Indian Startups Secure $283 Million in Funding

This week, Indian startups raised a remarkable $283.33 million, consisting of 5 growth-stage and 9 early-stage investments, along with 2 undisclosed funding rounds. In contrast, the previous week saw approximately $340.55 million raised by 29 startups across both early and growth stages.

Growth-Stage Funding Highlights

This week, growth and late-stage funding totaled $271.7 million. Weaver Services, a tech-focused housing finance platform, led this front by securing $170 million from Lightspeed and Premji Invest. Following closely was Amnex Technologies, an AI company that raised $52 million, and D2C baby products brand R for Rabbit, which received $27 million in its Series B round led by Filter Capital. Other notable participants included Goldi Solar, a solar PV module manufacturer, and Stanza Living, a managed accommodation provider that also completed funding rounds this week.

Early-Stage Funding Developments

On the early-stage side, nine startups collectively attracted $12.13 million in funding this week. A smart kitchen appliance company took the lead with a $4 million Series A round backed by Fireside Ventures. Other startups included the MS Dhoni-endorsed House of Biryan, FMCG startup Mitra, biotech venture PeelOn, AI platform Edgehax, and wearable devices startup Aether MindTech. Conversational AI startup CoRover and the nutrition brand Ace Blend also raised funds but opted not to disclose their amounts.

City and Segment-Specific Deals

Bengaluru emerged as the front-runner for funding deals with 6 arrangements, whereas Mumbai followed with 3. Startups in Ahmedabad, Delhi-NCR, and Surat also secured funding.

In terms of sectors, AI and foodtech startups were the leading sectors, each completing 3 deals. The e-commerce segment accounted for 2 deals, while fintech, solar-tech, hospitality, and other sectors also participated actively this week.

Funding Series Breakdown

In terms of funding series, Seed funding led with 7 deals, while Series A achieved 4 deals. Pre-Series A, Series B, and debt funding also recorded successes. Various sources can provide further insights into the distribution by series and the respective amounts involved.

Funding Trend Analysis

On a week-by-week basis, startup funding experienced a drop of 16.6% to $283.83 million, compared to approximately $340.55 million raised last week. Looking back over the past eight weeks, the average funding remains around $205.71 million, with an average of 24 deals per week.

Key Leadership Changes

This week saw several significant leadership appointments within the startup ecosystem. ShareChat welcomed Neha Markanda, previously Google’s head of industry and e-commerce, as chief business officer for both ShareChat and Moj. Astrotalk appointed Deepak Khetan as CFO as the astrology startup gears up for an upcoming IPO. Additionally, IAN Group appointed Chintan Thakkar as Group CEO, while BharatPe expanded its leadership structure with Rajesh C as Head of Finance and Himanshu Nazkani as Head of Investments. Urban mobility company Cityflo also announced the appointment of Colonel Suresh Babu A B (Retd) as its director of operations.

Fund Launch Activities

This week also featured six new fund launches. Natasha Malpani, a former Kae Capital partner, launched Boundless Ventures, an early-stage fund valued at Rs 200 Cr to support AI-native startups in India. PixelSky Capital, a fund focusing on secondaries, has successfully raised ₹150 Cr in its first close, aiming for a Rs 400 Cr corpus. Marwari Catalysts (MCats), an accelerator based in Jodhpur, plans to establish a Rs 4,000 Cr ($500 Mn) impact-focused portfolio by 2027, alongside its expansion efforts into Dubai and Singapore.

Notable New Initiatives and Collaborations

CRED is set to introduce a co-branded credit card with IndusInd Bank. Apna has launched an AI Calling Agent designed to cut hiring time effectively. Recur Club has partnered with Enrission India Capital to enhance capital access for startups, while Swiggy and Bounce are collaborating to promote EV adoption among delivery partners. Shiprocket has launched RevProtect to assist MSMEs in reducing revenue losses resulting from RTOs.

Weekly Financial Outcomes

Kissht reported a revenue of Rs 1,337 Cr for FY25, accompanied by a profit of Rs 161 Cr. Biryani Blues noted over a 30% decrease in losses during 11 months of FY25. Garuda Aerospace achieved a profit of Rs 17.5 Cr for FY25, with total revenue reaching Rs 118 Cr.

Key Recent Developments

Gameskraft, My11Circle, MPL, Probo, and Zupee have ceased operations in real money gaming. Dream11 is set to disband its core real-money gaming division, while the Karnataka High Court has ordered the government to decide on a bike taxi policy within a month. The government has introduced the Gaming Bill in the Lok Sabha, leading to a blanket ban on all real-money games, including fantasy sports and poker. Kissht has filed for DRHP to raise Rs 1,000 Cr through a new issue.