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In the second week of 2022, the Indian startup ecosystem raised $697 Mn across 42 deals

The week also reported a total of 14 acquisitions, with Thrasio making its first acquisition in India

LEAD became the country’s sixth edtech unicorn after raising $100 Mn in a fresh round of funding

After a bumper start in funding in the first week of 2022, the second week seems to be in a slump. Between January 10 and 15, the Indian startup ecosystem raised $697 Mn across 42 deals. This is an almost 46% drop from the previous week when $1.3 Bn was raised across 35 deals, and 50% lower than the last week of 2021 when startups raised $1.4 Bn across 36 deals. 

Further adding to the tally of unicorns this year, the week saw Lead as the new entrant to the club, making it the sixth edtech unicorn after BYJU’s, Unacademy, Eruditas, UpGrad, and Vedantu. The 2012 founded startup raised $100 Mn led by WestBridge Capital and GSV Ventures at $1.1 Bn valuation. 

The week also saw Chennai-based agritech startup WayCool Foods raising $117 Mn in its Series D round, the highest funding round raised by an agritech startup in India. On Dec 7, 2021, Inc42 had exclusively reported the round will see the entry of NY-based PE firm LightSmith Group in India. LightRock, LightBox, FMO, IFC, Redwood Equity Partners and Gawa Capital participated in the round. 

The Indian Startup Funding Deals Of The Week

Updates On Indian Startup IPOs 

Deeptech Startup Course5 Intelligence Files DRHP For INR 600 Cr IPO

Mumbai-based pure-play data analytics and insights startup Course5 Intelligence (or Course5i) has filed its draft red herring prospectus (DRHP) for an INR 600 Cr initial public offering (IPO).

The offer comprises a fresh issue of shares worth INR 300 Cr and an offer for sale (OFS) worth INR 300 Cr where Ashwin Ramesh Mittal, Riddhymic Technologies, Riddhymic Technoserve LLP, AM Family Private Trust, and Kumar Kantilal Mehta will offload shares. 

Fintech Giant Pine Labs Seeks $500 Mn In US IPO

Fintech unicorn Pine Labs is moving ahead with preparations for a US listing. The merchant commerce platform is looking to raise about $500 Mn (down from previous reports suggesting $1 Bn IPO) at $5 Bn-$7 Bn.

Currently valued at $3 Bn, the point of sale (PoS) and merchant commerce solution provider has filed confidentially with the US Securities and Exchange Commission (SEC) for its IPO in New York, according to a Bloomberg report. 

Delhivery Gets SEBI Nod For INR 7,640 Cr IPO

The Securities and Exchange Board of India (SEBI) has approved logistics unicorn Delhivery’s plan to file its INR 7,640 Cr initial public offering (IPO).

From The Startup Acquisition Desk

• Ronnie Screwvala-led edtech unicorn upGrad has acquired Mumbai-based Work Better for an undisclosed amount to strengthen its enterprise learning and development (L&D) offerings. 
• B2B ecommerce and supply chain enablement startup Bizongo has acquihired a Bengaluru-based cloud platform Hexa for college placements. 
• Globalbees has acquired three D2C brands – The Butternut Company, Mush, and Strauss
• Advanced analytics startup Fractal has acquired US-based Neal Analytics for an undisclosed amount.
• Bengaluru-based ecommerce roll-up unicorn Mensa Brands has acquired a majority stake in aromatherapy and personal care D2C startup Florona. 
• Esports major and a subsidiary of Nazara Technologies, NODWIN Gaming has acquired a 100 % stake in licensed merchandising D2C brand Planet Superheroes. 
• Walmart-backed Flipkart Group has acquired electronics recommerce startup Yaantra to strengthen its recommerce business and enhance after-sale offerings for its customers in the smartphone segment.
• Delhi NCR based ecommerce shipping platform, Shiprocket, has acquired B2B logistics platform, Rocketbox for an undisclosed amount. This is the second acquisition by the logistics startup in 2022.
• US-based Thrasio marks its first India’s acquisition with D2C consumer durables brand Lifelong. 
• Sugar Cosmetics has acquired a majority stake in natural skin and hair care brand ENN Beauty. 
• Neeraj Bhandoola has acquired 100% stake in The LuxePass app at an enterprise valuation of INR 3.96 Cr. 
• Delhi-based consumer electronic startup boAt acquired Singapore-based smart wearable producer KaHa Pte Ltd 

Startup Funds This Week

• Global angel network firm Agility Ventures has launched an INR 450 Cr ($60 Mn) angel fund after receiving approval from the Securities and Exchange Board of India’s (SEBI). Agility Ventures is looking to deploy the entire fund corpus in the next four years by investing more than INR 75 Cr across 50 startups each year. 
• Digital Futurists Angels Network (DFAN) is getting into a partnership with boutique investment banking firm Solis Capital and Ventures. They plan to co-invest and deploy a corpus of INR 100 Cr over the next four years to invest in early-stage startups, while also providing them with mentorships, advisory services and help with business development.
• Chennai-based alternative financing firm Anicut Capital has announced the final close of its AIF Grand Anicut Fund II at INR 875 Cr. 
• Bengaluru-headquartered early stage investor PointOne Capital has announced the  closure of its $7 Mn fund.

Other Developments From The Indian Startup Ecosystem

• Home interiors startup HomeLane has announced an INR 27 Cr ESOP (employee stock ownership plan) buyback program, marking its second such program according to the startup.
• Mumbai-based True Elements, a breakfast & snacks start-up brand, has initiated an allotment of equity shares under its employee stock ownership plan (ESOPs) worth INR 4 Cr to 60 employees.
• Google for Startups India has chosen 20 Indian startups out of the 700 applications for the sixth cohort of its Google for Startups Accelerator (GFSA) program. 
• US-based rollup ecommerce giant Thrasio has finally entered India and will be investing $500 Mn to acquire promising Indian digital-first brands.