TICE Funding Index: Indian Startups Witness a Dip in VC Funding!

As the Indian startup ecosystem gears up to bid farewell to 2024, the final weeks of the year have brought mixed signals. While the overall narrative hints at recovery from the funding winter, this week’s venture capital (VC) inflow figures have taken a sharp dip. What does this mean for India’s dynamic startup space? Let’s unpack the week that was in TICE fuding index.

A Slow Week in Numbers: What’s Behind the Decline?

This past week, Indian startups collectively raised $135 million across 19 deals—a stark contrast to the $779 million garnered just a week prior. Industry insiders attribute this plunge to the absence of significant large-value deals and the seasonal slowdown typical as the year nears its end.

While the subdued numbers might seem disheartening, they are a blip in an otherwise upward trajectory. 2024 is poised to outpace 2023 in terms of total funds raised, signaling resilience and adaptability within the ecosystem.

Startup Funding Snapshot (Dec 14-20)

IPO Buzz: MobiKwik’s Stellar Listing Marks a Milestone

Adding a silver lining to the week’s quieter funding activity was the much-anticipated IPO of fintech giant MobiKwik. Its strong market debut highlights a renewed appetite for public offerings within the Indian startup landscape. As investors and founders alike turn their gaze toward 2025, MobiKwik’s success may set the tone for more Indian startups to go public next year.

Funding Highlights: Big Moves and Bold Investments

Despite the overall slowdown, several deals stood out this week, showcasing the diversity and innovation in India’s startup ecosystem. Let’s take a closer look at the key transactions:

Perplexity Raises $500M in Series D, Valued at $9B

AI-powered search engine Perplexity has secured $500 million in its fourth funding round, bringing its valuation to an impressive $9 billion. This funding, led by Institutional Venture Partners (IVP), marks a significant leap from its $1 billion valuation in April and $3 billion in June following a strategic investment from SoftBank Group Vision Fund 2. The startup also recently acquired Carbon, a data connectivity company, to enhance its AI capabilities and streamline integration into user workflows.

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Databricks Raises $10B, Hits $62B Valuation

Data analytics giant Databricks has raised a staggering $10 billion in Series J funding, propelling its valuation to $62 billion. This round was led by Thrive Capital, with support from Andreessen Horowitz, GIC, Insight Partners, and others. The funds will be directed toward enhancing Databricks’ AI product suite, international expansion, and strategic acquisitions. As one of the largest venture funding rounds, this will support the company’s mission to democratize data and AI.

Bizom Secures $12M in Series B

SaaS platform Bizom has raised $12 million in a Series B funding round led by Pavestone, with additional support from existing investor IndiaMART. The retail-focused startup helps brands optimize sales, distribution, and relationships with retailers. With over 600 retail brands on its platform, Bizom will use the capital for product development and infrastructure expansion. The company is focused on digitalizing B2B retail operations.

bp Ventures Invests $9M in Zingbus

bp Ventures has invested $9 million in Zingbus, an electric intercity bus platform. Zingbus, founded in 2019, offers digital infrastructure for bus operators, including pricing, fleet management, and route optimization. This Series A funding will help the company scale its operations, with a focus on transitioning to electric buses, aligned with India’s goal to have a 100% electric bus fleet by 2030. Zingbus has also formed a strategic partnership with Jio-bp pulse to utilize its EV charging network.

Read More: India's EV Revolution: From Niche to Mainstream, What Lies Ahead?

Warmup Ventures Launches Rs 300 Crore Fund

Warmup Ventures has announced the launch of its second fund, Warmup Fund II, with a corpus of Rs 300 crore. The fund will focus on early-stage investments, committing Rs 5-7 crore each to 25-30 startups across various sectors, with provisions for follow-on rounds. With a strong track record of backing over 100 startups, Warmup Ventures plans to support entrepreneurs through funding and mentorship, with a focus on scaling businesses and connecting them with a broader network of industry leaders.

SanchiConnect & YourNest Invest Rs 48 Crore in Deeptech Startups

SanchiConnect has partnered with YourNest Venture Capital to invest Rs 48 crore in eight deep-tech startups under its Velocity Accelerator Programme. This cohort, selected from over 1,200 applications, includes companies innovating in sectors like AI, manufacturing, agriculture, and healthcare. The startups will benefit from funding, expert mentorship, and access to go-to-market strategies. The initiative aims to accelerate the commercialization of cutting-edge technologies and unlock the potential of India’s deep-tech ecosystem.

Veefin Raises Rs 136 Crore, Eyes Rs 155 Crore More

Veefin Grou has raised Rs 136 crore in its latest funding round. The company plans to raise an additional Rs 155 crore by January 2025 to support its global expansion and acquisitions. Veefin recently acquired EpikIndifi, a banking-focused software solutions provider, and Regime Tax Solutions, a GST compliance platform. The new funds will fuel further acquisitions and the development of its financial products, which cater to a range of banking and fintech clients.

Zetwerk Secures $70M from Khosla Ventures and Rakesh Gangwal

Zetwerk has raised $70 million from Khosla Ventures and industrialist Rakesh Gangwal. Zetwerk’s platform connects manufacturers with buyers, streamlining the supply chain process. The fresh capital will support its expansion efforts and enhance its platform’s capabilities to serve global markets, particularly in sectors like aerospace, energy, and consumer goods.

Read More: Is Zomato Bigger Than Tata Now? A Milestone for Indian Startups

Emerging Trends: What Lies Ahead for 2025?

As 2024 winds down, all eyes are on emerging sectors. Startups rooted in artificial intelligence, generative AI, and sustainability are likely to dominate funding conversations. With IPO successes like MobiKwik setting the stage and investor interest in deep-tech and SaaS companies growing, the ecosystem is primed for exciting times ahead.

Moreover, funds like Warmup Ventures, which launched a Rs 300 crore corpus this week, reflect a sustained focus on nurturing early-stage startups. From AI-powered solutions to climate-tech innovations, the Indian startup ecosystem is gearing up for another transformative year.

A Year-End Reflection

Despite this week’s dip, the Indian startup ecosystem’s resilience shines through. The year’s narrative has shifted from caution to cautious optimism, laying a solid foundation for what promises to be an eventful 2025.

As we step into the new year, the focus will likely remain on innovation, public offerings, and international expansion. With lessons learned from 2024’s highs and lows, the Indian startup story continues to evolve—boldly and resiliently.

Stay tuned for more updates as the funding trends unfold!