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The first week of June started on a positive note for the Indian startup ecosystem, with the weekly venture capital (VC) funding crossing $300 million for only the third time this year.

Startups raised a total of $355 million in VC funding, cutting across 13 deals. In contrast, the previous week saw a total infusion of $197 million. This steep rise in VC funding is largely due to the $200 million transaction in omnichannel eyewear retailer, Lenskart.

This rise in VC funding comes after a very good month of May where the Indian startup ecosystem raised more than $1 billion for the first time this year. This momentum is expected to continue for the remainder of the year even as the ecosystem continues to face certain headwinds.

There is still a sense of uncertainty among the investors on whether to bring out the large cheques which actually make the difference to the capital raised by the startups.

Now, with the NDA government elected for the third time in the centre with the BJP unable to secure a clear majority, there is uncertainty on what would be the government’s policies regarding startups.

At the same time, the Indian startup ecosystem continues to receive both positive and negative news. The woes of edtech company BYJU’S seem to be never-ending with HSBC assigning Prosus’ investment value in the company to zero. On the other hand, Swiggy saw a rise in valuation.

The stock markets continue to enthuse companies from the Indian startup ecosystem and the latest to soon join the group is ixigo with its IPO.

The future looks promising but the ecosystem is not there yet for unbridled optimism.

Key transactions

Eyewear retailer Lenskart raised $200 million in secondary investment from Temasek and Fidelity Management and Research Company.

Consumer lending platform Fibe raised $90 million from TR Capital, Trifecta Capital, Amara Partners, TPG Rise Fund, Norwest Venture Partners, and Eight Roads Venture.

EV startup Ather Energy raised Rs 286 crore ($34.5 million) from Stride Ventures and co-founders, Tarun Mehta and Swapnil Jain.

Astrology platform AstroTalk raised Rs 110 crore ($14 million) from Elev8 Venture Partners and Left Lane Capital.

Tech startup Testsigma raised $8.2 million from MassMutual Ventures, Accel, STRIVE, and BoldCap.