Deal Roundup: Razorpay, Druva, Chargebee raise growth rounds; Tech Mahindra buys DigitalOnUS

Bengaluru based fintech startup Razorpay topped the funding charts this week with a $160 million round, led by returning investors Sequoia India and Singaporean sovereign wealth fund GIC.

Ribbit Capital and Matrix Partners also participated in the round, which has tripled the startup’s valuation to $3 billion in less than six months. Razorpay attained the coveted unicorn status ($1 billion valuation) after it raised a $100 million Series D round of funding in October 2020, making it one of the fastest valuation increases in the Indian unicorn space.

Overall, startups in the technology space in India secured about $581.4 million across 22 deals this week, extending the upward trend seen over the past month.

India born and Sunnyvale, California-headquartered cloud security provider Druva saw its valuation grow to $2 billion with its latest round. The company raised $147 million in a growth round led by global investment group Caisse de depot et placement du Quebec (CDPQ).

San Francisco, California and Chennai based revenue management and subscription billing platform Chargebee also entered the unicorn club this week. It bagged $125 million led by new investor Sapphire Ventures and returning investors, Tiger Global Management and Insight Venture Partners. With the fresh capital, the software-as-a-Service (SaaS) platform is valued at $1.4 billion, almost three times the valuation it had received in its previous round of funding led by Insight Venture Partners in October 2020.

Gurugram headquartered healthcare startup Pristyn Care landed $53 million this week, doubling its valuation to $550 million in six months. Tiger Global Management led the round which also saw participation from returning investors Sequoia Capital, Hummingbird Ventures and Epiq Capital.   

Startup dealmaking has picked up pace in the last couple of weeks. The first full week of the month saw as many as six India-born technology companies racking up valuations north of $1 billion. The six companies together raised $1.5 billion, accounting for more than half of the record $2.5 billion deployed by a myriad of investors during the week.  

In the following week, startups raised a total of $530 million across 25 deals.  

On the acquisition’s front, Tech Mahindra made a significant deal this week, snapping up hybrid cloud automation and DevOps services provider DigitalOnUS for $120 million.

It picked up a 100% stake in DigitalOnUS through an all-cash deal. The strategic acquisition is expected to strengthen Tech Mahindra’s offerings in hybrid-cloud digital transformation segment, and add DevOps and cloud native development capabilities.

Morgan Stanley Infrastructure fund-backed iBus Network and Infrastructure acquired Ubico Networks from Shyam Group for about Rs 100 crore. iBus has acquired a 100% stake in Ubico, including its in-building and in-campus neutral-host infrastructure business and all related assets, in the all-cash deal.

IntrCity SmartBus, a fleet of branded buses, acquired Delhi-based in-bus applications and telematics platform GoldSeat.  

The week also saw two acquihires. Sequoia Capital-backed fantasy gaming and esports platform Mobile Premier League (MPL) bought New Delhi-based GamingMonk and small and medium enterprises-focused payments services company Instamojo acquihired Bengaluru-based virtual theatre platform Showman.