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Indian startups raised $176.5 Mn across 22 deals between August 31 and September 4, down 16% from the $210.3 Mn raised by 23 startups in the previous week

Healthtech and cleantech led the week, raising a combined $120.8 Mn across nine deals and accounting for nearly 75% of the total funding

Healthtech and cleantech led the week, raising a combined $120.8 Mn across nine deals and accounting for nearly 75% of the total funding

India’s startup funding market opened September on a softer note, extending its decline for a second straight week. Between August 31 and September 4, 22 startups raised a combined $176.5 Mn, down 16% from the $210.3 Mn raised across 23 deals in the previous week.

Healthtech and cleantech accounted for most of the week’s funding, raising a combined $120.8 Mn across nine deals. Together, they captured nearly 68% of the total raised by Indian startups during the week.

Funding Galore: Indian Startup Funding Of The Week (Aug 31– Sep 4 )

Key Startup Funding Highlights Of The Week

• Healthtech was the most funded sector this week, with four startups raising a combined $74.5 Mn. The strong week for the sector was largely a one-startup story. Ultrahuman’s $70 Mn round made up 94% of the sector’s total funding.
• Cleantech trailed healthtech with five startups raising $46.3 Mn this week. Yuma Energy’s $35 Mn fundraise provided the biggest boost, accounting for a substantial chunk of the sector’s haul.
• Beyond the top two sectors, advanced hardware and technology and ecommerce segments saw four funding deals materialise apiece.
• Early-stage funding remained active, with six startups collectively raising around $12 Mn across seed, pre-seed and pre-Series A rounds. The week also saw three startups raise undisclosed amounts in equity.
• On the investor front, Equentis and Info Edge Ventures were the week’s most active backers, participating in two startup deals each.

Startup M&As This Week

• upGrad completed the acquisition of Unacademy for just over $200 Mn, marking a more than 90% drop from its $3.5 Bn peak valuation in 2021.
• Adobe acquired Peak XV Partners’ backed startup Rilobacked by Peak XV Partners, for an undisclosed amount. It is Adobe’s second Indian startup acquisition after Rephrase.ai in 2023.
• Niyo agreed to acquire Capital India Finance’s RemitX business for ₹11.4 Cr, expanding its forex and cross-border payments play.
• Truemeds is said to be eyeing the buy out of ecommerce unicorn DealShare via a share-swap deal that could value it at over $90 Mn, far below its $1.7 Bn peak valuation.

Startup IPO Developments This Week

• After an overwhelming investor response to its IPOAI cloud provider ESDS Software Solution made a strong public market debut, listing at an over 75% premium on the bourses. The stock closed at ₹908.4, gaining 111.7% on its first trading day.
• After ESDS, Yotta Data Services is also planning to go public. The company is likely to file its draft papers with SEBI by October, eyeing the raise of up to $1.5 Bn via its IPO.
• Pernia’s Pop-Up Shop’s parent Purple Labs ₹680 Cr IPO was oversubscribed by 1.29X on the final day, with retail investors leading demand at 1.57X. The shares are set to list on Monday (September 7).

Other Developments Of The Week

• Fintech unicorn-turned-SFB slice is reportedly raising around $100 Mn at a $450 Mn-$465 Mn valuation, down sharply from its previous $1.25 Bn valuation. The round could see participation from Neo Group, Kado Global and Moore Strategic Ventures.
• Jagdish Farshan has raised ₹43.5 Cr ($4.6 Mn) in its first institutional round, led by Sharrp Ventures and angel investors, as the 88-year-old brand looks to expand through quick commerce.