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Indian Startups Raised Over $91 Million in Second Week of April 2024

ISN Team
Updated On
New Update
Indian Startups Funding

In the first week of April 2024, the Indian startup ecosystem got off to an impressive start, securing over $164 million in funding across 21 deals. However, the second week didn't seem to surpass the first-week funding milestone. 

In the second week, As many as 17 startups from diverse sectors raised over $91 million in funding; these sectors include Healthcare, Electric Vehicles (EV), D2C, Lending, Tech, Fintech, Healthtech, B2B, Insurance, and even Deftech.



A diverse range of sectors attracted investments during the week, with the AI and Tech GRC (Governance, Risk, and Compliance) industry leading the pack. Leading these sectors were AI startup Neysa Networks and Sprinto, each raising $20 million respectively.

It's worth mentioning that investments in Indian AI startups have declined, totalling $560 million across 25 funding rounds—a 49.4% decrease compared to the previous year. The notable decline in funding for AI startups in India can be attributed to the economic slowdown, market saturation, regulation changes, etc.

Behind AI and Tech (GRC), the B2B (business-to-business) and fintech sectors collectively accounted for more than 25% of the total amount raised this week. 

Recykal secured the highest funding in the B2B category, raising Rs 110 crore in a pre-Series B funding round managed by a Category II scheme from 360 ONE Asset Management Limited (formerly known as IIFL Asset Management Limited). AVIOM HFC raised the most in the fintech sector, securing $10 million in debt. Meanwhile, another fintech startup, Paytring, raised an undisclosed amount.

It's worth noting that the Indian fintech sector has witnessed a notable decline in funding following the Reserve Bank of India's (RBI) stringent actions against Paytm Payments Bank.

For instance, a Tracxn report said that fintech companies witnessed a 57% drop in funding in Q1 2024. Domestic fintech startups raised a total of $551 million between January and March 2024, compared to $1.3 billion in the same period in 2023.

Apart from AVIOM HFC, Bengaluru-based digital lending startup Axio (formerly Capital Float) reportedly raised $6 million in debt from Alteria Capital. 

The week also saw significant funding activity in the Insurance, Healthcare, and Healthtech sectors. ClaimBuddy, a platform designed to assist with health insurance claims, raised $5 million in a Series A funding round, while healthtech startup Butterfly Learnings raised $3.8 million in a similar round. 

Medical diagnostics platform 5C Network reportedly raised approximately $3 million in funding from Redwood India Healthcare Fund. Another healthcare startup, PlatinumRx, raised $800,000 from IndiaQuotient and other prominent angel investors.

Behind the leading sectors, startups in industries such as EV, D2C, eyewear, cloud kitchen, Deftech, and others collectively raised over $10.5 million in funding.

In Deftech, Zulu Defence System closed a $750,000 seed funding round led by Finvolve. The startup pioneers in Advanced Air Defence Aerial Systems for rapid deployment, resilient ISR, precision strike and countermeasure capabilities in contested environments.

Overall, while the second week didn't surpass the initial surge in funding, the continued investment across a variety of sectors indicates sustained interest and confidence in the potential of Indian startups.