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

This week, India’s startup ecosystem was shaped by AI policy developments, regulatory tightening, steady capital deployment and a series of strategic acquisitions, signalling a market that continues to expand while placing greater emphasis on governance, infrastructure and long-term sustainability.

Startup World: What’s New

India’s technology and startup landscape saw a measured but consequential week, shaped by policy direction, regulatory signalling and capital activity across artificial intelligence, fintech and digital infrastructure.

At the national level, the AI Impact Summit in New Delhi concluded with the adoption of the New Delhi Declaration, alongside announcements linked to an estimated $200 billion in commitments and investment intent. The summit, attended by government and industry representatives, underscored India’s ambition to play a larger role in global artificial intelligence development while framing AI as a public-interest technology rather than a purely commercial pursuit.

The government’s wider strategic positioning has been described by some commentators as part of an emerging “Pax Silica” order, in which semiconductor capability, data infrastructure and AI systems are increasingly central to geopolitical influence. While India has secured partnerships and investment, analysts note that deeper integration into global technology supply chains may also bring long-term strategic trade-offs.

In the infrastructure domain, Railways Minister Ashwini Vaishnaw unveiled a new Rail Tech Policy, including a single-window portal intended to streamline engagement between innovators and the national transporter. The move signals a continued push to formalise startup participation in public infrastructure modernisation.

Regulatory messaging also sharpened. The Centre stated that digital platforms must assume full responsibility for the content they host, reinforcing expectations around compliance and intermediary accountability. Separately, the government began piloting a central bank digital currency-based food subsidy distribution programme in Puducherry, marking another step in the practical testing of the digital rupee for welfare transfers.

In financial markets, several companies undertook balance sheet and capital-raising measures. Infra.Market announced plans to raise Rs. 1,250 crore through non-convertible debentures, backed by pledged assets and promoter stakes, reflecting tighter liquidity conditions and a preference for structured debt. Info Edge approved a commitment of up to Rs. 250 crore to B8 Fund I, with Smartweb acting as sponsor and investment manager, indicating continued institutional participation in early-stage investing despite a more selective funding climate.

International technology firms also advanced discussions in India. Apple is reported to be in talks with domestic banks to introduce a payment service in the country, a move that would expand its financial services footprint in one of its fastest-growing markets.

Corporate restructuring and listing preparations continued among domestic ventures. Brnd.me completed its merger from Singapore to India and signalled plans to pursue an initial public offering within 12 to 18 months, reflecting a broader trend of companies redomiciling ahead of public market entry.

Meanwhile, Yes Bank disclosed approximately $280,000 in unauthorised forex card transactions, drawing attention to operational risk controls within the banking and payments ecosystem.

Taken together, the week’s developments point to an ecosystem evolving within firmer institutional and regulatory parameters. Government initiatives in AI, digital currency and infrastructure reform indicate sustained state involvement, while corporate actions — from debt issuance to IPO preparation — reflect a more disciplined capital environment. The direction of travel suggests continued expansion in technological capability, accompanied by closer scrutiny and stronger emphasis on governance and financial resilience.

Funding News

FREED raises Rs. 60 crore led by Aavishkaar Capital

Debt resolution platform FREED raised Rs. 60 crore in a funding round led by Aavishkaar Capital to expand its financial services offering and scale operations.

Spintly raises $8 million in Series A led by Accel

Access control solutions provider Spintly secured $8 million in a Series A round led by Accel to strengthen product development and expand internationally.

Sauce VC closes Rs. 750 crore Opportunities Fund

Sauce VC announced the final close of its Rs. 750 crore Opportunities Fund, aimed at backing high-growth consumer and retail-focused portfolio companies.

Peak XV Partners leads $2.5 million round in Companion Labs

Companion Labs raised $2.5 million in a funding round led by Peak XV Partners to support development of its applied artificial intelligence platform.

Gushwork AI raises $9 million in seed round led by Susquehanna Asia VC

Gushwork AI secured $9 million in seed funding led by Susquehanna Asia VC to build out its AI-driven automation tools.

MeltPlan raises $10 million in seed round led by Bessemer Venture Partners

Enterprise AI platform MeltPlan raised $10 million in a seed funding round led by Bessemer Venture Partners to advance its technology stack.

ZeroHarm Sciences raises Rs. 65 crore in Series A

Industrial safety technology firm ZeroHarm Sciences secured Rs. 65 crore in a Series A round to support international expansion.

Z47 leads $6.6 million investment in Wootz.work

Wootz.work raised $6.6 million in a funding round led by Z47 to scale its workforce management platform.

Home Essentials raises Rs. 70 crore in pre-Series B led by 360 ONE Asset

Home Essentials secured Rs. 70 crore in a pre-Series B round led by 360 ONE Asset to expand its product range and distribution network.

Pulse raises $4 million led by 3one4 Capital

Medical equipment startup Pulse raised $4 million in a funding round led by 3one4 Capital to broaden its healthcare technology offerings.

Armatrix raises $2.1 million to build AI-native robotics

Deep-tech startup Armatrix secured $2.1 million in funding to develop AI-native robotic systems for industrial use.

Puresta raises $3.7 million

Dermatology platform Puresta raised $3.7 million to develop its AI-enabled, vertically integrated skincare model.

Prayaan Capital raises Rs. 110 crore from Peak XV Partners

Prayaan Capital secured Rs. 110 crore in funding from Peak XV Partners to expand its lending operations.

Xflow raises $16.6 million in Series A

Cross-border payments platform Xflow raised $16.6 million in a Series A round to strengthen its international payments infrastructure.

HireBound raises $2 million in seed round led by Kalaari Capital

HireBound secured $2 million in seed funding led by Kalaari Capital to enhance its recruitment technology platform.

Oncare raises Rs. 27 crore in Series A led by Sky Impact Capital

Oncare raised Rs. 27 crore in a Series A round led by Sky Impact Capital to expand access to oncology services.

Basil raises $2 million led by Prime Venture Partners

Children’s products brand Basil secured $2 million in funding led by Prime Venture Partners to scale its retail presence.

Wishlink raises $17.5 million in Series B led by Vertex Ventures

Wishlink raised $17.5 million in a Series B round led by Vertex Ventures to expand its creator-led commerce platform.

DATOMS raises Rs. 25 crore

Industrial IoT company DATOMS secured Rs. 25 crore to support expansion of its enterprise technology platform.

Mojro raises $3 million led by IAN Alpha Fund

Mojro raised $3 million in a funding round led by IAN Alpha Fund to strengthen its logistics and supply chain solutions.

MyDesignation raises Rs. 40 crore from RPSG Capital Ventures and Veltis Capital

Direct-to-consumer fashion brand MyDesignation secured Rs. 40 crore in funding from RPSG Capital Ventures, Veltis Capital and other investors to expand its product portfolio and distribution.

Mergers and Acquisitions

• upGrad has acquired early-talent marketplace Internshala to strengthen its skilling and career pathways offering for students and young professionals.
• BillDesk has agreed to acquire Worldline’s India payments business in a deal valued at around $70 million, consolidating its position in the domestic digital payments market.
• Capillary Technologies is set to acquire loyalty platform SessionM from Mastercard for $20 million to expand its customer engagement and data capabilities globally.
• Deepinder Goyal’s aviation venture LAT Aerospace has acquired defence technology firm Sharang Shakti as part of its expansion into aerospace and advanced systems.
• ASM Technologies has partnered with Myelin Foundry to develop edge-based AI solutions for manufacturing, alongside acquiring a 20 per cent stake in the company.