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The Indian startup ecosystem saw a sharp rise in venture funding this week, boosted by a couple of deals that were over $35 million. However, if one compares the weekly numbers, the overall inflow still remains well below $200 million.

The third week of December saw total funding of $182 million, cutting across 28 deals, while the previous week saw a total of $101 million being raised.

The week saw a mix of startups from segments such as fintech, aviation, and D2C raising capital, which led the funding rounds with reasonably sized deals.

Given that many businesses slow down operations towards the end of the year, the impact is also felt on venture funding. However, it is very unlikely that there will be any quick turnaround in the quantum of money coming into the startup ecosystem.

The expectation is that the situation would turn for the better once investors get a little more clarity on how the global economy is likely to move forward.

Key transactions

Bumble Bee Flights, an aviation startup, raised Rs 300 crore ($37 million) from UK-based SRAM & MRAM Technologies and Resources Limited.

Bengaluru-based fashion tech startup Virgio has raised $37 million in a Series A funding round led by Prosus Ventures, Accel, and Alpha Wave.

Fintech startup NeoGrowth raised Rs 160 crore ($36.2 million) from FMO, the Dutch entrepreneurial development bank, and existing investors.

Fintech startup Zype raised Rs 146 crore from private equity fund Xponentia Capital.

Self-care brand 82°E raised $7.5 million from DSG Consumer Partners and IDEO Ventures.

Agritech startup Grow Indigo raised over $6 million from Mahyco, Indigo AG, and HNIs.