Indian startup funding sees over 300% surge with $449 million raised this week

The Indian startup ecosystem has experienced a remarkable rebound in funding this week, with 39 startups collectively raising approximately $449 million across 29 deals. This represents an over 300 per cent increase from the $135 million raised in the previous week.

The funding landscape this week included 12 growth-stage deals and 16 early-stage investments, with seed funding totaling $26.5 million—a significant 48.8 per cent rise from last week’s $17.8 million. This surge indicates a renewed momentum in investment activity within the startup sector.

Notable among the funding successes is edtech startup Eruditus, which secured $150 million in a round led by TPG’s The Rise Fund. The funding round also saw participation from prominent investors such as Softbank Vision Fund 2, Leeds Illuminate, Accel, CPP Investments, and the Chan Zuckerberg Initiative. “With this investment, we're excited to continue to grow and innovate to meet market demand,” said Ashwin Damera, CEO of Eruditus and its parent company, Emeritus.

Omnichannel beauty platform Purplle announced an extension of its latest funding round, raising an additional Rs 500 crore, bringing the total to Rs 1,500 crore (around $180 million). This round was led by the Abu Dhabi Investment Authority (ADIA) and included contributions from existing investors like Premji Invest and Blume Ventures.

Additionally, GIVA Jewellery successfully closed its extended Series B funding round, securing Rs 255 crore from high-profile investors at an increased valuation. This round was spearheaded by Premji Invest, EPIQ Capital, and Edelweiss Discover Fund, along with the top management of GIVA.

In the software-as-a-service (SaaS) space, a startup raised $30 million in a funding round led by Eight Roads Ventures, with participation from Elevation Capital and 3one4 Capital.

The fintech sector in India also showed robust growth, securing $778 million in funding during the July-September period, positioning India as the second-largest market globally for fintech funding in the third quarter, following the US. This marks a 66 per cent increase from the $471 million raised in Q3 last year and an impressive 165 per cent surge compared to the $293 million raised in Q2 2023, according to a report by Tracxn, a SaaS-based market intelligence platform.

(With agency inputs.)