Past several weeks witnessed slower momentum in the funding aspect of Indian startup ecosystem but lately it has bounced back and in a big way. A total of 39 startups raised $449.33 million this last week. The funding was driven by 12 growth-stage deals and 16 early-stage deals. All these signals a shift in investor sentiment.
Growth-stage startups were at the core of the week and managed to raise $389.62 million. Edtech giant Eruditus led with a $150 million funding round. It was an unsurprising move considering the ongoing digital transformation in education. The level of investment highlights potential of edtech segment as more players are seeking to scale globally.
Some not-so-big names captured the potential and beauty-tech platform Purplle is one of them. Similarly, cloud-based service intelligence platform Neuron7.ai too secured significant round. Diversity in sectors is witnessing innovation in the startup scene.
The rise in early-stage investments is well noted too with $59.71 million funding. The trend indicates that investors are willing to take risks on younger companies. Elder care startup Primus Senior Living, cloud-based MLOps platform Simplismart and AI-powered Budy.bot are some of the examples.
A total of 11 startups chose to keep their financials under wraps. The growing tendency for nondisclosure could reflect market caution. Founders may want to avoid signaling vulnerability or scrutiny in an increasingly competitive funding landscape.
Bengaluru continues to reign as the startup capital of India with 16 deals last week. Mumbai, Delhi-NCR and Hyderabad are also hotbeds of activity. The geographical diversity bodes well for the decentralization of India’s startup ecosystem.
Last week saw a jump of 234% funding from its previous last week. It paints a picture of recovery but also questions about sustainability. We are likely to see more selective but higher-quality investments as the startup ecosystem continues to mature.
In the meantime, several new funds were launched last week such as Anicut Capital’s $11 million Private Credit Fund and SBI Foundation’s “Innovators for Bharat.” All these indicate the willingness of investors to commit significant resources to India’s potential.
