Funding Galore: Flipkart To OYO – Over $5.5 Bn Raised By Indian Startups This Week [July 12-17]

After raising over $1.5 Bn last week, the late stage startups in India have had another massive week when it comes to funding. From Flipkart to OYO, along with funding for Zomato, Ola and Delhivery. This week, Indian startups have raised over $5.5 Bn with Flipkart’s mammoth $3.6 Bn round accounting for the majority of the funding.

Besides Walmart, Singapore-based GIC, Canada Pension Plan Investment Board (CPPIB), SoftBank through the Vision Fund II have also participated in the round, which takes Flipkart’s post-money valuation to $37.6 Bn. Sovereign funds DisruptAD, Qatar Investment Authority, Malaysia’s Khazanah Nasional Berhad have also invested in this round, as well as Chinese tech giant Tencent, Willoughby Capital, Antara Capital, Franklin Templeton and Tiger Global.

Flipkart Group CEO Kalyan Krishnamurthy said the company will focus on accelerating growth for small and medium businesses, including kirana stores. “We will continue to invest in new categories and leverage made-in-India technology to transform consumer experiences and develop a world-class supply chain,” he added.

OYO, with its $600 Mn term loan, will be looking to overcome the massive slowdown in the travel sector. Abhishek Gupta, group chief financial officer, OYO, said “This is a testament to the strength and success of OYO’s products at scale, our strong fundamentals and high-value potential. OYO is well capitalized and on the path of achieving profitability. Our two largest markets have demonstrated profitability at the slightest signs of industry recovery from the COVID-19 pandemic.”

With that, here are the disclosed funding rounds of the week.

Note: The below table consists of disclosed funding rounds only

Startup IPO Roundup

Zomato IPO Oversubscribed

Zomato’s initial public offering (IPO) was oversubscribed by 38.96 times after the final day of bidding, data with stock exchanges showed.  Overall, the INR 9,375 Cr Zomato IPO received 2,751.27 Cr bids for a total issue size of 71.92 Cr equity shares, according to data from the National Stock Exchange (NSE).

The Qualified Institutional Buyers (QIBs) portion of Zomato IPO was oversubscribed the most at 51.79 times the size of the offering. Foreign Institutional Investors (FIIs) led the QIB portion, followed by banks, financial institutions, and mutual funds companies.

On the other hand, the retail individual investors (RII) portion which consist of 10% of the overall IPO offering was oversubscribed by 7.45 times.

Paytm Files DRHP For IPO

Paytm’s parent company One97 Communications has filed its draft red herring prospectus (DRHP) for an initial public offering (IPO) to for raising INR 16,600 Cr. The offer consists of a fresh issue of INR 8,300 Cr and an Offer For Sale (OFS) worth INR 8,300 Cr. The company has 60.59 Cr equity shares outstanding at present and a total of 104 Cr authorised share capital.

The joint global co-ordinators and book running lead managers for the IPO include Morgan Stanley, Goldman Sachs, Axis Capital, ICICI Securities, JP Morgan, Citigroup Global and HDFC Bank. According to the DRHP, founder Vijay Shekhar Sharma owns 14.6% of the company’s pre-offer equity shares. He will continue to be the chairman, managing director and CEO of the fintech giant.