Indian startup funding made a noticeable comeback in August 2025 after a weak July, clocking nearly $960 million across 100 deals. While the figure stayed below the $1 billion mark, strong activity in fintech, e-commerce, and healthtech drove the rebound, with late-stage deals contributing the lion’s share.
At the same time, the industry is grappling with uncertainty triggered by the government’s crackdown on real money gaming (RMG) firms, which has forced multiple startups to shut shop or pivot into new verticals.
Funding Overview
According to Startupbydoc data, startups collectively raised $961 million last month.
- Growth & late-stage deals: $733 million from 24 rounds
- Early-stage deals: $228 million from 68 rounds
- Undisclosed deals: 8 rounds
This marked a recovery compared to July’s slump, though 2025 has seen limited billion-dollar months. August stood out as the fourth-best funded month of the year, trailing behind January, March, and May.
Top Growth-Stage Deals
The 10 biggest growth and late-stage deals accounted for more than $550 million in inflows.
- Weaver Services led with $170M in housing finance.
- Truemeds secured $85M in the e-pharma space.
- The Sleep Company raised $56M.
- Amnex Technologies brought in $52M.
- Zepto, the quick commerce player, closed a $46M round.
- Darwinbox bagged $40M.
- RENÉE Cosmetics and R for Rabbit raised $30M and $27M respectively.
- Fibe and TransBnk added $26.5M and $25M.
Top Early-Stage Deals
In the early-stage segment, $101 million was raised across the top 10 startups:
- Arintra (medical coding) led with a $21M Series A.
- Dashverse (entertainment) followed with $13M.
- Jeh Aerospace and Pronto raised $11M each.
- Graas AI and WizCommerce bagged $9M and $8M.
- Vutto, DPDzero, Brandworks Technologies raised $7M each.
- Refold AI closed with $6.5M.
Sector & City Breakdown
- Fintech dominated with $314M across 14 deals (33% share).
- E-commerce followed with $195M (18 deals).
- Healthtech saw $106M across 3 deals.
- AI startups raised $96M.
City-wise inflows:
- Mumbai led with $410M across 15 deals (43% share).
- Bengaluru followed with $178M (35 deals).
- Delhi-NCR raised $74M (21 deals).
- Pune & Hyderabad together contributed ~$140M.
M&A Activity
The month also witnessed notable acquisitions:
- StampMyVisa acquired Teleport.
- Niyo picked up Kanji Forex.
- Credgenics acquired Arrise.
- MakeO bought Apple Dental.
- Uniphore acquired US-based Orby AI Inc.
Key Trends
- RMG shutdowns: Hundreds of gaming startups face existential threats post-ban, impacting 200,000+ jobs and over $2.3B in taxes.
- Rise of micro-drama apps: Platforms like WinZO’s ZO TV, Flick TV, Kuku TV, and Eloelo are seeing a surge.
- TikTok comeback rumors: ByteDance’s India hiring has reignited speculation, but the ban remains.
- Uber CEO on competition: Dara Khosrowshahi identified Rapido as a stronger rival than Ola in India.
- PhysicsWallah IPO: The edtech unicorn is preparing for a Rs 4,500 Cr IPO, even as the sector faces a funding drought.
Outlook
While August brought relief to the ecosystem, policy hurdles such as the RMG ban and global macro concerns may weigh on investor sentiment in September. However, fintech and consumer-focused sectors continue to attract strong investor interest, keeping the long-term outlook cautiously optimistic.
Disclaimer
Startupbydoc is an independent platform covering the Indian startup ecosystem. Some of our investors may have interests in companies mentioned in this article, but this does not influence our reporting or analysis.