Weekly Funding Wrap: Large cheques, late-stage deals make a comeback; startups raise about $105 million

During this week (December 4-8), startups raised a total of $104.5 million in investment deals

Startups this week attracted comparatively larger cheque sizes than past weeks with late-stage deals making a comeback, even as the ecosystem continues to record lower overall investment levels amid a never-ending funding winter. During this week (December 4-8), startups raised a total of $104.5 million in investment deals.

The week saw Sarvam.ai, Sleep Company and CoreEL raise cheques in the over $15 million range in contrast to the past weeks when there were few such deals.

Homegrown generative artificial intelligence (AI) startup, Sarvam AI turned out to be the talk of the town this week bagging $41 million from Lightspeed Venture Partners, Peak XV Partners and Khosla Ventures, at a time when a host of investors are betting big on Generative AI startups in India.

A roundup of the key deals

Sarvam AI: Homegrown generative artificial intelligence (AI) startup, Sarvam AI has raised $41 million in its Series A funding round led by Lightspeed Ventures with participation from Peak XV Partners and Khosla Ventures.

The AI firm plans to use the funding to focus on India-specific offerings, which include training AI models to support the diverse set of Indian languages and voice-first interfaces.

Founded in July 2023 by Vivek Raghavan and Pratyush Kumar, who previously worked at Infosys co-founder Nandan Nilekani-backed AI4Bharat, Sarvam develops a full-stack offering for Generative AI, ranging from research-led innovations in training custom AI models to an enterprise-grade platform for authoring and deployment.

The Sleep Company: The Sleep Company, a direct-to-consumer mattress maker, said it has raised $22 million (Rs 184 crore) in its Series C round where existing investors like Premji Invest and Fireside Ventures doubled down on their commitment to the company.

Moneycontrol was the first to report about the development on November 9.

As reported earlier, the company will use the funds to increase its product offerings, enhance brand visibility and strengthen its omnichannel strategy. The company, which currently has 60 stores, will expand its offline footprint to open a total of 100 stores in the next six months, especially in Tier 1 and Tier 2 cities.

While the company did not reveal its valuation, sources had earlier told Moneycontrol that The Sleep Company is likely to be valued at around $180 million, a significant premium from its previous valuation of around $120-130 million.

Coreel: Bengaluru-based aerospace and defence products manufacturer CoreEL Technologies has secured $16 million (Rs 133.4 crore) in a Series A funding round from 360 ONE Asset Management Ltd (formerly IIFL Asset Management Ltd).

Wealth manager 360 ONE Asset Management Limited, formerly IIFL Asset Management Limited, pledged to invest around $16 million in Bengaluru-based aerospace and defence products manufacturer CoreEL Technologies (India) Private Limited, the company said on December 6.

The company will pick a minority stake in CoreEL and funds allocated towards research and development, new products and expansion of manufacturing capabilities, 360 ONE Asset Management said.

Ashv Finance: Ashv Finance, a lender targeting small businesses in Mumbai, announced a $10 million investment from Encourage Capital. The non-bank lender, currently managing over Rs 1,000 crore in assets, intends to use the capital to launch a rooftop solar finance facility for small and medium businesses, ET BFSI reported.

The specific stake acquired by Encourage Capital was not disclosed but the company raised the funds in its Series E round. Ashv Finance, currently active in 180 locations across 15 states, plans to use the funding to further expand its operations.

Biryani By Kilo: Biryani By Kilo, a cloud kitchen company, has secured $9 million (Rs 72 crore) in its Series C funding round. Alpha Wave Ventures spearheaded the investment, contributing Rs 28 crore, while Ivycap Ventures, Incred Weath, and Clear Bridge Ventures added Rs 16.5 crore, Rs 8.2 crore, and Rs 8.3 crore, respectively, according to a report by media company Entrackr.

Other contributors, including Vevek Ventures, DSP HMK Holdings, and various individuals, collectively invested Rs 11 crore in this round. The company has secured this funding after a pause of over two years.