7 Big Startup Funding Deals Happened in 2019
- BY Jaspreet Kaur
Feature Writer, BusinessEx
- Dec 17,2019
- 949 Mins Read
This year is coming to an end and all changes happened in this period have bloomed into new developments. Besides shifting trends and technologies, business segments, especially startup niche has witnessed a series of variations. Three segments—deeptech, electric vehicle mobility (EVM) and digital payments—were key drivers in the current year. Besides rapid innovation, the above-cited business spheres have received ignoramus funding. More so, business-to-business commerce startups and enterprise tech have shown an edge over other startup companies.
Thus, here is the list of the largest startup funding deals that happened in 2019 in the startup ecosystem.
Some of the renowned startups which have garnered large cheques are Druva, a data protection company, Udaan, a B2B e-commerce firm, Big Basket, an online grocery startup, and Paytm, a digital payment application.
Other companies that have secured large startup funding deals in the present year are:
Noida-headquartered fintech startup, Paytm has begun its journey in 2010. In the early waves of the fintech industry, the fintech startup was established by Vijay Shekar Sharma. The startup reached its highest usage during the demonetization period when Indian currencies lost its monetary worth overnight.
In the present year, Paytm has obtained the largest funding sum in the startup sphere. The fintech company has received $1 billion from asset management firm, T Rowe Price, which is the highest startup funding in India presently. With this transaction, the fintech company’s valuation surged to $16 billion. As per speculation, the funding is a component of a larger funding round that can go up to $2 million, reported Inc42.
The Indian logistics industry has accelerated with the advent of Delhivery, which was founded in 2011. Over the years, the logistics firm has created its marks and associated itself with big companies viz. Paytm and Flipkart. The company is presently operating in more than 2000 cities across India. Besides that, it has established more than 12 fulfillment centers for B2B as well as B2C spaces.
In June this year, the Japanese conglomerate, SoftBank increased its share in Delhivery by 3.28 per cent and thus, bought 25.72 per cent stakes; this capital infusion was another highest startup funding in the country. Further, it raised $115 million from the Canada Pension Plan Investment Board (CPPIB) in the current year.
With the advent of Ola, instant cab-riding trips have become possible in India. The cab aggregator has survived a steep competition with the Indian cab-hailing firms and thus, created a space for itself in the international market as well. At present, Ola has its foothold in 20 international cities in total; it has forayed in three international nations—UK, New Zealand, and Australia.
In the present year, the Indian cab aggregator collected in aggregate $300 from investors-- Samih Toukan, Hussam Khoury and DIG Investment. More so, it has raised funds from ARK Ola Pre-IPO Fund, which alludes that the company plans to launch IPO in the offing.
As e-commerce companies assessed consumer preferences and accordingly, modified their services to meet their customers’ demands, on similar grounds, the demands of parents and guardians (for their toddlers) were taken into notice and in turn, gave rise to FirstCry.
FirstCry has become a one-stop solution for infants to pre-teen children. Addressing the needs of parents, the company provides products from renowned brands such as Pampers, Farlin, and Funskool in its stores.
This year, the company caught the eye of the leading investor, SoftBank and has received an offering of INR 2,824 crores in its Series E funding round. The company employed the funding sum of its acquiring pre-elementary school chain, Oi.
5. Ola Electric
Concerning the depleting air quality, the Indian cab aggregator, Ola initiated Ola Electric, which is an electronic vehicle mobility (EVM) business, in 2017. The EVM business is presently carrying out various pilot projects, calibrating the success of its diversified services—battery swapping stations, deploying vehicles in various niches and charging solutions.
In July this year, Ola Electric received $250 million funding from SoftBank, which aided it in entering in unicorn club. Further, it received an additional offering of $56 million from Tiger Global, Matrix Partners and Ratan Tata.
In November this year, the company has raised $14.8 million from automakers, Kia Motor and Hyundai.
6. DMI Finance
Financial institutions now cater to the needs of loan seekers and provide small-amount credits with minimum interests. New Delhi-headquartered non-banking finance company (NBFC), DMI Finance similarly addresses the needs of loan seekers and consequently, offers four lending services--Corporate Lending, DMI Asset Management, DMI Housing Finance, and Digital Lending. The company asserts to have more than 5 lakh customers associated with it in 9 Indian cities.
According to a media report, Delhi-based NBFC holds over $852 million assets and is surging at a rate of 30 per cent every month.
In the present year, Liechtenstein-based asset management firm, New Investment Solutions infused $230 million in NBFC.
Similar to food delivery services, groceries are also delivered at customers’ doorstep now. The founders of Grofers have long ago witnessed the Indian households’ needs and thus, came up with their online grocery store in 2013.
After earning recognition amid virtual users, the company is also going offline and has partnered with local Kirana stores to extend across India.
The digital grocery startup has garnered money from various investment companies, including its parent firm, all year long--SoftBank (invested $150 million), Times Group (infused $24 million), Capital Investment LLC (invested $10 million) and Grofers International (invested $24 million).
These Indian startups caught investors’ attention in 2019 and received huge bags of money for business expansion, shoring up their business and other allied purposes.
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