![You are currently viewing [Weekly funding roundup May 18-24] Steep drop in VC inflow in absence of large deals](https://blog.digitalsevaa.com/wp-content/uploads/2024/04/funding-lead-image-1669386008401-scaled.jpg)
The fourth week of May saw a steep drop in venture capital (VC) funding into Indian startups in the absence of large deals, which was quite uneventful for the ecosystem.
The total funding raised during the week totalled $113 million, across 21 deals. In comparison, the previous week saw an inflow of $536 million, with a large slice of $275 million coming in from Meesho.
The month of May has been quite uneven in terms of fund flow as the previous week saw the highest amount raised by the Indian startup ecosystem for the year till now.
The VC inflow highlights the continued challenge faced by Indian startups in raising capital; this phase is likely to extend for another three months or so. There is still uncertainty among investors about putting large sums of money into Indian startups and they are waiting for certain clarity on the macroeconomic environment before opening the funding tap.
On the other hand, the week also saw some positive developments. Flipkart, the original poster boy of the ecosystem, continues to attract funding and the latest to join the list is Google.
At the same time, listed marquee names including Mamaearth parent Honasa Consumer and Nykaa are showing healthy profit numbers.
More companies have made a beeline towards the bourses. The shares of Go Digit rose by 12% on debut at the stock exchanges while Awfis continues to get strong support from investors in the ongoing IPO bidding process.
Overall, the funding momentum is weak but the future growth prospects look bright for those planning to go public.
Key transactions
Sachin Bansal’s financial services platform Navi Finserv has reportedly raised Rs 150 crore ($18 million approx.) through non-convertible debentures (NCDs).
Fintech startup SAVE Group raised $13 million from Incofin India Progress Fund and Maj Invest.
Tech startup UnifyApps raised $11 million in a seed round led by Elevation Capital, along with angel investors.
Rural-focused financial services firm Dvara Kshetriya Gramin Financials has raised $10 million in debt from global impact investor, BlueOrchard Microfinance Fund.
Edited by Kanishk Singh
