Weekly Funding Roundup (April 5–11): VC Inflows into Indian Startups Remain Subdued

Venture capital (VC) funding in Indian startups continues to remain muted, with no significant uptick as macroeconomic uncertainty, driven largely by global tariff tensions, weighs heavily on investor sentiment. During the second week of April, startups raised $209 million across 23 deals, only a slight increase from the $202 million recorded the previous week.

This flat trend underscores the cautious approach being taken by investors amid ongoing geopolitical and economic turbulence. The cloud of uncertainty — sparked in part by continued trade tensions initiated by former U.S. President Donald Trump — has dampened confidence, with little visibility on how these dynamics will evolve.

Weekly Highlights: One Big Deal Lifts the Numbers

A major contributor to this week's funding total was a $60 million round raised by Juspay, backed by Kedaara Capital, SoftBank, and Accel. Without this single large deal, the total funding would have been markedly lower. It's notable that no deal above $100 million has taken place in the last four weeks — a clear signal of the current challenging capital environment.

Distress-Led M&A On the Rise

In parallel, India's startup space is witnessing a rise in mergers and acquisitions, many appearing to be distress sales. Key examples from the week include:

• Delhivery acquiring Ecom Express

• Good Glamm Group divesting MissMalini Entertainment

In both cases, the transactions reportedly occurred at valuations well below their previous highs, highlighting the pressure on startups to consolidate or exit.

Silver Linings: New Global Fund and Zepto’s Surge

Despite the cautious climate, there were some bright spots:

• Expert Dojo, a Southern California-based VC firm, announced a new $100 million global fund, allocating $15 million specifically for Indian startups.

• Quick commerce unicorn Zepto reported nearing a $4 billion annualised gross order value (GOV) — a 4x year-over-year growth and a 30% increase since January.

Key Transactions of the Week

• Juspay raised $60 million from Kedaara Capital, SoftBank, and Accel.

• Easebuzz secured $30 million from Bessemer Venture Partners, 8i Ventures, and Varanium Capital.

• Eloelo, a social gaming platform, raised approx. $13.5 million (₹114 crore) from Play Ventures, Gameskraft Technologies, WestBridge Ventures, and Kalaari Capital.

• Xindus, a logistics startup, raised $10 million from 3one4 Capital, Orios Venture Partners, Shastra VC, and Caret Capital.

• Asha Ventures secured $10 million from British International Investment (BII).

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Takeaway: The Indian startup ecosystem remains in a holding pattern, with cautious optimism amid subdued VC flows. While large-scale deals remain elusive, strategic funding and selective M&A point to ongoing recalibration — and perhaps resilience — in the face of macroeconomic headwinds.