Indian Startups Secure Over $278 Million, Led by Advanced Hardware & Growth Stages

India’s startup ecosystem displayed a significant rebound this week, with 21 ventures collectively securing a substantial $278.2 million. This marks a robust increase from the preceding week (June 16-22), which saw approximately $91.5 million raised, indicating a strong surge in capital inflow. The current week’s funding was spearheaded by Raphe mPhibr’s impressive $100 million Series B round, followed by GIVA’s $62 million Series C, and EKA Mobility’s $23 million Seed round. Early-stage activity remained vibrant, with numerous Seed and Pre-Series A deals showcasing continued investor confidence in emerging ventures.

Advanced Hardware & Technology emerged as the most funded sector this week, attracting $113.5 million, largely due to Raphe mPhibr’s significant round. Ecommerce ($68 million) and Cleantech ($29.2 million) also contributed significantly to the sectoral distribution. In terms of customer orientation, B2B startups strongly dominated with $163.2 million, while Series B rounds alone contributed over $124 million of the total capital deployed. The funding spanned diverse areas such as aerial vehicles, D2C jewellery, electric vehicles, AI retail SaaS, and fintech, indicating a broad spectrum of innovation attracting substantial investment.

Advanced Hardware & Technology – $113.5M | 4 Deals

Advanced Hardware & Technology strongly led the funding chart with $113.5 million across four deals. This was predominantly driven by Raphe mPhibr’s massive $100 million Series B round for drone manufacturing scale-up, and Fabheads’ $10 million Series A for composites tech expansion. Investments also flowed into maritime tech and defense drones. This reflects robust investor interest in cutting-edge technological advancements and the strategic importance of this sector.

Ecommerce – $68M | 4 Deals

Ecommerce secured the second position with $68 million across four deals. The significant chunk came from GIVA’s $62 million Series C to expand its D2C jewellery brand, alongside funding for D2C baby products (Rabitat) and ice pops distribution (Skippi). This highlights continued strong investor confidence in the direct-to-consumer model and the broad potential within India’s growing online retail market.

Cleantech – $29.2M | 2 Deals

Cleantech received $29.2 million in funding across two deals. EKA Mobility’s $23 million Seed round for EV production ramp-up and Kazam’s $6.2 million Series B for charging infrastructure expansion propelled this sector. This investment underscores the increasing importance of sustainable solutions and the electric vehicle ecosystem in India, attracting capital for technological advancements in clean mobility.

Fintech – $23.5M | 2 Deals

Fintech garnered $23.5 million across two deals. GoKwik secured $13 million in a Series B round to enhance its checkout technology, while Sahi raised $10.5 million in Series A for its wealth platform. This reflects sustained investor interest in platforms enhancing financial efficiency, digital payment solutions, and wealth management across both B2B and B2C segments.

Artificial Intelligence (AI) – $21M | 2 Deals

Artificial Intelligence attracted $21 million in funding through two deals. ShopOS raised $20 million in a Seed round for AI retail SaaS scaling, and AuraML secured $1 million in a Pre-Seed round to build AI infrastructure. These investments signify continued growth in the AI sector, particularly in developing and scaling solutions that promise significant future impact across various industries.

Funding Stage Analysis – Growth Stages Lead While Early Rounds Drive Innovation

This week’s funding was significantly driven by growth-stage investments, with Series B and C rounds together contributing a commanding $192.1 million. Series B alone attracted $124.2 million, led by a major drone manufacturing deal, while Series C saw $67.9 million, bolstering D2C and real estate tech. These figures underscore strong investor confidence in companies ready for substantial scaling and market expansion.

Meanwhile, early-stage activity remained robust, with Seed rounds securing $49.7 million and Series A adding $25.1 million. Pre-Series A and Pre-Seed rounds also provided crucial capital, collectively exceeding $54.5 million. These investments are vital for nurturing new ventures, validating innovative technologies in AI, cleantech, and enterprise services, and building foundational products. Additionally, $4 million in Debt financing was secured by Evera Cabs for fleet expansion, highlighting a strategic diversification in funding approaches.

Top 5 Funded Startups

Customer Segment Analysis – B2B Outpaces B2C in Capital, Highlighting Enterprise Focus

This week’s funding showcased a robust lean towards the B2B customer segment, which secured a dominant $163.2 million. This significant capital inflow, representing nearly 60% of total funds, underscores strong investor confidence in enterprise solutions. Key B2B investments targeted areas like advanced hardware for drone manufacturing (Raphe mPhibr), AI retail SaaS (ShopOS), and fintech checkout technology (GoKwik), highlighting a focus on enhancing business operations and infrastructure.

Meanwhile, B2C startups garnered $115 million, demonstrating continued investor interest in direct-to-consumer models. Notable funding went into D2C ecommerce (GIVA, Rabitat) for jewellery and baby products, and Cleantech (EKA Mobility) for EV production, alongside travel tech and quick commerce. The overall distribution points to a strategic balance, with substantial investment in foundational B2B innovation driving the ecosystem, complemented by strong support for B2C ventures expanding direct market reach and consumer services.

Key Takeaways

Investor Priorities:

Growth-stage Series B and C rounds significantly led funding value, indicating a strong preference for startups with proven product-market fit, clear scaling potential, and solid operational execution. Founders demonstrating market traction and efficient business models attracted the largest capital infusions this week.

Sectoral Focus & Market Expansion:

Advanced Hardware & Technology, Ecommerce (D2C), and Cleantech dominated funding, with substantial investment in aerial vehicles, EV production, and D2C jewellery. Investors favored tech-enabled B2B solutions and strategic positioning for market expansion across diverse segments, including AI retail SaaS and fintech checkout technologies.

Strategic Investments & Sustainability:

Significant capital allocation towards Cleantech, particularly in EV production and charging infrastructure, reflects a growing interest in sustainable business models. Investments in advanced hardware and manufacturing solutions underscore a focus on foundational technology innovation and strategic industrial growth.

Emerging Trends & Outlook:

While B2B startups led in total funding value, early-stage bets in diverse areas like AI infrastructure, maritime tech, and manufacturing automation signal continued investor interest in innovation-driven sectors. The ecosystem is maturing, balancing support for market-ready companies with nurturing tech-first ventures, prioritizing scalable growth and strategic clarity.