Indian startup VC funding fell again below the $100 million mark, totaling about $81 million across 22 deals in the fourth week of April. The drop is attributed to a shortage of large-ticket transactions amid tougher macro conditions and ongoing US-Iran tensions. With capital largely concentrated in early stages and AI activity still limited, a mid-year revival is the hope.
Bob Iger, the former Disney CEO who has exited the company, is rejoining Thrive Capital as an advisor. He already holds a stake in the venture firm and previously served as a venture partner there, making his return less of a debut and more of a homecoming for the investor behind major media turns.
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Global tech firms have used corporate venture capital to spot startups early, but Indian IT players have often lagged. Now AI-first companies are pulling in big VC money—and even enticing senior IT leaders to launch challenger ventures. The question: can Indian IT build real CVC muscle fast enough to match the pace of AI disruption?
In an ET Prime interview, Rajan Anandan of Peak XV Partners says India’s climate-tech opportunity is large and the firm is actively focused on it. He also expects more science-backed companies to emerge and warns that recent governance lapses in some startups can shape investor trust and outcomes. The message: climate bets require strong execution and oversight.
Bira 91, the venture-backed beer brand, is reportedly moving toward founder removal after the board backed action over poor business decisions. Unlike many such cases where employees remain silent, insiders say the staff actively triggered or supported the motion, signaling a rare internal push during a corporate turning point.
An agentic AI platform startup, Lyzr.AI, says founders waste 40% to 60% of their time fielding the same questions from different venture capitalists. To reduce that repetitive work, it is rolling out “Agent Sam,” an AI assistant designed to help prepare and respond to common investor queries, potentially speeding up fundraising conversations.
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JITO Incubation and Innovation Foundation plans to invest Rs 80–100 crore in early-stage startups over the next 12–18 months, backing 20–25 companies annually. The foundation has also taken a step to expand its deal flow by investing in Atomic Capital. It’s now preparing a new Asia-Pacific accelerator program focused on AI, fintech, and climate ventures.
Prosus, the Dutch investor backed by Tencent that has poured about $8 billion into India, is moving beyond bets into a more aggressive AI-led strategy. With milestones like the Swiggy IPO boosting confidence, it’s launching a new initiative built around a partnership and a ground-up approach—drawing attention for its unusual, talent-driven spark.
D2C farm produce platform Pluckk has raised Rs 100 crore from its existing investor Euro Gulf Investment in an all-equity round, taking total funding to about $26 million. The company says it will deploy the money to build R&D for a new product range, upgrade its technology, and expand its market presence, according to founder and CEO Pratik Gupta.
Nithin Kamath said Rainmatter has invested over Rs 1,500 crore across 160+ startups. He added that Zerodha puts 10% of its earnings into startups and another 10% into social development via Rainmatter. Kamath emphasized the firm isn’t chasing quick exits, signaling a long-term approach to building companies and impact.
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Luminai has closed a $38 million Series B funding round led by Peak XV Partners, marking a significant vote of confidence in the company’s next growth phase. The round underscores ongoing investor appetite for startups and signals momentum as Luminai prepares to scale its product and operations following the new capital infusion.
The government has notified the establishment of Fund of Funds 2.0, a Rs 10,000 crore second tranche aimed at mobilising venture capital. The programme will focus on deeptech and tech-driven innovative manufacturing startups, along with early-growth stage enterprises, seeking to accelerate funding and scale for more ambitious, technology-led companies.
ClayCo has raised nearly Rs 35 crore in a new funding round, saying the money will go toward accelerating product development, expanding into new categories, and strengthening working capital. The company framed the raise as a push to scale faster and improve operational readiness ahead of broader market expansion.
With India’s IPO boom fueling a “happy harvest” for PE and VC, a Supreme Court stance is casting a shadow over how offshore investors structure funds into the country. Stakeholders fear renewed scrutiny of complex cross-border arrangements, and the court has signaled that simply producing tax-haven residency certificates won’t automatically justify tax treatment.
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TR Capital plans to deploy $1 billion in India over the next five years through its secondaries strategy, targeting sectors including consumer, financial services, and healthcare. The firm will also selectively scout deals at the crossroads of software and artificial intelligence. It has appointed Umang Agarwal as managing director, signaling a sharper local leadership focus.
Novyte Materials has raised pre-seed funding with support from Theia Ventures and other backers. The company says the capital is meant to boost its speed, talent, and execution, helping translate early materials work into faster product development and scaling. The investment signals continued interest in nascent deep-tech teams building from early traction.
Indian consumer sector investment fell in FY26, but the number of deals rose sharply. Investors appear to be moving away from large, single-shot bets toward smaller, diversified investments with tighter operational discipline. Mega deals are largely missing, yet early-stage funding is holding up as companies prioritize filling capability and market gaps instead of chasing only rapid scale.
MIXI Global Investments Inc. is rolling out a $50 million India-focused fund, signaling a deeper push into India’s consumer and gaming ecosystem. Managing Director (Investment – India) Tomoharu Urabe says the firm sees enduring growth in consumer-tech adoption and gaming demand, positioning the fund to back opportunities as the market scales.
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US-based Glade Brook Capital is reportedly in discussions to invest $20–25 million in Sarvam AI’s $320–350 million funding round. The round values the startup at about $1.5 billion. Strategic backers such as Nvidia, Amazon, and HCLTech are also expected to participate alongside venture capital firms, signaling growing international interest in India’s AI boom.
India led the global IPO market in 2025, fueled by venture-backed startups reaching public-market readiness in under five years. The momentum reflects a changing founder mindset focused on scaling earlier and preparing for listing. In total, 20 VC-backed startups went public and nine new unicorns emerged, alongside a count of 28 profitable unicorns, signaling a maturing startup ecosystem.
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