Indian Startups Funding Update: Key Highlights

This week, Indian startups made significant strides by securing $95.54 million through a mix of funding rounds including 4 growth-stage deals and 5 early-stage deals, while 3 startups opted to keep their funding amounts undisclosed. In comparison, the previous week saw a total of approximately $363.9 million being raised across 31 startups.

Growth-stage Deals

Growth and late-stage funding reached $73 million this week. The leading contributor was CoreEL Technologies, which raised $30 million in a Series B funding round facilitated by ValueQuest Scale Fund, with participation from 360 ONE Asset. Dugar Finance followed closely with $18 million in debt funding, spearheaded by Switzerland-based Symbiotics alongside several Indian banks. PlasmaGen Biosciences garnered Rs 150 crore, driven by support from ViNS Bioproducts, as well as involvement from high-net-worth individuals, family offices, pharmaceutical entrepreneurs, and existing investors. The quick-service restaurant chain Wow! Momo also secured Rs 75 crore from Singularity AMC.

Early-stage Deals

Focusing on early-stage funding, startups in this category raised approximately $22.5 million across five deals this week. PowerUp Money led with a Series A round that secured $12 million from Peak XV Partners. Other participants in the funding rounds included Prosperr.io, Naxatra Labs, LokSuvidha Finance, and Entuple E-Mobility. Additionally, the home decor solutions brand MagicDecor, along with the D2C nutrition and wellness brand Supply6 and deeptech startup Quintrans, also acquired funding, though the specifics were not disclosed.

City and Segment-wise Deals

According to city-wise deal counts, Bengaluru continued to lead with 6 deals, while Chennai, Ahmedabad, Nagpur, Mumbai, and Pune each recorded one deal. Segment-wise, fintech startups took the lead with 3 deals, followed by deeptech startups with 2. Other sectors, including foodtech, AI, spacetech, biotech, mobility, decor, and e-commerce, also secured funding during this time.

Series-wise Deals

In the context of funding rounds, seed rounds dominated this week with 4 deals. Series A and Series D both saw 2 deals each, while Series F and pre-Series B funding also received attention. For a more detailed breakdown of series-wise deals and their amounts, sources can be explored.

Week-on-week Funding Trend

In a week-on-week analysis, startup funding experienced a 74% decrease to $95.54 million, significantly lower than the approximately $363.9 million accumulated the previous week. Over the last eight weeks, the average funding has been around $243.39 million, spread across 25 deals weekly.

Fund Launches

Anicut Capital successfully closed its Grand Anicut Fund IV at Rs 1,275 crore ($142 million), exceeding its target of Rs 1,000 crore. This fund aims to support startups in various sectors including consumer goods, engineering services, SaaS, manufacturing, and hospitality. Additionally, Nikhil Kamath and Kishore Biyani have unveiled The Foundery, a business launchpad focusing on identifying and nurturing early-stage Indian startups.

Mergers and Acquisitions

Brainbees Solutions, the parent company of FirstCry, has made headlines by acquiring K.A. Enterprises (Hygiene) through its subsidiary Swara Baby, thereby expanding its footprint in the hygiene product domain. Cautio, a visual telematics startup, has acquired BYTES, an AI-driven automotive startup dedicated to two-wheeler ADAS, enhancing its two-wheeler safety solutions. Livspace, an omnichannel home interior and renovation platform, has procured Mumbai-based LED lighting solutions provider Abby Lighting through a cash and stock transaction.

ESOP Buybacks

Investment platform Dhan has carried out an ESOP buyback worth nearly Rs 50 crore, providing liquidity for about 180 employees within the company.

Layoffs

Yellow.ai, a conversational AI startup based in Bengaluru, has recently laid off over 100 employees, affecting nearly 30% of its workforce, as it transitions towards increased AI-driven automation.

New Launches and Partnerships

The Marwari Catalysts Group has introduced Thrive 10.0, aimed at supporting DefenceTech and AgriTech startups in India. In collaboration with IIMA Ventures, NUCFDC has launched Bharat COOPATHON 2025. Weskill has unveiled Wena AI, a fully autonomous education system developed in India.

Financial Results This Week

Farmley is closing in on Rs 400 crore in revenue for FY25, while losses are reportedly under control. VLCC-owned Ustraa witnessed a decline in revenue to Rs 73 crore for FY25, although it has managed to cut losses by 72%. Foxtale’s revenue for FY25 is nearing Rs 200 crore, yet losses have increased by 38%. Kuku FM states a revenue of Rs 242 crore in FY25, with Rs 285 crore spent on marketing. Atomberg has reduced losses by 41% in FY25 following significant cuts in employee costs. Medibuddy has reported Rs 725 crore revenue in FY25, while losses were narrowed by 37%. The spice brand Zoff surpassed Rs 100 crore in revenue for FY25 but has slipped into losses.

News Flash This Week

This week has witnessed various developments, including how Indian startups navigated enforcement actions from the ED in 2025. Zepto’s board has approved a Rs 11,000 crore raise prior to a confidential IPO filing. The RBI has shown adaptability regarding fintech payment licence clearances in 2025, while PhonePe gained market share in November, contrasting with a slight dip for Google Pay. PayNearby has obtained NPCI’s TPAP licence and is looking to extend UPI access across Bharat.

Summary

This week, startup funding saw a significant drop to $95.54 million from around $363.9 million the prior week. Furthermore, UPI transactions recorded 20.47 billion activities valued at Rs 26.32 lakh crore in November, with PhonePe processing 9.33 billion transactions, making up 45.6% of the total volume and 48.5% of the total value. Quick commerce firm Zepto is advancing towards public markets after its board sanctioned a plan to raise up to Rs 11,000 crore via a new equity issuance and an offer for sale as it prepares for a draft red herring prospectus filing. NUCFDC has launched Bharat COOPATHON 2025 in collaboration with IIMA Ventures, while the Marwari Catalysts Group has rolled out Thrive 10.0, focusing on DefenceTech and AgriTech startups from Tier II and III cities. Weskill has introduced Wena AI, described as India’s first fully autonomous educational system, expected to launch on December 25, 2025, to tackle challenges related to scalability, access, and consistency in educational delivery.