Indian Start-ups Raise $65.3M Across 22 Deals in April’s Third Week

In a steady show of resilience and sectoral diversification, Indian start-ups raised $65.3 million across 22 deals during the third week of April 2025. While the overall deal value was more modest compared to previous weeks, the spread of funding across deeptech, ecommerce, fintech, edtech, and cleantech sectors underlines the evolving maturity and dynamism of the Indian innovation ecosystem. 

This week’s funding chart was led by Deeptech, which accounted for the largest share of capital deployment, thanks to sizeable investments in spacetech, robotics, and defence technologies. Ecommerce followed closely, particularly within the D2C category, with start-ups raising funds to expand retail footprints and scale brand presence across India. Another notable trend was the continued rise in B2B-focused start-ups, which attracted nearly two-thirds of the total capital raised. From advanced manufacturing to enterprise services, investors showed strong appetite for ventures offering scalable, high-tech business solutions. Funding wasn’t just limited to nascent start-ups—growth-stage deals were prominent too, especially at the Series A and B levels, signalling confidence in start-ups that are transitioning from product-market fit to full-scale operations. Meanwhile, early-stage activity, especially in the pre-Series A segment, remained active in ecommerce, edtech, and healthtech.

Deeptech: Dominating High-Tech Innovation 

Deeptech led the funding charts this week with a total of $22.9 million, fueled by strong investor interest in advanced sectors like spacetech, defence tech, and robotics. The sector’s startups are using capital to drive innovation, expand globally, and strengthen manufacturing. 

• Garuda Aerospace raised $11.7 million (Series B) to scale drone manufacturing and boost R&D efforts. 

• Optimized Electrotech secured $6 million (Series A) for developing imaging technology and expanding its defence tech footprint. 

• Peppermint Robotics brought in $4 million (Series A) to support global expansion and tech enhancement. 

• EON Space Labs raised $1.2 million (Pre-Series A) for payload technology development in spacetech. 

Ecommerce: D2C Brands Capture Investor Attention 

Ecommerce followed closely with a total funding of $22.325 million, dominated by D2C brands across beauty, wellness, food, and fashion. The sector’s focus remains on retail expansion, outlet growth, and brand building. 

• OfBusiness raised $11.7 million to support ongoing operations in B2B commerce. 

• Jewelbox secured $3.2 million (Pre-Series A) to expand its retail presence. 

• Nothing Before Coffee and Good Monk raised $2.3 million and $2 million respectively (Pre-Series A), aimed at outlet growth and market expansion. 

• PujaShree Products Global, That Sassy Thing, and NOTO raised smaller rounds for scaling production and branding efforts. 

Fintech: Single-Player, Debt-Funded Growth 

Fintech recorded $8.7 million in funding this week, all of which came from a single debt deal. While limited in the number of deals, the funding indicates sustained interest in lending-tech business models with steady cash flows. 

• Varthana raised $8.7 million (Debt) to expand its loan portfolio in the education finance space. 

Enterprisetech: Steady Play in B2B Automation 

Enterprisetech startups raised $5 million this week, showcasing investor confidence in enterprise solutions and process automation for businesses. 

• Magma was the sole recipient, raising $5 million (Series A) to expand its offerings and technology capabilities for enterprise clients. 

Customer Segment Analysis 

In the third week of April 2025, the Indian start-up ecosystem saw a distinct funding divide between B2B (business-to-business) and B2C (business-to-consumer) segments. Out of the total $65.31 million raised across 22 start-ups, B2B companies attracted a dominant $42.6 million, while B2C start-ups secured $22.71 million. This funding trend clearly indicates that investors continue to prefer scalable, tech-driven B2B models with established revenue streams and industrial applications. 

The B2B segment was led by high-ticket investments in deeptech and enterprisetech ventures. Start-ups like Garuda Aerospace and OfBusiness topped the list, each raising $11.7 million. Garuda is scaling its drone manufacturing and investing heavily in R&D, while OfBusiness is using the capital to support its B2B ecommerce operations for raw materials and credit services. Other key contributors included Optimized Electrotech ($6 million for defence imaging systems), Magma ($5 million to expand enterprise tech services), and Peppermint Robotics ($4 million to boost global expansion). These large funding rounds point to investor faith in India’s advanced industrial tech capabilities, especially those addressing defence, automation, and infrastructure. 

On the other hand, the B2C segment, while more populated in terms of deal count, saw relatively smaller cheque sizes. The segment raised a total of $22.71 million, spread across 13 start-ups primarily in ecommerce, edtech, and healthtech. The largest round in this space was Varthana’s $8.7 million debt raise to expand its education-focused lending portfolio. D2C ecommerce brands like Jewelbox, Nothing Before Coffee, Good Monk, and NOTO attracted early-stage capital to grow retail presence, scale production, and enhance branding. Start-ups like CENTA and Iyaso represented emerging interest in digital skilling and speech therapy tech, indicating a slow but steady expansion in niche consumer services. 

Funding Stage Analysis 

Start-up funding in India this week reflected a strong mix of early-stage enthusiasm and late-stage validation. Out of the total $65.31 million raised, the largest share $17.3 million came through Series A rounds, highlighting investor appetite for start-ups with proven traction and clear scale potential. Series B followed closely with $11.7 million, indicating sustained confidence in mature players like Garuda Aerospace, which raised capital to scale manufacturing and deepen R&D. 

Interestingly, pre-Series A rounds collectively brought in $9.4 million, spread across consumer-facing brands like Jewelbox, Good Monk, and NOTO. This reinforces the trend of investors nurturing early-stage D2C start-ups poised for market breakout. Seed and pre-seed stages saw comparatively modest inflows—$2.2 million and $1.08 million respectively but continued to support innovation in healthtech, edtech, and lifestyle sectors. 

Debt-based funding made a notable entry with $8.7 million, all raised by Varthana, signaling a preference for non-dilutive capital in lending-focused fintechs with strong receivables. Meanwhile, $14.9 million was reported under unspecified or undisclosed rounds, suggesting ongoing or bridge rounds in flux.  Early-stage funding remains the heartbeat of Indian start-ups, but larger late-stage cheques are reinforcing sector leaders especially in tech-heavy verticals.

Purpose of Funding: From Product Innovation to Global Scale 

The recent wave of start-up funding in India reveals a strategic focus on scaling, innovation, and expansion. A large portion of the capital raised this week is being directed toward technology development and market expansion, especially among deeptech and B2B start-ups. Companies like Garuda Aerospace and Optimized Electrotech are leveraging funds for manufacturing scale-up and advanced tech development in spacetech and defencetech, respectively. Similarly, Magma and Peppermint Robotics are enhancing their tech stacks and targeting global markets. 

Among D2C and ecommerce players, Jewelbox, Good Monk, and NOTO are focusing on retail expansion, product scale-up, and R&D. Nothing Before Coffee and uppercase are investing in digital growth and premium product line launches to improve customer experience and brand differentiation. In edtech and healthtech, the emphasis is on validating business models and scaling operations. Iyaso and Cura Care are channelling funds to fine-tune AI-driven speech therapy and home healthcare solutions. On the other hand, companies like OfBusiness and Varthana are using capital for core business expansion and lending portfolio growth. Across the board, whether it’s space payload technology or nationwide product rollouts, the funding is aimed at building sustainable, scalable, and innovation-led business models across sectors.

Key Takeaways 

Investor Priorities & Market Focus 

Investors are doubling down on B2B-led innovation, especially in Deeptech, Enterprise Tech, and Clean Mobility, recognizing their long-term strategic value.
While Ecommerce remains active particularly in D2C deeptech start-ups in Spacetech and Defencetech are gaining traction due to national interest and scalable IP. Fintech, though quieter this week, secured a solid $8.7M via debt, reflecting evolving funding models for capital-intensive verticals. 

Funding Stage Trends 

Series A ($17.3M) led the charts, reflecting investor confidence in early-scale companies with established market demand. Series B ($11.7M) was dominated by a single large round (Garuda Aerospace), signalling support for deeptech at scale. Pre-Series A ($9.4M) and Seed/Pre-Seed ($3.3M) showed sustained early-stage momentum, especially in D2C Ecommerce and Edtech. Debt financing ($8.7M) emerged as a capital-efficient route for lending-focused fintech. 

Sectoral Highlights & Growth Focus 

Deeptech ($22.9M) was the top-funded sector, with strong bets on Spacetech and Defencetech highlighting a national tilt toward advanced tech capabilities. Ecommerce ($22.3M) sustained investor interest, largely fuelled by D2C brands scaling across retail, health, and lifestyle. Enterprise Tech ($5M) and Edtech ($2.8M) saw moderate funding, hinting at selective interest based on innovation or niche applications. Sectors like Healthtech, Media & Entertainment, and Alcoholic Beverages received little to no funding, reflecting investor caution. 

Strategic Funding Intentions 

Funding was largely channelled into manufacturing scale-up, product R&D, and technology enhancement, particularly in high-IP sectors. Consumer-focused start-ups prioritized retail expansion, digital growth, and brand positioning. Cross-sector hybrid models—combining deeptech, ecommerce, and services are emerging as attractive bets for sustainable scalability. 

Final Thoughts 

April 2025’s early funding trends show that investors are leaning toward innovation-backed, execution-ready start-ups, especially those aligned with national priorities and scalable B2B models. The rise of Deeptech and B2B Ecommerce reflects a pragmatic shift favouring start-ups that deliver value through technology, defensibility, and operational maturity. 

In this capital-efficient landscape, early-stage founders must validate product-market fit quickly, while growth-stage ventures should focus on profitable scaling and tech-led differentiation. The evolving mix of equity and debt funding suggests that adaptability in fundraising strategy is becoming a key founder skills.