After a significant spike in funding last week, investment activity in the Indian startup ecosystem has slowed. Between June 24 and 29, startups raised a total of $196.47 million across 17 deals, reflecting a 75% drop from the previous week’s $800.5 million across 21 deals.
However, this comparison is somewhat misleading. Last week, quick commerce unicorn Zepto alone secured $665 million, accounting for most of the total. Excluding Zepto’s mega-deal, the rest of the ecosystem saw $135.5 million in funding, making this week’s $196.47 million seem less of a drastic decline.
Key Highlights of the Week
- Largest Funding Round:
- NBFC Northern Arc secured $75 million in debt funding from FMO, highlighting the fintech sector’s attractiveness. In total, fintech startups raised $77.4 million across three deals this week.
- Ecommerce Sector Activity:
- Ecommerce startups led in deal numbers, raising $48.3 million through five deals.
- Seed Funding Dip:
- Seed funding saw a sharp decline of 69%, with only $6.9 million raised compared to last week’s $22.7 million.
Major Developments
- Ather Energy’s IPO Plans:
- Electric two-wheeler manufacturer Ather Energy is gearing up for a public market debut, transitioning from a private to a public company, as revealed in its regulatory filings.
- Zepto’s New Funding Round:
- Following its recent $665 million raise, Zepto is in talks to secure an additional $400 million, potentially boosting its valuation to $4.6 billion, up from $3.6 billion.
- Finnest’s Major Investment:
- UK-based PE firm Finnest invested $160 million to acquire a majority stake in cloud kitchen startup Kitchens@, aiming to expand its business operations.
- Rupeek’s Down Round:
- Gold loan provider Rupeek is close to raising $24 million in a funding round expected to mix primary and secondary transactions at a valuation of $250 million, a significant 60% cut.
- Amazon’s Investment in Amazon Pay India:
- Amazon has infused $72 million into its Indian fintech arm, Amazon Pay India, to bolster its financial services offerings.
- NODWIN’s Acquisition:
- Gaming company NODWIN, owned by Nazara, completed the acquisition of marketing services firm Freaks 4U Gaming GmbH in a deal valued at up to INR 271 crore.
- upGrad’s Debt Raise:
- Edtech unicorn upGrad is set to raise $34.4 million through the allotment of NCDs and OCDs to EvolutionX Debt Capital, aiming to fund growth and operating expenses.
- What are your thoughts on the recent trends in startup funding?
- How do you see the fintech sector evolving in the coming months?
- Which of these startups do you believe has the most potential for growth?
- What do you think about Zepto’s rapid valuation increase and new funding round?
- Share your insights on the challenges and opportunities for Indian startups in the current economic climate.
