[Weekly funding roundup March 1-7] Sharp rise in VC capital inflow backed by $100M deals

The month of March has started on a very positive note for the Indian startup ecosystem, with venture capital (VC)) funding on a weekly basis reaching a new high for the year with two $100 million deals.

The total VC funding for the first week of March was $361 million across 22 deals—the highest amount the Indian startup ecosystem received on a weekly basis for the year till now. In contrast, the previous week saw a total of $101 million in startup funding. The second-highest amount was registered in February at $323 million.

This sharp increase in fund inflow in the week is primarily due to the large deals, especially two $100 million deals, which is seen as a positive booster for the ecosystem.

Nonetheless, it remains to be seen if this momentum will continue in the weeks ahead, as the ecosystem continues to face challenges in raising capital primarily due to a slowing economy and an uncertain macroeconomic environment.

Meanwhile, interesting developments are happening in the VC ecosystem, where funds continue to raise fresh capital to support startups. This week, Prime Ventures and A Junior VC raised capital, which augurs well for Indian startups as more capital is available for them. On the other hand, marquee VC firm Peak XV Partners continues to face challenges with one more key executive leaving the firm.

Key transactions

HR tech unicorn Darwinbox raised $140 million from Partners Group, KKR and Gravity Holdings.

Leap Finance raised $100 million in debt from HSBC under its ASEAN Growth Fund.

InsuranceDekho raised $70 million from Beams Fintech Fund, Mitsubishi UFJ Financial Group (MUFG), and BNP Paribas Cardif.

Beauty brand indē wild raised $5 million from Unilever Ventures, SoGal Ventures and True.