247VC Launches Early-Stage Investment Fund in India
247VC Launches Early-Stage Investment Fund in India
247VC has introduced its inaugural investment fund dedicated to early-stage startups in India. The fund has an initial capital of Rs 200 crore, with a possibility to increase this by an additional Rs 50 crore. It operates under SEBI’s Category II AIF regulations.
Leadership and Background of 247VC
The venture capital firm is spearheaded by Yagnesh Sanghrajka and Shashank Randev, both seasoned investors in the startup ecosystem who previously co-founded 100X.VC. They departed from that firm in late 2024.
Investment Strategy and Focus Areas
247VC aims to support approximately 30 startups over the next three years. The average investment per startup is expected to be around Rs 7 crore, with amounts starting between Rs 3-4 crore and increasing dependent on performance.
The fund’s focus will be on consumer-facing businesses, enterprise software, advanced manufacturing, and deep technology sectors.
Support and Partnerships
Some initial investors in the fund include Sachin Tagra from JSW Ventures, Vivek Mathur, a former partner at Elevation Capital, and AI specialist Shailendra Majmundar from Johns Hopkins University.
The team aims to achieve the first closing of the fund within a span of four months. Sanghrajka noted that even though early-stage funding faces challenges, the entry of larger investors into seed rounds has created opportunities for collaboration. The firm plans to engage in co-investing with larger funds as part of its overall strategy.
Past Accomplishments
The founders have previously supported various startups such as Knight Fintech, abCoffee, EMO Energy, and Zeron.
AI Futures Fund – Google’s Initiative to Support Innovative Startups
AI Futures Fund – Google’s Initiative to Support Innovative Startups
AI Futures Fund is an exciting new initiative introduced by Google, which is dedicated to aiding startups that are creating advanced products using the company’s most innovative AI technologies and research. This fund promises direct investment opportunities, early access to Google DeepMind and Gemini models, along with practical assistance from Google’s AI specialists and market-entry teams.
Flexible Funding Opportunities
In contrast to conventional accelerator programmes, the AI Futures Fund operates continuously without fixed application windows or specific cohorts. Startups at all stages, from seed to well-established, are eligible for funding and support. Chosen startups will also receive Google Cloud credits to facilitate the growth of their operations.
Empowering Startups with Growth Potential
The mission of the fund emphasises close collaboration with ambitious startups at every stage, aiming to rapidly enable innovative 0-to-1 products and features. Chosen startups will have the chance to pursue direct investments from Google to stimulate their growth and advance AI development.
Strategic Investment Amidst Market Changes
Google is leveraging the fund to enhance its involvement in emerging AI businesses and trends, especially as venture capital dwindles and the IPO market remains sluggish. Notable examples include platforms like Viggle, a meme-generation service, and the webtoon application Toonsutra, both of which have thrived with Google’s backing under this initiative.
Commitment to AI Advancements
This new initiative further solidifies Google’s dedication to AI innovation. The company has made several substantial contributions to the sector recently. Last year, Google committed $120 million via its Global AI Opportunity Fund to broaden access to AI education and training. Additionally, a $20 million generative AI accelerator was announced for nonprofits through Google.org. Google has also poured over $1 billion into Anthropic, a leading generative AI startup, supplementing previous investments that totalled $2 billion, alongside a significant cloud partnership.
Broader Startup Support Ecosystem
The AI Futures Fund enhances Google’s wider efforts to support startups, including its Google for Startups Founders Funds, which has recently begun focusing on AI-centric companies within the United States.
Staying Ahead in the AI Race
With major competitors like Microsoft and Amazon increasing their investments in generative AI, Google’s latest fund represents a deliberate strategy to maintain its leadership in AI development and foster the next generation of innovative startups.
Indian Startups Begin Rebounding with Cautious Fundraising Efforts
Indian Startups Begin Rebounding with Cautious Fundraising Efforts
Indian startups are gradually seeing a resurgence in fundraising activities, albeit in a cautious manner. Several established startups have recently obtained funds or are in negotiations at either stable valuations or with significant reductions. Previously, companies like Byju’s, PharmEasy, ShareChat, Dunzo, Oyo, and Ola faced valuation declines ranging from 60% to 90%. This trend highlights ongoing challenges within the ecosystem and the careful stance adopted by investors in the current landscape.
Case Studies of Recent Fundraising
A prime example is the used car marketplace Spinny, which recently raised $131 million in a Series E funding round, maintaining a flat valuation of approximately $1.75 billion—unchanged from its last fundraising effort in 2021. Similarly, Euler Motors, an electric vehicle startup, managed to secure $24 million in its Series D round while keeping its valuation steady at $200 million from its previous round.
Preference for Stable Valuations
These instances demonstrate that an increasing number of startup founders are opting for stable valuations rather than aiming for higher ones, primarily to ensure they have adequate resources to continue operations. However, not all startups are navigating this phase smoothly. Content platform Pratilipi saw its valuation plummet by over 60% during a recent internal round, dropping from $265 million in 2021 to below $100 million now. This decline underscores the heightened scrutiny that investors have on monetisation strategies and long-term growth potential.
Notable Trends in the Startup Ecosystem
Startup Superb highlighted that Udaan, once a star of the B2B e-commerce sector, raised $75 million at a flat valuation of $1.8 billion. In a similar vein, Bellatrix Aerospace, a space-tech startup, is closing a new funding round at the same valuation as its previous raise, according to another exclusive from Startup Superb. Other companies like Blissclub, MakeO (parent of Toothsi), and Pagarbook are also securing fresh funds at stable or reduced valuations.
Fintech Developments and Market Trends
In a significant development, fintech unicorn CRED is in discussions to raise new funds at a valuation of $4 billion, down from $6.4 billion in 2022. Other enterprises, including Stanza Living and CityMall, are investigating downrounds as they seek additional capital. Moneycontrol reports that both companies are grappling with significantly marked-down valuations compared to their previous funding benchmarks.
Impact of Increased Scrutiny
Simultaneously, Good Glamm Group is also pursuing new funding at a lower valuation. These patterns hint at a more rigorous assessment of startup metrics, possibly indicating a larger shift in the investment landscape, particularly with capital being infused by Indian-owned entities. Startups with longevity, such as Oyo, CRED, and Ather, have suffered the most, suggesting that past optimistic projections may now be coming back to haunt these firms.
Market Dynamics Shifting
Moreover, the influx of volatility implies that projections spanning five or even three years are becoming less relevant for serious investors. This shift indicates that private markets are increasingly mirroring public markets after a brief phase where public markets appeared to reflect private outcomes with generous valuations for loss-making startups.
Looking Ahead
Consequently, this trend may spell more challenges for publicly listed and loss-generating entities like Swiggy. Meanwhile, the allure of going public is diminishing for others. Any delays in fundraising efforts will come with a greater cost, compelling many to confront two unappealing choices in the short to medium term.
During the week, startup funding in India saw a remarkable increase as 27 startups collectively secured around $585.71 million. This included 6 deals in the growth stage and 21 in the early stage.
In contrast, the preceding week recorded 25 startups, spanning both early and growth stages, raising approximately $102.93 million.
Growth-stage Deals
Notably, growth and late-stage funding reached approximately $322.3 million this week, spearheaded by Porter, an on-demand goods transport service, which raised $200 million in its Series F funding round led by Kedaara Capital and Wellington Management. Additionally, automotive firm Routemotic garnered $40 million in its Series C round, while interior design startup Flipspaces raised $35 million with support from Iron Pillar. Celcius Logistics, The Good Bug, and e-commerce platform Blissclub also secured funding during this period.
Early-stage Deals
Furthermore, 20 early-stage startups raised a total of $263.41 million in funding. PB Healthcare, a healthcare company, led early-stage funding with a larger $218 million seed round initiated by General Catalyst. Following closely were robotics company Posha, edtech startup Footprints, spacetech firm InspeCity, full-stack commercial vehicle platform 91Trucks, and proptech company Alt DRX, all of whom also attracted investment this week.
For a more detailed funding breakdown, individuals may refer to various sources.
City and Segment-wise Deals
An overview of the city-wise funding reveals that startups based in Delhi-NCR led with 11 deals, while Bengaluru followed with 10 deals. Startups from Mumbai and Chennai also secured funding.
Segment-wise, healthtech startups took the lead with 4 deals, followed by logistics and foodtech sectors, each with 3 deals. Other sectors such as AI, automotive, decor, and robotics also participated in the funding.
Series-wise Deals
This week, seed funding accounted for the highest number of deals with 9, followed by Series A, pre-Series A, Series B, and other categories.
Week-on-week Funding Trend
Compared to the previous week, startup funding elevated by 5.7 times, reaching $585.71 million from approximately $102.93 million. The average funding over the last eight weeks is about $216.39 million with 25 deals each week.
Key Hirings & Departures
This week featured notable appointments across various companies. Peeyush Ranjan, previously CTO of Flipkart and an ex-Google executive, has joined Mukesh Bansal’s startup incubator, Meraki Labs, as a partner. Kuhoo Finance has welcomed Vineet Mahajan as its new CFO. Veranda, an edtech firm, has appointed Mohasin Khan as its CFO. Furthermore, Astrikos.Ai, an AI-based infrastructure intelligence company, has enhanced its leadership team by making four senior hires to facilitate its upcoming growth phase.
More information can be found in various sources.
Mergers and Acquisitions
Browserstack, a SaaS unicorn, has acquired Requestly, a tool for HTTP interception, API mocking, and debugging. Absolute Sports, a subsidiary of Nazara Technologies and parent of Sportskeeda.com, has entered into agreements to acquire TJRWrestling.net and ITRWrestling.com from Titan Insider Digital.
Additional details are available from various sources.
Fund Launch
QED Investors, a venture capital firm based in the US, plans to invest between $250 million and $300 million into early and growth-stage startups across India and the Asia Pacific region.
Layoffs
GenWise, an online club designed for seniors, has reduced its workforce by laying off 15–20 employees, constituting 20% of its staff, across various departments including tech, marketing, product, design, business, and operations.
More insights regarding series-wise deals and funding amounts can be found in various sources.
New Launches and Partnerships
Aerem has partnered with OMC Power to advance rooftop solar installation among MSMEs in Uttar Pradesh. Rilox EV has teamed up with Hala Mobility to deploy 20,000 electric two-wheelers throughout India. KOGO AI and Tech Mahindra have joined forces for AI agents, and the fintech SaaS platform CaptainBiz has launched Bill2Pay for MSMEs.
Potential Deals
Vetic, a petcare startup, aims to raise $26 million led by Bessemer. Propelld, an education-focused lending platform, seeks to secure $30 million from WestBridge and Stellaris. MakeO, the parent company of Toothsi, is also on track to raise funds at a 50% valuation cut, while Motilal Oswal invests Rs 200 crore into Lahori. Celebal Tech is commencing its Series B round with a 2X valuation increase.
Financial Results This Week
Swiggy has reported revenues of Rs 4,410 crore for Q4 FY25, while Instamart enjoys a growth of 115%. CaratLane’s revenue for Q4 FY25 stands at Rs 883 crore. Arya.ag has recorded Rs 447 crore in revenue for FY25, marking a 70% profit increase. CarTrade posted revenues of Rs 169 crore in Q4 FY25, doubling its profit. Paytm documented Rs 1,911 crore in revenue with a loss of Rs 23 crore in Q4 FY25. Unicommerce’s revenue surged by 70% in Q4 FY25, while Battery Smart’s revenue has tripled in FY24, although losses have more than doubled.
News Flash This Week
Vanguard has valued Ola at $1.25 billion. 10Club has filed with NCLT to initiate insolvency proceedings. Swiggy plans to transfer ownership of vital food brands to Kouzina. Porter has reached unicorn status in 2025 with a remarkable $200 million fundraise. Evera Cabs has taken over 500 electric vehicles previously utilized by BluSmart.
Summary
Startup funding escalated 5.7 times this week to $585.71 million compared to around $102.93 million from the prior week. Porter has emerged as the third unicorn of 2025 after securing $200 million in its Series F round alongside Kedaara Capital and Wellington Management. Evera Cabs is in the midst of reclaiming 500 electric vehicles that were once part of BluSmart’s fleet after encountering operational suspensions in major cities. They have successfully repossessed 220 vehicles with plans to recover the remainder, thereby reinforcing their leadership in the electric cab sector, especially for airport mobility.
Additionally, several startups are actively seeking investment. Celebal Technologies, an IT service provider, aims to raise Rs 125 crore (around $14.7 million) in its Series B round led by InCred Growth Partners Fund. Propelld, focused on education lending, anticipates securing Rs 260 crore (around $30.5 million) in its Series D round, supported by WestBridge Capital and Stellaris Venture Partners. Lahori, a beverage brand, is on track to raise Rs 200 crore (approximately $23 million) from Motilal Oswal. Other companies like MakeO and Vetic are also pursuing fundraising efforts.
Routematic Secures $40 Million in Funding for Employee Fleet Management
Routematic, a leader in employee fleet management and transport automation solutions, has successfully raised $40 million in a Series C funding round. This round was primarily led by Fullerton Carbon Action Fund and Shift4Good.
Previous Funding Rounds and Valuation
Prior to this, Routematic garnered approximately $6 million through various investment rounds, supported by Blume Ventures, VAMM Ventures, and Bosch from 2015 to 2021. Notably, in November 2020, it raised $2 million from Bosch Limited, enhancing its valuation to $28 million at that time. The current valuation of Routematic remains undisclosed.
Future Plans and Sustainability Goals
As part of its future initiatives, Routematic aims to establish city-level command centers designed to oversee fleet operations according to demand. Additionally, the company plans to transition 30% of its fleet to electric vehicles (EVs) to align with its clients’ environmental, social, and governance (ESG) objectives.
Comprehensive Services for Corporate Mobility
Routematic provides a broad spectrum of services focusing on corporate mobility. This includes technology for transport, transport as a service using its own fleet, and management of transport operations. Presently, Routematic operates in more than 23 cities throughout India, catering to over 300 clients and servicing around 300,000 monthly users.
Market Growth and Expansion Plans
The employee transportation market in India is projected to reach a staggering $13.2 billion by 2030. This growth is attributed to factors such as business expansion, employee requirements, and a push towards sustainability. To tap into this burgeoning market, Routematic intends to enhance its corporate commute services and expand its fleet to exceed 10,000 vehicles in the top five cities by March 2026.
Funding Trends in the Startup Ecosystem
Routematic is among a select group of startups that have successfully secured funding after a prolonged period. For example, Amazon-backed ToneTag was able to raise funds after a seven-year hiatus. Likewise, Cashfree obtained investment after four years, while Zeta and Oxyzo secured funding following a three-year gap.
Seed Stage Valuations in India: A Critical Overview
Seed Stage Valuations in India: A Critical Overview
Seed stage valuations in India have surged significantly in recent years—even for startups without a product or revenue. This trend has led to unrealistic expectations during Series A and B funding rounds. As of 2023, the average DPI for Indian VC funds has decreased from 1.2x in 2019 to just 0.7x, indicating weaker returns for investors. Alarmingly, nearly 20% of substantial funding rounds for Indian startups in 2023 encountered down or flat rounds, prompting concerns regarding sustainability and rational capital allocation.
The Current Landscape of Indian Startups
In today’s Indian startup ecosystem, it’s common to see companies valued at INR 100 Cr despite having no product or revenue. This situation raises questions about whether serious founders are being set up for success or if they are facing challenges in justifying their valuations in later rounds. A 2024 report shows that approximately 20% of large Indian startups that secured funding in 2023 have encountered down rounds after failing to achieve expected traction.
Valuation Disconnect and its Implications
This trend highlights a substantial issue in India’s venture capital scene, where pre-seed and seed stage valuations are soaring—often misaligned with a startup’s operational reality. Early-stage companies are frequently valued more on ambition rather than their actual performance. While down rounds may not drastically alter a startup’s lifecycle, they do place founders in a difficult position when trying to justify mid-stage valuations that do not reflect their actual progress.
The Cycle of Overvaluation
Newly established fund managers are setting elevated standards for seed and pre-seed stages. However, when the projected traction fails to materialise as startups progress to subsequent funding rounds, their valuations begin to decline. This decline complicates the ability of early-stage investors to justify valuations, creating a ripple effect across the entire ecosystem. According to McKinsey India’s analysis, the average DPI ratio for Indian VC funds fell from 1.2x in 2019 to 0.7x in 2023, indicating a growing disparity between capital invested and capital returned.
The Misalignment of Expectations
It is essential to refrain from assigning blame here. Rather, the focus should be on a pivotal question: Are current valuations genuinely indicative of a business’s measurable progress, or are they simply forecasts of potential? When seed stage valuations are excessively high, the repercussions extend beyond just one funding round—they influence the whole investment cycle.
Investor Sentiment and Market Perception
This scenario seems to be diminishing investor interest in startups, creating difficulties for dedicated founders in justifying their valuations during future funding rounds, rather than propelling them toward success. During a recent conversation with a foreign investor from the Middle East, he remarked that valuations in India feel inflated, despite transactions being conducted in rupees rather than dollars.
Capital Efficiency Discrepancies
A study by Meraki Labs examined the capital efficiency of Indian unicorns and identified significant inconsistencies. Startups with capital efficiency between 3–10x raised $45 Bn, yielding a market cap of $218 Bn and generating $10 Bn in revenues. Conversely, those with capital efficiency between 1–3x raised $21 Bn, resulting in a market cap of $46 Bn and approximately $3.4 Bn in revenues, with few nearing profitability. While some companies may have enjoyed a stroke of luck, relying on luck alone is not a viable strategy.
Shifting the Focus of Valuations
Given this context, rather than basing valuations on future possibilities, investors ought to concentrate on the tangible achievements of startups and their capital efficiency. For instance, if a startup has successfully raised funds and grown its MRR from INR 10 Lakh to INR 80 Lakh monthly with reasonable valuation multiples, this makes sense. However, when companies attract substantial funding before launching a product, it prompts critical questioning.
Illustrative Case: Koo
A similar path was observed with Koo, India’s alternative to Twitter, which raised funds at a valuation exceeding $275 Mn. Despite gaining some initial user traction, Koo struggled with monetisation and ceased operations in mid-2024. This serves as an example of how excitement during early stages can overshadow essential business model shortcomings. While some advocate that high early-stage valuations are a bet on long-term vision, this notion often falters when consumer internet platforms without competitive advantages raise valuations at exorbitant multiples.
Promoting Sustainable Investing
Certainly, specific companies—especially those entering new markets or heavily investing in R&D—require substantial initial capital. There are examples of such in WRC’s portfolio. However, for the majority of businesses, valuations should be based on actual progress rather than merely potential outlooks. The current lack of valuation sensitivity creates a cascading effect, where each funding round sees inflated prices. By the time later-stage investors arrive, founders are often compelled to undertake down rounds, or growth prospects lag behind the prices set. Consequently, returns are diminishing, and interest in the startup asset class is fading.
Realigning the Conversation
It is crucial to shift the dialogue from speculative outcomes to the foundational achievements of startups and the operational efficiency of their capital usage. Ultimately, sustainable investment should ensure that every funding round enhances the long-term viability of a company, rather than simply facilitating the next stage at an inflated price. Without addressing this issue, the viability of venture capital as an appealing asset class may wane, resulting in exaggerated valuations and disillusioned returns.
It is imperative to realign incentives and restore rationality in early-stage investing. The next time a startup displays a INR 40 Cr valuation without a product launch, it is vital to contemplate what it has accomplished already—this critical inquiry has the potential to safeguard investment portfolios.
QED Investors Plans $250-$300 Million Investment in Startups across India and Asia Pacific
QED Investors Plans $250-$300 Million Investment in Startups across India and Asia Pacific
QED Investors, a venture capital firm based in the US, is targeting an investment of between $250 million and $300 million in early and growth-stage startups situated in India and the Asia Pacific region, as reported by ET.
The firm successfully closed a $925-million fund in 2023, with a prime focus on fintech ventures, expecting India to attract a substantial portion of these investments.
Sandeep Patil, who serves as the partner and head of Asia at QED Investors, remarked to ET that while there is no specific allocation by region, India continues to be a pivotal market. Other regions being evaluated include Indonesia, Singapore, Japan, and more countries within the Asia Pacific area.
Established in 2007 by Nigel Morris, a cofounder of Capital One, QED has supported leading global fintech entities such as Credit Karma, Remitly, NuBank, and Klarna. Patil pointed out an increasing emphasis on embedded finance and the integration of artificial intelligence within financial services.
In the last five years, QED Investors has allocated approximately $220 million in Asia. The firm’s portfolio in India features early investments in startups like Jupiter, OneCard, Upswing, and Efficient Capital Labs. Notably, in December, QED led a $25-million funding round for OneCard.
As highlighted by Startup Superb, venture capital firms concentrating on India have amassed over $4.2 billion up to April 2025, with multiple substantial funds ready to infuse more capital in the months ahead. In the current year, startups have reported securing $4.4 billion in total funding, a total that remains similar to figures observed in prior years.
Kaleidofin: Innovative Fintech Neobanking Platform Raises $5.3 Million
Kaleidofin: Innovative Fintech Neobanking Platform Raises $5.3 Million
Kaleidofin, a fintech neobanking platform, has successfully secured $5.3 million (approximately Rs 44.5 crore) in a recent funding round led by the IDH Farmfit Fund. Based in Chennai, the startup had earlier raised $13.8 million in September 2024. It has noteworthy backing from Rabo Partnerships, the Michael & Susan Dell Foundation, Oikocredit, Omidyar Network India, and Flourish Ventures. To date, Kaleidofin has amassed a total of $42 million in funding.
Utilisation of Funds by Kaleidofin
The newly acquired funds are designated for scaling up its lending portfolio and enhancing credit scoring, middleware, and risk services through innovative partnerships, according to a press release from Kaleidofin.
The Vision of Kaleidofin
Established in 2017 by Sucharita Mukherjee and Puneet Gupta, Kaleidofin is a fintech entity dedicated to democratising finance and offering inclusive financial solutions to underbanked individuals and businesses. The platform delivers a technology-driven solution that merges investments, credit, and insurance tailored specifically to customer needs, employing a “click and brick” model that integrates both online and offline channels. The mission of the company is to empower everyone with essential financial services through technology and a strong network of partners.
Targeting Underbanked Indians
Kaleidofin’s goal is to reach 600 million underbanked Indians with customised financial solutions. It has crafted a technology platform that lowers the cost of delivering financial services, thus making them accessible even to customers with minimal savings. The platform merges online solutions with a broad partner network, which includes banks, MFIs, and NGOs, ensuring reliable last-mile connectivity.
Collaborations and Technological Innovations
Kaleidofin collaborates with various partners such as banks, MFIs, NBFCs, and corporations to broaden its reach and provide an expanded range of financial services. The platform employs advanced machine learning and suitability engines to deliver goal-oriented financial solutions which cater to different life stages.
Startup Funding in India: Trends and Insights for 2025
Startup Funding in India: Trends and Insights for 2025
Startup funding in India has seen a notable decline in April, amounting to $745 million, a significant drop from the $1.76 billion secured in January. This sharp decrease is largely attributed to a reduction in substantial deals and an increasing focus of investors on public markets. Data further suggests that startup funding has remained relatively flat during the first four months of 2025.
According to various sources, Indian startups garnered a total of $745 million through 116 deals in April. The growth and late-stage funding segments contributed $562 million from 23 deals, while early-stage funding raised $186 million from 77 deals. It should also be noted that 16 rounds of funding did not disclose their amounts.
Month-over-Month Trend
April exhibited a month-over-month funding drop of 34.65% when compared to March, which reported $1.14 billion. Year-on-year, this marks the lowest amount of funding recorded for April in the last five years.
Top 10 Growth-Stage Deals
In the realm of growth and late-stage funding, Spinny, an e-commerce platform for used cars, raised $131 million in Series E funding, followed by Juspay, which secured $60 million in Series D. Other significant deals included Rebel Foods with $25 million in Series G, Tonbo Imaging at $21 million in Series D, and Uniqus Consultech at $20 million in Series C.
Top 10 Early-Stage Deals
In April 2025, multiple early-stage startups achieved considerable funding. Kult, a beauty tech platform, raised $20 million, and Aerem, focused on clean energy, secured $12 million. RapidClaims, a healthtech startup, garnered $11 million, while Xindus, a cross-border logistics venture, secured $10 million. Edtech startup SigIQ.ai also raised $10 million. Other notable deals comprised Optimized Electrotech with $6 million and The Bear House, a men’s fashion brand, at $5.8 million.
Mergers and Acquisitions
The Indian startup ecosystem recorded key mergers and acquisitions in April 2025, with Delhivery acquiring Ecom Express for $166 million, the largest deal for the month. Findi purchased fintech company BANKIT for $18.7 million, while Accenture and Ampivo AI carried out strategic acquisitions in deeptech and AI. In edtech, Arihant Academy acquired Carmel Classes for $1.2 million, and Creativefuel took over MissMalini Entertainment for $0.69 million. Other relevant deals included CARS24 acquiring Team-BHP, Jaipuria Group’s acquisition of ClearDekho, and NABARD purchasing 24*7 Moneyworks Consulting.
City and Segment-wise Deals
Bengaluru emerged as the leading city for startup funding in April, raising $268.94 million across 35 deals, while Delhi-NCR followed with $253.44 million from 31 deals. Mumbai ranked third with $122.96 million across 15 deals. Pune and Chennai recorded funding amounts of $35.67 million and $29.84 million from 7 and 8 deals, respectively. Collectively, Bengaluru and Delhi-NCR accounted for over 70% of the total funding raised during the month.
Fintech led the segment-wise funding chart in April, amassing $189.11 million from 9 deals, followed by e-commerce with $64.88 million from 17 deals. The foodtech sector raised $44.84 million through 13 transactions, healthtech secured $32.82 million across 12 deals, and edtech brought in $21.66 million from 7 deals. Notably, fintech accounted for more than a quarter of the total funding for the month, demonstrating sustained investor interest in financial services.
Series-wise Deals
In terms of deal volume, seed funding led in April with 38 deals, trailed by Series A with 24, and pre-Series A and pre-seed with 18 and 11 deals, respectively. Series A funding raised $240 million, making up 32% of the total funding for the month.
Layoffs, Key Hires, and Departures
Zomato, now a public entity, recorded the largest layoff, reducing its workforce by 600 employees. Gupshup and Zopper also reduced their teams by 200 and 100 employees, respectively.
In April, the startup ecosystem faced significant leadership changes, with five senior executives, including CEOs, MDs, CTOs, co-founders, and a Group CFO, stepping down. Concurrently, over 30 key executive roles were filled, indicating a period of transition.
Trends
Venture capitalists have increasingly stepped in. Despite a flat funding landscape in the final week of April 2025, the $4.2 billion raised by India-focused VC firms such as A91 Partners, Accel, and Bessemer signifies growing investor confidence. Additionally, Peak XV is set to raise between $1.2 to $1.4 billion, hinting at a potential uptick in funding momentum in the upcoming months.
Startups like Urban Company and Ather Energy have scaled back their IPO sizes due to market conditions and investor hesitance. Urban Company, initially planning a Rs 3,000 crore IPO, has reduced it to Rs 1,900 crore. Similarly, Ather Energy has trimmed its IPO size from Rs 3,100 crore to Rs 2,981 crore.
In the edtech sector, startups are attempting to rebound despite challenges. Unacademy aims for profitability in the near future, while PhysicsWallah is preparing to file its IPO papers soon and is considering acquisitions in the UPSC preparation space.
Many startups have recently secured funding rounds but often at flat or reduced valuations. Spinny, for instance, raised $131 million maintaining its previous valuation, while Euler Motors also retained its valuation in its Series D round. Conversely, content platform Pratilipi experienced a significant 60% decline in its valuation.
Investment in Scandalous Foods: Leading B2B Indian Sweets Brand
Investment in Scandalous Foods: Leading B2B Indian Sweets Brand
Scandalous Foods, a renowned B2B Indian sweets brand, has successfully secured Rs 2 crore in its current seed funding round, spearheaded by New Age India Fund. The startup has received three term sheets from various investors and is currently reviewing these options to finalise the funding round.
Previously, the company raised Rs 3 crore in its pre-seed funding round in February 2024 with support from Indian Angel Network and others.
The funds will be directed towards enhancing production capabilities and bolstering its SME HoReCa (Hotels, Restaurants, and Catering) distribution network, thereby propelling the next phase of growth for Scandalous Foods, as stated in a press release.
Mission and Vision of Scandalous Foods
Founded in August 2022 by Sanket S, Scandalous Foods aims to transform the sweets industry specifically for the restaurant sector. The brand is dedicated to quality and innovation, providing preservative-free sweets with a six-month shelf life, conveniently offered in single-serve sizes. While currently operating as a B2B entity, the brand has aspirations to expand into B2B2C and B2C markets.
Operational Focus and Future Plans
Scandalous Foods operates with an emphasis on cloud kitchens and intends to broaden its reach within various food service sectors. Soon, the brand plans to launch mithai bars and sachets, designed for spontaneous indulgence without the guilt.
The co-founder of Scandalous Foods expressed that the brand is not merely engaged in selling Indian sweets, but rather aims to establish itself as the leading mithaiwala in addressing unplanned post-meal impulse purchases. The recent funding marks a significant milestone in the brand’s journey to embed its sweets into restaurant and catering menus across India. With increased production, a more robust distribution network, and innovative products on the way, the brand is prepared to share its delightful creations with a wider audience.
Growth and Market Reach
Scandalous Foods has reportedly experienced a remarkable 7x growth in the calendar year 2024, successfully selling over two million cups of Indian sweets across nine cities. The brand reaches nearly one million unique consumers through its 27 B2B clients and more than 1,500 distribution points.
Based in Nashik, the startup is looking to introduce 2-3 new products and expand into additional sub-channels within its existing markets. While it has initially targeted key account HoReCa clients, the brand will now extend its focus towards SME HoReCa and caterers.
