TICE Funding Index: VC Inflows Dip As Large Deals Dry Up But Fintech Shines

The final week of August brought a mixed bag for India’s startup ecosystem. On one hand, the overall venture capital inflows saw a steep fall, dropping to $122 million across 20 deals, compared to $306 million the week prior. The absence of blockbuster funding rounds weighed heavily on the momentum. On the other hand, the week also highlighted the breadth of India’s entrepreneurial ecosystem—with fintech, housing finance, and lifestyle startups attracting investor attention despite the slowdown.

Interestingly, the highest cheque of the week was written for Vistaar Financial Services, which raised a whopping $164 million, though this was more of a late-stage bet in the financial services space rather than a typical early-stage venture round. Beyond that, the largest “pure startup” funding belonged to TransBnk ($25M) and Kiwi ($24M), both fintech players innovating around transaction banking and credit-on-UPI, respectively.

TICE Funding Index

Over the past three weeks, Indian startups had been seeing a steady revival in funding activity. However, this week’s sharp decline reflects two persistent challenges:

• Global Macroeconomic Headwinds: Investor caution amid uncertain markets continues to impact deal-making.

• Lack of AI-led Activity: With artificial intelligence still being the hottest sector globally, the absence of big-ticket AI investments in India is noticeable.

Still, optimism lingers. Groww secured SEBI’s nod for its IPO, signaling that fintech unicorns are preparing for public markets. At the same time, Elevation Capital unveiled a $400M fund, targeted at IPO-bound startups, which could inject fresh life into late-stage funding.

Top Funding Deals of the Week

Vistaar Financial Services – Empowering MSMEs

• Funding Raised: $164M

• Investors: Motilal Oswal Alternates, ABC Impact, others

• Founded: 2010 | Bengaluru | Founders: Brahmanand Hegde, Ramakrishna Nishtala

Vistaar offers secured borrowing solutions to micro and small businesses—think kirana stores, power loom operators, and small manufacturers. By targeting grassroots entrepreneurs often excluded from formal credit systems, Vistaar is strengthening the backbone of India’s MSME economy.

TransBnk – Building Digital Banking Infrastructure

• Funding Raised: $25M

• Investors: Bessemer Venture Partners, Arkam Ventures, Fundamentum, 8i Ventures, Accion Venture Labs, GMO Venture Partners

• Founded: 2022 | Mumbai | Founders: Vaibhav Tambe, Lavin Kotian, Sachin Gupta, Pulak Jain

TransBnk is creating the transaction banking rails of the future with API-based solutions like escrow, reconciliation, and cashflow automation. Its products are helping banks, lenders, and fintechs streamline money movement.

Kiwi – Credit on UPI

• Funding Raised: $24M

• Investors: Vertex Ventures SE Asia & India, Nexus Venture Partners, Stellaris, Omidyar Network

• Founded: 2022 | Bengaluru | Founders: Siddharth Mehta, Mohit Bedi, Anup Agrawal

Kiwi allows users to link RuPay credit cards to UPI, merging India’s most popular payments channel with the convenience of credit. With EMI features and add-on cards in the pipeline, Kiwi is betting big on the future of digital credit adoption.

Altum Credo Home Finance – Affordable Housing Loans

• Funding Raised: $19.5M

• Investor: British International Investment (BII)

• Founded: 2016 | Pune | Founders: Vikrant Bhagwat, Ganesh Rao, Ashish Tewari

Altum Credo is bridging the homeownership gap for low-income and first-time buyers in urban and semi-urban India, offering loans between ₹4–40 lakh with repayment tenures of up to 20 years.

CredRight – Phygital NBFC for Micro Enterprises

• Funding Raised: $10M

• Investors: Abler Nordic, Michael & Susan Dell Foundation, Unleash Capital

• Founded: 2016 | Hyderabad | Founders: Neeraj Bansal, Vineet Jawa

CredRight blends a physical network with machine-learning-driven credit assessment to provide instant loans to small entrepreneurs—particularly those with little or no formal credit history.

Palmonas – The Rise of Demi-Fine Jewelry

• Funding Raised: $6.6M

• Investor: Vertex Ventures SE Asia & India

• Founded: 2022 | Pune | Founders: Pallavi Mohadikar, Dr. Amol Patwari, joined by Shraddha Kapoor in 2023

Palmonas is tapping into millennial and Gen Z demand for affordable luxury. Positioned between fine jewelry and fashion accessories, its sterling silver and gold-plated collections have quickly gained traction among young consumers.

Enmovil – Smart Logistics Solutions

• Funding Raised: $6M

• Investors: Sorin Investments, Capria Ventures, Twynam

• Headquarters: Hyderabad

Enmovil builds technology-driven logistics platforms, offering fleet optimization and operational efficiency tools for enterprises.

Vutto – Automotive Startup

• Funding Raised: $7M

• Investors: RTP Global, Blume Ventures

Vutto is working at the intersection of technology and automotive solutions, though details on its latest product roadmap remain under wraps.

TICE Takeaway

While the headline numbers show a dip in venture capital inflows, the TICE Funding Index reveals a deeper story: investors are still backing a diverse mix of startups addressing India’s financial inclusion, digital payments, and consumer lifestyle gaps. From MSME credit enablers like Vistaar and CredRight to digital-first fintechs like Kiwi and TransBnk, and aspirational brands like Palmonas, the week underscores how innovation is finding backing even in a cautious funding environment.

The IPO momentum (with Groww leading the way) and fresh funds being set up by VCs could pave the way for stronger weeks ahead.