We are halfway to 2017, and buzz of funding slowdown, startup shutdown, lack of innovation etc has already caught its pace. There are talks of startup bubble bursting down, but there are still some insist that the startup bubble has not burst yet. Though investors have become cautious and backed sectors that are problem-solving at a macro level, and not blindly following the e-commerce or hyperlocal buzz, India has still managed to get some of the most funded startups.
Here is the list of most funded startup of 2017, year-to-date:
In the scenario where Indian e-commerce is facing a tough time, homegrown major, Flipkart has taken over the rein of the market by becoming the third most funded private company in the world. Flipkart, an online shopping destination for India founded in 2007 by Sachin Bansal and Binny Bansal recently bagged $ 2.4 billion from Japanese technology and telecom giant SoftBank, making it most funded startup in India.
Flipkart’s total raised capital is now almost $7.12 billion which is higher than that raised by global giants like online house rental aggregator Airbnb ($3.3 billion) and mobile phone maker Xiaomi ($1.4 billion). If we talk about the valuation, Flipkart stands at the 9 position with about $15 billion. Prior to this in April 2017, Flipkart secured a $1.4 billion at a valuation of $11.6 billion. Flipkart managed to secure this investment at a post-money valuation of $11.6 billion from the likes of Tencent, eBay, and Microsoft. This fundraising round also witnessed participation from existing Flipkart investor, Tiger Global, Naspers, Accel and DST Global.
Before this round, the Bengaluru-based firm had last raised funds in June 2015 when existing investors led by Tiger Global Management pumped $700 million into the company, valuing it at $15 billion. By August 2015, after raising $700 million, Flipkart had already raised a total of $3 billion, over 12 rounds and 16 investors.
Vijay Shekhar Sharma founded PayTM has become the buzzword. It is one such company which has secured the largest funding round from a single investor. The Indian technology startup, PayTM has recently raised $1.4 billion from Japan’s SoftBank Group.
The Japanese internet and telecom major, Softbank has invested in PayTM’s parent company One97 Communications, helping Noida headquartered startup to expand its user base of 220 million and build a large offering of financial services products. Post this funding One97 now valued at $7 billion.
Despite bleeding losses, high employee cost, the cab-hailing firm Ola has been successful in raising a sizeable amount of funds. The startup has recently raised over Rs231 crore from Tekne Private Ventures through an issue of preference shares, reports Live Mint. In June 2017, Ola had raised about $50 million (Rs 322 crore) from New York-based hedge fund Tekne Capital Management LLC, as part of the company’s ongoing funding round. Prior to this cab hailing app raised Rs 670 crore in a fresh round of funding from Ratan Tata’s venture fund RNT Capital Advisers LLP and US hedge fund Falcon Edge Capital LP.
Founded by Bhavish Aggarwal and Ankit Bhati in 2010, Ola is backed by marquee investors including SoftBank, Tiger Global and Matrix Partners. Since November 2016, Ola has raised nearly $400 million. Ola, which has a presence in over 100 Indian cities as against Uber’s operations in 29, has been aggressively ramping up its portfolio of services.
ReNew Power Ventures
Wind energy firm based in India, ReNew Power has recently raised around $100 million in structured credit from Piramal Capital’s structured financing group (SFG) to raise his stake in the company ahead of a proposed initial public offering (IPO), reports Live Mint.
The firm founded by Sumant Sinha is one of the largest renewable energy producers in the country has around 1.2GW of operational capacity across the wind and solar projects.
In February 2017, ReNew raised $200 million where JERA Co. Inc. bought a 10% stake in the company, valuing it at $2 billion. ReNew Power’s earlier backers include Goldman Sachs, sovereign wealth fund Abu Dhabi Investment Authority (ADIA) and Global Environment Fund.
ReNew Power’s recent debt financing transactions include a long-term $390 million debt funding from ADB, a $250 million credit line from Overseas Private Investment Corp. It also raised $475 million through masala bonds earlier this year.
In October 2015, the company raised $265 million in equity capital from Abu Dhabi Investment Authority, Goldman Sachs and Global Environment Fund. The round took the company’s total equity fundraising to $655 million. Goldman has invested a total of $370 million in the company.
After PayTM, India get gets the another unicorn in form of its e-commerce arm. Yes, PayTM e-commerce arm secured funding from Paytm’s existing investors Alibaba and SAIF Partners who have put in $177 million and $23 million respectively into Paytm Mall. Paytm has now become the only company with both payments and e-commerce businesses to be valued at billion dollars as separate entities.
Paytm Mall, owned by Paytm Ecommerce Pvt Ltd, is on a mission to become the technology partner of retailers and brands, enabling them to set up stores online.Paytm Mall is scaling its partner network by adding 3,000 agents to its existing workforce as it goes deeper into tier II and tier III cities, digitizing
Paytm Mall is scaling its partner network by adding 3,000 agents to its existing workforce as it goes deeper into tier II and tier III cities, digitizing catalogues of neighborhood shopkeepers and brands authorized stores. It will continue equipping these shopkeepers with technology by digitizing their catalogues, opening their store on its mall and making their shops QR Code-enabled. It has also extended logistics support and GST training to equip these retailers for the current business landscape. The company would also facilitate access to working capital loans, a major pain-point for every small retailer and play a critical role in their growth plans. These factors will contribute to enhancing their income and eventually lead to creating new jobs for our nation’s progress.
Greenko Group is one of India’s fastest growing Independent power producers, focusing on developing clean energy assets in India to meet India’s ever increasing demand for power. In March 2017, the firm raised $155 million (Rs 1,010 crore) from existing investors Singapore’s sovereign wealth fund GIC and Abu Dhabi Investment Authority (ADIA) is one of the largest fund-raising exercises in the renewable energy sector.
According to ET, Hyderabad-based Greenko last year got $230 million in new funds from an entity owned by ADIA and an affiliate of GIC Singapore at a $1 billion valuation. ADIA invested $150 million while $80 million came from GIC.
Gurgaon-based logistics company SSN Logistics Pvt Ltd, which runs the web platform Delhivery.com has managed to make its place in the list of most funded Indian startups. In May 2017, Delhivery has received $30 million (about Rs200 crore) funding from Chinese conglomerate Fosun International. According to the LiveMint report, This additional investment was a part of the bigger equity financing round where The Carlyle Group infused $100 million to pick up a minority stake in the firm.
Founded in 2011 by Sahil Barua, Mohit Tandon, and Suraj Saharan, the startup raised $85 million in a series D round led by Tiger Global Management with participation from existing investors—Multiples Alternate Asset Management, Nexus Venture Partners, and Times Internet Limited in March 2015. Prior to that, in September 2014, it had raised its series C round led by Multiples Alternate Asset Management.
Hero Future Energies
The renewable energy arm of the Hero Group, Hero Future Energies raised $125 billion from International Finance Corp. (IFC), the private sector investment arm of World Bank. Founded in 2012, HFE is poised to provide clean power to industries, businesses, educational institutes, non-profits and governmental organizations at competitive rates. HFE assist its clientele in fulfilling their Renewable Purchase Obligations (RPOs) by reducing their dependence on power generated by fossil fuels like coal, oil and natural gas.
Spandana Sphoorty Financial Limited
According to LiveMint, microfinance lender Spandana Sphoorty Financial Ltdin April 2017, raised $270 million of funding. Around $100 million comes in the form of equity capital from a Kedaara Capital-led consortium including Ontario Teachers’ Pension Plan, and the rest in the form of debt capital from IndusInd Bank Ltd, Yes Bank Ltd and ICICI Bank Ltd.
Spandana Sphoorty is a Micro Finance firm headquartered at Hyderabad. It has presence pan India and has an employee base of 3500+ professionals. The company came into existence with a noble thought of upgrading the economic and social life of rural women, started by a woman for the women.
Indian food ordering and delivery platform, Swiggy raised $80 million in series-E funding in May 2017. The deal was led by Naspers, a global internet and entertainment group, and one of the world’s largest technology investors, with earlier investors Accel India, SAIF Partners India, Bessemer Venture Partners, Harmony Partners and Norwest Venture Partners participating.
Swiggy is among the best-funded food delivery startups in India. It raised at about $155 million in equity from Accel Partners, Bessemer Venture Partners, Harmony Partners, RB Investments, Norwest Venture Partners, SAIF Partners and Apoletto, the personal investment firm of Russian billionaire and founder of DST Global, Yuri Milner. It has also raised about $8 million in venture debt from InnoVen Capital.
Swiggy has been a forerunner in online food ordering and delivery in India, by consistently shrinking delivery times and improving customer experience.