Between April 29 and March 4, Indian startups raised $316.4 million in a total of 23 agreements. PharmEasy’s $216.2 million financing was the lone big fundraising round of the week. Seed funding fell by 64% to $12.3 million this week from $33.9 million previous week.

PharmEasy to Portea, Indian startups raised

Following a huge decrease in cash raised by Indian entrepreneurs in the final week of April, investment increased in the world’s third-largest startup ecosystem in the first week of May. Between April 29 and May 4, Indian entrepreneurs raised $316.4 million in 23 agreements, an increase of 83.3% over the previous week’s $172.6 million in 21 deals.

Investing Spree: Indian Startup Investment of the Week [April 27–May 3]

Key Startup Funding Highlights for the Week

  • Digital pharmacy PharmEasy raised $216.2 million as part of its rights offering, representing a 90% drop from its peak valuation of $5.6 billion in October 2021. This was the only major deal of the week, as well as the largest cheque secured by a startup.
  • The health-tech industry defeated fintech this week to become the most funded, helped along by PharmEasy’s massive fundraising. Healthtech startups raised $236.2 million in three transactions this week.
  • E-commerce continued to secure the most deals. This week, startups in the industry raised $8.2 million in five agreements.
  • The most active investors this week were Z21 Ventures and JITO Incubation and Innovation Foundation (JIIF), each backing two businesses.
  • Despite a general improvement in financing trends, seed funding fell sharply this week. Startups at this stage received only $12.3 million this week, a 64% decrease from the previous week’s $33.9 million.

Acquisitions and Mergers This Week

  • Vishal Gupta and Prashant Sinha, founders of Momspresso, have invested in adtech gaming platform StreamO through their new startup, Pravis. The growth marketing business will use StreamO’s 300 million users to target Generation Z communities.
  • UGRO Capital, a non-banking finance company (NBFC), has started the process of acquiring loan tech firm MyShubhLife for INR 45 crore in a mix of equity (64%) and cash (36%).
  • Freshworks, a prominent SaaS provider, announced the acquisition of Device42 from Delaware Corporation for $230 million. The purchase price would be paid in cash for $215 million, with an equity rollover of $15 million.
  • Chennai-based SaaS metering and pricing platform Togai is in the process of getting acquired by California-based Zuora. The subscription management software company is looking to enhance its monetisation with the Togai’s acquisition
  • PB Fintech, the parent company of insurtech platform Policybazaar, is set to acquire 100% stake in UAE-based Genesis Group. It will also be divesting stakes in two subsidiaries, Visit Health Private Limited and Visit Internet Services Private Limited