech Private Limited.
• Device management startup Servify has roped in three investment bankers for a $400 Mn to $500 Mn IPO that will value it at $1.5 Bn, sources told Inc42. The startup plans to get listed by the first quarter of 2026.
• Eyewear brand Lenskart is said to have roped in Kotak Mahindra Bank and Morgan Stanley for its potential IPO later this year.
• Used car marketplace startup Droom will be filing for an INR 1,000 Cr (about $115 Mn) IPO that will value it in the range of $1.2 Bn to $1.5 Bn by June this year. Sources told Inc42 that it has already finalised two middle market banks for the public issue and it is in active discussions with one more investment banker. 
• Cloud kitchen startup Curefoods is likely to float an $300-$400 Mn IPO in the latter part of the financial year 2025-26 (FY26), reports said.
• In the run up to its IPO, quick commerce major Zepto has shifted its domicile back to Bengaluru from Singapore. 
• Fintech major Pine Labs may file for its much anticipated IPO by the middle of February, reports said. 
• Logistics unicorn Shiprocket’s board passed a resolution to convert the startup into a public company from a private one as it aims to list in the next fiscal year.

Other Developments Of The Week

• Fintech startup Juspay is likely to enter the unicorn club with the raise of $150 Mn in a funding round led by Kedaara Capital.
• Fintech major slice is looking to raise $250 Mn – $300 Mn from a group of financial investors and family offices.
• D2C wellness brand Scentials will soon be announcing the raise of $4 Mn (INR 34.62 Cr) in a mix of debt and equity funding from Indus Way Emerging Market Fund and TIW Private Equity.
• D2C startup P-TAL is in advanced discussions to raise INR 30 Cr (about $3.5 Mn) in its pre-Series A funding round from its existing investors and a new investor, sources told Inc42.
• Listed geotech company MapmyIndia acquired a 9.37% stake in Kanpur-based AI startup SimDaaS Autonomy for about INR 3 Cr.