The third week of August 2024 marked a slowdown in the Indian startup funding landscape, with startups raising $265.2 million across 16 deals, a 33% decline from the previous week’s $395.63 million across 20 deals. Despite the downturn, key sectors like e-commerce and fintech continued to secure significant investments.

At Excluto, we are a wealth tech platform connecting VCs and LPs, and we remain committed to offering insights into these evolving trends.

Key Highlights:

  • Total Funding: $265.2 million raised via 16 deals, a 33% decline from the preceding week.
  • Largest Deal: Bluestone secured $107.2 million in its pre-IPO round.
  • Sectoral Leader: E-commerce led the funding with $148.7 million raised across 4 deals.
  • Seed Funding Decline: Only $1 million was raised in seed funding, an 88% drop from the previous week.
  • Most Active Investors: JM Financial Private Equity, Inflection Point Ventures, and Venture Catalysts, each backing two startups.

Notable Startup Funding:

Bluestone (E-commerce)

  • Funding Raised: $107.2 million (Pre-IPO)
  • Lead Investors: Peak XV Partners, Prosus, Steadview Capital, Think Investments, Pratithi Investments
  • Usage of Funds: Expansion and scaling up ahead of IPO

    Livpure (Watertech)
  • Funding Raised: $28 million (Series C)
  • Lead Investors: Unnamed
  • Usage of Funds: Product innovation and market expansion

    Hangyo Ice Cream (D2C)
  • Funding Raised: $25 million (Growth Stage)
  • Lead Investors: Unnamed
  • Usage of Funds: Geographical expansion and brand development

    Axio (Fintech)
  • Funding Raised: $20 million (Series A)
  • Lead Investors: Amazon Smbhav Venture Fund
  • Usage of Funds: Enhancing lending platform and customer acquisition

    FlexiLoans (Fintech)
  • Funding Raised: $9 million (Growth Stage)
  • Lead Investors: JM Financials
  • Usage of Funds: Scaling operations and technology enhancement

    Uppercase (D2C Luggage)
  • Funding Raised: $9 million (Growth Stage)
  • Lead Investors: Accel, Sixth Sense Ventures, Akash Bhansali
  • Usage of Funds: Product development and market penetration

    LLUMO AI (AI Optimization)
  • Funding Raised: $1 million (Seed)
  • Lead Investors: SenseAI Ventures, India Quotient, AumVC, Venture Catalyst, IIM Indore Alumni Angel Fund
  • Usage of Funds: Technological advancements and outreach

Conclusion

While the Indian startup ecosystem experienced a slowdown this week, the diversity in sectoral investments and the notable pre-IPO round by Bluestone demonstrate that key areas continue to attract substantial funding. With the largest deal of the week boosting the e-commerce sector and continued interest in fintech and D2C brands, investors remain cautiously optimistic. Platforms like Excluto provide essential tools and insights for those looking to navigate and capitalize on these opportunities in the venture capital landscape.

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