ETtech Deals Digest: tech slowdown continues, startup fundraising dropped 75% in January compared to last year

On a month-on-month basis, Indian startups registered a 13% jump from December as companies received a total of $1.05 billion in funding, according to data provided by market intelligence platform Tracxn.

A majority of investments in January came for the late-stage startups, with $845 million being poured across 14 rounds.

Startups raised $254 million in early-stage funding across 27 deals, while $90.3 million was raised in seed stage round over 81 deals.

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PhonePe’s $350 million raise from General Atlantic at a valuation of $12 billion, was the biggest deal in January, giving a major bump up to overall numbers. The fintech’s funding made up for almost 30% of the total amount raised for the month.

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According to Tracxn data, Accel Partners was the busiest VC last month, closing five deals including Rigi, Beaconstac, Brick & Bolt, Breathe Well-Being and FreeUp.

Here is a list of the biggest funding rounds for January 2023:

PhonePe raises $350 million funding from General Atlantic: Digital payments major PhonePe said it has raised $350 million in funding from global private equity firm General Atlantic at a pre-money valuation of $12 billion, making it the most valuable privately held Indian fintech firm. The investment marked the first tranche of an up to $1 billion fundraise that started last month, with other global and Indian investors also participating in the round, the company said.

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KreditBee raises $120 million funding in new tranche from Advent International: Credit-based fintech startup KreditBee raised $120 million more from investors in Series D funds, taking the size of the round to $200 million. US-based private equity giant Advent International has invested $100 million in this tranche while others have put in an additional $20 million, the Bengaluru-based company said. This makes it one of the largest capital infusion rounds the Indian startup industry has seen amid the ongoing funding crunch.

Enzene Biosciences raises $50 million: Biotech company Enzene Biosciences, a subsidiary of Mumbai-based drug maker Alkem Laboratories, has raised $50 million (or roughly Rs 408 crore) in fresh equity funding from Eight Roads Ventures and healthcare investor F-Prime Capital. Alkem Laboratories has also invested in the fresh round. In a press statement, Enzene said it would leverage the fresh funds to enhance its manufacturing capabilities and drive expansion in its core market of India and the US.

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Log9 raises $40 million: Electric vehicle (EV) battery startup Log9 has raised $40 million led by Amara Raja Batteries and Petronas Ventures.The company has been valued at $250 million after the funding round, cofounder Pankaj Sharma told ET. The funding is a mix of debt and equity and other investors such as Incred Financial Services Private Ltd, Unity Small Finance Bank, Oxyzo Financial Services Private Ltd and Western Capital Advisors Private Ltd, also participated in the round.

Lending startup SarvaGram raises $35 million: Rural household-focussed lender SarvaGram Solutions closed its Series C funding round at $35 million, led by venture capital fund Elevar Equity. Other investors that participated in the round were Elevation Capital, Temasek and TVS Capital Funds, according to a statement. The company last raised $10 million in its Series B round in February 2021, led by Elevation Capital and Elevar Equity.

AI firm Mad Street Den raises $30 million: Enterprise AI company Mad Street Den (MSD) has raised $30 million in its Series C funding round, led by Avatar Growth Capital. Existing investors Sequoia Capital and Alpha Wave Global (formerly known as Falcon Edge Capital) also participated in the latest round. The investment will enable it to expand its artificial intelligence (AI) offerings across industries, the company said.

Specialty coffee startup Blue Tokai raises $30 million: Blue Tokai Coffee Roasters has raised $30 million (Rs 245 crore) in its latest funding round, led by Mumbai-based investment firm A91 Partners. White Whale Ventures, and existing investors including Grand Anicut Fund and 8i Ventures, also participated in the funding round, which also saw some angel investors sell shares. The coffee brand is expected to have been valued at Rs 650 crore, post the investment round.

Illustration and graphics by Rahul Awasthi