[Weekly funding roundup June 20-26] CRED fundraise helps VC inflow to cross $1B
Venture capital funding into Indian startups crossed the $1-billion mark on a weekly basis for the first time since 2023 and this was primarily due to $900 million fund raise of CRED.
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The last week of June saw venture capital funding into Indian startups crossing the $1 billion mark on a weekly basis for the first time since 2023 and this was primarily due to the $900 million fund infusion into Kunal Shah-founded fintech unicorn CRED by Meta.
The funding raised by CRED is also the largest ever by an Indian startup since 2023, as per data available with YourStory Research.
The total funding for the last week of June came in at $1.1 billion from 19 deals. In contrast, the previous week saw total funding of $393 million, which was primarily boosted by the $234 million transaction of Sarvam AI.
As much as there was a steep increase in funding this week, caution has to be taken against jumping towards a conclusion that VC funding into Indian startups is on an upward curve as these spikes were largely due to single large transactions.
The funding raised by CRED was important on two counts. First, a global company like Meta which has businesses such as Facebook, Whatsapp and Instagram putting almost $1 billion into an Indian startup. Second, Kunal Shah now becomes the CEO of Whatsapp globally.
At the same time, the reduced tension between Iran and the United States gives some hope that there would be some stability coming back and this may lead to increased funding inflow into Indian startups.
However, the challenge primarily remains on whether the Indian startup ecosystem can attract a steady inflow of high volume capital. As of now this does not seem to be the case and the dependence will be on single large value transactions to shore up the numbers.
Key transactions
Bengaluru-based fintech unicorn CRED raised Rs 8,550 crore (approximately $900 million) led by Meta.
Real estate and mortgage platform Square Yards raised Rs 900 crore ($95 million approx.) from EAAA Alternatives and Muzinich & Co.
Cybersecurity startup Mitigata raised $15 million from Bessemer Venture Partners, Nexus Venture Partners, Titan Capital, and WEH Ventures.
SuperLiving, a wellness & preventive health platform raised $7 million from Lightspeed, Kae Capital and All-in Capital.