Venture Capital

ETtech Deals Digest: Gupshup, Droom raise funds this week

Read more at economictimes.indiatimes.com

Conversational messaging startup Gupshup and social media platform Sharechat were among the startups that raised funds this week.

Gupshup funding

Gupshup has
raised $240 million from Tiger Global and Fidelity in a secondary transaction ahead of a potential initial public offering (IPO) in the US next year.

More than 100 employees of Gupshup managed to sell shares to public market investors in this round, which follows the
$100-million primary fundraise in April, cofounder and chief executive officer Beerud Sheth told ET. The 16-year-old company had become a unicorn then. Gupshup will use its existing funds to explore acquisition opportunities to fill existing product gaps in its portfolio, and help it expand into adjacent spaces.

Droom gets pre-IPO funding at $1.2 billion valuation

Droom has
received the first tranche of its $200-million, pre-IPO funding round at a valuation of $1.2 billion, making the online automobile marketplace the latest entrant into the coveted unicorn club.

Existing and new investors, such as 57 Stars and Seven Train Ventures, participated in the fundraising, a senior company official said on Wednesday. While Droom didn’t disclose the quantum of the first tranche, it expects to close the $200-million primary round in the ongoing quarter.

ETtech

Droom — which is the 17th Indian unicorn so far this year — competes with the likes of CarDekho, Cars24, Spinny and CarTrade in the used-car retail space.

Sharechat raises funds from Temasek

Mohalla Tech, the parent firm of regional language social media platform Sharechat and short video app Moj, said it has
secured an additional $145 million for its Series F funding round led by Singapore’s Temasek and Moore Strategic Ventures. Mirae-Naver Asia Growth Fund also participated in the latest financing.

Post the new tranche of capital, Sharechat will be valued at $2.88 billion, the company said in a statement on Tuesday.

Earlier in April, the Bengaluru-based firm
had raised $502 million in a round led by Tiger Global at a valuation of $2.1 billion, making its entry into the much coveted unicorn club.

All told, the total funding round stands at $647 million. Snap Inc and Twitter are among its existing investors.

Ixigo raises $53 million

Online travel app Ixigo has
raised $53 million from investors led by Singapore sovereign wealth fund GIC, ahead of its proposed initial public offering, according to regulatory filings sourced from Tofler.

“The company is looking at a valuation of $750-800 million for the IPO that is scheduled for the fourth quarter of the current calendar year,” said a person with knowledge of the development. “It plans to raise Rs 1,200-1,500 crore via its IPO for which it will file its draft red herring prospectus next month.”

Ixigo is the latest entrant to the IPO bandwagon, with companies such as
Paytm,
CarTrade,
Nykaa,
PolicyBazaar and
MobiKwik lining up to tap the public market. Food delivery company
Zomato’s bumper listing commanding a valuation of Rs 65,000 crore during listing has set the ball rolling for more tech startups to list in India.

Mamaearth valued at $730 million

Mamaearth has
closed a $50 million funding round led by Belgian investment fund Sofina, valuing the direct-to-consumer (D2C) personal care brand at $730 million, one of the most valued new-age D2C brands in the country.

Existing investor Sequoia Capital also participated in the round, while early investors Fireside Ventures, Stellaris Venture Partners, Sharp Ventures and Titan Capital sold some stakes in a secondary transaction, the company said.

Other key deals

  • MyGlamm, an omnichannel direct-to-consumer beauty brand, has landed an additional Rs 355 crore in series C funding led by Accel, taking the total funds raised in the round to Rs 530 crore, making it the highest amount raised by a beauty brand in a series C round in India.
  • Goat Brand Labs, a Thrasio-style venture of former Flipkart executive Rishi Vasudev, has closed a $36-million funding round, including a debt component, amid a rush of capital that has flowed into such startups this year.
  • Within three months of launching a late-stage fund, venture debt firm Trifecta Capital has announced the first close at $130 million with the domestic portion oversubscribed.
  • Freshworks founder Girish Mathrubootham and Eka Software founder Manav Garg launched their new venture fund Together with a key focus on backing early-stage software products companies being built out of India or by Indian founders.

Read more at economictimes.indiatimes.com

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