The momentum of startup funding in India has seen a sharp decline as the year comes to a close. In the week ending December 27, only 11 startups managed to raise a total of $95.54 million, marking a significant 74% drop compared to the previous week’s $363.9 million raised by 31 startups. This downturn reflects a growing caution among investors, although some growth-stage and early-stage companies continue to secure capital.
Despite the overall dip, growth-stage deals dominated, with $73 million raised. CoreEL Technologies led the way, securing $30 million in a Series B round, highlighting investor interest in deeptech and electronics manufacturing. Dugar Finance followed with $18 million in debt funding, and PlasmaGen Biosciences raised ₹150 crore, showcasing confidence in the biotech sector. Quick service restaurant chain Wow! Momo also attracted ₹75 crore, underscoring belief in scalable food brands.
Early-stage funding was selective, with $22.5 million raised across five deals. PowerUp Money led this segment with a $12 million Series A round, pointing to ongoing interest in fintech. Other early-stage fundraises included Prosperr.io, Naxatra Labs, LokSuvidha Finance, and Entuple E-Mobility.
Bengaluru remained the leading city for startup funding, with fintech startups topping the sectoral charts. Seed rounds were the most active, followed by Series A and Series D. Additionally, the week saw significant developments beyond funding, including fund launches, mergers and acquisitions, and corporate moves. Anicut Capital closed a fund at ₹1,275 crore, while Nikhil Kamath and Kishore Biyani launched a startup launchpad.
The week also witnessed layoffs, with Yellow.ai reducing its workforce by 30%, and an ESOP buyback by Dhan benefiting 180 employees. Despite the current slowdown, the eight-week average funding remains robust, suggesting that investors are now more discerning, focusing on startups with strong fundamentals and clear paths to profitability as 2025 approaches.
