A contractor who runs out of cement, electrical wire or waterproofing material can lose an entire day of work. HomeRun is built around that problem. It stocks more than 2,000 products across Bengaluru and promises delivery in 60 to 120 minutes, with no minimum order. The company has now raised another $12 million, led by Nexus Venture Partners.

There is a useful business here, but “Blinkit for construction materials” makes it sound simpler than it is.

HomeRun was processing 200–250 orders a day in February, with an average order value of around ₹7,000. At that run rate, it was handling roughly ₹51-64 crore of annualised order value. A ₹7,000 basket certainly gives it more room for delivery costs than grocery quick commerce, where orders are often below ₹600.

But order value is not the same as available margin. Cement, plywood and wires can carry modest retail margins while being heavy, bulky and expensive to store and move. HomeRun charges ₹99–199 for many smaller orders and offers free delivery above ₹10,000. That fee may not cover the full cost of moving low-margin materials through city traffic, particularly when the order contains a single cement bag or a large board.

The larger problem is customer behaviour. India is not a large do-it-yourself market. Most homeowners leave procurement to contractors, and contractors already buy from local dealers who offer negotiated rates, informal credit and personal accountability. A platform can win emergency purchases, but replacing the contractor’s main supplier is much harder.

That leaves HomeRun at risk of getting the most difficult orders: last-minute requirements, small quantities and products that the local dealer does not have. The predictable, higher-margin project purchases may stay offline.

The market is large enough. India’s building-materials industry was estimated at about $44.4 billion in 2025. Infra.Market generated ₹18,472 crore in FY25 revenue, showing that organised companies can build scale. But Infra.Market did so through manufacturing, private labels, acquisitions and a large retail network, not simply faster delivery.

There is also a warning from Canada’s RenoRun. It offered rapid construction-material delivery, raised $142 million in 2022 and shut operations the following year while seeking a sale of its assets. Capital could build warehouses and delivery capacity, but not enough profitable demand.

HomeRun can become a strong emergency-procurement business. To become something larger, it will need contractor credit, project accounts, repeat-order tools and deeper control over procurement. Without those, it remains a convenient delivery layer sitting between powerful manufacturers, adaptable local dealers and price-sensitive contractors.

Let’s go through what else is happening in Indian startup world - Grab your simmering cup of StartupChai.in and unwind with our hand-brewed memes.

“Bhakti Mein Shakti”: Ola Electric Shifts To Dealer-Led Sales Model To Expand Reach

Ola Electric is handing over the keys to dealers as it shifts from company-run outlets to a partner-led sales and service network across India.

The EV maker plans to rapidly expand its footprint before Diwali 2026, while its own stores focus more on brand experience.

Read more here

“Ho Raha Bharat Nirman”: Govt Disburses ₹276 Cr To Set Up Four AI Centres Of Excellence

The government has disbursed ₹276 Cr to set up four AI Centres of Excellence, strengthening India's push for homegrown artificial intelligence. IIT Kanpur, IIT Ropar and IISc Bengaluru are among the institutions receiving the funds.

The centres will focus on research, indigenous AI models and collaborations with startups, industry and government bodies.

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“Jab Miya Bibi Ho Raazi”: Dronetech Startup Garuda Aerospace Gets SEBI Nod For ₹750 Cr+ IPO

Garuda Aerospace has secured SEBI's approval for its ₹750 Cr-plus IPO, bringing the dronetech startup closer to the stock market.

The company had confidentially filed its draft papers in April, with the issue set to include a fresh raise and an offer for sale.

Read more here

“Din Dugni Raat Chaugni”: Swiggy Bets On Toing, Instamart To Achieve ₹10,000 Cr Adjusted EBITDA By FY31

Swiggy is aiming for ₹10,000 Cr in adjusted EBITDA by FY31, banking on affordability initiatives like Toing and the rapid growth of Instamart.

The company expects profits from its food delivery business to jump fivefold over the next five years.

Read more here

“IPO Mein Katauti”: Shiprocket Trims IPO Size By 31% To Rs 1,617 Cr

Shiprocket has reduced its IPO size by 31% in its RHP, cutting the issue to Rs 1,617.48 Cr from the earlier Rs 2,342.35 Cr.

The issue opens on August 12 and closes on August 14, with a price band of Rs 92-97 per share.

“Aapas Mein Baant Lena”: Super.money Launches splitStore Checkout Credit Platform

UPI platform Super.money has launched splitStore, a checkout-based credit product that lets consumers split purchases into interest-free repayments through regulated lenders.

Read more here

“Doctor Saab Deal Pakki?”: Practo In Talks To Acquire HealthPlix

Practo is in talks to acquire healthtech SaaS startup HealthPlix for $25-30 Mn. The acquisition would strengthen Practo’s enterprise healthcare software business ahead of its planned pre-IPO fundraise.

HealthPlix offers EMR and clinical workflow software for doctors and was last valued at around $60 Mn.

Read more here

1. Nazara Technologies will raise ₹733.5 Cr through a preferential share issue to fuel acquisitions and future growth.

   Read more here

2. Consint.AI has raised ₹22 Cr in a Series A round to take its healthcare and insurance automation platform global.

   Read more here

3. Piper Serica's ₹800 Cr Bharat Tech Fund has reached its first close at ₹300 Cr, reflecting growing investor appetite for India's deeptech ecosystem.

   Read more here

4. HomeRun has raised $12 Mn in a Series A+ round led by Nexus Venture Partners to scale its quick-commerce platform for construction materials.

   Read more here

5. Skyroot has invited bids to raise $200 Mn at a valuation of $2 Bn, taking an unconventional route to its next funding round.

   Read more here

6. Pinegap has raised $8 Mn from Stellaris and others to expand its agentic AI platform for market analysts and portfolio managers.

   Read more here

7. Typsy Beauty has raised ₹20 Cr in a funding round led by Saama Capital to strengthen its quick-commerce strategy and expand its offline presence.

   Read more here

8. Pain-care startup Zanskar is reportedly in talks to raise around $6 Mn in a funding round led by Bessemer Venture Partners.

   Read more here

9. Cooling solutions startup Optimist is reportedly in talks to raise $10 Mn from TDK Ventures, which could join the company as a new investor.

   Read more here

10. Deeptech startup Mitti Labs has raised $9.5 Mn in a Series A round led by Aramco Ventures, taking its total funding to $12.5 Mn.

    Read more here

11. Food-delivery startup Amigo has raised ₹4.5 Cr in a pre-seed round led by Foxhog and has launched its services in Kolkata.

    Read more here

12. Chennai-based deeptech startup Solinas Integrity has raised $5.5 Mn in a Series A1 round co-led by Mela Ventures and Hero Enterprise Family Office.

    Read more here

13. BlackSoil has provided ₹80 Cr in debt financing to support Mintoak's acquisition of Dubai-based loyalty-tech firm ICC Loyalty.

    Read more here

14. KKR-backed Leap India has raised ₹371.3 Cr in a pre-IPO placement from investors including GIC's subsidiary Gamnat, Dymon Asia and promoter Sunu Mathew.

    Read more here

15. AI-powered parking management startup Get My Parking is set to raise ₹40 Cr from existing backer IvyCap Ventures in an extended Series A round.

    Read more here

Profound is being built by two experienced operators who have spent years inside some of India’s largest consumer internet companies. Anuj Rathi has worked at Flipkart, Swiggy, Jupiter and Cleartrip, while Prashant Parashar has led technology teams at Zomato, Ola, Snapdeal and Delhivery. Their network has helped attract an unusually strong group of angel investors, including Sriharsha Majety, Nandan Reddy, Pankaj Chaddah, Harshil Mathur, Kunal Shah and Bhuvan Gupta. That gives the company credibility, access to early users and a useful entry into India’s startup talent market.

The business itself still needs to prove much more.

Profound asks users to spend around 30 minutes speaking to an AI system. It then creates an “AI Rep” that understands their experience, working style and career goals, and uses that information to suggest jobs, introductions and professional connections.

The idea addresses a real weakness in resumes and LinkedIn profiles. Job titles and skill lists say little about judgment, ambition or how someone works with others. A detailed conversation can capture more context than a form.

But it still captures what people say about themselves. That is not the same as knowing how well they perform. Unless Profound can verify claims through references, work samples, employment history and actual outcomes, it may end up creating a more detailed and better-written resume rather than a better professional identity.

The technology is also unlikely to remain special for long. Voice conversations, memory and personal agents are already becoming standard features in products from the large AI companies. LinkedIn and Naukri already own the professional profiles, job listings, recruiters and daily user behaviour that Profound will need to build from scratch.

LinkedIn has more than 1.3 billion members. Naukri has over 118 million candidate profiles and thousands of enterprise recruitment customers. Both can add similar AI features without asking users to create another profile on a new platform.

There is also a conflict inside the product. A professional’s AI Rep is supposed to represent that person favourably. An employer’s AI Rep is supposed to judge candidates objectively. Profound will eventually have to decide whether it is acting as an agent, a neutral matching platform or a recruitment marketplace.

Money could complicate this further. Employers are the obvious paying customers, but if they fund the platform, professionals may reasonably ask whose interests their representative is serving.

Profound’s founders and investors give it an excellent start. Its real advantage, however, will not come from the 30-minute conversation. It will come from building a trusted professional network with verified information and useful introductions.

Without that network, the AI Rep is a feature that LinkedIn, Naukri or a large AI company can copy.

Let’s go through what else is happening in Indian startup world - Grab your simmering cup of StartupChai.in and unwind with our hand-brewed memes.

“Sapne Dekhe Bade Bade”: OfBusiness Set To File DRHP For $800 Mn IPO By Mid-November

OfBusiness is gearing up to file its DRHP by mid-November as it revives plans for an IPO worth up to $800 Mn.

The IPO could include a fresh issue of up to $260 Mn, with the rest as OFS by existing investors.

Read more here

“Miliye Maharathiyo Se”: Meet The 20 Startups Selected For Google Play Accelerator India

Google has selected 20 Indian startups for the 2026 cohort of its Google Play Accelerator India program.

The three-month, equity-free initiative will offer mentorship on AI, app quality, security, growth and monetization. Launched in 2024, the accelerator is now entering its third batch.

Read more here

“Waqt Rehte Nikal Lo”: Elevation Capital Offloads Paytm Shares Worth ₹2,038 Cr

Elevation Capital has sold Paytm shares worth ₹2,038 Cr through two entities at ₹1,367.8 apiece. The move comes amid a rally in Paytm's stock following its strong Q1 performance.

Read more here

“Apni Toh Aise Taise”: Elevation Capital, Peak XV Partners Sell Meesho Stock Worth ₹1,949 Cr

Elevation Capital and Peak XV Partners have sold Meesho shares worth ₹1,949 Cr in a series of block deals.

Global investors such as ADIA, Fidelity, Morgan Stanley and Goldman Sachs picked up the stake at ₹186 per share.

Read more here

“Get Back To Where You Belong”: Cars24, DPIIT Partner to Support AI and Mobility Startups

Cars24 has partnered with DPIIT to support startups working in AI, mobility and road-safety innovation.

The collaboration will offer founders access to mentorship, skilling programmes and investment opportunities.

Read more here

“Aao Twist Karein”: SAP Labs India Hosts Startup Social 2026

SAP Labs India hosted Startup Social 2026, bringing together a new cohort of startups building across AI, robotics, energy and cybersecurity.

The program features ventures such as ANSCER Robotics, Drishya AI, QNu Labs and Pulse Energy.

Read more here

“Purana Saal Naya Maal”: BLUE launches AI-native Video Infrastructure Platform

Bengaluru-based startup BLUE has launched an AI-native video infrastructure platform powered by a semantic codec that understands video content.

The technology can reduce bandwidth usage by up to 90% and slash storage costs by as much as 10x.

Read more here

“Tumpe Dil Aagya”: ET Now Acquires OpiGo To Expand Its Investment Platform

ET NOW has acquired fintech startup OpiGo to strengthen its push into investor-focused financial services.

The deal will help ET NOW Pro offer trade ideas, market insights and premium financial content under one platform.

Read more here

“Shopping Mein AI Ka Tadka”: Reliance Retail Acquires Fashion Discovery Platform Furrl

Reliance Retail Ventures has acquired Bengaluru-based fashion discovery startup Furrl in an all-cash deal for an undisclosed amount.

Furrl’s team, app and proprietary AI styling platform will be integrated into Reliance Retail’s digital commerce offerings.

Read more here

1. River Mobility has raised $120 Mn in Series C equity and venture debt led by Elev8 Venture Partners and Claypond Capital. The EV maker will expand capacity, set up a new plant and launch new products.
   Read more here

2. Gurugram-based AI concierge startup Hulp has raised $2.6 Mn in a seed round led by Sparrow Capital and BITKRAFT Ventures.

   Read more here

3. InRisk Labs has raised $27 Mn in a Series A round as its subsidiary EarthRe secured an IFSCA reinsurance license.

   Read more here

4. Lighthouse Canton has closed a ₹105 Cr private credit investment in Emerald Leisures through its India-focused credit fund.

   Read more here

5. Deep-tech energy startup Adiabatic Technologies has raised ₹8.3 Cr in a seed round co-led by Malpani Ventures and Avinya Ventures.

   Read more here

6. C2C marketplace Vingo has raised ₹10 Cr in a seed round led by IndiaQuotient, with participation from Inuka Capital and Credgenics founder Rishabh Goel.

   Read more here

7. Defense-tech startup Zoppler Systems has raised ₹6.5 Cr in a funding round led by Finvolve, with participation from India Accelerator.

   Read more here

Vaaree’s ₹65 crore Series A gives the company more room to grow, but it does not remove the basic problems that have made online home decor a difficult business in India.

The idea behind Vaaree makes sense. It works directly with more than 200 factories and artisans, carries over 80,000 products and tries to make an overcrowded category easier to shop through curated collections. Its VibeCheck tool is meant to help customers visualise rooms and find products that fit a particular look. The company also claims return rates below 5%, which would be useful in a category where reverse logistics can quickly eat into margins.

Still, the business remains very small compared with the capital it is consuming. Revenue grew from about ₹8.8 crore in FY24 to ₹18.1 crore in FY25, while losses increased from ₹15.8 crore to ₹25.8 crore. In other words, Vaaree is losing more than it earns, even before it builds a large store network or offers next-day delivery across multiple cities.

Home decor is not an easy category to scale online. People do not buy lamps, curtains or bedsheets every month. Styles are subjective, the catalogue is endless, and customers can compare similar products across Amazon, Flipkart, Myntra, Meesho, Nestasia and neighbourhood stores. Vaaree therefore has to keep spending on marketing to stay visible, but repeat purchases may take months to arrive.

Buying directly from factories can improve margins, though it is not much of a moat by itself. The same factories can supply several brands and marketplaces. AI-based moodboards may improve conversion, but such tools will soon become common across shopping platforms. The real value will come only if Vaaree uses customer behaviour to forecast demand, launch its own products and avoid carrying inventory that does not sell.

The history of Indian online furniture and decor should make investors cautious. Urban Ladder raised more than $100 million before Reliance acquired most of it for ₹182 crore. Pepperfry raised over $300 million and was later acquired at a fraction of its earlier expectations. Both built known brands, but neither produced the kind of independent outcome early investors had once imagined.

Vaaree could eventually interest a paint company, retailer or larger commerce platform looking for suppliers, customers and a home-decor brand. That outcome, however, will depend on more than catalogue size or social-media visibility.

The new money should help Vaaree build private labels, improve repeat purchases and make fulfilment cheaper. Without that, it may grow into a recognisable brand while remaining a weak business.

Let’s go through what else is happening in Indian startup world - Grab your simmering cup of StartupChai.in and unwind with our hand-brewed memes.

“Ye Dil Tumpe Aa Gaya”: Nykaa To Acquire Majority Stake In D2C Skincare Brand Aminu

Nykaa is doubling down on premium beauty, signing a deal to acquire a 51% stake in D2C skincare brand Aminu for up to ₹32 Cr as it expands its portfolio of in-house labels.

The acquisition strengthens Nykaa's position in the fast-growing premium skincare market.

Read more here

“Hum Tumhare Hai Sanam”: Mintoak Acquires UAE-Based ICC Loyalty To Expand Fintech Stack For Banks

Mintoak is widening its fintech playbook with the acquisition of Dubai-based ICC Loyalty, adding rewards and loyalty features to its banking platform while expanding across the Middle East, Africa, Eastern Europe and Southeast Asia.

Read more here

“Purana Saal Naya Maal”: Livlong 365 launches SurgiCare for Planned Surgery Coordination

Livlong 365 has launched SurgiCare, a new service designed to help patients navigate planned surgeries from diagnosis to recovery.

Each patient gets a dedicated care manager to handle consultations, medical reports and hospital coordination.

Read more here

“AI Ka Daily Soap”: Mohalla Tech To Invest Up To Rs 100 Cr In AI Micro-Dramas

Mohalla Tech, parent of ShareChat, Moj and Quick TV, plans to invest up to Rs 100 Cr through 2026 to scale AI-generated micro-dramas.

AI-generated micro-dramas already form nearly 10% of its content mix, and the company expects this to rise to 30-40% by 2026-end. It also expects AI-led production to cut production costs by up to 70%.

Read more here

“Aaiye Aapka Intezaar Tha”: Razorpay Hires Four Senior Engineering Leaders For AI Roles

Razorpay has hired four senior engineering leaders for AI roles.The move comes as the fintech unicorn continues building an AI-first technology stack around payments, banking and platform infrastructure.

Read more here

1. Home decor marketplace Vaaree has raised ₹65 Cr in a Series A round co-led by Hero Enterprise and Cap Alpha Ventures.

   Read more here

2. GetVantage has raised ₹63 Cr in a Series A1 round to scale its MSME lending platform and expand its financing capacity beyond ₹700 Cr.

   Read more here

3. AI-native CRM startup Superleap has raised ₹36 Cr in a pre-Series A round led by Peak XV's Surge.

   Read more here

4. Agentic AI startup Kily has raised ₹30 Cr in a funding round led by Sorin Investments, with participation from Razorpay and Wyser Capital.

   Read more here

5. Founded by former Swiggy and Zomato executives, AI startup Profound has raised $1.5 Mn in seed funding to build an AI representative for career discovery and networking.

   Read more here

6. Defence-tech startup Zoppler Systems has raised ₹6.5 Cr in a funding round co-led by Finvolve and India Accelerator.

   Read more here

7. GenAI startup Simplismart is set to raise nearly ₹97 Cr ($9 Mn) in a Series B round led by Dallas Venture Capital, with participation from Accel India, Shastra VC and Micromax Informatics.

   Read more here

8. Stable Money has raised Rs 136 Cr in its Series C round led by The Fundamentum Partnership, with Peak XV Partners, RTP Global and Z47 participating.
   Read more here

9. Pune-based legal AI startup, NYAI has raised $1.5 Mn, about Rs 13 Cr, in seed funding from Indian family offices and strategic angel investors.
   Read more here

The instant home-help market has grown far faster than most people expected. In July, InstaHelp, Snabbit and Pronto together handled close to five million bookings. Urban Company and Snabbit have both crossed 100,000 jobs on a single day. For a category that barely existed at scale a year ago, that is serious demand.

The business, however, still looks difficult.

This is often compared with quick commerce, but the comparison only goes so far. Groceries can sit in a dark store until someone orders them. A worker’s time cannot be stored. To promise help within 10 or 15 minutes, platforms need enough workers waiting close to residential clusters even when demand is uneven. Every idle hour adds to the cost.

Urban Company’s numbers show how expensive this can get. InstaHelp completed 3.82 million orders in the June quarter and generated ₹53 crore in net transaction value. That works out to roughly ₹139 per order. Its adjusted EBITDA loss was ₹132 crore, or about ₹346 for every order delivered.

Snabbit’s economics are also improving, but it still loses below ₹250 per job while earning a little over ₹130 in net order value. These companies are spending much more on each booking than the customer currently pays.

Competition makes pricing harder to fix. Urban Company can use profits from its older home-services business to fund InstaHelp. Snabbit has raised around $112 million. Pronto has also raised aggressively and is prepared for another two to three years of burn. Promotional prices as low as ₹29 may bring customers in, but they also make it difficult to later charge what the service actually costs.

There is another problem. Households usually want the same reliable person to return. Workers also prefer regular customers. Once that relationship develops, both sides may decide to deal directly and remove the platform from the transaction. The app can prevent this by rotating workers, but that weakens consistency, which was the reason many customers booked in the first place.

Worker protection will also become more expensive as the category grows. These platforms influence pricing, attendance, uniforms, locations and performance. At that point, insurance, safety, paid downtime and social-security contributions cannot remain optional talking points.

There is a real market here. Urban households clearly want flexible domestic help. But current order volumes say more about demand than business quality. The category will begin to look sustainable only when customers pay more, workers spend less time waiting, repeat usage remains strong and fewer bookings move outside the platform.

Let’s go through what else is happening in Indian startup world - Grab your simmering cup of StartupChai.in and unwind with our hand-brewed memes.

“Swagat Nahi Karoge Humara”: Flipkart To Launch Food Delivery Service By Mid-August With 10-11% Commission Model

Flipkart is gearing up to enter Bengaluru’s food delivery race by mid-August, and its biggest selling point is a restaurant commission of just 10-11%.

The rollout will begin as a pilot, with orders likely available through the main Flipkart app as well as a separate standalone application.

Read more here

“Hum Saath Saath Hai”: IPO-Bound Imarticus Learning Acquires Singapore’s BELLS Institute For ₹800 Cr

IPO-bound Imarticus Learning has acquired Singapore’s BELLS Institute for an estimated ₹800 Cr in its first international deal.

The acquisition gives the edtech firm a stronger foothold in Southeast Asia while boosting its AI and workforce training ambitions.

Read more here

“Abki Baar 1500 Paar”: Battery Smart To File DRHP In September-October For IPO

Battery Smart is eyeing a September-October window to file its DRHP with SEBI for its upcoming IPO.

The startup already operates more than 1,500 swapping stations across 75+ cities and is said to have reached operational break-even in FY26.

Read more here

“Aaj Kuch Toofani Karte Hai”: Shiprocket IPO Likely This Month At ₹7,000 Cr Valuation

Shiprocket is reportedly set to hit the public markets within weeks at a valuation of around ₹7,000 Cr, nearly 30% lower than its last private-market mark.

The company plans to raise ₹1,100 Cr through a fresh issue, alongside an offer-for-sale worth up to ₹1,242.3 Cr.

Read more here

“Hum Bhi Hain Josh Mein”: Spinny Converts Into Public Company Ahead Of Listing Plans

Used car retailing platform Spinny has converted into a public company, changing its parent entity from Valuedrive Technologies Private Limited to Valuedrive Technologies Limited.

The move typically precedes an IPO. Spinny is selling close to 15,000 cars every month across 25 cities, and is expected to close FY26 with revenue of around Rs 6,000 Cr.

Read more here

“Purana Saal Naya Maal”: Astrotalk Store claims Rs 1 Cr daily GMV, launches dedicated gemstones platform

Astrotalk Store has launched a dedicated gemstones platform as it expands deeper into spiritual commerce. The company claims its ecommerce arm has reached around Rs 1 Cr daily GMV and processed 1.6 Mn orders in 2025.

The platform will offer precious and semi-precious stones with lab certification, astrological consultation and a replacement policy.

Read more here

1. EV components maker Matel Motion & Energy Solutions has raised ₹130 Cr in a Series B round to ramp up manufacturing, deepen R&D and speed up product development. The funding reflects growing investor interest in startups powering India's EV localization push.

   Read more here

2. Yuvraj Singh has invested in Healthians founder Deepak Sahni's stealth venture UN:BLOC and joined the startup as a cofounder. The company is reportedly building an AI-powered platform focused on chronic disease management and preventive care.

   Read more here

3. Fresh off its unicorn milestone, Sarvam AI is set to raise another $74 Mn in a Series B extension led by NVIDIA, with backing from Glade Brook, Gaja Capital and others. The new funding comes just weeks after the startup's $234 Mn round led by HCL Technologies.

   Read more here

4. Coffee equipment and services company Kaapi Machines has raised ₹50 Cr from Sedna HoReCa while also entering into a strategic partnership with the B2B hospitality solutions provider. The deal is expected to boost Kaapi Machines' manufacturing and technology.

   Read more here

5. EV charging startup RoadGrid has secured ₹13 Cr from the Technology Development Board for a ₹27.5 Cr manufacturing project. The funds will go towards setting up a facility to manufacture and assemble the company's patented Universal EV Charger.

   Read more here

6. Drone maker ideaForge has secured a Letter of Intent for up to ₹151 Cr in long-term debt financing under the government's ₹1 lakh Cr RDI scheme. The funding will support the development of YETI, the company's heavy-lift autonomous drone.

   Read more here

Zepto is right to delay its IPO, but it may not get a second chance if the next few quarters fail to produce a convincing improvement in cash burn.

Public-market investors were reportedly unwilling to accept anything close to Zepto’s last private valuation of about $7 billion. Their indications ranged from roughly $2.5 billion to $3.5 billion, while the proposed ₹1,000 crore pre-IPO placement could value it closer to $4-4.5 billion. Listing immediately would have locked Zepto into a painful valuation reset and diluted existing shareholders at an unattractive price.

The company has enough cash to wait. It ended FY26 with ₹5,681 crore and no debt. But describing the balance sheet as strong ignores how quickly the business consumes capital. Zepto burnt ₹4,330 crore of free cash during FY26 and reported a ₹5,905 crore net loss despite revenue more than doubling to ₹22,624 crore. The private placement extends the runway. It does not make that burn sustainable.

There are genuine signs of improvement. Marketing cost fell from nearly ₹34 per order in FY25 to about ₹1 in the March quarter. Orders per store reached roughly 2,140 a day, lowering fixed costs. Adjusted EBITDA loss declined to ₹59 per order, while free-cash-flow burn fell to around ₹42.

The competitive problem is that Zepto is improving against a moving target.

Blinkit already operates at more than twice Zepto’s order value and has crossed adjusted-EBITDA profitability. Its average basket is roughly ₹525, compared with Zepto’s ₹361, leaving it more gross profit to cover delivery and fulfilment. Instamart has reached contribution break-even and is narrowing losses. Flipkart Minutes and Amazon Now can use their larger commerce businesses to subsidise expansion without needing quick commerce to stand alone immediately.

Zepto therefore cannot simply wait for its existing stores to mature. It must raise basket sizes, grow advertising and private-label income, preserve metro density and reduce absolute cash burn while competitors continue adding stores and assortment. Slowing expansion may improve margins, but it could also allow Blinkit, Flipkart or Amazon to occupy the next set of valuable catchments.

This makes the IPO delay both sensible and dangerous. Zepto has bought two or three quarters to demonstrate that better per-order economics can become lower company-level losses. If that happens, it can return with a stronger public-market story.

If losses remain above ₹1,000 crore a quarter, density stops improving or competition forces discounts back up, the delay could prove fatal. Cash will fall, bargaining power will weaken and investors may demand an even steeper valuation cut.

Let’s go through what else is happening in Indian startup world - Grab your simmering cup of StartupChai.in and unwind with our hand-brewed memes.

“Babuji Zara Dheere Chalo”: Zepto Confirms IPO Pause, Plans Pre-IPO Fundraise

Zepto has officially paused its IPO to focus purely on operational execution. Shareholders approved a pre-IPO private placement to strengthen the balance sheet ahead of a future listing.

Read more here

“Ye Kya Ho Gaya Swiggy”: Swiggy Falls 5% As Brokerages Flag Quick Commerce Challenges

Swiggy shares dropped over 5% following its Q1 FY27 earnings as investors fixated on quick commerce headwinds.

While food delivery remained profitable and Instamart reached contribution margin breakeven, analysts stay divided over long term profitability amid fierce rivalry.

Read more here

“Bhaari Blunder Ho Gayil Ba”: Capillary Begins Forensic Audit Into €3 Mn Cyber Fraud at Subsidiary

Capillary Technologies has initiated a forensic audit after a step-down subsidiary lost €3 million in an AI-linked financial cyber fraud.

While the SaaS firm recovered €450,000, the breach spotlights the rising threat of sophisticated AI attacks across global corporate networks.

Read more here

“Taiyyari Jeet Ki”: Atomberg Converts To Public Entity Ahead Of Public Listing

Smart fan maker Atomberg has officially converted from a private firm to a public entity ahead of its upcoming stock market debut.

The home appliance startup is aiming to raise up to ₹2,000 crore later this year through a mix of fresh shares and an offer for sale.

Read more here

“Saam Daam Dand Bedh”: SEBI Rolls Out ‘GARUDA’ Framework To Expedite Fund Launches

SEBI launched its GARUDA framework to fast-track Alternative Investment Fund launches to just ten working days.

The green channel swaps lengthy approvals for manager accountability, drastically speeding up capital deployment.

Read more here

1. Voice AI startup Smallest.ai has bagged $13 Mn to scale its next-gen, low-latency models across healthcare, finance, and BPOs. The capital boost comes as enterprises race to automate complex workflows and slash operational costs using real-time voice intelligence.

   Read more here

2. Prime Pharma has secured undisclosed maiden external funding for product and market expansion.
   Read more here

In today’s deep dive, we will look at whether India’s unicorns have actually made the country more productive, or mostly made consumption faster and easier. We will examine where startup capital has gone, which sectors have improved output per worker, machine and rupee, and where convenience has been mistaken for productivity.

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Agriculture employed 46.1 percent of India’s workforce in 2023-24 and contributed about 17.8 percent of GDP. Almost half the country’s workers were concentrated in a sector producing less than one-fifth of its economic output.

This is where India’s productivity problem begins. It continues through small factories running ageing machines, transport operators managing fleets through phone calls, construction sites with poor control over labour and materials, hospitals buried in paperwork and retailers whose money remains trapped in inventory and unpaid bills.

India’s startup boom unfolded alongside this economy. Over the past decade, the country produced more than 100 unicorns and attracted tens of billions of dollars in venture capital. Startups changed payments, shopping, food delivery, transport, lending, investing and software services. A large part of urban India can now order groceries in minutes, transfer money instantly, compare insurance policies, buy mutual funds and book a cab without speaking to anyone.

The change is easy to see. The productivity gain is harder to establish.

Productivity has a fairly plain meaning. A worker should be able to produce more in the same number of hours. A factory should get more output from the same machinery. A truck should spend less time empty or waiting. A farmer should earn more from the same land without a matching increase in water, fertiliser and labour. A hospital should treat more patients without weakening the quality of care.

Many Indian startups have improved convenience, access and distribution. A smaller group has improved the use of labour, capital and physical assets. The two categories often get mixed together because both use technology, raise venture funding and report rapid growth.

The difference becomes clearer when the discussion moves away from app downloads and order volumes. A grocery order reaching a home in ten minutes says very little about the total labour, real estate, inventory and capital used to complete that order. A payment processed in seconds may represent a genuine reduction in transaction costs. A software product that cuts three days of testing to a few hours has a direct effect on output per employee.

India’s biggest startup successes sit across all three examples. They should not be judged by the same standard.

Capital went where growth was easiest to show

India received about $13.7 billion in venture funding in 2024. According to Bain, consumer technology alone attracted roughly $5.4 billion. Consumer technology, software and SaaS, and fintech together accounted for around 62 percent of total funding. Venture and growth investment increased to about $16 billion in 2025, with the same broad categories remaining dominant.

There was a commercial reason for this concentration.

A consumer startup can launch an app, offer a discount and know within days whether people are willing to use it. Orders, customer acquisition costs, repeat rates and city-level growth are visible on a dashboard. A company that increases transactions quickly can use those numbers to raise another round before the underlying economics are settled.

Selling to factories is slower. The customer may take months to approve a pilot. The software has to work with machinery bought from different vendors over several decades. Plant managers may resist changing established processes. Payment cycles are long. A mistake can stop production rather than merely inconvenience a user.

Agriculture is harder still. Farmers are spread across thousands of villages, incomes are seasonal and the ability to pay for software is limited. Weather, commodity prices and government policy can affect the outcome even when the product works. A tool that improves yield may create more value for the farmer than the startup can capture as revenue.

Consumer demand offered shorter sales cycles and clearer numbers. India’s most serious productivity problems came with long implementation periods, fragmented customers and uncertain pricing.

Venture capital followed the easier customer.

The result was an economy where startups became very good at understanding demand. They know which neighbourhood buys premium milk, what discount makes a customer order again, which advertisement improves conversion and what time people buy snacks. Far less is known about why a machine keeps breaking down, why a truck returns empty, why a construction project is late or why a small manufacturer holds three months of excess inventory.

Demand data leads directly to sales, advertising and credit. Operating data usually creates value through lower waste, fewer defects or better use of assets. Those gains take longer to prove and are often harder to convert into startup revenue.

Software has the strongest case

India’s enterprise software companies come closest to the conventional meaning of productivity.

BrowserStack allows developers to test websites and applications across thousands of browsers and devices without maintaining their own testing laboratories. More than 50,000 teams use the platform, which processes millions of tests every day.

The benefit is measurable. Developers spend less time setting up devices and testing environments. Companies release products faster. Bugs are found earlier. The customer avoids buying and maintaining large collections of phones, tablets and computers.

BrowserStack replaces equipment and manual work with software. There is little ambiguity about the productivity gain.

Freshworks operates in a similar part of the economy. Its products manage customer support, IT services and employee workflows. The company generated $838.8 million in revenue in 2025 and reported positive operating income for the full year.

In May 2026, Freshworks announced an 11 percent reduction in its workforce. Its chief executive said artificial intelligence was writing more than half the company’s code and handling a growing amount of routine work.

The layoffs were painful for the employees affected, but they also exposed a weakness in the usual startup debate. Headcount growth and productivity growth are treated as though they are the same outcome.

A delivery company can add 20,000 workers and still produce relatively little value per worker. A software company can reduce its workforce and produce more software than before. The first company looks better in a job-creation presentation. The second may be more productive in economic terms.

Zoho offers another useful comparison. It generated more than Rs 12,000 crore in operating revenue and over Rs 3,000 crore in profit in FY25. It built software for accounting, customer management, collaboration and business operations without relying on repeated venture rounds.

Zoho created intellectual property, export revenue and a profitable product business. It also did so with far less capital than many consumer unicorns used to build delivery and discount networks.

There is a limitation to the Indian SaaS story. Much of the productivity created by these companies benefits businesses outside India.

An engineer in Chennai may build software that reduces customer-support costs for a company in the United States. A product developed in Bengaluru may help a European business automate internal IT work. India receives export income, engineering jobs and product-building experience. The local manufacturer still operating through paper records may see no improvement.

Indian software has become good at raising productivity abroad. Bringing similar tools into India’s own fragmented business base has proved slower because local customers are smaller, price-sensitive and harder to serve.

Logistics produces clearer physical gains

Logistics is one of the few startup sectors where technology can improve the use of large physical networks.

Delhivery built a common system for parcel delivery, part-truckload freight, warehousing and supply-chain services. Thousands of businesses can use its sorting centres, vehicles, warehouses and software instead of building separate networks.

The efficiency comes from consolidation. Several customers can share one truck, one sorting centre and one warehouse. Better routing can reduce failed deliveries and idle time. A common network can carry more freight without requiring every seller or manufacturer to create its own logistics operation.

Delhivery reported its first full-year profit in FY25. The path was expensive and took years, but the underlying productivity argument remains sound.

BlackBuck works at the level of the truck owner. Its products cover toll payments, vehicle tracking, fuel management, financing and freight discovery. The company generated about Rs 652 crore in operating revenue in FY26, and average monthly transacting truck operators reached roughly 8.66 lakh in the March quarter.

The app itself is not the useful part. The useful part is what happens to the truck.

A small fleet owner should be able to reduce fuel leakage, locate a vehicle, find a return load and spend less time chasing payments. A truck earning revenue for a larger share of its journey is more productive than one returning empty.

Rivigo showed that solving a genuine logistics problem does not guarantee a sound business. Its relay trucking system was designed to reduce transit time and allow drivers to return home more often. The operating idea had merit. The company still consumed large amounts of capital and eventually sold its core business at a small fraction of its earlier valuation.

Rivigo may have improved parts of freight movement. It did not create enough durable value from the capital invested.

This distinction is often missing from startup coverage. A company can improve its customer’s productivity and remain financially inefficient itself. Subsidised prices, excessive expansion and weak margins cannot be excused simply because the underlying problem was worth solving.

Manufacturing platforms need to be judged as industrial businesses

Zetwerk, OfBusiness and Infra.Market are often grouped under manufacturing technology or B2B commerce. Their contribution is real, though the word technology can make the businesses appear lighter and more profitable than they are.

Zetwerk coordinates manufacturing across electronics, aerospace, defence, energy and industrial categories. It works with suppliers and also operates its own facilities. The company can help customers find capacity, manage production and monitor quality. Smaller manufacturers may gain access to orders they could not win independently.

The work depends on factories, engineers, inspections, procurement, working capital and project execution. Software helps hold the process together. It does not remove the physical risks.

OfBusiness solves a different problem. Small manufacturers often struggle to buy raw materials at competitive prices and obtain working capital. OfBusiness combines procurement with financing across industrial inputs.

The company generated Rs 20,645 crore in revenue and Rs 724 crore in profit in FY26. Revenue fell after it exited lower-return activities, while profit increased. That decision suggests greater operating discipline than simply chasing turnover.

OfBusiness remains an industrial procurement, trading and lending company with technology inside the operation. Its value comes from sourcing, credit underwriting, supplier relationships and control over working capital.

Infra.Market has expanded across concrete, tiles, paints, blocks and other building materials. Its FY25 revenue rose 27 percent to Rs 18,472 crore, though net profit fell 42 percent. The group has built and acquired manufacturing capacity and created a large retail and distribution network.

Standardising products, improving supply reliability and using plants more effectively can raise productivity in construction materials. The company is still closer to an industrial group than a software marketplace.

There is no reason to treat that as a weakness. India needs companies willing to build manufacturing capacity. The problem appears when factory ownership, inventory and credit exposure are wrapped in software language and valued as though the underlying capital requirements have disappeared.

The useful measures are factory utilisation, rejection rates, inventory turns, payment cycles, gross margins and return on capital. Gross merchandise value mainly shows how much material moved through the system.

Fintech inherited strong public rails

Fintech is frequently cited as proof that startups transformed Indian productivity. The claim needs some separation between the payment infrastructure and the private companies built on top of it.

UPI reduced payment time, cash handling and merchant costs across the economy. It now accounts for roughly 85 percent of India’s digital-payment volume. India represented about 49 percent of global real-time payment transactions in 2025.

These are large productivity gains. A small merchant can accept payment without a card machine. A customer can transfer money instantly. Reconciliation is easier, and cash does not have to be counted, stored or transported.

UPI was developed by the National Payments Corporation of India as an interoperable payment system linked to banks. Private companies such as PhonePe, Paytm and Google Pay helped millions of people use it. They built interfaces, acquired customers and onboarded merchants. The core rail came from a regulated, shared infrastructure.

A similar pattern runs through Aadhaar, DigiLocker, GST systems, FASTag and Account Aggregator. Public infrastructure handled much of the difficult work of creating common systems. Startups built lending, payments and commercial services on top.

Private innovation was still important. Payment gateways, automated reconciliation and financial-data products from companies such as Razorpay, Cashfree and Perfios reduced manual work for businesses.

The productivity case becomes weaker when fintech moves towards personal loans, trading and consumer credit.

A loan used by a workshop to buy a machine expands productive capacity. A loan used to buy an expensive phone increases present consumption. Both transactions appear in digital lending data.

India became highly efficient at moving money. The businesses and households receiving that money did not necessarily become more efficient at producing income.

Quick commerce shows where the argument breaks down

Quick commerce saves time for the customer. A household can avoid a trip to the market. Working parents can order an item they forgot. Elderly customers can receive basic products at home.

The service depends on dark stores close to residential areas, inventory duplicated across neighbourhoods, pickers waiting inside warehouses and riders available to complete small deliveries.

The order reaches the customer faster because labour, inventory and real estate have been placed nearby. That says little about the total resources used.

BigBasket’s consumer business generated Rs 8,223 crore in revenue in FY26 and lost Rs 3,073 crore. Revenue grew 7.7 percent, while the loss increased sharply.

The company’s older scheduled-delivery model had a clearer efficiency logic. Customers placed larger orders. Warehouses could be centralised. Delivery routes could be planned in advance. Quick commerce requires more local inventory and many more small trips.

BigBasket has had to support its existing operation while spending heavily on dark stores and faster delivery. The investment may be necessary to remain relevant. The numbers do not suggest that the company is buying clear market leadership.

Instamart has improved its contribution margins while expanding beyond 1,000 stores. Blinkit has built strong order density in major cities. These businesses may become profitable through delivery fees, commissions, advertising and better purchasing terms.

Profitability would show that quick commerce can work as a retail model. It would not settle the productivity question.

A dark store can become very efficient at picking orders. The wider system may still encourage smaller baskets, more frequent purchases and repeated delivery trips. The household saves time. The economy uses commercial labour to perform a task that consumers previously completed themselves.

That can be a worthwhile exchange. It should be described as convenience rather than evidence that India’s productive capacity has improved.

Cheap labour made the model possible

India’s consumer internet companies grew in a market with a large supply of relatively low-cost labour. Startups could create a technology experience by putting more workers behind the screen.

A grocery order arrives quickly because pickers and riders are waiting. A food-delivery platform connects a restaurant to the customer through a large labour network. A support problem is handled by adding agents. A warehouse can increase throughput by hiring more people.

These jobs provide income and can be better than the alternatives available to many workers. That benefit is real.

Low labour costs also reduce the pressure to redesign work. A company may hire more pickers instead of investing in automation. A construction contractor may add supervisors instead of using better project controls. A customer-support operation may increase headcount rather than fix the process producing complaints.

The country can become more convenient without seeing a large rise in output per worker.

The long-term issue is the quality of these jobs. A productive economy should allow wages to rise because workers are equipped with better tools, skills and machinery. Platform work that depends permanently on low-value trips and thin margins offers limited room for that improvement.

India needs employment. It also needs jobs where earnings can rise without workers simply putting in more hours.

The difficult sectors remain underfunded

Agriculture should be one of India’s largest markets for productivity tools because it employs such a large share of the workforce.

DeHaat, Ninjacart, CropIn, Fasal, AgroStar and Ecozen work across farm inputs, crop intelligence, irrigation, storage, equipment and market access. Their products address genuine problems. The business models remain difficult because farmers often cannot pay enough for the value created.

Agritech startups frequently move into input sales, lending or produce trading because software alone does not generate sufficient revenue. These additions may help the company survive, though they also make it harder to know whether the business is improving farm productivity or mainly operating another distribution chain.

Healthcare shows a similar pattern. Medicine delivery and doctor discovery scaled faster than hospital workflow, diagnostic systems and clinical tools.

Education startups found it easier to sell courses and test preparation than to improve teacher productivity inside schools. Construction remains one of India’s largest employers, yet material waste, labour planning and equipment use are still poorly tracked across much of the sector.

India spends only about 0.64 percent of GDP on research and development. South Korea and Israel spend several times more. Their private sectors support long research cycles in electronics, semiconductors, defence, biotechnology and industrial equipment.

Indian venture capital has generally preferred a business where the main risk is execution. Scientific risk is harder to price. A company developing a new material, medical device or manufacturing process may require years of testing before earning meaningful revenue. A consumer marketplace can show transaction growth within months.

More money is now entering space technology, defence, robotics, climate technology and advanced manufacturing. The amounts remain small compared with the capital available for commerce and financial services.

The numbers used to judge startups are part of the problem

Funding, valuation, users, orders and gross merchandise value are easy to report. They are less useful for judging productivity.

A manufacturing startup should show changes in output per shift, machine downtime, rejection rates and energy consumption. A logistics company should disclose vehicle utilisation, empty kilometres and warehouse waiting time. An agritech company should measure yield, water use, input costs and farmer income.

Lending companies should separate credit used to buy productive assets from credit used for discretionary consumption. Commerce platforms should show what sellers earn after commissions, advertising, logistics and returns.

The startup itself should be judged on the revenue, cash flow and enterprise value created from the capital raised.

These figures are harder to turn into funding announcements. They also reveal far more about what the business has changed.

India does not need to stop funding consumer companies. People will continue to pay for convenience, choice and faster service. Food delivery, beauty retail, travel, entertainment and quick commerce are legitimate businesses.

Their contribution should be stated accurately.

India’s clearest startup-led productivity gains have come from enterprise software, payment infrastructure, B2B logistics and parts of industrial technology. Even these companies need to be judged carefully. Trading businesses cannot be treated as software companies. Public rails should receive credit for the infrastructure they created. Physical businesses have to earn returns on the capital they use.

The next useful test for India’s startup market sits inside ordinary operations. Whether a factory can produce more without adding another line. Whether a truck can earn more without travelling farther. Whether a farmer can raise income without using more land and water. Whether a hospital can treat more patients without lowering care. Whether better tools can increase what an Indian worker earns from an hour of work.

Until those numbers improve at scale, India’s unicorn boom will remain a larger success in consumption and distribution than in productivity.

BigBasket’s ₹3,073 crore loss is not the biggest problem in its FY26 numbers. The more damaging number is 7.7%, its revenue growth in a market expanding several times faster.

Losses can be justified when a company is buying leadership. BigBasket appears to be paying heavily merely to remain relevant. Its consumer business generated ₹8,223 crore in turnover and lost ₹3,073 crore, while Blinkit, Zepto and Instamart kept adding stores, customers and order density. BigBasket is suffering from the worst combination: rising losses without corresponding market-share gains.

The company’s difficulty is structural. BigBasket was built for weekly household baskets, scheduled slots, central warehouses and route consolidation. Quick commerce is built around small top-up orders, neighbourhood inventory and thousands of transactions from tight catchments. BigBasket did not simply need faster delivery. It needed a different operating system.

That transition is expensive because it is carrying the old model while funding the new one. Blinkit, by contrast, was rebuilt around dark stores early enough to make local density its core advantage. In Q1 FY27, it operated 2,443 stores and reported positive adjusted EBITDA. Zepto remains deeply loss-making, but its order value and growth place it firmly ahead of Instamart. BigBasket, despite Tata ownership, sits outside the disclosed top three.

The Tata ecosystem is useful, but not a substitute for execution. Croma products, Tata Neu users and Tata Consumer brands cannot rescue a dark store with weak demand, poor assortment or low order frequency. Conglomerate synergies work only after local unit economics are healthy.

India’s quick-commerce market may reach $60-70 billion by 2030, but the sector will not reward every participant. Blinkit has shown that operating profitability is possible, though returns after store capex, warehouses and working capital remain unproven. Zepto has shown that scale can be bought quickly, but at enormous cash cost.

BigBasket’s choice is uncomfortable. It can keep chasing national relevance and remain dependent on Tata Digital’s balance sheet, or retreat to fewer cities, protect its bulk-grocery strengths and build density where it can compete.

Quick commerce may support several apps. It will probably support attractive profits for only one or two. BigBasket is no longer fighting to win the category. It is fighting to avoid becoming its most expensive also-ran.

Let’s go through what else is happening in Indian startup world - Grab your simmering cup of StartupChai.in and unwind with our hand-brewed memes.

“Aa Dekhe Zara”: Bengaluru Restaurants’ Push Back Gives Rapido’s Ownly An Opening Against Swiggy, Zomato

Bengaluru restaurants are increasingly unhappy with Swiggy's commission model, and Rapido is seizing the moment with Ownly, its zero-commission food delivery platform.

As Ownly rapidly expands across the city, it is emerging as a fresh challenger to the Swiggy-Zomato duopoly with a different approach.

Read more here

“Kuch Bada Karna Hai”: Sarvam To Build Trillion-Parameter AI Model, Launches India-Hosted Inference Service

Sarvam plans to build a trillion-parameter AI model in India while expanding its ambitions beyond just large language models.

The startup has also launched Sarvam Inference, an India-hosted platform supporting multiple AI models and local infrastructure. With a new San Francisco office, Sarvam is betting big on becoming a full-stack AI player.

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“Achha Chalta Hoon”: Peak XV Partners Again Dumps Go Digit Shares Worth ₹139 Cr

Peak XV Partners has sold Go Digit shares worth ₹139 Cr, continuing its gradual exit from the insurtech firm.

ICICI Prudential Mutual Fund picked up the entire stake sold in the block deal. The move comes just a month after Peak XV's previous ₹100 Cr share sale.

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“Suswagatam Suswagatam”: Vault onboards Virat and Vikas Kohli as Strategic Investors

Vault has onboarded Virat Kohli and Vikas Kohli as strategic investors, giving the duo a combined 28% stake in the fitness chain.

The move formalises their long-term association with the brand and strengthens its expansion plans.

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“Aaiye Aapka Intezaar Tha”: Sarvam Ropes In Mistral AI Founding Team Member Devendra Chaplot As Advisor

Sarvam has brought on Mistral AI founding team member Devendra Chaplot as an advisor as it ramps up its frontier AI ambitions.

The appointment comes alongside plans for a trillion-parameter model and a new San Francisco office.

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“Data Ka Business Darshan”: PhonePe Launches PulsePro For Enterprise Market Intelligence

PhonePe has launched PulsePro, a paid enterprise intelligence platform built on aggregated and anonymised transaction data from its payments network.

The platform helps businesses analyse spending trends, category performance and local market dynamics.

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1. Sid's Farm has raised ₹81 Cr in fresh funding to strengthen its dairy supply chain and expand production and distribution.

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2. SUIND has raised ₹20.5 Cr to scale its agri-drone business and develop autonomous surveillance drones.

   Read more here

3. The Electronics Development Fund-backed startups have collectively raised ₹22.5K Cr so far, underscoring the surge in India's electronics and IT ecosystem.

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4. Truth & Hair has raised ₹5.4 Cr in a seed round led by IPV to expand its hair beauty and styling business. The Shark Tank India-featured brand plans to use the funds for product innovation, marketing and distribution.

   Read more here

5. Arboreal Bioinnovations has raised ₹230 Cr in a Series A round led by Edelweiss's EAAA and Omnivore. The startup will use the funds to expand manufacturing, strengthen R&D and speed up the commercialisation of its next-generation ingredients.

   Read more here

6. Apna Mart has raised ₹120 Cr in a Series C round led by Accel and Fundamentum, nearly doubling its valuation to ₹1,470 Cr. The fresh capital will support working capital needs and fuel the retailer's expansion across India

   Read more here

7. Aham Housing Finance has raised ₹100 Cr from The Sanmar Group to strengthen its lending business and expand into underserved housing markets.

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Bhavish Aggarwal has not built three unrelated companies. He has repeated the same strategic mistake in three industries: announce the empire before building the operating system required to support it.

Ola Cabs belonged to India’s subsidy-led marketplace era. Ola Electric rode the EV and localisation wave. Krutrim arrived with generative AI and technological sovereignty. Each addressed a real opportunity and borrowed from a successful global model. Ola Cabs mirrored Uber, Ola Electric borrowed Tesla’s direct-sales and vertical-integration playbook, and Krutrim tried to combine OpenAI, Mistral, CoreWeave and an indigenous chip company.

The intended structure was intelligent. Ola Cabs would control mobility demand and data. Ola Electric would control the vehicle and battery. Krutrim would supply maps, cloud and AI. Together, they could own the customer, hardware and software.

The problem is that vertical integration works only when the individual businesses are strong.

Ola Cabs built scale through discounts and driver incentives, but subsidies were never a moat. While Ola kept treating Uber as the enemy, Rapido redefined Indian mobility around bikes, autos, lower fares and driver-friendly subscription economics. Ola Consumer’s FY25 revenue fell 42% to ₹1,171 crore, while its underlying loss doubled to ₹662.4 crore.

Ola Electric repeated the pattern at greater financial risk. It copied Tesla’s visible ambition without Tesla’s premium pricing, capital base or manufacturing maturity. Ola scaled sales and factories before service capacity. More than 10,000 consumer complaints followed. The EV market continued growing, yet Ola’s FY26 deliveries almost halved, revenue fell to ₹2,253 crore and losses reached ₹1,833 crore.

Krutrim was the clearest overreach. It pursued models, cloud, chips, data centres, maps and an assistant after raising roughly $50 million. Mistral later raised €1.7 billion in one round. Krutrim’s FY25 revenue was ₹101.7 crore, with most coming from Ola group companies, making external product-market fit difficult to judge.

Across all three, the sequence is familiar: announce big, expand fast, let execution fall behind, cut jobs and stores, then introduce a new narrative.

Bhavish’s personality once helped win subsidy wars. Manufacturing and AI infrastructure demand patience, delegation and process discipline. His problem is not lack of vision. It is moving to the next vision before the previous one has earned the right to finance it.

Let’s go through what else is happening in Indian startup world - Grab your simmering cup of StartupChai.in and unwind with our hand-brewed memes.

“Sadda Haq Aithe Rakh”: Uber Moves Karnataka HC Challenging State’s Gig Workers Law

Uber has challenged Karnataka’s gig workers law in the High Court and secured interim protection from coercive action.

The case will test whether states can run separate gig worker welfare laws alongside the Centre’s framework. Uber says the new rules create overlapping compliance and add to operating costs.

Read more here

“Chalo, Ab Dukaan Band Karo”: Delhi HC Orders Winding Up Of Paytm Payments Bank

The Delhi High Court has ordered the winding up of Paytm Payments Bank, formally bringing its banking operations to an end under court supervision.

The move follows the RBI’s decision to revoke the bank’s licence over governance lapses and regulatory non-compliance. Former SBI executive Girikumar M. Nair has been appointed as the official liquidator.

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“Thoda Soch Samajh Ke Kadam Rakhna”: Zepto Mulls IPO Delay As Investors Push For $2.5-$3 Bn Valuation

Zepto is reportedly considering delaying its IPO as investors push for a valuation of $2.5 Bn to $3 Bn, well below its peak.

The lower ask reflects concerns over cash burn and losses. The startup is now negotiating with investors ahead of its August 21 IPO filing deadline.

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“Raste Ka Maal Saste Mein”: Flipkart’s Ekart Opens Logistics Network To D2C Brands Via Franchise Model

Flipkart’s Ekart has opened its logistics network to D2C brands, MSMEs and enterprises through a franchise model.

The move expands Ekart beyond Flipkart’s own deliveries as it targets third-party logistics business. Backed by 300+ outlets, it now plans to grow its franchise network to over 1,000 by the end of 2026.

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“Naari Shakti Zindabad”: Healthfab signs MoU with Andhra Pradesh govt

Healthfab has signed an MoU with the Andhra Pradesh government to set up its second manufacturing plant in Kuppam.

The company will invest ₹15 Cr in the facility, which will make period care panties. The project is expected to create over 700 direct and indirect jobs.

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“Ho Raha Bharat Nirman”: Data Science Wizards launches AI partnership model for enterprise AI adoption

Data Science Wizards (DSW) has launched the DSW AI Partnership Model to help enterprises move beyond isolated AI pilots and scale adoption across their operations.

The framework is designed to accelerate enterprise AI deployment through its DSW UnifyAI OS platform.

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“Aila! Sasta!”: Cursor Launches India-Specific Plan At Rs 649 Per Month

US-based AI coding platform Cursor has launched Cursor Start, an India-only subscription plan priced at Rs 649 per month.

The plan includes Grok 4.5 access, Composer, cloud agents, iOS app access and workflow extensions through plugins, MCP servers, hooks and skills.

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“Aaiye Aapka Intezaar Tha”: Freshworks Appoints Ryan Manning As CPTO, CPO Raghavan Exits

Freshworks has appointed former ServiceNow executive Ryan Manning as its new Chief Product and Technology Officer.

He succeeds Srini Raghavan, who is leaving the company to pursue entrepreneurship. Manning will now lead Freshworks’ product and technology strategy across its AI, IT and customer experience offerings.

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1. AI sales automation startup Revspot has raised $4.8 Mn (about ₹45.9 Cr) in a Series A round co-led by Inflexor Ventures and Info Edge Ventures. The funding will help the startup strengthen its AI platform, expand into new sectors and enter select international markets.

   Read more here

2. Building materials quick commerce startup Fixxly has raised $5.5 Mn in seed funding from Accel, Fireside Ventures and Lightspeed India Partners. The capital will be used to strengthen its tech platform and scale operations.

   Read more here

3. Anicut Capital has launched a ₹250 Cr fund to back over 20 early-stage startups across sectors like deeptech, enterprise tech and fintech. The fund has already invested in three startups and is targeting its first close next month.

   Read more here

4. Freehand has raised $75 Mn, around Rs 718 Cr, in a round co-led by Battery Ventures and NewRoad Capital Partners to expand its enterprise AI platform for supply chain workflows.
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Snitch has made a sensible acquisition, but the ambition attached to it may be getting ahead of the facts.

Buying Berrylush is a more practical way to enter womenswear than creating another brand from scratch. Berrylush already has designs, sizing systems, suppliers, marketplace listings and years of customer feedback. Those assets are valuable in a category where mistakes can quickly become expensive. The undisclosed purchase price, however, remains an important missing detail.

Berrylush’s recent performance suggests that Snitch has bought an operating base rather than a fast-growing business. Its FY25 revenue fell to about ₹44.2 crore from nearly ₹49.5 crore in FY24, and the company remained loss-making. That weakness may have made the deal affordable, but it also means Snitch is not acquiring proven momentum. It is taking on a brand that had stopped scaling and will need significant work.

Womenswear also brings challenges that cannot be solved simply by adding more products. Compared with menswear, the category requires a wider assortment, faster trend cycles and much greater attention to fit. Returns can be particularly damaging because every reverse shipment adds logistics costs, delays resale and increases the risk that a trend-led product becomes outdated before it reaches another customer.

Snitch’s own financial position makes the experiment more demanding. Revenue rose 80% to ₹900 crore in FY26, but its unaudited EBITDA margin was only 2% to 3%. That represents roughly ₹18 crore to ₹27 crore in operating profit before interest, tax and other expenses. A poorly managed womenswear expansion could consume that cushion through higher marketing costs, returns and unsold inventory. Snitch spent ₹82.6 crore on marketing in FY25, almost twice Berrylush’s entire FY25 revenue.

The acquisition will work only if Snitch transfers the right capabilities without damaging what already exists. Its supplier network, rapid product launches, digital marketing skills and 115-store presence could improve Berrylush’s distribution and operating speed. But menswear merchandising practices cannot simply be imposed on a women-led brand. Retaining Anusha Chandrashekar and the existing team is therefore an important part of protecting the value Snitch has bought.

The proposed 100-day public rebuild may create attention, but integration, customer repositioning and fit improvements cannot be completed through a social-media schedule. Fashion groups often struggle after acquisitions when they centralise too quickly and remove the judgment that made the target brand valuable.

The deal should be assessed through lower return rates, faster inventory turnover and the ability to protect Snitch’s existing margins. Berrylush may be a sensible acquisition at the right price, but the ₹1,000 crore target remains an aspiration rather than evidence of a working growth plan.

Let’s go through what else is happening in Indian startup world - Grab your simmering cup of StartupChai.in and unwind with our hand-brewed memes.

“Chain Ki Saans”: Delhi HC Grants BharatPe Interim Relief In Unity SFB Shareholding Dispute

BharatPe has scored temporary relief in its legal tussle with Unity Small Finance Bank. The Delhi High Court has paused moves to raise the bank's authorized share capital and amend its MoA for now.

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“Baad Mein Aana Haan”: Krutrim Cuts Nearly Half Of Remaining Workforce In Fresh Layoffs

Krutrim has carried out another round of layoffs, cutting 20 to 25 jobs and reducing its remaining workforce by nearly half.

The layoffs reportedly hit product and engineering teams the hardest, with some employees also alleging delays in salary payments and reimbursements.

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“Hum Saath Saath Hai”: upGrad Set To Close Unacademy Acquisition

India's edtech sector is set for one of its biggest consolidation moves as upGrad nears its ₹1,955 Cr acquisition of Unacademy.

It also includes a ₹45 Cr ESOP payout for Unacademy employees and will bring multiple education brands under a single Bengaluru-based structure.

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“Janmo Ke Saathi”: Snitch Acquires D2C Women’s Fashion Brand Berrylush To Expand Beyond Menswear

Snitch is stepping into women's fashion with the acquisition of D2C brand Berrylush, expanding beyond its menswear roots.

Berrylush will continue operating under its own identity while leveraging Snitch's tech, supply chain and marketing strengths.

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“Hum Tumhare Hai Sanam”: Anicut Capital Takes Control Of Bira 91 Founder Ankur Jain’s Stake

Bira 91's ownership story has taken another turn as Anicut Capital assumes control of founder Ankur Jain and his family's 17%+ stake in B9 Beverages.

The shift comes shortly after Jain stepped away from the board and gave up executive control.

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Taiyyari Jung Ki”: Table Space To File Draft Papers For $350 Mn IPO Next Month

Table Space is reportedly gearing up to file draft IPO papers next month for a public issue of up to $350 Mn.

The IPO is expected to include a ₹1,000 Cr fresh issue along with an offer for sale by existing shareholders.

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“Purana Saal Naya Maal”: Studio Blo launches AI advertising division

Studio Blo has launched a premium AI-native advertising division to create branded content powered by artificial intelligence.

The new venture brings together acclaimed filmmakers and creative talent to blend storytelling with AI-driven production.

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“Shopping Chat Mein Ho Gayi”: GoKwik And PayU Launch AI Shopping Experience On ChatGPT

GoKwik and PayU have launched an AI-powered shopping experience on ChatGPT that lets consumers discover, compare and buy products from Indian D2C brands inside one conversation. The platform is live with brands including Hyphen, Beardo and Kilrr.

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“Aaiye Aapka Intezaar Tha”: Nykaa Ropes In Ex-Instamart COO Ankit Jain To Helm Nykaa Now

Nykaa has appointed former Swiggy Instamart COO Ankit Jain to lead its quick commerce vertical, Nykaa Now.

His arrival comes as the beauty retailer gears up for a bigger push in the segment during FY27.

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“Swagat Nahi Karoge Humara”: Swiggy Instamart Onboards Former Myntra CEO Nandita Sinha As Chief

Swiggy Instamart has named former Myntra CEO Nandita Sinha as its new chief executive to steer the next phase of growth.

She succeeds Amitesh Jha, who previously led the quick commerce business.

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1. Inflexor Ventures has marked the first close of its ₹1,250 Cr Technology Discovery Fund, raising ₹400 Cr to back emerging tech startups.

   Read more here

2. Student accommodation platform House of Student has raised $2 Mn in seed funding led by Saltwater Sutra and Nirmitsu Ventures. The fresh capital will help the startup strengthen its presence in the student housing market.

   Read more here

3. Chennai-based alternative investment manager Hegdinvst has raised $1.3 Mn (₹11.5 Cr) in an oversubscribed Series A funding round.

   Read more here

4. Deep-tech startup Yaanendriya has raised ₹15 Cr from Piper Serica to advance its indigenous navigation and inertial sensing technologies for robotics, drones and space applications.

   Read more here

Temple has reached a $375 million valuation around a biomarker that has not yet been independently validated. That makes the company unusual, even in India’s startup market.

Deepinder Goyal’s reputation explains some of the interest. Temple raised $54 million at a $190 million valuation in February, shipped its first 100 devices in May and has now priced an employee liquidity programme at $375 million. The company says outside investors have shown interest at a $500 million valuation.

However, an employee transaction funded internally is not the same as a new institutional round. It creates a reference price, but it does not provide independent price discovery.

Temple’s device is expected to cost between ₹75,000 and ₹80,000. Worn on the forehead, it produces a proprietary score called Entropy. Goyal describes Entropy as a measure of the body’s real-time metabolic and sympathetic demand, or the “cost of being alive”. Temple says the score tracked a metabolic cart more closely than heart rate across more than 100 cardio sessions.

That result may be encouraging, but it remains a company claim rather than peer-reviewed evidence.

Near-infrared sensing is an established research method. However, the harder question is whether a signal collected from one point on the temple can support reliable claims about cerebral blood flow, recovery, ageing and physical performance. Neurologists have pointed out that optical readings can be affected by scalp blood flow and movement. They also estimate brain oxygenation indirectly rather than measuring blood flow throughout the brain.

Temple therefore faces two different tests. First, it has to show that the hardware produces consistent results outside controlled settings. Then it must prove that Entropy predicts something useful enough to change behaviour or improve health outcomes. Finding a physiological pattern is not the same as proving that the pattern is a meaningful biomarker.

Investor interest is understandable. Preventive-health wearables have created valuable companies. Whoop was valued at $10.1 billion in March after reaching 2.5 million members, a $1.1 billion bookings run rate and positive operating cash flow. Oura approached an $11 billion valuation after selling more than 5.5 million rings and targeting $1 billion in annual sales.

Those comparisons also show the distance Temple still has to cover. Whoop and Oura built their valuations through millions of users, years of collected data and recurring subscription revenue. Temple currently has a high-profile founder, limited supply and around 100 early devices. Its promise of lifetime app access also removes the predictable subscription income that supports many premium wearable businesses.

Temple’s long-term advantage, if it develops one, will depend on whether Entropy can be validated and supported by years of data. Until then, the company’s valuation rests more on confidence in the idea than on proof that the biomarker works.

Let’s go through what else is happening in Indian startup world - Grab your simmering cup of StartupChai.in and unwind with our hand-brewed memes.

“Same Same But Different”: Delhi HC Restrains ‘Zepto Finance’ From Using Zepto Trademark

The Delhi High Court has told “Zepto Finance” to stop using branding that could be mistaken for Zepto after finding that consumers were actually getting confused between the two.

The ruling comes at a crucial time as Zepto pushes into financial services and gears up for its IPO, reinforcing the value of protecting a fast-growing brand.

Read more here

“Modi Hai Toh Mumkin Hai”: Infosys Cofounder Nandan Nilekani To Lead PM Modi’s Exam Reforms Task Force

Infosys cofounder Nandan Nilekani will lead PM Narendra Modi’s new task force to modernize public examinations using technology.

The panel aims to curb paper leaks and restore trust in exams after weeks of protests over alleged irregularities.

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“Purana Saal Naya Maal”: Ex-Share.Market CEO Ujjwal Jain Launches Wealth Management Startup Atyx.AI

Former Share.Market CEO Ujjwal Jain and ex-Microsoft researcher Debopam Bhattacharjee have launched Atyx.AI, a startup focused on AI-powered wealth management.

Jain started the venture after exiting PhonePe in May, having previously built WealthDesk and OpenQ, both acquired by the fintech giant in 2022.

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“Vadde Log Vadde Baatein”: Deepinder Goyal’s Temple’s Valuation Doubles To $375 Mn

Deepinder Goyal-backed health startup Temple has doubled its valuation to $375 Mn while launching its first ESOP liquidity programme for select employees.

Temple is also reportedly attracting interest at a $500 Mn valuation ahead of its next fundraising round.

Read more here

“Background Check Ghar Ghar Tak”: OnGrid Launches Veriffy For Consumer Verification

OnGrid has launched Veriffy, a direct-to-consumer background verification platform for individuals. Users can verify domestic helpers, tenants, matrimonial prospects and small business staff after obtaining consent.

The process can be completed digitally in under five minutes, with reports delivered within 24 hours through email and WhatsApp.

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1. IndiaMART will invest another ₹65 Cr in Fleetx, raising its stake in the fleet management startup to 25.8% and deepening its bet on enterprise SaaS.

   Read more here

2. EV manufacturer Omega Seiki Mobility has raised ₹50 Cr in fresh funding to expand its manufacturing capacity as demand for electric commercial vehicles continues to rise.

   Read more here

3. Early-stage VC firm Cactus Partners is targeting a ₹1,600 Cr second fund and plans to back 13 to 15 startups with initial cheques of ₹60 Cr to ₹100 Cr. The firm aims to lead funding rounds for companies raising $10 Mn to $20 Mn while bringing in other investors for the remaining capital.

   Read more here

4. Nuvola Spirits has raised Rs 2.69 Cr from United Spirits, which will acquire a 10.08% stake. The premium liqueurs startup will use the investment for expansion, distribution and launches of international spirits in India.
   Read more here

5. 90+ My Tuition App has received a strategic investment from Equity Intelligence, led by Porinju Veliyath. The edtech startup will expand CBSE tuition programmes and develop its AI Teacher Programme for personalised learning.
   Read more here

Flipkart is right to enter food delivery, but the business will be difficult if it treats ONDC as a shortcut into a market built on local density, daily habits and operational discipline.

India’s online food-delivery market was worth about $9 billion in FY25 and could reach $25 billion by FY30. Zomato controls roughly 55% to 58% of the market, with Swiggy holding most of the rest. Food is one of the few large consumer-internet categories where Flipkart does not yet have a meaningful daily presence.

That explains the interest. Fashion, electronics and travel are occasional purchases, while food can bring customers back every day. If people start opening Flipkart for meals, the company can cross-sell groceries, quick-commerce orders, payments, travel and credit. Zomato and Swiggy built broader ecosystems around food. Flipkart is trying to add food to an ecosystem it already has.

ONDC gives Flipkart a useful way to build its restaurant network. Restaurants often dislike paying commissions of 20% to 30% to the established platforms. ONDC-linked transactions can bring that closer to 3% to 5%, allowing Flipkart to offer restaurants better economics and build a catalogue quickly.

The limitation is that ONDC mainly helps with listing and access. It does not solve customer discovery, delivery reliability, rider shortages during peak hours, cancellations, packaging problems or food arriving cold. Rapido’s Ownly has shown that lower commissions can attract restaurants, but that alone does not guarantee a reliable experience for customers.

Amazon Food and Uber Eats faced the same problem. Both had capital, technology and recognizable brands, but neither built enough local density to make restaurant delivery work. Flipkart’s logistics advantage may also be overstated. Ekart was built for parcels, while Minutes operates through controlled dark stores. Restaurant delivery is different because thousands of kitchens prepare food at different speeds, and customers usually blame the platform when orders are delayed.

The established players are not standing still. Zomato and Swiggy have improved their food-delivery economics through platform fees, advertising, loyalty programmes and better rider utilisation. Zomato’s food margin has reached roughly 5.5% of GOV in some recent periods, while Swiggy has moved closer to 3% to 3.3%. Both can respond with discounts and restaurant incentives without having to learn the category from scratch.

China offers a useful comparison. JD and Alibaba have used commerce, logistics and payments to challenge Meituan, but those efforts required substantial capital. Existing ecosystem advantages do not automatically overcome dense local networks.

Flipkart’s sensible route would be to start with a few Bengaluru micro-markets, connect food closely with Minutes, super.money and loyalty benefits, and offer restaurants clearly better economics. Otherwise, the venture could repeat the mistakes that forced Amazon Food to shut down.

Let’s go through what else is happening in Indian startup world - Grab your simmering cup of StartupChai.in and unwind with our hand-brewed memes.

“Waah Kya Scene Hai”: Pronto widens AI Camera Rollout in Homes With ‘Verified’ Offering

Pronto is expanding its AI camera program inside homes with its opt-in "Pronto Verified" service, where technicians wear cameras during service visits.

The company says the recordings are anonymized and used to train AI models while adding an extra layer of transparency for customers.

Read more here

“Swagat Nahi Karoge Humara”: Flipkart to Enter Food Delivery, Take on Zomato, Swiggy and Rapido

Flipkart is gearing up to enter India’s food delivery market, setting up a fresh battle with Zomato, Swiggy and Rapido. The Walmart-owned company will first launch a pilot in Bangalore, before deciding on a wider rollout.

Read more here

“Abki Baar Bengal Sabke Paar”: Wow! Momo Backs Bengal Startup Reality Show

Wow! Momo is backing Tigers' Pitch, a startup reality show aimed at discovering promising ventures from Bengal.

The debut season comes with a ₹48.98 Cr investment commitment, making it one of the biggest launch pools for any startup reality show.

Read more here

“Khwabo Ke Parinde”: Groww Foundation Backs 19 Student Innovation Projects at IIT Bombay

Groww Foundation is supporting 19 student innovation projects at IIT Bombay, giving young researchers a boost to turn ideas into reality.

The initiative encourages experimentation and problem-solving at the campus level.

Read more here

“Gurugram Ki Grocery Gaddi”: FreshTerra Launches First Food Retail Store In Gurugram

Elixiir Foods has launched FreshTerra, a food retail brand founded by Arvind Mediratta and Ambuj Narayan, with its first store in Gurugram. The company has also launched a mobile app for home delivery.

FreshTerra will sell fresh produce, grocery, dairy, meat and gourmet products.

Read more here

1. Zetwerk has raised Rs 500 Cr in pre-IPO funding from Bharat Value Fund at a valuation of about $4 Bn. The round comes days after SEBI cleared Zetwerk’s IPO.
   Read more here

2. Veefin has received board approval to raise ₹35 Cr through non-convertible debentures (NCDs), giving it fresh capital without diluting shareholder ownership.

   Read more here

In today’s deep dive, we will look beyond airlines and airport construction to examine the businesses that keep an airport functioning every day. This includes ground handling, passenger movement, baggage, cargo, retail, queues and airport operating software. India is building more airports, but the larger recurring market may emerge after the terminals and runways are ready.

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India had 165 operational airports as of July 2026. The government wants this number to reach 350 to 400 by 2047, while the Modified UDAN programme proposes another 100 airports from existing unserved airstrips. The expansion is usually discussed through aircraft orders, new routes and terminal investments. Each new airport, however, also needs software to assign gates, deploy workers, track baggage, manage cargo, bill retailers and move passengers through the terminal.

That is the Airport Economy.

Building an airport is only the first step

An airport is a shared workplace for several organisations that do not report to the same management.

The airport operator controls the terminal, runway, gates, aircraft stands and commercial areas. Airlines control their flights and passengers. Ground-handling companies load bags, clean aircraft, move equipment and manage boarding. Security agencies control entry and screening. Customs and immigration handle international travellers. Retailers, restaurants, parking companies, cargo operators and transport providers run their own businesses within the same property.

A delay in one part quickly enters another.

A late aircraft changes the gate requirement. A gate change affects passenger movement. Delayed baggage unloading holds up the next departure. A crowded security lane can create missing passengers at the boarding gate. A grounded baggage tractor can delay several flights during the morning peak.

Most of these problems are coordination problems. The physical equipment may be available, but the right people may not know where it is, whether it is working or when it will be required.

On July 23, 2026, Indian airports recorded about 9.73 lakh domestic and international passenger footfalls in one day, along with more than 6,300 aircraft movements. At this volume, airport operations cannot depend on calls, radio messages, spreadsheets and manual registers.

This is where the software opportunity begins.

The ground operation behind a 45-minute turnaround

When an aircraft lands, a clock starts running.

Passengers must leave the aircraft. Bags have to be unloaded. The cabin must be cleaned. Food and water may have to be replenished. Fuel may be added. Waste has to be removed. The next set of bags must be loaded. Passengers need to board. The aircraft then has to be pushed back from the parking position.

Several teams perform these jobs, often through different contractors.

An airline may know when its aircraft arrived, but it may not have a live view of whether cleaning has finished, whether the baggage loader has reached the aircraft or whether the pushback vehicle is available. Ground-handling managers, meanwhile, may be deploying the same pool of workers and equipment across dozens of flights.

Rsmart Aviation Software is one Indian company building for this layer. Its systems cover aircraft turnaround management, ground-worker deployment, equipment utilisation, task tracking and service-level monitoring. A ground handler can record when each activity begins, receive alerts when a task is delayed and compare the actual turnaround with the airline’s service agreement.

This may sound like workforce software adapted for airports, but the operating conditions are different.

A factory shift has a relatively stable production plan. Airport demand changes with flight delays, weather, gate changes and aircraft substitutions. Workers also need different certifications for different tasks. A person cleared to drive one type of equipment may not be allowed to operate another. Staff and vehicles may need security permission to enter certain areas.

Ground-handling software therefore sits between workforce management, fleet management and flight operations.

Blunav is approaching the same market from the airport-operator side. Its Aerios platform brings together flight information, aircraft stands, gates, check-in counters, display systems, baggage belts, billing and lost-and-found operations. The company says two of its AAI-certified systems are live at Chennai International Airport. In one study covering 3,500 flights, its airside system was used to measure a 22 percent reduction in runway occupancy time.

The significance is not the percentage alone. Airport operators need to know whether an investment in a taxiway, rapid-exit route or operating process is actually reducing the time an aircraft occupies the runway. A software layer can convert an operational change into measurable data.

That gives it a clearer business case.

Passenger flow is a capacity problem

Airports cannot keep adding counters and security lanes every time passenger traffic increases.

A terminal has fixed walls, limited gates and limited space. During a morning peak, a security area may be overcrowded while another part of the terminal remains underused. The problem is often less about total capacity and more about knowing where passengers are gathering and how quickly the queue is moving.

Bengaluru Airport connected Industry.AI’s computer-vision platform to more than 500 live camera feeds at Terminal 2. The system was designed to monitor queues, identify congestion, track abandoned baggage and alert security teams about suspicious activity.

The same camera network that was installed for security can therefore become an operating tool.

An airport can estimate how many people are waiting at a checkpoint, whether a queue has crossed a defined threshold and how long passengers are taking to move from one area to another. This can help managers decide when to open another security lane, move employees or change the allocation of check-in counters.

The next step is prediction.

An airport already knows the departure schedule, aircraft capacity and expected passenger load. It also has historical information about how early travellers arrive for domestic and international flights. Combining this data with live queue information can help estimate where congestion will appear 20 or 30 minutes later.

This matters because airport queues do not have a single owner.

Airlines manage check-in. Security agencies manage security checks. Immigration departments manage passport control. Airport operators control the terminal space. A passenger sees one journey, but the process is split between several institutions.

That fragmentation creates room for a neutral passenger-flow platform that gives every participant the same operating picture.

There is also a commercial reason to reduce queues. A passenger who spends 45 minutes at security has less time to eat, shop or use airport services. Faster processing can increase the time available inside the departure area, where most airport retail is located.

Passenger flow therefore connects operating efficiency with commercial revenue.

Digi Yatra solves identity, not the entire queue

India has already created a large digital layer around passenger identity through Digi Yatra.

The system allows enrolled passengers to use facial verification at selected airport checkpoints instead of repeatedly presenting a boarding pass and identity document. It can reduce friction at terminal entry and boarding, but identity verification is only one part of passenger movement.

A Digi Yatra gate may process passengers quickly while the security queue behind it remains crowded. An automated check-in machine may issue a boarding pass, but the passenger may still wait to drop a bag. A fast boarding gate does not solve congestion caused by late incoming aircraft.

The larger opportunity is therefore not another passenger identity app.

It is software that connects the flight schedule, expected passenger load, live terminal movement, staff availability, security lanes and gate operations.

The buyer may be the airport operator rather than the passenger. This is an important difference because consumer airport apps face a difficult usage pattern. Even a frequent traveller may visit an airport only a few times a month. Most travellers will not maintain several airport-specific apps.

Hoi is an example of the consumer and commerce layer. Its platform offers flight tracking, lounge checks, meet-and-assist services, food ordering, cabs and airport services, with the current website centred on Delhi Airport.

Such platforms can be useful when they combine several high-intent services in one place. Their challenge is distribution. The airport or airline often controls the most valuable passenger touchpoints, including booking messages, check-in communication, airport Wi-Fi and terminal screens.

A standalone app must either win an airport partnership or spend heavily to acquire passengers who may use it only occasionally.

Baggage remains the clearest gap

A checked bag passes through several hands before it appears on the arrival carousel.

The airline accepts it. The airport’s conveyor system moves it. Security equipment screens it. The ground handler sorts and loads it. Another team unloads it at the destination. The airport then allocates a baggage belt for delivery.

Each handover creates a possible failure.

A damaged paper tag may become unreadable. A bag may reach the wrong sorting area. A transfer bag may miss a connecting flight. A suitcase may be unloaded but remain on a trolley. A passenger may take a similar-looking bag from the carousel.

The present system depends heavily on barcodes, bag tags and manual scans. The opportunity is to create a stronger digital identity for the bag.

That could include an image of the suitcase, weight, colour, dimensions, tag details, scan history and its last known location. Computer vision could help identify an untagged bag. Software could warn a ground handler when a transfer bag is running out of time. The passenger could receive an estimated carousel delivery time before leaving the aircraft.

India has businesses in baggage logistics, but there is still no clearly visible Indian startup controlling this complete intelligence layer.

Dropty offers home-to-airport and destination baggage pickup and delivery, including booking and real-time tracking. This removes the need for a passenger to carry luggage through part of the journey, but it remains a managed logistics service rather than an airport baggage-reconciliation platform.

Blunav includes lost-and-found and baggage-belt functions within Aerios, while Industry.AI can detect abandoned baggage through airport cameras. These solve parts of the problem. They do not yet create a continuous digital record from check-in to delivery.

Baggage intelligence is difficult because the required data sits across airlines, airports and ground handlers. A startup cannot solve it with a passenger app alone. It needs operational integration and permission to enter critical airport systems.

That makes adoption difficult, but it can also make the product hard to replace after deployment.

Airport cargo may be the strongest Indian software category

Passenger baggage receives more public attention. Airport cargo may offer the stronger software business.

Air cargo involves airlines, freight forwarders, customs brokers, transporters, warehouses, ground handlers, exporters and importers. Documents and shipments must move between all of them. A missing approval can leave cargo sitting in a terminal even when aircraft capacity is available.

Kale Logistics Solutions has built an airport cargo community system that puts these participants on a common platform. The company says its system is trusted by more than 120 airports and connects airlines, ground handlers, forwarders and customs authorities.

This is a useful model for the wider Airport Economy because Kale is not selling a small productivity feature to one employee. It is creating shared infrastructure for an entire trading community.

The value increases as more participants join.

A freight forwarder can submit documents before the truck reaches the terminal. A transporter can book a slot instead of joining an uncontrolled line outside the cargo gate. A warehouse can prepare for the shipment. Customs information can move electronically. The airport gains better visibility over incoming traffic and cargo volumes.

CargoFlash operates in another part of this market. Its products cover cargo reservations, revenue accounting, warehouse management, freight forwarding and other air-cargo workflows. IATA’s partner directory also lists its end-to-end cargo and warehouse systems.

These companies show that Indian airport software can travel outside India.

Cargo processes have local customs rules, but the underlying problems are similar across markets. Airports everywhere need to coordinate warehouses, handlers, airlines, trucks and documentation. An Indian company that builds a lower-cost system for domestic airports can take the same product to airports in Southeast Asia, Africa and the Middle East.

This export route may be easier than consumer aviation because the product does not depend on building a local passenger brand in every country.

The airport is also a retail landlord

Airports earn money from retailers, restaurants, lounges, parking, advertising and other commercial services.

Many concession agreements include a minimum payment or a share of the retailer’s sales, whichever is higher. This creates a basic data problem. The airport must know how much each store has sold and calculate its own revenue under different contract terms.

Retailers may use different point-of-sale systems. Some data may arrive late. Contract conditions may differ by terminal, store, category and time period. Manual reporting creates room for errors and revenue leakage.

GrayMatter’s StoreSense captures point-of-sale information from airport retailers, maintains concession contracts, calculates revenue share and provides store-level analytics. The company cites an implementation at Bengaluru Airport. Its product can also combine POS information with boarding-pass and passenger data to analyse purchases by destination or traveller profile.

This turns airport retail from a property-management activity into a software category.

The airport can compare sales by store location, flight bank, passenger nationality or destination. It can identify whether a food outlet beside one gate performs better because of passenger traffic or because its conversion rate is higher. It can detect whether reported sales suddenly fall even though footfall remains stable.

For a retailer, the software can improve inventory planning. An airport store does not see normal neighbourhood demand. Sales are influenced by flight schedules, delays, departure destinations, security restrictions and the time passengers have before boarding.

A restaurant may need more food before a large international departure. A convenience store may see higher sales when flights are delayed. A duty-free shop may need different inventory based on the mix of destinations.

Airport retail software therefore has two possible buyers. The airport wants accurate revenue and concession management. The retailer wants better sales and inventory planning.

The stronger platform may eventually serve both.

Regional airports need a different product

The systems used by Delhi, Mumbai or Bengaluru cannot always be copied into a small regional airport.

A metro airport can support large contracts, on-site implementation teams and expensive integrations. A smaller airport may operate a limited number of daily flights. It still needs flight information, gate allocation, billing, baggage-belt management and compliance, but it cannot carry the same technology cost.

This is where India’s airport expansion becomes relevant for startups.

AAI manages 125 airports, which gives it considerable influence over what systems are used across the network. At the same time, India also has private and state-government airports with different buying processes.

A startup selling one customised deployment at a time may struggle. The better opportunity is a modular cloud product that can be configured for several airports.

A small airport may begin with flight operations, billing and display management. It may later add ground-handling, retail and passenger-flow modules. Several airports could share a remote operating centre, technical support team and common software infrastructure.

Pricing would also need to change.

A regional airport may prefer to pay according to passenger traffic, aircraft movements or active modules rather than a large fixed licence. The vendor benefits as traffic grows, while the airport avoids paying metro-airport prices before it has metro-airport volumes.

Blunav’s positioning around a modular operating system for regional as well as larger airports fits this gap. The opportunity, however, will depend on whether such products can move beyond pilots and become standard systems across several locations.

Who will pay for this software?

The Airport Economy does not have one customer.

An airport operator may pay for gate allocation, passenger-flow analytics, billing and retail management. A ground-handling company may pay for workforce and equipment software. An airline may pay for baggage visibility or turnaround monitoring. A cargo terminal may pay for warehouse and documentation systems. A retailer may pay for inventory and sales analytics. A passenger may pay for fast-track access, baggage delivery or meet-and-assist services.

This creates several possible business models.

Ground-handling software can be charged per flight, airport or active worker. Baggage systems can be priced per bag. Passenger-flow systems may use a licence plus charges for cameras or processing volume. Airport retail products can charge per point-of-sale device or take a share of additional commercial revenue. Cargo platforms can charge subscriptions, document fees or transaction fees.

The quality of revenue matters more than the size of the first airport contract.

A startup may announce a large implementation, but much of the value could be hardware procurement, installation and custom development. These are useful revenues, though they do not automatically create a repeatable software business.

The stronger company will be able to deploy the same core product at another airport without rebuilding it.

It will also have recurring revenue after implementation. Airports need continuous support because systems run through nights, weekends and public holidays. Updates, integrations, security monitoring and operational support can become long-term contracts.

Once a product controls gate allocation, billing or cargo documentation, replacing it becomes risky. That can lead to low customer churn.

The cost is a slow sales process.

The airport buyer is difficult to reach

Airport software must work with old equipment, several agencies and strict security rules.

A product may perform well in a demonstration but fail when connected to existing baggage systems, airline databases, access controls or display boards. A small error in normal business software may delay a report. A small error in airport software can disrupt passengers or flights.

Airports therefore ask for trials, certifications, references and integration work.

The first commercial deployment may take years. Startups may need to partner with larger system integrators that already qualify for airport tenders. This can help them enter the market, but it can also leave the startup as a small technology supplier while the larger contractor controls the customer.

Customer concentration is another risk.

India may have 165 operational airports, but procurement power is held by a smaller number of operators. AAI alone manages 125 airports. Large private groups operate several major airports. Losing one group can close access to a large part of the market.

The product also needs aviation knowledge.

A general workforce platform may not understand aircraft turnaround rules. A normal retail system may not understand airport concession contracts. A logistics platform may not understand customs, air waybills or dangerous-goods requirements.

Founders will need airport professionals who understand how the work is actually done. The technical product and the domain knowledge have to be built together.

Where the real startup gaps remain

Ground handling and cargo are already proven categories.

Rsmart shows that specialised software can manage ground workers, equipment and aircraft turnaround. Kale and CargoFlash show that air-cargo systems can be built in India and sold internationally. GrayMatter proves that airport retail and concession management can become a software product. Blunav is attempting to bring several airport operating functions onto one modular platform.

The thinner categories are baggage intelligence and independent passenger-flow software.

India still lacks a visible specialist that creates a continuous baggage record across airline, airport and ground handler systems. Queue technology exists, but it is frequently supplied as part of a broader camera, security or airport-management project.

There is also room between these categories.

Airport workers need certification, roster and access-management systems. Ground equipment needs telematics and predictive maintenance. Lost-and-found departments need shared databases and image matching. Retailers need flight-linked inventory forecasting. Regional airports need common cloud infrastructure. Airport operators need neutral data layers connecting systems that were purchased at different times from different vendors.

These markets may not produce consumer brands. Most passengers may never know the company’s name.

That is normal.

The best airport software is often visible only when it fails. A passenger notices a lost bag, a long queue or a missing gate update. The system preventing these problems remains in the background.

The Airport Economy will be built one workflow at a time

India’s airport expansion creates a genuine startup market, but the number of airports alone does not guarantee large companies.

Some regional airports may handle limited traffic. Procurement will remain concentrated. Sales cycles will be slow. Global vendors and large IT companies will compete for core systems. Many startups may become project businesses because airports demand customisation.

The opportunity is strongest where the problem repeats across airports and the result can be measured.

Can the software reduce aircraft turnaround time? Can it process more passengers through the same terminal? Can it prevent baggage errors? Can it move cargo faster? Can it increase retail revenue? Can it allow a small airport to operate with fewer manual systems?

These are operating questions, not technology questions.

India has already produced credible companies in airport cargo, ground handling, retail analytics and airport operations. What it does not yet have is one clear company controlling the full software layer across its growing airport network.

That company may not begin by trying to replace every system.

It may begin with one expensive problem, such as delayed turnarounds, cargo congestion, missing bags or retail leakage. Once that product becomes part of the daily operation, it can enter the adjacent workflows.

A runway creates connectivity. A terminal creates capacity. The recurring business begins when somebody has to keep both of them working every day.

Fund My Staff is being presented as a new fintech product, but it is a fairly natural next step for Ashneer Grover after CrickPe shut down and ZeroPe struggled to convert hospital relationships into loans.

The model is straightforward. Third Unicorn does not lend its own money, hold an NBFC licence or take on the full credit risk. Instead, it reaches employees through their employers, sends loan applications to Ash Grove Capital and earns a fee when the partner NBFC approves and disburses a loan. The employer verifies the worker and may help recover instalments through payroll deductions.

One employer agreement can give the platform access to hundreds of potential borrowers. That reduces the need for expensive consumer advertising and avoids the cost of building a large lending balance sheet. With a loan-management system, an NBFC API and a small sales team, the product can be launched relatively quickly.

The challenge is that the same simplicity makes the business easy to copy. HR software companies can add salary advances, while NBFCs can approach employers directly. Companies such as Refyne already have payroll integrations, and platforms like Fibe and Jupiter combine distribution with lending infrastructure that they own or closely control. Employers can also move to another provider if it offers lower interest rates, faster approvals or better service.

The economics leave little room for mistakes. A typical loan may carry an annual percentage rate of 18% to 24%. After the NBFC pays its 10% to 12% cost of capital, the lending service provider may receive a 2.5% to 4% revenue share, along with processing income. KYC costs, payment failures, collection expenses and credit losses can reduce the final operating margin to anywhere from a small loss to a profit of less than 1%.

That makes underwriting especially important. The employer’s involvement may look reassuring, but it does not eliminate risk. Companies may confirm employment and deduct instalments, yet many will not guarantee loans for junior employees. Workers resign, salaries are delayed and smaller businesses face their own cash-flow problems. Once an employee leaves, the platform is left collecting an unsecured loan from a borrower who may have little credit history.

RBI rules add another constraint. First Loss Default Guarantees are capped at 5% of the outstanding portfolio, and the lending NBFC must conduct its own underwriting. Third Unicorn and the employer cannot simply absorb enough losses to make approvals easier.

Fund My Staff will become more valuable only if employer relationships generate useful repayment data, support an eventual lending licence and allow Third Unicorn to capture more of the interest margin.

Let’s go through what else is happening in Indian startup world - Grab your simmering cup of StartupChai.in and unwind with our hand-brewed memes.

“Ye Kya Kar Raha Hai Tu”: Ashneer Grover launches employer backed lending platform Fund My Staff

Ashneer Grover is back with a new fintech venture called Fund My Staff, aimed at making employee loans easier through employer backing.

The platform lets companies act as guarantors, helping workers, especially those with little or no credit history, access financing.

Read more here

“Ghamasan Yuddha Ki Tayyari”: Ayr Energy Files Counter Claim Against IPO-Bound Zetwerk

The legal battle between Ayr Energy and IPO-bound Zetwerk has intensified, with Ayr filing a counterclaim in the US seeking at least $1 billion in damages and an import ban.

Ayr alleges Zetwerk misused confidential trade secrets to build a competing transformer business, while Zetwerk has denied the accusations. As the courtroom clash unfolds, the dispute is adding fresh scrutiny ahead of Zetwerk's IPO.

Read more here

“Waah Kya Scene Hai”: Spoiled Inventory Costs Blinkit Nearly Three Times its Adjusted EBITDA

Blinkit posted a solid quarter with ₹102 Cr in adjusted EBITDA, but there's a costly catch behind the numbers.

The company lost nearly three times that amount through spoiled, damaged, lost, and stolen inventory, with fresh fruits and vegetables taking the biggest hit.

Read more here

“Sapne Dekhe Bade Bade”: Edtech Startup Klassroom’s IPO To Open On July 31, Price Band Set At ₹151-159

Edtech startup Klassroom is set to open its SME IPO on July 31, with a price band of ₹151 to ₹159 per share.

The company plans to raise ₹39 Cr to invest in technology, content, marketing, offline expansion, and debt repayment.

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“Swagat Nahin Karoge Hamara”: Campus Fund Appoints Howard Morgan To Advisory Board

Campus Fund has appointed veteran investor Dr Howard L. Morgan to its Global Advisory Board. Morgan is Chair and General Partner at B Capital and cofounder of First Round Capital.

The appointment comes as Campus Fund deploys its third and largest fund, a $100 Mn corpus announced in June 2025.

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1. Healthtech startup CARPL.ai has raised $10 Mn in a Series A round led by IFC to expand its AI-powered medical imaging marketplace. The fresh capital will fuel product development, strengthen its technology, and support global expansion.

   Read more here

2. AI insurtech startup NeuralKart has raised ₹2.35 Cr in a seed round led by Inflection Point Ventures. The funding will help the Bengaluru-based startup enhance its AI platforms, expand its market reach, and accelerate product development.

   Read more here

3. Climate-focused agribusiness startup Farm Watt Innovations has raised ₹32.5 Cr in a funding round co-led by IAN Alpha Fund and Rainmatter. The fresh capital will strengthen its biomass supply chain, expand collection networks, and support business growth.

   Read more here

4. Post-sales services platform Wiffy has raised $3 Mn in a Series A round led by Earth Fund, with backing from Persol Holdings and Capria Ventures. The funding will support the Mumbai-based startup as it scales its installation and after-sales service network.

   Read more here

5. Banking software startup BusinessNext has raised $40 Mn in a Series B round from ServiceNow Ventures at a $700 Mn valuation. The investment marks a sharp jump in the Noida-based company's valuation, with ServiceNow acquiring about a 5% stake.

   Read more here

6. B2B food-tech startup Urban Harvest is set to raise ₹341.4 Cr in a Series D round led by Info Edge, with participation from multiple investors. The fresh capital is expected to fuel the company's next phase of growth as it expands its operations.

   Read more here

7. Upkraft has raised Rs 1.6 Cr in a pre-seed round led by PedalStart, with participation from angel investors and early-stage ecosystem players. The startup will build AI-powered personalised learning tools and expand across Bengaluru and Gurugram.
   Read more here

Venture capital is often described as patient capital, but the incentives are more complicated. Funds are expected to return money to their limited partners, and that pressure can encourage them to seek liquidity well before founders, employees or public investors feel the business is mature.

That is the context behind India’s growing secondary-sales market. Venture funds are judged heavily on DPI, or the cash returned to investors. They are not rewarded simply because a company performs well several years after the fund has exited.

As interest rates rose and private-market valuations became harder to defend, limited partners began asking for actual distributions rather than higher paper marks. Secondary sales, IPO offer-for-sale tranches and block deals consequently became regular parts of fund strategy.

SoftBank shows the scale of this activity. It invested about $10.6 billion across roughly 20 Indian companies and has already monetised more than $7.2 billion. It sold stakes worth around $1.8 billion to $1.9 billion in Paytm, Zomato, PB Fintech and Delhivery. Its investment in Flipkart alone reportedly returned about $4 billion on a $2.5 billion investment.

Peak XV is said to have made around 39.5 times its money on Pine Labs shares and sold roughly ₹753 crore worth of Honasa stock. Tiger Global is estimated to have earned about $3.5 billion from Flipkart.

There is nothing inherently wrong with these exits. Returning capital is the job of a fund. The concern is the unequal access to liquidity. Founders and employees are often told to remain invested for the long term, while investors can use board rights, transfer approvals and IPO structures to sell when their own fund timelines require it. Founders may be allowed to sell only 5% to 10% of their holdings, while employees wait for uncertain ESOP windows.

The secondary market also shows how far private valuations can fall. Startup shares have reportedly traded at median discounts of about 61% to their last primary-round price. Early investors can still earn strong returns because they entered cheaply, while employees whose options were priced near the previous round may find that their expected wealth was mostly theoretical.

Swiggy’s IPO illustrates the transfer of risk. Of its ₹11,327 crore issue, ₹6,828 crore, or more than 60%, came through an offer for sale. Most of that money went to existing shareholders rather than the company, while public investors took on the future operating and valuation risk.

The issue is not secondary liquidity itself. It is whether liquidity is shared fairly. Founders and employees should have proportionate access when investors sell, and IPO analysis should focus closely on the balance between new capital and shareholder exits. Venture funds are professional investors with return timelines, not permanent partners. Founders should negotiate with that reality in mind.

Let’s go through what else is happening in Indian startup world - Grab your simmering cup of StartupChai.in and unwind with our hand-brewed memes.

“Kuch Daring Karna Hai”: Paytm Eyes New Horizons With Enterprise AI & Wallet Revival

Paytm is looking beyond payments, with plans to turn its in-house AI tools into enterprise products while reviving its wallet business and expanding deeper into wealth management.

The company sees AI and high-margin financial services as the next big growth engines. If things go as planned, these bets could also help push Paytm's profitability to a whole new level.

Read more here

“Kar Chale Hum Fida”: Bira 91 Founder Ankur Jain Steps Down, Gives Up 17.8% Stake In Settlement

Bira 91 founder Ankur Jain has stepped down from B9 Beverages and given up the promoter family's 17.8% stake as part of a settlement with investors and lenders.

The move clears the way for a much-needed recapitalisation after months of financial strain. In return, Jain will be freed from personal loan liabilities, with both sides also agreeing to drop their legal disputes.

Read more here

“Waah Kya Scene Hai”: Spoiled Inventory Costs Blinkit Nearly Three Times its Adjusted EBITDA

Blinkit posted a solid quarter with ₹102 Cr in adjusted EBITDA, but there's a costly catch behind the numbers.

The company lost nearly three times that amount through spoiled, damaged, lost, and stolen inventory, with fresh fruits and vegetables taking the biggest hit. It's a reminder that in quick commerce, speed is only half the battle and managing inventory can make or break profits.

Read more here

“Sapne Dekhe Bade Bade”: InMobi Ropes In Four Bankers To Helm Its $1 Bn IPO

InMobi is gearing up for its much-awaited IPO, bringing in four investment banks to steer a public issue that could top $1 billion.

If it goes through in the coming months, it would mark the stock market debut of one of India's earliest unicorns. The listing could also become a defining milestone for the country's startup ecosystem.

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“Jaanch Honi Chahiye”: InGovern Asks SEBI To Examine Meesho’s GST Disclosures

InGovern has asked SEBI to examine Meesho's GST disclosures, raising questions about the tax position adopted through its logistics arm, Valmo Transportation.

The proxy advisory firm also wants the market regulator to review whether investors received adequate disclosures. The move adds another layer of scrutiny as Meesho prepares for its public market journey.

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“Mubarakan Ji Mubarakan”: InsuranceDekho enters cricket sponsorship with India’s Zimbabwe, Sri Lanka tours

InsuranceDekho is stepping onto the cricket field for the first time with a major sponsorship push.

The insurtech startup will co-present India's T20I series against Zimbabwe and headline the Test series against Sri Lanka as the InsuranceDekho Cup. It's a big branding play as the company looks to reach millions of cricket fans.

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“Workforce Ka AI X-Ray”: Benevolve Launches MOSAIX Skills Intelligence Platform

Benevolve has launched MOSAIX, a cloud-based self-service workforce intelligence platform for skills mapping, workforce planning and talent development.

The platform includes an AI-powered Skill Framework Builder to help companies create and update role-based skill frameworks. The launch fits the wider enterprise AI push, where companies are trying to map talent gaps before business needs outrun teams.

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“Swagat Nahin Karoge Hamara”: Procol Appoints Shaivya Gupta As Chief Marketing Officer

Agentic AI platform Procol has appointed Shaivya Gupta as Chief Marketing Officer to lead global marketing, brand and communications. She will focus on market positioning, customer engagement and category leadership.

The appointment comes as Procol expands across India and the US.

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“Waah Kya Scene Hai”: Grahaa Space completes Mission SIDDHI

Grahaa Space has successfully completed Mission SIDDHI, with its SOLARAS nanosatellite achieving all planned objectives in low Earth orbit.

The mission validates the startup's Earth observation and geospatial technology in space. It's another encouraging milestone for India's fast-growing spacetech ecosystem.

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1. Bioscan Research has raised $1 million in a seed round led by Unicorn India Ventures to scale its affordable, non-invasive brain injury detection technology. The fresh capital will support market expansion, regulatory approvals, and product upgrades.

   Read more here

2. Veriqus has raised Rs 387 Cr in a funding round led by Norwest. The wealthtech platform will use the capital to build its AI-led wealth, asset management, advisory and lending stack.
   Read more here

MS Dhoni’s investment in SolarSquare is being described as a celebrity endorsement of clean energy. A more practical explanation is that SolarSquare has gained something the rooftop solar industry has struggled to build at scale: consumer trust.

Dhoni joined the company’s $53 million Series C round through Midas Deals and became its brand ambassador. The funding reportedly values SolarSquare at around $470 million. Its revenue grew from roughly ₹170 crore in FY24 to ₹350 crore in FY25, with an estimated ₹700 crore in FY26. The company has installed systems in more than 50,000 homes across 29 cities and claims an annualised revenue run rate of ₹1,000 crore.

Those numbers explain why Dhoni invested. They do not fully explain why SolarSquare wanted him.

A residential solar system costs around ₹2-4 lakh and involves technology most homeowners cannot easily assess. Buyers may struggle to judge panel quality, inverter reliability, waterproofing, earthing or whether an installer will still be available years later to honour a 25-year promise. A local contractor may offer a lower price but disappear after installation. Tata Power carries stronger institutional trust, although it operates through a broader dealer network.

SolarSquare needs to charge enough to cover design, financing, installation, monitoring and maintenance while convincing customers that a younger company will remain dependable. Dhoni’s reputation for reliability and calm execution helps fill that gap. His presence could reduce hesitation, improve lead conversion and lower customer acquisition costs.

The government-backed solar push, however, also creates complications. A typical 3 kW system costs about ₹1.8 lakh. After a subsidy of up to ₹78,000, the homeowner may pay roughly ₹1.02 lakh and recover the cost through electricity savings in a little over four years. But subsidised systems must meet domestic-content rules. India reportedly has nearly 200 GW of module capacity but only around 30 GW of cell capacity. If compliant cell supply is limited, prices and installation costs rise, reducing the benefit passed to consumers.

Discoms face another conflict. Wealthier households with high electricity bills help subsidise other users. Rooftop solar removes some of these profitable customers, so delays in approvals and net metering reflect financial pressure as well as administrative problems.

Maintenance is another long-term challenge. Dust, pollution, bird droppings, roof leaks and inverter failures require local service for decades. SolarSquare’s guarantees may distinguish it from unorganised installers, but they also create a large future obligation across many cities.

Dhoni can help win the first sale. SolarSquare now has to prove that its service can justify the trust he brings.

Let’s go through what else is happening in Indian startup world - Grab your simmering cup of StartupChai.in and unwind with our hand-brewed memes.

“Ye Kya Hua Kaise Hua”: Paytm’s Board Shoots Down Proposal To Issue Bonus Shares

Paytm has dropped plans for its first-ever bonus share issue, with the board choosing to prioritize long-term growth and profitability instead.

The decision comes despite a strong Q1 FY27, where net profit surged 78.8% to ₹220 Cr and revenue climbed 27.6% to ₹2,448 Cr.

Read more here

“How’s The Josh”: GIFT City Launches Fintech Startup Acceleration Programme

GIFT City has launched the Young Builders’ Program under the GIFT International FinTech Innovation Hub in collaboration with the International Financial Services Centres Authority. The programme will support fintech entrepreneurs from ideation to commercialisation.

Selected applicants will join a nationwide hackathon followed by an eight-week residential programme with mentorship from founders, investors, regulators and industry experts.

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“Janmo Ke Saathi”: Zaggle To Acquire 20% Stake In Unobanc To Bolster Cross-Border Payments

Zaggle is investing up to ₹7.97 Cr in Unobanc to acquire a 19.9% stake, marking its entry into the fast-growing cross-border payments and remittance space.

The move strengthens Zaggle’s financial services portfolio with added forex and international payment capabilities.

Read more here

“Ho Raha Hai Bharat Nirman”: Hyundai Launches Assistive Technology Startup Programme

Hyundai is backing the next wave of assistive technology startups with the launch of Samarth UnnATi, a scale-up programme in partnership with AssisTech Foundation.

Selected startups will receive grant funding, mentorship, investor access and market opportunities to help grow their innovations.

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“Purana Saal Naya Maal”: CarDekho launches AI-Powered Employee Engagement Platform

CarDekho Group has launched Amber, an AI-powered platform designed to keep a constant pulse on employee feedback instead of relying on annual surveys.

The tool enables continuous, confidential conversations throughout an employee’s journey with the company.

Read more here

“Treasurer Ji, Aap Aaram Karo”: Mygate Launches AI Assistant MIRA For Housing Societies

Community management platform Mygate has launched MIRA, an AI-powered assistant for resident welfare associations and housing societies. The tool can extract vendor invoice data, reconcile payments, analyse transactions, monitor collections and identify overdue accounts.

Mygate said pilot deployments helped treasurers and accountants cut routine finance work by up to 70%.

Read more here

1. MS Dhoni has invested in rooftop solar startup SolarSquare as part of its $53 Mn Series C round. He will also serve as the company’s brand ambassador, strengthening its push into clean energy.

   Read more here

2. Traveltech startup 30 Sundays has raised ₹61 Cr in a Series A round led by Bessemer Venture Partners to expand its AI-powered holiday planning platform. The funding will help the company enhance personalized travel experiences.

   Read more here

3. Ather Energy has raised ₹1,300 Cr through a QIP, issuing shares at ₹1,202 each, slightly above the floor price. The fresh capital will go towards debt repayment, R&D and marketing as the EV maker accelerates its growth plans.

   Read more here

4. Transition VC has launched a ₹1,500 Cr fund to back deeptech startups in energy transition and advanced manufacturing. The fund will focus on startups with proven technology and early commercial traction.

   Read more here

5. Suminter India Organics has raised ₹25 Cr in debt funding from BlackSoil Capital to scale sourcing of organic food ingredients. The capital will also help strengthen its network of over 100,000 smallholder farmers across India, the Philippines and Africa.

   Read more here

6. FireAI has raised ₹2.5 Cr from SucSEED Indovation Fund to strengthen its causal decision intelligence platform. The Mumbai-based startup has now raised over ₹8.7 Cr in total from investors, including Inflection Point Ventures and Venture Catalysts.

   Read more here

7. Khageshvara Aviation Technology has secured pre-seed funding from Finvolve, India Accelerator and other investors to advance its electric cargo aircraft. The startup is building eVTOL solutions aimed at transforming cargo transportation.

   Read more here

Skyroot Aerospace’s Vikram-1 reaching orbit on its first attempt is a significant engineering achievement. SpaceX’s Falcon 1 failed three times before it succeeded. Rocket Lab’s Electron, Firefly’s Alpha and Relativity Space’s Terran 1 also failed to reach orbit on their maiden flights. Skyroot managed in one attempt what several better-funded Western startups could not.

The broader story, however, is not simply that India has built another rocket. It is that the country may have found a more affordable way to develop private space companies.

Skyroot did not need to recreate the entire launch ecosystem from the ground up. It used ISRO’s launch pad, testing facilities, telemetry systems and tracking infrastructure, while developing the rocket, propulsion systems and manufacturing capabilities privately. That arrangement is important because launch infrastructure is extremely expensive and often sits unused for long periods. In the United States, startups frequently raise hundreds of millions of dollars to build vehicles, factories, test stands and launch sites at the same time. India is taking a different route by allowing private companies to use public infrastructure while competing in the commercial market.

This reduces the capital required to reach orbit and turns decades of publicly funded capability into a platform for private industry.

Vikram-1 reflects the same focus on cost and efficiency. The 23-metre rocket can carry about 350 kilograms to low-Earth orbit. Its carbon-composite structure keeps the vehicle lighter, while 3D-printed Raman engines reduce the number of parts and shorten manufacturing time. Skyroot’s Hyderabad facility is eventually expected to produce one rocket each month. The company is reportedly targeting launch prices between $5 million and $10 million, close to Rocket Lab’s Electron, which costs roughly $7.5 million to $8 million.

The commercial market remains challenging. Dedicated small-launch missions are useful, but SpaceX’s rideshare services offer much lower prices per kilogram. A satellite operator will pay Skyroot’s premium only when it needs a specific orbit, a faster launch schedule or an alternative to American and Chinese providers. Those customers exist, but they are unlikely to create unlimited demand on their own.

That matters because Skyroot was still pre-revenue when it raised $60 million at a $1.1 billion valuation in May. The valuation depends on repeat launches, reliable operations and paying customers, not just the success of one historic flight.

Rocket Lab offers a useful comparison. Electron helped establish the company, but Rocket Lab expanded into satellite components, spacecraft manufacturing and on-orbit systems because launch services alone are difficult to scale and can produce uneven margins. Skyroot may eventually need a similar business around propulsion, mission integration, defence contracts, satellite platforms and orbital services.

India wants its space economy to reach $44 billion by 2033, including about $3.5 billion from launch services. Skyroot can contribute to that growth, but its larger impact may come from bringing Indian suppliers into precision manufacturing, composites, electronics and propulsion.

The first launch showed that Indian private industry can reach orbit. The harder task will be building a repeatable business around it.

Let’s go through what else is happening in Indian startup world - Grab your simmering cup of StartupChai.in and unwind with our hand-brewed memes.

“Bade Bade Desho Mein”: Cosmoserve Says Soft Robotic Capture Demo Gathered Key Data Despite Glitch

Cosmoserve said its soft robotic capture demo aboard Skyroot's Vikram-1 generated useful in-orbit data despite a deployment issue with its robotic petals.

The company attributed the glitch to extreme space conditions. The findings will support the development of its technology for capturing and removing space debris and defunct satellites.

Read more here

“Kaddu Katega Sab Mein Batega”: Scapia Announces ₹20 Cr ESOP Buyback

Scapia has announced a ₹20 Cr ESOP buyback, giving eligible employees an opportunity to liquidate up to 10% of their stock options.

The move reflects a growing trend of startups offering liquidity to employees. It also highlights the company's focus on sharing value creation with its team.

Read more here

“Hum Saath Saath Hai”: SG Finserve, BharatPe and Succesship Join Hands to Expand Digital Credit Access

SG Finserve has partnered with BharatPe Money and Succesship Technologies to make digital credit more accessible for merchants and MSMEs.

The collaboration combines lending expertise, a wide merchant network and a paperless lending platform. The aim is to offer faster and RBI-compliant loans to eligible businesses.

Read more here

“Aaj Ki Naari Sab Par Bhaari”: Namma Yatri Organizes Experiential Initiative to Encourage Women's Participation

Namma Yatri has launched a new initiative to encourage more women to take up professional driving as a career.

As part of the effort, women from different professions in Bengaluru spent a day experiencing the life of a driver partner. The programme aims to promote financial independence, safer mobility and greater participation of women in the transport sector.

Read more here

“Purana Saal Naya Maal”: ePlane Company Unveils the e200X

The ePlane Company has unveiled the e200X, its first full-scale electric vertical take-off and landing (eVTOL) aircraft prototype.

The milestone marks a major step in India's advanced air mobility ambitions. The aircraft was introduced at the startup's newly inaugurated 60,000 sq. ft. production facility in Chennai.

Read more here

“Hum Tumhare Hain Sanam”: Redcliffe Labs To Acquire Megavision Diagnostics In ₹40 Cr Deal

Redcliffe Labs is set to acquire Megavision Diagnostics in a ₹40 Cr deal to strengthen its radiology and imaging business.

The move supports its strategy to build a broader diagnostics platform beyond pathology.

Read more here

1. Norwest Capital has co-led a $40 Mn funding round in Raghu Vamsi Aerospace to expand its manufacturing capacity and aerospace operations. The investment underscores growing confidence in India's advanced manufacturing and defense sector.

   Read more here

2. Veriqus Group has raised Rs 387 Cr in a funding round led by Norwest. The wealthtech startup will use the capital to build an AI-enabled wealth, asset management, advisory and lending platform.
   Read more here

3. Plazza has raised $15 Mn in a Series A round to expand its quick medicine delivery business beyond Bengaluru. The funding will help strengthen its technology, inventory systems and pharmacy network.

   Read more here

4. Rukam Capital has led a ₹5 Cr seed round in skin longevity beauty brand LNGVTY. The startup will use the funds to expand its product range, strengthen D2C growth and invest in R&D.

   Read more here

5. Steptrade Capital has achieved the first close of its Chanakya Opportunities Fund II, securing over ₹100 Cr in commitments within three months of launch. The fund marks an early milestone for its second Category II AIF.

   Read more here

6. Agriculture drone startup Suind is set to raise ₹20.5 Cr in a fresh funding round at an ₹80 Cr valuation. The capital will be led by Transition Venture Capital Fund, with participation from CIIE Initiatives.

   Read more here

7. LNGVTY has raised Rs 5 Cr in a seed round led by Rukam Capital, with participation from angel investors. The skin longevity beauty brand will use the capital for D2C marketing, product expansion, research and team building.
   Read more here

Cult.fit’s proposed IPO valuation of nearly ₹17,000 crore looks difficult to justify. The company has improved its operations, but public investors are being asked to value it as though the turnaround is complete, even though the business is still dealing with the consequences of its earlier expansion.

The headline numbers are encouraging. FY26 revenue rose 41.6% to ₹1,720.6 crore, adjusted EBITDA turned positive at ₹144.8 crore, and the net loss narrowed to ₹251.9 crore. However, adjusted EBITDA does not show the full cost of running the business. Cult.fit still carries ₹889 crore in lease liabilities, nearly ₹220 crore in bank debt and around ₹227 crore in depreciation and amortisation. Its centre-level economics have improved, but the company has not yet demonstrated consistent profitability after all of its costs are included.

The proposed use of IPO proceeds reinforces that concern. Of the ₹950 crore fresh issue, ₹217.5 crore will be used for existing rent and lease obligations, while another ₹120 crore will go toward repaying debt. More than one-third of the new capital will therefore be used to address earlier commitments rather than fund expansion or product development. This is primarily balance-sheet repair, not growth capital.

At ₹17,000 crore, Cult.fit would be valued at almost ten times FY26 revenue. That kind of multiple is easier to defend for a capital-light software company with high margins, low churn and predictable cash flows. Cult.fit remains a physical fitness business. Its performance depends on gym utilisation, trainer productivity, membership renewals and the company’s ability to manage leases carefully.

The company’s geographic footprint also needs closer examination. It operates 708 centres, but more than 90% of fitness-services revenue comes from Delhi-NCR, Mumbai, Bengaluru and Hyderabad. Cult.fit has a national brand, but its business remains concentrated in four large cities. Expanding into smaller cities may be more difficult because local gyms operate with lower costs and customers tend to be more price-sensitive.

Franchising offers the clearest route to better returns. Around 69% of centres are franchised or marketplace-operated, which can reduce capital requirements. However, this model also gives partners more influence over day-to-day execution. Poorly managed centres could affect customer experience and weaken the brand.

Cultsport does not completely resolve the concern. It contributes about 30% of revenue but brings inventory and working-capital risks, along with a 38.6% dependence on Chinese procurement.

Existing investors may reasonably use the offer-for-sale portion for partial liquidity. New investors, however, should be cautious near ₹17,000 crore and consider the company only at a valuation closer to its last private mark of ₹12,600 crore. Cult.fit has made real progress, but the IPO appears to assume that the turnaround is already finished.

Let’s go through what else is happening in Indian startup world - Grab your simmering cup of StartupChai.in and unwind with our hand-brewed memes.

“Waah Kya Scene Hai”: Skyroot Creates History With India’s First Private Orbital Rocket Launch

India's spacetech story just reached a whole new level as Skyroot became the first private Indian company to successfully launch an orbital rocket with Vikram-1.

The historic Mission Aagaman placed multiple customer payloads into a 450-km Low Earth Orbit while proving the rocket's key systems work as planned. It's a landmark moment that opens the door for Indian startups to compete in the global satellite launch market.

Read more here

“Haal Kaisa Hai Janab Ka”: Supreme Court Seeks Snapdeal’s Reply In Prescription Drug Sale Case

Snapdeal is back in the legal spotlight as the Supreme Court has asked the ecommerce platform to respond in a case involving the alleged sale of a prescription drug without a valid licence or doctor's prescription.

At the heart of the dispute is whether online marketplaces can claim safe harbor when third-party sellers break public health laws.

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“Maamla Legal Hai”: BYJU’S Inches Closer To Resolving Aakash Dispute After Creditors’ Nod

BYJU'S may finally be nearing the end of its long-running Aakash dispute after creditors approved a settlement proposal.

The deal could give lenders around a 30% stake in Aakash while ending legal proceedings against founder Byju Raveendran. The NCLT will hear the matter on August 18, making it a key date for the edtech giant's future.

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“Sapne Dekhe Bade Bade”: MakeMyTrip Files Confidentially For India IPO

MakeMyTrip has confidentially filed for an India IPO, with its US parent and Singapore arm set to sell part of their stake through an offer for sale.

If successful, it will become only the second travel-tech firm after Yatra to be listed in both the US and India. The company also plans to use the proceeds to strengthen its business and pursue acquisitions.

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“Jab Miya Bibi Ho Raazi”: Kissht Receives Certification For Mutual Fund Distribution

Kissht is expanding beyond lending after its subsidiary Invincible Minds received approval to distribute mutual funds in India.

The move marks the fintech's entry into wealth management as it looks to diversify its offerings. It's another sign of lenders building broader financial services platforms beyond credit.

Read more here

“Chennai Se Aaya Mera Dost”: Raptee.HV Enters Bengaluru

Raptee.HV has entered Bengaluru, marking its first expansion outside its home market of Chennai. The EV maker has opened a new experience center where customers can explore its T30 electric motorcycle, take test rides, and access aftersales support.

The move signals the start of its broader expansion plans across India.

Read more here

“Hum Saath Saath Hai”: Zithara.AI Forms Partnership With Palmonas

Zithara.AI has partnered with jewelery brand Palmonas to power smarter customer engagement across its retail stores.

Its AI-driven CRM platform will unify customer data, enable personalized communication, and automate engagement. The goal is to improve customer retention and drive more repeat purchases.

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“Purana Saal Naya Maal”: Khosla Ventures Backed upliance.ai Launches AI-Powered 12L Smart Oven

Khosla Ventures-backed upliance.ai has expanded its smart kitchen lineup with a new 12L AI-powered Smart Air Fryer Oven.

The appliance uses its proprietary Texture Control technology to cook food based on the desired texture instead of just time and temperature. It's now available through the company's website, Amazon, and select retail stores.

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1. Neo Group has raised ₹350 Cr in fresh funding led by Peak XV Partners, just weeks after securing ₹550 Cr from TVS Capital. The wealth management firm plans to use the capital to strengthen its technology, expand its team, and launch new products.

   Read more here

2. Climate-focused deeptech startup Ecozen is set to raise ₹125 Cr in debt financing through non-convertible debentures, with participation from Rajiv Poddar, Indel Money, InCred Finance, and others. This comes after the company secured ₹95 Cr in debt funding earlier this year.

   Read more here

3. Naturis Cosmetics has raised ₹100 Cr in its maiden funding round led by Sharrp Ventures, with participation from Mirabilis Investment Trust, Anicut Capital, Niveshaay, and angel investors. The investment marks a major boost for the beauty and personal care contract manufacturer.

   Read more here

4. Groyyo has raised Rs 90 Cr in the first close of its Rs 200 Cr Series B round led by Cornerstone Ventures. The AI-driven fashion manufacturing platform will expand manufacturing hubs and strengthen its design and trend forecasting tech.
   Read more here

In today’s deep dive, we will look at the startup market forming around India’s data centers. While attention usually goes to operators, hyperscalers and capacity announcements, another set of companies is working on cooling, backup power, fire safety, fiber, security, water management and maintenance. As India builds more data centers, these support businesses could become an important infrastructure market.

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India already has around 1.6 GW of operational data-centre capacity, making it the second-largest market in Asia-Pacific by operational capacity. Another 3.1 GW is in the development pipeline. Global capacity could almost double to around 200 GW by 2030.

Most of the attention will go to operators such as NTT, STT GDC, Nxtra, CtrlS, Yotta, AdaniConneX and Sify. They announce campuses, buy land and sign deals with cloud companies.

The supplier market receives far less attention.

That may change as AI facilities become harder to build and operate. Data centres are moving from relatively predictable server rooms towards dense industrial campuses that consume large amounts of electricity and produce enormous heat. The International Energy Agency expects global data-centre electricity consumption to more than double to around 945 TWh by 2030.

Every increase in computing demand eventually becomes a physical requirement somewhere else. More processors need more electricity. More electricity creates more heat. More heat needs additional cooling. Higher rack density requires stronger power distribution, better sensors, new fire systems and faster fiber links.

The data-centre economy therefore extends far beyond servers.

A data centre is closer to a factory than an office building

The easiest way to misunderstand a data centre is to think of it as a building filled with computers.

The computers are only the productive equipment. The rest of the facility exists to make sure that equipment receives uninterrupted electricity, remains within a narrow temperature range, stays connected and survives equipment failures.

A large data centre contains substations, transformers, switchgear, uninterruptible power supplies, battery banks, diesel generators, chillers, pumps, cooling towers, fire systems, security checkpoints, cable rooms and thousands of sensors. Teams monitor these systems every hour of the day.

Much of this infrastructure is duplicated. If one system fails, another must take over. The customer is paying for computing capacity, but the operator is spending heavily on redundancy.

This creates a different kind of supplier market.

A food-delivery company can experiment with a new software provider and replace it if the product fails. A data-centre operator cannot casually test an unproven UPS, cooling unit or fire-suppression system inside a live facility. Failure could affect hundreds of customers at the same time.

Suppliers must pass technical evaluations, receive certifications, complete pilots and prove that spare parts and service engineers will remain available for years. Approved-vendor status can take a long time to obtain.

Once a supplier enters, however, removal is also difficult. The operator becomes dependent on the company’s equipment, software, spare parts and technicians.

This is why companies such as Schneider Electric, Vertiv, Eaton and Munters have built large data-centre businesses globally. They sell physical equipment, but their strength comes from the installed base, maintenance contracts, replacement demand and customer trust. Schneider now covers power, cooling, security and management software within the same data-centre offering. Vertiv supplies UPS systems, cooling and integrated infrastructure, while Munters has been expanding manufacturing capacity for data-centre cooling equipment.

The Indian startup opportunity follows the same logic. The better businesses will not rely entirely on fresh construction. They will earn from equipment already deployed.

Cooling is becoming the first major bottleneck

Traditional data centres were mainly cooled by circulating cold air around server racks. Operators separated hot and cold aisles, installed computer-room air-conditioning systems and used chillers to remove heat from the building.

That model becomes less effective as rack density increases.

AI servers place several power-hungry processors inside the same rack. The heat is concentrated in a smaller area, and moving larger volumes of air through that space eventually becomes inefficient. ASHRAE’s latest AI data-centre guidance discusses liquid-cooling systems for racks operating at 50 kW to more than 100 kW.

Liquid cooling moves water or another fluid close to the processor. A cold plate absorbs heat directly from the chip. The heated fluid then passes through a cooling distribution unit, pumps and heat exchangers before returning to the server.

This changes the supplier list.

The facility now needs cold plates, manifolds, pumps, connectors, cooling distribution units, leak sensors, filtration, specialised fluids and technicians who understand both computing equipment and industrial cooling.

KühlTherm is one Indian company working on direct-to-chip liquid cooling. Its system uses a patented Mesh Cold Plate designed around the heat profile of CPUs and GPUs. The company is also working around cooling distribution and high-density rack requirements.

Uravu Labs is approaching the problem from another direction. Its technology uses reject heat from the data centre to extract water from atmospheric moisture. The company is pitching a combination of heat reuse, water generation and lower cooling costs.

The cooling market will not belong only to companies manufacturing complete systems. Many startups can enter through smaller components.

One company may specialise in leak detection. Another may monitor coolant quality. A third may help retrofit old facilities for liquid-cooled racks. Other businesses can inspect pipes, clean heat exchangers, recycle cooling fluids or predict pump failures.

Retrofitting may become particularly important.

A facility designed for ordinary cloud workloads cannot automatically accommodate dense GPU racks. It may lack adequate cooling pipes, water capacity, power distribution or floor strength. Upgrading the building while customers continue using it is a difficult engineering job.

The opportunity therefore includes installation, inspection and maintenance alongside manufacturing.

Cooling also shows why this market should not be analysed like software. A startup may have excellent cold-plate technology, but it still needs manufacturing quality, warranties, inventory and field technicians. One leak inside an expensive AI rack can damage the company’s reputation before it has built a meaningful installed base.

Technical performance gets the startup into the room. Reliable execution keeps it there.

Backup power is turning into an energy business

A data centre cannot wait for the electricity grid to recover after an outage.

UPS systems and batteries take over immediately. Generators start soon afterwards and can continue supplying the facility for a longer period. Operators maintain several layers of backup because even a brief power interruption can affect customers.

Diesel generators remain common because they are proven and can run for long periods when fuel is available. The problem is that they are noisy, polluting and expensive to operate. As data-centre campuses grow, the size of the required backup fleet also increases.

Indian startups are entering through battery systems and alternative generation.

Cygni Energy manufactures lithium-ion storage products and lists data-centre UPS systems as one of its business segments. The company has built a 4.8 GWh manufacturing facility and also works across commercial storage and large battery systems.

Offgrid Energy Labs is developing ZincGel, a zinc-bromide battery designed to store electricity for six to sixteen hours. The company says the system uses a water-based electrolyte and is non-flammable by design. Data centres are one of its stated applications.

Other Indian companies are exploring hydrogen generators and fuel cells. These technologies are still at an earlier stage, but the customer problem is clear. Operators want to reduce their dependence on diesel without compromising backup duration.

Batteries may eventually perform more than one job.

Today, a UPS battery largely sits idle and waits for an emergency. In the future, the same storage system could reduce peak electricity demand, store renewable power and provide services to the grid. Eaton, for example, markets grid-interactive UPS systems that allow data centres to use battery capacity for energy management while preserving backup requirements.

This could create several business models.

A battery company can sell equipment. It can lease batteries to the operator. It can charge a monthly fee for backup capacity. It can monitor battery health and guarantee availability. It can also replace degraded modules and recover material from old packs.

The strongest company may separate the technology from the financing.

Venture capital can fund battery development, software and customer acquisition. Long-term debt or infrastructure capital is more suitable for battery assets deployed at customer sites. Using expensive equity to own every battery will eventually weaken the balance sheet.

The same lesson is already visible in EV battery-swapping businesses. Technology and network operations may earn equity returns. Large pools of standardised batteries need lower-cost capital.

Maintenance software has to understand physical equipment

A data centre may have thousands of maintenance activities scheduled every year.

Generators must be tested. Fire cylinders need inspection. Cooling units require servicing. Batteries must be checked for degradation. Pumps, fans and motors produce signals that may indicate failure.

Much of this work is still managed through separate systems, spreadsheets, vendor reports and manual checklists.

Data-centre infrastructure management software usually focuses on racks, power, cooling capacity and IT equipment. Building-management systems control physical machinery. Maintenance software manages technicians and work orders. Vendor records and audit documents may sit somewhere else.

The startup opportunity is to connect these layers without forcing the operator to replace every existing system.

Facilio is one of the clearest Indian-origin examples. Its data-centre product manages preventive maintenance, vendor service levels, compliance records and energy monitoring across assets such as HVAC systems, generators, UPS units and fire equipment. The platform is designed to work alongside existing building-management and data-centre infrastructure systems.

Companies such as UptimeAI, Infinite Uptime and Detect Technologies have built predictive-maintenance products for industrial equipment. Their original customers are often factories, power plants and process industries, but the underlying technology can also be applied to pumps, cooling equipment, motors and generators inside data centres.

The valuable product is not another dashboard.

Operators already have dashboards. They need software that identifies a problem, explains the likely cause, creates a work order and records whether the repair was completed.

A temperature alert without context creates more work. A useful system would show that one cooling unit is drawing more electricity, producing less cooling and following the same pattern that preceded an earlier compressor failure.

That requires equipment data, maintenance history and repeated deployments. A young startup will rarely have enough data at the beginning. It needs customers to improve the product, while customers want evidence before allowing the product near critical equipment.

This makes partnerships important. A predictive-maintenance company may enter through an equipment manufacturer, facility-management contractor or insurance provider rather than selling directly to the operator.

The recurring revenue can be attractive, but only after the startup completes the slow work of integration.

Fire safety remains an incumbent-controlled market

Fire protection should be an obvious startup category. Data centres contain high electrical loads, batteries, cables, diesel fuel and equipment that must remain operational throughout the year.

Yet very few Indian startups specialise in data-centre fire suppression.

Most facilities still depend on established fire-engineering companies, multinational equipment suppliers and local installation contractors. Operators prefer systems with a long safety record because the cost of an unproven product is too high.

NFire is one of the few Indian companies introducing a connected layer. Its systems combine wireless smoke, heat and flame sensors with cloud monitoring and remote alerts. The company also markets predictive risk detection and integration with suppression systems for data-centre environments.

This is more likely to be the startup entry point.

A new company does not need to invent a fire-suppression gas immediately. It can monitor the health of existing systems, test whether cylinders remain pressurised, detect overheating cables or identify early thermal runaway inside battery rooms.

Battery fires will require particular attention. A conventional smoke detector may react only after the event has progressed. Sensors that monitor temperature, gases, electrical behaviour and battery-management data could identify risk earlier.

There is also a compliance problem.

Fire systems undergo inspections, tests and component replacements. Records may remain scattered across contractors and facility teams. A software company could create a live compliance record for every detector, cylinder, pipe and inspection.

The challenge is liability. A startup that claims to predict fires will be judged harshly when it misses one. Certification, insurance and careful product claims will matter as much as the technology.

This category may produce fewer venture-backed companies, but it can support profitable engineering businesses with monitoring and maintenance revenue.

Security extends from the gate to the fiber cable

Data-centre security begins before anyone reaches a server.

The outer perimeter needs cameras, intrusion detection and vehicle controls. Building entry may involve identity checks, biometrics and mantraps. Inside the facility, access becomes more restricted at every stage. A customer may have a private cage, while individual racks may require separate authorisation.

Smart-i Systems provides rack-level access control and environmental monitoring. Its rack units track temperature, humidity, smoke and water leakage and can send remote alerts.

Spintly’s wireless access-control systems and Staqu’s video-analytics products could also be used across data-centre campuses, although data centres are part of a wider customer market for both companies.

The security requirement does not stop at physical access.

Data moves between data centres through fiber networks. Operators must protect customer records, network traffic and administrative access. QNu Labs is developing quantum-security products for data-centre and telecom networks, including quantum key distribution and secure data-centre interconnection.

India’s regulatory environment strengthens this demand. CERT-In’s cybersecurity directions explicitly cover data centres, cloud providers and virtual private server providers. The Digital Personal Data Protection Rules, notified in 2025 with phased implementation, will also increase pressure on companies to maintain appropriate security and incident-management controls.

The more interesting product may combine physical and digital events.

Suppose a maintenance engineer opens a rack, changes a network component and a security alert appears shortly afterwards. Most facilities will record these events in separate systems. A combined platform could connect access logs, camera footage, maintenance tickets and network activity.

That is harder to build than a standalone access-control product, but it creates a deeper position inside the customer’s operations.

Fiber companies are building the roads between data centres

A data centre without reliable fiber is simply a building containing expensive machines.

Facilities need several network routes because a single cable cut should not isolate customers. They connect to telecom carriers, internet exchanges, cloud platforms and other data centres.

Lightstorm has built one of the more relevant Indian businesses in this layer. Its fiber network was connecting around 60 Indian data centres across roughly 24,000 route kilometres by 2024. Its Polarin platform allows customers to provision data-centre and cloud connectivity through a Network-as-a-Service model.

CloudExtel, Astrome and iBUS Networks address other parts of the connectivity market. CloudExtel builds shared fiber infrastructure, while Astrome develops wireless systems that can provide high-capacity links where physical fiber is difficult to deploy.

Fiber businesses can earn recurring revenue because customers pay for capacity over long periods. But they are also capital intensive. Routes must be built before every strand is fully occupied.

Inside the data centre, another problem appears.

Thousands of cables connect racks, switches, patch panels and meet-me rooms. Technicians must know where every cable starts, where it ends and whether it is still in use. Poor records lead to abandoned cables, incorrect connections and slower repairs.

Lightstorm has also described using remote robotics to automate physical network connections within data centres. This offers a glimpse of where fiber management may go.

There is still room for Indian startups to build cable-mapping software, automated tracing, optical-loss monitoring and digital records of every physical connection.

The customer will not buy these products because the interface looks better. It will buy them if they reduce installation time, prevent mistakes and allow the same team to manage more connections.

The rack is becoming a measurable business unit

Operators often sell capacity through racks, cages and power commitments.

Yet many facilities still lack a complete live view of each rack. They may know how much power was allocated but not whether the rack has enough cooling headroom, whether the rear temperature is rising or whether unused equipment is consuming electricity.

Rack-monitoring systems combine smart power-distribution units, temperature sensors, humidity sensors, door controls, smoke detectors and water-leak sensors.

Smart-i Systems already offers this type of hardware in India. Companies such as AuroEDGE package monitoring with micro data centres, while software providers can collect information from multiple brands of sensors and equipment.

The larger opportunity is to connect operational information with commercial information.

A rack-intelligence platform could show available power, cooling capacity, customer ownership, maintenance history, door access, equipment age and billing status. The operator could then see which racks are underused, which ones are approaching thermal limits and where additional capacity can be sold.

Global suppliers are already combining these categories. Schneider offers integrated row systems with racks, power, cooling and management software. Vertiv packages power, cooling, monitoring and racks for edge and micro data centres.

Indian startups will need to decide whether to compete by manufacturing the rack, supplying the sensors or owning the software layer above different hardware brands.

Manufacturing alone may become a price-driven business. Software alone may struggle without access to reliable sensor data. Combining hardware, software and installation creates a stronger product, but it also creates inventory and service costs.

Water could decide which campuses receive permission to grow

Data centres use water mainly through cooling systems. The exact requirement depends on the cooling design, climate, workload and source of electricity.

In a water-stressed Indian city, however, even an efficient facility can face opposition. Residents may not accept large industrial campuses drawing potable water while nearby areas depend on tankers.

This creates demand for water accounting, leak detection, wastewater reuse and alternative cooling.

DigitalPaani provides software for operating water and wastewater-treatment plants. Its system guides plant staff, tracks performance and helps facilities increase water recovery and reuse.

FluxGen uses sensors and analytics to identify leaks, abnormal consumption and inefficient water use. Similar products from Kritsnam, WEGoT and SmartTerra can help operators measure water across cooling towers, treatment plants and individual facility zones.

Indra Water works on decentralised wastewater treatment, while Uravu’s heat-reuse approach attempts to combine cooling and atmospheric water generation.

These companies are mostly adjacent suppliers today. Data centres are not always their largest customer segment. But the product fit is strong.

Water management could become a condition for approval rather than a voluntary sustainability purchase. Operators may need to show where water comes from, how much is reused and how consumption changes during summer.

That creates a more defensible customer need than a generic environmental dashboard.

A startup could monitor every water inlet and outlet, calculate Water Usage Effectiveness, identify leaks and prepare reports for regulators, customers and local communities. It could also operate the treatment plant and charge for each litre recovered.

The difficult part will be proving savings. Water systems vary greatly between facilities. The company must install accurate meters, maintain them and separate genuine efficiency gains from changes in workload or weather.

Once proven, however, the service can become recurring and difficult to remove.

The phrase “picks-and-shovels” can be misleading

It is tempting to place every data-centre supplier inside one attractive market. That would be a mistake.

A cooling manufacturer, fiber operator, maintenance-software company and fire contractor have very different economics.

The cooling company needs factories, testing and warranties. The fiber operator needs debt and long-term capacity contracts. The software company needs integrations and recurring subscriptions. The fire contractor may earn through projects and annual maintenance.

Some of these can become venture-scale technology companies. Others are better suited to private equity, infrastructure funds, industrial capital or profitable family ownership.

The venture-friendly categories are usually those where the company can sell the same intellectual property across many facilities. Predictive-maintenance software, network automation, security products, cooling controls and novel battery chemistry fit this description.

Hardware businesses can also attract venture capital when they own difficult technology and have export potential. KühlTherm’s cold plates, Offgrid’s battery chemistry and QNu’s quantum-security products fall closer to this category.

Standard equipment distribution is different. Importing a sensor, adding a dashboard and installing it at customer sites does not automatically create a technology company.

Investors should examine five things.

Does the company own the product? Can it earn revenue after installation? Does each new deployment make the product or service better? Can it enter another facility without redesigning everything? Can it finance growth without constantly raising equity for inventory and customer projects?

These questions separate a repeatable infrastructure company from a contractor wearing startup language.

India’s supplier opportunity will depend on service, not announcements

India will continue importing several important data-centre components. Global suppliers have decades of reliability data, approved products and service networks.

Indian companies do not need to replace all of them.

They can begin with local conditions that international products handle poorly. Indian facilities operate in high heat, humidity, dust, unstable grid conditions and regions with water stress. Imported equipment designed for another climate may require changes.

Startups can also move faster in retrofits, local servicing and software integration. A multinational may supply the chiller. An Indian company can monitor it, predict failures, optimise its water use and provide technicians within a few hours.

Over time, the company can move deeper into components and manufacturing.

The strongest businesses will probably combine three capabilities: proprietary technology, field execution and recurring service.

Technology without service will fail during deployment. Service without technology will remain a contractor business. Hardware without repeat revenue will struggle with working capital.

Data-centre operators will not select suppliers because they use AI in their pitch deck. They will ask whether the equipment has failed before, how quickly a technician can reach the site, whether spare parts are available and who takes responsibility when something goes wrong.

That makes this a difficult startup market. It also makes successful suppliers unusually sticky.

India’s data-centre boom may begin with land, servers and cloud contracts. The longer business will sit in cooling those servers, powering them, connecting them and keeping them alive year after year.

Construction creates capacity. Maintenance turns that capacity into reliable infrastructure.

Zepto wants to raise over ₹8,000 crore through a fresh issue as part of a massive IPO that could exceed ₹10,000 crore. Its expansion plans are ambitious, involving the setup of nearly 2,000 new dark stores, alongside heavy spending on lease rentals, cloud infrastructure, and marketing. This is a significant capital request from a company that generated roughly ₹22,600 crore in operating revenue last year but still posted losses nearing ₹6,000 crore. Investors are left asking a fundamental question: can quick commerce justify a $7 billion valuation while the business continues to fund its growth primarily through widening losses?

Management’s primary answer to these margin concerns is an initiative called Select. Zepto’s current operating disadvantage isn't its store count; it's basket economics. Its average order value trails behind competitors like Blinkit and Instamart. Delivering those smaller baskets costs roughly the same in picking, packing, and rider wages, which leaves significantly less profit once those expenses are settled.

Select is intended to fix this by adding margin-rich items such as imported snacks, premium dairy, artisanal breads, and organic produce; to the everyday grocery run. These products allow Zepto to collect higher price premiums, demand better commissions from brands, and rely less on aggressive discounting than it does for everyday staples.

The strategy is logical, but Zepto isn't entering a vacuum. Blinkit is already testing a premium "Gourmet" segment using dedicated dark stores in affluent areas, which gives it better control over cold storage, product assortment, and quality consistency. Instamart is taking a different path, focusing on high-margin private labels and smart prompts inside regular searches to encourage upgrades. Meanwhile, niche players like FirstClub are building their entire brand around curated, quality-first grocery.

Zepto’s approach has one potential edge: it is building Select as an interface layer within its existing app and distributing premium inventory through its current dark-store network. This is far more capital-efficient than building separate infrastructure.

However, premium grocery is as much about handling as it is about variety. Consumers buying berries, cheese, meat, or fresh bread care deeply about freshness and storage. Mixing this inventory into ordinary dark stores makes service harder to control. If Zepto expands Select too widely before its operations are ready, the gains in gross margin could easily be erased by higher wastage and inventory risks.

Investors should wait for clear evidence that mature dark stores can self-finance expansion. The real upside for Zepto isn't just selling more premium goods; it’s turning Select into a powerful advertising and discovery platform where brands pay for visibility. At its current valuation, Zepto needs to prove that Select actually boosts contribution margins rather than just driving more volume through promotional subsidies.

Let’s go through what else is happening in Indian startup world - Grab your simmering cup of StartupChai.in and unwind with our hand-brewed memes.

“Humko Tumse Ho Gaya Hai Pyaar”: Aurum PropTech To Acquire Housing.com For ₹458 Cr

Aurum PropTech is set to acquire Housing.com in an all-share deal worth ₹458 Cr. The deal folds Housing.com into Aurum’s wider real estate tech stack after earlier buys such as PropTiger and NestAway.

Housing.com has had quite the journey, from the dramatic exit of founder Rahul Yadav to its merger with PropTiger-owner REA India back in 2017.

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“Coaching Ka Control Room”: PhysicsWallah Acquires Controlling Stake In Sarrthi IAS

PhysicsWallah has approved a Rs 71.8 Cr investment in UPSC coaching platform Sarrthi IAS, increasing its stake from 40% to 51%. The move makes Sarrthi IAS a subsidiary of the listed edtech company.

The transaction is part of PW’s earlier plan to acquire up to 85% of Sarrthi IAS in six tranches between FY26 and FY31.

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“Hum Saath Saath Hai”: TVS’ Home Credit Acquires Varthana Finance To Expand Lending Footprint

TVS VENU Group's Home Credit India is acquiring education-focused NBFC Varthana Finance to expand its lending business.

The deal will strengthen its presence in secured and longer-tenure loans while reaching more customer segments. With TVS Credit and Home Credit already under its umbrella, the group is steadily widening its financial services footprint.

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“Kheti Bhi Electric Ho Gayi”: KisanKraft Launches Electric Farm Equipment Range

KisanKraft has launched electric farm equipment with the E-Inter-cultivator and E-Self Propelled Reaper for small and medium farmers. The company said field trials showed operating costs of about Rs 10 per hour versus around Rs 170 per hour for comparable petrol-powered machines.

Both products use lithium iron phosphate batteries and are designed for Indian farm conditions, with 3.5 to 4 hours of runtime on a single charge.

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“Suswagatam Suswagatam”: Former ISRO Chief S Somanath Joins Agnikul Board

Former ISRO chief S Somanath has joined Agnikul Cosmos as a board observer ahead of its ambitious Mission 02.

The upcoming flight aims to achieve India's first recovery of an orbital-class rocket booster while testing a reusable upper stage that stays operational in orbit. The move brings decades of space expertise to Agnikul as it pushes the boundaries of India's private space sector.

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“Aayein Aapka Intezaar Tha”: Seclore Appoints Hitesh Kathuria as Chief Customer Officer

Data security firm Seclore has appointed Hitesh Kathuria as its new Chief Customer Officer. He will lead the company's global customer teams, bringing customer success, implementation, support and services under one roof.

The goal is to help enterprises get more value from Seclore's data-centric security platform in the AI era.

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“Mubarakan Ji Mubakaran”: Eazzy Appoints Manish Gupta as Co-founder and CTO

Eazzy has appointed Manish Gupta as its Co-founder and Chief Technology Officer as it enters its next growth phase.

He will lead the company's technology strategy, AI initiatives, product engineering and platform architecture. The focus is on building a smarter and more scalable post-purchase ecosystem for millions of Indian households.

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1. Enterprise AI startup logcat.ai has raised $2.5 Mn (around ₹24 Cr) in a pre-seed round led by Founders' Co-op to build its AI platform for Android and Linux engineering. The fresh funds will be used to expand its engineering team and enhance AI tools.

   Read more here

2. AI startup Aina has emerged from stealth with a $5.5 Mn seed round led by investors including Info Edge to bring its AI-native hardware interface to market. The startup is betting that AI-first hardware could become the next major computing platform beyond smartphones and PCs.

   Read more here

3. Beauty and personal care manufacturer Naturis Cosmetics has raised ₹100 Cr in a Series A round led by Sharrp Ventures to expand its manufacturing capacity. The funding reflects strong investor interest in the fast-growing beauty sector.

   Read more here

4. Former Rippling cofounder Prasanna Sankar has raised $15 Mn for AI software engineering startup Vorflux after shutting down his previous venture, 0xPPL. The Y Combinator-led seed round highlights continued investor enthusiasm for AI tools.

   Read more here

5. Physical AI startup SwitchOn has raised $8 Mn in a pre-Series B round led by IvyCap Ventures to scale its AI-powered manufacturing inspection platform. The funding reflects growing demand for AI-driven quality control as manufacturers look to reduce defects and automate production.

   Read more here

6. Institutional laundry startup Quick Clean has raised ₹133 Cr in a Series B round led by Stakeboat Capital to expand its footprint. The funding highlights growing investor interest in tech-enabled services that help hotels and hospitals modernise large-scale laundry operations.

   Read more here

7. AI-powered sales intelligence startup Reo.Dev has raised $11.3 Mn in a Series A round led by Elevation Capital to expand its US presence. The fresh funding will fuel sales, marketing and AI product development as the startup grows its enterprise customer base.

   Read more here

8. Foundational protein design startup Mandrake Bio has raised ₹16 Cr in a pre-seed round co-led by Activate and Antler. The round also attracted backing from Spectrum Impact, DeVC and several prominent angel investors, signalling early confidence in its biotech ambitions.

   Read more here

9. Agritech startup Rize has raised $31 Mn in a Series B round backed by investors including Temasek, BNP Paribas Asset Management Alts and The Rockefeller Foundation. The funding will support the startup's efforts to scale sustainable agriculture solutions.

   Read more here

10. Precision liquid cooling startup KuhlTherm has raised $1.1 Mn in a seed round led by Arkam Ventures. The fresh capital will go towards product development, R&D, team expansion and partnerships as demand for high-performance computing infrastructure grows.

    Read more here

11. Groyyo has raised Rs 90 Cr in the first close of its Rs 200 Cr Series B round led by Cornerstone Ventures. The AI-driven fashion manufacturing platform will use the capital to expand manufacturing hubs, strengthen its AI design and trend forecasting platform, and grow internationally.
    Read more here

A cloned voice, forged signatures and coordinated digital messages were enough to move nearly €3 million, about ₹33 crore, out of a Capillary Technologies subsidiary. The attackers didn't breach Capillary's core SaaS platform or steal customer data. They manufactured the authority of senior management and persuaded employees to approve the transfers themselves.

The fraud happened at a recently acquired overseas subsidiary. Indian SaaS companies usually integrate acquired businesses in a predictable order: customers, sales teams, product road maps and financial reporting come first. Local banking permissions, treasury controls and inherited approval practices take longer. Ownership changes immediately. Governance does not. That delay created the opening.

Capillary had secured its core systems, but the criminals didn't need them. They targeted the edge of the corporate structure, where a local finance team, a foreign bank account, time-zone differences and executive urgency could override headquarters-level discipline. The reported recovery of around €450,000 also shows how quickly money moved once employees authorised it. Cross-border fraud is designed around weekends, multiple beneficiary accounts and jurisdictional delays.

Modern tools can produce usable voice clones from 3 to 10 seconds of clean audio. Founders provide the training material themselves through podcasts, earnings calls and conference appearances. The global warning came before Capillary: in 2024, engineering firm Arup confirmed an employee in Hong Kong was tricked into transferring HK$200 million after joining a video call populated by synthetic versions of senior executives. Arup's systems weren't hacked either.

Both incidents show that conventional cybersecurity can work perfectly while corporate security fails. Firewalls and endpoint protection are irrelevant when an authorised employee voluntarily moves money after receiving apparently consistent instructions through email, voice and signed documents. Even maker-checker approval breaks down when both approvers rely on the same synthetic evidence.

Startups are particularly exposed because speed and founder authority are treated as operating advantages. A finance manager receiving a late-night instruction about a confidential acquisition is conditioned to move quickly. Asking the CEO to wait feels like poor execution. Attackers exploit this cultural reflex.

For a Series C or D startup, ₹33 crore can represent 5-10% of available runway, enough to delay hiring or weaken negotiations before a fundraise. The loss didn't come from a failed product bet. It came from a preventable control failure, which raises harder questions about management quality during diligence.

The stronger response isn't better detection of synthetic media alone. That will remain an arms race. The real fix is making voice, video, email and executive urgency irrelevant for high-value transfers. Large payments should require secure treasury applications, hardware-backed approvals, independent multi-party consent and new-beneficiary cooling periods that can't be waived through a phone call. Recently acquired subsidiaries shouldn't retain large autonomous payment powers while governance integration remains incomplete.

Capillary protected its technology stack. The criminals found value in the organisational stack instead.

Let’s go through what else is happening in Indian startup world - Grab your simmering cup of StartupChai.in and unwind with our hand-brewed memes.

“Aasma Luck Aasma”: BigBasket To Slash Geographical Presence By Half To 40 Cities

BigBasket may soon shrink its footprint from 76 cities to just 40, focusing only on markets that make business sense.

As the quick commerce race heats up with Amazon, Flipkart, Blinkit, Zepto, and Instamart, the company is shifting gears toward profitability. Its new CEO is betting on tighter operations, smarter pricing, and sharper execution to get there.

Read more here

“Ye Kya Ajooba Hai”: Zomato Piloting AI-Powered Voice Bot For Food Delivery

Zomato is testing an AI-powered voice bot that chats with users and recommends food based on what they're craving.

The feature is currently available to a small group of users, while its logistics team already uses voice AI to assist delivery partners. The move comes as Zomato continues to post strong revenue and EBITDA growth.

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“AI Ka Unicorn Express”: Emergent Raises $130 Mn, Becomes Third AI Unicorn Of 2026

AI software creation platform Emergent has raised $130 Mn in Series C funding led by Creaegis, with participation from Claypond, Sentinel Global, Khosla Ventures, SoftBank Vision Fund 2, Lightspeed and Y Combinator.

The round values Emergent at $1.5 Bn, a fivefold jump in four months. The startup says over 12 Mn apps have been built on its platform, with nearly 70% of users having no prior coding experience.

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“Sapne Dekhe Bade Bade”: InsuranceDekho To File DRHP By September-End

InsuranceDekho is gearing up for its IPO, with plans to file its DRHP by the end of September at a reported valuation of around ₹9,500 Cr.

The public issue is likely to include both fresh shares and an offer for sale, even as its merger with RenewBuy moves ahead. The filing adds more momentum to India's startup IPO pipeline.

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“Hum Saath Saath Hai”: Swiggy’s Instamart launches LPG cylinder delivery in partnership with HPCL

Swiggy Instamart has partnered with HPCL to launch on-demand LPG cylinder delivery, becoming the first quick commerce platform in India to offer the service.

The rollout begins in Bengaluru with HPCL's new 10 kg composite cylinder and its 5 kg metal cylinder. It's another sign that quick commerce is expanding well beyond groceries.

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“Hum Tumhare Hai Sanam”: Recode Studios acquires 51% stake in beauty brand Aflairza

Recode Studios is expanding its beauty portfolio with the acquisition of a 51% stake in luxury cosmetics brand Aflairza Professionals.

The deal will be completed in two phases through a mix of promoter share purchases and fresh capital infusion. The move strengthens Recode's presence in the premium beauty segment.

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1. Emergent has raised $130 Mn in Series C funding led by Creaegis, with participation from Claypond, Sentinel Global, Khosla Ventures, SoftBank Vision Fund 2, Lightspeed and Y Combinator. The round values the AI startup at $1.5 Bn.
   Read more here

2. Ather Energy is raising up to ₹1,200 Cr to power its next phase of growth, with Hero MotoCorp leading the round through a ₹960 Cr investment. NIIF's India-Japan Fund will invest ₹200 Cr, while the founders are also putting in fresh capital.

   Read more here

3. Healthy snacking brand Open Secret has raised over ₹50 Cr to expand its offline presence and grow its product portfolio. The profitable startup has already crossed ₹200 Cr in ARR and is aiming for ₹1,000 Cr over the next three years.

   Read more here

4. D2C grocery startup Anmasa has raised ₹30 Cr in seed funding to expand beyond the NCR region. The startup is betting on its hyperlocal "bright store" model to deliver freshly made, minimally processed staples tailored to local demand.

   Read more here

5. E3 Electric.Ai has raised ₹100 Cr ahead of the launch of its first AI-powered electric scooter, the E3 TRION. Founded by former TVS Motor EV head P. Sanjeev, the startup plans to expand across 90 markets while investing heavily in technology and IP.

   Read more here

6. Aurrevia has launched a Category III AIF with a $10 Mn anchor commitment to back research-driven public market investing. The fund blends deep value and momentum strategies with a strong focus on risk management.

   Read more here

7. Hyperlocal grocery startup Anmasa has raised ₹30 Cr in a seed round led by Fireside Ventures, with participation from Blume Ventures and other investors. The fresh funding takes its total capital raised to ₹47 Cr.

   Read more here

8. Fintech SaaS startup Hisabkitab has raised a seed round at a ₹20 Cr valuation to strengthen its AI-powered accounting platform for SMEs. The fresh capital will be used to build AI agents for auditing, tax preparation, receivables, payables, and more.

   Read more here

9. Promom has raised Rs 30 Cr from Fireside Ventures. The maternal and baby care brand will use the capital for product innovation, category expansion and wider accessibility for Indian mothers.
   Read more here