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. Major acquisitions and strategic investments dominated the headlines, whilst investors continued to show strong confidence in emerging technologies and established players. Here's a roundup of the latest funding and acquisition news from this week.

AI security startup Repello AI raises $1.2 million in seed funding

AI security startup Repello AI has raised $1.2 million in a seed funding round led by Venture Highway, along with Pi Ventures, Entrepreneur First and angel investors. The round saw participation from notable angel investors including Charles Songhurst, Board member at Meta, and Vivek Raghavan, CEO of Sarvam AI. Founded by Aryaman Behera and Naman Mishra in 2023, Repello AI provides AI security testing and threat modelling services to address growing concerns around AI security as businesses increasingly adopt artificial intelligence solutions across various sectors.

Zerodha's Rainmatter invests $1.5 million in sportstech startup Machaxi

Sports-tech startup Machaxi has secured $1.5 million in a funding round led by Zerodha's investment arm Rainmatter, with participation from legendary badminton player Prakash Padukone and other investors. Founded in 2022 by Pratish Raj, Ashish Anand and Tushar Raj, the startup uses digital infrastructure to offer coaching. The company will expand AI-driven grassroots badminton coaching nationwide, aiming for 1,000 centres in four years, making professional sports training more accessible across India's diverse markets.

BigBasket to introduce its 10-min food delivery service throughout India by March 2026

E-commerce giant BigBasket has announced plans to roll out its ultra-fast 10-minute food delivery service across India by March 2026. The Tata-owned grocery platform aims to compete directly with quick commerce players like Zepto, Blinkit, and Swiggy Instamart in the rapidly growing instant delivery segment. The expansion will significantly enhance BigBasket's quick commerce capabilities and strengthen its position in India's competitive grocery delivery market.

Wow! Momo raises Rs. 85 crore in debt from Stride Ventures

Popular food chain Wow! Momo has secured Rs. 85 crore in debt funding from Stride Ventures to fuel its expansion plans across India. The Kolkata-based quick service restaurant chain, known for its momos and Chinese cuisine, will use the capital to open new outlets, enhance its delivery infrastructure, and strengthen its presence in tier-2 and tier-3 cities. This funding reflects investors' confidence in India's growing QSR market and Wow! Momo's expansion strategy.

Flick TV raises $2.3 million to build India's leading micro-drama streaming platform

Micro-drama streaming platform Flick TV has raised $2.3 million in funding to establish itself as India's premier destination for short-form episodic content. The startup focuses on creating bite-sized dramatic content tailored for mobile consumption, targeting India's growing appetite for quick entertainment. The funding will be used to commission original content, enhance the platform's technology infrastructure, and expand its content library to compete in the crowded Indian streaming market.

Gaming startup MetaShot raises Rs. 2 crore from Karnataka Government's Venture Fund

Gaming startup MetaShot has raised Rs. 2 crore from the Karnataka Government's Venture Fund to enhance its gaming platform and expand its user base. The Bengaluru-based company focuses on developing interactive gaming experiences and will use the funding to strengthen its technology infrastructure and launch new gaming titles. This investment highlights the state government's commitment to supporting the growing gaming and entertainment sector in Karnataka.

Groww closes $200 million funding round ahead of IPO

Fintech unicorn Groww has successfully closed a $200 million pre-IPO funding round, with US-based investment firm Iconiq Capital leading the investment with $150 million. The round values the company at approximately $6.5 billion, more than doubling its most recent valuation of $3 billion from 2021. Groww is eyeing a listing by the end of fiscal year 2025-26 (FY26) and has already picked banks, including JPMorgan Chase, for its upcoming market debut.

WestBridge joins Spinny's captable with $30 million funding

Used-car marketplace unicorn Spinny has raised $30 million from WestBridge Capital as part of its Series F funding round, bringing the total Series F round to $170 million in a mix of primary and secondary deals. The new funding will help Spinny enhance its technology platform, scale operations, and modernise its lending business, whilst maintaining its valuation at $1.5-1.7 billion.

Plutope raises Rs 5 crore in pre-seed round

Renewable energy startup Plutope has raised Rs. 5 crore in a pre-seed funding round to advance its clean energy solutions. The company focuses on developing innovative technologies for the renewable energy sector, addressing India's growing need for sustainable power solutions. The fresh capital will be used to enhance product development and expand market reach across key Indian cities.

Paytm launches personalised UPI ID

Digital payments giant Paytm has introduced personalised UPI IDs, allowing users to create customised payment identifiers for enhanced convenience and branding. The new feature enables individuals and businesses to choose memorable UPI handles that reflect their identity or brand name, making digital transactions more personalised and user-friendly. This launch strengthens Paytm's position in India's competitive UPI ecosystem and offers users greater flexibility in their digital payment experience.

Merger and Acquisitions

• DCM Shriram has announced the acquisition of Hindusthan Specialty Chemicals for Rs. 375 crore, strengthening its position in the specialty chemicals sector. The acquisition will enable DCM Shriram to expand its product portfolio and enhance its manufacturing capabilities in high-value specialty chemical products.
• Advent International has committed to invest $175 million in Felix Pharma to acquire a minority stake in the pharmaceutical company. The investment will support Felix Pharma's expansion plans and help accelerate its drug development programmes whilst strengthening its position in the Indian pharmaceutical market.
• EdTech giant Byju's has sold its US-based subsidiaries Epic and Tynker for $97.2 million, marking a significant divestment after acquiring them for $700 million. The sale represents part of Byju's strategic restructuring efforts as the company focuses on its core markets and operations amid ongoing financial challenges.

Other News

• Boeing shares slid 2% in pre-market trading following reports of a deadly Air India plane crash in Ahmedabad, raising fresh concerns about aviation safety and the aircraft manufacturer's reputation in the Indian market. The incident has prompted renewed scrutiny of aircraft safety protocols and maintenance procedures across Indian airlines.
• Jupiter has partnered with CSB Bank to launch its most rewarding RuPay credit card, offering enhanced benefits and cashback features for customers. The collaboration aims to provide competitive credit solutions in India's rapidly growing digital payments market.
• ZEE Entertainment has partnered with content startup Bullet to launch a micro-drama app, expanding its digital content offerings. The partnership will focus on creating short-form video content to cater to the growing demand for bite-sized entertainment among Indian audiences.
• Pantomath's The Wealth Company has launched the Rs. 2,000 crore Bharat Bhoomi Fund, focusing on real estate and infrastructure investments across India. The fund aims to capitalise on the country's growing infrastructure development and urbanisation trends.