Indian startup MoveInSync Technology Solutions Pvt. Ltd. is reportedly in talks with investors to raise money amid sluggish dealmaking activity in the country.
People familiar with the matter said the Bangalore-based end-to-end transport system is seeking fresh funding of about $50 million to $60 million, with part of it to offer early investors a partial exit.
US venture capital firm Bessemer Venture Partners is one of the investors MoveinSync is discussing with, according to the people.
MoveinSync has declined to comment, while Bessemer has yet to respond.
In April 2018, the company raised $8 million in a Series B funding round headed by Nexus Venture Partners.
Inventus Capital Partners, Saama Capital India Advisors LLP, Qualcomm Ventures, and Athera Venture Partners also back the mobility solutions provider to blue-chip firms for employees’ commute.
India Struggles with Slow Dealmaking
MoveinSync’s potential funding round came amid a slowdown in India’s merger and acquisition (M&A) activity, which is particularly weighing startups in the growth phase.
In October, India said it would only establish four to five unicorns in 2024 as a ‘funding winter’ hindered digital firms’ efforts to raise funds from investors.
Managing director and co-head of digital and technology investment banking Pankaj Naik stated that the country might see fewer emergence of unicorns, as this year and the next are expected to be a period when investments would continue, but the valuations will not increase two or threefold or 50% in two months.
MoveinSync, which has grown its monthly active user base by 450,000, looks to be ready for an initial public offering (IPO) in the next two to three years, with $47 million in average revenue rate and more than twice the year-over-year growth.
Indian companies are not the only ones struggling to raise money as the startup pace faltered worldwide. Data from an India-based information tech services provider showed that venture funding fell around 72% in the first half of 2023 from a year ago.
From January to June of this year, the country created zero unicorns, compared with the 19 unicorns logged in 2022.
According to Naik, M&A activity among digital firms would gain momentum if valuation gaps between founders and investors narrowed and companies would keep working on or expanding their capabilities.