The Indian startup ecosystem saw a flurry of activity in the week of December 23-28, 2024, as nine startups collectively raised around $47.7 million in funding. This week’s deals included one growth-stage investment and six early-stage rounds, although details for two of the transactions remain undisclosed. This report gives an overview of the funding landscape, key players, and notable acquisitions during this period.
PC: The Plunge Daily
Total Funds Raised
Indian startups collectively took in $47.7 million this week, which declined by 75.12% from last week’s aggregate of $192 million. This drastic decrease indicates just how volatile startup funding was going into the final stages of the year. With eight weeks’ average fund amounting to about $286.79 million per week and having about 24 deals, the above number was unprecedented.
Breakdown of Deals
Among the nine startups that brought in funds:
Deal Type: Growth Stage
EPACK : The company that provides turn-key solutions for pre-engineered buildings was the most highlighted, with a funding that stood at $25 million.
Early-Stage Deals:
Six startups raised their combined total to $27.7 million. Those are:
- Univest: This is a professional stock trading advice provider.
- Mindgrove: A fabless semiconductor design startup.
- Sparkl Edventure: Online tutoring platform.
- Proxgy: An IoT innovator.
- SustVest: Sustainable investment platform.
Other companies were Naxatra Labs and M37Labs, which also received funding, but the amount was not disclosed.
City-wise Distribution
In terms of city-wise, Delhi-NCR startups led the charge with four deals. The next closest were Bengaluru, Chennai, and Ahmedabad startups, which reflected a broad spectrum of entrepreneurial ventures across India.
Sector-wise Performance
The week was dominated by fintech, with two deals for the sector. Other sectors that made it to the list include proptech, semiconductor, edtech, IoT, and agritech, which reflect a wide spectrum of interests among investors.
Series-wise Deal Distribution
The week also saw a range of funding series, with Series A and Seed funding co-leading the chart with three deals each. Next in line were Series C, pre-Series A, and pre-Seed rounds, which indicate healthy interest in early-stage investments.
Major Acquisitions
The week was also marked by significant acquisitions:
- Xcelerate, a Singapore-based operating and investment platform, took a stake in knowledge-driven business services provider Carisma Solutions.
- TVS Motor completed the acquisition of DriveX Mobility for $11.5 million, strengthening its presence in the mobility sector.
Key Hirings and Departures
Talent movement marked the startup ecosystem with notable hires and exits:
- Foundit brought on board Pranay Kale, Anupama Bhimrajka, and Tanesh Arora to different positions.
- Evocus welcomed Pramod Joshi as the Head of Retail Sales and Export.
- Groyyo elevated Nitin Jain to Co-founder.
Conversely, there were notable departures, including:
- PayU’s Chief Investment Officer, Vijay Agicha, resigned.
- Ola Electric saw the exit of its CMO, Anshul Khandelwal, and CTPO, Suvonil Chatterjee.
Financial Results and Market Updates
Several startups reported their financial results for the fiscal year ending March 2024:
- Exotel had the same revenue while it further cut down its losses to 61%.
- ShopKirana scaled issues but managed to bring its losses down to 30%.
- LEAD clocked in a massive revenue of ₹350 crore, cutting its losses to 56%.
- Curefoods saw an income of ₹635 crore, which cut its losses in half.
Market Updates
In other news, IndiQube and Greaves Electric, parent company to Ampere, filed for enormous IPOs that would make them raise ₹850 crore and ₹1,000 crore, respectively. However, Zomato became the first ever Indian startup to enter into the Sensex 30, going on to mark the surging status of startups as a significant force in the Indian economy.
Conclusion
The week of December 23-28, 2024, highlighted the dynamic nature of the Indian startup ecosystem, despite a notable drop in funding compared to previous weeks. The diversity in sector representation and the continued interest in early-stage ventures demonstrate resilience in the face of economic challenges. As companies gear up for the new year, the focus will likely remain on innovation and strategic growth to navigate the evolving market landscape.
