[Weekly funding roundup May 25-31] VC inflow sees marginal increase

Venture capital inflow into the Indian startup ecosystem rose marginally in the last week of May.

The last week of the month witnessed a total fundraise of $197 million cutting across 30 deals. In contrast, the previous week saw funding of $113 million.

Debt funding saw an uptick this week, revealing the challenges startups continue to face when raising capital. It is likely the current situation may persist for one more quarter.

The funding trends this year have been the continuation of 2023, where the early-stage funding category witnessed the highest traction in terms of volume of deals but lower amounts raised.

There have been few transactions where individual startups have raised more than $100 million in the first five months of the year. This has actually led to a certain slowdown in the overall funding momentum.

However, there is other positive news for the Indian startup ecosystem as companies continue to get listed on the stock markets which provides exit to the investors. The latest is Awfis which had a modest debut.

At the same time, investors continue to raise capital, and this week saw Avendus and Sorin Investments raising funds. This is good news for the ecosystem as this money will flow back into the ecosystem in time.

Key transactions

Multi-product construction materials maker Infra.Market raised $50 million from MARS Unicorn Fund.

Bengaluru-based performance wear brand TechnoSport raised Rs 175 crore ($21 million approx.) from equity fund A91 Partners.

Women’s fast fashion brand Libas has raised Rs 150 crore ($18 million approx.) from IAF Series 5, a fund managed by ICICI Venture.

Zypp Electric raised $15 million from ENEOS, 9unicorns, IAN fund, venture catalysts, WFC & others.

Jakson Green, a new energy transition platform backed by Jakson Group, raised Rs 60 crore ($7 million approx,) funding from HSBC India.

EV startup Turno raised $6 million from British International Investment (BII),Quona Capital, Stellaris Venture Partners and B Capital.

Fast fashion brand High Street Essentials (HSE) raised Rs 50 crore from JSW Foundation and other family offices.

Fintech startup Vegapay raised $5.5 million led by Elevation Capital.

Tech startup Flam raised $4.5 million from TurboStart, Twin Ventures, Alphatron Capital, along with other angel investors and family offices.