Venture funding for Indian startups showed signs of recovery in August, rising to $961 million across 100 deals after slipping 38% in July. While total inflows stayed below the $1 billion mark, growth-stage and late-stage investments drove the rebound with $733 million from 24 deals, while early-stage startups raised $228 million through 68 deals.
Fintech dominated sectoral funding with $314 million across 14 deals, followed by e-commerce with $196 million and healthtech with $106 million. Mumbai led the city-wise charts with $410 million, ahead of Bengaluru and Delhi-NCR.
Key Highlights
- Indian startups raised $961 million in August, driven by growth and late-stage deals, led by fintech.
- Early-stage investments accounted for $228 million, while fintech, e-commerce, and healthtech dominated sector funding.
The top 10 growth and late-stage deals totaled $558 million, led by Weaver Services ($170M), Truemeds ($85M), and Zepto ($46M). In early-stage rounds, Arintra raised $21 million, followed by Dashverse ($13M) and Jeh Aerospace and Pronto ($11M each). Series A funding led with $202 million, followed by Series B at $158 million.
The month also witnessed notable acquisitions across fintech, healthtech, and automation. Niyo acquired Kanji Forex, Credgenics acquired Arrise, MakeO bought Apple Dental, Uniphore added US-based Orby AI, and StampMyVisa acquired Teleport.
While only one official layoff was reported, unreported job cuts in gaming firms followed the enactment of the Promotion and Regulation of Online Gaming Act, which forced several companies to shut real-money gaming operations or pivot. Despite this, more than 28 senior executive roles were filled in August, indicating organizational restructuring.
Also Read: Paytm to Invest Rs 455 Cr in Subsidiaries, Exits Real-money Gaming Biz
Emerging trends include the rise of microdrama apps, speculation about TikTok’s return to India despite no official clearance, Uber CEO Dara Khosrowshahi identifying Rapido as Uber’s toughest rival in India, and PhysicsWallah preparing for a ₹4,500 crore IPO despite an edtech funding slowdown.
Despite August’s rebound, analysts caution that September could remain muted amid US tariffs, gaming restrictions, and policy uncertainties. The RMG ban may affect fintechs tied to gaming revenues, while potential easing of Chinese investment rules could offer longer-term relief.
