SUMMARY

Indian startups cumulatively raised $172.6 Mn across 21 deals between April 22-27

Fintech took the leader spot this week with startups in the sector cumulatively raising $88.5 Mn via 3 deals

Seed funding picked up this week to $33.9 Mn, a 29% increase from last week’s $26.2 Mn

After two weeks of decent investment activity across the Indian startup ecosystem, funding remained muted between April 22 and 27. During the week, startups cumulatively raised $172.6 Mn across 21 deals, down 33% from last week’s $260.1 Mn secured across 31 deals. 

Funding Galore: Indian Startup Funding Of The Week [April 22 – April 27]

Key Startup Funding Highlights Of The Week

• IPO-bound non-banking lender Northern Arc secured $80 Mn from International Finance Corporation (IFC) in equal halves of equity and debt components on April 25, marking the largest fundraise of the week.
• Buoyed by Northern Arc’s funding, the fintech sector maintained its dominance over funding trends at a sectoral level. Startups in the space snagged $88.5 Mn via 3 deals, up 18% from last week’s $74.8 Mn secured across 5 deals. 
• Ecommerce topped the highest deal chart this week, with startups in the sector raising $29.8 Mn across 5 deals. 
• The week also saw Blue Ashva Capital, Titan Capital, Venture Catalysts, and  Cred’s Kunal Shah clinching the active investors tag with each backing two startups. 
• Seed funding continued its ascent with early stage startups securing $33.9 Mn this week. This is a 29% surge from last week’s $26.2 Mn. 

IPO Updates From The Week

Other Major Developments Of The Week

• Capria Ventures announced the final close of its India Opportunity Fund at INR 153 Cr. This follows Capria’s full-cash exit from HR tech platform Awign, with a return of more than 50%. With this, Japanese Mynavi Corporation has picked up a majority stake in Awign.
• Global investment firm Lighthouse Canton launched a new fund, LC GenInnov Global Innovation Fund, to focus on investments in global GenAI companies.
• After a six-year-long stint, Peak XV Partner’s managing director Piyush Gupta is set to part ways with the VC by the end of April. Moving further, he is in the process of setting up a secondary-focused fund. 
• Australia’s Macquarie Group’s investment arm, Macquarie Asset Management, is looking to invest $1.5 Bn into India’s EV space via its recently unveiled platform Vertelo.
• EV maker Ather Energy is eyeing a $90 Mn funding round via a combination of primary and secondary share sales at a unicorn valuation. Meanwhile, existing investor Flipkart’s Sachin Bansal has divested some of his stake to Zerodha’s Nikhil Kamath. 
• Saudi Aramco’s venture capital arm is building a team in India to back early-stage startups in the country. Further, Aramco’s subsidiary Prosperity7 Ventures is in discussions to rope in a leader for its India operations.
• Investment firm Kedaara Capital has marked the final close of its fourth fund, Kedaara IV, at $1.7 Bn. With this, it has raised the country’s largest PE Fund, surpassing Chrys Cap’s $1.3 Bn Fund IX raised in 2023.
• Singapore-based investment firm Temasek and US-based Fidelity are in final discussions to invest around $200 Mn in Lenskart through a secondary share sale at a valuation of $5 Bn. 
• Former BharatPe CEO Suhail Sameer-backed OTP Ventures is planning to mark the first close of its debut fund at INR 400 Cr by June. The fund will be investing in consumer, consumer tech and fintech startups.
• VC fund Norwest Venture Partners announced the close of its 17th fund, NVP 17, at $3 Bn. With the fund, it will invest in enterprise tech, consumer and healthcare startups in three focus markets – India, Israel, and the US.
• Coworking space provider WeWork Inc is in talks to sell its remaining 27% stake in its Indian unit, WeWork India, via an INR 1,200 Cr secondary transaction to Enam group’s family office, investment fund A91 Partners, and CaratLane founder Mithun Sacheti.

SUMMARY

Indian startups cumulatively raised $172.6 Mn across 21 deals between April 22-27

Fintech took the leader spot this week with startups in the sector cumulatively raising $88.5 Mn via 3 deals

Seed funding picked up this week to $33.9 Mn, a 29% increase from last week’s $26.2 Mn

After two weeks of decent investment activity across the Indian startup ecosystem, funding remained muted between April 22 and 27. During the week, startups cumulatively raised $172.6 Mn across 21 deals, down 33% from last week’s $260.1 Mn secured across 31 deals. 

Funding Galore: Indian Startup Funding Of The Week [April 22 – April 27]

Key Startup Funding Highlights Of The Week

• IPO-bound non-banking lender Northern Arc secured $80 Mn from International Finance Corporation (IFC) in equal halves of equity and debt components on April 25, marking the largest fundraise of the week.
• Buoyed by Northern Arc’s funding, the fintech sector maintained its dominance over funding trends at a sectoral level. Startups in the space snagged $88.5 Mn via 3 deals, up 18% from last week’s $74.8 Mn secured across 5 deals. 
• Ecommerce topped the highest deal chart this week, with startups in the sector raising $29.8 Mn across 5 deals. 
• The week also saw Blue Ashva Capital, Titan Capital, Venture Catalysts, and  Cred’s Kunal Shah clinching the active investors tag with each backing two startups. 
• Seed funding continued its ascent with early stage startups securing $33.9 Mn this week. This is a 29% surge from last week’s $26.2 Mn. 

IPO Updates From The Week

Other Major Developments Of The Week

• Capria Ventures announced the final close of its India Opportunity Fund at INR 153 Cr. This follows Capria’s full-cash exit from HR tech platform Awign, with a return of more than 50%. With this, Japanese Mynavi Corporation has picked up a majority stake in Awign.
• Global investment firm Lighthouse Canton launched a new fund, LC GenInnov Global Innovation Fund, to focus on investments in global GenAI companies.
• After a six-year-long stint, Peak XV Partner’s managing director Piyush Gupta is set to part ways with the VC by the end of April. Moving further, he is in the process of setting up a secondary-focused fund. 
• Australia’s Macquarie Group’s investment arm, Macquarie Asset Management, is looking to invest $1.5 Bn into India’s EV space via its recently unveiled platform Vertelo.
• EV maker Ather Energy is eyeing a $90 Mn funding round via a combination of primary and secondary share sales at a unicorn valuation. Meanwhile, existing investor Flipkart’s Sachin Bansal has divested some of his stake to Zerodha’s Nikhil Kamath. 
• Saudi Aramco’s venture capital arm is building a team in India to back early-stage startups in the country. Further, Aramco’s subsidiary Prosperity7 Ventures is in discussions to rope in a leader for its India operations.
• Investment firm Kedaara Capital has marked the final close of its fourth fund, Kedaara IV, at $1.7 Bn. With this, it has raised the country’s largest PE Fund, surpassing Chrys Cap’s $1.3 Bn Fund IX raised in 2023.
• Singapore-based investment firm Temasek and US-based Fidelity are in final discussions to invest around $200 Mn in Lenskart through a secondary share sale at a valuation of $5 Bn. 
• Former BharatPe CEO Suhail Sameer-backed OTP Ventures is planning to mark the first close of its debut fund at INR 400 Cr by June. The fund will be investing in consumer, consumer tech and fintech startups.
• VC fund Norwest Venture Partners announced the close of its 17th fund, NVP 17, at $3 Bn. With the fund, it will invest in enterprise tech, consumer and healthcare startups in three focus markets – India, Israel, and the US.
• Coworking space provider WeWork Inc is in talks to sell its remaining 27% stake in its Indian unit, WeWork India, via an INR 1,200 Cr secondary transaction to Enam group’s family office, investment fund A91 Partners, and CaratLane founder Mithun Sacheti.