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.

funding, startup

Image Source: Shutterstock

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)

InCredInCred

Bhupinder Singh, Founder and CEO, InCred.

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.

Also Read[Funding Alert] NBFC InCred raises Rs 600 Cr in Series ARebel Foods

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.

Also Read[Funding alert] Faasos' parent Rebel Foods raises venture debt of Rs 35 Cr led by Alteria Capital TopprZishaan Hyath, CEO and Founder, Toppr

Zishaan Hayath, CEO and Founder, Toppr

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.

Also Read[Startup Bharat] How these IITians turned their student project into a profitable global edtech company CarTrade

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.

LEAD SchoolLead School founders

LEAD School co-founders: Smita Deorah (left) and Sumeet Mehta

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.

Also Read[Funding alert] LEAD School raises $28M in Series C round led by Westbridge CapitalNykaaNykaa

Falguni Nayar, Founder & CEO, Nykaa with Nihir Parikh, Chief Business Officer (2nd row, 3rd from L-R)

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.KettoKunal Kapoor

Actor and Co-founder of Ketto, Kunal Kapoor

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.

Also Read[Funding alert] Kunal Kapoor's crowdfunding platform Ketto raises Rs 109 Cr amidst the pandemicServifysreevathsa

Sreevathsa Prabhakar, Founder, Servify

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.

Also ReadWith 740 million devices on its platform, Servify is India’s king of after-sales experienceLido LearningLido

Team Lido

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.

Also ReadEdtech startup Lido Learning to hire senior citizens as tutors during coronavirus Suryoday

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)

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Original Source: yourstory.com

The fast-spreading coronavirus has emerged as one of the biggest threats to the global economy. And, the impact can significantly be seen in the startup ecosystem.

A month-long e-survey conducted by NASSCOM in May to study the impact of the COVID-19 pandemic on Indian startups showed that 70 percent of startups have less than three months of cash runway.

Among sectors, agritech and fintech startups are the worst hit when it comes to funding, the survey found.

fintech startupAlso Read[Funding alert] Suniel Shetty invests in SAI-branded edtech venture SEMSI

However, amid the pandemic, with the practice of social distancing and zero-touch policy, digital payments and transactions recorded remarkable growth and lured investors.

Moreover, the Reserve Bank of India (RBI) also emphasised on transacting digitally and urged customers to use online banking facilities, ensuring contactless transactions.  Further, kiranas, OTTs, online gaming, e-learning, ATM withdrawals, and broadband usage are also giving a boost to the use of digital payments. 

Here are 11 fintech startups that managed to raise funds during the pandemic.

Jai Kisan

Mumbai-based rural fintech startup Jai Kisan on June 16, 2020, raised Rs 30 crore in a Pre-Series A round led by Arkam Ventures (previously known as Unitary Helion), with participation from NABVENTURES Fund I (backed by NABARD). 

Founded in 2017 by Texas A&M University graduates Arjun Ahluwalia and Adriel Maniego, Jai Kisan is building a rural fintech full-stack platform to cater to the financial needs of customers in rural emerging markets.

Jai Kisan

Jai Kisan Co-founders (L:R) – Arjun Ahluwalia , Adriel Maniego

Also Read[Funding alert] Rural fintech startup Jai Kisan raises Rs 30 Cr in Pre-Series A from Arkam Ventures, NABVENTURES, and others

Over the past six months, it has disbursed over Rs 50 crore in loans of top-tier credit quality to a diverse set of 5,500+ borrowers from various income groups across 10 states. 

Setu

In April this year, Bengaluru-based fintech startup Setu raised $15 million in a Series A financing round led by Falcon Edge and Lightspeed Venture Partners US, along with existing investors Lightspeed India Partners and Bharat Inclusion Seed Fund.

Co-founded by Sahil Kini, former Principal at Aspada Investments, and Nikhil Kumar, a former fellow at iSPIRT Foundation, Setu is a fintech API infrastructure provider that connects regulated financial institutions to other companies that wish to offer financial services to their customers.

Nikhil Kumar

Setu Co-founder Nikhil Kumar

According to the startup, it will be using these funds to continue strengthening its team, roll out a suite of new products, and improve its technology infrastructure.

NIRA

NIRA, a fintech startup offering small-ticket loans to blue and grey-collared workers via its mobile app and website, in April closed $2.1 million in Pre-Series A round from existing and new angel investors in the UK, Europe, and India. 

The funding will be used to add high-quality talent to its team, further develop its product and technology, and scale up its lending volumes.

nira nupur rohit

NIRA Co-founders Nupur Gupta and Rohit Sen

Also Read[Funding alert] Fintech startup NIRA raises $2.1M in Pre-Series A

Co-founded by ex-Goldman Sachs colleagues Rohit Sen and Nupur Gupta, NIRA offers access and credit to working Indians at their time of need. The startup offers loans of up to Rs 1 lakh for up to one year, via its app-based credit line.

Launched exclusively in Bengaluru in mid-2018, NIRA now operates pan-India with many thousands of customers from more than 100 cities across the country.

YAP

API fintech platform YAP in April raised $4.5 million in its Series A round led by Singapore-based venture capital firm BEENEXT.  

The Chennai-based startup said the funds will be used to strengthen the team, build technology, and offer enhanced API products to fintech with a specific focus on enabling access to credit, corporate banking solutions, cross border payments, and the freshly minted Neobanking stack. 

YAP currently provides API-based financial services access to over 200+ fintechs, and the startup has raised over $1 million in angel financing earlier this year.  

Khatabook

Khatabook, a Bengaluru-based utility solutions provider that helps micro, small, and medium-sized businesses track business transactions, in May closed a $60 million Series B round of funding led by B Capital Group. 

More than one million merchants are uploading data and engaging with the Khatabook app daily while adding $200 million worth of transactions every day. 

Khatabook

Khatabook Team

The startup also said that using a digital-first user acquisition approach has helped Khatabook reach over eight million active merchants across 11 languages in less than a year. 

The Bengaluru startup will use the funds to ramp up its product offering for its core merchant base, with a view on building solutions around financial services and a merchant-focussed distribution platform.

Lendingkart

Ahmedabad-based fintech startup Lendingkart Technologies Pvt, Ltd., in May raised an equity round of little over Rs 319 crore in its Series D funding (comprising Rs 233 crore as part of D1, and Rs 86.24 crore as part of D2).

To date, it has raised more than Rs 1,050 crore of equity capital from investors. The current funding will be deployed to expand the startup’s lending base, and further, reach out to small and underserved micro and small enterprises. It also wants to strengthen the startup’s technological and analytics capabilities.

Founded in 2014 by Harshvardhan Lunia and Mukul Sachan the startup claims to have evaluated nearly half a million applications, disbursing 1,00,000+ loans to more than 89,000 MSMEs in 1300+ cities across 29 states and union territories of the nation since its inception.

Harshvardhan Lunia, CEO and Co-founder of Lendingkart Technologies

Harshvardhan Lunia, CEO and Co-founder of Lendingkart Technologies.

The startup is currently based in Ahmedabad, with offices in Bengaluru, Mumbai, Delhi-NCR, and Kolkata, but has a service reach across India.

Nium

Global fintech startup Nium (earlier InstaReM) in May raised a new round of equity funding joined by new investors Visa and BRI Ventures (the corporate venture arm of Bank BRI of Indonesia).

Nium said it will be using the funds to further build its diversified payment infrastructure offering that includes outreach to consumers, SMEs, large enterprises, as well as banks and financial institutions.

Prajit Nanu, Co-founder of Nium(InstaReM)

Prajit Nanu, CEO and Co-founder of Nium

It is currently licensed in Japan, Indonesia, EU, Australia, Canada, Hong Kong, Malaysia, India, and Singapore, and claims to operate in over 90 countries, 65 in real-time, and in 63 currencies.

HomeCapital

HomeCapital, a Mumbai-based fintech startup focussed on accelerating housing among millennials in India, raised a funding round in April led by Varanium NexGen Fund. 

 

The round also saw participation from Venture Catalysts, JITO Incubation and Innovation Foundation, Singapore Angel Network, Venture Gurukool, and Shalin Shah, among other investors.

HomeCapital

Also Read[Funding alert] Varanium NexGen Fund leads investment in fintech startup HomeCapital

The startup claims that it supports home buyers in eight cities, including Mumbai, Bengaluru, Chennai, Pune, and Kolkata, among others. It will use the proceeds of this round to expand operations and scale technology infrastructure. 

Aye Finance

Gurugram-based fintech startup Aye Finance, backed by Capital G, raised Rs 180 crore in debt funding from leading lenders from India and abroad in April.

Aye FinanceAlso Read[Funding alert] Despite coronavirus lockdown, fintech lender Aye Finance raises Rs 180 Cr in debt funding

Since its inception in 2014, Aye Finance claims to have provided $410 million worth of credit loans to over 1,96,000 grassroots businesses that would otherwise be left out of the formal financial system. 

The startup says it has an active customer base of over 1,30,000, and assets under management of Rs 1,500 crore.

Mera Cashier

Noida-based fintech startup Mera Cashier in April raised $150,000 in a bridge round of funding from Bollywood singer Sukhbir Singh, India Accelerator, Boudhik Ventures, Shankar Nath (ex-CMO, Paytm), and Shaurya Garg (Founder, Fundoo Works). 

Suneel Kumar, Co-founder, Mera Cashier

Suneel Kumar, Co-founder, Mera Cashier

Launched in July 2019 by Suneel Kumar, Gaurav Tomar, and Sucharita Reddy, Mera Cashier is an app for small and micro businessmen to record and manage credit transactions.

Recko

Enterprise fintech startup Recko in  April raised $6 million in Series A funding led by Vertex Ventures Southeast Asia and India. The funding will be used towards hiring, product development, and expanding its presence outside India.

Recko

Founders of Recko

Also Read[Funding alert]: Recko raises $6M in Series A round led by Vertex Ventures, with participation from Prime VP

Founded in 2017 by serial entrepreneurs Prashant Border and Saurya Prakash Sinha, the startup enables AI-powered reconciliation of digital transactions. It has recently started working with banks, NBFCs, and insurance companies, and is running pilots with them.

(Edited by Suman Singh)

Want to make your startup journey smooth? YS Education brings a comprehensive Funding Course, where you also get a chance to pitch your business plan to top investors. Click here to know more.

Original Source: yourstory.com

Mumbai-based Insurtech startup, Riskcovry, on Thursday announced that it has raised an undisclosed amount in its pre-Series A round from Bharat Inclusion Seed Fund, Varanium Capital, and Better Capital.

Saras Agarwal, Principal at Bharat Inclusion Seed Fund, said, 

“Riskcovry brings a fresh approach to digital distribution for the insurance market. Their API-first approach helps enterprise customers get access to highly relevant insurance products through a completely digital process of underwriting, policy issuance, claim settlement, and compliance.”

 

Riskcovry considers itself as a neo-insurer providing "insurance-in-a-box" solution, allowing any business with a large captive user base to enable distribution of insurance to their users in an end-to-end fashion. The company has taken the payment gateway (PG) approach of enabling insurance as a financial services layer to any business.  

Riskcovry enables the distribution of multiple insurance products across life, non-life, and health with plug-and-play infra to support any distribution use-case.

Riskcovry

Riskcovry Founders

Also Read[Funding alert] Fintech startup Setu raises $15 million in Series A round

The startup was founded in 2018 by Suvendu Prusty, Sorabh Bhandari, and Chiranth Patil. 

The founders, in a joint statement, said,

 

“This round will help us scale on our product-market fit, and serve more enterprise customers across segments that enable both mainstream and alternative insurance distribution. We look forward to building out our technology, product, data sciences, sales, and growth teams.”

Suvendu and Sorabh are ex-insurance industry execs who built the distribution books of two insurers, whereas Chiranth is a two-time founder who comes from a fintech and strategy background. Vidya Sridharan is the CTO and brings in deep technology experience.

Riskcovry falls into the “financial infrastructure” bucket, where fintech startups enable the ‘rails’ or ‘pipes’ that connect various payers within the industry’s value chain via APIs (Application Programming Interfaces) in order to interact with each other.  

Some recent deals in the "Financial Infrastructure" space include payments and cards infra provider M2P, which raised Series A funding of $4.5 million, led by BeeNext and fintech infra company Setu secured Series A round of $15 million led by LightSpeed with co-investment from Bharat Inclusion Seed Fund among others. 

(Edited by Megha Reddy)

How has the coronavirus outbreak disrupted your life? And how are you dealing with it? Write to us or send us a video with subject line 'Coronavirus Disruption' to [email protected]

Original Source: yourstory.com

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