India's startup ecosystem has grown dramatically in recent years. Government support, finance access, a growing talent pool, and a culture that encourages entrepreneurship are just a few elements that have contributed to India's rise as a vibrant startup hub. Other factors, including technological improvements, the expansion of digital connections, and the increasing adoption of smartphones, have significantly influenced the development of India's startup ecosystem. India's supportive climate for entrepreneurs makes it a desirable location for their growth and success.

This week, we saw Bengaluru-based startup ZuAI has successfully raised INR 4 crore in a seed funding round led by Prime Venture Partners; and InCruiter, a leading interview solution provider, has announced that it has successfully raised Rs 20 lakh in debt funding from the government as part of the Startup India Scheme. Here is the compilation of top 10 startups that raised million dollar funds this week.

ZuAI

Bengaluru-based startup ZuAI has successfully raised INR 4 crore in a seed funding round led by Prime Venture Partners. The generative AI-powered company aims to utilise the investment to fulfill its mission of offering personalised and effective learning solutions to students across India. Founded in 2021 by Anubhav Mishra and Arpit Jain, ZuAI provides students with a unique and adaptive learning experience across a wide range of subjects. With the support of 100X.VC, ZuAI plans to extend its services to more than 100 million students over the next three years. The platform already boasts a daily user base of over 4,500 students, primarily from grades 7 to 10.

In addition to its current offerings, ZuAI is set to introduce additional tools that will enable learners to generate study lectures on any topic within five minutes. The startup also intends to provide adaptive test series to help students track their progress effectively. Presently, ZuAI caters to ICSE, CBSE, and some state board students in grades 4 to 10, offering interactive lessons with multimedia resources, real-time feedback, comprehensive performance analytics, and 24×7 accessibility.

Veritas

Multiples Private Equity, led by Renuka Ramnath, has spearheaded a $145 million funding round in Veritas Finance Pvt. Ltd, which involves both primary capital infusion and a secondary sale. The investment firm, along with co-investors including the International Finance Corporation (IFC), will contribute INR 1,200 crore to Veritas, providing the company with the resources to expand into new markets and strengthen its new product lines, particularly affordable housing loans.

The deal encompasses a primary issuance of INR 400 crore, allowing Veritas to raise fresh capital, and also provides a partial exit for early investors British International Investment (BII) and Lok Capital. Multiples PE, IFC, and other co-investors will inject INR 1,050 crore into the company, while Avendus Future Leaders Fund will participate in the transaction with an investment of INR 150 crore.

Battery Smart

Gurugram-based Battery Smart, a battery swapping network, has successfully raised $33 million in a pre-Series B funding round. This investment round witnessed the participation of existing investors Tiger Global and Blume Ventures, as well as new investors The Ecosystem Integrity Fund and British International Investment.

With this recent funding, Battery Smart has accumulated a total funding of over $70 million, which includes a $9 million debt raised in December 2022 and a $25 million Series A round completed in June last year. The company plans to employ the additional capital to expand its customer base, aiming to add 100,000 customers to its network by 2025. Additionally, it intends to enhance its geographical presence, according to a company press release.

PharmEasy

The well-known Indian pharmacy startup, PharmEasy, is reportedly in discussions to raise approximately $300 million in a new funding round. However, this time at a significantly lowered valuation. Many sources familiar with the matter have enclosed that the company’s existing investors are aware of the fundraising plans, which come amid pressure from some backers for PharmEasy to explore a potential sale.

The funds raised in this round will primarily be leveraged to repay a debt owed to Goldman Sachs, a global investment banking group, that provided the startup with a loan of around $285 million last year. This financing enabled PharmEasy to acquire a majority stake in Thyrocare for over $600 million.

50Fin

Financial technology platform 50Fin has successfully raised Rs 4.25 crore in a pre-seed funding round co-led by 100X.VC, Keynote Capital, and Arun Venkatachalam. The funding round also witnessed the participation of prominent investors such as KRS Jamwal, Aniket Nikumb, Manish Kumar (founder of KredX), Sumit Khadria, Rajesh Sawhney, Dinesh Agarwal (founder of IndiaMart), among others.

Established in 2022 by Aditya Srinivas Prasad and Darpan Samir Tanna, 50Fin offers instant loans to customers against their mutual funds and shares. The company has revolutionized the loan process by streamlining the entire journey, from sign-up to loan approval, within just 7 minutes, eliminating the need for physical documents and CIBIL checks. With its innovative platform, 50Fin enables investors to access credit swiftly and efficiently against their portfolios. The company is currently integrating its platform with leading asset management companies and portfolio management services. 50Fin has set a target to disburse Rs 100 crore in loans by the end of the current financial year.

Genleap AI

Genleap AI, the US entity of Genleap India, is poised to make its mark in the resurgent US IPO market with an anticipated Regulation A+ Initial Public Offering (IPO). Leveraging its advanced artificial intelligence technology to provide personalised recommendations on personal development, education, and careers, Genleap AI aims to raise USD 54 million and achieve a valuation exceeding USD 200 million.

The recent successful IPO of Cava has reinvigorated the IPO market, creating an encouraging atmosphere for both issuers and bankers. Genleap AI recognizes this opportune moment and plans to capitalize on the momentum by listing its shares on the prestigious NASDAQ exchange. This move represents a consolidation of the company's innovative technologies and knowledge assets under the US entity, underscoring its global vision and commitment to leveraging diverse markets.

Interval

Kerala-based start-up Interval, operating under the Kerala Startup Mission (KSUM), has successfully secured 2.25 crore in a pre-seed fundraising round, with prominent angel investors from the UAE leading the investment. This milestone highlights the increasing international interest in the Indian edtech sector, which has been witnessing significant growth in recent years.

Interval, an online one-to-one learning platform, offers a wide range of academic and non-academic courses, encompassing over 1,000 options. The newly raised funds will accelerate the start-up’s growth trajectory, allowing for expansion, increased market reach, and further development of its product portfolio. Founded in 2021 by Ramees Ali, Sanafir O K, Najim Illyas, Shibily Ameen, and Aslah Thadathil, Interval focuses on providing personalised learning experiences to children in the K-12 sector, covering kindergarten to plus-two. The platform offers individualised classes tailored to the specific needs of each student.

Smartstaff

Blue-collar workforce management platform Smartstaff said that it has raised $6.2 million from investors including Nexus Venture Partners, Arkam Ventures, Blume Ventures and Alteria Capital. Smartstaff founder and CEO Arpit Dave told that the funding included a $5,00,000 loan from Alteria Capital.

Alteria Capital was the only new investor in the funding round. The company, which previously raised $4.3 million in October 2021, provides recruiting, workforce management and retention solutions for mid-sized and large manufacturing companies. Since its inception in 2021, the Bangaluru-based Smartstaff has recruited, trained and hired nearabout 11,000 blue-collar workers from 50 manufacturers, helping workers collectively earn more than 100 million rupees in wages.

KaarTech

KaarTech, a leading digital transformation consulting company, has successfully raised $30 million in a recent funding round led by A91 Partners. This marks the first external funding received by the company and includes a mix of primary and secondary raise. As part of the transaction, Gautam Mago and Kaushik Anand from A91 Partners will join the KaarTech board.

The funds raised will be utilized by KaarTech to fuel its growth across key regions, including the Middle East, the European Union, and North America. The company plans to focus on making strategic acquisitions and diversifying its lines of business to further strengthen its position in the market.

InCruiter

InCruiter, a leading interview solution provider, has announced that it has successfully raised Rs 20 lakh in debt funding from the government as part of the Startup India Scheme. The funding will play a pivotal role in supporting the company’s expansion plans, with a particular focus on location and company expansion initiatives. The infusion of capital will enable InCruiter to bolster its development team and establish an international setup, aiming to make a significant impact on the HR tech industry and solidify its position as a key player in the market.

Anil Agarwal, CEO, and Co-founder of InCruiter expressed gratitude towards the government for selecting their company for funding. He stated, “We are incredibly grateful to the government for choosing us. It will empower us to execute our expansion plans and strengthen our presence in the HR tech industry. With the additional resources at our disposal, we are confident in our ability to accelerate our growth and deliver exceptional value to our clients and stakeholders.”

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