September 56, 2025: The Indian startup ecosystem saw a slight uptick in venture capital (VC) funding during the first week of September, with the total amount raised reaching $166 million across 19 deals. While this marks an increase compared to the previous week’s $122 million, the overall funding remains within the $100 million range, a level that has been consistent over the past month.
Despite the uptick, the overall funding trend reflects a decline in capital inflow over the past four weeks. The drop from the $300 million funding levels seen earlier this year signals the ongoing challenges faced by Indian startups in securing investment. The uncertainty in the global economy, coupled with a more cautious investor sentiment, continues to impact the funding environment.
One interesting Indian Startup deal in early September was the $47 million raised by CityMall, an e-commerce startup. However, the funding was secured at a flat valuation, indicating investor caution amidst market uncertainties. Other deals this week include funding for platforms like Seekho, FirstClub, and Offgrid Energy Labs, reflecting the diverse nature of sectors vying for investment.
In parallel, the Indian government’s move to simplify the Goods and Services Tax (GST) structure has been met with optimism. Analysts expect this change to have a positive impact on the broader economy, especially benefiting sectors like e-commerce that rely heavily on logistics and supply chain efficiency. While the funding environment remains challenging, this regulatory shift is expected to provide a boost, particularly to e-commerce startups.
VC Investment in Indian Startup’s Remains Slow in Sept
- CityMall (e-commerce): Raised $47 million from Accel, Waterbridge Ventures, and others.
- Seekho (OTT platform): Raised $28 million from Bessemer, Lightspeed, and Elevation Capital.
- FirstClub (e-commerce): Raised $23 million from Accel, RTP Global, and others.
- Offgrid Energy Labs (energy storage): Raised $15 million from Archean Chemical Industries.
- StockGro (social investing): Raised Rs 50 crore (~$6 million) from Trifecta Venture Debt.
- PlatinumRx (online pharmacy): Raised $6 million from Stellaris Venture Partners.
While venture funding for Indian startups showed a modest increase in early September, the overall funding trend remains subdued. The impact of broader economic conditions and investor hesitancy continues to shape the funding landscape.
