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

India's startup ecosystem continues to flourish with recent notable developments, including substantial investments, supportive government initiatives, and strategic leadership changes. These updates reflect robust growth across sectors like fintech, health tech, renewable energy, and space, highlighting India's increasing prominence as a global innovation hub.

2am VC Introduces Fund II to Support 30 Indian Startups

Early-stage venture capital firm 2am VC has launched its second fund, aiming to invest in up to 30 Indian startups. The fund will focus on sectors such as consumer tech, fintech, food and beverage, AI, and global SaaS. With 60% allocated for initial investments and 40% reserved for follow-on investments, 2am VC seeks to provide substantial operational value to founders.

Smallcase Raises $50 Million in Series D Funding

Wealthtech startup Smallcase has secured $50 million in a Series D funding round led by Elev8 Venture Partners. The round also saw participation from State Street Global Advisors, Niveshaay AIF, Faering Capital, and Arkam Ventures. The fresh capital will accelerate Smallcase’s product expansion across mutual funds, fixed income, and other asset classes while deepening its market reach and strengthening relationships with retail investors and ecosystem partners.

Former Meta Executives Raise $15 Million for AI Assistant Startup

Yutori, a startup founded by former Meta AI executives Devi Parikh and Dhruv Batra, has raised $15 million to develop AI personal assistants. The funding round was led by Radical Ventures, with participation from Felicis, Fei-Fei Li, and Jeff Dean. Yutori aims to create autonomous agents capable of performing tasks independently, enhancing user efficiency in areas like online orders and travel planning.

Jumbotail Nears $120 Million Funding Round at $1 Billion Valuation

B2B platform Jumbotail is in the advanced stages of raising $120 million from investors, including SC Ventures and Invus, potentially valuing the company at $1 billion. This funding follows Jumbotail's recent acquisition of Solv, aiming to expand its reach in the B2B space. The fresh valuation marks a significant increase from its previous valuation of around $300 million in 2021.

Dozee Secures $8 Million to Accelerate Global Expansion

Healthtech startup Dozee has raised $8 million in a funding round comprising both equity and debt. The round saw participation from Temasek Trust’s investment vehicle C3H, Stockhausen International, and undisclosed strategic investors. The fresh capital will support Dozee's global expansion and enhance research and development efforts to improve critical patient care monitoring.

OneStack Raises $2 Million to Transform Co-operative Banks into Neo-Banks

Fintech startup OneStack has secured $2 million in a Series A funding round led by Pentathlon Ventures, with participation from Yatra Angel Network, 100Unicorns, and Venture Catalysts. OneStack aims to digitise cooperative banks by providing a comprehensive technology stack, including Core Banking, Mobile Banking, NPCI UPI Switch, and BBPS Switch, enabling these institutions to compete with larger commercial banks.

Mergers and Acquisitions:

1. International Finance Corporation (IFC) has joined Alteria Capital as an anchor investor for its Shorter Duration Scheme (SDS), marking IFC's entry into India's venture debt market.
2. Oil and Natural Gas Corporation (ONGC) has approved a ₹33 billion investment to acquire Ayana Renewable Power, expanding its footprint in the renewable energy sector.

Other News: 

1. Hyderabad-based Equal is revolutionising financial data sharing with consent-based solutions, simplifying processes like KYC, fraud prevention, and compliance for businesses. ​
2. Andhra Pradesh has unveiled its Innovation and Startup Policy 4.0 (2024-2029), aiming to establish 20,000 startups and generate 100,000 jobs over the next five years.
3. Karnataka's ELEVATE 2024 initiative has provided ₹25 crore in grants to 101 startups, fostering innovation across various sectors.
4. The Indian government has announced a ₹1,000 crore funding scheme to support startups in the space sector, boosting innovation and development in this field.
5. IG Defence and Aerospace, an Odisha-based startup, has developed an advanced tracking system to be deployed by the Indian Air Force (IAF) to enhance security and efficiency at air bases. The Bluetooth Low Energy (BLE) tool tracking system integrates hardware and software, embedding microchips in tools and equipment to provide real-time alerts and location data, thereby preventing foreign object debris and enhancing runway safety.