(Weekly funding roundup June 27-July3) VC inflow sees a sharp decline
The sharp fall in venture capital funding in the first week of July was on expected lines, as the previous week saw the CRED transaction, which was a one-off large deal.
Venture capital (VC) funding into Indian startups saw a steep decline in the first week of July, and this is understandable given that the previous week recorded a $900-million capital raise by CRED.
The total funding raised during the week was $107 million across 22 deals. In contrast, the previous week saw $1.1 billion being raised.
This sharp fall in VC funding was on expected lines as the CRED transaction was a one-off deal. This week saw no support in terms of larger value transactions; the highest funded startup this week raised just $17 million.
During this week, interestingly, there was a diverse set of startups that raised funding, including a kitchenware brand, a real estate firm, and a climate tech startup. This reveals the diversity in the Indian startup ecosystem, and investors are betting on ventures that do not typically fall into the tech category.
Overall, there are signs of optimism going by the VC funding raised during the first six months of the year, which stood at $6.9 billion.
Key transactions
Kitchenware brand The Indus Valley raised $17 million from Gaja Capital, DSG Consumer Partners, Rukam Capital, and The Chennai Angels.
Managed workspace provider Incuspaze raised Rs 150 crore ($15.7 million approx.) from Bharat Value Fund and other financial institutions.
Cleantech startup BatX Energies raised Rs 105 crore ($11 million approx.) from IvyCap Ventures, Zephyr Peacock, Mankind Pharma Family Office, Excel Industries Family Office, and JITO.
Financial services firm Dovetail Capital raised Rs 100 crore ($10.4 million approx.) led by Elev8 Venture Partners.
AI startup Kapture CX raised $10 million from Bajaj Finserv Ventures, Cactus Venture Partners, and India Alternatives.
Age Care Labs raised Rs 85 crore ($9 million approx.) from Shrem Group, Rainmatter, Pegasus Finvest, and family offices.