Indian entrepreneurs were able to garner a $58.36 million across 16 agreements, a 52% decrease from last week’s $121.8 million raised across 21 transactions. The Fintech industry emerged as an investor favorite this week, with businesses in the field securing $23.9 million in four deals. Seed funding increased more than fourfold last week to $13.12 million, up from $3.5 million last week.
Investment activity in the Indian startup ecosystem decreased significantly in May. While financial momentum began to wane early in the month, it reached its low point between May 20 and May 25. During the week, companies raised $58.36 million in 16 agreements, a 52% decrease from $121.8 million raised in 21 deals the previous week.
Investing Spree: Indian Startup Investment of the Week [May 20 – May 25]
Key Startup Funding Highlights for the Week
- Boosted by the $18 million capital secured by lendingtech firm Navi Finserv, the largest payment of the week, the fintech sector emerged as the sweet spot for investors this week. The sector’s startups raised $23.9 million in four deals, the most at the sectoral level.
- Ecommerce startups secured a similar amount of deals, raising $3.5 million in four transactions.
- Seed funding increased more than fourfold this week, reaching $13.12 million from $3.5 million the previous week.
Updates on the Indian Startup IPOS
- Hospitality unicorn OYO formally postponed its announcement that it will be making its public market debut in order to focus on generating $450 million through the sale of dollar bonds. According to documentation from SEBI, the company officially withdrew its IPO filings on May 17.
- Coworking company Awfis’ public offering attracted 9.84 crore bids compared to the 86.29 lakh shares on offer, resulting in a 11.4X oversubscription. Retail investors led the pack, with the quota subscribed 21.1X.
- Online travel aggregator (OTA) ixigo’s public listing plans are now in high gear after SEBI approved its IPO of more than INR 120 crore. The offer will include a new issue of shares worth INR 120 crore and an OFS component of 6.66 crore shares.
- Insurtech unicorn. Go Digit General Insurance (Digit) made a disappointing public market debut this week. Its shares were launched on the NSE at INR 286 per share, representing a 5.1% premium over the issue price of INR 272.
Acquisitions and Mergers This Week
- Noise, an audio technology startup, purchased AI platform SocialBoat for an unknown amount. The business plans to use SocialBoat’s AI skills to improve health and fitness aspects on its wearable devices.
- CashFlo, a B2B finance firm, bought GST compliance platform Logitax for an unknown sum to strengthen its accounts payable automation and supply chain financing platform.
