News Desk, Feb 5: Indian startups witnessed a mixed bag in January 2024, raising $732.7 million across 107 deals despite facing challenges like layoffs, shutdowns, and top-level exits. While the deal count remained robust, the funding amount marked a significant decrease from $1.7 billion in December 2023 and was the lowest for January in the past three years.
Early-stage deals led the way with 70 rounds worth $314.4 million, followed by 21 growth-stage deals valued at $418.3 million. Interestingly, 16 funding rounds remained undisclosed.
Fintech emerged as the clear frontrunner, with Vivifi securing the highest funding of $75 million. Other notable players in the top five included AiDash, wow! Momo, Impact Analytics, and BluSmart. Interestingly, three growth-stage companies – OneCard, Infra.Market, and Yulu – opted for debt funding.
However, amidst the funding activity, the shadow of layoffs loomed large. Over 600 employees lost their jobs across three companies, with Swiggy leading the way with 350 layoffs. E-commerce giant Flipkart also made headlines for letting go of over 1,000 employees.
The trend of high-profile exits continued, with Udaan witnessing the departures of its CFO and FMCG business head. CEOs of PhonePe-owned Indus Appstore and KnowledgeHut, along with co-founders of DealShare and Fashinza, also joined the exodus.
Adding to the gloom, cricket NFT platform Rario and music streaming app Resso announced their shutdowns.
Despite the funding slowdown and employee exits, January 2024 highlighted the resilience of the Indian startup ecosystem. Fintech held strong, and Krutrim SI Designs even achieved unicorn status with a $50 million funding round. However, the challenges remain real, and it remains to be seen how startups navigate the uncertain economic climate in the coming months.
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