[Weekly funding roundup June 5-9] VC inflow sees sharp fall in absence of large deals
Venture funding in Indian startups continues to remain uneven as investors are still proceeding with caution, especially in the large deal category.
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The second week of June witnessed a steep fall in venture funding in the absence of any large deal but the Indian startup ecosystem witnessed some important developments that would have a long-term bearing.
During the week, Indian startups raised venture funding of $107 million across 20 deals, compared to the previous week's $504 million. This uneven trajectory is expected, given that the funding environment remains uncertain.
More importantly, the two important developments took place from one of India's biggest unicorn startups, and one of the leading venture firms in the ecosystem.
First, BYJU'S continues to face challenges on the capital front. The edtech startup filed a lawsuit in the New York Supreme Court against its lenders accusing them of predatory tactics. In response, the lenders labelled the suit as "meritless" and said this was the company's "effort to avoid complying with its obligations, including making contractually required payments".
It remains to be seen how this is going to play out in the long run not just for BYJU'S but also for the larger Indian startup ecosystem.
The other key development was at Sequoia Capital, which said that it will now operate as three independent business units—US/Europe, China, and India & Southeast Asia.
The India and Southeast Asia arm has been rebranded as Peak XV Partners and will operate as an independent VC firm, which could lead to a concentrated focus on Indian startups by the firm without any restrictions by regulations from its US office.
Key transactions
Health and fitness platform HealthifyMe raised $30 million from LeapFrog Investments, Khosla Ventures, FinnFund, and Van Lanschot Kempen.
SaaS startup Lentra raised $27 million as part of its extended Series B round led by MUFG Bank of Japan and Dharana Capital.
Electric vehicle maker River raised $15 million from Al Futtaim Group, Lowercarbon Capital, Toyota Ventures, Maniv Mobility, and Trucks VC.
EV financing startup RevFin raised $5 million in debt from US International Development Finance Corp.
Fantasy stock gaming application TradingLeagues raised $3.5 million from Leo Capital, Jeejeebhoy Family Office and the family office of KP Balaraj.
GenWise, which is developing a lifestyle app for the elderly, raised $3.5 million from Matrix Partners India, DBR Ventures, and Climber Capital.
