Indian Startups Raise $92M Amid Funding Volatility

The Indian startup ecosystem saw a notable decrease in funding this week, with 17 startups securing a total of $92.2 million between May 18 and May 22. This represents a 70% decline compared to the $303 million raised by 15 startups in the preceding week, reflecting the ongoing volatility in the market amidst geopolitical concerns.

Fintech startup Scapia led the funding rounds, raising $63 million in a round spearheaded by General Catalyst. This substantial investment propelled the fintech sector to the top, accumulating $67.1 million for the week. In terms of deal volume, the e-commerce sector continued its lead, with six companies securing new capital.

Seed-stage funding experienced a significant uptick, with startups raising $7.6 million, a considerable increase from the $2.6 million reported in the prior week. Info Edge Ventures emerged as the most active investor, participating in funding rounds for Anscer Robotics and Trackk.

In other significant developments, Shastra VC launched its third fund with a $100 million corpus aimed at early-stage deeptech, AI, and climate science startups. Piper Serica introduced the Bharat Tech Fund, a Cat II AIF with a potential size of ₹800 Cr, focusing on Series A and B deeptech companies. Oister Global also launched its third secondary vehicle, the ACE Fund III, targeting late-stage startups with a corpus of ₹500 Cr.

Mergers and acquisitions saw OfBusiness’ lending arm, Oxyzo, receive board approval to acquire debt investment platform GoldenPi Technologies for ₹42.4 Cr. Innovaccer acquired US-based CaduceusHealth for an estimated $66 million to enhance its revenue cycle management capabilities. Additionally, Nykaa cleared the acquisition of a 24.2% stake in Earth Rhythm for ₹9.4 Cr, making the skincare brand a wholly-owned subsidiary.

Looking ahead, quick commerce leader Zepto is reportedly planning an ₹11,000 Cr ($1.1 Bn) Initial Public Offering (IPO) in July. The Competition Commission of India (CCI) also approved Blackstone’s acquisition of a controlling stake in AI cloud startup Neysa.