From Vastu To Ultraviolette – Indian Startups Raised $250 Mn This Week

Between December 2 and 7, Indian startups cumulatively raised $249.6 Mn across 18 deals, a 72% increase from the $144.8 Mn raised across 14 deals in the previous week

In its investor presentation, Prosus disclosed it infused $100 Mn in NBFC Vastu Housing Finance and $80 Mn in fintech Mintifi in October

Peak XV was the most active investor through the week, backing RaptorX.ai, MasterChow and Enterpret

The last month of 2024 kicked off with a slew of interesting developments for the world’s third largest startup ecosystem. While Ecom Express and Smartworks received markets regulator SEBI’s nod for their initial public offerings (IPOs), fintech Mobikwik filed its red herring prospectus (RHP) within the first week of December.

The Indian startup ecosystem continued to show signs of maturity throughout the week propelled by an uptick in the funding momentum. Between December 2 and 7, startups cumulatively raised $249.6 Mn across 18 deals, marking a 72% surge from the $144.8 Mn raised across 14 deals in the preceding week.

Funding Galore: Indian Startup Funding Of The Week [ Nov 2 – Nov 7 ]

Key Startup Funding Highlights Of The Week

• One of the largest investors in the ecosystem, Prosus, said it infused fresh capital in two fintech startups, Mintifi and Vastu Housing Finance in October.
• Buoyed by large cheques, fintech took the top spot in terms of sector-wise capital infusion this week. Startups in the sector raised $185.4 Mn via four deals announced in the week.
• Peak XV was the most active investor through the week, backing RaptorX.ai, MasterChow and Enterpret.
• Seed funding revived this week with startups at this stage raising $4.9 Mn across five deals. This marked a 63% uptick from the $3 Mn raised by startups at seed stage in the previous week. 

Updates On Indian Startup IPOs

• Fintech startup MobiKwik filed its RHP to raise INR 572 Cr via its IPO. It has fixed a price band of INR 265 to INR 279 for its IPO.
• Omnichannel jewellery startup Bluestone’s board has greenlit its INR 1,000 Cr IPO plans. The IPO is likely to see the startup’s valuation zoom to $1.4-$1.5 Bn.
• Markets regulator SEBI gave its go-ahead to IPOs of logistics startup Ecom Express and coworking space provider Smartworks.
• In its investor presentation, Prosus Ventures said that it sees PayU, Meesho and Bluestone go public in the next 18 months. 

Mergers & Acquisitions This Week

Other Developments Of The Week

• Venture capital firm Abyro Capital launched its maiden $25 Mn fund to back 12 to 15 early stage technology startups in India and the US over the next four years
• Gaming major Nazara announced plans to acquire additional stakes in three of its subsidiaries – NODWIN, Sportskeeda’s parent Absolute Sport, and adtech Datawrkz – and make investments in kids-play centre company Funky Monkeys and edtech Learntube.ai. Later in the week, it infused INR 64 Cr in NODWIN..
• Undergoing a cash crunch, edtech startup Unacademy is likely to get acquired by  Allen Career Institute at a likely valuation of $800 Mn.
• Founder and CEO Bhavish Aggarwal has pledged 4.83 Cr equity shares of Ola Electric to raise debt for his third unicorn, Krutrim.
• CCI has given a go ahead to Japan-based MUFG Bank and US-based KDT Venture Holdings for the acquisition of minority stakes in logistics unicorn Shiprocket.
• Captain Fresh is looking to raise fresh capital in the range of $50-100 Mn in a funding round which is expected to include both primary and secondary components. 
• D2C startup The Indus Valley is looking to raise about $2.7 Mn via its Pre-Series A funding round led by existing investor DSG Consumer Partners.