Startup Roundup: Ecosystem, Mergers, Acquisitions and Funding News this week

This week, India’s startup ecosystem saw regulatory tightening, cross-border fintech expansion, IPO momentum, major fundraises and strategic acquisitions, reflecting a market focused on compliance, consolidation and sustainable growth.

Startup World: What's New

India’s startup ecosystem recorded a measured yet consequential week, shaped by regulatory developments, cross-border partnerships, public market activity and shifts in business strategy. Activity across artificial intelligence, space technology, fintech, mobility and digital commerce reflected a sector balancing expansion with compliance and capital discipline.

On the regulatory front, proposed amendments to the IT Rules in 2026 signalled tighter compliance expectations for AI platforms and digital intermediaries, underscoring the government’s intent to sharpen accountability in the online ecosystem. At the same time, the Centre indicated it would showcase its homegrown AI model, Sarvam AI, at a global summit, highlighting official support for domestic AI capability as policy oversight evolves.

Space and deep-tech initiatives also gathered pace. The Indian National Space Promotion and Authorisation Centre selected Astrome, Azista and Dhruva under its Space-Based as a Service (SBaaS) initiative, pointing to growing institutional backing for private space ventures. In parallel, Gujarat signed a letter of intent with Starlink to expand high-speed connectivity, suggesting continued collaboration between state governments and satellite internet providers to bridge digital gaps.

In digital commerce, Flipkart announced plans to pilot a food delivery service, entering a market currently dominated by Swiggy and Zomato. The move signals intensifying competition in app-based consumer services, where profitability pressures and market share considerations remain closely intertwined.

Fintech developments reflected both expansion and recalibration. India and Malaysia struck a cross-border payments arrangement enabling UPI-powered transactions, marking another step in the internationalisation of India’s digital payments infrastructure. Domestically, Rajya Sabha MP Raghav Chadha called for the legalisation and regulation of cryptocurrencies, reopening debate around the country’s stance on digital assets. Meanwhile, neo-banking platform Fi Money pivoted towards an AI-led B2B model amid funding constraints, illustrating the strategic shifts underway among consumer-focused fintech firms.

Public market and capital market activity remained active. NIIF exited part of its stake in Ather Energy through block deals, while Fractal Analytics’ IPO was subscribed 2.66 times by the third day, supported by strong institutional demand. These developments indicate a gradual reopening of liquidity avenues even as investor scrutiny remains firm.

Overall, the week’s developments point to an ecosystem that is diversifying and deepening, but also operating under closer regulatory and financial discipline. With compliance frameworks tightening, cross-border linkages expanding and capital becoming more selective, India’s startups appear to be navigating a phase defined less by rapid scale at any cost and more by sustainability, governance and strategic focus.

Funding News

DUSQ raises Rs. 24 crore in seed round led by Fireside Ventures

Premium innerwear brand DUSQ raised Rs. 24 crore in a seed funding round led by Fireside Ventures to expand its product portfolio and strengthen brand-led growth in the D2C segment.

Elixiir Foods raises $9 million in seed round

Nutrition startup Elixiir Foods secured $9 million in a seed round led by 3one4 Capital and Incubate Fund Asia to scale its product development and distribution across functional food categories.

Indigrid Technology closes Series A at Rs. 75 crore

Energy-tech startup Indigrid Technology closed its Series A round at Rs. 75 crore to advance its grid intelligence solutions and expand deployment capabilities.

W Health Ventures announces first close of Fund II at Rs. 550 crore

Healthcare-focused investment firm W Health Ventures announced the first close of its second fund at Rs. 550 crore, aimed at backing early-stage health-tech startups.

Nester raises Rs. 19 crore from Fireside Ventures and OTP Ventures

D2C home appliance brand Nester raised Rs. 19 crore in funding from Fireside Ventures and OTP Ventures to scale operations and broaden its product range.

Olyv secures $23 million to scale fintech platform

Fintech startup Olyv secured $23 million in funding to expand its multi-product financial services platform and strengthen its technology infrastructure.

Showroom B2B bags Rs. 150 crore

Apparel sourcing and manufacturing startup Showroom B2B raised Rs. 150 crore to enhance its supply chain network and support growth across domestic and export markets.

Care.fi raises $8 million to scale hospital revenue infrastructure

Health-tech startup Care.fi secured $8 million in funding to expand its AI-powered hospital revenue cycle management solutions.

ThirdAI Automation raises $3 million in seed funding

Semiconductor intelligence startup ThirdAI Automation raised $3 million in a seed round led by Endiya Partners and Capria Ventures to develop AI-driven chip analytics solutions.

Curapod raises Rs. 20 crore in Pre-Series A round

Healthcare startup Curapod raised Rs. 20 crore in a Pre-Series A funding round to expand its technology-enabled emergency response services.

PadCare Labs raises $3 million led by Rainmatter

Clean-tech startup PadCare Labs secured $3 million in funding led by Rainmatter to scale its sanitary waste recycling solutions.

BotGauge AI raises $2 million in funding

AI-driven testing startup BotGauge AI raised $2 million to expand its automated software testing platform and accelerate product development.

Supertails raises $30 million led by Venturi

Pet-care platform Supertails secured $30 million in funding led by Venturi to expand its veterinary services, clinics and quick-delivery operations.

Elevate Now secures Rs. 18 crore in seed funding

Health-tech startup Elevate Now raised Rs. 18 crore in seed funding to build a clinical weight-loss platform focused on structured obesity care.

Pandorum Technologies bags $18 million in Series B funding

Biotech startup Pandorum Technologies secured $18 million in a Series B round to advance its regenerative medicine and tissue engineering research programmes.

Mergers and Acquisitions

• USV acquires 79% stake in Wellbeing Nutrition for Rs. 1,583 crore: Pharmaceutical company USV acquired a 79% stake in Wellbeing Nutrition for Rs. 1,583 crore to expand its presence in the fast-growing nutraceuticals and consumer health segment.
• Zenyum and MakeO Toothsi to merge: Singapore-based Zenyum and India’s MakeO Toothsi agreed to merge to form a broader Asian consumer dental group focused on clear aligners and digital dentistry solutions.
• Bertelsmann takes majority stake in Lets Transport: Germany’s Bertelsmann acquired a majority stake in Indian logistics platform Lets Transport to strengthen its footprint in the country’s supply chain and mobility ecosystem.