Startup Funding Trends in India

Startup funding in India reached an impressive $310.72 million this week, with 36 startups securing investments including 6 in growth stages and 27 at early stages. Additionally, 3 startups opted not to disclose their funding amounts. This marks a significant increase from the previous week’s total of approximately $206.89 million gathered by 17 startups.

Growth-Stage Investments

In the growth and late-stage category, a total of $219.2 million was raised across five substantial deals. Raise Financial Services, which runs the stockbroking platform Dhan, led this surge with a $120 million funding round backed by Hornbill Capital, officially entering unicorn territory. Intangles also saw success, raising $30 million in a Series B round from Avataar Venture Partners. Meanwhile, Singapore’s Qapita attracted $26.5 million from US-based Charles Schwab Corporation. Additional noteworthy deals involved Hunger Inc, along with RuskMedia and FableStreet.

Early-Stage Investments

On the early-stage front, 27 startups gathered around $91.5 million this week. Leading the way was blockchain startup KGeN, which raised $13.5 million with contributions from Prosus, Accel, and Jump Crypto. Other key players included Ekkaa Electronics, Pantherun Technologies, GreyLabs AI, and FMCG brand Meolaa. Consumer engagement platform Trozo and a D2C flame-free home fragrance brand also secured undisclosed funding amounts this week.

City and Segment Analysis

Looking at the breakdown by city, Bengaluru topped the chart with 18 deals, followed by Delhi-NCR with 10. Pune, Mumbai, and Hyderabad also saw notable activity. From a segment perspective, AI and e-commerce led with five deals each, closely followed by fintech and healthtech, each recording three deals. Other sectors such as SaaS, deeptech, and electric vehicles also received investments during this timeframe.

Series-wise Breakdown

This week, seed rounds dominated with a total of 14 deals, followed by Series A and pre-seed rounds with 6 deals each. Series B and pre-Series A rounds also saw notable participation. For further insights into series-specific funding details, various sources are available for review.

Weekly Funding Trend

Comparing week-on-week figures, startup funding surged 50% to $310.72 million, up from approximately $206.89 million observed the previous week. The average funding over the last eight weeks stands at around $275.11 million with an average of 25 deals each week.

Key Appointments

This week featured two significant key hirings. Sneha Arora was appointed as Chief Human Resources Officer (CHRO) of quick commerce leader Zepto, while SaaS firm Wingify welcomed Aarthi Ramamurthy to its board, focusing on AI-led strategizing. For additional information, check various sources.

Latest Fund Launches

Graphcore, a UK-based AI chipmaker supported by SoftBank, is set to invest £1 billion ($1.3 billion) in India over the next decade, establishing its inaugural AI engineering campus in Bengaluru and creating 500 jobs in the semiconductor field. Theia Ventures announced the closure of the first $15 million of its $30 million Fund I, focusing on deeptech and energy transition. Aavishkaar Group introduced OneAavishkaar to assist new venture funds and has partnered with Jamwant Ventures to unveil a Rs 500 crore defence and deeptech-focused fund.

Mergers and Acquisitions

Investment platform Groww has successfully acquired Bengaluru-based wealth tech startup Fisdom after receiving approval from SEBI. This acquisition is expected to enhance Groww’s wealth management services and lessen its reliance on market-driven trading revenues prior to its anticipated public offering.

Startup Shutdowns

Fintech startup Niro has ceased operations after four and a half years, as founder Aditya Kumar announced. The company had previously raised around $20 million from investors, including Elevar Equity and GMO Venture Partners.

ESOP Buyback Initiatives

InsuranceDekho, a prominent insurtech player, has launched its first Employee Stock Ownership Plan (ESOP) liquidity programme worth $2 million, allowing employees to partially cash in on their vested stock options. About 150 employees participated, benefiting financially while maintaining equity in the company. The firm aims to broaden this initiative with new grants as it grows.

New Launches and Collaborations

The week also saw several significant developments, including the RBI’s introduction of an offline Central Bank Digital Currency (CBDC) allowing payments without internet, a partnership between Razorpay, NPCI, and OpenAI to launch agentic payments, and PayU and Mindgate’s rollout of the UPI NXT Stack for enhanced real-time transactions. Other notable launches included Zenalyst’s AI Finance Workforce, Jayant Jha’s smartphone subscription platform BytePe, and Flipkart partnering with Pine Labs to launch a digital commuting card.

Financial Results This Week

This week, Info Edge reported revenues of Rs 729 Crore for Q2 FY26. Neobank unicorn Open revealed Rs 46 Crore revenue in FY25, while outstanding losses increased to Rs 1,921 Crore. Various companies, including Tractor Junction and Cashfree, also reported significant revenues, while others like Amazon Pay India faced challenging growth in FY25.

News Flash This Week

Prosus is set to acquire a 10.1% stake in ixigo for Rs 1,296 Crore. Additionally, Zappfresh’s IPO listed at a 20% premium, while lending startup Niro has ceased its operations. PedalStart’s Hustlers’ Mela 3.0 secured over $550,000 in investments, and Wakefit received SEBI approval for its IPO. Pay10 has engaged Virat Kohli and Anushka Sharma as its global brand ambassadors for upcoming campaigns.

Funding Summary

This week’s significant funding surge of 50% brought the total to $310.72 million compared to the prior week. Le Travenues Technology, which owns ixigo, approved a Rs 1,295.56 crore ($146 million) investment from Prosus, securing a 10.1% stake. Zappfresh made a strong debut with shares listing at Rs 120, and the new Flipkart Bharat Yatra Card aims to revolutionise public transport payments while promoting hassle-free travel. PedalStart’s Hustlers’ Mela 3.0 attracted over $550,000 for promising startups, enhancing long-term collaborations within India’s startup sector. Meanwhile, digital payments company Pay10 has appointed two prominent figures as its brand ambassadors to boost its forthcoming presence in the market.