Startup Funding Round (Sept 01–06): Investors Ventures Leads The Week

The funding is nearly doubling the $98.2 Mn raised across 18 deals in the last week of August. The surge signals renewed investor confidence as founders and venture capitalists prepare for a busy festive quarter.

Big Startup Funding of The Week

The week was marked by a few large cheques that set the tone for the ecosystem.

CityMall

CityMall, a social commerce and marketplace startup often seen as a competitor to Meesho, bagged the biggest round of $47 Mn (Series D) led by Accel. The round also saw participation from Elevation Capital, Jungle Ventures, and others.

Seekho App

Short-video and learning platform Seekho closed a $28 Mn Series B led by Bessemer Venture Partners.

Blue Tokai Coffee Roasters

Specialty coffee chain Blue Tokai Coffee Roasters raised $25 Mn from A91 Partners and Verlinvest, strengthening the D2C wave.

FirstClub

Quick commerce platform FirstClub grabbed $23 Mn (Series A) co-led by Accel and RTP Global.

Colive

Co-living player Colive secured $20 Mn (Series B) from Bain Capital.

Together, these five deals accounted for nearly three-fourths of the total funding this week.

Sectoral Trends: Ecommerce Leads The Way

Ecommerce startups once again dominated the fundraising landscape. Eight ecommerce ventures collectively raised $78.8 Mn, reflecting both investor appetite and consumer demand. CityMall’s mega-round was the highlight, while other D2C players such as Blue Tokai, Tuco Kids, and House of Zelena also attracted capital.

Healthtech continued to hold ground, with startups like PlatinumRx ($6 Mn), FlexifyMe ($2.3 Mn), and RxMen ($566K) raising funds across different sub-segments such as online pharmacies, telemedicine, and diagnostics. Meanwhile, the cleantech sector also saw traction with Offgrid Energy ($15 Mn) and QuantE Energy ($500K) drawing investor interest in climate-focused innovations.

Early-Stage Funding Slows Down

While late-stage deals stole the spotlight, the seed-stage activity softened. Six early-stage startups raised $2.9 Mn, a sharp 64% decline compared to the $8.1 Mn secured in the previous week. This indicates a more cautious stance among investors when it comes to backing idea-stage or very young ventures.

Who Backed Whom?

Several VC firms showed heightened activity this week:

Accel participated in two major deals – CityMall and FirstClub.

RTP Global, Elevation Capital, and Inflection Point Ventures also made multiple bets.

Angel investors such as Rohit Goyal, Raghu Venkatraman, and founders like Raghunandan G (Zolve) and Amit Lakhotia (Park+) continued to play an important role in seeding early-stage ventures.

Fund & IPO Updates: Capital On The Move

Beyond startup funding, the venture and public markets were buzzing with developments:

Elev8 Venture Partners closed its debut fund at $160 Mn, targeting 12–14 growth-stage startups.

Venturi Partners marked the first close of its $225 Mn fund at $150 Mn, aimed at retail, healthcare, and FMCG startups.

L Catterton completed the first close of its $200 Mn India-focused consumer fund, planning to back 7–9 growth-stage companies.

M&A & Corporate Moves

Amazon completed its $200 Mn acquisition of digital lending startup axio (formerly Capital Float).

TBO Tek is set to acquire US-based Classic Vacations for $125 Mn.

Flipkart took a majority stake in Pinkvilla India, strengthening its youth-focused media play.

PhysicsWallah (PW) acquired a 40% stake in Sarrthi IAS to expand its UPSC coaching presence.

Outlook

The strong rebound in funding, coupled with multiple IPOs and fund closures, points to a revitalized Indian startup ecosystem. With ecommerce leading the charge and cleantech, healthtech, and consumer services gaining momentum, the ecosystem appears poised for a bullish run as 2025 heads into its final quarter.

For founders, this is a reminder that while early-stage capital is tightening, strong business models, scalable consumer plays, and sectoral tailwinds continue to attract significant investor confidence.