From PharmEasy To Portea — Indian Startups Raised $316 Mn This Week

After a significant drop in the capital raised by Indian startups in the last week of April, funding picked up in the world’s third-largest startup ecosystem in the first week of May. Between April 29 and May 4, Indian startups cumulatively raised $316.4 Mn across 23 deals, up 83.3% from last week’s $172.6 Mn secured across 21 deals.

Funding Galore: Indian Startup Funding Of The Week [Apr 29 – May 4]

RECOMMENDED FOR yOU

News

GST Council Hikes GST On EV Resale By Businesses

Lokesh C.

21st December, 2024

News

Vedantu’s FY24 Loss Falls 58% To INR 158 Cr

Akshit P.

21st December, 2024

News

Delhi HC Asks SFIO To Continue Probe Against Hero Electric

Palak S.

21st December, 2024

Key Startup Funding Highlights Of The Week

• Digital pharmacy PharmEasy bagged $216.2 Mn as part of its rights issue at a 90% valuation cut compared to its peak valuation of $5.6 Bn in October 2021. This was the lone mega deal for the week as well as the biggest cheque secured by a startup.
• Buoyed by PharmEasy’s mega funding, healthtech knocked off fintech to become the most funded sector this week. Healthtech startups raised $236.2 Mn across three deals this week. 
• Ecommerce maintained its streak of securing the most number of deals. Startups in the space netted $8.2 Mn across five deals this week. 
• Z21 Ventures and JITO Incubation and Innovation Foundation (JIIF) were the most active investors for the week, backing two startups apiece.
• Despite the positive upturn in the funding trends overall, seed funding dropped significantly this week. Startups at this stage were able to bag only $12.3 Mn this week, down 64% from last week’s $33.9 Mn.

Startup Acquisitions This Week

• Momspresso founders Vishal Gupta and Prashant Sinha’s new venture Pravis has picked up a stake in adtech gaming platform StreamO. The growth marketing firm will leverage StreamO’s 300 Mn subscribers to target GenZ communities.
• Non-banking finance company (NBFC) UGRO Capital has initiated the acquisition process of  lending tech startup MyShubhLife in a mix of equity (64%) and cash (36%) at an enterprise value of INR 45 Cr.
• SaaS major Freshworks announced the acquisition of Delaware Corporation’s Device42 for $230 Mn. The purchase price would be paid in the form of $215 Mn of cash and an equity rollover of $15 Mn. 
• Chennai-based SaaS metering and pricing platform Togai is in the process of getting acquired by California-based Zuora. The subscription management software company is looking to enhance its monetisation with the Togai’s acquisition
• PB Fintech, the parent company of insurtech platform Policybazaar, is set to acquire 100% stake in UAE-based Genesis Group. It will also be divesting stakes in two subsidiaries, Visit Health Private Limited and Visit Internet Services Private Limited 

Other Major Developments Of The Week

• BharatPe’s ex-COO Druv Dhanraj Bahl has rolled out his maiden venture capital (VC) fund, Eternal Capital, with a target corpus of $14.3 Mn. The fund is looking to back 40 early stage startups over the next three years.
• Venture debt firm Stride Ventures announced the final closure of its Stride Ventures India Fund III at $165 Mn. The firm will look to back startups across consumer brands, financial services and cleantech sectors
• VC firm IvyCap Ventures marked the final close of its third fund at $251 Mn. The fund will invest in 25 startups with an average ticket size of INR 30-50 Cr. 
• Tribe Capital is looking to invest $75 Mn in Shiprocket through its newly-launched special purpose vehicle (SPV). The transaction is expected to be completed in a few weeks. 
• Digital consulting company Brillio is looking to expand its India footprint with an investment of $240 Mn over the next five years.
• Investment firm Oister Global has floated an INR 440 Cr fund, Oister India Pinnacle Fund (OIPF), to fuel emerging technology-led innovations and various sunrise sectors in the country. 
• Thyrocare founder Arokiaswamy Velumani has joined hands with Young Entrepreneurs Association (YEA) and Magnifiq Capital Trust to invest up to INR 50 Cr in Indian startups. 
• Healthtech unicorn Innovaccer is in talks with health major Kaiser Permanente to raise a funding in the range of $200 Mn-$250 Mn in a mix of primary and secondary funding. 
• Anthill Ventures is looking to launch a hybrid fund targeting consumer experiences, wellness and entertainment startups. It will raise $100 Mn for a hybrid private credit and equity fund.
• UGRO Capital’s board approved raising INR 1,332.66 Cr through compulsorily convertible debentures (CCDs) and warrants. 
• Gold loan startup Rupeek has initiated funding discussions with Claypond Capital and Axis Bank. The startup is looking to raise an undisclosed amount of funding at a substantially reduced valuation of $200-$250 Mn from its 2022 valuation of $600 Mn. 
• Private equity (PE) firm ChrysCapital closed its $700 Mn ‘Continuation Fund’. The fund was anchored by US-based HarbourVest Partners and European funds LGT Capital Partners and Pantheon Ventures.