The Indian startup ecosystem began March on a somewhat quiet note following a robust spike in startup funding throughout February. Following weeks of strong deal momentum, investor activity temporarily halted during the first week of the month.
Indian entrepreneurs raised $97.6 million through 11 agreements between March 2 and March 6, a 56% decrease from the $219.8 million raised the week before. In the final week of February, about one-third of all transactions were registered, a substantial decline in the number of trades.
Even while these kinds of swings are typical in the venture capital scene, the steep decline indicates that investors are becoming more cautious as the new month gets underway.
Rozana And Pronto Lead The Weekly Deals
Despite the slowdown, a few startups managed to secure sizeable investments. Ecommerce marketplace Rozana emerged as the biggest fundraiser of the week, raising $31.6 million in a Series B round led by Bertelsmann India Investments. The round also saw participation from Spark Growth Ventures, Bikaji Family Office, FE Securities, and Fireside Ventures.
Rozana focuses on building a digital marketplace that connects local retailers with consumers, helping neighbourhood stores expand their reach through online channels.
The second-largest deal came from the quick commerce space. Pronto raised $25 million in a Series B round led by Epiq Capital, with participation from Glade Brook Capital, General Catalyst, and Bain Capital Ventures. The funding reflects continued investor interest in the ultra-fast delivery segment, which remains one of the most competitive areas in India’s consumer internet ecosystem.
Another notable deal came from fintech startup Innoviti, which secured $11.4 million in funding from investors including Bessemer Venture Partners, along with several angel investors and family offices.
Ecommerce Tops Sectoral Funding
On the sectoral front, ecommerce startups attracted the highest funding this week, raising $39.5 million across four deals.
Apart from Rozana, premium skincare brand RAS Luxury raised $7.5 million in a Series B round led by Dabur Ventures, with participation from Unilever Ventures. The funding reflects growing investor interest in premium D2C brands catering to niche consumer segments.
Meanwhile, early-stage ecommerce startups Peping and Bubble Me also secured smaller funding rounds, highlighting continued experimentation within the D2C ecosystem.
Seed Funding Takes A Sharp Hit
One of the most notable trends this week was the steep decline in seed-stage funding. Early-stage startups collectively raised just $5.9 million across two deals, compared to $32.5 million across 15 deals in the previous week.
Among the key seed-stage deals was healthtech startup Cent, which raised $5 million from OneFlow Holdings and South Park Commons. The startup operates in the diagnostics segment and aims to make healthcare testing more accessible.
In the deeptech space, Turiyam.ai, a semiconductor startup, raised $4 million in a pre-seed round led by Ankur Capital, with participation from Micelio Fund.
B2C Startups Dominate Funding
This week, investors continued to spend most of their attention on consumer-focused firms. The majority of the weekly funding was raised by six B2C firms, totaling $69.1 million.
Sectors like financial, enterprise services, and advanced technology witnessed comparatively lesser deal sizes, even if B2B businesses also obtained funding.
Although venture capital firms like Bertelsmann India Investments, Bessemer Venture Partners, and Prime Venture Partners took part in some of the bigger deals, it’s interesting to note that no single investor dominated the fundraising landscape this week.
IPO Pipeline And M&A Activity Continue
Even as funding slowed, activity in the startup IPO pipeline remained strong. Deeptech startup SEDEMAC is set to make its stock market debut on March 11 after its IPO closed with a 2.68x oversubscription.
Moneyview, a fintech startup, filed its Draft Red Herring Prospectus (DRHP) with SEBI for an initial public offering (IPO) that includes a ₹1,500 crore fresh issuance and an offer to sell up to 13.61 crore shares.
After becoming a public limited company—a crucial need for going public—furniture rental firm RentoMojo has also started getting ready for its initial public offering (IPO).
In terms of mergers and acquisitions, MakeMyTrip plans to strengthen its vacation package business by acquiring the majority of Flamingo Transworld, a tour operator. In the meantime, Spanish tuna manufacturer Frime was acquired by B2B seafood startup Captain Fresh, broadening its seafood offerings.
More Deals Brewing
Despite the slow investment activity during the first week of March, a number of entrepreneurs are already in negotiations to raise new funds. D2C company Bonkers Corner is apparently in advanced talks to raise approximately $15 million in a Series A round, while quick commerce firm BaazarNow is reportedly seeking to raise about $9 million.
The continuous fundraising discussions, IPO preparations, and acquisition activities indicate that momentum within India’s startup ecosystem is still strong even though the week may have been slower.
