Indian startups raise $194 million this week

IANS May 17, 2025 488 views

Indian startups demonstrated robust funding momentum this week, collectively raising $194.22 million across 28 deals. Bengaluru continued to be the epicenter of startup investments, leading with 12 deals in diverse sectors like healthtech, foodtech, and AI. Seed funding emerged as the most prevalent investment stage, highlighting the ecosystem's potential for early-stage innovations. Notable funding highlights included Farmley's Series C round and Complement1's $16 million seed investment in oncology.

"The week saw important business developments across multiple startup ecosystems" - Startup Funding Report
Indian startups raise $194 million this week
New Delhi, May 17: Indian startups collectively raised around $194.22 million this week across 28 deals.

Key Points

1

Bengaluru dominates with 12 startup funding deals

2

Healthtech emerges as most active investment sector

3

Seed funding rounds lead investment landscape

4

Farmley and VFlowTech highlight major funding rounds

The funding spanned nine growth and late-stage rounds and 18 early-stage deals, with one startup choosing not to disclose its funding amount. Bengaluru continued to lead India’s startup ecosystem, recording 12 deals. Delhi-NCR followed with seven, while Mumbai, Jaipur, and Ahmedabad also saw funding activity.

Healthtech emerged as the most active sector this week with four deals, followed by foodtech and AI startups with three deals each. Other sectors that drew investor interest included media and entertainment, logistics, and fintech.

Seed funding was the most common deal type, with 12 rounds, followed by Series B, Series A, and Series C investments. Among the growth and late-stage deals, D2C snacking brand Farmley led with its Series C round backed by L Catterton. Battery tech startup VFlowTech secured $20.5 million in a Series B round, while Nobel Hygiene raised $20 million through a combination of primary and secondary transactions. Other funded companies included Celebal Technologies, Avammune Therapeutics, Hocco ice creams, M1xchange, Biryani Blues, and an omnichannel jewellery brand.

On the early-stage front, startups raised a total of $57 million. Complement1, an oncology-focused company, led this segment with a $16 million seed round. Other funded startups included mixed reality platform Flam, AI ventures like Hyperbots and Adopt AI, and manufacturing firm TIEA Connectors. Analytics startup Cryptique also received funding.

The week also saw important business developments. Capillary Technologies, a loyalty management platform powered by AI, acquired Canada-based Kognitiv to strengthen its presence in North America. Meanwhile, Curefoods acquired exclusive rights to bring Krispy Kreme to North India, marking the brand’s regional debut.

On the leadership front, cloud-based media SaaS company Amagi appointed two independent directors in line with the Companies Act as it moves toward an IPO. Meanwhile, the average startup funding over the past eight weeks has been around $218.61 million, with approximately 25 deals each week.

Reader Comments

R
Rahul K.
Great to see Bengaluru continuing to dominate the startup scene! 🚀 But I wonder why Chennai and Hyderabad aren't getting more deals despite having great talent pools. The government should focus on developing these ecosystems too. #StartupIndia
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Priya M.
As someone working in healthtech, I'm thrilled to see our sector getting attention! But $194M is still small compared to global standards. We need more domestic investors with risk appetite rather than relying only on foreign funding.
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Arjun S.
Farmley getting Series C funding shows the potential of Indian D2C brands. But we need to ask - how many of these funded startups actually become profitable? Too much focus on valuation, not enough on sustainable business models.
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Neha T.
Exciting times for Indian startups! 😊 But why only metro cities getting love? Smaller cities like Jaipur and Ahmedabad have great potential too. More decentralization would create jobs across India, not just in 3-4 cities.
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Vikram J.
Battery tech getting $20M is a positive sign. With India's push for EVs and renewable energy, we need more homegrown solutions rather than depending on Chinese imports. Jai Hind!
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Sneha P.
Krispy Kreme coming to North India is fun, but shouldn't we focus more on funding Indian food brands like Biryani Blues mentioned here? Our local flavors have global potential if supported properly!

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Tags:
Indian Startups Startup Funding Bengaluru Ecosystem Healthtech Venture Capital Series Funding