ETtech Deals Digest: Indian startups raise $304 million this week

The funding landscape for Indian startups continues to remain bleak, with new-age companies managing to raise only $304 million across 19 rounds this week. This is a 29% decline from the same period last year, when investments poured in at a much higher rate with a total of $427 million coming in from 77 rounds.

Sequentially, funding activity dipped 17%, compared to $366 million raised across 31 rounds, last week.

Of the total funding raised this week, late-stage funding accounted for $171 million, making up 59% of overall funding activity. Early-stage investments constituted over one-third of the funding activity, with $104 million injected into the early-stage startup ecosystem. Seed-stage funding accounted for $18.6 million, representing 6% of the total funding activity.

Blume Ventures was the busiest VC firm this week, having participated in four rounds, including Leverage Edu, Battery Smart, Smartstaff and Freakins.

Here are the startups that got funded this week:

Veritas Finance raises Rs 1,200 crore: Veritas Finance Private Limited has raised Rs 1,050 crore from Multiples Private Equity along with co-investors including International Finance Corporation (IFC) to expand access to capital for India’s micro, small and medium enterprises.

Jewellery brand Giva raises Rs 200 crore from Premji Invest: Giva Jewellery raised Rs 200 crore in a Series B funding round led by Premji Invest. The round also saw participation by existing investors Aditya Birla Ventures, Alteria Capital, and A91 Partners. The jewellery maker also reportedly conducted a secondary sale transaction worth Rs 70 crore.

Battery Smart raises $33 million: Battery-swapping firm Battery Smart said it had raised $33 million from investors in a 'Pre-Series B funding round'. The round saw investments by existing investors Tiger Global and Blume Ventures as well as new ones like The Ecosystem Integrity Fund (EIF) and British International Investment (BII).

KaarTech raises $30 million: Digital transformation startup KaarTech has raised $30 million at a valuation of around $90 million from A91 Partners. The deal is the first external funding for KaarTech. Over 80% of the fund in this round was raised by issuing fresh shares, while the rest came from a secondary sale of shares by founders and employees.

ETS leads funding round in global study abroad company Leverage Edu: Global education testing and assessment organisation Educational Testing Service (ETS) has led a new funding round in study abroad platform Leverage Edu, at least three sources told ET. The equity portion is estimated at $25-27 million, with overall fundraise including debt touching $40 million. The funding round is likely to value the startup at roughly $150 million post-money.

Cavli Wireless bags $10 million from Chiratae, Qualcomm Ventures: Cellular module manufacturer Cavli Wireless has raised $10 million as part of its latest funding round, which was led by Chiratae Ventures and Qualcomm Ventures. The funds will be utilised to expand the company’s product portfolio, enhance research and development capabilities, and widen its international presence.

Smartstaff raises fresh equity from returning investors: Blue-collar staffing platform Smartstaff said it has raised $6.2 million from Nexus Venture Partners, Arkam Ventures, Blume Ventures and Alteria Capital. The funding included $5,00,000 of debt funding from Alteria Capital, founder and CEO Arpit Dave told ETtech. Alteria Capital was the only new investor in the funding round.

Freakins picks up $4 million from Matrix Partners, Blume Ventures: Direct-to-consumer denimwear brand Freakins said it had raised $4 million in a funding round led by Matrix Partners India and Blume Ventures. The Mumbai-based startup will utilize the funds to enhance its supply chain capabilities by tying up with factories specializing in denim, knits, and woven fabrics.