[Weekly funding roundup Feb 24-Mar 1] Sharp rise in venture capital inflow

March has begun on a positive note, with venture capital funding into Indian startups on a weekly basis rising sharply on the back of two startups raising capital in the $100-million range–and this is the highest amount raised this year.

The Feb 24-March 1 week saw total VC funding of $328 million across 24 deals. In contrast, the previous week's funding stood at $141 million.

However, it would be difficult to say whether the $300-million plus funding raised this week is the beginning of a trend and if capital inflow will remain at this level in the future. The external environment continues to remain challenging, and the uncertain period is most likely to continue for some more time.

There are still challenges within the startup ecosystem where mostly the well-run companies are managing to raise capital. A majority of startups are still undergoing a difficult time. Funding will gather momentum only when there is a consistent inflow of large deals.

Key transactions

SaaS startup Capillary Technologies raised $95 million as part of its Series D round from a group of investors.

Logistics startup Shadowfax raised $100 million from TPG NewQuest, Mirae Asset Venture, Flipkart, IFC, Nokia Growth Partners, Qualcomm, and Trifecta Capital.

Kushal’s, a fashion and silver jewellery brand, raised Rs 284 crore ($34.2 million) from Lighthouse.

ZenoHealth, a medicine delivery platform, raised $25 million from Stic Investment and Lightbox.

Fintech startup Mswipe Technologies raised $20 million from Alpha Wave Global, Matrix Partners, B Capital, DSG Consumer Partners, Epiq Capital, UC-RNT, and Ola.

Direct-to-consumer (D2C) luggage brand Mokobara raised Rs 100 crore ($12 million) from Peak XV Partners, Sauce VC, and Saama Capital.

Energy tech company Smart Joules raised $8 million from the Investment Fund for Developing Countries of Denmark.