Deal roundup: Perfios Software tops charts in a lacklustre week for startup funding

Volatility continues to remain a constant factor in startup funding activity as the total deal value suffered a near 60% drop this week with a total of 13 firms raising $133 million compared to $327 million deployed across 18 deals last week. The overall funds raised by companies oscillated in a broad range of $19 million to $327 million throughout October and November.

This week marked four Series B rounds by startups such as Perfios Software Solutions, WMall, Medikabazaar and EasyRewardz. Angel investment scene also improved this week as startups including myHQ, Quikkloan and Food n i raised seed funding from various angels.

Other than share issues, micro business lender Aye Finance raised funds via debt while Grofers India raised funds from a Time Group holding company in a warrants issue.

Complementing the robust fundraising by startups, venture capital firm India Quotient closed two funds at $60 million and $40 million while Fireside Ventures announced the first close of its second fund at $60 million.

Top funding deals

Aye Finance: The non-banking finance company, which lends to micro-enterprises, raised $17.4 million via a non-convertible debenture issues to Dutch Development Bank FMO. With the last fundraise, the company so far raised $238 million. It will use the funds to increase its lending to women-run small enterprises through a gender finance programme.  

Perfios Software Solutions: The software maker raised $50 million in a Series B round from new investor Warburg Pincus and returning investor Bessemer Venture Partners. A part of the round also involved purchase of secondary share sale by existing investors. With the latest fund infusion, the company has so far raised $60 million.

Grofers India: The grocery retailer raised $20 million from media conglomerate Bennett Coleman & Co through a warrant issue. In May this year, it raised $200 million from Japan’s Softbank along with returning investors Tiger Global Management, Sequoia Capital India and KTB Investments

Medikabazaar: B2B medical supplies platform raised $15.8 million in Series B round from Healthquad, Belgium-based Ackermans & Van Haaren, Rebright Ventures, and Toppan Printing Co. Existing investors include CBC Co, Elan Corporation, Mitsui Sumitomo Insurance Venture Capital, and Kois Invest. Angel investors Sunil Kalra and Arun Venkatachalam also participated in the round.

EasyRewardz: The SaaS-based platform which manages customer engagement and rewards raised an undisclosed sum in Series B round from Walmart-owned e-commerce major Flipkart. The company will use the funds to expand geographically and also to improve its product offering.

WMall: Blitzscale Technology Solutions, which owns online B2C vernacular social ecommerce platform WMall, raised $8.9 million in a Series B round from SAIF Partners, and existing investors Chiratae Ventures and VH Capital. It had raised $1.7 million in a Series A round from returning investor in February this year.

Digital Mall of Asia: The company, which offers a virtual mall experience, has raised $3 million from real estate investor Satish Jain through Amour Infrastructure. Pegged to launch in January 2020, the platform offers to provide an online presence for physical store owners for fixed monthly rent of Rs 10,000. The company will use the funds to ramp up product development and branding.

TravelTriangle: South Korean KB Growth Platform Fund and returning investor Nandan Nilekani-owned Fundamentum Partnership led a $13 million growth round in the online marketplace for holiday packages. Existing investors SAIF Partners, Bessemer Venture Partners and angel investors also participated in the round. The company will use the funds for adding more destinations, technology enhancement and branding.

Quikkloan: The fintech startup raised an undisclosed amount in a seed round from a clutch of angel investors. Arun Diaz, advisor at venture capital firm Aavishkaar; Asif Ahsan Khan, CEO of pharmaceutical engineering company Fab Technologies; and Sanjay Budhwar, corporate consultant, participated in the round.   

Furtados School of Music: The Mumbai-based music education firm raised $2.7 million in a funding round led by IAN Fund, along with returning investor Singapore-based venture capital firm DSG Consumer Partners. The company will use the funds to expand its network of 200 schools across 14 cities.

Curefit: The health and fitness startup raised about $500,000 in a Series D round from Bengaluru-based FPGA Foundation. In June, it raised $120 million in a Series D round from investors including Epiq Capital and Unilever Ventures among others.

Food n i: Controture eCommerce-owned B2B food and hospitality startup raised an undisclosed amount in a seed round from angel investors Sanjay Jesrani, founder and CEO of investment advisory firm Go North Ventures; Varun Dua, CEO of insurance aggregator Acko; Feroze Mohammad, COO of Hitachi Consulting; and Premanshu Singh, CEO of Coverfox Insurance.

myHQ: Justwork Technologies-owned co-working space provider myHQ raised $1.5 million in a seed round from Mumbai-based venture capital firm India Quotient’s Fund III

Multibhashi: The Jaipur-based language learning platform raised an undisclosed sum from Japan-based RareJob, which offers online tutorials for English

Funds

India Quotient: The Mumbai-based venture capital firm, founded by former Seedfund executive Anand Lunia, raised $60 million for its third successive fund, Fund III. Flipkart co-founder Binny Bansal, RB Investments, family offices, entrepreneurs, funds and angels from China, and high networth individuals participated. It also raised $40 million at the first close of its Opportunities Fund to invest in Series B and growth rounds of its portfolio companies. Investment came mainly from clients of Kotak Wealth. With the latest fundraise, IQ’s has over $200 million funds under management.     

Fireside Ventures: The venture capital firm raised commitments worth $60 million as part of its first close of its second fund, Fireside Fund II, which is targeting to raise $100 million. The firm focuses its investment in homegrown consumer product startups. The fund is aiming to replicate the success of the first fund by investing in millenial brands. It also announced its first investment in Gynoveda Femtech, an ayurveda-based personal care brand for women.

M&A

InCred Capital: The Mumbai-based NBFC acquired the Dubai wealth management of L&T Capital, making its foray into asset and wealth management and investment banking. The move follows its acquisition of Reliance Wealth and launch of $100 million credit fund.