The Indian startup ecosystem is thriving and exhibiting resilience and innovation as the flagship “Startup India” initiative approaches its tenth year. A notable recovery occurred between January 13 and 18, 2025, in spite of a drop in funding activity earlier this month. Let’s examine the major events that influenced this exciting week.
Credits: PGuru
Funding Soars Despite Fluctuations
The Indian startup ecosystem raised an impressive $779.92 million across 37 deals this week, reflecting a 67.2% jump from the $466.45 million secured the previous week. While the deal count rose from 27 to 37, the investment landscape saw varied contributions from early and growth-stage startups.
Growth-Stage Triumphs
Growth-stage startups took the lion’s share, raising $714.08 million. Key deals included:
Impetus Technologies: Raised $350 million in a Series D round led by Kedaara Capital, underscoring the rising demand for data analytics and AI solutions.
Aragen: Secured $100 million from Quadria Capital, a testament to the growing potential of the healthtech sector.
Netradyne: Achieved unicorn status after closing a $90 million Series D round led by Point72 Private Investments.
Foxtale: A D2C skincare brand, bagged $30 million with Kose Corporation as the lead investor.
Early-Stage Momentum
In the early-stage funding space, 22 startups collectively raised $64.92 million. Notable mentions include:
Micromitti: A proptech firm that led the early-stage investments.
Sarla Aviation: An aerospace startup promising innovation in the skies.
Astrosure.ai: A spiritual-tech platform blending technology with astrology.
Bolt.Earth: An EV charging infrastructure provider poised to accelerate the green mobility shift.
Sectoral Insights: Healthtech and SaaS Dominate
Healthtech and SaaS startups emerged as leaders this week, each securing five deals. E-commerce and foodtech startups followed closely with four deals apiece. Other prominent sectors included EVs, proptech, and AI, reflecting India’s diverse and evolving innovation landscape.
Bengaluru reaffirmed its status as the startup capital of India, leading with ten funding deals, followed by Delhi-NCR, Mumbai, and Pune.
Mergers, Acquisitions, and Strategic Moves
This week witnessed high-profile mergers and acquisitions, reinforcing the ecosystem’s dynamic nature:
Amazon Acquires Axio: The e-commerce giant strengthened its fintech capabilities by acquiring Axio (formerly Capital Float).
MoEVing Expands with EVonGO Acquisition: EV fleet operator MoEVing acquired EVonGO, the mobility division of Euler Motors, enhancing its fleet services.
Fund Launches Fuel Future Growth
Venture capital firms continued to show confidence in India’s startups:
Cornerstone Ventures: Announced the first close of its $200 million SaaS-focused second fund, securing $40 million.
Avendus Future Leaders Fund III: Secured commitments of Rs 850 crore ($100 million) in its first close.
RevX Capital: Unveiled plans for its second private credit fund, targeting Rs 750 crore ($86.6 million).
Leadership Changes and Key Hires
The startup ecosystem saw notable leadership changes this week:
Angel One: Appointed former Google Pay VP Ambarish Kenghe as Group CEO.
Zetwerk: Named Vadim Yakubov as CEO of its U.S. subsidiary, Unimacts.
5Paisa: Welcomed Gaurav Seth as its new CEO.
Curefoods: Promoted Gokul Kandhi to Chief Operating Officer.
Challenges: Layoffs Cast a Shadow
Amid the positive developments, over 200 employees faced layoffs across three startups:
Breath Well Being: Let go of around 100 employees.
ShareChat: Reduced its workforce by 5% as part of a performance review.
Pocket FM: Laid off 75 employees.
New Launches and Partnerships
Innovation and expansion remained the focus for many startups:
MobiKwik: Partnered with Piramal Finance to offer personal loans.
Droom: Entered the automobile rental sector.
Bounce Infinity: Unveiled a 15-minute charge scooter at Bharat Mobility Expo.
MapmyIndia: Collaborated with Qualcomm for ‘Make in India’ automotive solutions.
Digantara: Announced the launch of its first satellite via SpaceX.
Credits: Sakshi Post
IPO and Market Buzz
Several startups shared updates on their public listing plans:
Zetwerk: Selected six bankers to lead its $500 million IPO in 2025.
Urban Company: Set to file draft papers for a Rs 3,000 crore IPO by March.
Ather Energy: Targeting a $2.4 billion valuation for its IPO.
A Promising Future
The Indian startup ecosystem continues to be a global hub for innovation and investment, as evidenced by significant events like Netradyne’s admission into the unicorn club and a spike in fundraising. As “Startup India” commemorates ten years of encouraging entrepreneurship, further innovations are anticipated in the upcoming weeks, setting the stage for a year that will be revolutionary.
