[Weekly funding roundup March 29-April 4] Steady-state VC inflow pre-empts Trump tariff impact

The month of April had a sober start for the Indian startup ecosystem as venture capital (VC) funding remained steady, as the continued absence of large deals and the ominous tariffs from the US led to further uncertainty.

The total VC funding for the first week of April totalled $202 million across 26 deals. In contrast, the previous week saw an infusion of $191 million.

This steady state of VC funding is not a surprising development given the uncertain macroeconomic environment. The new tariffs imposed by the United States have created unprecedented upheaval, which is only going to make matters worse. China has now imposed retaliatory taxes, which could be the beginning of a wider trade war.

These developments will have a bearing on the VC inflow into the Indian startup ecosystem, as much of it is dependent on funding from overseas, especially the US. This could actually lead to more thrust on early-stage funding, where the amount remains at a lower level.

There were also other developments in the Indian startup ecosystem, which have not sent the right signals. The comments by Union Commerce Minister Piyush Goyal on the lack of technology depth among Indian startups have rankled the community. Also, the Karnataka High Court’s directive on stopping bike taxis has brought in fresh challenges for the mobility segment.

Lastly, the VC funding into Indian startups remained flat for the first quarter of 2025, revealing the challenging path ahead.

Key transactions

Travel-focused fintech Scapia raised $40 million from Peak XV Partners, Elevation Capital, Z47, and 3STATE Capital.

Infinity Fincorp Solutions raised $40 million from Beams Fintech Fund, True North LLP, Jungle Ventures, and Archerman Capital.

Defense technologies startup Tonbo Imaging has raised Rs 175 crore ($20 million approx.) from Florintree Advisors, Tenacity Ventures, and Export-Import Bank of India.

Digital storytelling platform Pratilipi raised $20 million led by Jungle Ventures.

Solar energy startup Aerem raised Rs 100 crore ($11.7 million approx.) from UTEC, British International Investment, SE Ventures, Riverwalk Holdings, and Blume Ventures.

Sweet Karam Coffee raised $8 million from Peak XV Partners and Fireside Ventures.

Clothing brand Bear House raised Rs 50 crore ($5.8 million) led by JM Financial India Growth Fund III.