Venture funding to startups in India slumps to $70 million in April 11–17 week, lowest in 2024 so far

Venture capital inflows into startups in India slid sharply in the week of April 11–17, dropping to $70 million across 16 deals from $588 million the previous week. It was the lowest weekly total of the year so far, underscoring how volatile funding has become.

The uneven flow highlights the challenges founders face in securing a steady stream of investment. According to the week’s tally, not a single transaction crossed $50 million, and the number of deals was lower. The trend is being driven primarily by an uncertain global macroeconomic environment that is impeding the flow of funds, and it is unlikely there will be any upward revival in funding momentum anytime soon.

These developments are not a positive sign for the startup ecosystem as they add further uncertainty, with only a very few companies able to raise large sums. Even so, a handful of notable rounds came through. Branded national hostel chain The Hosteller raised Rs 150 crore (approximately $16 million) from PROMAFT Partners, V3 Ventures, ITI Growth Opportunities Fund, Merisis Wealth Trust, and family offices.

AI startup GobbleCube secured $15 million from Susquehanna Venture Capital, InfoEdge Ventures and Kae Capital. HR tech startup TraqCheck raised $8 million from IvyCap Ventures and IIFL. With no large-ticket deals and the pace of transactions slowing, the latest figures reinforce the pressure on the ecosystem.

Until macroeconomic conditions stabilize, the funding environment is expected to remain patchy, keeping founders focused on prudent growth and capital efficiency in the near term.