Startup Funding: ETtech Deals Digest: As Funding Is Hard to Get, Startups Look at Convertible Notes | Jobi Cool


The post-holiday gloom for Indian startups is here and looks like it’s here to stay. Another week has passed and the funding drought continues for startups. Investors, both institutions and angels, are more hesitant than ever to support new projects. The current global macroeconomic climate appears to be the cause of the funding drain, with energy prices soaring due to geopolitical volatility and the West facing recession.

Startups have been moving towards finding new ways to raise money, and doing so with convertible notes is one such hack. This week, B2B e-commerce firm Udaan raised $120 million in convertible notes, but delayed its IPO plans.

What are convertible notes? To put it simply, a company raises money with convertible notes by taking short-term loans in exchange for the promise of equity later. This exchange of equity typically occurs in a subsequent round of financing or an IPO. Recently, edtech giant Byju’s also raised $250 million in convertible notes.

convertible notesETech

Boat receives $60 million in funding from Warburg Pincus, Malabar Investments: The D2C audio and wearables brand has raised $60 million, or around Rs 500 crore, in convertible bond funding from existing investor Warburg Pincus and new investor Malabar Investments, and has formally withdrawn its listing plans. Boat has set a minimum valuation cap of about $1.2 billion as part of this financing.

Udaan raises $120 million through convertible notes: Business-to-business (B2B) e-commerce startup Udaan has raised $120 million through convertible notes and debt from existing shareholders and bondholders. Sources said $30-50 million is expected to come in the second phase.

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WhatsApp chatbot startup WATI raises $23 million in funding led by Tiger Global: Hong Kong-based WATI (WhatsApp Team Inbox) raised $23 million in Series B funding led by Tiger Global. Existing investor Sequoia Capital also participated, while DST Global Partners and Shopify came in as new investors.

DevTron, a DevOps startup, raises $12 million: Gurugram-based DevOps startup Devtron has raised $12 million in funding led by New York-based private equity firm Insight Partners, with participation from Leo Capital and other angel investors.

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