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Indian Startup Funding This Week: 43 Startups Raise $222.87 Million Amid 83% Funding Drop

Indian startups collectively raised $222.87 million across 43 deals this week, marking a significant 83% drop compared to the previous week’s $1.3 billion haul.

While overall capital inflow slowed, early-stage activity remained strong, indicating continued investor appetite for emerging ventures.

Out of the total deals:

  • 3 were growth-stage

  • 36 were early-stage

  • 4 startups did not disclose funding amounts

WEEKLY FUNDING SNAPSHOT

Total Funding: $222.87 Million
Total Deals: 43
Growth-Stage Funding: $45.2 Million (3 Deals)
Early-Stage Funding: $177.68 Million (36 Deals)
Week-on-Week Change: ↓ 83%
8-Week Average: $354 Million | 32 Deals/Week

Weekly Funding report
Weekly Funding report

Growth-Stage Highlights ($45.2M)

Despite fewer late-stage rounds, three companies secured notable growth capital:

  • Constelli (Defence Tech) – $20M Series A led by General Catalyst

  • Wishlink (Creator Commerce) – $17.5M Series B led by Vertex Ventures

  • Home Essentials (D2C Brand) – ₹70 Cr pre-Series B led by 360 ONE Asset

Defence tech and creator economy platforms stood out among larger deals.

Early-Stage Activity Leads the Week ($177.68M)

Early-stage startups drove momentum with 36 transactions.

Top Early-Stage Deals:

  • Temple (Wearable Tech) – $54M led by Deepinder Goyal

  • Xflow (Cross-border Payments) – $16.6M Series A

  • Prayaan Capital (MSME Lending) – $12M

  • MeltPlan (Pre-construction AI) – $10M

On the debt side:

  • GalaxEye (Deeptech) – ₹5 Cr from SIDBI

  • Agrizy (Agritech) – ₹10 Cr from SIDBI

AI-driven B2B marketing platform Gushwork, proptech startup Spintly, and nutraceutical brand ZeroHarm Sciences also secured funding.

 CITY-WISE DEAL DISTRIBUTION

📍 Bengaluru – 21 Deals
📍 Delhi-NCR – 11 Deals
📍 Hyderabad, Chennai, Mumbai & others – Active participation

Bengaluru retained its position as India’s top startup hub.

CITY-WISE DEAL DISTRIBUTION

SEGMENT-WISE TRENDS

AI – 7 Deals
Deeptech – 7 Deals
Healthtech – 6 Deals
E-commerce – 5 Deals
Fintech, SaaS, Agritech – Continued activity

Funding Report
Funding Report

AI and deeptech remained the most active investment themes.

SERIES BREAKDOWN

Seed – 19 Deals
Series A – 10 Deals
Pre-Seed – 5 Deals
Debt & Others – Multiple Deals

Seed-stage funding led activity, reflecting strong early investor confidence.

M&A and Strategic Moves

  • LAT Aerospace acquired Sharang Shakti

  • Capillary to acquire US-based Session M for $20M

  • BillDesk to acquire Worldline India operations

  • upGrad acquired Internshala

ESOP Buyback

Unacademy announced a ₹50 Cr ESOP buyback program, providing liquidity to employees.

Weekly Funding Trend Analysis

While funding volume declined sharply, the number of deals remained robust. The absence of mega late-stage rounds primarily contributed to the week-on-week dip.

The 8-week rolling average of $354 million indicates that capital flow remains steady over the medium term.

Key Takeaway

This week reflects a recalibration phase in Indian startup funding — fewer large cheques, but sustained early-stage momentum. AI, deeptech, and fintech continue to attract investor interest, with Bengaluru leading geographically.

Despite volatility, the ecosystem remains active and resilient.

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