The startup landscape has witnessed a promising start in the New Year, with robust Venture Capital (VC) funding maintaining a consistent pace, surpassing the $100-million mark throughout January. A notable highlight is Krutrim’s remarkable ascent as the first unicorn of 2024, securing a valuation exceeding $1 billion.
In the last week of January, VC funding soared to $166 million across 17 deals, reflecting positive momentum compared to the previous week’s $131 million.
While startup funding in India experienced a 62% decline in 2023, dropping to Rs 66,908 crore from Rs 1,80,000 crore in 2022, expectations remain cautiously optimistic for 2024. Investors, having adopted a more circumspect approach post a 50% dip in VC funding during 2023, now prioritize sustainable business models over rapid expansion.
Despite robust capital availability for Indian startups, the challenge lies in valuation. Startups aim to maintain their valuation levels during fundraising, while investors explore opportunities at more prudent values.
Against this backdrop, the Indian startup ecosystem unfolds various developments. Byju’s, a leading edtech company, faced challenges with escalating losses and lender issues. In contrast, Meesho emerged as a formidable player in the Indian ecommerce sector, and Zomato gained RBI approval for online payment services.
Key Transactions:
1. Krutrim AI secures $50 million from Matrix Partners, achieving a coveted $1 billion valuation.
2. Ecofy, an NBFC championing green projects, raises $10.8 million from Dutch Entrepreneurial development bank FMO.
3. VivifinIndia reaches a significant milestone with a substantial $75 million Series B funding, fueling its growth trajectory.
4. InfraMarket fortifies its position in the infrastructure sector with $12 million in debt financing.
Newmeasia makes a robust entry into the market, securing $5 million in pre-Series A funding.
