From Udaan To The Whole Truth — Indian Startups Raised $153 Mn This Week

Adding on to the volatility that private funding trends have been witnessing in recent months, investment activity in the world’s third largest startup ecosystem dipped this week. Between February 17 and 22, Indian startups raised $152.9 Mn across 17 deals, a 43% decline from $270.2 Mn raised across 22 deals in the preceding week. 

While funding trends declined this week, pertinent developments like prominent startups disclosing their public listing plans and multiple startup acquisitions over the week drove optimism across the ecosystem. 

Funding Galore: Indian Startup Funding Of The Week [ Feb 17 – Feb 22 ]

Key Startup Funding Highlights Of The Week

• Ecommerce toppled fintech this week to emerge as the investor favourite startup sector this week. Six ecommerce startups, including Udaan, The Whole Truth, raised $109.9 Mn over the past week. 
• LetsVenture emerged as the most active investor this week, leading The Energy Company’s Pre-Series A funding round and partaking in NOTO’s $1.7 Mn funding round. 
• Four startups at the seed stage raised $15.1 Mn this week, marking a 39% week on week increase of investments in startups at this level.

Startup IPO Updates Of The Week

• Bidding to become the third fintech major emerging from the Indian startup ecosystem, PhonePe announced that it has started preparation for a listing on the Indian bourses. 
• Online meat delivery startup Licious is eyeing a public listing next year after attaining profitability. The startup is planning for an IPO that values it at $2 Bn, a 33% jump from its last private valuation of $1.5 Bn.
• Shortly after roping in bankers like Kotak Mahindra Bank and Morgan Stanley for its much awaited IPO, Lenskart is now eyeing to file its DRHP by May. The startup is eyeing a valuation of $10 Bn for the offer, which is double its last private valuation. 
• Eyeing a public listing in the second half of FY26, Sachin Bansal’s fintech startup Navi has initiated discussions with merchant bankers to finalise the valuation, timeline for the offering. 
• About three years after dropping its IPO ambitions, boAt is now looking to file for an IPO to raise INR 2,000 Cr in FY26. It is planning to file its DRHP for the IPO soon and is likely to take the confidential filing route.

Mergers & Acquisitions This Week

• Real money gaming startup A23 parent Head Digital Works Private Limited (HDW) acquired Adda52’s holding company Deltatech Gaming Limited (DGL) for INR 491 Cr.
• Shortly after selling the feminine hygiene brand Sirona to Good Glamm Group for INR 450 Cr, its cofounders Deep Bajaj and Mohit Bajaj have bought back the feminine hygiene brand.
• Workforce skilling platform NextLeap acquired PM School, a product management education provider, via an undisclosed deal. 
• Good Glamm Group sold its digital media unit ScoopWhoop to marketing firm Wubba Lubba Dub Dub (WLDD), a source close to the matter confirmed Inc42.
• Visa processing platform Atlys acquired visa service company Artionis’ UK subsidiary in an all-cash deal to expand overseas.
• InCred acquired Dubai-based Arrow Capital (DIFC) Limited to expand its operations in the Middle East and Africa regions.

Other Developments Of The Week

• POP is eyeing the raise of $10-15 Mn from payments giant Razorpay. It is also open to an acquisition if deal terms materialise.
• Listed dronetech company ideaForge invested $1.8 Mn in California-based UAV manufacturing company Vantage Robotics via compulsorily convertible promissory note.
• IN-SPACe rolled out its Technology Adoption Fund (TAF) worth INR 500 Cr to back spacetech startups and enable them to build commercially viable products while reducing dependence on imported solutions.