Weekly Startup Funding Roundup (November 14 -18)

Indian Startup Ecosystem witnessed a slow but steady rise in venture capital funding in the last week as established ventures and segment market leaders continued to attract investors.

It is important to note that venture capital Investors and angel investors are funding established ventures and market leaders to reduce exposure toward risky investments in newer Startup Ventures. Continuing high volatility in global capital markets and various forecasts of a global economic recession keep investors away from committing large amounts toward new-age Startups.

During the third week of November 2022, the Indian startup ecosystem witnessed total venture funding of 267 million dollars from 30 funding deals. In the previous week, the startup companies in India were only able to raise 217 million dollars, and that too from 26 funding deals. Various funding deals witnessed amounts above 30 million dollars signaling the coming back of large funding deals in the Indian startup ecosystem.

Market analysts expect this trend to continue for a few more weeks as investors will try to park funds in safer and established Startup Ventures. The market also expects an increase in debt funding factor out of total venture funding. Equity capital funding is set to go down more in the coming few weeks.

However, there is a strong likelihood of a steep drop in capital inflow next month given as it marks the holiday season.

Major Funding Deals

Lenstra, Series B – Leading Indian SaaS-based Startup raised 60 million dollars in a series B funding round led by Bessemer Venture Partners, SIG Venture Capital. The funding round also witnessed the participation of Citi Ventures.

Lenstra which was founded in 2019 is one of the fastest-growing SaaS enterprises in India. The company plans to use the funds for expanding operations to the United States of America.

Simplilearn, a Series E – Edtech company raised 45 million dollars (about ₹366 crores) in a Series E funding round led by a consortium that consists of GSV ventures and other players. The round also saw participation from Clal Insurance, and DisruptAD, ADQ’s venture platform.

Simplilearn which was founded in 2010 is based in San Francisco, California, and Bangalore.

Lenskart – Eyewear brand raised 39.6 million dollars in a funding round led by DSP India Fund. DSP India Fund invested 15 million dollars into the eyewear brand. The funding round also witnessed the participation of Chiratae Ventures and Axis Growth Avenues AIF-1  who invested 12.2 million dollars each.

BeatO – New Delhi based Diabetes care provider raised $33 million in a funding round led by Light rock India. The funding round also witnessed the participation of HealthQuad, Orios Venture Partners, Blume Ventures, Leo Capital, and Flipkart Ventures.

NirogStreet – Ayurveda startup raised $12 million from Jungle Ventures, Spiral Ventures, ICMG Co-Creation Fund, and angel investors.