Funding deals got bigger in the middle of July with RentoMojo’s Series B round, Paras Healthcare’s PE round and Vayana’s Series A round. The number of pre-Series A and undisclosed funding rounds steadily climbed, indicating renewed confidence in startups and the problems they’re solving for.
While most deals were in the pre-Series A and seed rounds, the investors were an interesting mix of individuals and startups like Uber and Paytm, besides the usual venture capital firms. News also came in of fintech startup Trupay having raised $700,000 in seed funding from Kae Capital and others in May this year, as per its filings with the Registrar of Companies.
By the end of June, it had become clear that investors were again warming up to funding startups. According to YS Research, the past six months saw about $7 billion raised in funding across 455 deals. While the number of deals declined compared to H1 2016, the average ticket size this year has increased from $4 million to $15 million.
Srinivas Vudayagiri of PE firm Peepul Capital points out that while e-commerce and fintech have been big this year, several other sectors have also got investors’ attention. Startup mentor and investor Sanjay Anandaram believes that sanity has begun to prevail and believes the trend will continue at least up until the first half of 2018.
The startups that raised funding this week include, in no particular order:
1. Raincan’s pre-Series A funding of $270,000
Raincan, the Pune-based subscription startup for delivery of fresh and perishable items, raised pre-Series A funding led by Prabodh Agarwal, Group CFO, IIFL Holdings, and existing investor, Dr. Aniruddha Malpani. The team intends to use the money to expand delivery operation centres and set up a state-of-the-art logistics platform to facilitate deliveries at the lowest possible cost.
2. RentoMojo’s Series B round of $10 million
RentoMojo, which leases out furniture, two-wheelers and home appliances, raised Series B funding of $10 million from Bain Capital Ventures and Renaud Laplanche. Existing investors Accel Partners and IDG Ventures also participated. This round of funding will be used to further strengthen the product, finish building a leadership team, and expand into new categories and geographies. The round brings the total funds raised by the company to $17 million.
3. PlayAblo’s pre-Series A funding of $600,000
PlayAblo, a Bengaluru-based edtech startup, raised pre-Series A funding of $600,000 from ABI-Showatech India. The company creates gamified solutions to help school students understand concepts better. According to a press release, the funding will be used primarily to upgrade its technology platform and optimise product development initiatives, apart from investing in infrastructure.
4. MobiQuest’s pre-Series A funding from Paytm
MobiQuest Mobile Technologies raised an undisclosed amount of funding from Vijay Shekhar Sharma’s One97 Communications, the parent company of fintech heavyweight Paytm. The money has been raised for MobiQuest’s loyalty platform, m’loyal, which lets brand design app-based loyalty programmes. It essentially integrates with point-of-sale (PoS) and other social, mobile and web channels to capture consumer data, which is then used to improve returns on marketing spends.
5. Ambee’s pre-Series A funding from Amaya Capital and Uber
Hyderabad-based ambulance aggregator Ambee raised an undisclosed amount of funding from Amaya Capital Ventures and Uber technologies to further expand its business. Travis Kalanick, founder and former CEO of Uber, had committed to investing in Ambee late last year.
6. Vayana Network’s $4mn in Series A, led by Jungle Ventures, IDG
Pune-based digital trade financing network Vayana raised $4 million in a Series A round, led by IDG Ventures. The platform allows buyers and sellers to get their trade transactions filed, financed and reconciled easily.
7. Increff’s $2 million, led by Sequoia Capital
Increff, the fashion supply chain solutions provider, raised $2 million in seed funding, led by Sequoia Capital. A group of angel investors and GreyOrange Robotics also participated in this round. The team intends to use the money grow its customer base, hire a tech team and enhance its product offerings.
8. Paras Healthcare’s $42 million from affiliate of PE firm Creador
Gurugram-based healthcare provider Paras Healthcare raised $42 million (Rs 275 crore) through an affiliate of private equity (PE) firm Creador III LP. The funds will primarily be used for expansion and growth across different regions.