This past week saw a notable slowdown in fundraising for India’s startup ecosystem, with investment inflow falling 43% from the prior period. In sharp contrast to the $270.2 million raised the week before, Indian companies raised $152.9 million in 17 agreements between February 17 and 22, 2025. The ecosystem was still thriving despite the downturn, as seen by a number of well-known initial public offerings (IPOs) and well-timed acquisitions.
Credits: Business Outreach
Funding Takes a Hit: A Week of Sluggish Investments
The third-largest startup ecosystem in the world has been navigating volatile funding trends, and this week was no exception. The total number of deals fell from 22 to 17, with the overall capital inflow shrinking substantially. However, the funding decline did not dampen entrepreneurial activity, as several key industry developments took center stage.
One of the major takeaways was the dominance of ecommerce startups, which overtook fintech as the most-funded sector of the week. Six ecommerce startups, including Udaan and The Whole Truth, collectively secured $109.9 million, accounting for nearly 72% of total funding.
Major Funding Rounds of the Week
Among the most notable funding rounds were:
- Udaan (B2B Ecommerce) – The largest deal of the week, raising $75 million from M&G Prudential and Lightspeed Venture Partners.
- Spyne (Enterprise SaaS) – Secured $16 million in a Series A round led by Vertex Ventures.
- The Whole Truth (D2C Ecommerce) – Raised $15 million in a Series C round, backed by Sofina and Peak XV Partners.
- Singulr (Enterprise SaaS) – Bagged $10 million in a seed round from Nexus Venture Partners and Dell Technologies Capital.
- Dogsee Chew (D2C Ecommerce) – Secured $8 million in a Series B round, led by Ektha.com.
One promising highlight was the increase in seed-stage funding, which saw four startups collectively raise $15.1 million—a 39% jump compared to the previous week.
IPO Buzz: Startups Eyeing the Stock Market
Despite the funding dip, the Indian startup ecosystem saw a wave of IPO-related developments, signaling confidence in public markets.
- PhonePe, India’s fintech powerhouse, announced its IPO preparations, aiming to become the third major fintech startup to list publicly in India.
- Licious, the online meat delivery startup, is planning an IPO next year with a target valuation of $2 billion, marking a 33% jump from its last private valuation of $1.5 billion.
- Lenskart, after roping in Kotak Mahindra Bank and Morgan Stanley, is preparing to file its DRHP by May and is aiming for a $10 billion valuation—double its last private valuation.
- Navi, led by Sachin Bansal, is gearing up for a FY26 IPO, engaging in discussions with merchant bankers to finalize valuation and listing timelines.
- boAt, after shelving its IPO plans three years ago, is now reviving its public listing ambitions, with a ₹2,000 crore IPO planned for FY26.
Mergers & Acquisitions: A Week of Big Moves
While startup funding slowed, the week was buzzing with high-value acquisitions across various sectors:
- A23’s parent company, Head Digital Works (HDW), acquired Deltatech Gaming (Adda52) for ₹491 crore.
- Deep Bajaj and Mohit Bajaj, co-founders of Sirona, repurchased the feminine hygiene brand from Good Glamm Group.
- NextLeap acquired PM School, strengthening its position in workforce skilling and product management education.
- ScoopWhoop, previously owned by Good Glamm Group, was sold to marketing firm WLDD.
- Visa processing platform Atlys expanded its overseas footprint by acquiring Artionis’ UK subsidiary in an all-cash deal.
- InCred acquired Dubai-based Arrow Capital (DIFC) Limited to expand its presence in the Middle East and Africa.
Other Key Developments in the Startup Ecosystem
Beyond funding and acquisitions, several other industry updates made headlines:
- Fintech startup POP is reportedly in talks with Razorpay for a $10-15 million investment and is open to acquisition discussions.
- Dronetech firm ideaForge invested $1.8 million in US-based Vantage Robotics to strengthen its UAV manufacturing capabilities.
- IN-SPACe, India’s space regulatory body, announced a ₹500 crore Technology Adoption Fund (TAF) to boost spacetech startups and reduce dependency on imported technology.
Looking Ahead: What’s Next for Indian Startups?
While this week saw a funding dip, the increased IPO activity and high-value acquisitions suggest that investors remain bullish on India’s startup ecosystem. Enterprise SaaS, ecommerce, and cleantech continue to attract significant capital, and the trend of consolidation through acquisitions is expected to persist.
As market dynamics evolve, startups with strong fundamentals and profitability paths will likely gain investor confidence. With PhonePe, Lenskart, Licious, and Navi pushing towards IPOs, the coming months could be pivotal for India’s startup landscape.
While funding volatility remains, India’s startup ecosystem is far from slowing down.
