Indian startup funding continued its momentum for the second consecutive week in September, with a strong capital inflow that made this week the most active since June. Between September 22–27, as many as 28 startups raised $377.4 Mn, marking a significant 19% jump from the $316.6 Mn raised in the previous week. The renewed investor appetite signals growing confidence in India’s innovation ecosystem, boosted further by multiple fund closures and IPO developments.
In this article, we will delve into the highlights of the week, breaking down the biggest deals, sectoral trends, fund updates, IPO movements, and other key developments.
Big Ticket Deals Dominate The Week
Leading the charge was PharmEasy, which raised $191.7 Mn in debt by pledging shares of its listed subsidiary, Thyrocare. The infusion will help the online pharmacy manage its repayment obligations and consolidate its healthtech leadership.
AI startup Emergent followed with a $23 Mn Series A round led by Lightspeed, with marquee names such as Y Combinator, Prosus, and Google’s chief scientist Jeff Dean backing the company.
Chakr Innovation, a clean tech startup tackling climate challenges, also raised $23 Mn in its Series C round led by Iron Pillar. Meanwhile, foodtech player Curefoods secured $18 Mn from Binny Bansal’s 3State Ventures, underscoring continued investor faith in the cloud kitchen model.
Other notable rounds included Handpickd ($15 Mn), Rocket ($15 Mn seed round led by Salesforce Ventures and Accel), and Vedantu ($11 Mn). Clean mobility player Simple Energy also grabbed headlines with its $10 Mn raise from Thyrocare’s founder Dr. Arokiaswamy Velumani.
Sectoral Snapshot: Healthtech And AI Lead
PharmEasy’s mega raise propelled healthtech to the top of the weekly charts, while AI emerged as the second hottest sector with three startups — Emergent, Rocket, and OnFinance — raising a collective $42.2 Mn.
The ecommerce sector stood out for deal volume, with six startups including Distil, Amwoodo, and P-TAL raising a total of $17.4 Mn. Meanwhile, agritech saw traction through KisanKonnect and Bharat Intelligence, reflecting investor interest in rural and farmer-focused innovations.
Interestingly, seed funding surged this week, touching $32.5 Mn across nine deals — a 40% jump from the previous week. This underlines the growing optimism around early-stage bets.
Most Active Investors Of The Week
Lightspeed, IndiaQuotient, and Rainmatter emerged as the most active backers of the week, spreading their bets across fintech, AI, and ecommerce. Lightspeed, in particular, was seen doubling down on fintech startup Oolka and AI companies like Emergent.
The rise of diversified funding also brought family offices and high-profile angels into play. From Binny Bansal (Curefoods) to Ranbir Kapoor and Badshah (Gabit), investors of all shades contributed to the week’s vibrancy.
Fund Closures Add More Firepower
The upbeat funding activity was complemented by multiple venture firms announcing new funds:
- Zeropearl VC closed its maiden fund at $18 Mn to back 45 early-stage startups.
- Good Capital announced the close of its $30 Mn Fund II, targeting 30–35 startups.
- Chiratae Ventures marked the second close of its fifth fund at $150 Mn for AI, deeptech, healthtech, and spacetech.
- 888VC entered the scene with a $19 Mn maiden fund aimed at sustainability, AI, and deeptech plays.
These fresh pools of capital are expected to further accelerate the pace of early-stage investments in the coming quarters.
IPO Buzz Heats Up
The week also saw heavy IPO activity. PhonePe confidentially filed its DRHP with SEBI for a $1.4 Bn offer-for-sale issue. Purple Style Labs, parent of Pernia’s Pop-Up Shop, filed for a $75 Mn IPO, while Aequs received SEBI’s nod to raise $200 Mn through a public issue.
Meanwhile, RentoMojo began gearing up for an FY27 listing, and Zapppfresh’s SME IPO opened with a modest 21% subscription rate.
These developments signal a growing pipeline of tech-first companies moving toward the public markets.
Other Major Developments
Among the week’s headline corporate moves, Swiggy’s board approved the sale of its stake in Rapido to Westbridge and Prosus for $270.4 Mn. This deal paves the way for Rapido to close a massive $500–$550 Mn round, with Prosus committing $240–$250 Mn as the lead investor.
On the accelerator front, Peak XV Partners launched the 11th cohort of its Surge programme, backing 23 startups (12 from India) with $3 Mn seed investments each.
The Road Ahead
With strong funding momentum, new venture funds in play, and IPO preparations picking up steam, the Indian startup ecosystem appears to be entering a new phase of resilience and growth. While macroeconomic headwinds remain, the last two weeks indicate that investors are eager to back bold ideas across healthtech, AI, climate tech, and beyond.
If the current trend sustains, the final quarter of 2025 could turn out to be one of the strongest periods for Indian startups this year.
