The Indian startup ecosystem, the third largest in the world, witnessed a significant dip in funding activity for the second consecutive week in May. Between May 13 and 18, Indian startups raised a total of $121.8 million across 21 deals, a 45% drop compared to last week’s $220.2 million.
Weekly Funding Highlights: Propelld Leads the Pack
Fintech startup Propelld emerged as the top fund-raiser, securing a hefty $25 million. Fintech dominated the funding landscape, with startups in the sector raising a total of $33.1 million across three deals, the highest at a sectoral level. Gruhas Proptech and Venture Highway were the most active investors, backing two startups each.
Seed funding continued to struggle, with startups at this stage securing only $3.5 million, a steep 58% decline from the previous week’s $8.4 million.
Key IPO Updates
- TBO Tek: The B2B travel portal made a spectacular debut on the stock market, listing at INR 1,426 on the NSE, a 55% premium over its issue price of INR 920. On the BSE, it listed at INR 1,380, a 50% premium.
- Zappfresh: The D2C meat delivery startup has transitioned to a public company, setting the stage for its initial public offering (IPO).
- Digit Insurance: The insurtech unicorn’s IPO was oversubscribed 9.6 times, with 50.76 crore bids against 5.28 crore shares. The IPO includes a fresh issue of shares worth INR 1,125 crore and an offer for sale (OFS) of 5.47 crore shares.
- Flipkart: Walmart is contemplating the right timing for Flipkart’s IPO, driven by the company’s positive EBITDA growth over the last two quarters.
Major Developments of the Week
- Amazon: The US-based ecommerce giant invested $199 million in its Indian arm, Amazon Seller Services Pvt Ltd.
- 9Unicorns Rebranding: The early-stage VC fund has rebranded to 100Unicorns, launching a second fund with a $200 million corpus and a $100 million green shoe option.
- Battery Smart: The battery-swapping startup is raising $45 million in a Series B round, with participation from Acacia Inclusion, MUFG Bank, and Blume Ventures.
- KKR and InCred: KKR is divesting a 10% stake in InCred to Japan’s Mizuho Financial Group, potentially boosting the fintech startup’s valuation by 30-40% from its last valuation of $1.2 billion.
- Orbod and Niyogin Fintech: Orbod is selling its AI platform SuperScan to Niyogin Fintech Ltd, following board approval.
- Apax Partners: The London-based PE firm is eyeing investments in Indian pharmaceuticals, consumer markets, and consumer derivatives, with a dedicated India-focused team.
- BizDateUp and Duro Green: BizDateUp Technologies has acquired a 20% stake in waste management startup Duro Green.
- SoftBank: The Japanese conglomerate is exploring investments in Indian data centers and industrial robotics to strengthen its AI portfolio.
Conclusion
Despite a downturn in funding, the Indian startup ecosystem continues to attract significant investments and witness crucial IPO activities. With leading startups like Propelld driving the fintech sector and major developments across various industries, the landscape remains dynamic and poised for future growth.
