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The fourth week of November saw venture capital inflow recovering a little from the double-digit drop during the last week, aided by certain reasonably sized deals.

The week witnessed the Indian startup ecosystem receiving total venture funding of $120 million, cutting across 21 deals. In comparison, the third week of the month saw a VC inflow of just $34 million.

The major reason behind the number crossing $100 million was the transactions of Clove Dental and Scapia.

These developments also reveal the challenges being faced by the startup ecosystem not just in India but also across the globe in terms of raising capital. There are transactions happening across the segment but there is an absence of large deals which continues to have a bearing on the overall fund flow.

The situation is unlikely to change anytime soon even though October had raised some hope as VC funding during the month had crossed $1 billion, however, November has not followed that trend.

The Indian startup ecosystem continues to have positive and negative developments. Honasa Consumer, the parent company of Mamaearth saw its shares rising sharply after it doubled its net profit.

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This reveals the highs and lows of startups getting onto the public markets.

Key transactions

Global Dental Services, which operates the oral care chain Clove Dental, raised $50 million from Qatar Investment Authority (QIA), the sovereign wealth fund of Qatar.

Scapia, a fintech firm, raised $23 million in a Series A funding round led by Elevation Capital and 3STATE Ventures.

Purple Style Labs (PSL), the parent company of Pernia’s Pop-Up Shop, raised $8 million in a Series D funding round led by Sanket Parekh of the Pidilite Family Office.

Fintech startup Kiwi raised $13 million from Omidyar Network India, Nexus Venture Partners, and Stellaris Venture Partners.

EV startup Baaz Bikes raised $8 million from BIG Capital, Rakuten Capital, Kalaari Capital, 9Unicorns, and Sumant Sinha.