India has emerged as a major player in the startup scene of the world, taking third place among startup ecosystems globally. Since the launch of the Startup India initiative in 2016, DPIIT has recognised 98,119 entities as startups as on 30th April 2023. Through programmes like Start-up India, the Indian government has played a significant role in supporting innovation. This has created a competitive climate that provides several advantages and tax incentives to ambitious business owners. This ecosystem has been strengthened by the growth of incubators and accelerators, which provide crucial support to startup businesses.

This week, we observed Emtech, a provider of central banking infrastructure, has raised $4 million in a seed funding round led by Matrix Partners India; and Terra Food Co, a pioneering gourmet cloud kitchen company, successfully raised USD 800,000 in its Pre-Series A funding round from investors, including Zero to One Fund, Twin & Bull Fund, ah! Ventures, and several other These are just two examples of the top ten startups that raised million-dollar funds this week.

Emtech

Emtech, a provider of central banking infrastructure, has raised $4 million in a seed funding round led by Matrix Partners India, with participation from global investors BTN, VestedWorld, Equity Alliance and Lofty. They join Emtech’s previous investors, including Noemis Ventures, Octerra Capital, and 500 Global on its cap table.

The fresh funds will be used to fuel the ongoing development of its infrastructure tools for central banks and fintech companies, a statement said. Emtech has so far bagged $10 million in funding. "Emtech’s adoption of blockchain technology enables the democratization of finance, bringing financial freedom and inclusivity to individuals and businesses of all sizes. With the support of our investors, we are well positioned to expedite our growth, diversify our product offerings and continue to drive transformative change across the financial services landscape," said Carmelle Cadet, Founder & CEO of Emtech.

UcliQ

UcliQ, a B2B marketplace that specializes in chicken and seafood, has secured a significant investment of $7 million from EvolveX, a startup accelerator supported by We Founder Circle. UcliQ, a member of EvolveX’s second cohort, aims to utilize these funds for extending its operational footprint and targeting 20,000-25,000 businesses across Delhi/NCR, Bengaluru, and Hyderabad over the next year. The ultimate objective is to achieve an annual revenue of Rs 15 crore.

Several investors participated in this angel investment round, including Vamsi Udayagiri, the founder of HESA. UcliQ’s primary focus lies in bridging gaps within the meat supply chain, particularly in categories such as poultry, mutton, fishery, seafood, live chicken birds, and ready-to-go products, thereby minimizing food wastage. Through the application of digital technologies and innovative supply chain solutions, UcliQ effectively connects meat producers and manufacturers with retailers and businesses in the industry.

Cyble

Cyble, a fast-growing threat intelligence provider that blends cybersecurity and artificial intelligence to create state-of-the-art threat intelligence solutions, announced a $24 million injection of capital by using Series B funding. Cyble has been steadily gaining recognition as the favored solution for Dark Web and Threat Intelligence between cybersecurity specialists, solidifying its position as the champion of a secure digital future with advanced AI technologies.

The funding round, co-led by Blackbird Ventures and King River Capital with participation from Spider Capital, January Capital, Summit Peak Ventures, and others, will fuel Cyble's technical roadmap, particularly in enhancing its AI-driven security solutions and furthering its global expansion.

Pi Ventures

Early-stage venture firm Pi Ventures, which invests in artificial intelligence and deep tech startups, has announced the final close of its second fund with a total commitment of Rs 702 crore ($85 million), finishing above the target of Rs 565 crore. The fund is backed by multiple institutional players, including BII, Nippon India Digital Innovation AIF (NIDIA), Accel, Colruyt, and Premji Invest, as well as entrepreneurs and family offices.

SIDBI has also returned as a key investor in Pi Ventures’ second fund with a commitment of Rs 100 crore from the Fund of Funds for Startups (FFS), about 2.5 times of what the FFS had invested in the first fund. The announcement of FFS’ investment had come two weeks after the Bengaluru-based firm raised Rs 22 crore from Belgium’s Colruyt Group for the second fund. Pi Ventures announced the first close of the second round with Rs 303.5 crore ($40 million) raised from venture capital firm Accel, entrepreneurs, high-net-worth individuals, and family offices.

Shadowfax

Indian logistics startup Shadowfax is finalizing a funding round of about $60 million, more than a year after it started the funding deliberations, two sources familiar with the matter said. TPG’s NewQuest has been positioned to lead the round, which also includes some secondary transactions, the sources stated, requesting anonymity as the deliberations are private. The Bengaluru-headquartered startup, which counts Flipkart among its backers, earlier engaged with A91 Partners for the funding but the talks didn’t materialize over valuation mismatch.

The sources said. Indian daily Economic Times earlier reported about the A91 Partners talks. A deal with NewQuest could close as soon as this month, the sources said. Shadowfax didn’t respond to a request for comment. The startup, one of the largest logistics services providers to hyper-local, on-demand delivery businesses, has significantly pared its reliance on its largest customer Meesho in recent months and has been profitable for at least the past three months, the sources said. Its over-reliance on Meesho was a source of concern among many of its investors, people familiar with the matter said.

Vistaar

The Bengaluru-based Vistaar, developed by Brahmanand Hegde and Ramakrishna Nishtala in 2010, has so far funded over 2 lakh small businesses across 12 states since inception and has a loan book of Rs 3,100 crore. Vistaar has more than 40,000 customers. Its average ticket size is about Rs 10 lakh, and it covers business and housing loans.

Vistaar Financial Services has secured USD 50 million in funding from the US government’s development finance institution, the International Development Finance Corporation (DFC). In May, the company raised USD 40 million in equity from the global private equity firm Warburg Pincus. With the May 2023 equity investment, Warburg now holds a controlling stake in Vistaar.

NBFC Clix Capital

Gurugram-based non-banking lending company Clix Capital has secured approximately Rs 1,200 crore in debt funding this quarter, with around Rs 164 crore (USD 20 million) coming from the Global Climate Partnership Fund (GCPF) for financing sustainable projects. This infusion of green funds will enable Clix to support projects focused on sustainability and combating climate change.

Clix Capital plans to focus on healthcare equipment financing and education financing, particularly supporting new-generation hospital equipment complying with climate norms and funding schools emphasizing girl child education. The company aims to aggressively disburse funds in the healthcare and education sectors, with Rs 500 crore invested in healthcare and Rs 850 crore in schools. Clix's AUM closed at Rs 5,000 crore in FY23, and it targets to reach Rs 6,500 crore by the end of the current financial year.

Mufin Green Finance

Mufin Green Finance, a leading electric vehicle financing platform, has recently announced raising Rs 80 lakh ($1 million approx.) in funding for Shell Foundation. With this infusion, Mufin’s total funding has reached 45 crore (approximately $5.7 million). The funding strategy from Shell Foundation is set to stimulate the democratization of EV financing and leasing solutions and bolster the reduction of carbon emissions.

Founded in 2016 by Kapil Garg, Mufin Green Finance has been committed to making electric vehicle ownership accessible to all by offering innovative income-generation solutions. The company’s visionary approach has resulted in financing EVs valued at over Rs 350 crore, leading to a significant reduction of 38,000 tonnes of carbon emissions indirectly through its extensive clientele. Currently boasting impressive Assets Under Management (AUM) of Rs 300 crore, Mufin Green Finance has ambitious plans to amplify its portfolio by at least 20 times over the next three years. The company envisions an accelerated expansion strategy, aiming to elevate its market share from 7% to 10% across various territories in the northern and eastern regions of India.

Terra Food

Terra Food Co, a pioneering gourmet cloud kitchen company, has successfully raised USD 800,000 in its Pre-Series A funding round. The funding was secured from a group of esteemed investors, including Zero to One Fund, Twin & Bull Fund, ah! Ventures, and several other international angel investors. Existing investors like Lets Venture, Faad Network, and The Chennai Angels also participated in this round, demonstrating their continued confidence in TFC's growth and potential.

TFC, founded by visionary entrepreneur Sriram Nair, started its journey in Ahmedabad in 2019. The company's roots were established through Sriram Nair's cafe cum flagship store, Terra, which introduced Ahmedabad to the innovative farm-to-table concept in 2017. Building upon the success of Terra's dine-in restaurant, TFC ventured into the cloud kitchen space with the aim of providing niche and gourmet cuisine formats at affordable price points to underserved Tier 2 cities.