Deal Roundup: FreshToHome, Flexiloans, InVideo lead dealmaking rebound

With $226.5 million raised across 22 deals, startup dealmaking made a quick recovery in the fourth week of October after funding volumes crashed 90%   in the previous week.

The near eleven-fold increase was led by Bengaluru-based online fresh fish, meat and vegetable retailer FreshToHome Foods that pocketed $121 million in a growth round, which accounts for over half of week’s overall funding volumes. Three startups did not disclose the amount they raised.

Besides FreshToHome, SME lender FlexiLoans, video creation platform InVideo, Business-to-business (B2B) grocery startup Jumbotail, and HR-tech platform BetterPlace secured double-digit million rounds this week.

On the mergers and acquisition front, two of India’s largest Information technology (IT) houses – Tech Mahindra and Wipro – have made startup acquisitions this week.

Funding

FreshToHome: Five-year-old FreshToHome bagged $121 million in a growth round to fuel its expansion in India and the Middle East. The round led by Investment Corporation of Dubai (ICD), the principal investment arm of the Government of Dubai; global alternative asset manager Investcorp; homegrown private equity firm Ascent Capital; US International Development Finance Corporation (DFC); venture capital firm Iron Pillar, Indian meat processor and exporting firm, Allana Group  and other investors.

Flexiloans: Small and medium enterprise-focused lending platform Flexiloans raised $20.34 million in debt and equity financing. The Falguni and Sanjay Nayar family office -- the personal investment arm of KKR India head Sanjay Nayar and Nykaa founder Falguni Nayar -- was the lead investor in the round, financing the entire equity portion. The company did not disclose the details of the other investors in the round.

InVideo: Mumbai based video creation platform InVideo landed $15 million in a Series A round led by returning investor Sequoia Capital India. New investors joining the round include Tiger Global, Hummingbird, RTP Global and Palo Alto based seed stage venture capital firm, Base Ventures.

Jumbotail: B2B grocery delivery startup Jumbotail secured $11 million in an ongoing round led by omni-stage venture fund Heron Rock and Jumbofund. Nexus Venture Partners, Siddhi Capital, Reaction Fund, Pimpernel Holdings and a group of HNIs (high net-worth individuals) also participated in the round.

BetterPlace: Bengaluru-based blue-collar workforce management services BetterPlace raised $10 million in a Series B round of funding led by Singapore-based Jungle Ventures with participation from existing company investors Unitus Ventures, 3One4 Capital, and Venture Highway Capital.

M&A

Tech Mahindra: The Pune-based IT giant made strategic acquisition of two overseas startups – Melbourne based digital enterprise technology firm Momenton (for $10.18 million) and Auckland headquartered technology consulting firm Tenzing ($29.58 million). The company said it has acquired 100% equity in both the organisations and will utilise their services for better digital capabilities, build modern cloud-based architecture and provide digital transformation services for customers in the Australian and New Zealand regions.

Wipro: IT major Wipro announced the acquisition of Encore Theme Technologies, a software-as-service (SaaS) and cloud solutions provider for the financial services sector, for $12.8 million. Encore Theme provides trade finance solutions, developed by UK financial technology firm Finastra, to clients in India, the Middle East, Africa and the Asia Pacific region.

REA Group: Media conglomerate News Corp’s Australian digital advertising arm REA Group said it will acquire a controlling stake in Elara Technologies, which runs online real estate businesses such as Housing.com, Makaan.com and PropTiger Realty. The deal, which includes an undisclosed amount of cash and newly issued shares, is expected to close in the current quarter. Elara will operate as a stand-alone entity within the REA Group structure.

Funds

NTTVC: The Palo Alto, California based NTTVC, an independent venture capital firm set up by former Norwest Venture Partners executive Vab Goel in collaboration with Japanese technology firm NTT, announced the creation of a $500 million fund. It invests across all stages and sectors, with an emphasis on the future of enterprise, digital health and artificial intelligence, machine learning and data-based innovations. NTTVC said it has already backed five startups such as mobile networks firm Celona, electronic stethoscope provider Eko, biotech startup nference, DevOps company Shoreline and non-invasive biometrics platform UDP Labs.

P&G: Cincinnati, Ohio based consumer goods major Procter and Gamble (P&G) has created an India Growth Fund worth $54 million to partner with its existing as well as new suppliers for its supply-chain and manufacturing needs. The new fund is part of its Indian arm’s vGROW initiative, a programme through which it selects and partners with startups, organisations and individuals on industry solutions.