<ul><li><keyword id="14984036" type="General" weightage="20" keywordseo="Inflexor-Ventures-and-Exfinity-Venture-Partners" source="Orion">Inflexor Ventures and Exfinity Venture Partners</keyword> led the funding round that also saw participation from VedaVC.</li><li>The company aims to use the funds for growing its business in India and overseas markets.</li><li>The market for video AI solutions across automation, safety and process monitoring is projected to reach $27 billion by 2030, the company said</li></ul><keyword id="9874247" type="General" weightage="100" keywordseo="awiros" source="Orion">Awiros</keyword>, a deep-tech startup on Wednesday raised $7 million in a Series A funding. The funding round, which was led by Inflexor Ventures and Exfinity Venture Partners, also saw participation from VedaVC, leading family offices and ultra high-networth individuals (UHNIs), the company said. The startup offers a marketplace of video AI called Apps, that aims to help customers discover and adopt technology solutions. “This funding round will help us build further momentum for global growth by increasing our market share, streamlining technical operations and investing in the R&amp;D of existing and new product categories,” said Vikram Gupta, CEO and co-founder of Awiros. Onboarding seasoned deep-tech investors from Inflexor and Exfinity would help Awiros benefit from their extensive experience in technology, international business and scalable go to market, he added. This funding round will allow Awiros to hire more people in India and the US across technology and sales-related functions. The market for video AI solutions across automation, safety and process monitoring is projected to reach $27 billion by 2030, the company added. “As cameras become even more ubiquitous globally there will be a huge addressable market for their products. Awiros investment fits very well with Inflexor’s deeptech/tech IP theme and backing solid founders in this space,” said Jatin Desai, managing partner at Inflexor Ventures. Awiros was founded in 2015 by Vikram Gupta and Yatin Kavishwar. Gupta is a computer engineer with a PhD from Carnegie Mellon University. Kavishwar has worked in organisations like Cisco and IBM. Awiros uses a device-agnostic Operating System (OS) for easy development and delivery of video AI applications. The company is planning to be the default platform for computer vision use-cases that would allow developers to create and deploy computer vision applications in large-scale projects, much like app-stores for smartphones. Chinnu Senthilkumar, managing partner at Exfinity Venture Partners, said that Awiros is building a unified video intelligence platform that derives actionable insights for its customers. SEE ALSO: <a>Animals, Potholes And Rash Driving Cause The Most Road Accidents In Indian Metros </a> <li class="youhere"><a>India To Assume G20 Presidency For One Year From December 2022; Host Over 200 Meetings And MEA Lists Priorities</a></li>

Video AI startup Awiros raises $7 million in Series A funding

<ul><li>The current round of funding also saw participation from existing investor Omnivore. </li><li><keyword id="11940625" type="General" weightage="100" keywordseo="bioprime" source="Orion">Bioprime</keyword> develops affordable agri-biologicals that improve crop resistance to insects/pests. </li><li>It aims to utilise the funds for its <keyword id="15213500" type="General" weightage="50" keywordseo="snipr-biologicals" source="Orion">SNIPR Biologicals</keyword> registrations, advancing the discovery platform, building a strong IP portfolio and increasing production capabilities. </li></ul>Tech-focused venture capital (VC) fund <keyword id="9902884" type="General" weightage="50" keywordseo="inflexor-ventures" source="Orion">Inflexor Ventures</keyword> led a pre-series A funding of ₹9-crore in <keyword id="6355165" type="General" weightage="20" keywordseo="agriculture" source="Orion">agriculture</keyword> <keyword id="45082" type="General" weightage="20" keywordseo="biotech" source="Orion">biotech</keyword> startup BioPrime Agrisolutions. The funding round also saw participation from BioPrime’s existing investor, Omnivore. BioPrime aims to utilise the funds for SNIPR Biologicals registrations, advancing the discovery platform, building a strong IP portfolio and increasing production capabilities. BioPrime – founded by <keyword id="15213499" type="General" weightage="50" keywordseo="renuka-karandikar" source="Orion">Renuka Karandikar</keyword>, Amit Shinde and Shekhar Bhosle in 2016 – develops affordable agri-biologicals that improve crop resistance to insects/pests and help crops manage abiotic stress such as high temperature, excessive water, drought, etc. These products are non-chemical based, residue-free, organic, and are less expensive than chemical-based fertilisers and pesticides – thereby reducing the overall farm input expenses, claims Pune-based BioPrime. “BioPrime works to transform the way we grow crops, making food more nutritious and residue-free while restoring soil health using cutting-edge technologies and approaches, always keeping sustainability at our core,” Karandikar, CEO of BioPrime Agrisolutions, said. The company was focusing on discovering fundamental aspects of plant communication, developing novel biologicals based on trait-modifying microbes and physiology-modulating molecules, she added. “We believe that the stellar founding team of BioPrime is well equipped to solve the complex food security problem brought to the forefront by climate change. The IP-led, high-throughput biomolecule discovery platform will facilitate faster market access. Such a technology platform fits well with Inflexor’s investing thesis of backing impactful, pure science companies from the Indian deep tech ecosystem,” said Pratip Mazumdar, Partner at Inflexor Ventures. Inflexor has invested in 10 companies so far since November 2020 including Atomberg, <keyword id="9291914" type="General" weightage="50" keywordseo="gramcover" source="Orion">GramCover</keyword> and <keyword id="3456849" type="General" weightage="50" keywordseo="kale-logistics" source="Orion">Kale Logistics</keyword>. “BioPrime is an excellent example of an invention designed to improve human and planetary health alongside farmer incomes and we are delighted to back them," Jinesh Shah, Partner at Omnivore Partners said. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/science/environment/news/mumbai-international-airport-switches-to-green-sources/articleshow/94761659.cms">Mumbai International Airport switches to Green sources</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/thelife/personalities/news/mulayam-singh-yadav-journey-of-samajwadi-party-founder-netaji/slidelist/94755024.cms">From wrestler to veteran politician – Life and times of ‘Netaji’ Mulayam Singh Yadav</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/science/health/news/heres-how-you-can-cope-with-burnout-at-work/articleshow/94761472.cms">World Mental Health Day: Here’s how you can cope with burnout at work</a>

Agri-bio startup BioPrime Agrisolutions raises ₹9 crore in funding round led by Inflexor Ventures

<ul><li>Perfios and Krutrim AI turned unicorns, while Lohum, The Ayurveda, Cureskin and <keyword id="19919709" type="General" weightage="20" keywordseo="hunch" source="keywords">Hunch</keyword> raised chunky investments.</li><li>Many PE and VC funds made a killing in the public markets in 2023, which has fuelled optimism in the private markets, say experts.</li><li>Investors are warming up, say experts who are cautiously optimistic that funding winter which was set in 2022 might thaw this year. </li></ul>The year 2024 has been good for many startups, as deal activity is growing at a faster clip. While the funding winter that set in mid-2022 is far from over, there seems to be a thaw, opine experts. Not only did two companies — Krutrim AI and Perfios — turn unicorns, but many more late-stage deals are being closed at impressive valuations. In the last few weeks, VC investors have been writing checks at a feverish pace. Fintech Perfios raised $80 million and Bhavish Agarwal-backed Krutrim AI raised $50 million — each of these funding rounds valuing them at $1 billion. In all of 2023, only two startups — Zepto and InCred Finance — had turned unicorns. Apart from unicorn activity, there have been other large deals too. Lithium-ion battery pack maker Lohum raised $50 million, while personal care brands The Ayurveda and Cureskin raised $27 million and $20 million, respectively. Social media discovery app Hunch too raised as much as $23 million. Signals of revival The emerging trends could be the beginning of the end of a funding winter, say experts. Pratip <keyword id="20425093" type="General" weightage="20" keywordseo="mazumdar" source="keywords">Mazumdar</keyword>, partner at Inflexor Ventures says that the noticeable uptick seen in March strongly suggests a warming trend in the investment climate. “This observation indicates a possible conclusion to the previously experienced funding winter. The increased deal flow within our purview further corroborates this optimism, signalling a revitalizing market ready for robust investment and growth opportunities,” he adds. Yet, the Indian startup ecosystem has a long way to go. After spectacular startup inflows of $41.6 billion in 2021, the Indian startup ecosystem made a distinct mark in the global economy. However, funds have been sharply dwindling in the last year and a half. The inflows fell to around $25 billion in 2022 and further dipped to a six-year low of $7 billion in 2023 — one-sixth of 2021 figures — as per a Tracxn report. “These are green shoots for India's large and rapidly growing market. However, more sustained venture capital activity and successful exits over a longer period will be needed for a more definitive end to funding winter. And, the recent developments are encouraging, likely a cautious optimism — a start to a full-fledged thaw,” opines <keyword id="20999102" type="General" weightage="20" keywordseo="rajeev-ranka" source="keywords">Rajeev Ranka</keyword>, Partner at Incubate Fund Asia. The exit door opens wide The year 2023 saw the Indian stock market’s bull run, which enthused the primary markets as well. This optimism has flowed into the private markets, explains <keyword id="20999103" type="General" weightage="20" keywordseo="anirudh-a-damani" source="keywords">Anirudh A Damani</keyword>, managing partner at Artha Venture Fund. “There has been a buoyancy in the India story. For one, SME IPOs have picked up, and there has been a lot of upstream fishing which has triggered the pre-IPO rounds — which has spilled over to Series A,” <keyword id="20043640" type="General" weightage="20" keywordseo="damani" source="keywords">Damani</keyword> tells Business Insider India. A lot of high-profile VCs like Softbank, <keyword id="19971306" type="General" weightage="20" keywordseo="tiger-global" source="keywords">Tiger Global</keyword>, Bain and TPG exited many companies<a href="https://www.businessinsider.in/business/startups/news/private-equity-vc-players-make-a-killing-as-ipo-rush-yields-them-10000-crore/articleshow/105649221.cms"> via primary deals</a> (IPOs) as well as <a href="https://www.businessinsider.in/business/startups/news/pe-and-vc-investors-make-a-killing-in-the-2023-bull-market/articleshow/104034840.cms">secondary market (bulk and block deals)</a> in 2023. That’s made the India startup story stronger. “These exit events not only underscored the viability and potential for significant returns in venture investments but also contributed to the stabilization of valuations within the market. This has, in turn, created a more predictable and reliable landscape for investors, fostering an environment where confidence can flourish,” says Mazumdar. Cleanups, not cash burns The funding winter has also been a wake-up call for many companies as well as their investors – especially those commanding premium valuations. Many listed as well as unlisted companies pivoted to profits, reduced cash burn, and re-calibrated growth strategies. Many of them even tightened belts by reducing staff and other costs, and also agreed to participate in downrounds. Downrounds are those where a startup raises funds at a lower valuation than it did in an earlier round. Those startups that managed to survive with little or no fundraising also passed the acid test — and that’s attracting more investors into the game. “Founders who understand the drop in valuations are raising money. Those startups with profitability focus, scalability and are also generating good customer revenues with good reporting practices are in demand,” says Damani. In the funding boom period, many companies which were getting easy money were burning cash at a rate much faster than revenue growth. As funds became scarce, these practices went away and many of them shifted to positive unit economics. According to Ranka, these are signs of a more mature ecosystem. “Overcoming the funding winters, many startups pivoted from growth-at-all-costs to profit-oriented growth, and it helped keep the investors' trust. The period of valuation-correction has led to more realistic valuations, ushering the ecosystem to an investor-focused approach to growth,” he adds. Cautious optimism reigns the ecosystem Many funds had raised a large amount of capital during the pandemic, and after funding winter a lot of them have been sitting on massive amounts as well — referred to as dry powder across the industry. Yet, funds looking to raise more capital might be hit by a slower translation of interest rate cuts across the globe, a few economies slipping into recession and prevailing high inflation across economies. All in all, global funds wouldn’t flow as freely as they did during the pandemic. “Limited partners (LPs) are understandably cautious in the current economic climate. While the potential for global rate cuts is a factor, it's not the sole driver of their sentiment. LPs indicate a focus on understanding the underlying fundamentals of businesses seeking investment. LPs are primarily looking for sustainable growth potential and a focus on long-term value creation,” says Ranka. Here too, there is caution that’s seeping into optimism. “LPs are bullish on India as a market as it’s a rare market exhibiting growth and well poised for delivering good performance as an economy. However they are cautious in picking funds and looking for evidence in terms of past track record,” adds Mazumdar. Even as the system improves, the odds of startup funding getting back to its former glory this year remain very limited. Even if achieved, it could be a long and rocky path. But the signs of revival are here, and the sector only hopes that the reforms of the winter continue to boost the entire ecosystem towards greater heights in the coming quarters.

A 'thaw in startup funding winter' as two unicorns emerge within a quarter

Mumbai, May 29 (PTI) Domestic consumer appliances brand <keyword id="3494843" type="General" weightage="20" keywordseo="Atomberg" source="Orion">Atomberg</keyword> on Monday said it has raised USD 86 million in a fresh funding round led by Temasek and Steadview Capital. The latest round of capital infusion has also seen participation from Trifecta Capital and existing investors Jungle Ventures and Inflexor Ventures via a mix of primary and secondary issuances, Atomberg said in a statement. The funds mopped under Series C round will be used to boost manufacturing capabilities, support new product launches, deepen offline presence across key regions and further consolidate company's position in the domestic consumer appliance market, it said. The new investment comes on the back of around 100 per cent year-on-year growth of the company, it stated. Founded in 2012 by technocrats and IIT Bombay alumni Manoj Meena and Sibabrata Das, Atomberg's product suite includes brushless direct current electric motor (BLDC) and smart fans, mixer grinders and smart locks with leadership in BLDC fans. The digitally native consumer appliance brand has presence across over 15,000 retail touch points across the country. "With this round of fundraising, our focus is on enhancing product development and improving our product suite," said Manoj Meena, co-founder and chief executive officer, Atomberg. Further, the company aims to expand on its new offerings including mixer grinders, the 'Aris' fan series and smart locks, Atomberg said and added that it also seeks to enhance R&amp;D capabilities to aid new product launches across various categories. "Atomberg's deep engineering expertise and focus on solving consumer problems through innovative products align perfectly with our strategy of backing the fastest growing companies across the consumer and technology sectors in India," said Ravi Mehta, founder and CIO at Steadview Capital. The company's focus on design and innovation has allowed it to reimagine these products, elevating their functionality, performance, and user experience, said Sibabrata Das, co-founder, Atomberg. "This round of funding will allow us to accelerate our growth, expand our team, and deliver even greater value to our customers," added Das "We had the opportunity to support them (Atomberg) with venture debt three years ago. Given their ability to build a large business, we are now excited to support their growth journey by investing from our growth equity fund," said Sandeep Bapat, Partner at Trifecta Growth Equity. Avendus Capital acted as the financial advisor to Atomberg on this transaction, the statement said.

Atomberg raises $86 million from Temasek, Steadview Capital and others

<ul><li><keyword id="5961836" type="General" weightage="20" keywordseo="bellatrix-aerospace" source="Orion">Bellatrix Aerospace</keyword> has raised $8 million in a round led by Inflexor Venture LLP and BASF Venture Capital GmbH.</li><li>The company plans to use this funding to start expanding commercial operations their operations by the end of 2022.</li><li>It will be launching space taxis and expanding its propulsion systems for commercial use.</li></ul>Spacetech startup <keyword id="2578058" type="General" weightage="20" keywordseo="bellatrix" source="Orion">Bellatrix</keyword> Aerospace is raising $8 million in a round led by Inflexor Venture and BASF Venture Capital GmbH, the corporate venture company of the German multinational chemical company BASF SE. StartupXseed, Pavestone Capital, Mankind Pharma family office, Survam Partners and Karsemven Fund also participated in this Series A round, along with other prominent family offices and angel investors. Bellatrix was founded in 2015 by Rohan M Ganapathy and Yashas Karanam — is in the business of manufacturing satellite launch vehicles and propulsion systems. It co-exists with other spacetech companies like Agnikul, Dhruva Space and Pixxel. <cmsannotation type="cmsannotation" annotationid="Space taxis as a B2B offering" comment="subhead" text="Space taxis as a B2B offering">Space taxis as a B2B offering</cmsannotation> The company plans to use this funding to expand its commercialization efforts by the end of 2022 with the launch of space taxis, Bellatrix’s chief executive officer Rohan M Ganapathy told Business Insider. “The technologies being developed for use in space have the potential to offer many opportunities for the chemical industry, for example in new materials and for innovative application cases of chemistry on earth and in orbit. In India in particular, this industry is currently experiencing an unprecedented upturn," said Markus Solibieda, MD of BASF Venture Capital GmbH. Space taxis would be a business-to-business offering, which will allow the company to launch multiple micro-satellites into space on behalf of its clients using one Orbital Transfer Vehicle. <cmsannotation type="cmsannotation" annotationid="Size does matter" comment="subhead" text="Size does matter">Size does matter</cmsannotation> Ganapathy explained that the size of satellites have been reducing, while the size of rockets or space launch vehicles has remained consistent. Launching small satellites on this big rocket is expensive and it underutilizes the space available. This has brought opportunities for several big spacetech companies to develop small launch vehicles, but it is again an expensive process. “It is again like a chartered flight, it is still expensive,” he noted. “What we want to do is, look at the underutilized capacity of the larger rocket, whose launch frequency is expected to increase. We want to ensure that our OTV [Orbital Transfer Vehicle] can make ridesharing on such launches cost efficient, precise and quicker,” he said. <cmsannotation type="cmsannotation" annotationid="Many satellites, one rocket" comment="subhead" text="Many satellites, one rocket">Many satellites, one rocket</cmsannotation> Space Taxi will utilize the additional capacity of the bigger rocket and carry many passengers [satellites] who want to go to multiple different orbits,” Ganapathy, founder, CTO and CEO of Bellatrix explained. The initial version of the Space Taxi, called the Pushpak, can carry satellites up to 600 kg. “We see the space industry is growing exponentially, and Bellatrix’s products will play a major part in democratizing access to the space industry with their cost-effective and power-efficient thruster systems, ideal for small satellite manufacturers,” said Venkat Vallabhaneni, managing partner at Inflexor Ventures. The company also tested a green propulsion system last month. Spacecraft propulsion is any method used to accelerate spacecraft and artificial satellites. The company plans to hire 40 more employees across both technology and business verticals, Karanam added. While the company will be looking to hire tech talent from India, the business talent would be hired all across the globe. SEE ALSO <a class="tout-title-link" href="https://www.businessinsider.in/business/telecom/news/mukesh-ambanis-jio-lags-behind-airtel-which-is-the-top-telecom-brand-in-india/articleshow/91935279.cms">Mukesh Ambani's Jio lags behind Airtel which is the top telecom brand in India</a> <a class="tout-title-link" href="https://www.businessinsider.in/stock-market/news/foreign-inventors-hit-a-record-with-selloffs-in-may-and-they-will-keep-exiting-say-experts/articleshow/91934731.cms">Foreign investors are as spooked as they were in the first month of lockdown in India</a> <a href="http://www.businessinsider.in/business/corporates/news/zomato-paytm-nykaa-and-others-spent-6000-crore-on-their-employees-last-year/articleshow/91931970.cms" data-type="tilCustomLink">Zomato, Paytm, Nykaa and others spent ₹6,000 crore on their employees last year</a>

This startup which makes satellite launches cheaper and faster raises funds to start commercial operations

<ul><li><keyword id="6031547" type="UNKNOWN" weightage="20" keywordseo="Log-9">Log 9</keyword> Materials has raised $8.5 million in its Series A round.</li><li>It would use the capital to further develop its rapid charging system and aluminum-ion batteries.</li><li>AC Ventures, Exfinity Ventures and Sequoia Capital India’s <keyword id="6426108" type="UNKNOWN" weightage="20" keywordseo="Surge">Surge</keyword> also participated in the round.</li></ul>Bengaluru-based advanced <keyword id="168461" type="TECHNOLOGY" weightage="20" keywordseo="battery-technology">battery technology</keyword> startup Log 9 Materials has raised $8.5 million in a Series A funding round led by industrial and automotive battery maker Amara Raja Batteries (ARBL). The 36-year-old company — that has a market cap of over ₹12,000 crore — would infuse $5 million in the Bengaluru-based startup as a part of this deal. The deal is a part of the battery giant’s 'Energy and Mobility' strategy to enter new green technologies and solutions. “This will mark the first in a series of interesting developments that we plan to execute in the future. In this fast-changing technology landscape, we do not believe in a ‘one-size-fits-all’ approach and we are convinced that there will be the scope for interplay of multiple technology solutions for various applications,” Vikramadithya Gourineni, executive director at ARBL, said. The rest $3.5 million in <keyword id="11821909" type="UNKNOWN" weightage="20" keywordseo="log-9-material">Log 9 Material</keyword>’s Series A round was infused by both new and old investors, including AC Ventures, Exfinity Ventures and Sequoia Capital India’s accelerator programme Surge. Blackbuck’s cofounders Rajesh Yabaji and Chanakya Hridaya, Premji Invest’s partner Rajesh Ramaiah, Equinor’s Desikan Sundarajan and Emirates Investment Authority’s Faiz Mayalakkara also participated in the round. Founded by Akshay Singhal in 2015 at Indian Institute of Technology (IIT) Roorkee’s incubation centre TIDES, Log 9 Materials is a deeptech startup that focuses on battery technology for electric vehicles as well as other appliances. The company plans to use this latest funding to expand its production capacity and business development efforts for the latest innovation, <keyword id="11821911" type="UNKNOWN" weightage="20" keywordseo="rapid-charging-battery">Rapid Charging Battery</keyword> technology. The latest technology has completed its pilots successfully and will be rolled out for commercial use in October 2021. A part of the capital would also be used to advance other innovations like supercapacitor and aluminum fuel cell-based innovations. Supercapacitors are electrochemical energy storage devices that use power from the product/vehicle itself to power it. For instance, a supercapacitor would capture energy generated when a bus brakes and use it to start the bus again. Aluminium fuel cells are aluminium-air batteries (AI-air batteries) that produce electricity from oxygen and aluminium reactions. SEE ALSO <a href="https://www.businessinsider.in/business/startups/news/investment-firm-iron-pillar-is-planning-to-bring-assets-worth-1-billion-under-management-aum/articleshow/85161486.cms">FreshtoHome and BlueStone-backer Iron Pillar is planning to bring assets worth $1 billion under management</a> <a href="https://www.businessinsider.in/business/telecom/news/vodafone-idea-and-airtel-shares-fall-as-sc-rejects-agr-dues-re-computation-appeal/articleshow/84668288.cms"></a><a href="https://www.businessinsider.in/retail/news/future-retail-stocks-cannot-shake-off-the-shock-from-the-deal-with-reliance-falling-through/articleshow/85170165.cms" data-type="tilCustomLink">Future Group stocks cannot shake off the shock from the deal with Reliance Retail falling through</a> <a href="https://www.businessinsider.in/stock-market/markets/news/cost-cutting-is-not-helping-vodafone-idea-fresh-funds-might-but-nothing-is-coming/articleshow/84092610.cms">Cost cutting is not helping Vodafone Idea, fresh funds might ⁠— but ‘nothing is coming’</a>

Battery maker Amara Raja invests in five-year-old startup Log 9

<ul><li>In 2021, <keyword id="8990323" type="UNKNOWN" weightage="20" keywordseo="indian-VCs">Indian VCs</keyword> (venture capitalists) believe that the investment deal flow will continue as global funds too jump in for a pie of the Indian startup ecosystem.</li><li>Indian investors say they will continue to bet on sectors like e-commerce, edtech, fintech and SaaS, while there’s room for sectors like SpaceTech and Agritech to grow.</li><li>The year ahead could see consolidation in India’s tech ecosystem as well. Investors believe more mergers and acquisitions are on the cards in 2021.</li></ul>India’s tech ecosystem is riding into the new year with a lot of enthusiasm. There are multiple <a href="https://www.businessinsider.in/business/startups/news/2021-could-finally-be-the-year-of-indias-tech-ipos-as-startups-like-zomato-delhivery-policybazaar-head-for-the-public-markets/slidelist/80019978.cms">startup IPOs</a> on the cards, investments are flowing in, and the spirit of recovering in a post-pandemic era is high. In 2020, despite the coronavirus pandemic PE-VC (private equity and venture capital) deals hit $39 billion across 814 deals led by the onslaught of deals by Mukesh Ambani’s Jio Platforms and Reliance Retail. And in 2021, Indian VCs (venture capitalists) believe that the investment deal flow will continue as global funds are eyeing a slice of the Indian startup ecosystem. “2021 will be a watershed year for the tech economy in India. While foreign investors have been extremely bullish about it, domestic investors and even large corporates have been largely bystanders past 10 years waiting for the change to reach a certain critical mass. They will now jump in or be left out of the handsome gains that will be accrued in the next 10 years, by participating in the tech economy,” said Anup Jain, Managing Partner at Orios Venture Partners. India’s internet ecosystem in numbers <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"><colgroup></colgroup><col /><col /><col /><col /><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Internet Subscribers </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Smartphone devices </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Social media users </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Daily mobile time </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">749 million </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">500 million </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">376 million </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">4.8 hours </td></tr></tbody></table>Source: HDFC Securities report dated December 17, 2020 And to ride this internet growth of India, here are the sectors that Indian VCs are betting on in 2021. Edtech will continue to shine 2020 was the year of <a href="https://www.businessinsider.in/business/startups/news/india-edtech-in-charts-how-the-shift-to-online-learning-meant-money-valuation-and-users-for-the-likes-of-byjus-unacademy-and-others/articleshow/80040270.cms">edtech</a> in India. With schools and colleges shut due to the COVID-19 pandemic, India’s educational technology <keyword id="6362513" type="UNKNOWN" weightage="20" keywordseo="startups">startups</keyword> stood at the forefront of online transition of schools. In 2020, edtech startups raised a total of $2.2 billion, and VCs believe that the money will continue flowing into the sector. Fintech is the next big bet As the internet penetrates India's hinterlands, the adoption of digital payments, financial tech instruments will increase across the country. And VCs believe that fintech cos will drive the growth. "If 2020, the year of the pandemic, was all about edtech and health tech, 2021 will be the year of Fintech in India. Consumers and businesses alike have made substantial changes to the way they lead their lives and businesses and set new goals and practices for saving, investing and spending," said Jain. Jain lists that financial services or neo-banking ecosystem, wealth creation and management will reign big in fintech along with "the use of tech by consumers, just like in e-commerce, will be reflected in discovery and purchase of financial products and services." E-commerce boom to linger With the coronavirus pandemic, offline retail was hit in a big way, which also led to India's e-commerce firms' boom along with grocery retail, which saw their numbers multiply. From Amazon and Flipkart seeing the number of sellers grow on their platform to JioMart, BigBasket, Grofers, saw their average order volumes and app downloads grow during the pandemic. This e-commerce boom will continue to linger in the new year, believe VCs. The durable shift to online has gone well beyond just the top 50 million users, and all incumbents brands have embraced it and are providing a good experience. The sector will keep expanding, and new retail (formats+omnichannel), Social commerce, warehousing, etc should see innovation," said Deepak Gupta, Founding Partner, WEH Ventures. Within e-commerce, Direct to Consumer or DTC brands that sell directly from their websites saw massive growth in 2020. And that has seen investor appetite also grow, with brands like boAt raising over $100 million in funding already in 2021. SaaS to ride on the benefit of digitization One of India’s best performing bets has been in the SaaS (Software as a Service) sector with unicorns like Freshworks, Zoho, Druva, Zenoti, Icertis. And experts believe that the offerings in SaaS are far from over. “We expect adoption of SaaS (software-as-a-service) products to become more widespread as people realized the benefits of digitization during the COVID 19 pandemic. Cyber Security companies would have tailwinds as data leaks / data thefts have made sure people take this aspect into cognizance,” said Jatin Desai, Managing Partner at Inflexor Ventures. Space, agri and electric vehicle infra are among other sectors to watch out for Here are the other sectors that VCs are betting on <ul><li>SpaceTech</li><li>AgriTech</li><li>InsurTech</li><li>Electric Vehicles Infrastructure</li></ul>Pankaj Makkar, MD of Bertelsmann India Investments, sums it up that sectors like e-commerce, e-commerce logistics, direct-to-consumer, Edtech, HealthTech, and some portions of FinTech will do well in the new year. But he also sees consolidation in India’s tech ecosystem. “We will also see Mergers and Acquisitions happening as competitors may join hands because there is less space to grow,” he said. SEE ALSO: <a href="https://www.businessinsider.in/tech/apps/news/with-whatsapp-popularity-hit-zoho-plans-to-launch-arattai-messaging-app/articleshow/80206802.cms">Zoho plans to woo WhatsApp defectors with its own messaging app Arattai</a>

‘2021 will be a watershed moment for India’s tech ecosystem’ — here are the startup sectors that VCs are betting on

<ul><li>With uncertainty around the world, the bustling startup ecosystem in India too will have to face the wrath of the virus.</li><li>With the lack of clarity regarding the full extent of the crisis, economic disruption is a consequence of the unprecedented health crisis.</li><li>Some <keyword id="6362513" type="UNKNOWN" weightage="20" keywordseo="startups">startups</keyword> could shut shop, and many others will have to tweak their businesses to stay afloat.</li></ul>The Coronavirus pandemic crashed stock markets around the world, productions have come to a halt and businesses look at a bleak future with little or no fear of running for months with no revenue. As uncertainty builds around the world, the bustling startup ecosystem in India too will have to face the wrath of the virus. <keyword id="6359051" type="UNKNOWN" weightage="20" keywordseo="investors">Investors</keyword> will now be cautious with their moves, while some say funding could soon come to a halt. During these unprecedented times, investments into startups will be a challenging task. Investors believe that this is a time to rethink strategies and re-evaluate how they want to move forward. Funding could come to a halt, valuations could change With the lack of clarity regarding the full extent of the crisis, economic disruption is a consequence of an unprecedented health crisis, believes Ishpreet Singh Gandhi, founder and managing partner at Stride Ventures. Gandhi also said that current valuations could be difficult to justify in the funding rounds of the future rounds. “Capital will flow more towards startups with robust proof of concept and institutional backing,” he said. But investors are also hopeful that things could soon change. “As things settle down, a bit of funding should resume as there is a lot of dry powder that needs to be put to work. Investors generally understand that growth will sputter for the majority of their portfolio and so will outside funding, so they will work with cos to increase runway and also support with capital to ride through the situation,” said Deepak Gupta, founder, WEH Ventures told Business Insider. Founders will have to tweak their businesses Unforeseen times also call for unforeseen measures. With the coronavirus pandemic, there are many startups that will have to change their course of work. A survey by Indeed says that 64% of Indian businesses are pivoting in response to pandemic. And investors who are all on board and helping out their portfolio companies deal with the crisis, have sent out a clear message - pivot if your idea doesn’t fit the bill. “Founders have been asked to tweak their business plans to ensure sufficient cash buffers due to lower than projected sales growth and slowdown in the funding environment. Portfolio companies as well as investors are conscious of the fact that implementing work from home policies may slow down their turnaround time, but these policies are essential to ensure that team morale and health are not affected over the course of the next few weeks,” Venkat Vallabhaneni, managing partner at Inflexor Ventures told Business Insider. Cashburn is not an option anymore Most of the sectors except for food, e-commerce and edtech have been severely affected. Many of them are seeing zero revenue right now. Even if they have revenue, they have no supply chain or the ability to deliver. Keeping this in mind, entrepreneurs will have to face the bitter truth – they might have to let go of some employees too. Vani Kola, managing director of Kalaari Capital told Business Insider in an earlier interview that this is a kind of planning no one has ever thought of or prepared for. “So it’s just a question of runway and cash flow and ability to keep their lights on and pay their employees. Many countries are caught in this vulnerable situation. Though their underlined business premise may still be true, it may take capacity to stay in the market for 6-9 months with severely reduced revenues and not every startup has that kind of a cash cushion to be able to ride the market,” she said. Investors are hopeful for ‘business as usual’ to return soon Investors are taking this time to extend their resources and expertise to founders. But many are also taking advantage of their backup support to help startups. Anup Jain, managing partner, Orios Venture Partners believes that investments could be delayed because the due diligence process requires boots on the ground from teams across the investment firms. “Having said that, we do not think that there will be an investment slowdown at the seed stage in this current situation, unless we see the spread grow further. We are facilitating back up support to our portfolio in case there is a funding holdup from an incoming investor at Series A,” said Jain. For some, work goes on as business as usual. Mumbai-based early stage fund house Unicorn India Ventures has announced the first close of its 2nd equity fund at $12 million. The second equity fund of $53 million was announced last year. “The investment would happen as it is, just the deal size and <keyword id="51393" type="PERSON" weightage="20" keywordseo="valuation">valuation</keyword> may see some correction. The investment cycle may get longer due to lock down but overall we don't see sentiment going down, this is a temporary phase which will pass,” said Anil Joshi, managing partner, Unicorn India ventures. See Also: <a href="https://www.businessinsider.in/international/news/tech-startups-are-firing-people-via-video-calling-apps/articleshow/74905255.cms">Tech startups are firing people via video calling apps</a>

Startup funding could halt, valuations to take a hit and business models have to be pivoted say investors

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