ETtech Deals Digest: Funding crunch continues, investments down 40% in November to $409 million

As 2023’s penultimate month comes to an end, the funding winter for Indian startups shows no signs of abating.

New-age tech companies raised a total of $409 million in November across 63 rounds, according to data from market research firm Tracxn. Overall funding for the month was down 40% in terms of value compared to a year earlier, when startups raked in $682 million from 136 rounds.

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Overall funding trend for Indian startups NovemberETtech

Sequentially, funding activity was down 28%, with $568 million being raised in October across 93 rounds.

“Last year a lot of series A and B were active. On the Series A plus rounds, this year most of these deals are bridge rounds to have runway safety,” Aswani Chaitanya, vice president of investments, Capital A, told ET.

“In the early stages, which is not impacted as much, the difference comes from the valuation of startups and also quantum raised at the seed stage. This is purely a lack of appetite to deploy more money and to protect dilution at lower valuation,” Chaitanya said.

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most active VCs this week novemberETtech

He added that December and January will see lesser numbers due to the seasonality around holidays. “Only deals closed in Nov will get reported in December and January,” he said.Late-stage startups accounted for a majority of the funding influx with $206 million being pumped in during November. Seed-stage and early-stage funding stood at $48 million and $154.5 million respectively.

Top funding rounds during novembeETtech

Here is a list of startups that got funded last month:

Xpressbees: Teachers’ Venture Growth (TVG) has invested $80 million in ecommerce-focused third-party logistics firm Xpressbees. The investment was through a mix of primary and secondary deals, people aware of the matter said

InCred: Mumbai-based non-banking finance company InCred Financial Services is set to raise Rs 500 crore ($60 million) in a fresh round of funding from a clutch of investors, including corporate treasuries, global private equity funds, family offices and ultra-high-networth individuals.

Zepto: Quick commerce unicorn Zepto raised $31.25 million in a fresh funding round from existing investors such as Goodwater Capital and Nexus Venture Partners. The round also saw participation by Mangum II LLC as well as angel investors such as Oliver and Lish Jung, according to company filings.

Scapia: Scapia, a travel fintech startup founded by Anil Goteti, a former senior executive at Flipkart, has raised $23 million in a fresh round of funding led by Elevation Capital and Flipkart co-founder Binny Bansal’s Three State Ventures. The round also saw participation from existing investors such as Matrix Partners and Tanglin Venture Partners.

EMotorad: Electric bicycle maker EMotorad raised Rs 164 crore in a funding round led by growth-stage venture capital firm Panthera Growth Partners. The round also saw participation from startup scaling firm xto10x, venture debt fund Alteria Capital and existing investor Green Frontier Capital.

Bakingo: Online bakery product seller Bakingo raised its first-ever round of growth capital of $16 million (over Rs 130 crore) from private equity firm Faering Capital.

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