The third week of June saw a new low for Indian startups as venture capital (VC) funding dipped to the second lowest level on a weekly basis for the year till date, revealing the challenging environment that still prevails for the ecosystem.
The total funding for the week came in at just $56 million across 12 deals. In contrast, the previous week saw a total infusion of $299 million.
This is the fourth time that total VC funding on a weekly basis has dropped below $100 million, as per YourStory data. The lowest point for the year till now was in the month of January where the funding amount was $14 million.
These developments do not augur well for the Indian startup ecosystem as it is already strained with funding on a weekly basis hovering in the range of $100-200 million. This has largely got to do with the volatile external environment which is hampering the flow of capital.
Given the current developments, it is unlikely there would be any change in the fund flow momentum.
On the other hand, the Indian startup ecosystem witnessed developments during the week which were a mix of both good and bad news. In a welcome development, Urban Company reported a profit, while Meesho flipped its headquarters from US to India. Both these startups are getting ready for an IPO.
At the same time, startups in the business of bike taxis are faced with an uncertain future as the Karnataka government has imposed a ban on their service.
Key transactions
CLR Facility Services raised $15 million from British International Investment (BII).
EV startup Oben Electric raised Rs 50 crore ($11.5 million approx.) from Helios Holdings, the Sharda Family Office, and the Kay Family.
Fintech startup Techfino raised Rs 65 crore ($7.4 million approx.) from Stellaris Venture Partners and Saison Capital.
EV company Okinawa Autotec raised Rs 60 crore ($6.9 million approx.) from Dhruv Khush Business Ventures.
Edited by Jyoti Narayan
