Over the last couple of years, Chennai has quickly become a hub for start-ups and small businesses, making it a very attractive option for investors in what is essentially becoming a snowball effect for growth prospects and a significant number of funding deals.
Top 5 Start-up Funding Deals Closed in Chennai during Lockdown
BankBazaar
This online financial market place, which gives customers access to customised loans and credit cards is one among many that attracted the eye of big investors. In April of 2020, BankBazaar closed a funding deal of $3.8 Million in their Series D funding round from Amazon, Sequoia Capital and Walden SKT Venture Fund. In total this start-up managed to close a funding deal of $9.78 Million during the lockdown.
WayCool
WayCool is an agritech logistical start-up that handles, processes and distributes food products like produce and dairy to clients across India. The company managed to raise a total of $5.6 Million over two rounds of funding during the lockdown. The majority of the funds came from its Series C debt financing funding deal with Induslnd Bank, which brought in a staggering $5.5 Million in June of 2020.
Specsmakers
In 2008 this optical chain start-up underwent a rebranding by its CEO Pratik Shah, from ‘Venkateshwara Opticals’ to ‘Specsmakers’, as part of an overhaul. It was then able to close a number of funding deals since then with the latest one being in June of 2020, for a little over $3 Million from Eight Roads Ventures.
Grinntech
This start-up which produces specialised lithium-ion batteries for electric vehicles (EVs) closed a funding deal of $2 Million from a group of angel investors in August of 2020. They capitalised on the rapidly growing EV space in Chennai, a smart and strategic move.
Chai Waale
Though Chennai has no shortage of tea brands, Chai Waale took the scene by storm when it managed to close a funding deal with top angel investors for a sum total of Rs.1.75 Crores in July of 2020. Some of the investors included Arun and Vishal Ostwal of the DK Group of Companies, Gunavanth Vaid of 4G Capital Ventures and even Bharat Kumar Sohanraj from Mahalaxmi Jewellers.
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Chennai’s popularity can be attributed to its growing infrastructure and relatively lower cost of operation.
What Makes Chennai an Ideal Space for funding deals?
Chennai, quite simply put, is a cheaper option when compared to other metropolitan cities like Mumbai or Delhi for businesses to set up in. This, combined with the rapidly developing infrastructure, makes for a very viable market for start-ups and investors alike.
What’s in It for Me?
As a business owner or an entrepreneur, the right location at the right time makes all the difference where starting a business is concerned. Chennai is that place, a growing hub full of potential customers and investors looking to close a funding deal with an innovative business.
