ETtech Deals Digest: Startup funding plummets 90% in April versus last year

Funding in Indian startups showed no signs of recovery in April, as the new financial year kicked off. Companies raised $590 million across 83 rounds, down 90% compared to $5.69 billion that they mopped up across 300 rounds, last year in April, according to data from research firm Tracxn.

Sequentially, the funds raised by Indian startups dropped 67%, compared to $1.77 billion raised across 136 rounds in March.

Walmart-owned fintech major PhonePe’s $100 million raise from New York-based private equity firm General Atlantic formed a major chunk of the total funding received by Indian startups in April. The funding was raised at a $12-billion pre-money valuation, just as in the previous tranches. With that $100 million, General Atlantic and its affiliate funds have invested a total $450 million as part of the current raise.

Late-stage investment in startups stood at $270 million, making up 46% of the total funding secured last month. Early-stage and seed-stage funding stood at $250 million and $43 million respectively.

Sequoia Capital India was the busiest VC during April with four rounds of investments in Doubtnut, Lightmetrics, Metastable Materials and Mayhem Studios. Inflection Point Ventures (IPV) participated in three rounds, while Pi Ventures was a part of two funding rounds.

Here are the biggest startup fundraises of April:

PhonePe chalks up further $100 million from General Atlantic: General Atlantic (GA) infused an additional $100 million in PhonePe on Wednesday as a part of the payments company’s $1-billion primary funding plan and may pump in another $100-200 million, said three people with knowledge of the matter.

Dunzo secures funding via convertible notes, lays off 30% of staff: Reliance Retail-backed quick commerce startup Dunzo has secured funding of $75 million through convertible notes, said several people aware of the matter. The company is also laying off about 30% or over 300 staff besides planning a shift in the business model, employees were told at a town hall.

Saket Modi-founded cyber-risk mitigation firm Safe Security raises $50 million: Safe Security, earlier called Lucideus, said it has raised $50 million in a funding round dubbed Series B and led by Sorenson Capital, a Utah-based venture capital fund. Other investors in this round include Fidelity Investments’ venture capital arm Eight Roads, Telstra Ventures and WTI, said a statement by Safe Security.

Elevation Capital sells $40 million stake in Xpressbees: Malaysia's sovereign wealth fund Khazanah Nasional has picked up about 3% stake in ecommerce focussed logistics firm Xpressbees by paying $40 million through a secondary share sale, sources briefed on the matter said. Elevation Capital, earlier Saif Partners, has part sold its shares to Khazanah, they added.

Binny Bansal’s Three State Ventures leads Rs 300 crore funding in Curefoods: Curefoods, a cloud kitchen startup, said it has closed a funding round of about Rs 300 crore led by Flipkart founder Binny Bansal’s Three State Ventures. The VC firm invested Rs 240 crore in this round, which also saw participation from existing investors IronPillar, Chiratae Ventures, ASK Finance and Winter Capital.

PE firm Amicus invests Rs 225 crore in Aequs: Belagavi-based diversified contract manufacturer Aequs has received an investment of Rs 225 crore ($27.5 million) in a funding round led by the PE firm Amicus Capital. The company’s existing investors also participated in the funding round.

JSW One Platforms raises Rs 205 crore: Conglomerate JSW Group said its technology business JSW One Platforms has secured Rs 205 crore in funding from Japan's Mitsui & Co, valuing the marketplace at Rs 2,750 crore.