Dexter Rewind - August 2024
Howdy!
August ‘24 was really eventful for the Indian startups, and especially so for many of our portfolio companies.
And we are pumped to share our thoughts and updates with you. So, without much here and there, let’s jump on to business! 🚀
Founder’s Corner: Reflections and Insights from the General Partner
Sometime back, I found myself on the other side of a startup pitch, a nostalgic reminder of my own early days as a founder. Watching the passionate presentation, I realized that while numbers and data are crucial, the most compelling pitches are driven by the founder's unwavering belief, deep market understanding, and authentic passion.
It's the human element, the resilience, the vision, and the trust—that truly sets a pitch apart. This experience renewed my appreciation for the entrepreneurial journey and the privilege of partnering with visionary founders.
Startup Spotlight: Monthly Deals and Funding Highlights
August was an eventful month for the Indian startup ecosystem, with notable shifts in venture capital funding and market activity.
The first week saw a strong start with $332 million raised across 22 deals, highlighted by Rapido's $120 million funding round, which made it a Unicorn.
The second week saw a decline to $134 million across 25 deals, but IPOs like Ola Electric and FirstCry showed strong market support.
In the third week, funding rebounded to $379 million from 22 deals, driven by significant investments in OYO and Ather.
Although the fourth week saw a dip to $186 million across 20 deals, investor confidence remained strong.
The month ended on a high note, with $447 million raised in the last week across 27 deals.
Additionally, Zomato’s acquisition of Paytm's ticketing business and Swiggy’s upcoming IPO highlight the dynamic changes in the market.
A special mention:
Noida-based Gruner Renewable Energy, a leader in sustainable biogas solutions, secured $60 million in funding. The company shot to fame after bagging a contract to build tens of biogas plants for Reliance Industries Limited.
The company, as per a Hindu Businessline report, is expecting further big orders not just from Reliance, but also other players. And what’s helping is the company’s technology which it has licensed from a leading bioenergy company from Germany.
It’s aiming to scale big on the back of the Government’s aggressive plans for the biogas and broader biofuels ecosystem. And policy moves like the Government’s decision to mandate a phased biogas blending of up to 5% into CNG only strengthen the prospects.
The Deal Makers
Zepto, a quick commerce unicorn, led the funding rounds with a significant $340 million investment. The round was spearheaded by General Catalyst Dragon Fund, with additional participation from Epiq Capital, StepStone, Lightspeed, DST, and Contrary.
Following Zepto, OYO secured ₹1,457 crore (approximately $173.5 million) from a consortium of investors, including InCred Wealth, J&A Partners, and ASK Financial Holdings, reflecting its continued market appeal.
Rapido made headlines by raising $120 million (approximately ₹1,000 crore) in its Series E funding round, led by WestBridge Capital. This round brought the ride-hailing startup's valuation to $1 billion, earning it unicorn status.
In the electric mobility space, Ather Energy raised ₹600 crore (approximately $71 million) in a funding round led by the National Investment and Infrastructure Fund (NIIF), further cementing its position as a key player in India's electric two-wheeler market and pushing it into the unicorn club.
Meanwhile, Opkey, an AI-based continuous test automation platform, successfully raised $47 million in its Series B round, led by US-based PeakSpan Capital, showcasing the growing interest in AI-driven enterprise solutions.
In another significant deal, Bengaluru-based packaged sweets company Lal Sweets attracted ₹330 crore (approximately $40 million) from MO Alternate Investment Advisors and co-investors, who acquired a minority stake in the company.
Visit Health, a healthtech startup, raised ₹250 crore (approximately $37 million) through a combination of primary capital infusion and secondary stake purchase, signalling strong investor interest in the healthcare sector.
AGRIM, an on-demand B2B agri-inputs platform, secured ₹145 crore (approximately $17.3 million) in its Series B funding round, which was led by Asia Impact.
Social media company ShareChat raised $16 million in a debt round funded by Singapore-based EDBI, indicating continued investor confidence in the platform despite a challenging market for tech startups.
August has certainly been an exciting period for Indian startups, marked by strong performances, increased investor interest, and a clear path towards sustained growth and innovation.
Sector Spotlight: Making Deals Count
We, at Dexter Ventures, had a notably busy and diverse month, evaluating 150+ new deals across a variety of sectors. The distribution of these deals was as follows:
Nearly 16% in Healthtech, 13% in SaaS/AI, 9% in Consumer, 9% in Fintech, and 7% in Consumer Tech.
The remaining deals were spread across other sectors, reflecting a broad and varied investment strategy for the month.
Dexter Deep Dive: Exploring Trends and Insights in the VC Ecosystem
“Contrarian take: Tata’s Bigbasket and not Zepto is India’s q-com dark horse by Jayant Mundhra”
Bigbasket, backed by Tata, is rapidly emerging as a dark horse in India's quick commerce (q-com) market. In just a few months, its market share has surged from 5% to 15%, with half its business now coming from BBNow, its q-com unit.
The company has aggressively expanded, establishing ~500 dark stores and leveraging a strong infrastructure to close in on competitors like Swiggy Instamart.
With growing private labels and a path to profitability within 6-8 months, Bigbasket is poised to challenge the dominance of Blinkit and Zepto in the near future.
Portfolio Buzz: Exciting Updates and News
Jaipur Watch Company (JWC), the luxury watch brand, which is our portfolio company, has successfully raised ₹2.4 crore in a fundraising round. The round was led by Nirav Jogani of Lemon Funds and Jignesh Shah of Dev Diamonds and Lucky Jewellery. The fresh capital will be used for JWC's retail expansion, marketing initiatives, and inventory investments, signalling the brand's commitment to growth in the luxury watch market.
Our portfolio company, beauty and personal care D2C brand Pilgrim, has successfully raised ₹75 crore (approximately $9 million) in an extended Series B round, led by Fireside and Vertex Ventures.
We are proud to announce that our portfolio company, Jaipur Watch Company, has featured in the Forbes India magazine.
We’re excited to share that the Western India Regional Council (WIRC) of the ICAI has teamed up with our portfolio company, Healthysure, to launch the Secure Plus Program! This innovative partnership brings free Employee Benefits Credits of up to ₹50,000 to the entire CA network of WIRC✨
Our portfolio company, Bharatsure, has been honored with the “Insurtech of the Year” award at the 4th Annual BW Festival of Fintech! 🎉 👏
Rezo.ai has partnered with StratAgile in Malaysia, Singapore, and the UAE, with a shared mission to revolutionize Contact Centres across Southeast Asia!
We are proud to announce that our portfolio company MeduLance, a leader in emergency medical services, has partnered with the Indian Institute of Technology, Delhi, to enhance and support vital improvements in campus healthcare.
Amritendu Mukherjee, Co-Founder and CTO, Neuropixel.AI Labs Pvt Ltd. was the Keynote Speaker on "Ethics and Bias in AI Systems" at #STEPINSUMMIT2024 on August 29-30, 2024.
What’s brewing at Dexter?
We are proud to share that Ankit Saraf, Senior Associate at Dexter Ventures, was a Speaker at the #ShiningMP Conclave held at the magnificent Jai Vilas Palace, Gwalior on August 23rd & 24th, 2024. With over 250 attendees, the event was filled with vibrant discussions and collaborative energy.
2. Global Fintech Fest (28th to 30th August, 2024)
Deepak Agrawal, Abhijeet Dhar and Aryan Mulchandani from Dexter attended the Global Fintech Fest 2024 held from 28 - 30 August, 2024 at Mumbai. The event brought together leaders, innovators, and experts from the financial technology sector to explore the latest trends, technologies, and advancements in Fintech. The Honorable Prime Minister of India, Shri Narendra Modi was the Chief Guest at the event, where he highlighted how fintech has democratized financial services in India.
3. Pickleball tournament:
The stage is set for the Dexter Pickleball tournament!
Mark your calendars for October 5th, as we gather in the heart of Bengaluru for an unforgettable experience. 🚀
Investor and Startup Founder community, register here: https://lu.ma/etf9h7ly
Watch this space for more updates!
PS : This is an invite only event.
Reads We Loved This Month!
Final Thoughts: Key Takeaways and Closing Insights
We are ecstatic to wrap up another month brimming with invaluable insights and groundbreaking developments that are revolutionizing the funding landscape.🚀
It’s been a whirlwind of excitement giving you a glimpse of the VC ecosystem. Here’s to more innovative breakthroughs and inspiring journeys ahead!
Keep shining and stay amazing!🌟✨