Betterhalf, a matrimony startup, raises $8.5 million in Series A funding round

• ByStartupStory     |    March 3, 2023

Betterhalf has raised $8.5 million in a Series A funding round, building on its successful Pre-Series A round, where it secured $3 million from investors including S2 Capital, Quiet Capital, Kunal Shah, and Samvit Ramadurgam in May 2021. Betterhalf also received $500,000 investment from Y Combinator’s Winter 2021 cohort.

Betterhalf, an AI-powered matchmaking startup, has secured $8.5 million (INR 70.2 crore) in its Series A funding round, with participation from FinSight Ventures, Rebel Fund, and Nurture Ventures. Angel investors, including Mike Krieger, cofounder of Instagram, and Arash Ferdowsi, cofounder of Dropbox, as well as former Bumble CMO Derek Callow and former Spotify product head Brendan O’Driscoll, also joined the funding round. 

Betterhalf, which focuses on high-income individuals in Tier I cities in India, was established in 2016 by Pawan Gupta and Rahul Kumar Namdev, both MIT graduates. The company claims to have created the world’s fastest AI-based matchmaking system, which has been patented in the US (US Patent No. 16/777,773). Betterhalf utilises data from couples worldwide and leverages AI to provide a personalised experience, including targeted subset matches and quick turnaround times to find the most suitable partners.

In addition to its AI-based matchmaking system, Betterhalf provides human matchmakers for a more tailored search experience. The startup also offers wedding services such as venue décor, photography, and makeup. Recently, Betterhalf has expanded its offerings to include wedding loans and planning services.

Betterhalf faces competition from well-established players in the Indian market, including Shaadi.com, BharatMatrimony, and Jeevansaathi. Despite this, the startup has witnessed significant growth, with its user base increasing three-fold over the past nine months, according to a report by VCCircle. Matrimonial services are a significant part of weddings in India, with online matrimonial services generating a revenue of approximately $260 million in 2022, up 2.4 times from $110 million in 2017, according to a Statista report.

Match Group, the parent company of Tinder, is reportedly in discussions to acquire a stake in Shaadi.com, a leading matrimonial service provider in India. This news comes just five months after Shaadi.com CEO and founder, Anupam Mittal, announced the company’s plans to go public in the latter half of 2023.

Follow Startup Story