Funding activity slows further in shorter week

Capital raised by private equity (PE) and venture capital (VC)-backed startups slipped for the second straight week, as overall activity was subdued due to a three-day week on account of Holi and Good Friday.

Funding raised by startups and companies backed by alternative investors nearly halved last week to $236 million, even with a large-ticket transaction valued at over $100 million.

Funding volume was also tepid in the week gone by, declining to 17 from the preceding week’s 22. Similarly, mergers and acquisitions activity, too, remained weak.

Financial services firms stood at the forefront of receiving investor capital.

The largest deal of the week saw education-focused nonbank finance player Avanse Financial Services raise ₹1,000 crore in a round led by Abu Dhabi-based institutional investor Mubadala Investment Co. Avendus PE, Kedaara Capital, IFC and Warburg Pincus participated in the round.

In the next largest deal by size, Ambit Finvest, the NBFC arm of Ambit Group, received a primary infusion of ₹410 crore from Japanese investor Daiwa Securities Group Inc., along with additional capital from existing investors, taking total fundraise to ₹690 crore. The lending space saw another key transaction, as rural-focused microfinance institution Sindhuja Microcredit secured $14.5 million in its Series C funding round led by Spanish impact investor Gawa Capital, via its vehicle Huruma Fund and the social impact investor Oikocredit.

Digital lending platform KreditBee, which provides personal loans to salaried and self-employed individuals, also topped up its Series D fundraise last week by securing $9.4 million capital from existing investors including PremjiInvest, and Mirae Asset.

The week, which was dominated by small-sized transactions valued at up to $10 million, also saw Kalaari Capital and Foundamental back former OxfordCaps-founder Priyanka Gera’s latest proptech venture, Aeria, which raised $1.8 millon in the round.

Funding raised by startups, cos backed by alternative investors nearly halved last week to $236 million