[Weekly funding roundup Sept 30-Oct 6] VC funding remains lackluster; startups raise $120M

The month of October started on a tepid note for the Indian startup ecosystem as venture capital (VC) inflow in the first week remained range-bound with fewer deals and the absence of large-value transactions.

The VC funding for the first week of October stood at $120 million cutting across 13 deals. In comparison, Indian startups raised a total funding of $114 million in the previous week.

Venture funding amount in the $100 million range on a weekly basis has been the norm in the second half of 2023. As per YourStory Data, since June, the Indian startup ecosystem has managed to raise over $200 million on a weekly basis only four times.

These trends have led to Indian startups raising $8.2 billion for the nine months of this year, a 59% drop as compared to 2022. In all probability, 2023 may end at just half the amount of what Indian startups raised in 2022, which is $24 billion.

Now, the only hope is that next year will turn out to be better for the Indian startup ecosystem, as a much liberal flow of capital is expected.

Key transactions

Bizongo, a B2B ecommerce startup, raised $50 million from Schroder Adveq, IFC, Corp, Chiratae Ventures, B Capital, and British International Investment.

House of Brands firm Mensa Brands secured $40 million from EvolutionX Debt Capital, a leading debt financing platform for growth-stage companies.

Bolt.Earth, an EV infrastructure and software startup, raised $20 million from Union Square Ventures, Prime Venture Partners, and ITIGO Funds.