The Indian startups ecosystem seems to bounce back from the winter of funding, as venture capital investment has increased regularly each month. August 2024 was a star, with several major financing cycles, significant investments in startups at the growth stage, many transactions from level II cities, IPOs and major mergers and acquisitions. These factors make it unique compared to other months this year.
According to data compiled by The credibleLocal startups raised nearly $ 1.6 billion in 112 offers in August. This total included 27 growth phase transactions worth $ 1.32 billion and 71 early phase transactions for an amount of $ 267 million. Meanwhile, there have been 14 not disclosed transactions mainly in the start -ups in the start -up phase. Compared, startups have been raised nearly $ 1 billion in July.
(Yoy and Mom Trend)
The $ 1.6 billion raised in August is the second largest funding amount of 2024, after June, and the third highest in the last 12 months. Over one year on the other, August 2024 was also classified at the top for the total funds collected. In addition, Indian startups raised around $ 9.6 billion in the first eight months of 2024.
If this trend persists, global funding is likely to comfortably exceed the $ 11 billion Produced in 2023. For the context, Indian startups received $ 38 billion in funding in 2021 and 25 billion dollars in 2022.
(Top 10 growth stage agreements)
Among the growth stadium agreements, Zepto $ 340 millionDMI Finance $ 334 millionand oyo $ 175 million The rounds represented more than 50% of the total funds collected last month. With new funding, Zepto and DMI Finance reached $ 5 billion and $ 3 billion respectively. However, Oyo has seen more than 75% drop in its evaluation at 2.4 billion dollars, against a peak of $ 10 billion.
Just as in July, August saw the emergence of a new unicorn, while the athère energy supported by the hero has exceeded the $ 1 billion assessment Mark with its latest financing round. Among the other notable agreements at the growth stage, noted Neo, Blue Tokai, Visit Health, Yubi, Livpure and Syfe. Swiggy, who raised The funds of the Family Office of Amitabh Bachchan did not disclose the size of the agreement.
(Top 10 agreements in the first step)
Startup EV Kinetic Green led the financing table at an early stage with a 25 million dollars Round series, followed as well as health care with $ 20 millionFreshbus with $ 10.5 millionAnd both Beco and the AI investors, each collecting $ 10 million.
Agrizy $ 9.8 million Funding was the fourth largest in Agritech for 2024, a sector which recently decreased. Among the other major agreements at an early stage, let us quote Scimplify, a company of specialized chemicals; Kindlife, a new company in the co-founder of Shopclues, Radhika Ghai; Kazam automotive startup; And the Finnop Fintech Punch, which have all ranked among the 10 best investments in the start -up phase.
(Mergers and acquisitions)
In August, the number of merger and acquisition transactions increased to 19, against only 17 in July. In particular, the acquisition of Paytm’s Films and Ticketing Business by Zomato Limited for 244 million dollars has become one of the largest mergers and acquisitions of 2024. bought by Nazara in an agreement of $ 27.2 million.
Some mergers and acquired offers acquisition of bird eats a bug, the parent of radio Mirchi enil purchase of Gaana and the acquisition by Verse de Valueleaf. In addition, Emami Limited noted its participation in the human society from 50.4% to 100%, a development first reported by Entrockr in July.
(City and segment offers)
In terms of city funding, startups based in Bengaluru led with 38 transactions totaling $ 265 million in August. However, Delhi-MCR startups raised $ 724 million in 29 transactions, more than double the amount collected by Bengaluru startups. In addition, startups based in Mumbai have exceeded Bengaluru in total funding, obtaining $ 453 million on 20 transactions.
Regarding Fintech startups, led the show with 27 offers followed by electronic commerce (including D2C brands), health, Saas and Proptech with 16, 8, 7 and 4 offers, respectively. Visit The credible For more details. Edtech was one of the least funded segments with 3 transactions amounting to $ 5 million. He only contributed 0.3% to the total amount collected in August.
(Offers in terms of stage)
Regarding the financing stages, 35 startups have raised capital in the seed tour, 28 in series A, 13 in pre-series A and 9 in series B. The financing of debt only represented 2.56% total funding of the month. For the complete ventilation of offers on the stage, visit The credible.
(Layoffs, closings, key departures and hiring)
The layoffs experienced a significant drop from 650 employees in July to 290 employees in August. In particular, Google and Dunzo subject to Reliance would have been dismissed 150 employees, Beepkart give up 100 employees and Sharechat reduced his workforce by 30 to 40 employees. In addition, Kenko Health, My Tirtth India and the streaming application of Airtel Wynk Music close their operations. The closure of Wynk is attributed to increasing competition, while Kenko Health and My Tirtth India have ceased operations due to financing difficulties.
In August, there was an increase in hiring and the departure of key frames. Notable outings included Manish Tiwary from Amazon India, Prashant Sinha de Metadome.ai and Srinivasagopalan Ramamurthy de Freshworks. On the job front, Meesho, Swiggy Instamart, Evenflow, Zetwerks, Perfos and Oyo introduced new talents in roles such as the Director General, the Co-founder and the Independent Director, among others.
(Trends)
More IPO IPP Intual Pipeline: During the first eight months of 2024, ten startups became public. In August alone, Ola Electric, Unicommerce and Firstcry finished their IPOs. SWIGGY aims to submit the IPO documents project with SEBI in the first week of September, while companies like Infra.Market, Bluestone, Eom Express, Offusiness and Oyo also progress on their IPO plans. In addition, ZAPPFRESH submitted an IPO document project to SEBI to register on the SME BSE platform.
Fast trade in action: The fast trade sector is intensifying in competition, highlighted by the mega-round of Zepto, the recent entry of Flipkart and the full passage of Bigbasket on fast delivery. Amazon is expected to enter the market early next year. The electronic commerce giant was also in talks to acquire SWIGGY fast trade activities. Currently, Blinkit belonging to Zomato is the main player of Quick Commerce followed by Swiggy Instamart, Zepto and Bigbasket belonging to Tata.
Startups of level II cities: In addition to the main metropolitan areas and startup centers such as Bengaluru, Delhi NCR, Mumbai and Hyderabad, there was a notable influx of cities transactions like mangalore, Raipur, Dehradun, Udaipur, Surat, Jodhpur, Nashik and Lucknow . This indicates a significant change, but minor, in traditional start -up models.
Founders fueling growth: The OYO $ 175 million financing round included a significant investment of $ 100 million from the founder of the company, Ritesh Agarwal, presenting another example of a founder investing in his own startup. Likewise, Yubi secured $ 30 million Of its founder and CEO, Gaurav Kumar, while Cambrian Bioforks received An uncluttered quantity of its founder during his seed tour. This founding investment practice has already been observed with Ather Energy, Byju and Blusmart.
(Conclusion)
Although the drop in debt financing is something to be well received, because it does not seem to sit well with the idea of supporting startups, we would add a note of caution here on the sustainability of the current recovery. Although, as previously indicated, a reduction in interest rates expected by the Fed in the United States will guarantee that the momentum remains well in 2025, the fact remains that important parties of public procurement is indeed in the territory of ” ‘exuberance “in terms of assessments. Unlike public procurement, however, the private VC markets remain much more dependent on foreign fund flows, and this could still be a disruptor in the ecosystem, despite the rise of inner capital. Although with the American problems of China, and now, even Brazil arbitrarily moving against Twitter, India could be in an ideal place for global investors. It might be fair to say that the substance has been reached, and a rebound is on the right track for Indian startups with regard to their funding environment.