May 25, 2025 |By StratupbyDoc
India just crossed a new milestone — 1.75 lakh DPIIT-recognized startups, making it the third largest startup hub in the world after the U.S. and China. The ecosystem is buzzing with action: over $232M in new funding this week, global VCs are back on the hunt, and even in the midst of shutdowns and cash crunches, founders are finding ways to pivot, raise, or expand.
Top 10 Startup News You Need to Know
- Otipy Shuts Down Operations
Backed by: WestBridge Capital
What happened: Gurgaon’s farm-to-consumer grocery startup Otipy has shut down after failing to raise new funds. The decision affects over 300 employees and thousands of customers.
Why it matters: It highlights how cash burn and thin margins continue to plague quick-commerce and agritech plays.
- Paytm Gets Relief from Supreme Court
Amount: ₹5,712 Cr GST Notice
What happened: The SC has stayed a massive GST demand on Paytm’s First Games, giving temporary relief amid legal uncertainty around real-money gaming platforms.
Why it matters: The ruling could set precedent for taxation on gaming startups.
- Stable Money Raises ₹173 Cr ($20M)
Led by: The Fundamentum Partnership (Nandan Nilekani-backed)
What happened: Bengaluru-based fintech Stable Money, which helps users park idle funds in fixed-income products, raised a fresh $20M.
Why it matters: Fixed income is gaining traction among young Indian investors looking beyond mutual funds.
- Accenture to Promote 50,000 Employees
After: 6-month delay and 2.5 years of salary stagnation
What happened: While not a startup, this signals broader recovery in IT services and global hiring sentiment — critical for B2B SaaS founders dependent on the enterprise segment.
Why it matters: It’s a sign that large tech employers are stabilizing post-layoffs.
- Data Sutram Secures $9 Million
Led by: B Capital, Lightspeed
What they do: A location intelligence startup that helps businesses make better data-driven decisions.
Why it matters: Another strong round in deep tech — proves that niche enterprise SaaS is still hot with VCs.
- Kisaan Se Kitchen Tak Raises $1.3 Million
Led by: Keiretsu Forum
What they do: Connecting farmers directly to end consumers via a D2C food supply chain.
Why it matters: Agritech may be struggling overall, but hyperlocal, niche agri models are still winning investor trust.
- GyanDhan Raises $6 Million
Led by: Classplus, Pravega Ventures
What they do: An education financing platform for study-abroad students.
Why it matters: Student financing is growing rapidly, and GyanDhan is tapping into the $15B Indian outbound student market.
- OpenFX Raises $23 Million
What they do: Real-time foreign exchange (FX) settlement platform for cross-border B2B payments.
Why it matters: With India pushing for a global trade role, fintechs like OpenFX are building the rails for faster, cheaper international payments.
- Virohan to Raise Pre-Series B
What they do: A healthtech edtech platform training students for paramedical roles.
Why it matters: Upskilling in healthcare is critical, and Virohan’s hybrid model is gaining traction with both learners and investors.
- Indian Startups Raised $232M This Week
Standout names: Euler Motors, CloudSek
What happened: Indian startups collectively raised over $232M, proving that funding winter is thawing, especially for deeptech, fintech, and edtech.
Why it matters: Shows confidence is returning — selectively, but surely.
Conclusion: The Hustle Is Real
India’s startup engine is very much alive. Yes, shutdowns like Otipy show the harsh reality of unsustainable burn models. But funding rounds in fintech, healthtech, and SaaS prove there’s still serious money chasing real value. From DPIIT’s latest count to massive job movements in tech, the ecosystem is evolving rapidly.
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