The Indian startup ecosystem witnessed a sharp dip in funding this week, with startups collectively raising $65.3 million—a steep 67% decline compared to the previous week’s $195.1 million. Despite the slowdown, 22 startups secured investments, marginally higher than last week’s 20 deals. Here’s a detailed look at the week’s funding highlights and key developments shaping India’s startup landscape.
Funding Overview: $65 Million Raised Across 22 Deals
Deeptech startups led the funding rounds this week, pulling in $22.9 million across four deals. The standout was Garuda Aerospace, a drone technology company, which raised $11.7 million in a Series B round led by Venture Catalysts. The funds will help Garuda scale production and accelerate R&D for advanced defence drones, pushing its valuation to $250 million.
Other notable deeptech fundraises included Optimized Electrotech, which secured $6 million in Series A funding from Blume Ventures and Mela Ventures, and Peppermint Robotics, which raised $4 million in Series A funding.
E-commerce and B2B Startups Also Attract Capital
E-commerce startups raised $22.3 million across nine deals, with Jewelbox—a lab-grown diamond jewellery brand—raising $3.2 million in a pre-Series A round led by V3 Ventures. Other e-commerce players like Nothing Before Coffee, Good Monk, and PujaShree Products Global also secured funding.
In the B2B space, OfBusiness, a unicorn in B2B ecommerce, raised $11.7 million in a pre-IPO round from Cornerstone Ventures, gearing up for a potential IPO later this year.
Early-Stage Funding and Seed Rounds
Early-stage startups raised approximately $33.4 million, with SaaS startup Magma leading with a $5 million Series A round. Other early-stage fundraises included healthtech, cleantech, and robotics startups. Seed-stage funding saw a sharp fall, with only $2.3 million raised compared to $10.1 million last week.
IPO Preparations Gain Momentum
Several fintech unicorns are advancing their IPO plans:
- PhonePe, backed by Walmart, converted into a public company and is targeting a $15 billion valuation for its IPO slated in 2025.
- Razorpay also converted to a public company as part of its IPO preparations, aiming for a public listing within two years.
- Wonderchef, led by celebrity chef Sanjeev Kapoor, is planning an IPO this year targeting a valuation of INR 1,800 crore.
- Imarticus Learning is preparing to file for an IPO within 4-5 months to raise around INR 750 crore.
Other Notable Developments
- SaaS major Clevertap acquired promotion automation platform rehook.ai to expand its service offerings.
- Wow! Momo is in talks with investors including Haldiram’s promoter and Malaysia’s Khazanah Nasional for fresh funding.
- Fintech giant CRED plans to raise $100-200 million at a reduced valuation of $4 billion, down from $6.4 billion in 2022, while eyeing profitability and an IPO in the next two years.
- Sportswear startup Agilitas roped in cricketer Virat Kohli as an investor to fuel its global expansion.
- Customer engagement platform MoEngage is in talks to raise $150-180 million at a valuation of $800-850 million.
- Logistics startup Porter is discussing a mega funding round with Wellington Management, potentially pushing it to unicorn status.
This week’s funding activity reflects cautious investor sentiment amid corporate governance concerns, with a notable slowdown in total capital raised. However, deeptech and ecommerce sectors continue to attract significant interest. The growing wave of IPO preparations among fintech and tech startups signals confidence in India’s long-term startup growth story.