Ride hailing platform Rapido's $240 million primary funding deal lifted venture capital momentum into Indian startups in the second week of May.

Single large transactions lifting overall funding in the startup ecosystem has emerged as a trend in the last few weeks, reflecting the challenges faced by companies in raising capital.

The total VC funding amount raised during the week came in at $323 million from 22 transactions. In contrast, the previous week saw a total amount of $129 million.

During this week, the investments were spread across stages and sectors. Funding was raised by startups representing segments such as ride hailing, semiconductor, agritech, fintech etc. Also, the funding was thinly spread across stages.

However, the room for optimism seems to be at a lower level in terms of VC inflow into Indian startups. This is primarily due to the deteriorating global macroeconomic environment which is impacting the flow of money.

The hope is that the second half of the year would see a modest revival of VC money into the Indian startup ecosystem.

Key transactions

Ride-hailing platform Rapido raised $240 million from Prosus, WestBridge Capital, Accel, and others.

Fabless semiconductor startup HrdWyr raised $13 million from Ideaspring Capital, Singularity AMC, Avatar Growth Capital, and Persistent Systems.