[Weekly funding roundup July 4-10] VC inflow remains flat

The month of July has remained subdued so far for the Indian startup ecosystem as venture capital showed largely flattish growth on a weekly basis, primarily due to the absence of any large-value deals.

June, in contrast, was a strong month for startup fundraising, with total capital raised crossing the $1 billion mark, largely driven by CRED's $900 million funding round. However, that momentum has failed to carry into July, resulting in a relatively muted funding environment.

Total funding in the second week of July stood at just $107 million across 27 deals, almost the same amount raised in the previous week.

In fact, the largest funding round this week was Adage Automation's $24 million raise. There were virtually no large-ticket deals during the week, reflecting the challenges Indian startups continue to face in raising capital.

Venture funding into Indian startups has remained around the $100 million mark for two consecutive weeks, which is not a positive sign for the ecosystem. Given the current macroeconomic environment and ongoing tensions in the Middle East, a revival in funding inflows appears unlikely in the near term.

However, there are signs that investors remain interested in backing Indian startups, as evidenced by the new fundraise by growth-stage VC firm Fundamentum Partnership. The difference now is that investors are increasingly keen to bet on deeptech and AI startups, though their numbers remain lower than in countries such as the US and China.

Key transactions

Industrial technology company Adage Automation raised Rs 230 crore ($24 million approx.) from InCred Growth Partners Fund, Global South Capital, and Prachetas Capital.

Edtech startup Elevate Education raised Rs 170 crore ($18 million approx.) from WestBridge Capital.

Aukera, a lab-grown diamond jewellery brand raised Rs 90 crore ($10 million approx.) from Alteria Capital, InnoVen Capital, and Lighthouse Canton.