blog/article-blog/Latest Developments in Indian Startup Funding Landscape

Aug 8, 2023

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Latest Developments in Indian Startup Funding Landscape

The startup ecosystem in India continues to evolve and attract significant capital investments. Startups across various sectors, from edtech to agritech, are making significant marks with fundraising announcements. In this article, we'll take a closer look at three recent developments in the Indian startup funding landscape.

1. Unacademy’s Graphy set to acquire Build On Scenes

Unacademy, one of the country's leading edtech unicorns, making strategic moves to expand its presence. In a significant development, Unacademy's Graphy is set to acquire Build on Scenes, a community platform that has been attracting attention from established players in the education tools space. This acquisition is the first for Unacademy in 2023, reflecting the company's commitment to strengthening its resources and expertise in the highly competitive edtech landscape. 

The decision to acquire Build on Scenes signifies Unacademy's pursuit of further growth and consolidation within the edtech sector. The move aligns with Unacademy's vision of expanding its reach and offerings to cater to a broader audience of learners. By integrating Build on Scenes into its portfolio, Unacademy aims to leverage the platform's community-based approach and collaborative opportunities to enhance the learning experience for its users.

Scenes' appeal to larger established companies in the education tools space serves as a testament to the value and potential it brings to the table. As Unacademy's founders, Gaurav Munjal and Roman Saini, are already investors in Build on Scenes, the acquisition is a strategic move that capitalizes on the synergies and existing relationships between the two companies.

The impending acquisition of Build on Scenes is the latest addition to Unacademy's trail of growth and strategic moves within the edtech landscape. Notably, Unacademy's acquisition of Noida-based edtech startup Spayee in October 2021 for $25 million has already contributed to the company's expansion and diversification of its offerings.

With projections of 26% revenue growth to Rs 1,250 crore for the ongoing calendar year (CY23), Unacademy is poised to continue its upward trajectory. Despite challenges such as layoffs and slowdown in acquisitions during 2022, Unacademy's consistent revenue surge highlights its resilience and determination to drive innovation and progress in the edtech industry.

2. Waycool in talks to raise over $50 Mn, may become first agritech unicorn

Waycool, a Chennai-based B2B food and agritech platform, is making waves in the startup world as it negotiates a fresh round of funding exceeding $50 million. With its sights set on a post-money valuation of around $900 million, Waycool is positioning itself to potentially join the exclusive unicorn club in India's agritech space. 

Having recently raised $40 million in equity and an additional $12 million in debt, Waycool has been strategically expanding its operations and capabilities. The company's revenue from operations saw an astounding 2.4X spike in FY22, reaching Rs 927 crore, reflecting its rapid growth and market acceptance.

Waycool stayed ahead of the competition by having a smooth supply chain. By using an advanced technology system, the company reduced wastage to less than 2%, resulting in higher gross margins and improved efficiency. 

With the potential to raise over $50 million in the current funding round, Waycool's valuation could touch the coveted $1 billion mark. If successful, it would become the first agritech startup in India to achieve the prestigious unicorn status, joining the ranks of Flipkart and Walmart-backed Ninjacart in the agritech domain.

Waycool's fundraising efforts have garnered interest from various quarters, including sovereign and impact funds, as well as family offices. With such strong backing from a diverse group of investors, the startup is poised for greater expansion and innovation.

Waycool's recent capital infusion fueled their ambitious vision. They aimed to build a closely-knit network of businesses, bolster their technological capabilities, and automate processes for greater efficiency. Waycool's journey exemplifies the remarkable potential of agritech startups in India. With its current funding negotiations and impressive revenue growth, the company stands on the cusp of joining the elite league of unicorns. As it continues to innovate and expand, Waycool's impact on the agriculture sector and rural livelihoods will be a testament to the transformative power of technology-driven ventures in India's ever-evolving startup ecosystem.

3.  Blume Ventures makes first close of new opportunity fund at $25 Mn

Blume Ventures is a prominent early-stage venture capital firm based in India. The firm has been actively investing in startups across various sectors and has supported numerous promising companies in their early stages. Blume Ventures has recently announced the initial closing of its new opportunity fund at $25 Mn, also known as Fund 1Y.

The primary purpose of this fund is to acquire successful companies whom Blume previously funded & invested in. Investors have enthused confidence in Blume backed companies. It is to be reported that Blume backed companies have seen a growth of over 35% compounded annual growth rate (CAGR). All this has led to a financially healthy environment contributing to successful additional funding rounds, even during times of distress.

The new opportunity fund is likely to provide Blume Ventures with additional capital to continue backing innovative startups and nurturing their growth. The fund will invest in later-stage startups that have demonstrated significant traction and have the potential to become market leaders. Blume Ventures aims to provide these startups with the necessary capital to scale rapidly and dominate their respective markets. The fund's first close is aimed at supporting the growth and expansion plans of Blume Ventures' existing portfolio companies.


These developments in the Indian startup funding landscape indicate that the country's ecosystem is continuing to grow and attract significant capital investments. Startups across various domains are innovating and disrupting traditional industries, demonstrating the immense potential of India's startup ecosystem. With investors and founders alike bullish on the future, we can expect more exciting developments in the coming months.