This week, Indian startups raised $188.49 million through two growth-stage deals, twelve early-stage investments, and three undisclosed funding rounds. Notably, there were two significant appointments, a fund launch, and one merger and acquisition. This funding marked a considerable increase, as 17 startups had gathered approximately $61.8 million the preceding week.
Growth-stage Deals
Growth-stage startups collected $162 million through just two transactions this week. The electric mobility company Ultraviolette clinched $85 million in a funding round led by Yali Capital and TDK Ventures, with additional participation from Walden International chairman Lip-Bu Tan and current investors. The enterprise AI company Ema acquired the remaining $77 million in a Series B round led by Creaegis. Ema was established by Surojit Chatterjee, previously a senior executive at Google and Coinbase.
Early-stage Deals
Early-stage startups sourced $26.49 million across twelve transactions this week. The Indian entity of electric commercial mobility startup Drivn raised Rs 45 crore ($4.7 million) in a seed funding round led by Avaana Capital. The AI-driven health coaching platform Disha, known previously as Curelink, secured Rs 43.88 crore in a Series A round led by General Catalyst, alongside participation from existing investor Elevation Capital. The medicine quick-commerce platform Rio Health garnered Rs 43.08 crore ($4.5 million) in a pre-Series A round led by Version One Ventures, with support from Xeed Ventures, Good Capital, and Amplify Partners. Proactive AI startup Sol raised $4 million from General Catalyst, Nexus VP, and other investors. Other funded startups included the fintech and brokerage startup Definedge, lab-grown diamond jewellery company ONYA, healthtech brand Betterhood, high-protein frozen food label Protein Pantry, and four additional firms. The on-demand convenience platform TimBuckDo, the primary healthcare infrastructure company MyRx, and Carry-first streetwear brand Indian Walker also secured funding this week, but amounts were not disclosed.
City and Segment-wise Deals
Bengaluru dominated the funding landscape with eight startup deals this week, trailed by Delhi-NCR with six deals. Pune, Goa, and Hyderabad also recorded several transactions. AI startups led the sectors with four deals, followed closely by healthtech and e-commerce startups, each securing three deals. Additionally, sectors like mobility, quick commerce, fintech, foodtech, lifestyle, and HR tech witnessed funding activity.
Series-wise Deals
The week was led by seed rounds, which saw six deals, while pre-Series A and pre-seed rounds followed with four and three deals, respectively. Series E, Series B, Series A, and angel funding each accounted for one deal.
Week-on-week Funding Trend
Week-on-week, startup funding surged over three times to $188.49 million, compared to the $61.8 million raised the previous week. The average weekly funding over the past eight weeks has been approximately $232.88 million across 21 deals.
Key Hirings
This week marked only two significant hirings. The digital lending platform Olyv appointed Ravi Sharma as its CFO, bringing over 17 years of expertise in financial services, having previously served as CFO at Finova Capital. Meanwhile, the functional medicine firm iThrive appointed Saloni Kulkarni, its former head of Client Services, to its Board of Directors.
Mergers and Acquisitions
Private equity firm Samara Capital has acquired stakes in Associated Road Carriers (ARC) and Calyx Container Terminals to establish an integrated logistics platform.
Fund Launches
The early-stage VC firm Lavni Ventures has successfully closed its second deep-tech impact fund, reaching a target corpus of Rs 200 crore ($21 million), with an additional Rs 100 crore green-shoe option. This fund aims to support Indian deep-tech startups that are creating scalable solutions in the health and climate sectors.
New Launches and Partnerships
▪️ SRM University AP launches UNITES Global Innovation Society
SRM University AP, in collaboration with APSCHE, has launched the UNITES Global Innovation Society, aiming to unite scientists, academics, industry, government, and young researchers to tackle societal challenges. Hosted by the university’s Centre for Interdisciplinary Research, the initiative focuses on fostering collaborative research, innovation, and interdisciplinary scientific exchange.▪️ Nykaa and L’Oréal’s venture fund BOLD join forces to invest in Indian beauty startups
Nykaa has teamed up with L’Oréal’s corporate venture capital fund, BOLD, to jointly invest in emerging Indian beauty and personal care brands. The two firms will acquire minority stakes in high-growth startups and offer strategic mentorship, leveraging L’Oréal’s international expertise alongside Nykaa’s retail and distribution network. Founders will maintain operational and creative control of their enterprises.
News Flash This Week
▪️ Pine Labs to Deploy 10 Lakh Soundboxes Across India to Enhance Digital Commerce
Pine Labs has initiated a strategic investment plan to distribute 10 lakh Soundboxes throughout India, aimed at bolstering the digital payments infrastructure. This initiative is designed to increase UPI adoption in new markets and business segments as digital transactions expand beyond small-ticket operations.▪️ MOS Utility subsidiary SIGN receives RBI’s in-principle approval for online payment aggregator licence
MOS Utility subsidiary Samvriddhi Inclusive Growth Network (SIGN) has obtained RBI’s in-principle approval to function as an online payment aggregator. Once finalised, SIGN intends to offer UPI, card, QR-based, and net banking payment solutions geared towards merchants, particularly focusing on small enterprises in rural and overlooked areas.▪️ NSE makes muted debut, listing at Rs 1,800 with a 0.84% premium
The National Stock Exchange (NSE) debuted on the stock market on Thursday, September 24, with share listings at Rs 1,800 on the BSE, reflecting a 0.84% premium over its IPO price of Rs 1,785. This listing follows NSE’s Rs 22,561 crore IPO, which was subscribed 5.71 times, drawing bids for 50.58 crore shares against 8.86 crore shares available. The issue was entirely an offer for sale (OFS), with no proceeds directed to NSE.▪️ PB Fintech shares fall over 30% after IRDAI proposes lower insurance commissions
Shares of PB Fintech, the parent company of Policybazaar, dropped by more than 30% on Thursday following insurance regulator IRDAI’s proposal to implement stricter commission caps and amendments to insurance distribution regulations. The stock decreased from Rs 1,282 to its previous closing price of Rs 1,886.30, amid worries that diminished commissions could influence the earnings of insurance distributors. The suggested reforms encompass life, health, and general insurance, as well as stricter spending limits and enhanced transparency in insurance sales.▪️ Mastercard sells entire 4.31% stake in Pine Labs for Rs 934 Crore
Mastercard has divested its complete 4.31% stake in Pine Labs, amounting to Rs 933.5 crore through a bulk transaction on Tuesday. Key buyers included ICICI Prudential Life Insurance, Societe Generale, and Citigroup Global Markets Singapore.▪️ Spinny confidentially pre-files IPO; appoints Ex Bharti executive Akhil Gupta as board chairman
The used-car retailing platform Spinny has confidentially submitted its draft IPO papers to SEBI, as reported by insiders. The company aspires to raise between Rs 2,500-3,000 crore through a combination of fresh issues and offers for sale (OFS), with a target listing set for 2027. Kotak Mahindra Capital, Morgan Stanley, and Citigroup are managing the anticipated IPO.▪️ AceVector files RHP for Rs 287 Crore fresh issue, turns free cash flow positive in FY26
SoftBank-backed AceVector, the parent company of Snapdeal and Unicommerce, has submitted its RHP to SEBI for an IPO consisting of a Rs 287 crore fresh issue and an OFS of up to 4.12 crore shares. Starfish I and Nexus entities will likely account for the majority of the OFS, while co-founders Kunal Bahl and Rohit Bansal will retain their shares. The IPO follows AceVector becoming free cash flow positive in FY26.