TICE Startup Funding Index: Equity Funding, Acquisitions Fuel Startups

The funding data of Indian startups from October 13 to October 20, 2023, provides valuable insights into the funding landscape. In this period, several startups secured funding across various funding types, including Seed, Series A, Series B, Series E, and Conventional Debt. Let's delve into the key findings and highlight the significant aspects of the report.

As per the data compiled by the TICE Startup Funding Index, a total of 30 startups raised funding (including undisclosed funding rounds) between October 13 to October 20, 2023. The total funding amount raised by Indian startups comes close to $237M (excluding undisclosed funding rounds). 

Top Startups with the Highest Funding Raised:

Zetwerk - Zetwerk, a B2B e-commerce unicorn,  secured $120 million in its Series F funding round, led by Avenir Growth Capital. Notably, Avenir had acquired a 2.96% stake in Zetwerk earlier in May. This equity funding follows a $210 million round in December 2021 and a $12 million debt funding in March this year.

AgniKul - In its Series B funding round, Spacetech startup AgniKul Cosmos secured Rs 200 crore ($26.7 million) with participation from investors like Celesta Capital, Rocketship.vc, Artha Venture Fund, Artha Select Fund, Mayfield India, Pi Ventures, and Speciale Invest. This brings the total funding for the Chennai-based company to $40 million, including a $11 million Series A round in March 2021. Agnikul intends to use this capital to advance its technology for commercialization and expand its infrastructure, including mobile launchpads and test rigs.

Freight Tiger - Tata Motors recently acquired a 26.79% stake in logistics SaaS startup Freight Tiger for INR 150 Cr ($18 Mn), valuing the startup at approximately INR 560 Cr ($67 Mn). Additionally, Tata Motors has the option to invest an extra INR 100 Cr in Freight Tiger over the next two years, aiming to build a comprehensive digital ecosystem for the logistics value chain.

Major Developments of the Week:

• BYJU's in talks with private equity firms like Bain Capital and KKR to sell Aakash, Carlyle is keen to support Aakash Chaudhry and his family in buying it back from BYJU’S, potentially signaling Chaudhry's return as CEO.
  

• Despite the challenges posed by a 28% GST, Dream11 reached 200 million registered users in the online gaming industry.

• Bharat BillPay, supported by NPCI, is expanding into the B2B sector by introducing new value-added services.

• SoftBank intends to sell a 1.1% stake in Zomato for $123 million as per media reports.

• IBM has partnered with MeitY to boost R&D, enhance India's semiconductor self-reliance, and advance AI and quantum technology growth, including being a knowledge partner for the India Semiconductor Mission's research center.

• Infosys partners with Google Cloud to create industry-specific AI solutions and establish generative AI Labs for embedding AI in business processes, while also training 20,000 practitioners in Google Cloud's AI solutions.

• Singularity Growth has completed the initial fundraising for its second fund, Singularity Growth Opportunities Fund II, with a total of INR 500 crore.

• In FY23, PhonePe, a fintech startup, saw its revenue surge to INR 2,914 Cr, marking a 77% YoY increase from INR 1,646 Cr in FY22.

• Invesco, the Atlanta-based investment firm, has increased Swiggy's valuation by over 42% to $7.85 billion, marking its first significant boost in value since two previous markdowns. However, this valuation is still below Swiggy's peak value of $10.7 billion in January 2022.

• The CBDT circular exempts DPIIT-recognized startups from Section 56(2)(viib), provided their total paid-up capital and share premium stays under INR 25 Cr; however, experts find this limit restrictive and claim the G.S.R. 127(E) circular makes normal business operations challenging for startups.
  

• Acer has teamed up with Think Ebikego to introduce their electric scooter, the MUVI 125 4G, in India's EV market at a price of INR 99,999.

TICE Startup Funding Index

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