TLDR:
- The month of January has seen a steady inflow of venture capital funding into Indian startups, with around $100 million invested each week.
- Krutrim has emerged as the first unicorn of 2024, with a valuation of $1 billion.
- The total venture capital funding for the last week of January was $166 million, an increase from the previous week’s $131 million.
- VC funding dropped by over 50% in 2023 compared to 2022, but there is cautious optimism for 2024.
- Startups are facing challenges in raising funds due to valuation concerns.
The month of January has seen a steady influx of venture capital funding into Indian startups, with investments hovering around the $100 million mark each week. This is not surprising given the overall subdued environment. The big news for this week is the emergence of Krutrim as the first unicorn of 2024, with a valuation of $1 billion. In total, $166 million was invested across 17 deals in the last week of January, up from the previous week’s $131 million.
The year 2023 saw a significant drop in VC funding compared to 2022, with a decrease of more than 50%. As a result, investors and startups are approaching funding with cautious optimism in 2024. Startups are focused on building sustainable businesses, while investors are looking for opportunities at lowered valuations. The main challenge is finding a balance between startup valuations and investors’ desired lower valuation.
This week, Byju’s, an edtech company, drew attention as it published its financial numbers for the fiscal year 2021-22, revealing significant losses and ongoing challenges with lenders. On the other hand, Meesho has emerged as a strong contender in the Indian ecommerce market, according to a report. Zomato has also received approval from the RBI to start online payment services.
Key transactions in the last week of January include:
- Ola Founder Bhavish Aggarwal’s startup Krutrim raised $50 million at a valuation of $1 billion from Matrix Partners and others.
- Ecofy, an NBFC focused on supporting green projects, raised $10.8 million from FMO, a Dutch Entrepreneurial development bank.
Overall, the outlook for venture capital funding in Indian startups remains a mix of good and bad news. While there is no shortage of capital available, startups must navigate the challenges of valuation to secure funding.
