Startups, Mergers, Acquisitions and Fundings Round-up this week

From fintech and real estate to aviation and sustainability, the Indian startup ecosystem saw significant activity this week companies secured key funding, expanded their operations, and introduced innovative solutions, reflecting strong investor confidence and the dynamic growth of various sectors. Blackstone's investment in Kolte-Patil Developers, Temasek’s stake in Haldiram’s, and Perfios acquiring CreditNirvana highlight strong investor confidence, while Urban Company’s new service showcases innovation-driven growth.

Zetwerk's Expansion and IPO Plans

Zetwerk Manufacturing has inaugurated its seventh plant in India, focusing on manufacturing control boards for appliances like washing machines, refrigerators, air conditioners, and IT hardware. This expansion aligns with India's growing electronics sector and Zetwerk's strategy to bolster domestic production capabilities. The company plans to launch an Initial Public Offering (IPO) within the next 15 to 24 months, aiming to raise $500 million to further its growth ambitions. 

Pernia’s Pop-Up Shop's Parent Company Surpasses Rs. 500 Crore Revenue

The parent company of Pernia’s Pop-Up Shop has reported revenues exceeding Rs. 500 crore in the fiscal year 2023-24. This milestone reflects the increasing demand for luxury fashion in India. Despite the revenue growth, the company faced a net loss of Rs. 45.7 crore in FY24, up from Rs. 38.1 crore the previous year, although it managed to reduce its cash burn during this period. 

Innoterra's Acquisition of Fasal's Fresh Produce Distribution Business

Swiss-Indian food and tech platform Innoterra has acquired Fasal's fresh produce distribution business, enhancing its Farmlink platform. This acquisition provides Innoterra access to Fasal's 85,000-acre farmer network, enabling the company to double its distribution routes and project a 30-35% revenue growth. The move strengthens Innoterra's supply chain and market reach in India's agricultural sector. 

Vayana Secures NBFC License and Plans $20 Million Fundraise

Supply chain finance startup Vayana has obtained a Non-Banking Financial Company (NBFC) license from the Reserve Bank of India (RBI), positioning it to enter co-lending partnerships. Backed by PayU, Vayana plans to raise an additional $20 million in funding to capitalise its NBFC operations and expand its digital lending services. 

Valueattics Re Receives Reinsurer License

Valueattics Re, promoted by Go Digit founder Kamesh Goyal's Oben Ventures LLP and FAL Corporation (a subsidiary of Fairfax Financial Holdings), has received a reinsurer license from the Insurance Regulatory and Development Authority of India (IRDAI). This approval marks the entry of India's first private reinsurance company in the revamped regulatory landscape, aiming to foster competition in the sector. 

Urban Company's Foray into Quick Commerce

Urban Company has launched "Insta Maids," a 15-minute maid booking service, marking its entry into the quick commerce (Q-commerce) sector. This initiative shifts the focus from traditional Q-commerce offerings like groceries to rapid home services. The launch comes as Urban Company prepares for an Initial Public Offering (IPO) valued at Rs. 3,000 crore. 

Microsoft Partners with Andhra Pradesh to Skill 2 Lakh Students in AI

Microsoft has partnered with the Andhra Pradesh government to train 2 lakh students in Artificial Intelligence (AI) and cloud computing. The initiative includes training 500 teachers and 10,000 engineering students from 50 rural engineering colleges, and 30,000 students from Industrial Training Institutes (ITIs) in digital productivity. This collaboration aims to bridge the digital skills gap and enhance employability in the region. 

PhysicsWallah Appoints Independent Directors Ahead of IPO

Edtech unicorn PhysicsWallah has appointed three independent directors to its board as it prepares to file a Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The new appointees are former Zomato deputy CFO Nitin Savara, former RBI regional director Rachna Dikshit, and ex-bureaucrat Deepak Amitabh. These appointments align with regulatory requirements for board independence ahead of a public listing. 

Rangsons Aerospace Raises Rs. 300 Crore for Expansion

Bengaluru-based Rangsons Aerospace has secured Rs. 300 crore in funding from ValueQuest Investment Advisors. The company plans to use the capital to scale operations in India, expand internationally, and develop new products for both commercial and military aviation markets. The funding will also support strategic acquisitions to broaden its reach in new business segments.

AstroTalk Appoints Damandeep Soni as Chief Business Officer

Astrology startup AstroTalk has hired Damandeep Soni as its Chief Business Officer (CBO) for its e-commerce venture. Soni, who previously held leadership roles at GlobalBees, boAt, and MobiKwik, will lead AstroTalk's e-commerce and direct-to-consumer (D2C) business. This move aims to expand AstroTalk's online store for spiritual and astrology-based products, including gemstones and healing accessories. 

India’s First CBDC-Integrated Circular Economy Initiative Unveiled

Climate-tech startup Circularity Innovation Hub India and sustainability startup Green Worms have successfully integrated Circularity Credits with RBI’s Programmable Central Bank Digital Currency (CBDC). This pioneering initiative enables secure, transparent payments for sanitation workers while promoting financial inclusion and sustainability. By leveraging blockchain-backed Circularity Credits, the partnership incentivizes waste recovery and recycling, supporting India’s transition to a circular economy. With plans to scale nationwide, the initiative aims to impact over a million lives in the next three years.

Mergers and Acquisitions

• DSP Group has acquired Bengaluru-based fintech startup Volt Money, which specializes in providing instant secured loans against mutual fund investments to enhance DSP's digital lending capabilities.
• Uber has partnered with Refex Green Mobility to introduce 1,000 electric vehicles (EVs) across key Indian cities, including Chennai, Hyderabad, Bengaluru, and Mumbai, by 2026.
• Perfios, a leading provider of credit assessment and financial analytics solutions, has acquired CreditNirvana, an AI-driven debt management platform. 
• Blackstone, a leading asset manager, is set to acquire a 40% equity stake in Kolte-Patil Developers for approximately Rs. 1,167 crore.
• Singapore's state investment company, Temasek, has signed a definitive agreement to acquire a nearly 10% stake in Haldiram's, valuing the Indian snack food giant at approximately $10 billion.

Other news: 

• Zomato founder and CEO Deepinder Goyal has invested $20 million in LAT Aerospace, an aviation startup co-founded with former Zomato COO Surobhi Das.
• The Indian Institute of Science (IISc) Bengaluru and fintech company Infibeam Avenues Ltd. have established a strategic collaboration to create cutting-edge, real-time deepfake detection tools.