[Weekly funding roundup Nov 23-29] Venture capital inflow drops dramatically

Venture capital (VC) funding into Indian startups crashed in the last week of November as the total capital raised was well below $100 million in the absence of large deals.

This is also the sixth time this year that weekly VC funding has dropped below the $100 million mark.

The total VC funding raised during the week totalled $77 million, cutting across 20 deals. In contrast, the previous week saw a total amount of $575 million, boosted by Zepto's $350-million pickup.

This steep decline in VC funding was very unexpected and the week did not witness even a single deal valued above $50 million. This signifies the uncertain nature of funding into startups and also shows that there are still challenges concerning capital inflow.

The overall sentiment, though plagued by the uncertainty in fund flow, is still upbeat given that a large number of VC firms have gone on to raise fresh capital. During the week, Stellaris Venture Partners announced the closure of its third fund at $300 million and Kenro Capital announced that it would be raising a fund focused on secondary transactions.

This shows that capital is available in the startup ecosystem but investors will remain judicious in terms of whom they are going to fund.

Key transactions

Mobile-first credit card startup OneCard raised Rs 239.4 crore ($28.5 million) from Better Tomorrow Ventures, Peak XV, and Z47, an Entrackr report said.

Candytoy Corporate raised Rs 110 crore ($13 million approx.) from domestic investors, HNIs, angel investors, and institutional investors.

ALT Mobility, an EV-focused startup, raised $10 million from Eurazeo, Shell Ventures, Twynam Earth Fund, and EV2 Ventures.

D2C tech startup ShopDeck raised $8 million from Bessemer Venture Partners, Elevation Capital, Venture Highway, and Chiratae Ventures.

Elchemy, a speciality chemical distribution platform, raised $5.6 million from Prime Venture Partners and InfoEdge Ventures.

All Things Baby, a curated platform for baby and mothercare products, raised Rs 30 crore ($3.5 million approx.) from the family office of Manish Choksi and Richa Choksi.