[Weekly funding roundup July 18-24] VC inflow into Indian startups plummets
The clear absence of large deals resulted in sharp decline in venture capital funding into Indian startups this week
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Venture capital (VC) funding into Indian startups saw a sharp decline in the fourth week of July primarily due to the absence of large deals signifying the uncertain nature of fund inflow in the present environment.
The total funding for the week came in at $162 million across 17 deals. In contrast, the previous week saw VC funding of $431 million, aided by the deals of Emergent and Udaan.
This steel fall in VC funding reveals the challenges faced by the Indian startup ecosystem as the macroeconomic environment continues to remain uncertain leading to an uneven inflow of capital. In addition, there has not been any definite investing theme for the ecosystem till now.
During this week, the highest funded transactions came in the range of $40 million. Also, in the stages of funding, the value did not cross $100 million in any stage.
The dominant theme of VC funding is around artificial intelligence (AI) and unfortunately in India the pace has still not picked up by these kinds of startups. There are few examples like Sarvam and Emergent, but this category is yet to gather momentum. This appears to be a major obstacle in funding momentum not picking up in the country.
The only expectation is that there would be a late momentum in the fund raise for the remaining part of the year.
Key transactions
Deeptech startup Raghu Vamsi Aerospace Group raised $40 million from Norwest, Skegen Asset Management, IndusBridge Ventures, GJNX Ventures, and investor Ashish Kacholia.
Banking technology company BusinessNext raised $40 million from ServiceNow.
Healthtech startup Plazza raised $15 million from Accel, Elevation Capital, Nexus Venture Partners, All In Capital and Better Capital.
Healthtech startup CARPL raised $10 million from International Finance Corporation (IFC), Stellaris Venture Partners and other investors.
Traveltech startup 30 Sundays raised Rs 61 crore ($6.3 million approx.) from Bessemer Venture Partners, Info Edge Ventures and Eximius Ventures.