Deal Roundup: Startup funding slumps despite mega Dream11 deal

After recording the year’s highest weekly deal value, fundraising in the technology startup sector has dropped 37.5% week-on-week.

Investors pumped in $431 million across 16 deals this week, while three startups did not disclose the amount raised.

Fantasy gaming platforms led dealmaking this week. Dream11 parent Sporta Technologies contributed to 52% of the total fundraise, with primary rival Mobile Premier League (MPL) featuring in the second place.

Amazon-backed digital insurance startup Acko, virtual events and meeting platform Airmeet, cashback and coupon site CashKaro, and omnichannel baby care products brand The Moms Co also raised large rounds.

The period saw Walmart-owned ecommerce major Flipkart raising $62.8 million from Chinese technology giant Tencent as part of the ongoing $1.2 billion funding round.

On the merger & acquisition front, edtech giant Byju’s acquired 3D virtual lab tools provider LabInApp; vernacular social media platform ShareChat bought video production firm HPF Films; and student accommodation platform Stanza Living acquired YourShell.

Funding:

Dream11: Dream Sports (Sporta Technologies), the company that owns fantasy gaming platform Dream11 and multi-sport aggregator platform FanCode, raised $225 million in a funding round from an investor consortium consisting of Tiger Global Management, TPG’s technology investment vehicle TPG Tech Adjacencies, ChrysCapital and Footpath Ventures. The investment was a combination of a secondary and primary capital infusion.

MPL:  M League, which runs the MPL platform, raised $75 million in a funding round led by private equity firm SIG Global India Fund. Returning investors, including venture capital firms Beenext and PennBrook Capital, along with Bae Growth, participated in the round. Other investors in the round included GV Games, MDI Ventures and CE Ventures.

Acko: Mumbai-based digital insurance startup Acko Technology & Services raised $60 million in a growth funding round led by San Francisco-based Munich Re Ventures, the corporate venture capital arm of Munich Reinsurance. Returning investors in this round included US retail giant Amazon, former SoftBank executive Kabir Misra's RPS Ventures, and Intact Ventures, the corporate venture arm of Canada's largest provider of property and casualty insurance Intact Financial Corporation. The post-money valuation of the four-year-old startup approached $500 million.

Airmeet: Sequoia Capital led a $12 million Series A round in virtual events and meeting platform Airmeet, with participation from California headquartered Redpoint Ventures, and returning investors Accel India, Global Founders Capital and Venture Highway, along with DoorDash executive Gokul Rajaram.

CashKaro: Gurugram-based CashKaro raised $10 million in a Series B funding round led by Korea Investment Partners (KIP). The round also witnessed participation from returning investor Kalaari Capital.

The Moms Co: The Delhi-based firm raised $5 million in a Series B round led by returning investors DSG Consumer Partners and Saama Capital.

Other startups that raised capital this week include Zuper, Farmers Fresh Zone, EkAnek, Newton School, Invento, Dozee, Zimyo, mCaffeine, Cub McPaws, SignalX, GenieTalk, AFK Gaming and SuperCric.

M&A

Byju’s-LabInApp: Online learning platform Byju’s acquired edtech firm LabInApp Technology, which runs an eponymous platform to help students to learn science concepts through 3D virtual laboratory tools. The financial details of the deal were not disclosed. LabInApp offers 3D interactive virtual laboratory tools that help students and teachers perform science experiments on computers or mobile devices.

Stanza Living-YourShell: Student accommodation platform Stanza Living acquired peer YourShell for an undisclosed amount. YourShell offers rental accommodation in and around universities.

ShareChat- HPF Films: ShareChat bought video production firm HPF Films, which specialises in digital content, for an undisclosed amount.  The acquisition is expected to help ShareChat and its short videos app Moj strengthen content operations, creator engagement and brands solutions.