Indian Startup Funding Hits A New Low — Just $4.4 Mn Raised This Week

During the third week of August, a significant decline in capital inflow hit the Indian startup ecosystem. Funding for Indian startups in this week amounted to only $4.4 Mn across seven deals, indicating a possible nadir in weekly funding not witnessed since 2020.

This week’s funding marks a staggering 95% drop compared to the collective $95 Mn raised by startups in the previous week across 17 deals.

Funding Galore: Indian Startup Funding Of The Week [Aug 14 – Aug 19]

Key Startup Funding Highlights Of The Week

• Speech AI startup Contiinex raised $2 Mn in Pre-Series A funding round from YourNest and Refex Capital, making it the biggest fundraise of this week.
• This week, the enterprisetech sector secured $2.5 Mn funding, making it the most funded sector. 
• Fintech emerged as the frontrunner with the highest deal count, securing $1.4 Mn across three deals.
• After recording $11.4 Mn last week, the seed funding plummeted to $1.9 Mn across three deals.

Startup Acquisitions Of This Week

• Logistics unicorn Xpressbees acquired New Delhi-based courier firm Trackon in an all-cash transaction to enter the SME courier space.
• InMobi has acquired San Francisco-based adtech company Quantcast Choice – a consent management platform (CMP) for an undisclosed amount.
• Former BharatPe cofounder Bhavik Koladiya-led venture capital firm Finix Partners has reportedly acquired fintech startup Slash.

Other Major Developments From This Week

• Bengaluru-based hyperlocal delivery startup Dunzo is in advanced talks to raise $100 Mn in its Series G round of funding. 
• Nazara Technologies has invested $500K (about INR 4.15 Cr) in Israel-based game developer Snax Games Ltd via its wholly-owned Singapore-based subsidiary Nazara PTE Ltd.
• BHIVE is launching a new coworking-focussed category II alternative investment fund (AIF) of INR 400 Cr.
• Singapore-based healthech investor HealthXCapital (HXC) has merged with marquee venture capital (VC) firm Jungle Ventures.
• Weeks after completely exiting Flipkart with $1 Bn – $1.5 Bn, Binny Bansal is planning to launch a startup in cross-platform ecommerce space.
• Peak XV Partners has signed ten term sheets in the first ten weeks since the split from its US-based parent Sequoia Capital.
• Serial entrepreneur Mukesh Bansal is in talks to raise $50 Mn in Series A funding from Peak XV Partners for his new venture in the premium fashion space.

Update | 21st August, 13:20

Headline updated to include the value of the funding.

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