Indian Startups Funding Overview: $95 Million Raised This Week
This week, Indian startups attracted about $95 million in funding, comprising 5 growth-stage and 10 early-stage deals, while 2 companies opted not to disclose their funding amounts.
Growth-Stage Deals
In terms of growth and late-stage funding, the total reached $72.9 million. Smartworks, a proptech company preparing for an IPO, led the way with a pre-IPO round of $20 million. Education-focused NBFC Varthana followed suit, raising Rs 159 crore (approximately $18.5 million) in debt. The clean-label food brand Kehtika also secured $18 million in a Series B round, spearheaded by Narotam Sekhsaria Family Office and Anicut Capital. Additionally, fintech company Credit Wise Capital and Avis Hospital also attracted funding.
Early-Stage Deals
Ten early-stage startups collectively garnered around $22.11 million, with tech-enabled NBFC InPrime Finserv leading the charge by raising approximately $6 million in its Series A round, supported by Pravega Ventures. Other notable mentions include fintech startup Belong, microdrama OTT platform Chai Bisket, home service marketplace Clean Fanatics, and deeptech startup Green Aero. Conversely, cybersecurity startup LdotR and SaaS startup Monetize360 have raised funds without disclosing the exact amounts.
For a complete funding breakdown, various sources can provide more detail.
City and Segment-Wise Deals
Bengaluru-based startups dominated the funding landscape with 6 deals, followed by Delhi-NCR with 4 deals. Companies in Mumbai, Hyderabad, and other locations also secured funding.
Segment-wise, fintech startups reigned supreme with 4 deals. Deeptech and SaaS startups each recorded 2 deals, while sectors like proptech, foodtech, and OTT also saw activity this week.
Series-Wise Deals
Seed funding was the most prominent with 7 deals, while Series A and pre-Series A each secured 2 deals. Additionally, there were deals in pre-IPO, debt, and Series B funding rounds.
Week-on-Week Funding Trend
This week experienced a 67% decline in startup funding, amounting to $95 million, compared to approximately $290.28 million raised the previous week. The average funding over the last eight weeks stands at around $205.24 million, with 21 deals each week.
Key Hirings and Departures
This week featured significant appointments within various companies. CoinDCX, a cryptocurrency exchange, announced Amol Wanjari as the Head of Engineering and Sangeeth Aloysius as the Head of Product. Foodtech major Eternal, formerly known as Zomato, welcomed Aditya Mangla as the CEO of its core food delivery operations. Autodesk appointed Kamolika Gupta Peres as Vice President for its business in India and SAARC.
For more details, various sources can be consulted.
Mergers and Acquisitions
Workspace solution provider Incuspaze acquired VSKOUT, a B2B SaaS offering curated data analytics for the commercial real estate sector, as part of a strategic move to integrate advanced technologies. Additionally, Infinity Fincorp Solution, a non-bank lender in India, entered into a share purchase and subscription agreement with Partners Group, whereby Partners Group will acquire a significant majority stake in the company.
To view a breakdown of series-wise deals along with amounts, various sources can provide insights.
Fund Launches
IndiGo Ventures, the corporate venture capital arm of IndiGo, announced the first close of its inaugural fund at Rs 450 crore. Furthermore, IIT Madras is launching a Rs 200 crore VC fund aimed at supporting early-stage startups, specifically in the deeptech sector.
New Launches and Partnerships
Awfis is branching into the furniture business to explore new revenue streams and reduce costs. Flipkart Ventures has introduced Leap Ahead 4.0 to support early-stage startups. ClearTax launched a multilingual AI solution for filing income tax returns. PhysicsWallah partnered with YCMOU to offer UGC-compliant online degree programmes. Meanwhile, Flipkart collaborated with Pebble to unveil India’s first smart ring featuring digital displays and gesture controls. Dhruva Space formed a partnership with Pixxel, and Shaadi.com ventured into spiritual technology with the new launch of AstroChat.
Financial Results This Week
Redcliffe Labs reported revenue of Rs 419 crore for FY25, while narrowing EBITDA losses. Smartworks reported Rs 1,374 crore in revenue with Rs 62 crore in losses for FY25.
News Flash This Week
Pocket FM is seeking Rs 85.7 crore in damages from KuKu FM, with the rival asserting that the charges are motivated. PhonePe and Google Pay held a combined 82% market share in UPI transactions during June, while BHIM made a return to the top 10 after a prolonged absence. The Enforcement Directorate conducted raids on the opinion trading platform Probo, seizing assets worth Rs 284 crore. Groww maintained its lead over Zerodha and Angel One despite a decline in user numbers in June. A US court held Byju Raveendran in contempt for bypassing bankruptcy orders. LetsVenture has rebranded as LVX and expanded its focus to include growth-stage investment.
On a weekly basis, startup funding fell by 67% to $95 million, compared to around $290.28 million raised the previous week. The legal dispute between Pocket FM and Kuku FM progressed to the Delhi High Court, with Pocket FM suing Mebigo Labs for allegedly plagiarising five audio series and seeking Rs 85.7 crore in damages and a ban on their content and artwork.
India’s UPI network recorded 18.4 billion transactions worth Rs 24.04 lakh crore in June, experiencing a slight decrease compared to the previous month, according to NPCI data. Despite the dip, PhonePe and Google Pay maintained their leadership in the sector, together handling over 82% of UPI transactions by volume. The active user base in the Indian stock market decreased from 49.67 million in January to 47.89 million in June, although it had a 2% month-on-month rise in May. Groww retained its leading position with a 26.27% market share, despite a 1.67% reduction in users, bringing the total to 12.58 million in June, as per NSE data. The Enforcement Directorate also executed raids on opinion-trading platform Probo, seizing assets worth Rs 284.5 crore, with the company under investigation for alleged transgressions of gambling laws under the Prevention of Money Laundering Act.
