[Weekly funding roundup May 30- June 5] Investor appetite in the startup ecosystem rebounds after a dull week

The first week of June turned out to be a period of relief for the Indian startup ecosystem as venture capital funding bounced back after hitting a new low in the previous week.

The total funding for the week stood at $181 million from 18 deals. In contrast, the previous week saw total VC inflow of $66 million, which was the lowest ever number on a weekly basis for the year till now.

During this week, there were reasonable sized transactions which were in the range of $25 million to $55 million which lifted the funding momentum, though none of the deals crossed $100 million in value. In the current environment it has become a challenge to raise large amounts of capital by any startup.

Given that there is no definite investment theme or trend in the Indian startup ecosystem, startups from diverse segments raised capital this week. This includes segments like quick commerce, cybersecurity, electric vehicles to name a few.

Also, the number of deals on a weekly basis continues to be at the lower range. Unless there is a rise in the number of these deals coupled with higher value transactions, it is unlikely that there would be an uplift in the overall funding momentum.

Key transactions

Quick commerce app FirstClub raised $55 million from Peak XV Partners, Sofina, Accel, RTP Global, and Paramark Ventures.

Cybersecurity startup Innefu Labs raised $30 million Panthera Growth Partners.

EV startup Simple Energy raised Rs 250 crore ($26.2 million approx.) from Arokiaswamy Velumani family office, Simple Energy founders, HDFC Bank, Capitar Ventures and NBFCs.

Sportswear platform Agilitas raised Rs 225 crore ($23.6 million approx.) from Nexus Venture Partners and Rainmatter by Zerodha.

AI video generation startup TrueFan AI raised $10 million from Baring Private Equity Partners India, Z3Partners, IAN Alpha Fund and 3Lines Venture Capital.