India’s startup ecosystem witnessed another action-packed week, with 24 startups collectively raising around $158.8 million across growth and early-stage deals. While the overall funding activity dipped compared to the previous week’s $187.21 million, the market continued to show strong investor appetite for sectors such as spacetech, AI, fintech, e-commerce, and SaaS.
The biggest headline of the week came from the spacetech sector as Skyroot Aerospace entered the unicorn club after raising a massive $60 million round.
Skyroot Aerospace Leads The Charge
Growth-stage startups dominated the funding charts this week, accounting for $120 million across just three deals. Hyderabad-based spacetech startup Skyroot Aerospace emerged as the biggest winner after securing $60 million in a funding round co-led by Sherpalo Ventures and GIC.
The funding officially pushed Skyroot into the unicorn club, marking another major milestone for India’s rapidly growing private space ecosystem. The company has been at the forefront of India’s commercial space ambitions and is building launch vehicles for satellite deployment.
Meanwhile, instant household services startup Pronto extended its Series B round to $45 million after receiving an additional $20 million investment from Lachy Groom. Climate-focused NBFC Ecofy also raised $15 million in debt funding from Mirova, highlighting continued investor interest in sustainable finance ventures.
Early-Stage Startups Continue To Attract Investors
Despite the funding slowdown, early-stage startups managed to raise $38.3 million across 18 deals, showcasing strong momentum in emerging sectors.
Fabless semiconductor startup BigEndian Semiconductors led the early-stage pack after raising $6 million in a pre-Series A round led by IAN Alpha Fund. The deal reflects growing investor confidence in India’s semiconductor ambitions amid the global chip race.
Skincare brand CHOSEN secured $5 million in a Series A round led by Fireside Ventures, while AI computing solutions provider Tsavorite raised $5 million from Pavestone.
Another notable deal came from bank locker infrastructure startup Aurm, which secured Rs 42 crore in a seed round co-led by Earth Fund and Sattva Ventures.
Several other startups across categories also attracted fresh capital, including ethnic wear brand Kisah, blockchain engineering firm Antier Solutions, legal AI startup Jurisphere, and menstrual hygiene startup HealthFab.
Bengaluru Continues To Dominate Startup Activity
Bengaluru once again emerged as the startup capital of India this week with 14 deals, far ahead of other cities. Delhi-NCR followed with four deals, while Mumbai and Chennai recorded two deals each. Hyderabad and Mohali also witnessed startup funding activity.
From a sector perspective, e-commerce startups topped the charts with five deals. AI and SaaS startups followed closely with four deals each, reaffirming investor confidence in technology-driven businesses. Fintech, spacetech, healthtech, and home services startups also remained active throughout the week.
Layoffs And Leadership Changes Continue
While funding activity remained healthy, several startups also undertook restructuring measures.
Nasdaq-listed SaaS company Freshworks reportedly laid off around 500 employees, nearly 11% of its global workforce, as it restructures operations amid rapid AI adoption.
Grocery delivery startup Apna Mart cut around 10% of its workforce, while audio entertainment platform Pocket FM laid off nearly 100–130 employees in another round of job cuts.
The week also saw several key leadership changes. Healthy food brand Epigamia appointed Ritesh Gauba as CEO, while edtech startup Codingal named Praveen Kumar as Vice President of Operations.
Credits: Indian Retailer
M&A Deals And Big Developments Keep Ecosystem Buzzing
The mergers and acquisitions space remained equally active. InMobi acquired AI-powered app analytics platform MobileAction to strengthen its advertising business globally. Meanwhile, fintech startup Freo acquired digital lending marketplace IndiaLends.
FMCG giant Emami Ltd also signed a deal to acquire a 60% stake in IncNut Digital, the parent company of Vedix and SkinKraft, for Rs 321 crore.
On the policy and ecosystem front, major developments included Tencent selling a 1.05% stake in PB Fintech for Rs 805 crore, Ola Consumer initiating IPO preparations, and InCred filing an updated DRHP with SEBI.
Although weekly funding declined by over 15%, the broader trend indicates that investors are still actively backing startups solving large-scale problems across AI, spacetech, fintech, and consumer technology. With unicorns continuing to emerge and IPO pipelines strengthening, India’s startup ecosystem remains firmly on the global innovation map.
