April sees start-up funding uptick

Fund inflows not only create opportunity for recovery but also indicate turnaround in FY25
April sees start-up funding uptick

BENGALURU: Start-up ecosystem is slowly recovering from funding winter as late-stage start-ups have managed to raise significant funds in April 2024 compared to the same month last year.

As per data from analytics firm Venture Intelligence, there were 10 late-stage funding deals as against four in the same period last year. Start-ups raised $159 million in 19 deals compared to $62 million in eight deals in April 2023. Akshay Munjal, founder & CEO, Hero Vired, said, “Indian start-up funding ecosystem, despite facing hurdles in the last financial year, experienced a refreshing boost in April this year with several noteworthy late-stage funding deals.”

This sudden surge not only creates an opportunity for recovery but also indicates a turnaround in funding this fiscal. “The narrative of start-up funding last month is one of optimism and collaboration, paving way for more innovative and inclusive future,” he added.

As per venture capitalists, start-up funding will continue in coming months. On Wednesday, AiDash, an enterprise SaaS company, announced the official closing of its Series C funding at $58.5 million. Early-stage start-ups are seeing major fundings as Equirus InnovateX Fund (EIF) led seed investment round in Lithium Battery Ecosystem start-up PointO. EIF led the round with an investment of Rs 5 crore, from the Rs 6.2 crore raised in this round.

Last week, MatchLog Solutions raised $1.5 million in pre-series A funding and Healthtech AI start-up Endimension Technology raised `6 crore in Pre-Series A round led by Inflection Point Ventures. In the second week of April, AI cloud and platform-as-a-service start-up Neysa raised $20 million in Seed funding. Led by Matrix Partners India, Nexus Venture Partners, and NTTVC, it said the funding will help drive Gen-AI-cloud platform as a service and observability for India and global markets.

Manoj Agarwal, Managing Partner, Seafund, said, “The uptick is driven by a combination of renewed investor interest, market corrections, and a focus on sustainable and innovative business models. While the future looks promising, it’s important for start-ups to build robust risk mitigation strategies to navigate potential global market and economic volatilities.”

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