Deal Street: Funds Raised By Indian Startups Hit Two-Month Low

Funds raised by Indian startups hit a two-month low as six companies together raised about Rs 93 crore in angel, seed or venture capital funding, compared with Rs 180 crore raised in the week prior.

Former Google Executive Backs Chauffeur-On-Demand Startup DriveU

Bengaluru-based chauffer-on-demand startup DriveU raised $3 million, or Rs 19.4 crore, in a pre-series A round led by Amit Singhal, co-founder of education non-profit Singhal Foundation.

Existing investor Unitus Seed Fund also participated in the round, DriveU said in a statement.

The funds raised will be used to strengthen operations in its existing markets, including Bengaluru, Mumbai, Chennai, Delhi, the National Capital Region, Pune and Hyderabad. A part of investment will also go for expansion into other markets.

Founded in 2015, DriveU allows customers to hire drivers for one way, round-trips and outstation trips with the help of an app. The company says that its driver partners earn a steady monthly income of anywhere between Rs 25,000 and Rs 30,000, while some earn in excess of Rs 40,000. It says to have over 6,000 background-verified drivers on its platform.

Microlending Firm SmartCoin Raises $2 Million

Bengaluru-based fintech startup Smart Coin raised $2 million in a pre-series A funding round led by an undisclosed Chinese venture capital firm.

Seed-stage impact investment firm Accion Venture Lab came on board as a co-investor, a company statement said. Existing investor Unicorn India Ventures and fintech accelerator ISME ACE also participated in the round

The startup said the funds will be used to invest in technology and grow its team and expands operations.

Founded in 2016, Smart Coin is a consumer micro-lending platform focused on the under-served middle and lower-income segments in India.

Microlending Platform Cash Suvidha Raises $1 Million

Online microlending platform Cash Suvidha raised $1 million in pre-Series A funding from Initia Holdings Ltd. India Industrial Growth Fund's Principal Partner Vipin Agarwal, among others, also participated in the round, the company said in a statement.

Cash Suvidha said it will use the fresh capital to grow its loan book, besides The platform offers micro-business loans to small and medium enterprises and women entrepreneurs. It also extends personal loans to individuals and applicants that fall outside the traditional credit scoring platforms.

Cash Suvidha had recently launched its operations in Kota and Jaipur and plans to expand its footprint across Rajasthan, including Ajmer.

Also Read: Startup Street: SEBI's Easter Egg For Angel Investors

Google Makes Second Direct Bet In Indian Startup

Mumbai-based offline-to-online fashion marketplace Fynd, closed its series C round of funding led by tech giant Google, Harsh Shah, co-founder of Fynd told BloombergQuint over phone.

Other investors Kae Capital, IIFL, Singularity Ventures, GrowX, Tracxn Labs, Venture Catalyst, Patni family office and Hong Kong-based Axis Capital and angel investors also participated in the round.

Last year, the fashion e-tailer had raised $3.4 million in a round led by IIFL Seed Ventures. The online-to-offline platform allows retail stores to list their entire inventory. Users can choose products from the stores around their location and Fynd delivers.

“Our vision is to revolutionize the online and offline shopping experience across all channels and customer touch-points. We expect that the capital raised will help us further bolster our growth trajectory,” he added.

This is the second direct investment by Google into an Indian startup. In December 2017, it led the $12-million Series B investment round into daily tasks management app Dunzo.

Others

Sachin Tendulkar-backed sports-based entertainment startup Smaaash raised ₹40 crore (about $6 million) from a clutch of high-net-worth individuals, including Ravi Modi, founder of clothing brand Manyavar, Lakshmi Narayanan, former vice-chairman of Cognizant and Vijaylaxmi Poddar of Balkrishna Industries, data research platform Paper.VC reported.

Bengaluru-based Myra, an online pharmacy, raised Rs 12 crore ($1.84 million) in funding led by Tokyo-headquartered management consulting firm Dream Incubator.