January 1, 2025: Week 2 of January , Indian Startups witnessed a steady growth of Venture capital funding marking a better prospects for the week ahead and forward. The total funding for the second week of January came in at $100 million spread over 19 deals.
The first week saw VC funding pegged at mere $14 million. The consistent increase in VC funding is a positive signal for the Indian startup ecosystem as this indicates there is great potential for the rise in investments inflow in the short term. This can be backed by the latest fundraise of premier VC firm Accel, which secured $650 million.
This week also spotlighted healthcare-focused SaaS unicorn Innovaccer which managed to successfully raise $275 million. The US headquartered firm, has the majority of its skill force housed in its facilty in India.
Despite this positive sign, challenges continue to pinch the Indian startups ecosystem in terms of garnering fresh capital as the macroeconomic environment remains subdued with the sluggish domestic economy and un predictability over policy measures from the new President of the United States. However, there is a strong activity for the ecosystem led by the quick commerce segment as Zepto, Swiggy and Zomato continue to launch new products generating the energy in the market sentiments.
Week 2 VC Funding Surge Sparks Optimism for Indian Startups
While there is strong optimism, it is also remains wary. Significant transactions in the Indian Startups ecosystem include Infinity Fincorp Solutions which raised $35 million from Jungle Ventures, Archerman Capital and Magnifico. Fintech startup GrayQuest secured Rs 80 crore ($9.3 million approx.) from IIFL Fintech Fund, Claypond Capital and Pravega Ventures.
Tech startup Vehant Technologies raised $9 million from True North. Banana chips brand Beyond Snack raised $8.3 million from 12 Flags Group, Enrission India Capital, NAB Ventures and Faad Network. SaaS startup Mintoak raised Rs 71 crore ($8.2 million approx.) from Z3Partners.
EMO Energy raised $6.2 million from Subhkam Ventures and Transition VC. EV startup Oben Electric raised Rs 50 crore ($5.8 million approx.) from Ambis Holding US, Kuberan Ventures, Karimjee Group, Mission Vertical and family offices. Neuroscience startup BrainSight AI raised $5 million from IAN Alpha Fund, IvyCap Ventures, and Silver Needle.