Chennai: Indian startups were able to attract funding above Rs 1 billion in October, indicating that the funding winter is far behind. However, the funding in October was subdued both on a year-on-year and sequential basis.
Homegrown startups raised nearly Rs1.2 billion across 119 deals in October, according to the data from The Kredible. On a sequential basis, October saw more than 25 per cent decline in funding from Rs 1.62 billion in September. On a yearly basis, the decline in October was 13 per cent against Rs1.38 billion in the same month last year. Total funding during the first 10 months of 2024 stood at Rs 12.2 billion, surpassing 2023’s Rs11 billion.
Fintech startups closed 13 deals, securing Rs 245.98 million and contributing 20.47 per cent to the total funding. This was followed by the e-commerce sector, which recorded 24 deals worth Rs 208.48 million, representing 17.35 per cent of the total funding. Edtech was close behind with 6 deals, raising Rs 225 million and contributing 18.73 per cent. After facing severe funding crunch edtech is making a comeback. After PhysicWallah's Rs 210 million funding in September, Eruditus and upGrad raised Rs150 million and Rs 60 million, respectively, in October.
Bengaluru-based startups led with 46 deals totalling Rs 502.72 million, representing 41.84 per cent of the total funding. Mumbai-based startups entered 26 deals, raising Rs 339.11 million and contributing 28.22 per cent.
While funding is showing some stability, layoffs by startups have decreased sharply, with only two startups laying off up to 120 employees. Over 270 employees were laid off by four startups in September and around 4,600 employees were laid off in the first 10 months of 2024. This year’s layoffs are significantly lower than the 24,000 recorded in 2023 and the 20,000 in 2022. END
