August 2, 2024
Early-stage startups received significant funding, with US$311.83 million raised; Unimech Aerospace and BluPine led with US$30 million and US$28.8 million, respectively
The abolition of angel tax is expected to positively impact the startup ecosystem, alongside anticipated IPOs from Ola Electric and Infra.Market
Bengaluru led in funding deals with 42 transactions, followed by Delhi-NCR and Mumbai, while smaller cities are seeing increased entrepreneurial activity
Family offices are diversifying their portfolios, with seven participating in funding rounds, reflecting a growing interest in equity markets
Indian startups continued their impressive performance, achieving total funding of over US$ 1.03 billion across 126 deals in July. This includes 28 growth-stage deals totalling US$ 725 million and 72 early-stage deals worth US$ 311.83 million. Although this represents a significant decrease from June’s exceptional funding of US$ 1.93 billion, it is the highest amount recorded for July in the past three years. The spike in June was driven by a notable US$ 665 million round led by Zepto, followed by substantial investments in Flipkart, PharmEasy, and Lenskart.
Among the noteworthy deals in July were Purplle and Rapido, both securing US$120 million. Rapido’s achievement of unicorn status has positioned it as the third company to enter the billion-dollar valuation club this year. Other significant investments included US$50 million for hospitality firm Oyo and substantial funding for Urban Company, Navi, Matter, and Dezerv. It is important to note that Oyo experienced a major reduction in valuation, Urban Company raised funds through secondary offerings, and Navi secured its amount via debt.
In July, 72 startups raised US$311.83 million in the early-stage sector. Leading this group was Unimech Aerospace, which secured US$30 million for its high-precision tooling for aerospace applications. Other notable early-stage fundraisers included BluPine, with US$28.8 million; Simple Energy, with US$20 million; Newme, with US$18 million; and Stable Money, with US$15 million. Several other startups, such as UptimeAI, Immuneel Therapeutics, and Namma Yatri, also raised significant funds.
The month also saw 17 acquisition deals. Among them, Nazara Technologies acquired a 48.42% stake in Paper Boat Apps for INR 300 crore. At the same time, its gaming arm, Next Wave Multimedia, bought the intellectual property rights of Ultimate Teen Patti from Games24X7 for INR 10 crore. Other notable acquisitions included Excelmax Technologies by Accenture, OneCare by Acko, and Ekagrata by Adda247.
Geographically, Bengaluru led with 42 funding deals, contributing around 37% of the overall funding in July. Delhi-NCR and Mumbai followed with 33 and 24 deals, respectively. A growing trend of increased entrepreneurial activity in smaller cities, including Ankleshwar, Bareilly, and Udaipur, reflects a broader distribution of startup activity.
Family offices are increasingly diversifying their investment strategies. Traditionally focused on real estate and fixed deposits, these offices are now actively seeking equity investments. In July, seven family offices, including those of Sunil Singhania and MS Dhoni, participated in funding rounds, highlighting a shift towards more dynamic investment avenues.
The Indian startup ecosystem is set to continue its growth trajectory, with expectations of reaching US$15 billion in funding by 2025. Although surpassing the US$38 billion level of 2021 may be challenging, the robust IPO activity and emerging sectors like healthcare and climate tech offer promising opportunities. With ambitious targets and large-scale schemes in place, significant deals in the renewable energy sector are anticipated in the near future.
Source: entrackr