Funding and Acquisitions in Indian Startups: May 19–24, 2025
During the week of May 19 to May 24, 2025, the Indian startup ecosystem witnessed a total funding of approximately $139.5 million across 21 startups. This marks a 28.17% decline compared to the previous week’s $194.22 million. The funding landscape comprised five growth-stage deals and thirteen early-stage deals, with three startups opting not to disclose their funding amounts.
Growth-Stage Deals
Growth and late-stage startups secured nearly $65.75 million this week. Leading the pack was healthtech startup CureBay, which raised an undisclosed amount in its Series B round led by Bertelsmann India Investments. Cybersecurity firm CloudSEK followed with a $19 million Series B round. Electric vehicle manufacturer Euler Motors secured $15 million as part of its ongoing $60 million Series B round. Fintech companies Dvara KGFS and Borderless (operating as Stockal) also attracted investments during this period.
Early-Stage Deals
Thirteen early-stage startups collectively raised $73.75 million. Notably, Mythik, founded by Jason Kothari, led with a $15 million seed round. Other significant fundraises included deeptech startup ALT Carbon, AI-focused Biostate AI, and SaaS provider Data Sutram. Additionally, spacetech startup PierSight and e-commerce brands BlackCarrot and The Sock Street secured funding but did not disclose the amounts.
City and Segment-Wise Distribution
Delhi-NCR emerged as the leading region with eight funding deals, followed by Bengaluru with four. Other cities such as Mumbai, Chennai, Bhubaneswar, and Ahmedabad also saw startup investments. Sector-wise, fintech startups topped the list with three deals, while e-commerce and media & entertainment sectors followed with three and two deals, respectively. Deeptech, AI, healthtech, and cybersecurity sectors also attracted investor interest.
Series-Wise Breakdown
Seed funding dominated the week with eight deals, followed by Series A, Series B, and Series D rounds. This trend underscores the continued investor confidence in early-stage ventures within the Indian startup ecosystem.
Week-on-Week Funding Trend
The 28.17% decline in funding compared to the previous week reflects the inherent volatility in startup investments. Over the past eight weeks, the average weekly funding stood at approximately $216.99 million across 25 deals, indicating a fluctuating yet resilient investment landscape.
Key Hirings and Departures
This week also saw notable movements in leadership positions:
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Quick commerce platform Zepto appointed Rachit Ranjan as its Chief Public Policy Officer to oversee policy, regulatory, and government affairs.
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B2B marketplace ProcMart welcomed Sachin Jain as co-founder.
- Non-banking financial company Avanse Financial Services appointed former Bajaj Finserv COO Rakesh Bhatt as an independent director ahead of its IPO.
Mergers and Acquisitions
The M&A landscape was active with significant deals:
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Nazara Technologies acquired UK-based game publisher Curve Digital Entertainment Limited for ₹247 crore ($29 million).
- Zendesk acquired Local Measure, a leading Contact Center as a Service (CCaaS) provider.
Fund Launches
Several new venture funds were announced:
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360 ONE Asset, a unit of 360 ONE WAM, launched a ₹500 crore ($60 million) sector-agnostic VC fund targeting seed and Series A investments in India.
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Aarthi Ramamurthy introduced Schema Ventures with a $20 million fund focusing on early-stage startups in sectors like industrial software, robotics, and developer tools.
- Venture capital firm 247VC rolled out its first investment fund focused on early-stage Indian startups.
New Launches and Partnerships
The week also featured several strategic partnerships and product launches:
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ThunderPlus partnered with Ather Energy.
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Boba Bhai expanded into a multi-channel model.
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TagHive unveiled SaathiGPT, an AI-driven learning assistant designed to deliver personalized education.
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Banijay Asia and NODWIN Gaming partnered to amplify gaming engagement.
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Oben Electric announced plans to unveil its second indigenously developed platform, ‘O100’.
- Glance AI launched a commerce app featuring deep intelligence and visual shopping capabilities.
Financial Results
Several startups reported their financial performance:
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TBO Tek posted ₹446 crore in revenue and ₹59 crore PAT in Q4 FY25.
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Unnati Agri crossed ₹500 crore in revenue in FY24, with marginally widened losses.
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Honasa, parent company of Mamaearth, reported ₹533 crore in revenue in Q4 FY25, with a 17% decline in profit.
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Miko reported ₹358 crore in revenue in FY24, with subscription business income surging 29 times.
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Mobikwik posted flat scale in Q4 FY25, with significant losses.
- Square Yards crossed ₹1,400 crore in revenue in FY25, with a 52% surge in gross profit.
News Flash
Additional noteworthy developments include:
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Zepto Cafe paused operations in smaller cities amid supply chain challenges and high burn rates.
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Ola Electric board approved a ₹1,700 crore funding plan via debt instruments.
- Change Engine announced plans to create 20 non-profit unicorns to drive India’s social transformation.
The Indian startup ecosystem continues to demonstrate resilience and dynamism, with significant activities in funding, mergers, acquisitions, and strategic partnerships. While the week-on-week decline in funding highlights the sector’s volatility, the sustained interest from investors and strategic movements by startups indicate a robust and evolving landscape.
