Hike funding

Weekly Seed Funding Roundup (September 12-16)

India’s startup ecosystem has seen an increase in venture capital funding this week as investors start to show more optimism about the startup market.

The previous weeks have been tough for startups in India as highly volatile capital markets and rising inflation rates in major economies have continued to keep investors at bay.

During the week ended September 16, 2022, startups in India raised a total venture capital funding of $247 million from 22 funding deals. The previous week, the total amount of venture capital investments was valued at $132 million.

Even though capital markets and major economies remained volatile over the week, there was a general increase in interest in investing in startups.

As central banks around the world plan to raise interest rates, investment in the startup ecosystem is expected to continue with the same momentum. High inflation rates in the economy force central banks to raise benchmark interest rates.

Rising interest rates in the United States of America are expected to have serious repercussions on the capital markets in India. Foreign institutional funding of Indian startups is also expected to be impacted by the decisions of the US Federal Reserve.

Major financing operations

Yulu, Series B – The transportation company which focuses on urban mobility has raised $82m in a Series B funding round led by Magna International Inc. US-based Magna International Inc is dedicated to mobility technologies .

The funding round also saw the participation of Bajaj Auto Limited, an Indian automotive company. Present in major Indian cities, Yulu currently has over 2.5 million users using its services.

DotPe- The Fintech startup founded by Shailaz Nag in 2019 raised $54.4 million in a funding round led by the Singapore government’s sovereign wealth fund, Temasek. Temasek is injecting capital into DotPe through its investment arm, V-Sciences Investments.

The funding round also saw participation from Naya Global, MUFG Bank and PayU Fintech Investments. Shailaz Nag is also co-founder of PayU.

InfoEdge Venture, which is an existing investor in the payment platform startup, has also injected additional capital into the fintech company.

EPACK Sustainable – the air conditioner manufacturing company founded in 2019 raised $40 million in a funding round led by Affirma Capital.

EPACK Durable previously raised $24 million in the first round of funding from an Indian investment firm, ICICI Ventures.

Nobel Prize in Hygiene, Series C – The Mumbai, Maharashtra-based diaper manufacturing company raised $17 million in a Series C funding round led by Sixth Sense Ventures. Sixth Sense Ventures based in India is a client-focused national venture capital fund that is already an investor in Nobel Hygiene.

Awiros, series A – The artificial intelligence startup founded by Vikram Gupta and Yatin Kavishwar in 2015 raised $7 million in a Series A funding round led by Inflexor Ventures and Exfinity Ventures. Both venture capitalists are renowned for their technology-based portfolio investments.

The funding round also saw participation from VedaVC as well as various family offices and ultra high net worth individuals.