Indian Startups Secure $395 Million This Week, A Massive 350% Jump

Riding on overall economic growth, Indian startups raised more than USD 395 million in at least 20 deals this week, a massive 350 per cent jump from USD 113 million secured last week in 22 deals.

Funding to startups

Hospitality and travel-tech company Oyo led the funding ecosystem by raising Rs 1,457 crore (nearly USD 175 million) in a Series G round from investors like InCred Wealth, Patient Capital, J&A Partners, the family office of Mankind Pharma promoters, and ASK Financial Holdings, among others.

Neo, a wealth and asset management firm, secured Rs 400 crore (about USD 48 million) in a Series B round led by MUFG Bank and New York-based Euclidean Capital LLC. EV firm Ather Energy reportedly secured USD 71 million led by the National Investment and Infrastructure Fund (NIIF), taking its valuation to USD 1.3 billion and making it a new unicorn.

Total capital raised over last three months

With this, the company managed to raise over USD 125 million in the last three months. Fintech startup Innoviti raised Rs 70 crore (USD 8.5 million) in a combination of equity and debt, led by Random Walk Solutions, with participation from existing investors Bessemer Venture Partners USA, Patni Family Office India, and Alumni Ventures.

In the month of July, Indian startups raised USD 1.03 billion as the government abolished the angel tax in the Union Budget 2024–25, which was levied on foreign investors.

Total number of deals

According to reports, Indian startups raised USD 1.03 billion via 126 deals. Out of these, 28 were growth or late-stage deals worth USD 725 million, whereas 72 were initial-stage deals worth USD 311 million. Indian startups raised USD 1.93 billion in funding in June.

Government-recognised startups have generated more than 15.5 lakh direct jobs to date. The Department for Promotion of Industry and Internal Trade (DPIIT) has recognised 1,40,803 entities as startups (as of June 30). More than 55 regulatory reforms have been undertaken by the government since 2016 to enhance ease of doing business, ease of raising capital, and reduce compliance burdens for the startup ecosystem.