HSBC’s brokerage arm slashed down the paper valuation of restaurant discovery platform Zomato by 50% to $500 Mn, from the earlier valued $1 Bn. HSBC Securities and Capital Markets in a detailed report, titled ‘India Internet – Lot of Growth but Slim Pickings’ raised concerns surrounding Zomato’s advertisement-heavy business model, growing competition in the food ordering space, and money-losing international operations for the lower valuation.
Venture capital fund IDG Ventures India closed $150 Mn (INR 1000 Cr) India fund for its $200 Mn third fund called IDG Ventures India Fund III. The VC firm plans to write bigger cheques for the startups at mature stage (Series B investments and beyond) and allocate around one-fourth of the fund to later-stage investments.
This week 19 startups raised about $141 Mn in funding altogether (the funding amount is based on the startups that disclosed their funding amounts).
Startups That Raised Funds This Week
Capital Float: Online lending platform Capital Float raised $25 Mn (INR 170 Cr) in a Series B round of funding led by US-based Creation Investments Capital Management along with SAIF Partners, Sequoia Capital and Aspada Ventures. After the latest funding round, the company is valued at over $100 Mn. The startup plans to use the newly raised funds for ramping up its proprietary credit underwriting engine, penetrating newer segments, including travel and driver financing, as well as introducing new product lines.
Unacademy: An online platform for free education, Unacademy, raised $500K in its first round of external investment led by Blume Ventures and angel investors such as Rajan Anandan, Sumit Jain, Aprameya Radhakrishna, Sujeet Kumar, Phanindra Sama among others. The startup will use the funds for product development and scaling the platform for thousands of educators.
Zenify: Home aggregator and rental management startup Zenify raised $900K in Pre-Series A round of funding from High Networth Individuals (HNI). The startup plans to utilise the capital in further expanding its range of services in India and strengthening its team to compliment their capabilities.