Funding and acquisitions in Indian startups this week [July 06

This week, 19 Indian startups raised nearly $271 million across 6 growth-stage and 13 early-stage deals including one undisclosed deal. The week also witnessed three acquisitions, 13 key leadership appointments, two departures, two fund launches, and one shutdown.

In contrast, 18 startups had collectively secured about $70.4 million in the previous week.

[Growth-stage deals]

Growth-stage startups raised a total of $208. 2 million across six deals this week, led by AI software creation platform Emergent’s unicorn round of $130 million. 

Fintech startup Neo Group raised $36.3 million in a Series C round from Peak XV Partners, while consumer services provider Quick Clean secured $14 million in Series B round led by Stakeboat Capital.

[Early-stage deals]

Early-stage startups raised $62.5 million across 13 deals this week, led by AI startup Vorflux, which secured $15 million in a Seed round led by Y Combinator, Peak XV Partners, Powerset, and Alliance.

Among the other notable deals, AI startup Rev.Dev raised Rs 11.3 million in a Series A round led by Elevation Capital and others. Mobility firm E3 Electric AI secured $10.5 million in a Series A round led by BluVenture Holdings, while healthtech startup Circle Health raised $6 million in a Series A round from APT Research, Momentum Capital and others.

[City and segment-wise deals]

Bengaluru continued to lead the funding charts with 12 startup deals during the week, followed by Delhi-NCR with three deals. Mumbai, Ahmedabad, Pune and Lucknow bagged a deal each.

Segment-wise, AI startups led the week with six deals followed by fintech, e-commerce, biotech with two deals each. Meanwhile, mobility, consumer services, manufacturing, agritech, edtech, and others also recorded funding activity during the period.

[Series-wise deals]

Seed rounds led the week with 7 deals, followed by three Series A and Series B deals. Pre-Series A, Series C, pre-Series B, and Bridge rounds also witnessed activity during the week.

[Week-on-week funding trend]

On a weekly basis, startup funding inclined 95% to $271 million, compared to around $70. 4 million raised during the previous week.

The average funding over the last eight weeks stands at around $325 million, with an average of 20 deals per week.

[Key hirings]

The week also saw 13 key hirings. Scripbox has elevated Mohankumar Swaminathan as chief product officer. Dailoq has appointed Sonali Kulkarni as partner, while Honasa Consumer has elevated Shivang Jain as its CEO of BTM Ventures.

[Mergers & Acquisitions]

The week also witnessed three acquisitions. Proptech firm Aurum PropTech set to acquire Housing.com for 46.3 million. Edtech platform PhysicsWallah acquired Sarrthi IAS, while Recode Studios has acquired Aflairza. 

[Fund Launches]

Venture capital firm Elevation announced the fund at $500 million and Aurrewvia has launched a fund worth $10 million. 

[Shutdown]

Bengaluru-based professional networking platform Medial has shut down operations, founder and CEO Niket Raj Dwivedi announced in a LinkedIn post.

[New launches and partnerships]

▪️Digit Life launches customizable guaranteed and index-linked annuity plans 

▪️Swiggy’s Instamart launches LPG cylinder delivery in partnership with HPCL

▪️NABARD and NSDC launch Gramodyam to support rural entrepreneurship

▪️Kissht enters mutual fund distribution business with AMFI registration

[News flash this week]

▪️Ather raises Rs 1,200 Cr from Hero MotoCorp, India-Japan Fund and promoters

▪️After SoftBank and ADIA, Temasek sells 2.05% stake in Lenskart for Rs 1,940 Cr

▪️Govt plans common rules for usernames across messaging apps: Report

▪️Udaan announces $160 Mn structured financing to strengthen balance sheet

[Summary]

On a weekly basis, startup funding declined 87% to $137 million, compared to around $1.1  billion raised during the previous week.

B2B ecommerce platform Udaan has secured a structured financing deal worth around $160 million, comprising fresh equity, debt, and debt-to-equity conversion. The transaction includes fresh capital from existing shareholders and a new investor, partial conversion of outstanding convertible bonds into equity, and an extension of the remaining bonds under revised terms as the company strengthens its balance sheet ahead of its long-term public market plans.

Go Digit Life Insurance has entered the retirement segment with the launch of the Digit Life Pension Plan, offering two annuity variants: Digit Sukoon, which provides fully guaranteed income, and Digit Boss, which combines guaranteed and Nifty 50-linked variable annuity payouts. Available for individual and group customers, the plan offers lifetime income along with flexible options on annuity type, premium payment, payout frequency, deferment period, and single or joint life coverage, allowing customers to tailor retirement solutions to their needs.

Electric two-wheeler maker Ather Energy has approved a preferential issue worth Rs 1,200 crore, with existing investor Hero MotoCorp committing nearly Rs 960 crore and the India-Japan Fund (IJF) investing Rs 200 crore.

Temasek-backed MacRitchie Investments sold a 2.05% stake in Lenskart for Rs 1,940 crore ($204 million), reducing its direct holding to 2.21% from 4.26%. Following the transaction, Temasek’s aggregate stake in the eyewear retailer, including affiliated entities, declined to 4.75% from 6.80%.

The Centre is considering a common regulatory framework for usernames across messaging platforms such as WhatsApp, Telegram and Signal amid concerns over impersonation, phishing, financial fraud and “digital arrest” scams, according to a report by The Economic Times. The move follows the government’s request to WhatsApp to pause the rollout of its username feature, with MeitY reportedly discussing a uniform set of rules with major messaging platforms.