Indian startups secured $1.3 billion in funding in May, marking the highest amount raised in 2024 to date.

Investments in Indian startups reached a record high in May, surpassing the $1.3 billion mark. This increase was driven by a $350 million deal between Google and Flipkart, several $100 million-plus rounds, and multiple growth-stage fundings. Data from TheKredible shows that Indian startups secured $1.34 billion across 128 deals in May, with 39 growth-stage deals totaling $1.19 billion and 66 early-stage deals amounting to $154 million. Additionally, there were 23 undisclosed rounds, mainly early-stage.

The Indian startup ecosystem saw its last unicorn in March with Perfios, and this year has produced two new unicorns, with Krutrim being the first. May's funding represented a nearly 29% increase from April's $1 billion and a 32% year-on-year rise from May 2023’s $1.01 billion. Since January, startups have raised over $5.1 billion, projected to reach $12 billion by year-end, compared to $11.3 billion in 2023.

The highest funding in May went to Flipkart's $350 million equity funding from Google, followed by SaaS firm Atlan's $105 million Series C round and healthtech startup NephroPlus's $102 million Series F round. Notably, TechnoSport and Libas raised their first funds (Series A) of $21 million and $18 million, respectively, despite being over a decade old, categorizing them as growth/late-stage deals.

Other top fundraisers included Annapurna Finance, Infra.Market, Battery Smart, GreenCell Mobility, Ather Energy, K12 Techno, and Propelld. In early-stage deals, agritech startup Superplum raised $15 million in Series A, leading the list, followed by UnifyApps with $11 million in seed funding.

Bengaluru-based startups led city-wise funding with 52 deals, accounting for around 60% of total funding in May. Delhi-NCR and Mumbai followed with 33 and 14 deals, respectively. E-commerce startups, including D2C brands, led sector-wise funding with 25 deals, followed by fintech with 20 deals. SaaS, agritech, and healthtech were also significant sectors.

In terms of funding stages, 47 startups raised seed and pre-seed funding, 19 secured Series A funding, 19 Pre-Series A, and 11 Series B deals. Debt-only funding amounted to $155 million, 11.6% of total venture funding. There were eight mergers and acquisitions in May, a slight decrease from April's nearly twelve. Notable acquisitions included Device42 by Freshworks for $230 million and UGRO Capital acquiring MyShubhLife for $5.3 million.

Layoffs significantly dropped in May compared to previous months. PrepLadder and Simpl laid off 145 and 100 employees, respectively. In contrast, April saw nearly 1,500 layoffs. However, the rise of AI could prompt more mass layoffs in the future, with Paytm and Ola Electric possibly joining the list. Additionally, several top-level executives, including CEOs of Freshworks and Caasha, left their positions in May.

There were two ESOP buybacks in May compared to three in April and four in March. Urban Company announced its largest ESOP buyback of 2024, valued at $24.4 million, while Meesho announced a $24 million buyback program in March. For detailed series-wise deals, fund launches, and more insights, visit TheKredible.