TICE Funding Index: Deal Activity Shrinks as Indian Startup Funding Slips Below $100M

The first week of March has begun on a subdued note for India’s startup ecosystem. After weeks of fluctuating momentum, venture capital inflows have dropped sharply, signalling that investors are continuing to tread carefully amid global economic uncertainties.

According to the latest weekly funding data, Indian startups collectively raised around $90 million across nine deals between February 28 and March 6. The figure represents a steep fall when compared with the previous week’s $184 million raised through 32 transactions, highlighting a significant slowdown not just in capital inflow but also in deal activity.

This marks the second-lowest weekly funding amount recorded by Indian startups so far this year, with the only lower week being the first week of January when startups secured $77 million. The latest numbers indicate that investor caution remains firmly in place, especially as global macroeconomic conditions continue to influence venture capital decision-making.

TICE Funding Index

The sharp decline in both funding value and deal volume suggests that investors are still largely staying on the sidelines. The slowdown is particularly visible in early-stage funding activity.

During the week, only three pre-Series A deals were recorded, with the combined funding amounting to just about $1 million. Early-stage investments are often considered a strong indicator of investor confidence in future innovation pipelines, and the muted activity suggests that venture firms are taking a more selective approach to backing new startups.

Industry observers believe that the cautious sentiment is being driven by a combination of global and technological factors.

One of the biggest concerns remains the uncertain macroeconomic environment, with ongoing geopolitical tensions in the Middle East casting a shadow over global financial markets. Such uncertainties often lead investors to slow down capital deployment, reassessing risk exposure across portfolios.

At the same time, the rapid rise of artificial intelligence (AI) is also influencing investor behaviour. As AI continues to reshape industries, venture firms are increasingly evaluating which startups can truly benefit from the technology shift, leading to more deliberate and selective investment decisions.

A Challenging Outlook for the Months Ahead

Given the current trends, the near-term outlook for venture funding in India remains cautious. Investors appear to be adopting a wait-and-watch approach as they assess market stability and emerging technology shifts.

As things stand today, a strong revival in venture capital inflows may not occur immediately. Market observers believe that a meaningful recovery in startup funding activity could take shape only in the second half of the year, once global economic signals become clearer and investor confidence strengthens.

Key Startup Funding Deals of the Week

Despite the slowdown, several startups managed to secure funding during the week across sectors such as commerce, services, mobility, and consumer brands.

Rozana, a rural-focused commerce platform, raised Rs 290 crore (approximately $32 million) in a funding round led by Bertelsmann India Investments (BII). The round also saw participation from Fireside Ventures, Spark Growth Ventures, Bikaji Family Office, FE Securities, and multiple family offices. The funding highlights growing investor interest in startups building solutions for India’s rural and semi-urban markets.

Home-services platform Pronto secured $25 million in fresh funding. The round was led by Epiq Capital, with participation from Glade Brook Capital, General Catalyst, and Bain Capital Ventures. The investment signals continued investor confidence in digital platforms addressing home service and convenience solutions.

In the technology space, Inamo, a tech startup, raised $8 million from Prime Venture Partners, Shastra VC, Antler India, and Gemba Capital. The funding is expected to support the company’s growth and product development.

Meanwhile, RAS Luxury Skincare, a premium skincare brand, raised $7.5 million in funding from Dabur Ventures, Unilever Ventures, Amazon Smbhav Venture Fund, and Sixth Sense Ventures. The investment underscores continued investor interest in India’s rapidly expanding beauty and personal care market.

Electric mobility startup Bounce also secured $5 million in funding from its existing investors, continuing to strengthen its position in India’s evolving EV ecosystem.

A Pause, Not a Halt

While the weekly numbers reflect a slowdown, they do not necessarily signal a long-term decline in India’s startup momentum. Instead, the current phase appears to be a period of recalibration, where investors are carefully evaluating opportunities in a rapidly evolving technological and economic environment.

As sectors such as AI, mobility, consumer brands, and rural commerce continue to evolve, investors are likely to focus more on startups demonstrating strong fundamentals, sustainable growth, and clear market demand.

For now, however, the first week of March serves as a reminder that venture capital activity remains sensitive to global signals—and that India’s startup ecosystem, like the rest of the world, is navigating a phase of cautious optimism.