Case Study 01: Deeptech Startup Valuation in Bangalore, India

Background

Startup Venture A is a Bangalore-based deeptech startup operating in the advanced battery and electric aviation ecosystem. Founded in early 2023, the company focuses on developing lightweight, high-performance lithium-ion battery solutions for drone and electric aviation applications. At the time of engagement, the startup was at the seed stage and preparing to raise institutional capital to scale product development, manufacturing, and market entry.

Engagement Objective

The founders of Startup Venture A engaged Chunder Khator & Associates to carry out an independent valuation discovery exercise to support an upcoming fundraising round. The objective was to arrive at a defensible valuation range that could serve as a credible reference point during negotiations with investors, while reflecting the company’s growth potential, technology differentiation, and sector-specific risks. As noted in the valuation report, the exercise was undertaken on a going concern basis and for fundraising purposes, and not for statutory compliance.

Valuation Challenges

As a deeptech startup with limited operating history, Startup Venture A presented several valuation complexities:

• Early-stage revenues with high upfront R&D investments

• Long product development and commercialization timelines

• High business and liquidity risk typical of seed-stage ventures

• Dependence on future scalability and adoption within a niche but fast-evolving sector

• Dependence on multiple rounds of external capital

These factors required a valuation approach that went beyond a single-method analysis.

Our Approach

To address these challenges, we adopted a multi-method valuation framework, triangulating value using three widely accepted approaches for early-stage startups:

• Venture Capital Method (VCM)

• Discounted Cash Flow (DCF) Method

• Comparable Transaction Multiple Method (CTM)

Each method was applied using management-provided business projections, proprietary sectoral benchmarks, and transaction data from comparable Indian battery technology and UAV companies. Higher weightage was assigned to the DCF method, as it captured company-specific strengths and long-term cash flow expectations, while the other methods provided market validation.

Key Considerations

• For VCM valuation, given that Startup Venture A was at a seed stage with limited operating history, investor return expectations were aligned with early-stage venture benchmarks. The expected internal rate of return (IRR) factored in the company’s technology risk, commercialization timeline, and execution uncertainties typical of deeptech ventures. The expected dilution in investor's stakes over the next 5 years were derived from our proprietary research on India's startup ecosystem.

• For discount rate used in DCF valuation, in addition to market-wide risk factors, entity-specific risks such as dependence on future funding rounds, scalability of manufacturing, and regulatory approvals were evaluated. As the equity interest being valued was a non-marketable minority interest, appropriate discounts and adjustments were considered to reflect liquidity constraints and limited exit visibility at this stage.

• To validate valuation outcomes against market reality, comparable transactions involving Indian battery technology and UAV-focused companies were analysed. These comparables provided insight into valuation multiples applied by investors in similar sectors and stages, helping anchor assumptions used in the valuation. Publicly available transaction data was sourced from credible premium databases and adjusted for scale, timing, and sector relevance. Here's what the comps table looked like:

Company Name	Sector	Funding Round	Pre-Money Valuation (₹ Cr.)	Forward Revenue (₹ Cr.)	Forward Revenue Multiple
ideaForge	Multi-sector UAV	Series A	153.00	32.70	4.68
Newspace Research & Technologies	Defence UAV	Series A6	660.30	108.20	6.10
Log9 Materials	Battery Manufacturer	Series A4	314.10	24.70	12.72
Waaree ESS	Battery Manufacturer	Angel	81.00	6.70	12.09
Cygni Energy	Battery Manufacturer	Series A2	200.00	51.60	3.88
Indigrid	Battery Manufacturer	Angel	347.40	70.10	4.96

• Sensitivity analysis was performed to test valuation robustness across key assumptions - including revenue growth rates, terminal value assumptions, and discount rates - were stress-tested to assess their impact on valuation outcomes. This ensured that the final valuation range remained robust under varying scenarios and provided transparency to stakeholders on how changes in assumptions could influence value.

Outcome

The exercise resulted in a valuation range that balanced investor expectations with the founders’ long-term vision. The valuation served as a practical negotiation anchor during fundraising discussions and provided clarity to stakeholders on the drivers of value, risks, and future upside.

By using a structured, multi-pronged methodology, the valuation enhanced the credibility of Startup Venture A’s fundraising narrative and supported informed decision-making by both founders and prospective investors. The venture successfully ended up raising its Seed round from institutional investors.

Conclusion

This case study demonstrates how startup valuation services in Bangalore, when executed with technical rigor and sector understanding, can play a critical role in enabling early-stage deeptech companies to raise capital with confidence. At Chunder Khator & Associates, our valuation discovery engagements are designed to be defensible, transparent, and commercially relevant, aligning with the realities of India’s evolving startup ecosystem. Our valuation services includes:

• Valuation Discovery for Fundraise

• Valuation Certificates for Compliance

• ESOP Valuation

• Valuation for Mergers & Acquisitions

• Valuation for Financial Reporting

• Valuation Review & Second Opinions

Read more about our valuation services here.

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Disclaimer: The material herein is provided for informational purposes only. The information should not be viewed as professional, legal or other advice. Professional advice should be sought prior to actions on any of the information contained herein. CKA is not responsible for any matter concluded by any person based on the contents of this article.