The Indian startup ecosystem has had a remarkable week, with startups raising a total of $596 million, marking a 226% surge in funding compared to the previous week. This significant increase highlights the growing investor interest and confidence in Indian startups.
Between November 18-23, 2024, at least 23 startups secured funding, with six growth-stage deals and 15 early-stage deals leading the way. This surge comes after the previous week, when 24 startups raised approximately $182.62 million, including three growth-stage deals and 19 early-stage deals. The funding growth signals the ongoing recovery and strength of the Indian startup sector.
Zepto Leads with $350 Million
Among the top funding rounds this week, Zepto, a quick-commerce platform, raised an impressive $350 million in a funding round led by Motilal Oswal’s private wealth division. This round has added to the total investment of over $1.3 billion in Zepto over the past five months, reflecting the rise of quick-commerce in India. Zepto’s growth mirrors the expanding demand for fast and efficient delivery services in the country.
HealthKart Secures $153 Million
Another major deal was HealthKart, an omnichannel nutrition platform, which raised $153 million in a funding round led by ChrysCapital and Motilal Oswal Alternates. The round also saw participation from Neo Group and A91 Partners, an existing investor. HealthKart also announced its first-ever employee ESOP buyback plan, worth about ₹55 crore (approximately $6.5 million), a move aimed at rewarding its team for their contribution to the company’s success.
Zopper Raises $25 Million
Zopper, a leading insurtech platform in India, secured $25 million in a Series D funding round. The round was co-led by Elevation Capital and Dharana Capital, with participation from Blume Ventures, its existing investor. Zopper is also backed by Creaegis, Bessemer Venture Partners, and ICICI Venture, making this a significant investment round.
Other Noteworthy Deals
Other notable deals this week include Doodhvale Farms, an innovator in the premium dairy sector, which raised $3 million in a round led by Atomic Capital and Singularity Early Opportunities Fund. The funding is expected to help the company expand its operations and enhance its product offerings in the dairy sector.
The Bengaluru-based startups were the leaders in securing funding, with 10 deals taking place in the city. Other major startup hubs included Delhi-NCR, Mumbai, Chennai, Pune, and Hyderabad. The average funding raised by startups over the past eight weeks stands at around $266.77 million across 25 deals per week.
Year-to-Date Funding
As of October 2024, Indian startups have raised nearly $10 billion in funding, already surpassing the total funding raised in 2023, which stood at $10.5 billion. This growth indicates the continued attractiveness of Indian startups to both domestic and international investors.
The significant funding surge seen this week is a positive sign for the Indian startup ecosystem, with startups across various sectors, from quick-commerce to insurtech, attracting substantial investments. With major players like Zepto, HealthKart, and Zopper leading the way, the future of Indian startups looks promising as they continue to drive innovation and growth.
