In the last week of June 2023, the Indian startup ecosystem faced a decline in venture capital funding, with only $54 million being raised by Indian startups across 14 deals. Ending on a disappointing note, the month of June witnessed a further decline in venture capital funding for Indian startups, with the absence of significant deals contributing to the low figures.
According to industry experts, despite sufficient liquidity in the ecosystem, investors remain hesitant to resume an active flow of funds due to the prevailing negative sentiment. Factors such as macroeconomic volatility, potential recessions in Europe, and controversies surrounding the Indian ed-tech giant Byjus are deterring investors from engaging in significant funding activities.
Certain experts also hold the opinion that this could potentially be good news for startups in India, as the funding appears to be reaching its lowest point and is expected to rebound in the near future.
Lendingkart –
Lendingkart, a fintech firm specializing in digital lending solutions for MSMEs, has secured Rs 200 crore in debt financing from EvolutionX Debt Capital, a growth-stage debt financing platform supported by Temasek. The funds will be utilized by Lendingkart to expand its range of products, enhance its technological capabilities, and grow its customer base across India.
Lendingkart has set a target to disburse Rs 6,000 crore in FY24 and achieve a revenue of Rs 1,100 crore. The company also plans to introduce new offerings such as credit cards for MSMEs, personal loans for self-employed individuals, and gold loans. Additionally, Lendingkart aims to raise an additional Rs 600 crore in equity by the end of this year1. Established in 2014, Lendingkart has successfully disbursed over Rs 14,000 crore across more than 4,000 cities and towns through 230,000 loans.
Scapia –
In its seed funding round, Scapia, a travel fintech startup, has successfully raised $9 million. Matrix Partners India led the round, with participation from Tanglin Venture Partners, Binny Bansal’s 3STATE Ventures, and angel investor Keki Mistry, the CEO of HDFC Ltd.
The raised funds will be utilized by the company to expand its operations, enhance its technological capabilities, and introduce new products. Scapia provides a co-branded credit card, in collaboration with Federal Bank and Visa, that offers customers travel benefits and perks. Established in 2021 and headquartered in Bengaluru, Scapia is focused on revolutionizing the travel industry.
Koskii –
Koskii, a women’s occasion-wear brand based in Bengaluru, has successfully raised Rs 61 crore ($7.4 million) in a Series A funding round. The investment was led by Baring Private Equity Partners India, with participation from Steer Advisors.
Founded in 2017 by Umar Akhter, Sameen Eajaz, Haroon Rashid, and Ayesha Saubia, Koskii operates both offline stores and an online platform, serving customers across multiple cities including Bengaluru, Chennai, Delhi, Coimbatore, and Hyderabad.
The newly secured capital will be utilized to expand the brand’s offline retail presence, strengthen its online operations, invest in its proprietary tech platform, and recruit talented professionals. Koskii’s vision is to become the foremost pan-India women’s occasion-wear brand by leveraging technology and prioritizing profitability.
