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Indian Startups Secure $395M in Funding in Just One Week

Startups

Business Honor
19 August, 2024

Indian startups saw a dramatic funding surge with $395 million raised in one week, driven by regulatory reforms and new unicorns.

Indian startups achieved a significant milestone last week, securing over $395 million across 20 deals, marking a 350% increase in funding compared to the previous week, according to The Statesman. This surge in investment follows the Indian government's recent abolition of angel tax on foreign investors, which was implemented in the Union Budget 2024-25.

The funding spree, which contributed to a total of $1.03 billion raised in July, includes notable deals with companies such as the hospitality and travel-tech firm Oyo, which led the funding round with nearly $175 million. The report also highlights Ather Energy, an electric vehicle (EV) startup that raised $71 million, reaching a valuation of $1.3 billion and achieving unicorn status.

The report detailed that the $395 million was raised through 126 deals, with 28 being growth or late-stage investments worth $725 million and 72 in early stages totaling $311 million. This influx of capital underscores India's growing startup ecosystem, which has seen over 55 regulatory reforms since 2016 aimed at improving business conditions and reducing compliance burdens.

The surge in funding reflects the vibrancy of India's startup sector, which has already created more than 1.55 million direct jobs. With 70 unicorns as of 2023, India ranks third globally, following the United States and China, in the number of high-value startups.