[Weekly funding roundup Nov 16-22] Zepto effect boosts VC inflow to 2nd highest for 2024

The third week of November saw the Zepto effect when the quick commerce unicorn's massive $350 million fundraise led the Indian startup ecosystem to achieve the second-highest weekly venture capital (VC) funding this year.

The total VC funding during the week totalled $575 million, cutting across 22 deals, and this was primarily due to the transactions in Zepto and HealthKart. The comparable previous week raised $174 million.

This is the fourth time in 2024 that VC funding on a weekly basis has crossed the half-a-billion-dollar mark. The other three times were in the months of May, June and September. The highest weekly capital inflow for the year is $872 million. Also, this is an important psychological benchmark for Indian startups as large deal transactions are a sign of confidence for the ecosystem.

This sharp increase in VC funding is also a reflection of how large deals can bring about a change in the capital inflow. In the case of Zepto, it raised $1.35 billion in 2024 alone, and the latest funding round only saw domestic capital infusion.

The expectation is the momentum will continue into next year, with a higher inflow of VC money into Indian startups.

On the other hand, there were not so encouraging developments for the Indian startups that have graduated into the field of publicly traded companies. Honasa Consumer continues to come under pressure and its share prices continue to fall due to weak financial results. Zinka Logistics, the parent company of Blackbuck, had a tepid listing on the stock markets.

Key transactions

Quick commerce player Zepto raised $350 million from Motilal Oswal AMC, Claypond Capital, Raamdeo Agarwal, along with other domestic family offices.

Consumer nutrition platform HealthKart raised $153 million from ChrysCapital, Motilal Oswal Alternates, Neo Group, and A91 Partners.

Insurtech startup Zopper raised $25 million from Elevation Capital, Dharana Capital, and Blume Ventures.

Logistics startup Blitz raised Rs 51 crore ($6 million approx.) from IvyCap Ventures, India Quotient, Alteria Capital, and angel investors.

Consumer tech startup Billion Hearts raised $4 million from Blume Ventures, General Catalyst, and Athera Venture Partners.