This funding figure represents an alarming 80% decrease from the previous week, which had seen $299 million in funding, and it marks the fourth time in 2024 that weekly VC funding has dipped below $100 million.

Currently, the average weekly VC funding fluctuates between $100 million and $200 million, highlighting a stark contrast to the funding boom experienced in 2021 and early 2022.

Adding to the challenges, the bike taxi sector has faced setbacks due to a ban in Karnataka, which compounds the regulatory hurdles for mobility startups already struggling with high operational costs.

Despite the overall funding slowdown, there have been notable positive developments, such as CLR Facility Services raising $15 million, Oben Electric securing approximately $11.5 million, Techfino attracting about $7.4 million, and Okinawa Autotec raising around $6.9 million, indicating continued investor interest in specific sectors.

Moreover, Urban Company has achieved profitability, enhancing its IPO prospects, while Meesho's decision to relocate its headquarters back to India signals a strong commitment to the local market.

The Indian startup ecosystem is currently facing a significant funding downturn, with venture capital inflows dropping to just $56 million across 12 deals in the third week of June 2024, marking one of the lowest funding weeks of the year.

The global macroeconomic environment, characterized by inflation, rising interest rates, and geopolitical uncertainties, has made institutional investors more risk-averse, further impacting the availability of funding for startups.

As a result, the long-term outlook suggests that Indian startups may endure a prolonged funding slump, compelling them to prioritize sustainable business models over rapid scaling, potentially leading to a market correction that favors resilient businesses.