Startup Funding: ETtech Deals Digest: Tech Slowdown Continues, Startup Fundraising Down 75% YoY in January

The muted begin fundraising exercise continued with Indian within the first month of the brand new 12 months startups raised $1.18 billion in January, down 75% from the identical interval final 12 months. 122 funding rounds have been accomplished in January, in comparison with 331 rounds in the identical interval final 12 months.

On a month-to-month foundation, Indian startups noticed a 13% enhance from December as corporations obtained a complete of $1.05 billion in funding, in line with information from the market analysis platform Tracxn.

A lot of January’s funding was in late-stage startups, with $845 million raised over 14 rounds.

Early-stage startups raised $254 million throughout 27 offers, whereas seed-stage raised $90.3 million throughout 81 offers.

PhonePeBasic Atlantic’s $350 million elevate at a $12 billion valuation was the biggest deal in January and gave the totals an enormous increase. The fintech’s funding accounted for nearly 30% of the full quantity raised for the month.

In line with Tracxn information acceleration Companions has been the busiest VC over the previous month, finishing 5 offers together with Rigi, Beaconstac, Brick & Bolt, Breathe Nicely-Being and FreeUp.

Here’s a checklist of the biggest funding rounds for January 2023:

PhoneP receives $350 million from Basic Atlantic: Main in Digital Funds Cellphone Pe mentioned it raised $350 million in funding from international non-public fairness agency Basic Atlantic with a pre-money valuation of $12 billion, making it essentially the most precious privately held Indian fintech agency. The funding was the primary tranche of a fundraiser of as much as $1 billion that started final month, with different international and Indian buyers additionally becoming a member of the spherical, the corporate mentioned.

CreditBee raises $120 million in a brand new tranche from Introduction Worldwide: Credit score-based fintech startup KreditBee raised $120 million extra from buyers in Sequence D funds, bringing the scale of the spherical to $200 million. US-based non-public fairness big Introduction Worldwide has invested $100 million on this tranche, whereas others have invested a further $20 million, the Bengaluru-based agency mentioned. This makes it one of many largest rounds of capital infusions that the Indian startup trade has seen amid the continued funding disaster.

Enzene Biosciences raises $50 million: The biotech firm Enzene Biosciences, a subsidiary of the Mumbai-based drugmaker Alkem Laboratories, has raised $50 million (or roughly Rs 408 crore) in new fairness funding from Eight Roads Ventures and healthcare investor F-Prime Capital. Alkem Laboratories has additionally invested within the recent spherical. In a press assertion, Enzene mentioned it is going to use the recent funds to improve its manufacturing capability and gas enlargement in its core markets of India and the USA.

Log9 raises $40 million: Beginning the battery of electrical automobiles (EV). Log9 has raised $40 million led by Amara Raja Batteries and Petronas VenturesThe corporate was valued at $250 million after the funding spherical, co-founder Pankaj Sharma advised ET. The funding is a mixture of debt and fairness and different buyers together with Incred Monetary Companies Non-public Ltd, Unity Small Finance Financial institution, Oxyzo Monetary Companies Non-public Ltd and Western Capital Advisors Non-public Ltd additionally participated within the spherical.

Lending to startups SarvaGram raises $35 million: lenders to rural households SarvaGram Options closed its Sequence C funding spherical with $35 million, led by enterprise capital fund Elevar Fairness. Different buyers concerned within the spherical included Elevation Capital, Temasek and TV Capital Funds, such an announcement. The corporate final raised $10 million in its Sequence B spherical in February 2021, led by Elevation Capital and Elevar Fairness.

AI agency Mad Avenue Den raises $30 million: Enterprise AI Firm Mad Avenue Den (MSD) has raised $30 million in its Sequence C Funding spherical led by Avatar Development Capital. Current buyers Sequoia Capital and Alpha Wave World (previously generally known as Falcon Edge Capital) additionally participated within the newest spherical. The funding will enable the corporate to develop its synthetic intelligence (AI) choices throughout industries, the corporate mentioned.

Specialty espresso startup Blue Tokai raises $30 million: Blue Tokai Espresso Roasters has raised $30 million (2.45 million rupees) in its newest funding spherical., led by Mumbai-based funding agency A91 Companions. White Whale Ventures and current buyers, together with Grand Anicut Fund and 8i Ventures, additionally participated within the funding spherical, which additionally included some angel buyers promoting shares. The espresso model is anticipated to be valued at Rs 650 crore following the funding spherical.

Illustration and graphics by Rahul Awasthi

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