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The Hyd-based startup will use the funds to build four different application areas - fitness, virtual reality, industrial automation and drones.

Hug Innovations raises 5 million at TiE Hyderabads Guardian Angel Live Instant FundingRaj Neravati, founder, Hug Innovations
Atom Startups Saturday, June 24, 2017 - 21:35

TiE Hyderabad chapter conducted the Indian version of Shark Tank - a popular television show where startups pitch to investors in order to raise funds. 

TiE organized ‘The Guardian Angel 2.0’, the second edition in Hyderabad where four startups out of 125 applicants pitched to a panel for four investors. 

Gesture control startup Hug Innovations was the only startup that succeeded in raising $5 million (Rs 33 crore​​) series A Funding at a valuation of Rs 100 crore from NRI Startup India.

Interestingly, Hug asked for either a Series A Funding or an investment of $10 million. And founder Raj Neravati didn't want to dilute any stake. 

After much negotiation, this T-Hub startup succeeded in cracking this deal with NRI Startup India. 

Hug Innovations is a gesture-control technology and devices startup that developed the world's first gesture controlled smartwatch. 

The startup will be using the funds to build four different application areas, which are fitness, virtual reality, industrial automation and drones.

​​Rakesh Bhatia, chair, The Guardian Angel said, “We are overwhelmed. The second edition of The Guardian Angel brought rejoicing number of innovative startups and great stories to the platform. We are confident the tale of these successful startups will create new benchmarks in the ecosystem and drive entrepreneurship in the coming generation.”

The other startups which pitched their ideas were GoLive Gaming, Voltus Wave and Cargo Exchange.

Cargo Exchange a platform for cargo-owners, truck owners and intermediaries to trade easily came very close to a closure and were offered Rs 1.4 core funding, though the deal on the stage did not go through due to difference in opinion over valuation.

GoLive Gaming Solutions is a gaming technology company which creates game IPs incubated in CIE, IIIT-Hyderabad. It does a range of things from holding some of India’s largest competitive gaming competitions, to making independent games and building its own tech frameworks.

VoltusWave develops strategic solutions for marketing, sales, service, and operations for businesses and enterprises globally through its Software Product platform. VoltusWave’s Solutions streamline critical business operations, connect enterprises to their customers seamlessly in real-time across channels, and adapt to meet rapidly changing requirements.

The first edition in 2016 saw two startups raised funds to the tune of Rs 1.75 crore.

“We believe startups could add several millions to the economy with the right support and finance to scale-up. Our instant live funding initiative is designed to tackle this funding gap. Such opportunities also open a new window of hope for these young startups and raise their spirits to newer levels. It will also encourage them to bring exclusivity and innovation on to the table.” ​​Pradeep Mittal, President, TiE Hyderabad said.

This article has been produced with inputs from T-Hub as a part of a partner program.

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