The month of September began on a modest note for the Indian startup ecosystem, with venture capital funding recording a marginal increase as the total amount raised during the week hovered around the $100 million range.
The total VC funding for the first week of September came in at $166 million across 19 deals. In comparison, the previous week saw a total amount of $122 million. This looks like an increase in funding, but this is not significant as the total amount still comes around the $100 million range.
Over the last four weeks, there has been a steady decline in weekly funding as the number has dropped from the level of $300 million. This actually reveals the challenge Indian startups continue to face in terms of raising funding. For example, this week the ecommerce startup CityMall raised $47 million, but it was at a flat valuation.
Given the uncertain macroeconomic environment, it is likely that the current trend will continue for some time.
On the other hand, the big development around the simplification of the GST structure has been welcomed by all, and this is expected to give a big boost to the economy. And even the startups stand to gain, especially for the ecommerce segment.
Key transactions
Ecommerce startup CityMall raised $47 million from Accel, Waterbridge Ventures, Citius, General Catalyst, Elevation Capital and Norwest Venture Partners.
OTT platform Seekho raised $28 million from Bessemer Venture Partners, Goodwater Capital, Lightspeed Venture Partners and Elevation Capital.
Ecommerce startup FirstClub raised $23 million from Accel, RTP Global, Blume Founders Fund, 2am VC, Paramark Ventures, and Aditya Birla Ventures.
Offgrid Energy Labs, an energy storage solutions startup, raised $15 million from Archean Chemical Industries and Ankur Capital.
Social investing startup StockGro raised Rs 50 crore ($6 million approx.) from Trifecta Venture Debt.
Online pharmacy startup PlatinumRx raised $6 million led by Stellaris Venture Partners.
Edited by Jyoti Narayan
