After a hopeful rebound earlier this month, India’s startup investment activity experienced a steep decline in the third week of June 2025. Startups raised just $91.5 Mn across 10 deals, marking an 84% plunge compared to the previous week’s $559.2 Mn across 19 rounds. But even as private funding faltered, the ecosystem stayed vibrant with IPOs, mega-fundraises, and M&A activity making headlines.
In this article, we will delve into the dramatic dip in startup funding witnessed during the third week of June, while also unpacking the major highlights — from IPO activity and billion-dollar fundraises to strategic acquisitions — that continue to shape the narrative of India’s ever-evolving and resilient startup ecosystem.
Funding Falls, Fintech Stays Strong
This week saw fintech dominate deal activity, with three startups in the sector raising $40.1 Mn, led by Razorpay-backed POP ($30 Mn). However, this marked a steep fall from the $340 Mn raised by fintech players last week, underscoring the volatility in investor sentiment.
Notably, telecom startup WIOM secured the largest round of the week at $35 Mn, backed by marquee investors including Accel, Prosus, Bertelsmann India, and RTP Global. WIOM is poised to ramp up its affordable internet services amid India’s expanding digital inclusion push.
Electric mobility startup Oben Electric also featured in the funding charts, adding $11.5 Mn to its Series A, reflecting sustained investor interest in green mobility.
Other noteworthy deals include:
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Techfino ($7.5 Mn) – Lending tech
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Saswat Finance ($2.6 Mn) – Pre-Series A
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illumine ($2.5 Mn) – Edtech SaaS
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Darwix AI ($1.5 Mn) – Application layer AI
Seed-stage funding remained muted, with just $3.5 Mn raised across three deals, significantly lower than last week’s $14.1 Mn.
IPOs and Public Market Moves
Even as VC funds cooled, India’s startup IPO pipeline stayed hot:
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ArisInfra Solutions successfully closed its IPO with a 2.65X oversubscription, after raising INR 225 Cr from anchor investors. The B2B ecommerce firm saw bids for 3.47 Cr shares against an offer of 1.31 Cr shares.
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Capillary Technologies, a SaaS player, refiled its DRHP, planning a fresh issue of INR 430 Cr and a major OFS component.
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Meesho, gearing up for its public listing, got NCLT approval to shift its HQ back to India from the US — a move seen as crucial to meet regulatory norms and attract domestic investors.
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Meanwhile, Zepto deferred its IPO plans to 2026, aiming to further solidify growth and unit-level profitability before going public.
M&A Action Heats Up
Two notable strategic acquisitions added firepower to their acquirers:
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InCred Money, the wealth arm of InCred, acquired Stocko, marking its entry into retail broking — a bold diversification in India’s fast-growing investment services space.
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Krutrim, an AI company, snapped up BharatSah’AI’yak to bolster its large language model (LLM) and agentic AI stack. The move aligns with Krutrim’s broader ambition to build an India-first AI infrastructure.
MakeMyTrip’s $3.1 Bn Move & Fund Updates
In the biggest headline of the week, MakeMyTrip raised a whopping $3.1 Bn through convertible notes and a share offering. The funds will help repurchase Class B shares from China’s Trip Group, thereby increasing promoter control and reducing foreign ownership — a move being seen as a de-risking strategy ahead of any geopolitical changes.
In the investment landscape:
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Physis Capital secured over INR 200 Cr as part of its INR 400 Cr debut fund, focused on early-stage tech startups.
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Quadria Group launched its HealthQuad Fund III, eyeing $300 Mn to invest in 13–15 healthtech startups.
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Okinawa, the EV manufacturer, is reportedly raising INR 60 Cr from existing investor Dhruv Khush Business Ventures to fuel expansion.
The Road Ahead
Despite the funding dip, the ecosystem continues to show resilience, with IPO activity accelerating, strategic acquisitions reshaping sectors, and global capital backing major players like MakeMyTrip. The contrast between weak early-stage funding and robust late-stage moves suggests a temporary lull rather than long-term stagnation.
