Startup Spotlight: IPO Dreams, Unicorn Gains, and the Fight for Profitability

The Indian startup ecosystem is buzzing with dramatic developments, ranging from major public listings and massive funding rounds to sharp shifts toward profitability (and sometimes, unexpected shutdowns). Here is a curated look at the companies making headlines this month.

Public Market Dynamics: IPOs and Listings

Home and sleep solutions brand Wakefit received SEBI approval to move ahead with its Initial Public Offering (IPO). The offering includes a fresh issue worth ₹468.2 crore and an Offer for Sale (OFS) of 5.84 crore shares by existing investors like Peak XV Partners. Proceeds from the fresh issue will fuel store expansion, equipment purchases, and marketing initiatives.

In the first nine months of FY25, Wakefit posted ₹971 crore in revenue and a net loss of ₹9 crore, marking steady growth toward profitability. With this milestone, Wakefit joins a growing list of consumer-focused startups eyeing a public debut, signaling continued investor confidence in India’s D2C ecosystem.

WeWork India listed on the Indian stock exchanges at ₹650 per share, just 0.3% above its issue price of ₹648, following a ₹3,000 crore IPO that was entirely an Offer-for-Sale (OFS).

While the debut was muted, the company showcased a remarkable financial recovery in FY25 — reporting 17% revenue growth to ₹1,949 crore and swinging to a net profit of ₹128 crore, compared to a loss of ₹135.7 crore in FY24.

This turnaround highlights renewed demand for flexible workspaces and WeWork India’s ability to sustain profitability in a rapidly evolving commercial real estate market.

Zappfresh (DSM Fresh Foods) made an impressive debut on the BSE SME, opening at ₹120 per share — a 20% premium over its issue price of ₹100 — and hitting the upper circuit on listing day.

The ₹59.06 crore IPO, entirely a fresh issue, was oversubscribed 1.36 times, reflecting solid investor confidence. The funds will be used for capex, working capital, and marketing expansion.

In FY25, Zappfresh reported a 44% surge in operating revenue to ₹130.73 crore, while net profit nearly doubled to ₹9.05 crore, underscoring strong operational execution and growing consumer trust in the online meat delivery space.

Le Travenues Technology Limited, the parent of travel platform ixigo, has received a major boost with a ₹1,295.56 crore (~$146 million) investment from Prosus (MIH Investments One B.V.) through a preferential equity issue, giving Prosus a 10.1% stake in the company.

The funding will support organic growth, strategic acquisitions, and corporate initiatives, reinforcing ixigo’s leadership in the online travel sector. In Q1 FY26, ixigo reported a 72.5% jump in operating revenue to ₹314 crore and a net profit of ₹19 crore, signaling strong post-listing momentum and investor confidence.

Funding Wins and Unicorn Milestones

Stockbroking platform Dhan, operated by Raise Financial Services, has officially entered the unicorn club after raising $120 million in a fresh funding round led by Hornbill Capital, valuing the company at $1.2 billion.

The fintech startup aims to leverage this capital to strengthen its technology stack, expand omnichannel reach, and introduce innovative investment products designed for active traders and Gen Z investors.

Financially, Dhan delivered a strong performance in FY25, recording ₹900 crore in revenue while maintaining cash-flow positivity for consecutive years — a notable feat in the competitive stockbroking landscape.

Clinical-stage biotech Eyestem Research has raised $10 million in Series B funding, led by Prabhavati Agro Green Energies. This funding round boosted the company’s post-money valuation by nearly 70%, bringing it to Rs 592 crore ($67 million).

Based in Bengaluru, Eyestem focuses on cell replacement therapies for currently incurable eye diseases, including Eyecyte-RPE, a treatment for dry age-related macular degeneration (AMD) derived from human stem cells. The company is currently pre-revenue.

GreyLabs AI, a voice AI platform, has secured Rs 85 crore ($9.6 million) in Series A funding, led by Elevation Capital. The round coincides with the launch of its agentic voice AI platform, aimed at automating and humanizing customer engagement in India’s BFSI sector.

The funds will be used for R&D, team expansion, and market growth, targeting 300+ BFSI clients. In just 18 months, GreyLabs AI has already processed hundreds of millions of conversations for over 50 BFSI clients, showcasing rapid adoption and strong market penetration.

Hunger Inc, parent of popular restaurant brands like Bombay Canteen, O Pedro, and Bombay Sweet Shop, has raised Rs 215 crore (~$25 million) from Lighthouse and DSG Consumer Partners.

The funding will be used to scale production and expand beyond Mumbai, including a flagship Bombay Sweet Shop in Delhi within 12–18 months. In FY25, Hunger Inc achieved Rs 115 crore in revenue, with Bombay Sweet Shop contributing over half of the group’s total revenue.

Singapore-based equity management platform Qapita has raised $26.5 million in Series B funding, led by Charles Schwab Corporation.

The funding will support Qapita’s expansion into the US market and the launch of its fund administration product across multiple regions. The platform provides equity management solutions for private companies, including ownership record management, employee stock plans, and secondary transaction support, serving clients across India, Southeast Asia, and the US.

Climate-tech startup Newtral has raised $600K from NOW, a deeptech and deep science venture studio focused on sustainability.

The funding will support go-to-market expansion in key global markets and scaling recurring revenue. Newtral provides enterprise sustainability software that helps businesses measure carbon emissions, identify reduction opportunities, and implement actionable sustainable practices, moving beyond compliance toward measurable climate impact. The platform is trusted by over 100 companies across key sectors.

FS Life, parent of D2C women’s fashion brand FableStreet, secured Rs 50 crore (~$5.6 million) in funding led by Colossa Ventures and Rahul Garg.

The capital will be used to expand physical retail, with plans to double stores from five to ten in six months and a long-term goal of 100+ outlets in three years. While the company’s valuation remained flat, operating revenue grew over 40% in FY24, reflecting strong D2C performance ahead of the retail push.

Bengaluru-based logistics tech startup Stackbox is preparing to raise Rs 23.18 crore (~$2.63 million) in its Series A round from Enrission India Capital and White Whale Ventures. The round is expected to boost Stackbox’s post-money valuation by over 30% to Rs 375 crore (~$42.6 million).

Stackbox provides cloud-based SaaS solutions—including WMS, TMS, and OMS—to automate and optimize supply chain operations. In FY24, the company reported Rs 6 crore profit on Rs 25.7 crore operating revenue, reflecting strong financial performance ahead of its growth plans.

August AI, a healthtech platform offering an AI-powered digital health companion, has raised $3 million from Accel and Claypond Capital.

The funding will be used for product development, expanding its medical knowledge base, and customer acquisition across languages and regions. The platform provides an AI chatbot that assists users with symptom understanding and interpreting medical reports. Currently, August AI serves over 3.5 million users across 160 countries, reflecting rapid global adoption in its mission to bridge patients and healthcare providers.

Rusk Media, a Gen-Z/A-first digital entertainment company, has raised Rs 103 crore (~$12 million) in Series B funding, led by IvyCap Ventures. With $21.5 million raised to date, the company plans to use the funds for expansion into the US, Europe, and EMEA markets and for developing new entertainment IPs for global audiences.

Rusk Media produces content across social media and OTT platforms, attracting close to 1 billion monthly views. In FY25, the company reported Rs 100 crore in revenue, reflecting strong financial growth.

Jaagruk Bharat Raises Rs 1.5 Crore Pre-Seed to Simplify Access to Government Services
 Civic-tech startup Jaagruk Bharat has raised Rs 1.5 crore in pre-seed funding, led by AJVC.

The platform aims to simplify access to essential government services and welfare schemes for Indian citizens, featuring a multilingual interface for discovery, application, and real-time tracking of public services. The funding will support product development, expand collaborations with state and central government bodies, and enhance accessibility for marginalized communities, promoting transparency and accountability.

Financial Health and Profitability Shifts

Amazon-backed re-commerce platform Cashify reported Rs 1,096 crore in operational revenue in FY25, surpassing the Rs 1,000 crore milestone. The Gurugram-based company reduced its net loss by 80% to Rs 10.5 crore, with revenue growth of 17% outpacing a 12% rise in expenses.

Driven primarily by pre-owned device sales, Cashify is now targeting full-year profitability in FY26, reflecting a strong path toward sustainable growth.

M League, parent company of Mobile Premier League (MPL), achieved group-level profitability in FY25, marking a major turnaround. Operating revenue grew over 30% to Rs 1,423 crore (~$166.7 million), with a net profit of $4.2 million (Rs 36.5 crore), reversing a $44.8 million loss in FY24.

The profitability follows the closure of real-money gaming operations in India due to regulatory changes. The company’s diversified global strategy, including strong performance from its German subsidiary GameDuell Studios, was cited as key to sustaining growth.

Wearable tech startup Ultrahuman reported profitability in FY25 with Rs 565 crore in revenue and Rs 73 crore PAT. The company projects revenue to more than double to ~Rs 1,100 crore in FY26, driven by its Ultrahuman Ring and Blood Vision services.

International markets—including the US, Europe, UK, and Canada—currently contribute 61% of sales. Ultrahuman aims to capture 10% of the $10 billion global health measurement device market, targeting a 5X growth over the next two years.

Vegetarian pan-Asian restaurant chain Burma Burma reported significant financial improvements in FY25, narrowing net losses by 78% to Rs 1.3 crore, nearly reaching break-even. The company’s operating revenue grew 47% YoY to Rs 106 crore, and it achieved a positive EBITDA of Rs 6.6 crore.

The high promoter holding (88%) has been cited as a factor in the company’s controlled and measured spending strategy, supporting sustainable growth.

Rural vehicle marketplace Tractor Junction achieved a revenue milestone in FY25, with operating revenue surging over 70% to Rs 106.43 crore. The platform facilitates the buying, selling, financing, and insuring of tractors and farm equipment, with equipment sales contributing 80% of total revenue.

However, total expenses grew 75%, outpacing revenue growth due to rising material costs, resulting in a 2.5X increase in net loss to Rs 9.08 crore. The company aims for double-digit revenue growth and further expansion in FY26.

Amazon Pay India, the digital payments arm of Amazon, reported a marginal 8.3% decline in operating revenue to Rs 2,097 crore in FY25, primarily earned from processing fees on utility bills, shopping payments, and UPI transfers.

Despite the revenue dip, the company reduced net losses by 5% to Rs 866 crore. Advertising remained the largest expense, accounting for 52% of total costs, with a unit economics of Rs 1.46 spent to earn every rupee of revenue.

Digital payments firm Cashfree reported operating revenue of Rs 640 crore in FY25, nearly unchanged from the previous year, with payment gateway commissions contributing 75% of revenue.

Despite stable revenue, net loss increased 14% to Rs 154 crore, largely due to a 150% surge in marketing expenses. Having recently raised $53 million, the company faces potential challenges in FY26 from the government’s ban on real-money gaming platforms, requiring strategic measures to curb losses.

Neobank unicorn Open saw its operating revenue rise 85% to Rs 46 crore in FY25. Despite this growth, the Tiger Global-backed startup continues to face profitability challenges, with net loss narrowing 35.8% to Rs 108.8 crore, while accumulated losses ballooned to Rs 1,921 crore (~$225 million).

The financial strain is attributed to high employee costs and regulatory restrictions on digital lending and credit lines. Open is expected to diversify beyond basic banking services to achieve sustainable growth.

Strategic Moves, Regulatory Impact, and Investor Exits

Investment platform Groww has completed the strategic acquisition of wealth tech startup Fisdom after receiving SEBI approval. The all-cash deal, valued at approximately $150 million, aims to enhance Groww’s wealth management offerings and diversify revenue beyond core stockbroking.

Groww is also preparing for its IPO, having filed a revised draft red herring prospectus with SEBI to raise Rs 7,000 crore. In FY25, the company reported robust financial growth with a net profit of Rs 1,824 crore.

The Reserve Bank of India (RBI) has launched the Offline Digital Rupee (CBDC), a major innovation allowing users to transact without internet or telecom connectivity. Unveiled at the Global Fintech Fest 2025, India becomes one of the first countries to operationalize an offline CBDC.

Transactions occur instantly between digital wallets using secure proximity technologies like NFC, removing reliance on intermediary switches or bank servers. This initiative aims to make digital money as seamless as cash, extending payment accessibility to network-compromised regions.

Insurtech major InsuranceDekho has introduced its first-ever ESOP liquidity program, valued at $2 million, enabling around 150 current and former employees to partially cash out vested stock options via a secondary sale. The company plans to expand the ESOP program with new grants as it scales.

InsuranceDekho, offering 650 plans from 48 insurers, reported operating revenue growth of 73.5% to Rs 1,290 crore in FY25. Despite this strong growth, the company recorded a net loss of Rs 47.5 crore, compared with a net profit in FY24.

Fintech lending startup Niro has officially ceased operations, despite raising approximately $20 million from investors. Founded in 2021, Niro operated a B2B2C platform enabling consumer internet companies to act as consumer finance enablers.

The shutdown was driven by regulatory pressure, credit deterioration, and limited capital. A volatile regulatory environment, with tightening lending and risk regulations, ultimately made the company’s business model unsustainable.

PRISM, the parent company of OYO, unveiled a top-level leadership reshuffle to strengthen its global operations. Ankit Tandon has been promoted to COO of PRISM and CEO, Europe, overseeing brands like Belvilla, DanCenter, and Motel 6. Varun Jain was appointed COO for Asia, managing India and the SEAME region.

The changes follow PRISM’s rebranding, while OYO continues strong financial performance, reporting a profit after tax of over Rs 200 crore in Q1 FY26.

Conclusion

This week, the Indian startup ecosystem reaffirmed two core themes: capital is flowing selectively into differentiated and tech-led innovations, and profitability is no longer optional — it’s essential. Whether it's deep tech, fintech, consumer tech, or EVs, sustainable unit economics and strategic leadership moves are emerging as the defining filters for success. As regulations tighten and competitive dynamics shift, founders who balance boldness with discipline will lead the next wave.

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