India’s startup ecosystem, the world’s third-largest, hit a speed bump last week, with funding plummeting to a modest $95 million across 17 deals, a 58% drop from the $314.6 million raised the previous week. From Bengaluru’s tech corridors to Mumbai’s financial hubs, the slowdown reflects cautious investor sentiment amid global economic jitters and a shift toward profitability over growth. Yet, amidst the dip, fintech and deeptech startups proved resilient, stealing the spotlight with hefty rounds and bold ambitions. Here’s the Tech Scoop Indiabreakdown of last week’s funding frenzy, served with a side of insight and a dash of spice.
A Quiet Week with a Fintech Firecracker
According to Inc42 and The Hans India, the week of July 7-12, 2025, saw 17 startups secure funding, with five growth-stage deals, 10 early-stage rounds, and two undisclosed amounts. Bengaluru led with six deals, followed by Delhi-NCR with four, while Mumbai, Hyderabad, and other cities chipped in. Fintech emerged as the top-funded sector, netting four deals, with Infinity Fincorp’s massive $70 million infusion leading the pack. Deeptech and SaaS followed, each with two deals, while proptech, foodtech, and OTT startups also grabbed a slice of the pie.
Infinity Fincorp, a non-banking financial company (NBFC), stole the show with its $70 million round, signaling strong investor confidence in fintech’s ability to weather market volatility. The funds, raised to bolster its lending operations, underscore fintech’s dominance, which has already netted over $2.5 billion across 162 deals in 2025. Other notable fintech players included InPrime Finserv, which bagged $6 million in a Series A1 round led by Pravega Ventures, and Belong, an NRI-focused fintech platform, which secured $5 million in a seed round led by Elevation Capital. These deals highlight fintech’s knack for attracting capital, even in a lean week, as startups tap into India’s booming digital payments and lending markets.
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Early-Stage Hustle and Deeptech Dreams
Early-stage startups held their ground, raising $22.11 million across 10 deals. InPrime Finserv led the early-stage pack, with its $6 million Series A1 round aimed at expanding lending for India’s middle class. Other standouts included Belong, catering to NRIs, and OTT microdrama app Chai Bisket, which tapped into the growing demand for bite-sized entertainment. Deeptech also shone, with Green Aero raising funds to push sustainable aviation solutions, while SaaS player Monetize360 and cybersecurity startup LdotR secured undisclosed amounts, hinting at investor interest in niche tech.
The focus on early-stage deals—seven of which were seed rounds—shows investors are still betting on fresh ideas, even if they’re tightening the purse strings. However, the 58% funding drop from the prior week’s $314.6 million suggests a cooling-off period, with VCs prioritizing startups with clear paths to profitability. The average funding over the past eight weeks stands at $205.24 million across 21 deals, making last week’s $95 million a notable low point.
Strategic Moves and M&A Whispers
Beyond funding, the week saw strategic maneuvering. Workspace solution provider Incuspaze acquired VSKOUT, a B2B SaaS platform for real estate analytics, signaling a trend toward consolidation in proptech. Meanwhile, startups like Udaan, Pocket FM, and Vedantu made headlines for seeking exits for their Chinese investors, as India’s regulatory environment remains tough on foreign capital from certain regions. This move, reported by Livemint, reflects a broader push to align with domestic priorities, even as startups navigate geopolitical complexities.
On the funding front, other sectors like e-commerce showed resilience, with GoKwik and Turtle & Rabbit raising capital to streamline online retail. The diversity of deals—from fintech to deeptech to consumer apps—proves India’s startup ecosystem remains vibrant, even if the cheque sizes are shrinking.
The Bigger Picture: Caution Meets Opportunity
Last week’s funding dip mirrors broader trends. After a robust 2024, where startups raised over $12 billion (a 20% jump from 2023’s $10 billion), 2025 has seen $7.76 billion across 916 equity rounds through July, a 35.25% drop from 2024’s $12 billion for the same period. The decline in deal volume (from 1,800 to 916 rounds) suggests investors are pickier, favoring fintech, e-commerce, and deeptech over riskier bets. Bengaluru’s six deals last week reaffirm its status as India’s startup capital, though Mumbai’s $1.3 billion haul in 2024, driven by Zepto’s mega-round, shows the financial capital is catching up.
X posts captured the mixed sentiment. Inc42 noted the funding drop but highlighted fintech’s resilience, while users roasted the volatility of startup valuations, with one quipping, “Indian startups: one week unicorn, next week bargain bin.” Others praised women-led startups like GIVA, which raised $73.7 million, as proof of diverse leadership driving growth. The chatter reflects a public both jaded by the ecosystem’s ups and downs and hopeful for its potential.
What’s Next for India’s Startups?
The funding slowdown isn’t a death knell—it’s a recalibration. With 469,780 startups and 119 unicorns, India remains a global powerhouse, but the days of easy money are over. Investors like Elevation Capital, Pravega Ventures, and Accel are doubling down on sectors with tangible impact, like fintech and deeptech, while startups in edtech and D2C face tougher scrutiny. Government initiatives like the Startup India Seed Fund Scheme, which supports early-stage ventures, and DPIIT’s recognition of 1.17 lakh startups, continue to provide a safety net, but the onus is on founders to prove their worth.
Last week’s $95 million haul may pale compared to the $355 million raised in early March or the $12 billion in 2024, but it’s a reminder that quality trumps quantity. Fintech’s dominance, deeptech’s promise, and strategic acquisitions show the ecosystem is maturing, even if it’s not always glamorous. As one X user put it, “India’s startups aren’t slowing down—they’re just learning to run smarter.” For now, the funding game is a high-stakes hustle, and only the savviest players will avoid getting busted.
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