This week, early and growth-stage venture capital firm Accel Partners reportedly sold a small amount of its stake in ecommerce giant Flipkart to Qatar Investment Authority for $100 Mn (about INR 650 Cr.). Flipkart is currently valued at around $15 Bn. Accel is still the second-largest shareholder in the ecommerce platform after Tiger Global Management.
This week, 15 startups raised about $37 Mn in funding altogether. (The funding amount is based on the startups that disclosed their funding amounts).
Startups That Raised Funds This Week
Doctor Insta: Telemedicine platform oriented startup Doctor Insta raised $500 K in Pre-Series A round of funding from angel investor Rishi Parti and BrahmaX Ventures. The startup will use the raised funds for research and deployment of the product. It also plans to raise about $1-$2 Mn more to expand its team, and to spend in marketing and promotional activities.
Cityfurnish: An on-demand furniture rental platform, CityFurnish, raised an undisclosed amount of seed funding from Citrus Pay founder Jitendra Gupta. The funds will be utilised to strengthen its core team, improve product management and order fulfilment.
Black White Orange: Brand licensing startup Black White Orange raised about $300K (INR 2 Cr.) in a funding from Collaborative Licensing Ventures LLP. The startup will utilise the funds to build its team.
Canvera: Online photography startup Canvera Digital Technologies raised $2.2 Mn (INR 15 Cr.) in a funding round from existing investor Info Edge (India) Ltd. With this, Info Edge now holds 49% stock of the company on a fully converted and diluted basis. The investment was made in the startup at a pre-money valuation of INR 75 Cr.
Mech Mocha: Mobile gaming startup Mech Mocha raised an undisclosed amount of funding from Blume Ventures and Flipkart. The funds will be utilised to scale its team, and develop a back-end platform that includes social and payment solutions for their games.
Mobiefit: Mobile fitness startup MobieFit grabbed $1 Mn (INR 6.63 Cr) from Medi Assist India. With this partnership, the company aims to offer mFitness to more than 5 Mn corporate employees in urban India.
LafaLafa: Mobile-first coupons and cashback app, LafaLafe, raised an undisclosed amount of seed funding from Vectr Ventures. The raised capital will be used to strengthen company’s back-end technology and expand within Asia.
Shotang: Online B2B marketplace Shotang raised about $5 Mn (INR 33 Cr.) in a funding round led by Exfinity Venture Partners and Unitus Impact. The raised capital will be used in building company’s technology team and strengthening its operations.
Arya.ai: Artificial intelligence (AI) startup Arya.ai raised $750 K Pre-Series A round from YourNest Angel Fund and VentureNursery members. The startup will use the funds to accelerate product development and grow the AI ecosystem.
Latestone: Online store for tech accessories, LatestOne.com, raised an additional funding of $3 Mn (INR 20 Cr) from its existing investor and parent company Palred Technologies Limited (PTL). The company plans to utilise the raised funds in ramping up operations, establish its third warehouse in Mumbai and to expand revenue base.
Rentongo: Online marketplace for renting bikes, electronics and appliances startup, RentOnGo, raised an undisclosed amount in angel funding from angel investors Anand Chandrasekaran, Rajesh Sawhney, Shiva Pare and Kalpana Tatarvati. The startup plans to use the capital to enter new cities and focus in expanding the bike rentals category by garnering more supply and providing value-added services to customers.
Shuttl: On-demand bus aggregation platform, Shuttl, raised $20 Mn (INR 135 Cr) in a Series A round led by Lightspeed Ventures along with participation from Times Internet and Sequoia Capital. The company will use the proceeds to strengthen its technology and expand to newer geographies.
IndustryBuying: a B2B online marketplace for industrial material Industrybuying.com raised an undisclosed amount of funding from Murugappa and TVS Families. The investment is part of the Series B round which the company had raised in September this year. The raised capital will be used for development of the platform, increase its nationwide sales force and vendor base as well as develop a full suite of digital offerings for B2B brands.
Peppertap: On-demand grocery delivery startup PepperTap closed its Series B round of funding with additional $4 Mn from Innoven Capital. This funding was in addition to the $36 Mn Series B round raised recently from Snapdeal, Sequoia India, SAIF Partners, Ru-Net, Beenext & JAFCO Asia.
Planet GoGo: A startup that offers personalised content on the mobile lock screen, Planet GoGo, raised an undisclosed amount of seed funding from HT Media and North Base Media (NBM). The company will use the raised capital for user growth and traction.
With this, logistics firm Delhivery plans to raise around $150 Mn (INR 1000 Cr) valuing it at $700 Mn (INR 4,500 Cr). The company is reportedly in talks with investors in Yuri Milner’s DST Global, Flipkart and Ola, along with Singapore’s GIC and China’s Hillhouse Capital.
Acquisitions That Took Place This Week
- On-demand home cleaning & laundry startup SBricks acquired Melway for an undisclosed amount. Melway is an established facility management and hands-on services company. The acquisition is aimed at bringing 200 home cleaning professionals from Melway along with brand equity and clientele portfolio.
- Yet to be launched digital content platform, Arre acquired Apalya Technologies, an on-demand video content delivery startup, in an all-cash deal. The deal transaction was estimated to be between INR 20 Cr to INR 25 Cr. With this, Apalya’s existing investors, IDG ventures, Cisco, Kalaari Capital, Qualcomm and other angel investors will take an exit.
- Counselling & education services firm Careers360 acquired Entrancecorner.com in an all cash deal. Entrancecorner.com acquisition will help Careers360 expand its reach and deliver better value to all stakeholders.
- On-demand grocery delivery startup PepperTap acquired Jiffstore for an undisclosed amount in a cash and stock deal. The move will help PepperTap to tap into Jiffstore’s talent pool and rely on it for technical prowess.
- Girnar Software acqui-hired Drishya360s, a premier augmented reality and video production startup in a cash-plus-stock deal. The acquisition will bolster virtual reality offerings for Girnar.
- Job credentialing platform Aspiring Minds acquired Letsintern, online and mobile internship platform, for an undisclosed amount in an all cash deal. The acquisition is part of Aspiring Minds’ multi-million dollar investment plan in the internship space. The startup aims to help students get the right job in the labor market by merit as they believe an internship is an integral part of the talent identification and improvement process.
Other Developments Of The Week
- BSE has formed an advisory group to fast-track alternate fund-raising platform for startups, BSE Hi-Tech.The platform will be based on the new institutional trading platform norms announced by regulator SEBI in August 2015. BSE will be advised by a 13-panel group on the framework on BSE Hi-Tech.
- Matrimony.com and anti-virus software maker, Quick Heal Technologies, have received the approval of market regulator SEBI to launch their initial public offers (IPOs), and could raise about INR 1000 Cr.
- Cyanogen has revealed its plans to tap the growing smartphone market in India. The company is also evaluating possibilities to invest in or acquire startups in the country to strengthen its product offerings.
- Applyifi partnered with Educomp Solutions Ltd., an education company, to launch India’s first EdTech-specific funding forum. With both the companies coming together, the Applyifi-Educomp EdTech Funding Forum will provide a platform to identify and support India’s next big EdTech startups, by providing funding, mentoring and unparalleled market access.
- Startup accelerator Spark10 has launched its operations at the campus of Engineering Staff College of India (ESCI), Gachibowli – Hitech City Corridor of Hyderabad. The accelerator has invited applications from startups with a minimum viable product in the domains of IOT (Internet of Things), mobile, internet, smart technologies, analytics, machine learning etc. It will provide seed funding support for each of the 10 selected startups.
- SIDBI cleared $140 Mn (INR 930 Cr) from the $302 Mn (INR 2,000 Cr) fund-of-funds to catalyse equity investment into startups and MSMEs. The IAF has screened 30 venture capital funds since its launch and has already issued sanction letters to more than half of them.
- In a bid to make the environment more conducive for startups, the Government is considering proposals submitted by the ministry of communications and information technology on tax exemptions on stock options given to employees by startups, on capital gains that are invested in new ventures and those made from investing in new firms.