Funding Galore: Indian Startup Funding Of The Week [11-16 Feb]

We bring to you the latest edition of Funding Galore: Indian Startup Funding Of The Week!

One of the biggest fundings this week was raised by OYO. The company raised $100 Mn from China’s ride-hailing company Didi Chuxing at a $5 Bn valuation. With this, OYO also closed its $1 Bn funding round, wherein Softbank Vision Fund ($800 Mn) and Singapore-based Grab ($100 Mn) have invested.

Apart from this, some of India’s startup ecosystem’s prominent investors such as Flipkart cofounder Binny Bansal, Udaan cofounder Sujeet Kumar, Flipkart Group CEO Kalyan Krishnamurthy and Facebook’s Asia Pacific head Dan Neary invested in Singapore-based Tanglin Venture Partners.

In all, six startups raised $121.4 Mn funding and two startup acquisitions took place in the Indian startup ecosystem altogether. (This funding report is based on startups that disclosed funding amount.)

Indian Startup Fundings Of The Week

Smallcase: Investment tech startup Smallcase raised $8 Mn Series A funding led by Sequoia India, with participation from existing investors — Blume Ventures, Straddle Capital, Beenext Pte Ltd, WEH Ventures and DSP Adiko. The funds will be used to further increase the user base and increase the reach of the people.

Open App: Bengaluru-based smart lock maker, Open Appliances also known as Open App raised $1.3 Mn (INR 9.2 Cr) in its pre-Series A funding round from Unicorn India Ventures and Karnataka Semiconductor Venture Capital Fund (KARSEMVEN). Existing investors including Axilor Capital and Kumar Vembu, cofounder of Zoho had also participated in the round. The fresh funding will be used for developing its core software access platform. It is also looking to launch two new smart devices by the end of 2019.

Open: Bengaluru-based neo-banking fintech startup Open raised $5 Mn in a Series A funding round led by Beenext, Speedinvest and 3one4 Capital. Existing investors Unicorn India Ventures and Recruit Co Ltd also participated in this funding round. The startup funding will be used to increase team headcount and launch new products to accelerate customer acquisition and growth.

Fyle: Bengaluru-based Fyle raised $4 Mn (INR 29 Cr) in its Series A funding round from Tiger Global and its existing investors BeeNext and Pravega Ventures. The raised funds will be utilised for expanding its business.

Dunzo: Bengaluru artificial intelligence (AI)-driven hyperlocal concierge app Dunzo raised $3.1 Mn (INR 22.49 Cr) in a Series C funding round via cumulative convertible preference shares (CCPS) issued to Milestone Trusteeship Services, N Lakshmi Narayanan, Monika Garware Modi, and Raintree Family. The startup plans on investing on brand marketing along with setting up of infrastructure and for routine operations.

Indian Startup Acquisitions Of The Week

• Bengaluru-based B2B enterprise application for small retailers, ShopX, made its first acquisition of a mobile phone retail brand, Gabbardeals, as part of its plan to expand its chain of omnichannel retailers. The deal amount remains undisclosed.
• Ebix Software India, a software arm of on-demand software and ecommerce services provider — Ebix Inc — has acquired 80% stake in Delhi-based on-demand SaaS technology solution provider for travel, Zillious Solutions Private Ltd. While the deal size was undisclosed, the acquisition would be immediately accretive, Ebix said.

Other Developments Of The Week

• Global alternative asset company TPG announced the final close of its Asian focused private equity fund, TPG Capital Asia VII fund, after raising  $4.6 Bn (INR 32,738 Cr) in commitments.
• Indian startups are currently making a successful entry into the European market through Estonia and is now home to nearly 286 Indian companies which have setup base in Estonia through its e-Residency programme. Mukesh Ambani-owned Reliance Industries had also participated in the programme and has set up a research centre for Jio in the country.
• The Maharashtra State Innovation Society (MSInS) organised the Maharashtra Startup Week to support the startup ecosystem in the state and gives a platform for budding entrepreneurs to grow by showcasing their innovative solutions to the Government of Maharashtra.
• PhonePe is speculated to raise fresh funds from private equity (PE) firms KKR & Co, General Atlantic LLC, Tiger Global and Tencent. With this, the company is looking for a nearly 10x growth in its valuation.
• Ola was said to be in talks to raise funding from Mirae Asset-Naver Asia Growth Investment, a fund which was jointly launched by Korea-based Mirae Financial Group and internet company Naver. Citing sources, a report said that Ola has already signed a term sheet with the investment fund. This investment deal may be a part of the company’s ongoing Series J funding round where it is expected to raise $1 Bn.
• Bengaluru-headquartered food processing company Britannia is now looking to set up a separate entity and team over the next six months to invest in Indian startups across categories and platforms. The company will consider looking at infusing small investments in startups across platforms as the details are being worked out.

Stay tuned for the next week edition of Funding Galore: Indian Startup Funding Of The Week!

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