Indian Startups Regain Funding Momentum, Raise $134 Mn in Early June
Ecommerce and Fintech Sectors Lead Revival; IPO Activity Heats Up
Funding Landscape Shows Positive Rebound
After a sharp drop in the final week of May, Indian startups rebounded strongly, raising $134.4 Mn across 16 deals from June 2 to 7, 2025.
- This marks a 45% rise compared to the $92.9 Mn raised by 15 startups the previous week.
- The surge was mainly driven by activity in ecommerce and fintech, which collectively contributed more than 97% of the week’s total funding.
Sector-Wise Funding Highlights
Ecommerce led with $90.7 Mn raised across 8 deals, thanks to two significant rounds:
- Snitch raised $40 Mn in Series B led by 360One Asset, joined by Ravi Modi Family Office, IvyCap Ventures, and SWC Global.
- Udaan closed its Series G at $114 Mn, with $39 Mn included this week.
Fintech followed with $39.8 Mn raised across 5 startups:
- Stable Money secured $20 Mn in Series B led by Fundamentum Partnership.
- LoanTap, GyanDhan, Decentro, and Spense contributed to the sector’s strong showing.
Key Investor Movements
- 360One Asset emerged as the most active investor, backing both Snitch and Naagin.
- Seed-stage funding also saw a notable uptick, with 7 startups raising $7.7 Mn, more than double the previous week’s $3.2 Mn.
Fund and IPO Updates
VC Activity and New Funds:
- HealthKois launched a $300 Mn healthcare-focused fund targeting early and growth-stage startups.
- Caret Capital announced the first close at INR 160 Cr of its INR 400 Cr second fund.
IPO Developments signal a maturing startup ecosystem:
- Lenskart and Moneyview have both converted into public entities in preparation for their IPOs.
- Capillary Technologies got board approval for an INR 2,250 Cr IPO, while Aequs has pre-filed to raise $200 Mn.
- Zepto, however, has postponed its IPO plans to 2026 due to higher than expected burn.
Other Major Announcements
- Groww is set to raise $202.3 Mn in Series F, with participation from GIC and ICONIQ Capital.
- Nazara completed the acquisition of Smaaash for INR 126 Cr, expanding its gaming footprint.
- Zaggle revealed plans to acquire Dice Enterprises for INR 123 Cr, enhancing its B2B offerings.
- Pepperfry plans to raise $5 Mn from existing investors including GE, Norwest Venture Partners, and Goldman Sachs.
Outlook
The week’s data suggests a revival in funding sentiment, especially in consumer-facing and fintech verticals.
- With IPO activity gaining traction and early-stage funding improving, the ecosystem appears poised for a stronger Q2 2025.
- However, sustained momentum will depend on global macro trends and investor confidence in unit economics across sectors.
