Fintech and e-commerce push August startup funding to $960 Mn

Venture funding for Indian startups showed signs of recovery in August after slipping 38% in July. Although the total inflow remained under the $1 billion mark, the rebound was driven by late stage and growth stage deals. Fintech emerged as the top funded sector, followed by e-commerce and healthtech, while segments like agritech and edtech continued to see little to no activity. At the same time, the government’s crackdown on gaming companies has triggered shutdowns and forced several players to pivot, leaving the sector in a battle for survival.

According to data compiled by TheKredible, Indian startups raised a total of $961 million across 100 deals in August. Growth and late-stage funding accounted for $733 million from 24 deals, while early-stage funding contributed $228 million through 68 deals. Additionally, 8 rounds of funding remained undisclosed.

[M-o-M and Y-o-Y trend]

January was the highest funded month of 2025 with $1.76 billion. Since then, the total funding has crossed the $1 billion mark only twice (March and May), while August’s $961 million stood as the fourth highest in 2025. On a year-on-year basis, August 2025 ranked second in the last five years. The lowest August funding came in 2023 when it fell to $459 million.

[Top 10 growth-stage deals]

The top 10 growth and late stage deals brought in about $558 million in August. Weaver Services led with $170 million in housing finance, followed by Truemeds with $85 million in e-pharmacy and telehealth. 

The Sleep Company raised $56 million, Amnex Technologies secured $52 million, and Zepto closed $46 million. Darwinbox raised $40 million while RENÉE Cosmetics and R for Rabbit picked up $30 million and $27 million respectively. Fintech players Fibe and TransBnk rounded off the list with $26.5 million and $25 million.

[Top 10 early-stage deals]

Early stage startups raised close to $101 million dollars across the top 10 deals in August. Healthtech startup Arintra led the pack with a $21 million dollar Series A round for its medical coding platform. Entertainment venture Dashverse followed with $13 million, while Jeh Aerospace and home services marketplace Pronto secured $11 million each. AI focused firms Graas AI and WizCommerce raised $9 million and $8 million respectively. Vutto, DPDzero, and Brandworks Technologies bagged $7 million each. Refold AI closed the list with $6.5 million in seed funding.

[Mergers and acquisitions]

The month also saw a handful of notable acquisitions across fintech, healthtech, and automation. Visa platform StampMyVisa acquired travel tech firm Teleport, while fintech player Niyo picked up Kanji Forex. Debt recovery platform Credgenics strengthened its portfolio by acquiring Arrise. In the health space, dentaltech startup MakeO took over Apple Dental. Conversational automation firm Uniphore added to its capabilities with the acquisition of US-based Orby AI Inc.

[City and Segment wise deals]

Mumbai led the charts in August with $410.67 million across 15 deals, accounting for nearly 43% of the total inflow. Bengaluru followed with $178.16 million raised through 35 deals, while Delhi-NCR registered $74.62 million across 21 deals. Pune and Hyderabad contributed $74.7 million and $66.95 million respectively, together making up close to 15% of the overall funding.

Fintech dominated August funding with $314.41 million across 14 deals, accounting for nearly 33% of the total inflow. E-commerce followed with $195.68 million raised through 18 deals, making up over 20% of the funding. AI startups secured $96.51 million across 13 deals. Deeptech and foodtech lagged behind with $8.10 million and $6 million respectively, together contributing less than 2% of the overall funding. Healthtech, which saw only 3 deals, raised over $106 million and contributed 11% to the total funding. 

[Series-wise deals]

Series A rounds led the funding in August, raising $202.10 million across 22 deals, accounting for over 21% of the total inflow. Series B followed with $157.60 million from 10 deals. Seed and pre-seed startups together raised $60.96 million, while pre-Series A deals contributed $19.03 million.

[Layoffs, shutdowns, departures and key hires]

While only one official layoff has been recorded by Indian startups, there are unreported layoffs among gaming companies. Soon after the enactment of the Promotion and Regulation of Online Gaming Act, several gaming firms shut down their real money gaming verticals, while a few pivoted or entered new spaces. Similarly, although only two official layoffs have been announced, more companies are likely to follow. 

In August, the startup ecosystem experienced only a few departures. Simultaneously, more than 28 key executive positions were filled, signaling a wave of transformation. For a detailed overview of these changes, click here.

[Trends]

Job loss from RMG Ban: The impact of real money gaming platform shutdowns could be larger than anticipated. Reports suggest that India had around 400 RMG startups, which generated nearly $2.3 billion in annual taxes and supported over 200,000 jobs.

Rise of microdrama apps: Micro-drama apps are gaining momentum in India, offering bite-sized 1–2 minute stories for mobile users. WinZO recently entered the space with ZO TV, joining other players like Flick TV, Kuku FM’s Kuku TV, ShareChat’s QuickTV, Reel Saga, Reelies, Chai Bisket’s Chai Shots, and Eloelo.

TikTok hiring fuels comeback talk: Speculation about TikTok’s return to India has resurfaced after ByteDance posted job openings for its Gurugram office and the platform’s website became partially accessible to some users. However, the government has reportedly confirmed that the ban remains in effect and no unblocking order has been issued. TikTok is still not available for download or use in India.

Uber CEO praises Rapido: Uber CEO Dara Khosrowshahi has identified Rapido as a more formidable competitor than Ola in India. He noted that while Ola was once Uber's primary rival, it has become a "distant third" as Rapido has gained significant traction.

PhysicsWallah eyes IPO amid edtech slowdown: PhysicsWallah has received SEBI’s approval to file its DRHP and plans to raise around Rs 4,500 crore through an initial public offering. The listing could value the company between Rs 35,000 and 40,000 crore. This move comes at a time when the edtech sector is facing headwinds, with no funding deals reported in August.

[Conclusion]

Even though August saw a revival of sorts, don't bet on a sustained uptick for now. The secondary US tariffs, RMG ban, and key policy measures in the pipeline means that many investors and even some startups might prefer to wait out this period till the dust settles. So quite possible that September will be a dull month. The RMG ban in particular will weigh on many firms beyond just those in the business, as many of them had the who’s who of investors backing them. Besides follow on funding or fresh funding for new firms in the space, there is also the small matter of the impact on many fintechs for whom this was a sizeable and most profitable stack of the business. 

What will be seen as a positive would be easing of relations with China, including relaxing of some of the norms for Chinese investments into India. But that will take its own time as well. So September, much like the intense monsoon this year, could be a washout for many.