BETTER CAPITAL STARTUP INVESTMENTS
PE, VC funding slows in first half of 2024; secondary deals become prominent
Secondary stake sales and buyouts are driving most of the larger deals being made by private equity (PE) and venture capital (VC) funds in new-age firms, data from investment banking firm DC Advisory showed. In the first six months of 2024, when 37 deals took place in the $50-500 million range, 62% were secondary transactions or buyouts, with external primary investment rounds making up only 13%.
Rise & rise of secondary deals; advantage desi data centres
Happy Friday! Total funding raised by Indian startups fell in the first half of 2024, but late-stage activity showed signs of revival, as per data. Decoding this and more in today’s ETtech Morning Dispatch.
Suzuki launches Rs 340 crore investment vehicle Next Bharat Ventures for Indian startups
The company will invest in firms through a residency programme, the first of which will begin this October, with applications starting on Thursday. This will be similar to those run by Antler and Y Combinator.
Peak XV has Rs 16,000 crore for investment; AI to be in focus: Rajan Anandan
Peak XV Partners, managing director Rajan Anandan said the company isn't facing any shortage of capital, they just want more people starting up in AI. "We have over 25 AI investments that we’ve made over the last 1-1.5 years,” he said. Peak XV Partners recently led a $10.5 million funding round in AI health startup Cloudphysician.
Investors pour $27.1 billion into AI startups, defying a downturn
Investors poured $27.1 billion into AI startups in the United States from April to June, accounting for nearly half of all U.S. startup funding in that period, according to PitchBook, which tracks startups. In total, U.S. startups raised $56 billion, up 57% from a year earlier and the highest three-month haul in two years.
Startups seek support, policy continuity from new govt
As of 6.30 pm, data from Election Commission showed the incumbent BJP leading with 241 seats, opposition Congress with 98 seats -- leaving both parties short of the 272 Lok Sabha seats needed to form a government and increasing the chances of a coalition.
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Temasek, Fidelity pick up $200 million stake in Lenskart secondary deal at $5 billion valuation
Singapore's Temasek and US financial service major Fidelity invest $200 million in Lenskart through a secondary share sale, valuing the company at $5 billion.
Brands by scions attract VC money; Ola Electric layoffs
Happy Monday! A new wave of brands founded by second generation entrepreneurs is snagging venture capital. This and more in today’s packed edition of ETtech Morning Dispatch.
PV Sindhu invests in biofortified staples brand Better Nutrition
PV Sindhu, Indian badminton player, has injected an undisclosed amount in Better Nutrition, a biofortified staples brand from Greenday that offers agri-input services such as biofortified seeds, fertilisers and agronomic practices.
100X.VC invests $2.7 million in 17 startups
100X.VC, a Mumbai venture capitalist firm, injected $2.7 million into 17 startups in their 11th cohort. This brings their total portfolio to 161 companies. Ninad Karpe, founder and partner at 100X.VC, said they invested Rs 1.25 crore in each startup and provided mentorship to help them refine their products and go-to-market strategies.
RPSG Capital Ventures announces close of second fund at Rs 550 crore
RPSG Capital Ventures with Fund II has already invested in startups such as Supertails, Perfora, Rabitat and Headway. The investors of this fund were largely domestic, including family offices, high net worth individuals and industry veterans from the consumer sector.
EV marketplace-financing startup Turno raises $6 million from BII, others
Founded in April 2022 by former Zoomcar C-suite executives Hemanth Aluru and Sudhindra Reddy, Bengaluru-based Turno provides financing solutions to small and mid-size enterprises as well as individuals who plan to buy commercial three-wheeler (3W) electric vehicles.
Cathie Wood's Ark buys stake in Elon Musk's xAI: report
Cathie Wood's Ark Investment Management purchased a stake in xAI, Elon Musk's AI startup valued at $24 billion, as reported by Bloomberg News.
France looks to elusive EU capital market to fix startup funding
A hodgepodge of local regulations and oversight has kept Europe's financial markets largely shaped by national borders, preventing the emergence of deep capital markets to rival the United States.
Sauce VC launches third fund eyeing a corpus of Rs 250 crore
New Delhi-based investment firm Sauce VC, which has backed new-age luggage brand Mokobara, healthy foods startup The Whole Truth and petcare firm Supertails, aims to raise Rs 250 crore for its third fund. This comes as D2C firms see growing interest from risk capital investors. The firm looks to back 15-16 consumer brands in their early stages.
Ride-hailing startup BluSmart to raise Rs 200 crore in new funding
BluSmart has raised nearly $24 million or Rs 200 crore in its latest funding round. In January this year, BluSmart had raised $25 million, while in 2023 it conducted funding rounds worth $66 million.
Recent Crypto funding surge set to transform the Altcoin market in 2024; 5 top Cryptos to watch
Cryptocurrency startup funding surged by 40.3% to $2.4 billion in Q1 2024, while global venture capital investments hit a five-year low. Bitcoin price soared to $73,803 after BlackRock and Fidelity approved bitcoin spot ETFs.
Venture capital funding in crypto rises to $2.4 billion: PitchBook
Funding was spread across 518 deals and rose by 40.3% from the previous quarter, according to data firm PitchBook. Global venture capital investments dropped to a near five-year low in the same period.
Wipro Consumer VC looks for more follow-on rounds
Sumit Keshan, managing partner of Wipro Consumer Care – Ventures, said the fund's approach has been to invest $1-3 million per deal with a follow-on investment that can go up to $4 million. The second fund will make a portfolio of around 15-16 companies, largely with the same ticket sizes, with a little more focus on follow-on funding, he added.
Govt needs to boost financial support to startups: Snapdeal founder
Conversations over boosting supply of capital to homegrown startups have come at a time when the startup ecosystem is experiencing a major slowdown. According to Infosys cofounder S Kris Gopalakrishnan, there is significant wealth in the country and family offices or fund managers should allocate at least 15% of their investments to the startup ecosystem as a thumb rule.
ETtech Deals Digest: Startup funding falls 34% on year to $118 million this week
In terms of volume, total deals during the week stood at 18, compared to 32 a year ago, and 16 in the second week of May 2024. Sequentially, deal value went up about 3.3X from $35.2 million to $117.6 million.
Awfis sets Rs 364-383 price band for IPO
The company expects its differentiated business model, expanding presence in tier-1 and tier-2 cities and increasing demand from large enterprises and startups to help make its public listing a success and drive future growth, founder and managing director Amit Ramani told ET on the sidelines of a pre-IPO conference in Mumbai.
VC funding for women-led startups declined in 2023: report
A new report reveals a decline in VC funding for women-led businesses in India. According to WinPe, a non-profit organisation focused on gender diversity in private equity, the share of funding going to female founders dropped to just 9.3% in 2023, compared to 14.7% in 2021.
Office-sharing startup Awfis to launch IPO on May 22
Delhi-based Awfis has reduced the fresh capital it is raising from the offering to Rs 128 crore from Rs 160 crore earlier. Meanwhile, the company's offer for sale component (OFS), through which investors like Peak XV Partners and private equity firm ChrysCapital are divesting their stakes, has been increased to 12.3 million shares from 10 million shares earlier.
100Unicorns launches second fund, eyes $200-million target
The fund is looking to support more than 200 startups across sectors like SaaS, direct-to-consumer (D2C), fintech, electric vehicles (EV), energy, defence and healthcare. It aims to announce its first close by November, with a target amount of $100 million.
Suits & Sayings: Neighbourhood Deal
ET’s weekly roundup of the wackiest whispers and murmurs in corporate corridors & policy parlours.
Strong growth likely in FY25; pvt investment picking up, says Sanjay Nayar
In an interview to ET, Nayar called on the government to maintain its capital expenditure push for some more time to "crowd in" private investment. Rural consumption has started to see an uptick, on top of the already strong urban demand, he said. Capacity utilisation has gone up to 75% or so, which indicates companies would go for fresh capacity expansion.
Digit IPO: tempering tech valuations & other top startup stories this week
This is Pratik Bhakta in Bengaluru. Insurance startup Digit, by valuing itself at a discount of 25% to its last known private market valuation, seems to have stuck its neck out. And it’s a move that’s certainly got everyone talking.
Deeptech startup Myelin Foundry raises $4 million led by Sidbi Venture Capital
Myelin Foundry secured $4 million with participation from existing investors. The funds will fuel platform development, global expansion, and solidify their edge AI leadership.
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