The Indian startup ecosystem witnessed another eventful week from August 19 to 24, with 21 startups successfully raising $144.46 million in funding. The week saw a mix of early and growth-stage deals, fund launches, key hirings, strategic acquisitions, and even some setbacks, underscoring the industry’s dynamic nature.
Funding Highlights
In a week that saw a noticeable dip in overall funding, 21 Indian startups raised $144.46 million. This marks a significant 66.57% drop from the previous week’s $432 million haul, highlighting the volatile nature of startup funding.
Growth-Stage Deals Lead the Way
The growth-stage segment was particularly active, with five startups securing $91 million in total funding. Among these, Livpure, a D2C water purifiers and air conditioners manufacturer, led the pack with a $28 million Series C round. Hangyo, a D2C ice cream brand, followed closely, raising $25 million. Other notable deals included Axio, an online lending platform, FlexiLoans, a fintech lender focused on MSMEs; and Uppercase, a D2C luggage brand, each raising $20 million, $9 million, and $9 million, respectively.
Early-Stage Startups Shine
On the early-stage front, 13 startups raised $53.46 million. Even, a healthtech care startup topped the list, followed by equity investment platform InvestorAI, D2C spice brand Zoff, Legends League Cricket (LLC), and fintech startup TransBnk. However, three early-stage startups—PadelPark, NxtQube, and TailBlaze—chose not to disclose their funding amounts.
City and Segment Analysis
Bengaluru and Delhi-NCR emerged as the leading hubs for startup activity, each accounting for seven deals. Mumbai, Mangalore, Chennai, Raipur, and Nashik contributed to the week’s funding tally. Regarding industry segments, fintech led the charge with seven deals, followed by e-commerce, sports tech, agritech, AI, aquatech, and drone tech.
Series-Wise Funding Breakdown
Seed funding dominated the landscape with seven deals, while Series A saw five, pre-Series A and Series B had two each, and there was one debt deal. The diversity in funding stages indicates a healthy mix of investments across different levels of startup maturity.
Fund Launches and Strategic Moves
The week also saw significant activity in the realm of fund launches. Backed by Snapdeal co-founders Kunal Bahl and Rohit Bansal, Titan Capital Winners Fund achieved its target corpus of Rs 200 crore. The fund will focus on follow-on investments in standout companies from its seed portfolio. Meanwhile, Volt VC launched its first fund to address the pre-seed funding gap in India, and Arka Investment Advisory Services closed its Arka Credit Fund I to support mid-market corporates. Additionally, PhysicsWallah unveiled the PW School of Startups (SOS) with a Rs 100 crore fund to nurture entrepreneurial skills and support 100 startups over the next five years.
Key Hirings
Notable leadership changes also made headlines this week. Brij Bhushan, co-founder and former COO of Magicpin, joined Prime Venture Partners as a full-time venture partner. Sachin Bansal’s Navi Finserv appointed former RBI executive Anil Kumar Misra as their non-executive chairman. Other significant appointments include Rajesh Kini as CFO of Perfios, Shantanu Bairagi as CEO of Veefin Capital, and Prasanth Nair as CTO of Zapcom Group Inc.
Mergers and Acquisitions
The mergers and acquisitions (M&A) landscape saw significant activity, with Zomato acquiring Paytm’s movies and ticketing business in a deal valued at Rs 2,048 crore ($244 million). This acquisition, which includes Paytm subsidiaries TicketNew and Insider, will allow Zomato to diversify its offerings beyond food delivery. Zappfresh, an online retailer of fresh fish and meat, also strategically moved by acquiring Mumbai-based Bonsaro, specializing in online delivery of poultry, goat, and seafood. This acquisition is part of Zappfresh’s broader strategy to expand operations in the western region of India.
Challenges and Shutdowns
However, the week wasn’t without its challenges. Kenko Health, a Mumbai-based healthcare startup, shut down operations due to a financial and operational crisis. Despite raising over $13.7 million, the startup faced mounting losses and failed to secure an insurance license, leading to its collapse.
Looking Ahead
While this week saw a downturn in funding, the Indian startup ecosystem continues to show resilience and adaptability. With ongoing strategic investments, key hirings, and M&A activities, the landscape remains dynamic and poised for future growth.
