This Week in Startups 🌟 | Stay ahead with Entrepreneurship Studio as we bring you the latest and most exciting updates from the #startup world.
From groundbreaking #funding rounds to innovative breakthroughs, we've got your weekly dose of entrepreneurial spirit right here!
1. Ex-Tech Mahindra Exec To Launch AI Startup with $10M Investment
Jagdish Mitra, the former India business head at Tech Mahindra, has announced the launch of his new Artificial Intelligence-focused startup. The venture, headquartered in Pune, will kick off with an initial investment ranging from Rs 65-80 crore and is set to begin operations within the next three months. Mitra, who was a contender for the CEO position at Tech Mahindra, aims to engage customers within 8-12 months, starting with an initial funding of $8-10 million.
The startup will operate across sectors such as manufacturing, retail, and sportstech, with a presence in both the US and India. Its primary focus will be on developing short language models to enhance factory output value. Mitra emphasized the shift from cost-driven to value-driven strategies, stating that every industry will leverage AI to boost productivity. The company's target market includes SAAS firms and businesses with less than USD 2 billion in revenue, positioning itself as a pivotal player in the AI landscape.
2. Lotus Herbals Unveils $50M Fund for Beauty Startups in India
Lotus Herbals, a prominent player in premium cosmetics, has launched a $50 million innovation fund aimed at fostering growth among beauty startups, against the backdrop of India's rapidly expanding beauty market. Nitin Passi, the Managing Director, revealed that the Lotus Innovation Fund would primarily target patent-driven startups, planning annual investments in two to three companies over a five to seven-year period. This strategic initiative is geared towards entities that embody an "innovation plus growth" philosophy, with a strong focus on the Indian market.
This announcement marks another significant commitment by Lotus Herbals, following their investments in brands such as Fixderma India, Conscious Chemist, Vanity Wagon, and Better Beauty. As the Indian beauty industry braces for potential exponential growth, with forecasts suggesting a fivefold increase in the next 15 years, Lotus Herbals is poised to play a pivotal role in shaping this future. The fund is among the first few in India, reminiscent of similar ventures by New Incubation Ventures backed by Estee Lauder and Nykaa in 2022.
3. BioCompute Wins ₹31.4 Lakh Grant at SusCrunch 2024
At the inaugural SusCrunch 2024, organized by the Sustainability Mafia (SusMafia) in partnership with the Pilani Innovation and Entrepreneurship Development Society (PIEDS), BioCompute, a startup specializing in DNA-based data storage, was awarded India's largest non-equity climate startup grant of ₹31.4 lakh. The event gathered over 300 climate leaders, including startups, investors, and corporates.
Kuldeep Jain, Managing Director of CleanMax, commended the maturing climate action ecosystem, energized by SusMafia's initiatives. Priya Shah, General Partner of Theia Ventures and Director of SusMafia, outlined ambitious investment goals, aiming to mobilize $100 million by 2030 for climate tech innovations in India.
The event also marked significant advancements in sustainable technologies, featuring the soft launch of Electric Trucks by Planet Electric and the introduction of SusGPT, an AI tool designed to foster collaboration within the climate-tech community.
4. South Park Commons Closes Third Fund, Announces India-Dedicated Fund
South Park Commons (SPC), a tech startup community and early-stage venture fund, has completed its third funding round, reveal founders Aditya Agarwal and Ruchi Sanghvi. While the specifics of the fund's size remain under wraps, it is anticipated to surpass the $150 million raised in its 2020 round. The fund is awaiting regulatory approvals before its official announcement.
Simultaneously, SPC is preparing to launch a fund dedicated to India, aiming to invest in some of the nation’s most promising founders. This move underscores India’s appeal as a top startup destination globally, bolstered by its over 820 million internet users and more than 100 tech unicorns. Binny Bansal, co-founder of Flipkart, has been enlisted to help develop this community effectively.
Furthermore, SPC is seeking two partners to manage its operations in India: one focusing on the local ecosystem and another global partner to bridge connections between the U.S. and Indian startup landscapes.
5. Clay Capital Introduces FundingKart: India’s Largest Debt Marketplace for Startups
Clay Capital, with operations in India, UAE, and the USA, announces The FundingKart, a new platform set to transform debt funding for mid to mature startups and SMEs in India. Amid a funding winter, with slowed equity investments and valuation challenges, The FundingKart offers a solution with over 30 tailored debt products from 75+ institutional lenders globally. Launched earlier this year, the platform is stage and sector agnostic, aiming to facilitate ₹1500-2000 crore in Series A funds during FY24-25 for startups.
Startups with a minimum ARR of $2 million are guaranteed funding, starting from $1 million. Clay Capital also plans to enhance startup support with upcoming M&A and equity fundraising platforms, leveraging a network of micro VCs to democratize fundraising and foster sustainable growth in a tough financial climate.
6. AWS Unveils $230M Cloud Credits and New AI Program in APJ
Amazon Web Services (AWS) has announced a substantial $230 million allocation in cloud credits for generative AI startups, with a special focus on Asia Pacific and Japan (APJ). This commitment is part of the newly launched AWS Generative AI Spotlight program and the expansion of the global Generative AI Accelerator. The Spotlight program, a four-week initiative, aims to support up to 120 early-stage startups, including 40 from India, in developing generative AI applications.
Concurrently, the Accelerator will assist 80 founders and innovators—including 20 from APJ—providing up to $1 million in AWS credits, along with business and technical mentorship, and networking opportunities. The 10-week global program begins on October 1, with applications accepted until July 19. Matt Taylor, Head of Startup Solutions Architecture APJ at AWS, stated these programs are designed to foster innovations across the APJ region using AWS's generative AI technologies.
7. Battery Smart Raises $65M for Expansion in Indian Cities
Battery Smart, a provider of battery swapping services, has secured $65 million in a recent funding round led by Leapfrog Investments, pushing its valuation to $340 million. This capital boost follows a $33 million raise last July from notable investors including Tiger Global and Bloom Ventures. The fresh funds are earmarked for an aggressive expansion across India, focusing on existing markets and extending to at least ten new cities in the next three months, particularly in North India where there's a high demand for electric three-wheelers.
The company's expansion strategy includes establishing a presence in major cities and tier 2 locales within the coming year. This initiative aligns with Battery Smart’s goal to enhance accessibility and efficiency in urban electric mobility, leveraging their advanced battery swapping technology to meet the growing needs of electric vehicle users in India.
8. Free Legal Aid for Rajasthan Startups via TiE-Rajasthan and Chir Amrit Legal LLP
TiE Rajasthan has recently teamed up with Chir Amrit Legal LLP, as marked by a Memorandum of Understanding (MoU) signed on June 3rd. This ceremony was attended by TiE Rajasthan President Dr. Sheenu Jhawar, Senior Advocate Sanjay Jhawar, Adv. Prakul Khurana, the founder of Chir Amrit Legal LLP, CA Nikhil Totuka, and TiE committee members.
This partnership is set to enhance support for startups connected with TiE Rajasthan by offering them pro bono legal advice from Chir Amrit Legal LLP’s skilled team. The firm will provide essential legal services to startups seeking guidance and investment through TiE, helping navigate complex issues such as company structuring and equity arrangements. Consultations can occur either in person or online, coordinated by TiE Rajasthan. Dr. Sheenu Jhawar highlighted the importance of this tailored legal support in addressing the unique challenges faced by startups.