Indian Startup Funding Hits A Snag — Only $11 Mn Raised This Week

The first week of August proved to be disastrous for Indian startups in terms of funding raised. Between July 31 and August 5, Indian startups managed to secure a meager $11.5 Mn across nine deals, making it one of the lowest funding amounts raised in a week since 2020. 

This week’s funding is 73% and 89.6% lower than $42 Mn and $111 Mn raised by Indian startups in July last and third week respectively. 

Key Startup Funding Highlights Of The Week

• The biggest funding round was raised by community engagement and hiring startup — Unstop. It raised $5 Mn in a funding round led by Japan-based job board Mynavi.
• With $7 Mn in total funding, enterprise tech sector secured the maximum funding
• Ecommerce, enterprisetech, and fintech recorded two deals each.

Startup Fund Launches This Week

• Bengaluru-based growth venture capital firm Elev8 Venture Partners has announced the first close of Elev8-Capital Fund 1 at $67 Mn. It plans to participate in Series B and Series C funding rounds (typically in the range of $10 Mn to $15 Mn) of startups in sectors such as consumer tech, enterprise software, fintech, and healthtech.
• pi Ventures announced the final close of its second fund with a total commitment of INR 702 Cr ($85 Mn). The fund will invest in startups working in spacetech, biotech, blockchain, and material science, among others.
• Former BharatPe executive Pratekk Agarwaal launched GrowthCap Ventures, a SEBI-registered category II alternative investment fund (AIF) and is now looking to raise INR 50 Cr to invest in early stage startups. 

Startup Acquisitions Of This Week

• Public listed EaseMyTrip will be acquiring 51% stake each in three Indian travel companies – Mumbai-based Guideline Travels Holidays, Jammu & Kashmir-based TripShope Travel Technologies, and New Delhi-headquartered Dook Travels.
• Global investment firm KKR is acquiring a majority stake in Indian pallet pooling platform LEAP India for an undisclosed amount.

Other Major Developments From This Week

• Yudiz Solutions, a blockchain, artificial intelligence and game development company went to public listing on August 4th  to raise INR 44.84 Cr via the IPO.
• Foodtech major Zomato which turned profitable in Q1 of FY24 is allotting INR 2.52 Cr shares as employee stock option plans (ESOPs) to select employees of the company and its subsidiaries.
• The Netherlands-based investment firm Prosus said PayU is selling a part of its business to Israel’s Rapyd for $610 Mn to focus on the Indian market.
• Firstrcry’s logistics arm – Xpressbees is reportedly in talks with the Ontario Teachers’ Pension Plan Board to raise $100 Mn.