Startups, Mergers, Acquisitions and Funding Round-up this week

This week saw significant developments in the startup landscape, with several companies securing funding to boost their operations. While mergers and acquisitions were few, investors have continued to show strong confidence in other sectors. Here’s a roundup of the latest funding and acquisition news.

Zeta valued at $2B in new funding

Zeta, a Bengaluru-based banking software provider, has raised $50 million from Optum, increasing its valuation to $2 billion. The company, which helps banks modernise with cloud tech, serves 25 million accounts and has clients such as HDFC Bank and Mastercard.

ToneTag closes $78 million funding round

ToneTag, a Bengaluru-based digital payments startup, has secured $78 million in funding from ValueQuest Scale Fund, Iron Pillar, and Elevate Capital. The company plans to expand its operations in India and globally, offering sound-based payment systems for both online and offline transactions.

Anscer Robotics Secures $2 Mn From Info Edge Ventures

Anscer Robotics, a Bengaluru-based deeptech startup, has raised $2 million in seed funding led by Info Edge Ventures. The company plans to expand globally and develop new products, having already deployed AMRs for 15 enterprise customers in the US, India, Singapore, and Japan.

SpotDraft Bags $54 Mn To Help Businesses Automate Legal Contracts

Legal tech startup SpotDraft has raised funds from Vertex Growth, Trident Partners, and existing investors for market expansion and AI-driven product development. The company, founded in 2017, offers an AI-powered CLM platform for managing contracts across sales, legal, and HR teams.

Lucidity Bags $21 Mn To Power Cloud Storage Solutions For Enterprises

Lucidity, a cloud storage management startup, has raised $21 million in Series A funding to expand its team and enhance solutions for enterprise storage management. Founded in 2021, it offers AI-enabled software to help clients automate and manage cloud infrastructure efficiently.

ArthAlpha Nets $2 Mn To Boost Its AI-Powered Research Tools

ArthAlpha, a Mumbai-based investment tech platform, has raised $2 million in funding led by DSP to enhance its AI-powered research tools and develop a quantitative investment platform. Founded in 2024, the startup specialises in portfolio management and AI-driven investment research.

Webtoon Comic App Toonsutra Bags $3.2 Mn From Google, Others

Webtoon app Toonsutra has raised $3.2 million in seed funding led by Holtzbrinck Publishing Group, with support from Google, GMJP, and others. The funding follows the involvement of Funimation's founder, Gen Fukunaga, as an investor and advisory board member.

CapGrid Nets $5 Mn To Bolster Its Manufacturing Operations

The startup has raised new capital to expand globally, enhance its tech capabilities, and strengthen manufacturing operations, with participation from Nexus Venture Partners and Axilor Ventures. This funding follows a recent Rs. 29.16 crore ($3.3 million) raise in an extended Series A round.

Mysa Bags $2.8 Mn To Help Businesses Streamline Financial Operations

Bengaluru-based fintech startup Mysa has secured capital to enhance its platform, accelerate customer growth, and hire talent. It has also received a Registered Investment Advisor (RIA) licence from SEBI and launched an AI-driven unified finance and banking platform.

Mergers and Acquisitions:

• JioCinema and Disney+ Hotstar have merged to form JioHotstar, offering new subscription plans and AI-driven content recommendations

Other News:

• Swiggy's shares dropped over 8% after reporting a 39% YoY increase in net loss to Rs. 799 Cr in Q3 FY25, with Citi highlighting its lag in the quick commerce market
• Amazon has launched its 10-minute delivery service, Amazon Now, in select Bengaluru areas, with plans to expand to more regions and engage brands in beauty, home, and kitchen categories
• Paytm Money paid a fine of Rs. 45.50 lakh to settle a SEBI case over violations related to the technical glitch framework, following a similar settlement by Paytm and its officials for Rs. 3.32 crore