In an impressive feat, Indian startups raised $1.34 billion in May 2024, marking the highest funding month this year. This surge, highlighted by Google–Flipkart‘s $350 million deal, included multiple $100 million-plus rounds and several growth-stage investments, according to TheKredible.
Key Funding Highlights
- Total Raised: $1.34 billion across 128 deals
- Growth-Stage Deals: 39 deals worth $1.19 billion
- Early-Stage Deals: 66 deals totaling $154 million
- Undisclosed Rounds: 23, mainly early-stage
Unicorns and Trends
Perfios became the latest unicorn in March, with Bhavish Aggawal‘s AI startup Krutrim preceding it as the first unicorn of the year. Funding in May jumped nearly 29% month-on-month and 32% year-on-year.
Major Deals
- Top Growth Stage: Flipkart ($350M), Atlan ($105M), NephroPlus ($102M)
- Notable Series A: TechnoSport ($21M), Libas ($18M)
City and Segment Analysis
- Top Cities: Bengaluru (52 deals), Delhi-NCR (33 deals), Mumbai (14 deals)
- Leading Segments: E-commerce, fintech, SaaS, agritech, healthtech
Series and M&A Activity
- Series-wise: Seed and pre-seed (47 deals), Series A (19 deals)
- M&A: 8 deals, highlighted by Freshworks acquiring Device42 for $230M
Employment Trends
May saw fewer layoffs, with notable reductions at PrepLadder and Simpl. However, AI-driven firings are anticipated, potentially impacting firms like Paytm and Ola Electric.
Conclusion
May’s funding surge reflects growing investor confidence, suggesting a positive outlook for the Indian startup ecosystem despite potential headwinds.
