New Delhi – Indian startups have made headlines this week by securing over $395 million across at least 20 deals, marking a significant 350% increase from the $113 million raised in 22 deals the previous week.
Leading the funding surge is hospitality and travel-tech giant Oyo, which raised approximately Rs 1,457 crore (nearly $175 million) in its Series G funding round. This round saw participation from notable investors including InCred Wealth, Patient Capital, J&A Partners, the family office of Mankind Pharma promoters, and ASK Financial Holdings.
In another major deal, wealth and asset management firm Neo secured Rs 400 crore (around $48 million) in its Series B funding round, with investments from MUFG Bank and New York-based Euclidean Capital LLC.
Electric vehicle manufacturer Ather Energy also made significant strides, raising $71 million led by the National Investment and Infrastructure Fund (NIIF). This funding has boosted the company's valuation to $1.3 billion, earning it unicorn status. Ather Energy has now raised over $125 million in the past three months.
Fintech startup Innoviti closed a deal worth Rs 70 crore ($8.5 million) through a mix of equity and debt financing. This round was led by Random Walk Solutions, with contributions from existing investors Bessemer Venture Partners USA, Patni Family Office India, and Alumni Ventures.
In July, Indian startups collectively raised $1.03 billion, buoyed by the government's decision to abolish the angel tax in the Union Budget 2024-25. This tax was previously imposed on foreign investors. The total funding for July was achieved through 126 deals, including 28 growth or late-stage deals amounting to $725 million and 72 early-stage deals worth $311 million.
For context, Indian startups had raised $1.93 billion in June.
Government-recognized startups have now created over 15.5 lakh direct jobs. As of June 30, the Department for Promotion of Industry and Internal Trade (DPIIT) has recognized 1,40,803 entities as startups. The government has implemented more than 55 regulatory reforms since 2016 to improve the ease of doing business, facilitate capital raising, and reduce compliance burdens for the startup ecosystem.
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