Indian startups secure $395m in one week: Report

August 19, 2024 (MLN): Indian startups raised more than $395 million in at least 20 deals this week, a massive 350% jump from $113m secured last week, The Statesman reported.

It noted that hospitality and travel-tech company Oyo led the funding ecosystem raising nearly $175m in a Series G round from investors like InCred Wealth, Patient Capital, J&A Partners, the family office of Mankind Pharma promoters and ASK Financial Holdings, among others.

Neo, a wealth and asset management firm, secured about $48m in Series B round led by MUFG Bank and New York-based Euclidean Capital LLC.

EV firm Ather Energy reportedly secured $71m led by the National Investment and Infrastructure Fund (NIIF), taking its valuation to $1.3 billion and making it a new unicorn.

With this, the company managed to raise over $125m in the last three months, it highlighted.

Fintech startup Innoviti raised $8.5m in a combination of equity and debt, led by Random Walk Solutions, with participation from existing investors Bessemer Venture Partners USA, Patni Family Office India and Alumni Ventures.

According to The Statesman, in the month of July alone, Indian startups raised $1.03bn as the government abolished angel tax in the Union Budget 2024-25 which was levied on foreign investors.

As per reports, Indian startups raised this amount via 126 deals. Out of these, 28 were growth or late-stage deals worth $725m, whereas 72 were in the initial-stage deals worth $311m.

Indian startups raised $1.93bn in funding in June.

Government-recognised startups have generated more than 1.55m direct jobs to date. The Department for Promotion of Industry and Internal Trade (DPIIT) has recognised 140,803 entities as startups (as of June 30).

More than 55 regulatory reforms have been undertaken by the government since 2016 to enhance ease of doing business, ease of raising capital, and reduce compliance burden for the startup ecosystem.

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