[Weekly funding roundup March 14-20] Venture capital into Indian startups sees a sharp rise

The third week of March witnessed a certain relief for the Indian startup ecosystem as venture capital (VC) saw a sharp increase, with the primary contribution coming from the $155 million transaction of Weaver Services.

The total funding for the week stood at $358 million from 27 deals. In contrast, the previous week saw $143 million being raised. This is the third highest amount on a weekly basis raised by the Indian startup ecosystem for the year till now.

The highest amount raised was $705 million in February followed by $373 million in the month of January.

In the current week, the investors’ money was into diverse segments, which included fintech, NBFCs, consumer, etc. There was no definite theme of investing as the bets were largely placed on individual companies.

However, this sharp increase in fund inflow also masks the challenges continuing to stare at the ecosystem. This week, the transaction of Weaver Services accounted for around 43% of the total funding raised and this shows that a single deal can swing the pendulum.

The broad trends have not changed as pre-Series A segment continues to show traction in terms of large numbers of deals but the quantum of money remains low. There is no appreciable increase in the late stage funding category.

Any revival in the steady flow of VC into Indian startups will continue to remain a challenge till the armed conflict between Iran and the United States, Israel comes to end.

Key transactions

Weaver Services, a technology driven housing finance platform, raised Rs 1,450 crore ($155 million approx.) led by Premji Invest and Lightspeed Venture Partners.

Ecofy, an NBFC focused on financing climate change solutions, raised Rs 380.5 crore ($41 million approx,) from BII and DAIF.

Visa processing startup Atlys raised $36 million from Susquehanna Asia VC, Elevation Capital, Long Journey Ventures, Peak XV Partners, and MakeMyTrip.

Alternative credit platform BlackSoil Capital raised Rs 200 crore ($21.3 million) from Impact Fund Denmark.

Tech startup Aerchain raised $13 million from Pavestone VC and IndiaMart.

Optimo Capital, a tech enabled NBFC, raised Rs 100 crore ($10.6 million approx.) from Punjab National Bank.

Quick-service restaurant chain Burger Singh raised Rs 82 crore ($8.7 million approx.) from Artal Asia, Negen Undiscovered Value Fund, and Aurum Rising India Fund.

Commercial interiors startup Officebanao raised $7.7 million from Lightspeed, Medra Family Office, and other investors.

B2B software startup BambooBox raised $6.6 million from Peak XV Surge, Emergent Ventures, Arc180, Uncorrelated, HAF, and angel investors.