August 17, 2024: Venture capital (VC) funding into Indian startups saw a significant rise in the third week of August, fueled by substantial deals from major players like OYO and Ather. This uptick provided much-needed relief to the ecosystem, which had experienced inconsistent fund inflows over the past four weeks.
The total funding for the week soared by 183% compared to the previous week, reaching $379 million across 22 deals. In contrast, the previous week recorded a total fund infusion of just $134 million.
The past month has seen fluctuations in fund inflows into the Indian startup ecosystem, with late-stage funding deals proving to be a decisive factor. Notably, this week, electric vehicle startup Ather ascended to unicorn status, while OYO continued to secure funding, all while achieving operational profitability.
VC Inflow into Indian Startups Rebounds with Major Deals in August [10-16]
However, experts suggest that this irregular VC inflow may persist through the remainder of the year, as large deals remain scarce. The funding momentum is anticipated to gain traction from next year onward.
Meanwhile, Indian startups have received a positive response from stock exchanges, as reflected in the rising share prices of Ola Electric, which continues to announce new initiatives. FirstCry also made a strong entry into the stock market, offering hope to investors eyeing exits from startup cap tables.
Among the notable deals, OYO raised Rs 1,457 crore (approximately $173.5 million) from a consortium of investors, including InCred Wealth, J&A Partners, and ASK Financial Holdings. EV startup Ather Energy secured Rs 600 crore ($71 million) at a unicorn valuation from the National Investment Infrastructure Fund (NIIF).
Additionally, fintech startup Neo Group attracted Rs 400 crore ($47.6 million) from MUFG Bank, Euclidean Capital, and Peak XV Partners.
Other significant deals include fintech startup Vayana raising $20.5 million from Asia Rising Fund, IFC, Chiratae Ventures, Jungle Ventures, and various family offices. Mobility startup Fresh Bus secured Rs 87.5 crore ($10.5 million) from Maniv, Shell Ventures, Alteria Capital, and Riverwalk Holdings.
The personal care brand Beco raised $10 million from Tanglin Venture Partners, Titan Capital Winners Fund, Rukam Capital, and Synergy Capital.
Additional noteworthy investments include EV startup Kazam raising $8 million from Vertex Ventures, Avaana Capital, and Alteria Capital, while fintech startup Skydo secured $5 million from Elevation Capital. The D2C women’s apparel brand Fashor also raised $5 million from Blume Ventures.
