Here are 10 Mumbai-based startups that raised funding during the lockdown
Even as the coronavirus pandemic caused investors to become risk-averse, Indian startups continued to raise funding. However, the deal sizes shrank, pointing to the fact that investors put in less money in more startups to spread their risks.
Delhi-NCR, Bengaluru, and Mumbai retained their top spots in terms of the number of deals and funding raised. YourStory Research data revealed that the number of funding deals closed by Mumbai-based startups jumped about 20 percent to 79 in the first six months of 2020, up from 66 deals in H1 2019.
According to data accessed by YourStory, 69 deals were closed by Mumbai-based startups since the nationwide lockdown, announced at the end of March.
Here are the top 10 funding deals by Mumbai-based startups funding during the lockdown. (We have considered deals that were closed since March 25)
In July, NBFC InCred raised Rs 500 crore in debt funding from various public sector banks and public financial institutions.
The latest round of financing will boost the startup’s lending expansion across select segments in the consumer, education, and MSME markets.
Founded in 2016 by Bhupinder Singh, InCred started its operations with consumer lending in March 2016. It then diversified into small business lending in March 2017. At present, it claims to have a loan book of over Rs 2,000 crore.
In April 2019, the digital lending platform had raised Rs 600 crore in its Series A round, led by Dutch development finance institution FMO.
In April 2020, cloud kitchen operator Rebel Foods raised $50 million from existing investor US-based hedge fund Coatue Management, according to its filings with the Registrar of Companies.
Founded by Jaydeep Barman and Kallol Banerjee in 2010, Rebel Foods has overseas operations in Southeast Asia and Europe. Globally, it runs 325 cloud kitchens.
Earlier this February, the startup had raised additional venture debt of Rs 35 crore led by debt funding firm Alteria Capital.
In July, edtech startup Toppr raised Rs 350 crore in Series D round, led by Foundation Holdings, with participation from existing investors, including Kaizen Private Equity.
Toppr will use this latest investment to further help to develop the artificial intelligence (AI) based Toppr School Operating System (OS), a platform for schools to run digitally unifying in-school and after-school learning to create a standardised and personalised experience.
Founded in 2013 by Zishaan Hayath, the startup has cumulatively raised Rs 700 crore to date.
In June, online automobile classifieds platform CarTrade raised Rs 321 crore ($42.5 million) from two of its existing investors in its Series H round of financing.
Earlier in 2017, the firm had raised Rs 370 crore in a funding round led by Temasek Holdings and a US family office.
Founded in 2006 by Vinay Sanghi, the portal also offers car price information, certification, insurance, used car finance, comparisons, on-road prices, and reviews. In November 2015, the platform acquired CarWale, an online classifieds portal, in an all-cash deal.
In August, edtech startup LEAD School raised $28 million in a Series C round, led by Westbridge Capital along with existing investor Elevar Equity.
This round of funding will be used by the company to accelerate the development and rollout of new product offerings, increase its school network in Tier II and III cities, and hire talent across domains.
Founded in 2012 by Sumeet Mehta and Smita Deorah, LEAD School combines technology, curriculum, and pedagogy into an integrated system of teaching and learning to create affordable private schools. It has partnered with 800-plus schools with an estimated three lakh-plus students in more than 300 cities in 15 states.
Online beauty turned omnichannel lifestyle retailer Nykaa raised three rounds of funding adding to $24.7 million. In June, the startup raised Rs 19.6 crore from Sunil Kant Munjal as part of its ongoing round.
In May, it raised Rs 66.64 crore from its existing primary investor Steadview Capital. With this round of investment, Nykaa became valued at $1.2 billion, thus entering the startup unicorn club.
Earlier in March, it raised Rs 100 crore from its existing primary investor Steadview Capital. This came after it had raised an additional Rs 100 crore from Singapore-based TPG Growth IV SF last year.
Prior to that, in September 2018, Nykaa raised Rs 113 crore from Lighthouse India Fund III, and another Rs 160 crore through primary and secondary share sales.
Since its launch in 2012 by Falguni Nayar (former Managing Director at Kotak Mahindra Capital), Nykaa has been instrumental in shaping the beauty and lifestyle industry in India through its omnichannel reach and curated product offering.
In July, Ketto — a crowdfunding platform for fundraising of social, creative, and personal causes — raised Rs 109 crore to help and support more than three lakh people in various capacities.
Founded in 2012 by Bollywood actor Kunal Kapoor along with Varun Sheth and Zaheer Adenwala, Ketto has been distributing PPE kits and ration kits, and providing support to migrant workers. It has established community kitchens to feed hundreds of people every day.
Earlier this year, Ketto raised Rs 30 crore in crowdfunding through the philanthropy arm of CleverTap, CleaverTap4Good.
In June, Service Lee Technologies which operates device management and support platform Servify, raised $11.37 million in its Series C round from a clutch of existing investors.
Earlier, in April, it secured Rs 1.9 crore in debt from Germany-based Barkawi.
Launched in 2015 by Sreevathsa Prabhakar, Servify is an app-based customer support service channel for consumer electronics.
In three years, it has created a complete service life cycle management platform enabling top electronics and smartphone brands, carriers and retailers in device diagnostics with distribution, sales, warranty management, after-sales service, end of life management, and ecommerce capabilities.
In April, Lido Learning, an edtech startup that focuses on live online tutorials, closed a $7.5 million Series B round led by Ant Financial-backed BAce Capital. This put the edtech startup’s overall funding at $10.5 million.
With this round of funding, Lido plans to build a presence in Tier II and III towns to democratise high quality education across India. It will also expand into more curriculum-focused subjects, and 21st-century skills like analytical thinking, critical reasoning, communication, collaboration, and creativity.
Earlier in March, it raised another $3 million led by Picus Capital backed by Rocket Internet Founder Alex Samwer, and President of Paytm Madhur Deora.
Founded in 2019 by Sahil Sheth, Lido Learning offers live tutoring and personalised online coaching sessions to students from Class V-Class IX in Math and Sciences from both CBSE and ICSE boards.
In May, scheduled commercial bank Suryoday Small Finance Bank (SSFB) raised Rs 62.14 crore from existing investors including Gaja Capital, Kotak Life, Lok Capital, TIAA, and Kiran Vyapar.
SSFB, which provides microfinance loans to customers, has launched a working capital loan product for its MFI customers to meet their urgent liquidity requirements during the lockdown.
The bank has over 20 institutional investors with a healthy mix of institutional investors, development funds and private equity investors.
(With inputs from Sujata Sangwan, Thimmaya Poojary, Debolina Biswas, Sindhu Kashyap)
Edited by Saheli Sen Gupta