(Weekly funding roundup Sept 12-18) Sharp fall in VC inflow
The third week of September saw a sharp decline in venture capital funding into Indian startups and this was primarily due to absence of large deals
In the third week of September, venture capital funding into Indian startups experienced a significant decrease, with a weekly total of $99 million across 22 deals. This is the seventh time this year that VC funding on a weekly basis has fallen below the $100 million mark, highlighting the challenges Indian startups face in securing substantial capital.
The majority of the deals were at the very early stage, typically characterized by lower value. Two notable transactions were Flam, a $40 million raise from QED Investors and several high-profile individuals, and UGRO Capital, a lending platform that secured Rs 380 crore ($39.6 million) from the Netherlands-based FMO. Despite the decline, the week saw several noteworthy deals, but no single transaction boosted the overall funding as seen in some previous weeks.
The startup ecosystem in India is expected to maintain a modest funding momentum in the remainder of the year, with hopes that next year will present better opportunities for growth.
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