Indian Startups Funding Overview

During the week, Indian startups raised a total of $127.59 million. This amount includes 4 growth-stage and 18 early-stage funding rounds, while 2 startups opted not to disclose their funding details. By contrast, the previous week had seen 16 startups across both early and growth stages secure approximately $283.83 million.

Growth-Stage Funding

Growth-stage and late-stage funding this week amounted to $78.5 million, driven primarily by fintech deals. The round was led by Transbnk, a banking infrastructure platform, which raised $25 million in its Series B funding from Bessemer Venture Partners. Kiwi followed closely with a Series B round of $24 million. Altum Credo, a housing finance company, secured around $19.5 million (Rs 170 crore) from British International Investment, while CredRight, an NBFC focused on nano and micro enterprises, raised $10 million.

Early-Stage Funding

On the early-stage front, 18 startups collectively raised $42.34 million this week. WizCommerce, an AI-native sales and e-commerce platform, led the fundraising with an $8 million Series A round backed by Peak XV. Vutto, a used two-wheeler marketplace, secured $7 million in Series A funding from RTP Global and Blume Ventures. Other notable companies that received funding include demi-fine jewellery brand Palmonas, AI startup Enmovil, quick commerce platform Peeko focused on baby care, and maths-based mobile gaming platform Matiks, among others. The luxury leather handbag brand AKINNA and organic food products maker Samasta Foods also secured funding, though the amounts remain undisclosed. For a comprehensive funding breakdown, visit various sources.

City and Segment-Wise Funding Distribution

In terms of the geographical distribution of funding, Delhi-NCR-based startups led with 9 deals, while Bengaluru followed with 5 deals. Startups in Hyderabad, Mumbai, Pune, and other regions also secured funding. Segment-wise, e-commerce startups topped the list with 7 deals, followed by fintech startups with 5 deals. AI, foodtech, gaming, and other sectors also gained traction this week.

Funding Series Breakdown

This week, Seed funding took the lead with 6 deals, followed by Series A with 5 deals. Other rounds, including pre-seed and Series B, also featured in the funding landscape. For detailed insights into series-wise deals along with amount breakdowns, visit multiple sources.

Weekly Funding Trend

On a week-on-week basis, startup funding experienced a decline of 55%, totalling $127.59 million compared to around $283.83 million raised the week prior. The average funding over the last eight weeks is around $185.38 million, spread across approximately 23 deals weekly.

Key Appointments and Departures

Zypp Electric, an EV rental platform, has appointed Mukesh Singla as its Chief Financial Officer (CFO). Meanwhile, EaseMyTrip co-founder Prashant Pitti has resigned as Managing Director, with the board appointing Nishant Pitti as Chairman and MD. Treebo Hospitality Ventures has promoted Hardin Goyal to Founding Partner after ten years at the firm; he will maintain his role as Chief Commercial Officer alongside this new position. Varun Sridhar, the chief executive officer of Paytm Services, has stepped down after a five-year tenure. For more information, refer to various sources.

New Fund Launches

Elevation Capital is preparing to launch a new $400 million fund, expanding its focus from early-stage investments to supporting companies for the long term, including those expected to add value in public markets.

Mergers and Acquisitions

Uniphore, a conversational automation platform, has acquired Orby AI and plans to acquire Autonom8, thus bringing on board top AI talent from DeepMind and Google. The acquisition of Orby adds advanced research capabilities, while Autonom8 applies practical business applications for innovation in enterprise AI.

Business Shutdowns

Bengaluru-based BeepKart, a used two-wheeler marketplace, has ceased operations after nearly five years. This closure follows its exit from Chennai and a series of layoffs, while also winding down in Bengaluru. Despite plans to adopt an asset-light model, the company could not sustain itself. Additionally, FanCode, owned by Dream11 parent company Dream Sports, is shutting down its online sports merchandise business.

New Partnerships and Launches

Euler Motors is expanding into the commercial passenger vehicle segment. WinZO is diversifying into micro dramas and is entering the US market following the RMG ban. WoodenStreet is partnering with Unicommerce to enhance its e-commerce operations, and PhonePe has launched a new home insurance offering. Unity Bank and BharatPe are set to introduce an EMI-driven credit card.

Financial Results This Week

Wellbeing Nutrition reports Rs 170 crore in revenue for FY25, with retail contributing 25%. Aye Finance’s profit has halved in Q1 FY26, although revenue increased by 21%. Square Yards announced Rs 378 crore revenue in Q1 FY26 and turned EBITDA positive. BigHaat has crossed Rs 1,100 crore in revenue in FY25 and achieved EBITDA profitability. Physicswallah’s revenue surpassed Rs 3,000 crore in FY25, with an 80% reduction in losses.

News Highlights

Groww has received SEBI approval for its IPO. A23, the parent company of A23’s rummy and poker platform, has filed a legal challenge against Karnataka’s new online gaming law, becoming the first to do so. The blanket ban on real-money gaming has caused disruptions for payment processors, with Yes Bank being significantly affected. BNP Paribas has partnered with Eternal to divest its stake in Swiggy. Gameskraft and Dream11 have opted against contesting the government’s Gaming Bill. The Delhi Government has proposed a Rs 200 crore VC fund as part of the draft startup policy for 2025.

Startup funding this week saw a 55% decline, totalling $127.59 million compared to $283.83 million in the previous week. A23 (Head Digital Works) is the first to challenge the newly enacted Promotion and Regulation of Online Gaming Law, 2025, by filing a petition with the High Court. In related news, Groww is set to launch its IPO, estimated to be worth between $800 million and $1 billion, as per a Moneycontrol report. WinZO is diversifying its offerings beyond real-money gaming by venturing into micro-dramas and subscription services in response to the government’s blanket ban on RMG in India.