Funding News: Indian Startups Raise $275.2 Mn This Week Despite a Dip

Indian startups raised $275.2 Mn across 28 deals this week, a 10.7% dip from last week. Ecommerce emerged as the favorite sector, while Indian Angel Network led investments in healthtech startups.

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Startup Funding News Jan 25

E-commerce Shines, Indian Angel Network Leads as Startups Secure $275.2 Mn

Indian Startups Raise $275.2 Mn This Week; Ecommerce and Healthtech Lead the Way

In a week marked by tempered enthusiasm, Indian startups collectively raised $275.2 Mn across 28 deals between January 20 and January 25, according to INC42 data. While this represents a 10.7% decline compared to the $308.1 Mn raised across 24 deals the previous week, the ecosystem showed resilience, driven by notable activity in ecommerceand healthtech.

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One of the standout highlights this week was Infra.Market’s substantial funding round, which propelled the ecommerce sector to the forefront. On the other hand, the Indian Angel Network (IAN) emerged as the most active investor, backing two healthtech startupsSVASTEK and Prantae Solutions—in early-stage seed rounds. This signals a growing investor focus on innovation in healthcare, especially in addressing critical challenges.

Startup Funding: A Comparative Snapshot

According to Entrackr, 30 Indian startups secured $248.87 Mn during the same period, spanning 24 early-stage rounds and five growth-stage rounds, with one transaction remaining undisclosed. This marked a significant drop from the previous week’s $779.92 Mn raised across 37 startups. The decline reflects a more cautious investor sentimentamidst global economic uncertainties, though certain sectors continued to shine.

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Ecommerce and Healthtech Dominate

Ecommerce, with its scalability and market potential, once again proved its mettle. Infra.Market’s mega roundreinforced investor confidence in infrastructure-driven ecommerce models. Similarly, healthtech remained a favored sector, with early-stage deals underscoring a commitment to grassroots innovation. The Indian Angel Network’s investments in SVASTEK and Prantae Solutions reflect a clear trend of supporting startups tackling critical healthcare gaps.

Spotlight on Top Startup Deals (Jan 18–24)

Here are some of the notable funding deals from this week:

  1. Ati Motors ($20 Mn)
    Known for its autonomous robots for warehouses and manufacturing, Bengaluru’s Ati Motors has expanded its presence to the US with new headquarters in Detroit.
    Key Investors: Walden Catalyst Ventures, NGP Capital, True Ventures, Exfinity Venture Partners, Athera Venture Partners, Blume Ventures.

  2. Deconstruct ($7.7 Mn)
    A Bengaluru-based skincare startup, Deconstruct offers science-backed products tailored for India’s climate, including mattifying sunscreens.
    Key Investors: L'Oréal's VC fund BOLD, V3 Ventures, DSG Consumer Partners, Kalaari Capital, Beenext.

  3. VuNet Systems ($6.94 Mn)
    Bengaluru’s VuNet Systems enhances IT infrastructure and customer experience for financial institutions using advanced observability tools.
    Key Investors: Pravega Ventures, Kotak Securities, Mela Ventures, Athera Venture Partners, Dallas Venture Capital, TVS Capital Funds.

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  1. Medusa Beverages ($6.75 Mn)
    Delhi-based Medusa Beverages specializes in bold lager beers and has built a strong foothold across North India.
    Key Investors: Amal N Parikh, Ashwin Kedia, Ramesh Damani, Nikhil Garg, Crest Opportunities.

  2. Snabbit ($5.5 Mn)
    Launched in 2024, Snabbit is a Mumbai-based platform providing on-demand home services like cleaning and laundry, all within 15 minutes.
    Key Investors: Elevation Capital, Nexus Venture Partners, Vidit Aatrey, Sanjeev Barnwal, Gaurav Munjal, Niraj Singh.

  3. KisanKonnect ($4.5 Mn)
    Mumbai-based KisanKonnect connects over 500 farmers directly with consumers, offering fresh produce and premium dairy products.
    Key Investors: Mistry Ventures, Times Group's Brand Capital, Shilpa Shetty, VC-Grid, Vishwang Desai.

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Resilient Ecosystem Amid Caution

While funding volumes dipped, the diversity in deal stages and sectors underscores the Indian startup ecosystem’s adaptability. Ecommerce continues to dominate due to its scalability, while early-stage investments in healthtech hint at a promising wave of innovation.

As market conditions stabilize, the coming weeks could see balanced activity across sectors. The resilience of Indian startups remains evident, with investors cautiously optimistic about long-term growth and innovation.

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