Top 10 VC Funding in 2020
Despite kick-starting the year 2020 with all glory, the sudden pandemic outbreak in the first quarter has shattered all our hopes for the entire year, especially for the business people. It is been noted that the Indian startup economy had collapsed in the second quarter of 2020, as the year witnessed a severe shortfall in funding and the subsequent lack of growth capital. The major disruption has been caused by the pandemic that has crippled the businesses and eventually leading to pay cuts or even layoffs for the employees. According to sources, the Indian startups have noticed an investment of about $81 billion in about 652 funding deals. However, the total funding amount is 51 percent that makes $4.1 billion invested in startups right in the first quarter of 2020 by exceeding 208 deals. With these insights let us take a look at the top 10 VC funding of 2020.
The edtech startup Vedantu has raised three rounds of funding and had raised about $119.3 million. The firm had raised around $6.8 million from KB Global Platform in April this year. Post which it raised $12.56 million from a Chinese venture capital firm, Legend Capital. According to the sources, the funding was part of the edtech firm’s Series C round. Later it had also raised nearly $100 million as part of its Series D round, which indeed has elevated the value of the company to $600 million.
Embibe, the edtech has also reportedly obtained funding of 500 crore from its existing investor and shareholder Reliance Industries. The sources claim that the company’s board issued a total of 50,00,000 cumulative compulsorily convertible preference shares (CCPS). However, earlier this February the company had raised a funding of Rs 89.91 crore from Reliance Industries. The edtech platform leverages data analytics to deliver personalized learning outcomes for students. Alongside the company’s focus has been set on deep technology and product innovation.
The Utility solution provider, khataBook that aids in tracking the transaction for small and medium-sized businesses have closed a funding deal at $60 million in Series B round in May 2020, the funding round has been led by B Capital Group. The funding round had the participation of its new and existing investors that include Partners of DST Global, Tencent, Sequoia India, GGV, Hummingbird Ventures, RTP Global, Rocketship, Falcon Edge Capital, and Unilever Ventures. Alongside, the angel investors namely Alexander Will, Kevin Weil, Kunal Shah, and Rohit Bansal took part in the funding round.
The e-grocery unicorn BigBasket has successfully raised two rounds of funding even during the lockdown. In April 2020, the startup has raised a debt funding of 379.87 crore from its existing investor and shareholder Alibaba Group. Additionally, the company has also raised an undisclosed amount of funding in a bridge round that was led by Alibaba alongside its other existing investors.
The co-living startup ZoloStays has raised $56 million in a Series C round led by Investcorp, Nexus Ventures Partners, Mirae Assets, along with its existing investor Trifecta Capital amongst others. The funding round has gathered a total fund-raise to about $90 million. The co-living sector in India is currently facing several challenges as demand and occupancy levels remain a concern with people who have vacated their rented space are they are working remotely from their native. There are more than 500 Zolo facilities spread across ten cities and it plans to add another 500 to meet the future requirements.
A Bengaluru-based sales automation SaaS platform has raised around 240 crore in the Series B funding round that has been led by a private equity firm Gaja Capital. Along with this investor, the company’s existing investors Jyothi Bansal and Stakeboat Capital also participated in the funding round. The company is planning to use the funding to transform its sales tech and take the solutions to newer markets and fuel the global plans into action with the funding raised.
The Spa and salon software startup Zenoti Software has raised $160 million in a Series D funding round with which it has ventured into India’s unicorn club. The funding round was led by Advent International (Advent) through Advent Tech and Sunley House Capital. Alongside, the funding also witnessed the participation of Tiger Global Management and Steadview Partners. With this funding round, the company’s overall funding has reached $251 million. It had last raised $350 Mn in Series C, last year, from Tiger Global, Steadview Capital and Accel Partners, Norwest Venture Partners, amongst others.
Agritech startup Arya closed its funding Series B round and has raised $21 million in a mix of equity and debt. The funding round was led by a fintech-focused VC firm, Quona Capital along with its other existing investors omnivore, LGT Lightstone Aspada, and multiple lenders had participated in the funding round. The agritech startup is intending to use the funding raised to expand financing to farmers through its embedded fintech arm Aryadhan and to strengthen its digital post-harvest services and market linkage platform.
Dailyhunt has raised $23.5 million in its Series G funding round and has topped the same round with a fresh infusion of 38.27 crore from Belgium-based Sofina Group. Both have indeed made the total funding amount to $28.5 million. Initiated as NewsHunt in 2009 by the former Nokia employees Chandrashekhar Sohoni and Umesh Kulkarni the startup has aggregated news for millions of Indians in eight years. Since 2016, it has acquired four companies, beginning with OneIndia in July of the same year.
Ola Financial Services
Ola Financial Services (OFS), which runs Ola Money, has raised around $27 million (Rs 205 crore approximately) in funding from Matrix Partners and others as part of its initial institutional financing round, as per regulatory documents. Gemini Investments LP, Arun Sarin's family office, and Alpha Wave Holdings also participated in the round.