Start-ups cheer as investors pour in USD 500 million over one week
BENGALURU: 2021 has begun on a positive note for the Indian start-up ecosystem with three start-ups raising nearly $500 million in just the first week. B2B e-marketplace Udaan on Wednesday said, for instance, that it has raised $280 million at a $3.1 billion valuation from two new investors—Octahedron Capital and Moonstone Capital.
The round also saw participation from existing investors Lightspeed Venture Partners, DST Global, GGV Capital, Altimeter Capital, and Tencent.
Home-grown wearable start-up boAT had also said this week that New York-based Warburg Pincus has invested $100 million in the company at a $300 million valuation. To cap off the trio, credits card payments platform CRED has also announced that it has raised $81 million at a valuation of $806 million.
The influx of funds comes at a time when startups are aggressively pushing expansion plans, penetrating into newer markets, and onboarding consumers. Udaan’s co-founder and CEO Amod Malviya said that “Covid-19 has accelerated the already fast digital-led evolution of highly fragmented and unorganized Indian trade industry.
At the same time, the pandemic also highlighted the unique structure of Indian economy, with millions of kiranas and neighbourhood stores becoming the lifeline of our country at the time of crisis.” Malviya said that the latest financing will Udaan’s expansion plans.