ETtech Deals Digest: HealthQuad, IndMoney, Games24x7 raise funds

HealthQuad has raised $162 million in the final close of its second fund


HealthQua, a healthcare venture capital firm, has raised $162 million (Rs 1,215 crore) in the final close of its second fund. The firm, which counts Medikabazaar, Ekincare, Healthifyme and Qure.ai in its portfolio of invested companies, has got global pharma maker MSD (Merck & Co, Inc.) as its anchor investor for the new fund, a top company official told ET.

The firm raised more than double the initial target of the fund, reflecting keen interest from the global investors.

The firm will look at launching its third fund by the end of the next calendar year, by when it is expected to have largely deployed the second fund. In 2016, it had raised Rs 75 crore under its first fund and invested Rs 250 crore along with investors in seven Indian companies, such as Medikabazaar, THB, Regency Hospital, HealthifyMe and Impactguru.

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Previously,
HealthQuad had raised Rs 1,134.5 crore towards the pre-final close of its second funding round.

IndMoney closes $86 million funding, valued at $650 million


IndMoney has raised an additional $11 million as part of its ongoing funding round, led by Singapore-based Sixteenth Street Capital.

The company has closed its ongoing fundraise at $86 million, valuing it at $650 million post-money.

ET reported on January 17 that the company will get another $10 million from new investors. The company had then
raised $75 million from existing investors including Steadview Capital, Tiger Global and Dragoneer Investment Group.

IndMoney has so far raised a total of $144 million. The company has four million registered users and says it has facilitated $1.1 billion in investments.

Founded in 2019, the company allows users to track and organise their finances on a single platform and helps them invest across various financial instruments including mutual funds, fixed deposits, bonds and US stocks. It also helps users with wealth planning.

In the next quarter, the company is looking to launch a credit-card-based product for users, linked with its neo-bank. It has also received the necessary licences to roll out its stock trading platform, which will allow users to invest in Indian equities.

Games24x7 raises $75 million at $2.5 billion valuation

Gaming platform
Games24x7 has raised $75 million in a funding round that was led by Malabar Investment. The latest investment values the multi-game platform at $2.5 billion, catapulting it into the unicorn club. Dream11 and Mobile Premier League are the other two unicorns in the online gaming sector.

The funding round also saw participation from existing backers Tiger Global and Raine Group.

“We will use the funds to accelerate user growth,” Pandya, cofounder, and co-chief executive offier, told ET. “ While our existing businesses continue to do well, we want to do much better. So, we will obviously focus on those. Simultaneously, we will look at launching more games – both for the Indian markets and international markets – as we want to diversify our skill gaming portfolio even more.

In August last year,
Games24x7 had made a strategic investment in CricHeroes, a performance analysis platform focused on grassroots cricket ecosystem.

The company has more than 100 million users and claims to be one of the fastest growing online gaming companies in India.

Edtech startup Classplus raises $70 million in funding as valuation jumps to $600 million

Edtech startup Classplus, which helps educators and content creators launch online courses, has
raised $70 million in its latest round of funding co-led by Alpha Wave Global and Tiger Global. Classplus’ valuation is estimated to be roughly $600 million after the latest funding round.

According to the company, it will deploy the fresh funds to expand its presence globally, while investing in new acquisitions and partnerships.

Founded in 2018 by Mukul Rustagi and Bhaswat Agarwal, Classplus is a software platform that allows educators and content creators to build their online presence, digitise their offline tuition centers and sell their courses online.

The new round of growth capital comes only eight months after the company
mopped up $65 million in June last year.

At present, Classplus said that 75% of its educator base comes from Tier 2 Indian cities and beyond. It serves more than 100,000 educators and content creators from over 3,000 towns and Indian cities.

Financial services firm Finova Capital bags $65 million in funding from Norwest, others

Non-banking financial company
Finova Capital has raised $65 million from Norwest Venture Partners, Maj Invest and Faering Capital, a senior company official said.

Of the total capital, Norwest Venture (NVP) brought in $45 million, with the rest coming from other new and existi ..

The micro, small and medium enterprises or MSME-focused lender will use the funds to grow its loan book, invest in technology, expand geographically and further its vision of enabling financial inclusion at scale.

In 2020, the company had
raised $35 million from investors led by Sequoia Capital.

Founded in 2016 by Mohit Sahney and Sunita Sahney, Finova Capital has 180 branches spread across 8 states in west, north and central India. It has 20,000 plus customers and more than Rs 1,000 crore loan book. “ Finova continues to expand to its neighbouring regions, utilizing and building on its internal domain knowledge and processes,” a company statement said.

Finova is backed by 34 banks, NBFCs and AIFs.

Vivriti Capital bags $55 million in funding from existing investors


Vivriti Capital, a mid-market lender,
has raised $55 million (around Rs 400 crore) from some of its existing investors, Lightrock India and Creation Investments in a new funding round.

With this latest round of funding, Vivriti Capital has cumulatively raised $165 million since its inception.

The funds will be used for business expansion as well as technology for acquisitions, product delivery and portfolio management. Part of the funds will go to its subsidiary, Vivriti Asset Management, which will use it to enhance the asset management platform focused on performing credits.

Founded by Gaurav Kumar and Vineet Sukumar in 2017, Vivriti is a non-deposit taking NBFC and it lends out of its balance sheet. The NBFC as well as AMC have already established leadership positions with $700 million in AuM and commitments and debt lines from top ten banks in India as well as leading international debt investors.

Pine Labs raises $50 million from PE major Vitruvian Partners at a valuation of $5 billion


Digital payments and financial service provider
Pine Labs has closed another $50 million in funding from London’s private equity major Vitruvian Partners at a valuation of just over $5 billion, according to regulatory documents in Singapore and people briefed on the matter.

Last month, it had closed
a $150 million financing from Alpha Wave Global (previously Falcon Edge) which also included a secondary share sale. The company led by fintech veteran Amrish Rau was valued at over $5 billion after this funding.

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The fresh funding includes a $15 million Esop (employee stock ownership programme) buyback at the Noida and Singapore-based firm ahead of its planned IPO (initial public offering) in the US.

Pine Labs is looking to raise around $500 million from the public markets, at a valuation of $6-7 billion.

Other key deals

■ Pep Technologies, which owns online personal care brand
mCaffeine, has
raised $31 million (Rs 240 crore), led by Paragon Partners. Singularity Growth Opportunities Fund, Sharrp Ventures and existing investors Amicus Capital Partners and RPSG Capital Ventures also participated in the round. The startup is now valued at Rs 1,000 crore.

Mcaffeine will utilise the funds to grow its offline presence to 25,000 outlets from its existing 5,000, expand its sales team, and acquire at least two beauty brands, co-founder Sharma told ET.

■ Chennai-based digital supply chain startup
Wiz Freight has
raised $36 million (Rs 275 crore) in a funding round led by Tiger Global with participation from Axilor, Foundamental, Arali Ventures, Stride Ventures and Alteria Capital. The company plans to expand into 15 countries in Southeast Asia, West Asia and Africa. The company also plans to double headcount and set up two research centres in AI, blockchain and connected devices in Singapore and Bengaluru.

■
OneCode, a platform that provides on-ground resellers to financial firms, has
raised $13 million (or Rs 100 crore) as a part of its latest round of funding led by General Catalyst. The company plans to use the capital to invest in hiring across functions and accelerate its product and technology development. With the investment, OneCode will be expanding its presence to 100 additional cities and will increase the size of its agent network.

■
Paperplane, an AI-first digital clinic, said on Tuesday it has
raised Rs 3 crore in a funding round led by Cornerstone Venture Partners Fund. The round also saw participation from existing investors LetsVenture and 100X.VC, and various angel investors. The Bengaluru-based firm plans to use the fresh funds to enhance its sales capabilities and for product development.