Indian startups secure $395 million in deals this week

Indian startups raised $1.03 billion in July as the government abolished angel tax in the Union Budget 2024-25, which was levied on foreign investors.

Riding on the overall economic growth, Indian startups raised more than $395 million in at least 20 deals this week, a massive about 350 per cent jump from $113 million secured last week in 22 deals. Hospitality and travel-tech company Oyo led the funding ecosystem with raising Rs. 1,457 crore (nearly $175 million) in a Series G round from investors like InCred Wealth, Patient Capital, J& A Partners, the family office of Mankind Pharma promoters and ASK Financial Holdings, among others.

Wealth and asset management firm Neo secured Rs. 400 crore (about $48 million) in Series B round led by MUFG Bank and New York-based Euclidean Capital LLC. EV firm Ather Energy reportedly secured $71 million led by the National Investment and Infrastructure Fund (NIIF), taking its valuation to $1.3 billion and making it a new unicorn. With this, the company managed to raise over $125 million in the last three months.

Fintech startup Innoviti raised Rs. 70 crore ($8.5 million) in a combination of equity and debt, led by Random Walk Solutions, with participation from existing investors Bessemer Venture Partners USA, Patni Family Office India and Alumni Ventures.

Indian startups raised $1.03 billion in July as the government abolished angel tax in the Union Budget 2024-25, which was levied on foreign investors. As per reports, Indian startups raised via 126 deals, of which 28 were growth or late-stage deals worth $725 million, whereas 72 were in the initial-stage deals worth $311 million. Indian startups raised $1.93 billion in funding in June. The Union Government-recognised startups generated more than 15.5 lakh direct jobs to date.

The Department for Promotion of Industry and Internal Trade (DPIIT) has recognised 1,40,803 entities as startups (as of June 30).