21 Indian Startups Secure $361.5 Million in Funding (Sep 15-20)

Indian startups saw a significant boost in funding during the week of September 15-20, as 21 companies collectively raised $361.5 million. This marked a 10% increase compared to the $329 million raised by 26 startups in the prior week. The latest funding was distributed across six growth-stage and 13 early-stage deals, with two startups choosing to keep their funding amounts undisclosed.

Growth-Stage Deals Dominate

Growth-stage startups led the week, securing $320 million in total. Healthtech firm Pharmeasy emerged as the top recipient, raising Rs 1,700 crore ($193 million) in a debt round from 360 One. Fintech platforms Finbox and InCred Money followed, collectively raising Rs 250 crore ($30 million). Both Ecosoul, a sustainable home essentials brand, and Indkal Technologies, a consumer electronics company, secured $20 million each. Foodtech unicorn Rebel Foods rounded out the list with a $17 million debt round from Alteria Capital and InnoVen Capital.

Early-Stage Activity Remains Strong

Thirteen early-stage startups raised a combined $41.55 million. Among them, SaaS platform Scalekit and lab-grown diamond jewelry brand Lucira led with $5.5 million each. Fintech startup Pelocal and deeptech venture SpaceFields each secured $5 million. Other notable recipients included IT product enterprise BeyondSquare, consumer electronics maker iDO Devices, and fintech-focused AI SaaS company Pascal AI Labs.

Additionally, electric motorcycle manufacturer Raptee and AI-based education startup CrazyGoldFish received grants during the week, but their funding amounts were not disclosed.

Bengaluru Leads by Numbers, Mumbai by Total Funding

Bengaluru stood out as the hub of startup activity, with 11 deals originating in the city. Mumbai, however, took the top spot in terms of total funding raised, with five startups contributing significantly to this week’s total. Other participating cities included Delhi-NCR, Kamrej, and Chennai.

Fintech and E-commerce Lead Funding Segments

Segment-wise, fintech and e-commerce startups were the most active, with four deals each. Other sectors such as consumer electronics, deeptech, healthtech, and foodtech also secured funding this week, showcasing the diverse interests of investors in the Indian startup ecosystem.

Seed Funding Takes the Lead

Among the funding stages, seed funding dominated with eight deals. This was followed by Series B rounds, while Series A, debt, and other stages also saw activity.

Other Key Developments

Corporate Moves and Appointments

Three major hirings were announced this week:

• Kamalkanth Tummala was appointed as Country Manager for India at Databricks.
• John Egan, former Stripe Head of Crypto, became the first Chief Product Officer at Polygon Labs.
• Blyp (formerly ParkMate) brought on Rannvijay Singha to strengthen its brand presence and youth engagement efforts.

Mergers and Acquisitions

PayU, the fintech arm of Prosus, increased its stake in Mindgate Solutions to 70%, making it the majority shareholder. The remaining 30% will continue to be held by founders George Sam and Guhan Muthuswamy, who will also oversee operations.

New Fund Launches

Private equity firm Singularity AMC closed its second fund, Singularity Growth Opportunities Fund II, at Rs 2,000 crore ($235 million). The fund aims to invest in growth-stage and pre-IPO startups. Additionally, the International Finance Corporation (IFC) committed up to $25 million to Trifecta Capital’s fourth venture debt fund.

Layoffs and Shutdowns

Real-money gaming giant Gameskraft laid off approximately 120 employees in a restructuring move following the Indian government’s ban on online money games. Meanwhile, electric mobility startup MyPickup shut down after three years, citing challenges with product-market fit and limited access to patient capital.

New Launches and Partnerships

• CRED launched a co-branded RuPay credit card in partnership with IndusInd Bank.
• Hoi partnered with EaseMyTrip to introduce a rewards program at airports.
• CARS24 collaborated with ElevenLabs and Google Cloud to integrate voice AI into the used car market.
• PRISM unveiled "CheckIn", a premium value hotel collection combining brands such as OYO’s Townhouse Hotels, Clubhouse, and Belvilla under one umbrella.

Financial Reports and Market Updates

Urban Company, a home services marketplace, made a strong stock market debut, listing at a 57.5% premium over its issue price on the NSE. However, the week also saw financial challenges for other players:

• SilverPush reported an Rs 18 crore loss for FY25.
• Walmart India reduced its losses to Rs 110 crore amid muted revenue growth.
• Edtech unicorn LEAD cut its losses by 70%, though its revenue remained flat.
• Jar, a fintech startup, reported Rs 208 crore in operating revenue for FY25 and turned profitable in the second half of the year.

Summary

The Indian startup ecosystem experienced a notable uptick this week, with a total funding increase of 10% compared to the previous week. Growth-stage startups contributed the lion’s share of funding, while early-stage companies continued to attract investor interest. Key developments in hiring, acquisitions, and financial performance further underscored the dynamic activity within the sector. Despite challenges like layoffs and shutdowns, the ecosystem remains vibrant and diverse, reflecting the resilience and adaptability of Indian startups.

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