PC: 123RF
Indian start-up landscape over last week had a play of funding activities, new fund launches, key hirings and departures and other important developments on the mergers and acquisitions front. Here’s an in-depth update of what has been happening in the effervescent world of start-ups in India.
Weekly Fundings Summary
Indian startups surged ahead, taking in $628.24 million in funding, 175% more than last week’s figures. Growth-stage and early-stage deals marked the funding scenario this time around. Growth-stage deals were at 14, while early-stage deals are reflected as 17. However, five startups chose not to publish any information concerning their transaction, thereby adding a touch of mystery to the funding scenario.
Growth Stage Deals
The growth-stage funding sphere was abuzz with 14 startups raising funds amounting to $566.44 million in total. The top one was Physics Wallah, the edtech startup, with $210 million raised for a massive funding round. Other prominent players in this portfolio are SaaS-based digital adoption solution provider Whatfix, API infrastructure platform M2P Fintech, omnichannel diagnostics service provider Redcliffe, and digital infrastructure company iBUS; and mobility startup Everest Fleet, which raised significant deals between $30 million and $100 million.
Early-Stage Deals
Mumbai-based Kaleidofin topped the list with its funding of $61.8 million by garnering and funding 17 other early-stage startups in the batch, which included data intelligence platform e6data, luxury wellness clinic chain The Wellness Co, SaaS-enabled marketplace for metal manufacturers NowPurchase, and vacation home rentals platform ELIVAAS among others, which have a growth potential.
Sector-Wise and City/Segment-Wise Distribution
Bengaluru emerged as a front runner in terms of city-wise funding deals with 12 deals, and Delhi-NCR followed Mumbai, Chennai, Hyderabad, and other key startup hubs. In terms of segments, E-commerce, SaaS, and Fintech dominated the funding landscape as each recorded five deals, spreading the platform for diversity to thrive in the Indian startup ecosystem.
Series-Wise Deals and Funding Trends
Week saw seed funding deals the most, with 10 deals followed by 7 Series A, 5 Series B and 3 Series C, which shows varied funding stages embraced by Startups. The great increase in weekly funding and average funding over eight weeks clocking $393 million shows there is very healthy growth trajectory of Indian startup ecosystem.
Fund Launches and Industry Movements
Fund launches galore came in the form of z21 Ventures, Capital A, and Shivalik Investment Fund; key hirings and departures marked a silver lining of the ever-changing talent landscape within the startup ecosystem with reshuffles at Bizongo and key appointments at Amazon, Yum! Brands, and ACT Fibernet, among others.
Mergers, Acquisitions, Industry
The week witnessed major acquisitions of fintech startup Veefin and infra solutions provider Acru, as well as influencer marketing brand OPA and computer vision firm AJA Vision Technologies, the latter of which were major players among the group.
The most significant acquisition was that made by Oyo wherein it acquired G6 Hospitality-operator of Motel 6 and Studio 6 brands-a strategic move in its quest to improve its acceptance within the hospitality segment.
Challenges and Controversies
Similarly, the Indian startup ecosystem was not immune to challenges like those, with Byju’s-owned Aakash Educational Services Limited going through mass layoffs and BYJU’s facing insolvency proceedings. Changes in the marketplace along with more scrutiny at the regulatory level signal that startups might need to exercise some degree of resilience and adaptability.
Conclusion
The Indian startup ecosystem echoed a busy week through rich funding activity, launching funds, strategic moves, and industry developments through a rich tapestry of innovation and growth. Amidst all these challenges and opportunities, the landscape remains ripe for disruption, expansion, and transformation to hold a vibrant entrepreneurial journey ahead.
