From Aye Finance To Klassroom – Indian Startups Raised $14 Mn This Week

While optimism is high when it comes to funding trends in the year 2025, the deals that materialised in the first week are indicative of an opposite year-long fate. Between December 30 and January 4, Indian startups managed to raise a meagre $14 Mn across five deals. This marked a 46% dip from the $26 Mn capital raised across six deals in the preceding week.

Pertinent to mention that a similar downturn in capital influx was seen in the first week of January last year. In the first week of 2024, startups raised just $58 Mn across just nine deals. 

As we enter the year, investors and founders both are projecting an upturn in funding trends in the world’s third largest startup ecosystem. According to Inc42’s Annual Investor Survey 2024 “The Pulse Of Tech”, 91% of over 75 investors surveyed expressed increased confidence in startup investments for 2025, surpassing the 82% optimism shown by about 100 founders.

With that said, let’s take a look at the grim funding week. 

Funding Galore: Indian Startup Funding Of The Week [ Dec 30 – Jan 4 ]

Key Startup Funding Highlights Of The Week

• This week, IPO-bound non banking financial company Aye Finance raised $12.8 Mn in debt from a clutch of investors, including Northern Arc, ASK Financial Holdings. This was the largest funding round of the week.
• Edtech emerged as the most funded sector this week. While Klassroom secured an undisclosed amount in a Pre-Series A funding round led by ah! Ventures, NumberOne Academy also raised $350K from angel investor Santosh Nair.
• Two startups at a seed stage, CargoFL and Flo Mobility, raised $787K this week.

Other Developments Of The Week

• In what seemed to be a tumultuous week for hyperlocal delivery startup Dunzo, the startup is reported to look for a distress sale as the company to address its financial woes as cofounder Kabeer Biswas looks to jump ship.
• US-based venture capital firm Accel raised $650 Mn for its eighth India fund from 131 undisclosed investors.
• Securities and Exchange Board of India (SEBI) cleared Ather Energy’s INR 3,100 Cr IPO this week.
• D2C brand Minimalist is likely to be acquired by FMCG giant Hindustan Unilever Limited (HUL) in a deal that will value the startup at $350 Mn, about 5X its last private valuation.
• Healthcare unicorn Pristyn Care is reported to be in preliminary discussions to raise between $50 Mn to $100 Mn in a fresh funding round.

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