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The third week of September saw a sharp rise in venture capital (VC) funding into Indian startups, boosted by PhysicsWallah’s big-ticket transaction. This is the second-highest amount that the ecosystem has raised on a weekly basis.

The total VC funding for the week amounted to $541 million, cutting across 32 deals. In contrast, the previous week saw the ecosystem cash in $242 million.

It was only the third time this year that the weekly fundraise exceeded $500 million. Previously, the startup ecosystem raised $872 million in a week in June and $536 million in May.

The rise in VC funding augurs well for Indian startups as funding came across segments such as edtech, fintech, cleantech, mobility, and even a defence tech startup.

The hope is that this trend will continue right through the year and 2024 will have a stronger finish after a weak start. Industry observers say there are sizeable deals in the works and such announcements are likely soon.

In addition, the decision of the US Federal Reserve to slash the interest rates by 0.5% has also given hope that there would be an increased inflow of capital. However, it is too early to say whether it would translate into capital inflow or there would be a delay.

Key transactions

Edtech unicorn PhysicsWallah (PW) raised $210 million from Hornbill Capital and  Lightspeed Venture Partners.

Insurtech startup Onsurity raised $45 million from Creaegis, International Finance Corporation, Quona Capital, and Nexus Venture Partners.

Healthtech startup Redcliffe Labs raised $42 million from IFU, LeapFrog Investments, HealthQuad, and Spark Growth Ventures.

Fleet management company Everest Fleet raised Rs 251.7 crore ($30 million) from Uber.

Defence sector startup Big Bang Boom has secured Rs 250 crore ($30 million approx.) from Mumbai Angels Network, Vyom Family Office, SBI, Asquare Investing, and others,

Fintech startup Aye Finance raised Rs 250 crore ($30 million approx.) from ABC Impact.

Hyperlocal news platform Way2News raised $14 million from WestBridge Capital and Sashi Reddi.

Fintech startup kaleidofin raised $13.8 million from Rabo Partnerships B.V., Michael & Susan Dell Foundation, Oikocredit, Omidyar Network India, and Flourish.

Tech startup Vahan.ai raised $10 million from Khosla Ventures, Y Combinator, Gaingels, and Paytm Founder Vijay Shekhar Sharma.

Consumer tech startup DailyObjects raised $10 million from 360 One Asset and Root Ventures.

Healthtech startup The Wellness Co raised Rs 60 crore ($7.1 million) from online travel aggregator EaseMyTrip.

Villa and apartment management startup Elivaas raised $5 million from 3one4 Capital, Peak XV’s Surge, and other angel investors.