[Weekly funding roundup June 8-14] VC funding dips in the absence of large deals

Venture capital (VC) funding into Indian startups dipped in the second week of June owing to the absence of large deals.

This week, startups raised a total of $223 million across 25 deals. In contrast, the previous week saw $355 million.

This weekly decline in funding has been largely due to a lack of large deals as the previous week saw Lenskart raising $200 million. There has been uneven funding momentum right through the year until now, and the bigger cheques are fewer in number.

The overall environment for the Indian startup ecosystem continues to remain uncertain, and there is no clarity on when we could see the big deals coming back. Recently, media reports said that quick commerce startup Zepto is likely to raise $300-350 million, and such large cheque transactions provide a boost to overall funding.

At the same time, the Indian startup ecosystem continues to see developments, which will have a positive rub-off in the long run. For instance, early-stage VC fund South Park Commons has opened its first office outside the United States in Bengaluru. Similarly, the response to the IPO of travel tech startup ixigo has been very encouraging, which could provide confidence to other startups looking to list on the Indian stock markets.

Key transactions

Battery Smart raised $65 million from LeapFrog Investments, MUFG Bank, Panasonic, Ecosystem Integrity Fund (EIF), Blume Ventures, and BII.

Consumer electronics startup Indkal Technologies raised $36 million led by Mauritius-based Aries Opportunities Fund.

D2C startup Foxtale raised $18 million from Panthera Growth Partners, Matrix Partners India, and Kae Capital.

Agri-finance startup Samunnati raised Rs 133 crore ($16 million) in debt from global impact investment firm Blue Earth Capital.

Ethereal Machines raised $13 million from Peak XV Partners, Steadview Capital, Blume Ventures, Enam Investments, and Sandeep Singhal.

Managed workspace provider Smartworks raised Rs 100 crore (about $12 million) from Ananta Capital, Lend Lease, Plutus Capital, and Dhawan Family Private Trust.

Renee Cosmetics raised Rs 100 crore (about $12 million) from Evolvence India and Edelweiss Group.

Fintech startup Arthan Finance raised Rs 50 crore (about $6 million) from Incofin India Progress Fund and Michael & Susan Dell Foundation.

Electric vehicle component startup Indigrid Technology raised $5 million from Cactus Partners.