Indian Startups Raise a Staggering $800 Million in a Record-Breaking Week

Zepto Leads the Surge with a Monumental $665 Million Funding Round

Indian startups experienced a remarkable week, raising a cumulative $800.5 million across 29 deals, marking a significant 296% increase from the $201.8 million secured last week. The unprecedented surge was driven by quick commerce unicorn Zepto, which announced the closure of a monumental $665 million funding round, propelling its valuation to $3.6 billion. This single round of funding eclipses the total $512 million raised by Indian startups in January 2024.

Zepto’s significant funding round catapulted the consumer services sector to the top of the funding charts. The fintech sector followed, with startups raising $50.3 million across nine deals. Among the most active investors this week were Peak XV Partner, IndiaQuotient, Matrix Partners India, and Dr. Vaidya’s Arjun Vaidya, each backing two startups.

Seed funding saw a dramatic increase, surging 141% to $22.7 million from last week’s $9.4 million. In another significant development, non-banking financial company UGRO Capital raised INR 1,265 crore ($151.6 million) by issuing compulsory convertible debentures (CCDs) worth INR 258 crore and warrants worth INR 1,007 crore to investors.

This week’s funding spree underscores the dynamic and rapidly evolving landscape of the Indian startup ecosystem. With significant investments and strategic mergers, the sector is poised for further growth and innovation.