[Weekly funding roundup Aug 29-Sept 4] Marginal dip in fund inflow
The first week of September has not begun on a positive note as VC funding saw a marginal decline due to absence of large deals.
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Venture capital funding into Indian startups dipped in the first week of September as the ecosystem continues to face the challenge of getting large sized deals.
The total funding for the week came in at $196 million cutting across 24 deals. In comparison, the previous week saw a fund raise of $245 million.
This week the fund raise has been mirroring the dominant trend of the Indian startup where the very early stage of funding sees the maximum activity in terms of number of deals but the value of money raised is low.
The pre-Series A stage of funding saw the highest activity in terms of number of deals at 12 but the funds raised was just $24 million. The late stage funding category was boosted by the $70 million fund raise of Ultrahuman.
However, the positive aspect of this week’s funding was the spread of the investors’ bets which was into segments such as healthtech, fintech, D2C, EV to name a few.
The Indian startup ecosystem still does not have a trigger that would increase the fund inflow and this is largely due to the absence of a larger pool of credible AI startups. Though, the expectation is that the situation would turn out for the better in the months to come.
Key transactions
Bengaluru-based health intelligence company Ultrahuman has raised $70 million from Qualcomm Ventures, Labcorp, Alpha Wave, Blume Ventures, Nexus Venture Partners, and Alteria.
Battery as a service startup Yuma Energy raised $35 million led by Magna International.
Business Nextgen Finance, a new age NBFC raised Rs 215 crore ($23 million approx.) from Beams Fintech Fund I, Baring Private Equity India Fund 6, Saison Capital, and UNLEASH 1st Investment Partnership.
D2C startup Cradlewise raised $12 million from 3one4 Capital and Prudent Investment Management.
Homegrown sneaker brand Comet raised Rs 100 crore ($10.2 million approx.) from Verlinvest, Elevation Capital, Nexus Venture Partners, and angel investors.
Spacetech startup Kepler Aerospace raised $8 million from Blue Ashva Capital, Finvolve India Accelerator and other investors.