New Delhi, Feb : In another active week for India’s startup ecosystem, 23 startups successfully secured more than $138 million in funding through a mix of five growth-stage deals and 20 early-stage investments. This comes after last week’s momentum when 30 startups raised $240.85 million, continuing the sector’s strong growth trajectory.
Among the key fundraisers, payments solutions provider Cashfree Payments attracted $53 million in a funding round led by South Korea’s KRAFTON, the digital entertainment giant, alongside existing investor Apis Growth Fund II, managed by UK-based Apis Partners Group. The funds will be deployed to enhance Cashfree’s product offerings and expand its market footprint.
In the AI sector, TrueFoundry, an AI deployment and scaling platform, raised $19 million in Series A funding. The round was led by Intel Capital, with participation from existing investors Eniac Ventures and Peak XV’s Surge (formerly Sequoia Capital India & Southeast Asia). New investor Jump Capital and several angel investors also joined the round, demonstrating strong market confidence in the company’s growth potential.
The logistics sector saw a significant boost with Shadowfax securing $16.8 million across two funding tranches. Key participants included Mirae Asset, Nokia Growth Partners, and Edelweiss. Meanwhile, healthcare-focused startup Apex Kidney Care, which specializes in dialysis services, received $9 million in funding from Blue Earth Capital, signaling investor interest in the country’s growing healthcare sector.
HairOriginals, a company that produces premium hair extensions, raised $5 million in its Series A funding round, bringing its total raised to date to $7.2 million. The round was co-led by 12 Flags Consumer Holdings and Anicut Growth Fund, with additional backing from Peyush Bansal, reflecting investor confidence in the consumer-focused brand.
Beyond individual deals, the broader startup ecosystem received a substantial boost from the provisions outlined in the recent Union Budget, which experts have described as a “game-changing catalyst” for entrepreneurship and innovation in India. Key measures aimed at fostering growth include:
• Tax relief for middle-income earners, which is expected to increase disposable income and consumer spending.
• Expanded credit access for micro, small, and medium enterprises (MSMEs) to fuel entrepreneurship and job creation.
• The expansion of the Fund of Funds for startups, a government-backed initiative to support emerging businesses.
The Budget also includes an increase in the credit guarantee cover for startups from ₹10 crore to ₹20 crore, with the guarantee fee reduced to just 1% for loans in 27 priority sectors critical to India’s Atmanirbhar Bharat vision.
Additionally, Alternate Investment Funds (AIFs) for startups have received commitments exceeding ₹91,000 crore, supported by the government’s Fund of Funds, which includes a ₹10,000 crore contribution from the Centre. This funding is expected to play a crucial role in providing startups with the capital they need to scale operations and drive innovation.
The combination of strong investor interest and supportive policy initiatives suggests that India’s startup ecosystem is on a robust growth path, with ample funding opportunities and government backing paving the way for long-term success.( With inputs from IANS)
