From Zepto To GradRight — Indian Startups Raised $231 Mn This Week

The startup ecosystem in India has experienced a significant funding resurgence this week, following its lowest weekly funding levels since 2020. 

From August 21 to 26, Indian startups collectively secured $231 Mn across 16 deals, marking a staggering 5,151% increase compared to the previous week’s modest $4.4 Mn raised over seven deals. 

This week also put an end to an 11-month dry spell without a new unicorn, as Zepto secured $200 Mn in a Series E round, becoming the first startup of 2023 to achieve a billion-dollar valuation. We had previously reported that Zepto was on track to enter the exclusive unicorn club last month.

Funding Galore: Indian Startup Funding Of The Week [Aug 21 – Aug 26]

Key Startup Funding Highlights Of The Week

• Quick commerce startup Zepto raised $200 Mn in a Series E round from StepStone Group, Goodwater Capital, making it the biggest fundraise of this week.
• This week, the consumer services sector secured $200 Mn in funding across two deals, making it the most funded sector. 
• Ecommerce emerged as the frontrunner with the highest deal count, securing $13.1 Mn across five deals.
• After recording a low of $1.9 M in seed funding the seed funding rose to $14 Mn.
• This week, Nexus Venture Partners was the busiest investor as it participated in two deals. 

Other Major Developments From This Week

• Tata-owned watchmaking giant Titan acquired an additional 27.18% stake in omnichannel jewellery startup CaratLane for a sum of INR 4,621 Cr, thus valuing the startup at around $2 Bn. This acquisition will result in Caratlane employees receiving INR 340 Cr to INR 380 Cr from ESOP buyback.
• Bengaluru-based early stage VC – Veda VC announced the first close of its INR 250 Cr fund led by family offices and startup CXOs. It will invest in technology and tech-enabled startups.
• Japan’s SoftBank has sold INR 435 Cr worth of its stakes in FirstCry to Manipal Group’s Ranjan Pai’s MEMG Family Office, Marico’s Harsh Mariwala’s investment office Sharrp Ventures and the DSP family office of Hemendra Kothari. 
• Westbridge Capital picked majority stake in digital investment platform FundsIndia for an undisclosed amount.
• According to media reports, PharmEasy is raising INR 3,500 Cr through a rights issue to repay a large portion of its debt to Goldman Sachs.
• Qatar Investment Authority is investing INR 8,278 Cr ($1 Bn) into Reliance Retail Ventures Limited (RRVL) for 0.99% stake.
• Ahead of IPO, Mamaearth is raising about $120 Mn – $150 Mn in a new funding round at a valuation of $1.5 Bn. The unicorn is in talks with SoftBank, Singapore’s GIC, Qatar Investment Authority, and Fidelity Investments for this fundraise.

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