From PharmEasy To Portea — Indian Startups Raised $316 Mn This Week

After a significant drop in the capital raised by Indian startups in the last week of April, funding picked up in the world’s third-largest startup ecosystem in the first week of May. Between April 29 and May 4, Indian startups cumulatively raised $316.4 Mn across 23 deals, up 83.3% from last week’s $172.6 Mn secured across 21 deals.

Funding Galore: Indian Startup Funding Of The Week [Apr 29 – May 4]

Key Startup Funding Highlights Of The Week

• Digital pharmacy PharmEasy bagged $216.2 Mn as part of its rights issue at a 90% valuation cut compared to its peak valuation of $5.6 Bn in October 2021. This was the lone mega deal for the week as well as the biggest cheque secured by a startup.
• Buoyed by PharmEasy’s mega funding, healthtech knocked off fintech to become the most funded sector this week. Healthtech startups raised $236.2 Mn across three deals this week. 
• Ecommerce maintained its streak of securing the most number of deals. Startups in the space netted $8.2 Mn across five deals this week. 
• Z21 Ventures and JITO Incubation and Innovation Foundation (JIIF) were the most active investors for the week, backing two startups apiece.
• Despite the positive upturn in the funding trends overall, seed funding dropped significantly this week. Startups at this stage were able to bag only $12.3 Mn this week, down 64% from last week’s $33.9 Mn.

Startup Acquisitions This Week

• Momspresso founders Vishal Gupta and Prashant Sinha’s new venture Pravis has picked up a stake in adtech gaming platform StreamO. The growth marketing firm will leverage StreamO’s 300 Mn subscribers to target GenZ communities.
• Non-banking finance company (NBFC) UGRO Capital has initiated the acquisition process of  lending tech startup MyShubhLife in a mix of equity (64%) and cash (36%) at an enterprise value of INR 45 Cr.
• SaaS major Freshworks announced the acquisition of Delaware Corporation’s Device42 for $230 Mn. The purchase price would be paid in the form of $215 Mn of cash and an equity rollover of $15 Mn. 
• Chennai-based SaaS metering and pricing platform Togai is in the process of getting acquired by California-based Zuora. The subscription management software company is looking to enhance its monetisation with the Togai’s acquisition
• PB Fintech, the parent company of insurtech platform Policybazaar, is set to acquire 100% stake in UAE-based Genesis Group. It will also be divesting stakes in two subsidiaries, Visit Health Private Limited and Visit Internet Services Private Limited 

Other Major Developments Of The Week

• BharatPe’s ex-COO Druv Dhanraj Bahl has rolled out his maiden venture capital (VC) fund, Eternal Capital, with a target corpus of $14.3 Mn. The fund is looking to back 40 early stage startups over the next three years.
• Venture debt firm Stride Ventures announced the final closure of its Stride Ventures India Fund III at $165 Mn. The firm will look to back startups across consumer brands, financial services and cleantech sectors
• VC firm IvyCap Ventures marked the final close of its third fund at $251 Mn. The fund will invest in 25 startups with an average ticket size of INR 30-50 Cr. 
• Tribe Capital is looking to invest $75 Mn in Shiprocket through its newly-launched special purpose vehicle (SPV). The transaction is expected to be completed in a few weeks. 
• Digital consulting company Brillio is looking to expand its India footprint with an investment of $240 Mn over the next five years.
• Investment firm Oister Global has floated an INR 440 Cr fund, Oister India Pinnacle Fund (OIPF), to fuel emerging technology-led innovations and various sunrise sectors in the country. 
• Thyrocare founder Arokiaswamy Velumani has joined hands with Young Entrepreneurs Association (YEA) and Magnifiq Capital Trust to invest up to INR 50 Cr in Indian startups. 
• Healthtech unicorn Innovaccer is in talks with health major Kaiser Permanente to raise a funding in the range of $200 Mn-$250 Mn in a mix of primary and secondary funding. 
• Anthill Ventures is looking to launch a hybrid fund targeting consumer experiences, wellness and entertainment startups. It will raise $100 Mn for a hybrid private credit and equity fund.
• UGRO Capital’s board approved raising INR 1,332.66 Cr through compulsorily convertible debentures (CCDs) and warrants. 
• Gold loan startup Rupeek has initiated funding discussions with Claypond Capital and Axis Bank. The startup is looking to raise an undisclosed amount of funding at a substantially reduced valuation of $200-$250 Mn from its 2022 valuation of $600 Mn. 
• Private equity (PE) firm ChrysCapital closed its $700 Mn ‘Continuation Fund’. The fund was anchored by US-based HarbourVest Partners and European funds LGT Capital Partners and Pantheon Ventures.