Indian Startups Fundraising Overview

Indian startups have raised $158.8 million this week, comprising 3 growth-stage deals, 18 early-stage funding rounds, and 3 undisclosed amounts. In comparison, the previous week saw 18 startups collectively raise approximately $187.21 million.

Growth-Stage Deals

This week, growth-stage startups amassed $120 million through three funding rounds. Leading the charge was spacetech company Skyroot Aerospace, which secured $60 million in a round co-led by Sherpalo Ventures and GIC, marking its entry into the unicorn club. Following closely was Pronto, an instant household services startup, which extended its Series B funding to $45 million with an additional $20 million from Lachy Groom. Climate-focused NBFC Ecofy also raised $15 million in debt financing from Mirova.

Early-Stage Deals

Early-stage startups raised $38.3 million across 18 deals this week. Notably, BigEndian Semiconductors, a fabless semiconductor startup, raised $6 million in a pre-Series A funding round led by IAN Alpha Fund. Skincare brand CHOSEN followed with $5 million from Fireside Ventures in its Series A funding round. AI solutions provider Tsavorite secured $5 million in a Series A funding round led by Pavestone. Meanwhile, Aurm, a bank locker infrastructure startup, raised Rs 42 crore in a seed funding round co-led by Earth Fund and Sattva Ventures, along with contributions from several angel investors. Additionally, brands like Kisah, Antier Solutions, Jurisphere, and HealthFab also benefited from funding this week.

City and Segment Wise Deals

Bengaluru led the deal count with 14 transactions, followed by Delhi-NCR with 4. Mumbai and Chennai recorded two deals each, while Hyderabad and Mohali also saw funding activities. Segment-wise, e-commerce startups dominated with 5 deals, while AI and SaaS startups each had 4 deals. Fintech, health tech, and other sectors also witnessed funding during this period.

Series Wise Deals

The week saw pre-seed rounds as the most active, with seven deals, followed by six seed deals and four Series A transactions. There were also activities in Series B, Series C, debt, pre-Series A, and angel rounds.

Funding Trend

Weekly startup funding experienced a decline of over 15% to $158.8 million compared to the previous week’s $187.21 million, with an average funding of about $229.16 million over the past eight weeks, comprising 23 deals each week.

Key Hirings and Departures

This week witnessed significant leadership changes. Healthy food brand Epigamia appointed Ritesh Gauba as CEO and elevated Ankur Goel to co-founder and COO. Edtech platform Codingal appointed Praveen Kumar as VP of Operations to oversee teacher management and customer experience. Meanwhile, 35North Ventures’ India Growth Fund announced Naman Bagri as Managing Partner. AI-platform DecisionX appointed Shantha Maheswari Sekhar, a former MD at Accenture, as Strategic Advisor for GTM and Industry Relations. Lastly, Fashinza’s co-founder and former CEO Pawan Gupta departed from the company, and Sudipto Sannigrahi of Z47 has reportedly stepped down from his post at the venture capital firm.

Layoffs

Freshworks announced the layoff of approximately 500 employees, accounting for 11% of its global workforce, in response to restructuring during the rapid rise of AI in the software sector. In addition, Apna Mart, backed by Accel and Peak XV, has reduced its workforce by around 10% in its initial round of layoffs. Audio platform Pocket FM also conducted a new round of layoffs, affecting nearly 10% of its workforce, which includes around 100 to 130 employees.

Mergers and Acquisitions

InMobi has acquired MobileAction, an AI-powered app analytics platform, to enhance its global advertising operations. Meanwhile, Reliance and SoftBank-backed Netradyne have taken over Moove Connected Mobility to further their European market expansion. Fintech startup Freo has fully acquired IndiaLends, and FMCG leader Emami Ltd has signed an agreement to buy a 60% stake in IncNut Digital for Rs 321 crore.

New Launches and Partnerships

Amazon has opened its logistics network for third-party businesses. Finvasia has introduced AI finance assistant jAI on jUMPP in collaboration with YES Bank. Even Healthcare has gained IRDAI approval to launch retail health insurance products. PhonePe has unveiled an AI-powered integration layer to streamline payment gateway onboarding for merchants.

News Highlights This Week

Tencent sold a 1.05% stake in PB Fintech for Rs 805 crore through a block deal. The Enforcement Directorate (ED) arrested the co-founders of Gameskraft in connection with a money laundering investigation. Additionally, Kissht made its market debut at a premium of 12% over its IPO price. Ola Consumer has started IPO processes despite a decline in revenue. NPCI has set new MCC for UPI Gift Cards, limiting transactions to Rs 10,000. InCred has filed an updated DRHP with plans for a Rs 1,250 crore issue.

On a weekly basis, startup funding saw a nearly 64% decrease to just $47 million compared to about $129 million from the previous week. Tencent recently divested a 1.05% stake in PB Fintech for Rs 805 crore at Rs 1,664 per share. The ED’s recent arrests are linked to the ongoing investigations into Gameskraft. Ola Consumer is also making moves towards its IPO, while Even Healthcare has received approval for retail health policies, marking a significant shift toward direct offerings.