Startup Funding Update: $361.5 Million Raised This Week

During the past week, startup funding saw a noteworthy increase, with 21 Indian startups securing a total of $361.5 million. This included 6 growth-stage and 13 early-stage financing deals, while 2 startups opted to keep their funding details undisclosed. In contrast, the prior week had seen 26 startups across various stages of growth garner approximately $329 million.

Growth-Stage Deals

Funding for growth-stage startups reached $320 million this week, spearheaded by healthtech company Pharmeasy, which secured Rs 1,700 crore (approximately $193 million) in a debt financing round from 360 One. Following this, fintech platform Finbox and InCred Money, which is part of the InCred Group, raised Rs 250 crore (around $30 million). Sustainable home essentials brand Ecosoul and consumer electronics firm Indkal Technologies each raised $20 million, while foodtech unicorn Rebel Foods secured $17 million in debt from Alteria Capital and InnoVen Capital.

Early-Stage Deals

On the early-stage front, 13 startups collectively raised $41.55 million this week. SaaS company Scalekit and lab-grown diamond jewellery brand Lucira emerged as leaders, each securing $5.5 million. Following them were fintech venture Pelocal and deeptech startup SpaceFields, which raised $5 million each. Other funded entities included IT product firm BeyondSquare, consumer electronics manufacturer iDO Devices, and AI-focused fintech startup Pascal AI Labs. Electric motorcycle producer Raptee and education AI venture CrazyGoldFish also obtained funding this week, the amounts of which remain undisclosed.

City and Segment-Wise Deals

In terms of city-wise deal count, Bengaluru-based startups led with 11 deals, while Mumbai accounted for 5, topping the list in total funding raised. Delhi-NCR, Kamrej, and Chennai also witnessed deal closures this week. Segment-wise, fintech and e-commerce startups dominated, each with 4 deals. Other sectors such as consumer electronics, deeptech, healthtech, and foodtech also secured funding.

Series-Wise Deals

Seed funding attracted the most interest this week, comprising 8 deals, followed closely by Series B funding. Series A, debt, and other funding stages also observed significant activity. Additional details regarding series-wise funding and amounts can be found in various sources.

Week-on-Week Funding Trend

Compared to the previous week, startup funding saw a 10% increase, rising to $361.55 million from approximately $329 million. The average funding over the last eight weeks is roughly $265.8 million, with an average of 24 deals per week.

Key Hirings and Departures

Only three significant appointments were announced this week. Databricks, a data and AI firm, appointed Kamalkanth Tummala as Country Manager for India. Polygon Labs brought on John Egan, previously the Head of Crypto at Stripe, as their inaugural Chief Product Officer. Additionally, Blyp (formerly ParkMate) enlisted Rannvijay Singha to enhance brand engagement with the youth.

Mergers and Acquisitions

PayU, which is the payments and fintech arm of Prosus, raised its stake in Mindgate Solutions to 70%, thus becoming the majority shareholder. Founders George Sam and Guhan Muthuswamy will retain the remaining 30% and continue to oversee operations.

Fund Launches

Private equity firm Singularity AMC has successfully closed its second fund, Singularity Growth Opportunities Fund II, with Rs 2,000 crore (about $235 million) earmarked for growth-stage and pre-IPO startups. The International Finance Corporation (IFC), part of the World Bank Group, plans to invest up to $25 million in Trifecta Capital’s fourth venture debt fund.

Layoffs

Gameskraft, a prominent player in India’s real-money gaming industry, is reported to have laid off approximately 120 employees as part of a restructuring effort due to the government’s blanket ban on online money games.

Shutdown

MyPickup, a subscription-based electric mobility startup backed by Inflection Point Ventures (IPV), has ceased operations after three years, citing difficulties in achieving product-market fit and limited access to patient capital.

New Launches and Partnerships

CRED has introduced a RuPay credit card in collaboration with IndusInd Bank. Hoi partnered with EaseMyTrip to initiate a rewards programme for airports. CARS24 has teamed up with ElevenLabs and Google Cloud to introduce voice AI into the used car market. PRISM has launched CheckIn, integrating OYO’s hospitality brands under a new premium collection.

Financial Results This Week

SilverPush’s growth has stagnated in FY25, resulting in a loss of Rs 18 crore. Walmart India managed to reduce its losses to Rs 110 crore amidst modest revenue growth. Edtech unicorn LEAD managed to cut losses by 70%, though its revenue remains stagnant. Jar reported Rs 208 crore in operating revenue for FY25 and became profitable in the second half.

News Flash This Week

CRED, PhonePe, and Paytm have halted rent payments via credit cards, responding to the Reserve Bank of India’s latest payment aggregator regulations. Urban Company saw a successful stock market debut, listing at Rs 162.25 per share on the NSE, which is a 57.5% premium over its issue price of Rs 103. Bengaluru-based Gameskraft Technologies is facing scrutiny after allegations that its former CFO siphoned Rs 250 crore for personal trading in the futures and options market. CRED has expanded its financial services by launching a RuPay co-branded credit card with IndusInd Bank, alongside the introduction of Sovereign, a select membership society featuring an 18K gold credential. PRISM has rolled out CheckIn, aiming to unify OYO’s premium value hotel brands, boasting over 1,300 properties across India as part of its largest chain initiative.