Funding activity dips on a high base

Private equity and venture capital investments during the five-day period between 18 and 22 March fell compared to the week before. Notably, the previous week’s high funding value was driven by a major transaction involving global investor GIC buying a stake in the largest tobacco company, ITC.

While companies had raised $830 million during 11-15 March, $408 million was secured last week in a healthy mix of large and mid-sized deals. While overall funding volumes were steady at 22 over the previous week’s 23, mergers and acquisitions activity declined further.

In the week’s largest transaction, Engrail Therapeutics, a biotech startup led by former Cipla executive Vikram Sudarsan raised $157 million (₹1,300 crore) in Series B round, co-led by healthcare-focussed VCs F-Prime Capital, and Forbion, besides growth equity investor Norwest Venture Partners.

Audio entertainment content platform Pocket FM followed with $103 million (₹857 crore) in a Series D round, led by Lightspeed Venture Partners, along with Stepstone. This latest round lifts Pocket FM’s funding to $196.5 million.

Among key mid-sized deals, Nexus Venture-backed Ultrahuman secured $35 million (₹291 crore), in a mix of equity ($25 million) and $10 million in debt from its existing investors to ramp up its research and production capabilities.

The Good Glamm Group raised $30 million or about ₹245.5 crore in a bridge round from existing investors through a rights issue. This is the company’s latest fundraise after its Series D round in November 2021.

The M&A space saw three deals led by Astrac Group’s flagship firm Naxnova acquiring a 74% stake in Belgium’s Quad Industries, a maker of customised printed electronicsfor ₹90 crore.