Indian Startup Funding – Indian Startups Raise $222 Million This Week

A total of $222.2 million was raised by Indian startups across 25 deals, up 416% from $43.1 million raised across 12 deals in the previous week

Rapido became India’s 116th unicorn this week, raising $120 million at a post-raise valuation of just over $1 billion

Seed funding has seen a revival this week, with startups raising $5.1 million compared to zero last week

Funding momentum in the Indian startup ecosystem rebounded strongly in the last week of July after a significant decline in the fiscal week. Startups raised $222.2 million across 25 deals between July 29 and August 3, up 416% from $43.1 million raised across 12 deals in the previous week.

While this week saw a significant increase in funding trends, India’s 116th unicorn, Rapido, was also crowned. Meanwhile, three entities from the startup ecosystem, Ola Electric, Unicommerce, and FirstCry, finally made it to the doorsteps of public markets this week.

Funding galore: India startup funding of the week (July 29 – August 3)

Startup financing highlights of the week

• Rapido’s unicorn minting round was the biggest fundraiser of the week. It earned financing of $120 million from current investor WestBridge Capital at a post-money valuation of just over $1 billion.
• Boosted by Rapido’s funding round, travel tech has become a darling of investors at the sector level. Fintech has lagged travel tech at the sector level, with three fintech startups raising $39.4 million.
• The largest number of deals this week was recorded in the enterprise technology sector, with startups raising $9.3 million across seven deals.
• Seed funding picked up this week, with startups raising $5.1 million, up from zero the previous week.

Indian Startup IPO News

• The initial public offering (IPO) of electric vehicle (EV) manufacturer Ola Electric began on August 2 and 35% subscription received first day of bidding on Friday. The startup had raised INR 2,763 Cr from underlying investors a day earlier.
• The IPO of children’s clothing brand FirstCry is set to begin on August 6 and end on August 8. It has been determined that price range 440-465 INR per equity share through IPO and at the upper end of the price band the company is expected to raise INR 4193 Cr through IPO.
• SaaS startup Unicommerce to launch IPO on same day as FirstCry, price range set 102-108 INR per equity share in an initial public offering where the selling shareholders will receive INR 276.57 Cr at the upper end of the price band.
• Education-focused non-banking financial company (NBFC) re-filed IPO documents July 31 after addressing issues raised earlier by market regulator Securities and Exchange Board of India (SEBI). The public offer will comprise a fresh issue of shares worth INR 1,000 Cr and an offer for sale (OFS) component of shares worth up to INR 2,500 Cr.
• SaaS unicorn Fractal plans to file DRHP to IPO $500-600M by the end of this month or early September. The company’s tech startup aims to list on the Indian stock exchange at a valuation of around $3 billion.
• The Infra.Market B2B e-commerce platform aims to start a trial for 300-400 million dollars IPO by establishing a consortium of four or five investment banks.

Other important events of the week

• Investment firm Trifecta Capital has launched its fourth fund total body size 2000 Cr INR (approximately USD 240 million), including a green shoe option worth INR 500 million.
• IIMA Ventures has launched Venture Investment Accelerator Program for new investors and those interested in venture capital investing through family offices, micro venture capitalists or corporate venture capital offices.
• Brokerage platform Dhan, the parent company of Raise Financial Services, is in early stage talks to raise about $100 million in a new round of financing at a unicorn-level valuation.
• Fintech SaveDesk has acquired 90% of shares in Fairexpay for an undisclosed amount. The acquisition will enable SaveDesk to expand its reach in the cross-border remittance and fund collection markets.
• Co-founder and former CTO of struggling startup Dunzo, Mukund Jha in talks to benefit $6-10 million from the Together fund for his new venture GenAI.
• Micro-investment firm Gemba Capital has launched its second fund with target body INR 250 Crincluding a green shoe option worth INR 50 Cr. The fund aims to support 30 early-stage startups from the fintech, consumer tech and B2B sectors.
• IIFL Fintech Fund has invested an undisclosed amount in Vitra.ai to acquire 10% shares at the startup Gen AI.
• Mumbai-based trade finance startup Vayana Network is raising 20 million dollars in a Series D financing round led by new investor SMBC Asia Rising Fund