Venture funding for Indian startups demonstrated a recovery in August, following a significant 38% decline in July. Although the total funding remained below the $1 billion threshold, the resurgence was primarily attributed to late-stage and growth-stage investments. The fintech sector emerged as the leading recipient of funds, succeeded by e-commerce and healthtech, while areas such as agritech and edtech continued to experience minimal activity. Simultaneously, the government’s regulatory actions against gaming companies have resulted in shutdowns, compelling several firms to shift their business models, placing this sector in a precarious situation. According to various data sources, Indian startups raised $961 million through 100 transactions in August. Of this, growth and late-stage funding totalled $733 million from 24 deals, with early-stage funding contributing $228 million through 68 deals. Additionally, 8 funding rounds remain undisclosed.
[M-o-M and Y-o-Y trend]January was the most funded month of 2025, with $1.76 billion raised. Since then, the total funding has surpassed the $1 billion mark only twice (in March and May), while August’s $961 million stands as the fourth highest for 2025. In comparison to previous years, August 2025 ranked second in the past five years. The lowest funding during August was in 2023, when it fell to $459 million.
[Top 10 growth-stage deals]The top 10 growth and late-stage deals generated approximately $558 million in August. Weaver Services led with $170 million for housing finance, followed by Truemeds with $85 million for e-pharmacy and telehealth services. Other notable investments include The Sleep Company at $56 million, Amnex Technologies at $52 million, and Zepto at $46 million. Additionally, Darwinbox raised $40 million, while RENÉE Cosmetics and R for Rabbit secured $30 million and $27 million respectively. Fintech firms Fibe and TransBnk rounded out the list with $26.5 million and $25 million.
[Top 10 early-stage deals]Early-stage startups amassed nearly $101 million across the top 10 deals in August. Healthtech startup Arintra led with a $21 million Series A round for its medical coding platform. The entertainment venture Dashverse earned $13 million, with Jeh Aerospace and home services marketplace Pronto receiving $11 million each. AI ventures Graas AI and WizCommerce raised $9 million and $8 million respectively. Vutto, DPDzero, and Brandworks Technologies each garnered $7 million, while Refold AI concluded the list with $6.5 million in seed funding.
[Mergers and acquisitions]The month also witnessed several noteworthy acquisitions in the fintech, healthtech, and automation sectors. Visa platform StampMyVisa acquired travel tech firm Teleport, while fintech player Niyo took over Kanji Forex. Debt recovery platform Credgenics expanded by acquiring Arrise. In healthtech, dentaltech startup MakeO acquired Apple Dental. Conversational automation company Uniphore enhanced its offerings by obtaining US-based Orby AI Inc.
[City and Segment Wise Deals]Mumbai led the funding landscape in August, amassing $410.67 million across 15 deals, contributing nearly 43% of the total inflow. Bengaluru followed with $178.16 million raised through 35 transactions, while Delhi-NCR recorded $74.62 million through 21 deals. Pune and Hyderabad contributed $74.7 million and $66.95 million respectively, collectively comprising close to 15% of the overall funding. The fintech sector dominated August funding with $314.41 million across 14 deals, representing nearly 33% of the total. E-commerce secured $195.68 million from 18 transactions, accounting for over 20%. AI startups attracted $96.51 million across 13 deals. Deeptech and foodtech lagged behind with $8.10 million and $6 million respectively, contributing less than 2% of the overall funding, while healthtech raised over $106 million from only 3 deals, representing 11% of total funding.
[Series-wise deals]August saw Series A rounds lead funding with $202.10 million from 22 transactions, comprising over 21% of total inflow. Series B followed with $157.60 million across 10 deals. Seed and pre-seed startups collectively raised $60.96 million, while pre-Series A deals contributed $19.03 million.
[Layoffs, shutdowns, departures, and key hires]While official records show only one layoff in Indian startups, unreported layoffs have been noted among gaming companies. Following the enactment of the Promotion and Regulation of Online Gaming Act, several gaming firms terminated their real money gaming operations, prompting some to pivot or explore new avenues. Moreover, although only two official layoffs have been declared, more are anticipated. In August, the startup ecosystem saw only a few departures. Concurrently, over 28 key executive roles were filled, indicating a wave of transformation. For a detailed review of these changes, click here.
[Trends]Job loss from RMG Ban: The effects of real money gaming platform closures may exceed initial expectations. Reports indicate India had approximately 400 RMG startups that generated nearly $2.3 billion in yearly taxes and provided jobs for over 200,000 individuals. Rise of microdrama apps: Micro-drama applications are gaining traction in India, delivering bite-sized 1–2-minute stories for mobile users. WinZO recently entered this market with ZO TV, joining other competitors like Flick TV, Kuku FM’s Kuku TV, ShareChat’s QuickTV, Reel Saga, Reelies, Chai Bisket’s Chai Shots, and Eloelo. TikTok hiring fuels comeback talk: Speculation about a potential return of TikTok in India has emerged after ByteDance advertised job openings for its Gurugram office, and the platform’s website became partly accessible to some users. However, the government has reportedly reaffirmed that the ban persists, and no unblocking orders have been issued. TikTok remains unavailable for download or use in India. Uber CEO praises Rapido: Uber CEO Dara Khosrowshahi has identified Rapido as a more formidable rival than Ola in India, noting that while Ola was previously Uber’s main competitor, it has slipped to a “distant third” as Rapido has made significant strides. PhysicsWallah eyes IPO amid edtech slowdown: PhysicsWallah has obtained SEBI’s approval to file its DRHP and aims to raise around Rs 4,500 crore through an initial public offering. This could value the company between Rs 35,000 and 40,000 crore, coinciding with a time when the edtech sector faces challenges, as no funding deals were reported in August.