The amount of venture funding coming into Indian startups has been steadily declining in the month of May.
In week 3 of May, there were significantly fewer deals and funding than in weeks prior. Total venture capital was $197 million versus $344 million in the previous week, which is a 43% decline. Even though the number of deals fell to just 21 over the 3rd week, this time as compared to last week 34 deals. were closed.
It is unlikely that the current situation will change in the short term, as many countries’ central bank are signalling their intention to raise interest rates. This will naturally lead to a drop in the amount of money available for lending and investment, contributing towards a slower path of growth for developing economies.
Top Deals of the Week
Hocomoco rebrands to Wehouse, raises $1 million in pre-series round
Hyderabad-based tech-powered construction aggregator, Hocomoco, has recently rebranded itself to Wehouse and raised $1 million from Anthill Ventures and a group of angel investors in its first funding round. The funding will be utilized to upgrade the technology platform and hire for key roles in its expansion to cities pan-India.
In a statement, Sripad Nandiraj, co-founder and CEO, Wehouse, said, “Reinventing is an important part of keeping a corporate entity relevant and aligned with its entrenched entrepreneurial ethos. Our new name embodies our industrial and individual worldview. The funding will be used to bolster our tech and prime us for scalability. Currently, more than 2000 workers are indirectly employed on different projects across Wehouse’s projects. We want to keep increasing this number and give these workers more jobs as we grow.”
Also read: Weekly Funding Update – India (May 07– May 13)
D2C Sampling Startup Smytten Raises INR 100 Cr, Valuation Doubles
The funding round also saw participation from Sharrp Ventures, Waao Partners, Survam Partners, and Sattva Group Family Office. With the latest funding round, many of the early investors exited the startup with nearly 15X return on investment, Sarangi said. Smytten also doubled its valuation in the round from its last funding round held in August 2021, he added, without disclosing its current valuation. In August last year, Smytten raised $6 Mn in its Series A funding round led by FireSide Ventures. Mamaearth, Plum, mCaffeine, WOW Skin, Maybelline, Man Matters, Bodywise, and The Man Company are among some of the D2C brands present on its platform.
Repos Energy raises fund from Ratan Tata, to bring biofuels on its network
National start-up award winner Repos Energy has raised a pre-series A round of funding from Chairman Emeritus of Tata Sons, Ratan Tata, followed by other undisclosed investors. The newly-raised funds of ₹560 million are in a combination of equity and debt.
The latest funding will help the Repos Energy re-fuel the energy distribution sector for a ‘carbon-light’ tomorrow, as it has already seen a popular demand. As a part of its energy distribution system, the startup is now working on bringing renewable energies such as ethanol, methanol and biofuels on its mobile distribution network.
E-jeweller Melorra pockets $16 mn from Axis Growth, N+1, others
August Jewellery Pvt, Ltd, which runs e-jeweller Melorra, on Tuesday announced the first close of its Series D funding at $16 million (Rs 123.2 crore) from Axis Growth Avenues AIF-I, SRF family office, N+1 and other existing investors.
The firm plans to use the fresh funds to boost marketing activities and set up more offline units across India. The company says it is targeting to reach $1 billion in revenue by four years from now.
Fashinza Raises $100M in Series B Funding
Fashinza, a Delhi, India-based provider of an AI-driven B2B marketplace and real-time supply chain platform for fashion brands and retailers, raised $100M in Series B funding.
The round, which includes a mix of equity and debt financing, was led by Prosus Ventures and Westbridge with participation from Accel, Elevation, ADQ, Naval Ravikant, Jeff Fagnan, Jake Zeller, Nivi, and Nitesh Banta.
The company intends to use the funds to invest in supply chain technology and expand presence globally. This includes monetizing fintech offerings, expanding into raw material procurement and creating a sustainable (i.e. net positive) supply chain by 2030 and Industry 4.0 solutions for SMB manufacturers.
Indian supply chain startup Ninjacart raises $9 million
Ninjacart, an India-based fresh fruit and vegetable supply chain startup supported by Flipkart has raised $9 million from STIC and Mainstream Digital.
The funds will be used to scale Flipkart’s 90-minute online grocery business to 200 cities by the year-end and expand its grocery offering Supermart.
Ninjacart last received a $145 million investment from Flipkart before this new funding round. The startup procures fresh fruits and vegetables directly from farmers and supplies retailers, restaurants, hotels, and apartment complexes.
HappyLocate taps $1.1Mn in pre-Series A to help companies avoid employee relocation hassles
HappyLocate Relocation Services Pvt Ltd, which runs relocation platform HappyLocate, said it has raised pre-Series A funding of $1.1 million (around Rs 8.52 crore) led by Inflection Point Ventures, with participation from VM Ventures and RMZ Management.
The Bengaluru-based startup plans to use the fresh money to boost its operational excellence and expand corporate reach.
