FUNDING RUNDOWN: Zetwerk turns unicorn, BharatPe garners Rs 200 cr in debt, Microsoft invests $5 M in OYO

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Here are the top deals locked in the startup universe this week.

Zetwerk becomes unicorn, raises $120 M

Zetwerk has raised $120 million in a Series E funding round led by D1 Capital Partners.

The fundraising pegs the company’s valuation at over $1 billion, making it the latest entrant to India’s coveted unicorn club.

Existing investors including Kae Capital, Sequoia Capital India, Accel India, Lightspeed Ventures too participated in the latest round of funding.

This comes six months after the company was valued at around $600 million in Series D funding led by US-based Greenoaks Capital and Lightspeed Venture Partners in February this year.

Grofers turns unicorn after CCI allowed Zomato to buy 9.3% stake

Grofers has entered the coveted unicorn club after the Competition Commission of India (CCI) approved Zomato’s proposal to acquire a 9.3 percent stake in the e-grocery platform.

Zomato and Tiger Global have invested $120 million in e-grocery player Grofers turning it into a unicorn with a valuation of over $1 billion.

Meanwhile, the deal would bring back grocery ordering on Zomato after close to a year.

API-platform Postman’s valuation shoots up to $5.6 bn in Series D fundraise

Postman, an application programming interface (API) platform, has secured $225 million in a Series D funding round at a valuation of $5.6 billion. That’s close to 3X jump since the previous fundraise at a valuation of $2 billion last June.

It is now the most-valued Indian SaaS (Software As A Service) platform after BrowserStack, which has a valuation of $4 billion. Postman turned unicorn – startups with a valuation of $1 billion or more – in 2020.

The current funding round was led by Insight Partners, Coatue, Battery Ventures, and BOND with participation from existing investors CRV and Nexus Venture Partners. DoorDash Product Leader Gokul Rajaram and Freshworks Founder Girish Mathrubootham joined as individual investors.

The company has now raised more than $430 million across four rounds. The fresh capital will be used to expand its teams and invest in the API ecosystem across the globe.

BharatPe garners Rs 200 crore in debt from IIFL Wealth, Northern Arc

Fintech startup BharatPe has raised Rs 100 crore each in debt from IIFL Wealth and Asset Management, and Northern Arc Capital.

This is the seventh round of debt funding for the company. BharatPe raised a total of over Rs 500 crore (about $ 70 million) in debt at competitive rates in the year 2021. It plans to raise $250 million in debt by the end of FY22, the company said.

Earlier this year, BharatPe raised over Rs 300 crore from venture debt funds (Alteria Capital, InnoVen Capital and Trifecta Capital), banks (ICICI Bank and Axis Bank) and an NBFC (Northern Arc Capital).

”BharatPe’s lending vertical has grown exponentially over the last 1.5 years. BharatPe has already disbursed over USD 300 million in unsecured loans to over 2 lakh merchant partners and has an outstanding loan book of over $ 100 million,” the company added.

Microsoft invests $5 M in OYO

Global tech giant Microsoft has invested $5 million in hotel and hospitality business OYO at a valuation of $9.6 billion, according to regulatory filings.

Under the deal, OYO has allotted five equity shares and 80 preference shares to Microsoft at an issue price of $58,490 per share to raise $5 million.

An extraordinary general meeting of OYO on July 16 approved the issue of the equity shares and Series F2 compulsory convertible cumulative preference shares (Series F2 CCCPS) for “an aggregate consideration amounting to rupee equivalent of $4,971,650 to Microsoft Corporation on a private placement basis”, according to the filing.

Moreover, the meeting approved the issue of 80 Series F2 CCCPS of the face value of ₹100 each for cash at an issue price of rupee equivalent of $58,490 per Series F2 CCCPS.

The investment is likely to be part of a larger round that may see more infusion from Microsoft in the near future.

Last month, OYO raised $660 million in debt from undisclosed institutional investors to repay its past debts, strengthen balance sheets and boost product technology.

PhonePe closes $700 M round from Tencent & Tiger: Report

PhonePe has secured a $350 million fundraise from new and existing investors, according to Entrackr. Walmart led the fresh tranche with $283.5 million while Tencent has put in $50 million. Tiger Global also joined this tranche with $16.5 million.

This is the first fundraise for PhonePe in 2021 and is part of a $700 million round that the company announced in December last year.

With this, PhonePe has raised $700 million from these three investors across two tranches in the past eight months. The company had raised $350 million from the trio in a similar ratio in December 2020.

Rapido raises $52 M to expand operations across India

Rapido, a bike taxi platform, has secured $52 million in its latest round of funding.

The round saw participation from new investors including Shell Ventures, Yamaha, Kunal Shah, founder of CRED, Amarjit Singh Batra, CEO, Spotify India and Positive Moves Consulting. The round also saw continued support from existing investors – Pawan Munjal, Hero Group; Westbridge; Nexus Venture; and Everblue Management.

With its latest round of funding, Rapido will make strategic investments in innovation, technology, people, and supply. This would help it to further boost growth in the country and make affordable transportation a reality for masses, the company said.

UpScalio raises $42.5 M in another boost for Thrasio-style model

The rush to build a Thrasio-type platform in India is getting massive investor interest and highlighting this new trend is an e-commerce roll-up company – UpScalio.

The five-month-old firm has raised $42.5 million as part of its Series A round, led by Presight Capital and an undisclosed global hedge fund, with participation from Heliad Equity Partners, MPGI, 468 Capital, Whiteboard Capital.

The funding round also saw capital commitments from a consortium of lenders including freshly-minted unicorn OfBusiness, Innoven Capital, and Alteria Capital. Some of the company’s angel investors and advisors include Suhail Sameer (CEO, BharatPe), Radhika Ghai (Co-Founder, ShopClues), Rohit Kapoor (CEO, OYO India & SEA), Arjun Vaidya (Founder, Dr Vaidya’s), and Erik Podzuweit (Founder, Scalable Capital).

UpScalio aims to be an e-commerce brand investor and operator by partnering with digital-first brands that sell on e-commerce sites such as Amazon, Flipkart, Myntra and Nykaa.

The startup said it will help the brands with multi-marketplace management, digital marketing, branding, logistics, sourcing, finance and business operations, all optimised using advanced analytics. It aims to help the companies’ profitably scale by 5-10x.

Fintech Smallcase raises $40 M from Faering, Amazon & others

Fintech startup Smallcase has raised $40 million in Series C funding, led by Faering Capital as well as new investors Amazon Sambhv Venture Fund and Premji Invest. With this, Amazon has forayed into India’s wealth management sector.

The round also saw participation from existing investors including Sequoia Capital India, Blume Ventures, Beenext, DSP Group, Arkam Ventures, WEH Ventures and HDFC Bank.

The round brings the total capital raised by Smallcase to over $60 million. Sameer Shroff, co-founder and Managing Director at Faering Capital, will join the board of the company.

The funds raised will be used to build investment products and platforms that enable individual investors to participate in the capital markets. The company said it aims to continue building simple, transparent and delightful experiences and platforms while delivering more value to its users and partners.

Gaming platform Zupee raises $30 M in Series B funding

Online skill-based gaming platform startup, Zupee has raised $30 million at a pre-money valuation of $500 million in its Series B funding round. This round of funding was co-led by Silicon Valley-based WestCap Group and Tomales Bay Capital.

This round comes within six months after its Series A round at a $100 million valuation and over 5x increase in the company’s valuation.

With total funds raised now at $49 million, Zupee is backed by WestCap Group, Matrix Partners, Smile Group and Orios Partners. The company has an existing user base of over one crore and the new round of funding will be used to enable scaling efforts through an expanded product portfolio, deepening market reach, and hiring global talent.

Agritech startup AgNext raises $21 M in Series A round

Agritech startup AgNext has raised $21 million in Series A round of funding led by Alpha Wave Incubation (AWI), with participation from existing investors Omnivore and Kalaari Capital.

The funding round provided a 5X exit to a-IDEA, an agribusiness incubator managed by the National Academy of Agricultural Research Management (NAARM), according to a statement from the company. AgNext, which was founded in 2016, had received seed funding from a-IDEA.

The startup plans to use this capital to enter into newer commodities and international markets such as the Middle East, Europe, and South Asia. The funds will also be used for the development of the company’s tech platform Qualix to enable quality-driven trade transactions across the food value chains.

Klub raises $20 M in seed round

Fintech startup Klub has raised a seed funding of $20 million from existing investors 9Unicorns and Sequoia Surge. The funding round also saw the participation of new investors Alter Global and Japan’s GMO VenturePartners.

The company had raised $2 million in a pre-seed round in January led by Surge and multiple angel investors. The new round—which is a mix of equity and capital commitment—makes it one of the largest seed rounds to date in India’s startup ecosystem, according to the company.

Klub said it will deploy Rs 500 crore over the next few quarters in local brands and digital small and medium-sized enterprises. The startup plans to use the fresh capital to expand its team, accelerate development of its tech and data platform, and expand product offerings and market segments.

Healthtech startup Ultrahuman raises $17.5 M, touting a wearable glucose tracker

Fitness startup Ultrahuman has announced a $17.5 million Series B fundraise, with investment from early-stage fund Alpha Wave Incubation (backed by DisruptAD and managed by Falcon Edge), Steadview Capital, Nexus Venture Partners, Blume Ventures and Utsav Somani’s iSeed fund.

Marquee founders and angel investors who also participated in the funding round include Tiger Global’s Scott Schleifer, Deepinder Goyal (CEO and co-founder of Zomato), Kunal Shah (CEO of Cred), and Gaurav Munjal and Romain Saini (Co-founders of Unacademy) among others.

According to Ultrahuman, over a billion people in the world suffer from a​ metabolic health disorder, which contributes to 85 percent of all chronic diseases in the world.

The startup aims to re-invent fitness-tech via its glucose-tracking device. The product branded ‘Cyborg’ is a wearable and subscription service that helps people optimise their exercise and nutrition, based on glucose biomarkers.

True Balance”s NBFC arm raises $15 M in debt funding

True Credits, a Reserve Bank-licensed NBFC of True Balance, on Wednesday said it has raised $15 million in debt funding from investors across India and Korea.

With this, the total debt fund raised by the company stands at $25 million. The second round of investment has come from Pace and E-clear, as well as other investors in Korea to support the company’s expansion in India, the company said.

Clear invests $15 M to build MaxITC for businesses to save input tax credit

Fintech SaaS firm Clear has invested $15 million to build Max ITC for businesses to maximise their savings with ITC claims.

In India, enterprises are paying an extra Rs 8,000 crore in GST payment every month. As per a survey of 200 enterprises by Clear, big enterprises are losing up to 8 percent of their working capital. Vendor non-compliance and delay in filing GST by vendors is the biggest reason for this inefficiency.

Clear built MaxITC, an end-to-end automated solution, to manage input tax credit claims efficiently. Earlier this year, Clear also launched ClearOne, a billing and e-invoicing software for SMEs.

Hashnode raises $6.7 M in Series A fundraise led by Salesforce Ventures

Blogging platform Hashnode has raised $6.7 million in a Series A fundraise led by Salesforce Ventures.

Venture capital investors Sierra Ventures, Sequoia Capital India’s Surge and Accel Partners, as well as angel investors Naval Ravikant (co-founder, Angellist), Des Traynor (co-founder, Intercom), Guillermo Rauch (co-founder, Vercel), Salil Deshpande (general partner, Uncorrelated) and Ed Roman (managing director, HackVC) also participated in the round.

The funding, which follows a $2.1 million seed funding round in December 2020, will be utilised for growing the platform’s user base.

1K Kirana Bazaar raises $7 M in Series A round

Hyperlocal omnichannel grocery chain 1K Kirana Bazaar has raised $7 million in its Series A round led by Info Edge Ventures and Partners of Falcon Edge.

Existing backer Kae Capital along with other investors, including founders of startups such as Blackbuck and BigBasket, also participated in the funding round.

The funds will be used in building technology and expanding its presence of 150 touchpoints to over 1000 kirana store partnerships in the upcoming year, the company said.

Yellow Class raises $6 M from Elevation Capital

Edtech startup Yellow Class has raised $6 million Series A funding led by Elevation Capital.

The round also saw participation from existing investors India Quotient, Titan Capital and First Cheque. The other angel investors include Vidit Aatrey (Co-founder, Meesho), Alok Mittal (Founder, Indifi), Vivekananda Hallekere (Co-founder, Bounce), Maninder Gulati (Global CSO, OYO) Abhinav Sinha (COO, OYO), Dhruv Agarwala (CEO, PropTiger) and Alvin Tse (Country Director, Xiaomi Indonesia).

The startup will use the fresh capital for improving the product experience for both parents and children, and developing more holistic content, building brand awareness, hiring for leadership roles across the product, technology and engineering verticals.

The company aims to expand in over 500 cities in India and international markets.

Rage Coffee raises $5 M in Series A funding from Sixth Sense Ventures

Rage Coffee, which manufactures, markets, and distributes coffee products globally, has raised around $5 million of growth capital as part of its Series A funding round led by Sixth Sense Ventures.

The company plans to expand its online presence and offline footprint across India and will utilise the fresh capital for marketing and distribution purposes. The funds will also be used to scale up production, launch innovative new products and add senior management talent.

According to the company, the Rs 7,000 crore Indian packaged coffee segment is dominated by two players — Nestle and HUL (Nescafe and Bru) — controlling over 65 percent market share of the industry. The lack of innovation in the space is helping Rage become the brand of choice for the next generation of coffee consumers, the company said.

AI job search startup Hiration secures Rs 21 crore

Hiration, an AI-powered job search platform, has raised Rs 21 crore ($3 million) from Prime Venture Partners, Venture Highway and Y Combinator.

The company will use the fresh capital to further develop its product, scale its operations in India and the US and hire across functions.

As per the company, it has already served over 500,000 customers and more than 75 universities globally. It is currently operational in India and the US and apart from directly helping professionals, the company also works with over 75 leading universities.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow