Funding and acquisitions in Indian startup this week [Dec 22- Dec 27]

This week 11 Indian startups raised a total of $95.54 million, comprising 4 growth-stage and 5 early-stage deals, while 3 startups kept their funding undisclosed.

In contrast, 31 startups had collectively secured about $363.9 million in the previous week.

[Growth-stage deals]

Growth and late-stage funding touched $73 million this week, led by CoreEL Technologies, which raised $30 million in a Series B round from ValueQuest Scale Fund with participation from 360 ONE Asset. Dugar Finance followed with $18 million in debt funding led by Switzerland-based Symbiotics and Indian banks, while PlasmaGen Biosciences raised Rs 150 crore led by ViNS Bioproducts, along with HNIs, family offices, pharma entrepreneurs, and existing investors. Quick service restaurant chain Wow! Momo also secured Rs 75 crore from Singularity AMC.

[Early-stage deals]

Early-stage startups raised around $22.5 million across five deals this week, led by PowerUp Money, which secured $12 million in a Series A round from Peak XV Partners. Other fundraises came from Prosperr.io, Naxatra Labs, LokSuvidha Finance, and Entuple E-Mobility.

Home decor solutions brand MagicDecor, D2C nutrition and wellness brand Supply6 and deeptech Quintrans also raised funding this week. though the amounts were undisclosed.

For a detailed funding breakdown, visitTheKredible.

[City and segment-wise deals]

By city-wise deal count, Bengaluru again led with 6 deals, followed by Chennai, Ahmedabad, Nagpur, Mumbai and Pune grabbing a deal each. 

Segment-wise, fintech startups led the week with 3 deals, followed by deeptech startups with 2 deals. Foodtech, AI, spacetech, Biotech, Mobility, Decor and e-commerce also bagged funding during the period.

[Series-wise deals]

This week seed rounds led the funding with 4 deals, followed by Series A and Series D with 2 deals each. Series F and pre-Series B funding also saw participation.

Visit TheKredible to see series-wise deals along with amount breakup, and more insights.

[Week-on-week funding trend]

On a weekly basis, startup funding dwindled by 74% to $95.54 million as compared to around $363.9  million raised during the previous week.

The average funding in the last eight weeks stands at around $243.39 million with 25 deals per week.

[Fund Launches]

Anicut Capital has closed Grand Anicut Fund IV at Rs 1,275 crore ($142 million), surpassing its Rs 1,000 crore target, to back startups across multiple sectors including consumer, engineering services, SaaS, manufacturing, hospitality. Nikhil Kamath and Kishore Biyani have jointly launched The Foundery, a residential business launchpad aimed at identifying and building early-stage Indian startups.

VisitTheKrediblefor more details

[Mergers and Acquisitions]

Brainbees Solutions, the parent company of FirstCry, has announced the acquisition of K.A. Enterprises (Hygiene) through its subsidiary Swara Baby, as the company expands its presence in the hygiene products segment. Visual telematics startup Cautio has acquired BYTES, an AI-driven automotive startup focused on two-wheeler ADAS, to strengthen and expand its two-wheeler safety solutions. Omnichannel home interior and renovation platform Livspace acquired Mumbai-based LED lighting solutions provider Abby Lighting in a cash and stock deal.

[ESOP Buybacks]

Stockbroking and investment platform Dhan has completed a company-led ESOP buyback worth nearly Rs 50 crore, providing liquidity to around 180 employees.

[Layoffs]

Bengaluru-based conversational AI startup Yellow.ai has laid off over 100 employees in recent weeks, impacting nearly 30% of its workforce, as it pushes toward greater AI-driven automation.

[New Launches and Partnerships]

▪️ Marwari Catalysts Group launches Thrive 10.0 to support DefenceTech and AgriTech startups in India

▪️ NUCFDC and IIMA Ventures launches Bharat COOPATHON 2025

▪️ Weskill launches Wena AI, a fully autonomous education system built in India

[Financial result this week]

▪️ Farmley nears Rs 400 Cr revenue in FY25, losses under control

▪️ VLCC-owned Ustraa’s revenue declines to Rs 73 Cr in FY25; losses cut by 72%

▪️ Foxtale’s revenue nears Rs 200 Cr in FY25; losses jump 38%

▪️ Kuku FM reports Rs 242 Cr revenue in FY25; spends Rs 285 Cr on marketing

▪️ Atomberg slashes losses by 41% in FY25 after sharp cut in employee costs

▪️ Medibuddy posts Rs 725 Cr revenue in FY25, narrows losses by 37%

▪️ Spice brand Zoff crosses Rs 100 Cr revenue in FY25; slips into losses

[News flash this week]

▪️ Heat of the ED: How Indian startups faced enforcement action in 2025

▪️ Zepto board approves Rs 11,000 Cr raise ahead of confidential IPO filing

▪️ RBI shows flexibility on fintech payment licence clearances in 2025

▪️ PhonePe gains market share in November; Google Pay sees marginal dip

▪️ PayNearby gets NPCI’s TPAP licence, looks to expand UPI access across Bharat

[Summary]

On a weekly basis, startup funding dwindled by 74 to $95.54 million as compared to around $363.9  million raised during the previous week.

UPI recorded 20.47 billion transactions worth Rs 26.32 lakh crore in November, according to NPCI data. PhonePe led the market, processing 9.33 billion transactions, accounting for 45.6% of total volume and 48.5% of total value

Quick commerce firm Zepto is moving closer to the public markets after its board approved a plan to raise up to Rs 11,000 crore through a fresh equity issue and an offer for sale (OFS), as it prepares to confidentially file its draft red herring prospectus (DRHP).

The National Urban Cooperative Finance and Development Corporation Ltd (NUCFDC), the umbrella organisation for Urban Cooperative Banks (UCBs), in collaboration with IIMA Ventures, has launched Bharat COOPATHON 2025.

Marwari Catalysts Group has launched Thrive 10.0, the latest edition of its flagship founder-support programme, with a strong focus on DefenceTech and AgriTech startups from Tier II and III cities.

Weskill has launched Wena AI, India’s first fully autonomous education system, designed to train students end-to-end without human teachers. The platform goes live on December 25, 2025, aiming to address challenges of scale, access, and consistency in education delivery.