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The Indian startup ecosystem got the much-needed venture capital (VC) funding boost after Ola Electric raised Rs 3,200 crore in a mix of equity and debt on Thursday.

October continues to remain in the green with a steady rise in capital inflow. The last week of the month saw total venture funding of $456 million across 13 deals, compared to $241 million raised in the previous week.

The highlight of the week was the $240-million debt transaction between Ola Electric and State Bank of India. This marks an important development as one of the leading public sector banks is participating in the Indian startup ecosystem.

Other developments during the week include Mamaearth parent company Honasa Consumer’s plan to tap into the capital market—marking the first Indian startup to launch an IPO this year. And there is significant anticipation about how the market will respond to this IPO.

However, challenges remain deep for the Indian startup ecosystem with no sign of revival in the late-stage funding category. The last time weekly VC funding crossed $500 million was in May this year.

Furthermore, VC investors are reacting to global developments, including the crisis in Israel and rising interest rates in the US, which would have a bearing on venture inflow as capital will move to safer assets like gold and government treasury bills.

Key transactions

Ola Electric raised Rs 3,200 crore ($380 million) in equity and debt funding from Temasek and State Bank of India.

PMI Electro Mobility, the electric bus manufacturer, raised Rs 250 crore ($30 million) from Piramal Alternatives, Piramal Group’s fund management business.

SaaS startup Blubirch raised $6.37 million from Cornerstone Ventures and Capital2B.