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

This week, India saw rapid shifts across its startup ecosystem as AI ethics, regulatory scrutiny and market discipline took centre stage. From IPO activity and large-scale buybacks to shutdowns, funding rounds and policy interventions, the headlines reflected a maturing but cautious market.

Startup World: What’s New

India’s startup ecosystem saw a mix of regulatory action, strategic shifts and cautious market activity this week. Conversations around responsible AI came back into focus after Elon Musk’s chatbot Grok was barred from generating “undressed” images following global backlash, prompting renewed debate on content moderation, misuse and data privacy. Closer home, India also tightened cryptocurrency regulations to address concerns around money laundering and terror financing.

Several startups and scale-ups revisited their business strategies amid changing market realities. Unacademy announced plans to shut most of its offline centres and move to a franchise-led model beyond 2026, aiming to streamline operations. In contrast, AI fashion startup Alle, backed by Elevation Capital, shut down operations, reflecting the ongoing difficulty of building consumer-facing deep-tech businesses.

On the capital markets front, activity remained steady but measured. Shadowfax Technologies set its IPO price band at Rs. 118–124 per share ahead of its public issue opening on January 20, while Amagi Media Labs’ IPO saw limited traction on Day 2, with subscriptions at 13% and a slight uptick in grey market premium. SEBI’s approval of OnEMI’s IPO plans added to the growing pipeline, as Razorpay reportedly prepares for a public listing and looks to raise up to Rs. 4,500 crore.

Liquidity events continued as companies looked to support employees and early investors. Innovaccer completed a Rs. 600 crore ESOP buyback, while BrowserStack announced a $125 million share buyback covering around 500 employees and investors. Meanwhile, SoftBank reduced its stake in Ola Electric through open-market sales, continuing its broader pullback amid market volatility.

Despite the caution, long-term interest in India’s startup landscape remained visible. Dharana Capital raised a $250 million fund focused on Indian technology and consumer startups, and the Tamil Nadu government rolled out a Rs. 100 crore deep-tech policy to support innovation in areas such as AI, robotics and advanced manufacturing.

Funding News

Emversity Raises USD 30 Mn in Series A Funding

Edtech startup Emversity secured $30 million in Series A funding to expand its career-focused higher education programs and strengthen industry partnerships.

Truva raises Rs. 78 crore in fresh capital

Real estate services startup Truva raised Rs. 78 crore to scale operations and deepen its presence across key Indian markets.

Aule Space raises $2 mn to develop satellite life extension jetpacks

Space-tech startup Aule Space raised $2 million to build jetpack systems designed to extend the operational life of satellites.

Healthtech Startup RISA Labs Secures USD 11.1 Mn in Funding

RISA Labs raised $11.1 million to accelerate product development and expand its healthcare analytics platform globally.

Pee Safe raises $32 Mn led by OrbiMed

Personal hygiene brand Pee Safe secured $32 million in funding led by OrbiMed to support product innovation and international expansion.

Wint Wealth raises Rs. 250 Cr in Series B funding

Fintech platform Wint Wealth raised Rs. 250 crore in Series B funding to broaden its alternative investment offerings.

CloudSEK raises $10 million from Connecticut Innovations

Cybersecurity firm CloudSEK secured $10 million to enhance its threat intelligence capabilities and expand overseas.

Misochain Technologies raises Rs. 18 Cr in seed round led by Capital-A

Misochain Technologies raised Rs. 18 crore in seed funding to strengthen its blockchain-based enterprise solutions.

Indian Fragrance Brand Secret Alchemist Secures $3 Million

Secret Alchemist raised $3 million to scale manufacturing and boost its global fragrance portfolio.

BillionE Mobility Raises $25M to Scale Electric Truck Fleet

EV logistics startup BillionE Mobility raised $25 million to expand its electric trucking infrastructure across India.

Sukino raises $31 M in Series B round

Healthcare startup Sukino secured $31 million to enhance its out-of-hospital care services and geographic reach.

GreenTech Secures Rs. 30 Cr Funding Led by Transition VC

GreenTech raised Rs. 30 crore to accelerate deployment of sustainable energy solutions.

Atomgrid raises $7 million pre-Series A funding

Speciality chemicals platform Atomgrid raised $7 million to build a global supply chain and digital marketplace.

Liquidnitro Games Bags $19.1 Mn

Gaming studio Liquidnitro Games raised $19.1 million to fuel international expansion and IP development.

PumPumPum raises Rs. 18 Cr in pre-Series A round

Kids’ audio content platform PumPumPum secured Rs. 18 crore to grow its storytelling ecosystem.

Neeman’s raises $4 million in Series B2 round

Sustainable footwear brand Neeman’s raised $4 million to strengthen omnichannel retail and product innovation.

Bluecopa Raises $7.5 Million Series A

SaaS startup Bluecopa raised $7.5 million to expand its data analytics offerings for enterprises.

Mergers and Acquisitions

• State Street will acquire a 23% stake in Groww Mutual Fund for Rs. 580 crore, strengthening its presence in India’s asset management space.
• Agri-tech firm Mitra has merged with Tierra Agrotech in a deal valued at Rs. 787 crore, creating a larger rural-focused digital platform.
• MapmyIndia has acquired a 6.06% stake in indoor navigation startup Iwayplus, expanding its footprint in smart mapping technologies.