Decoding India’s Startup Momentum: FY26 Earnings and Strategic Shifts

The Indian startup ecosystem continues to demonstrate resilience and dynamic growth, marked by major financial results and pivotal strategic decisions. Profitability is increasingly becoming an essential focus, guiding strategy across deep tech, fintech, and consumer sectors. Our latest roundup covers significant funding rounds, operational efficiency gains from FY25, and crucial market movements.

Strategic Funding Rounds and Market Expansion

This section highlights key startups securing capital for technological advancement, international market entry, and disruptive product launches across diverse sectors.

Chara Technologies Deep-tech powertrain solutions company, Chara Technologies, successfully raised Rs 52 crore (about $6 million) in a Series A funding round, led by Arkam Ventures, with participation from Exfinity Venture Partners, Kalaari Capital, and IIMA Ventures. The Bengaluru-based company was co-founded in 2019 and specializes in developing rare-earth-free electric motors and controllers for applications in EVs, industrial, and agricultural equipment. Chara’s proprietary synchronous reluctance architecture eliminates magnets, making its motors 15-20% more cost-effective and sustainable compared to PMSMs. The funds will be used to establish a new factory in Bengaluru, launch advanced motor variants, and enhance its in-house tech capabilities. Chara is targeting a substantial 6x top line growth from FY25 to FY26 and plans to sell 40,000 motors by FY27, alongside expanding its footprint in Europe and targeting North America.

CoinDCX Crypto exchange CoinDCX secured an undisclosed investment from Coinbase, achieving a post-money valuation of $2.45 billion. Coinbase has been an investor in the firm since 2020. Founded in 2018, CoinDCX provides crypto trading and investment solutions to over 20 million users in India, offering more than 500 crypto assets. The capital will support product development, new on-chain use cases, and expansion into international markets, following its expansion into the Middle East and North Africa (MENA) in 2024 via the acquisition of BitOasis. The company, which achieved unicorn status in August 2021, operates under DCX Group, which includes its Web3 wallet platform Okto. This investment occurs as Coinbase relaunched operations in India after registering with the Financial Intelligence Unit.

Dashamlabs Deep-tech materials company Dashamlabs successfully raised Rs 12 crore in a seed funding round, led by Speciale Invest, with participation from IIMA Ventures. Co-founded in 2024, the Delhi-based startup specializes in silica aerogel-based flexible sheets and insulation materials. These materials are lightweight, fire-resistant, and feature ultra-low thermal conductivity. The proceeds will be dedicated to expanding R&D and production capacity, building pilot systems, and collaborating with partners across key sectors like oil & gas, EVs, defense, and construction. Dashamlabs aims to enable cleaner, safer, and more efficient technologies globally by scaling advanced aerogels made in India.

Dezerv (Series C & Strategy) Wealth tech platform Dezerv completed a Series C round, raising Rs 352 crore (approximately $40 million), co-led by Premji Invest and Accel’s Global Growth Fund. Elevation Capital and Z47 also participated in the funding. This round boosted Dezerv's post-money valuation to approximately $300 million, marking a 50% jump from its previous Series B valuation. Dezerv manages over Rs 14,000 crore across various assets and offers portfolio management services to working professionals. The new capital is designated for enhancing client experience, strengthening the technology stack, and expanding investment offerings. Dezerv also recently launched an ESOP buyback program valued at $5.3 million for its employees.

SpeakX Edtech company SpeakX (formerly Yellow Class) raised $16 million in a new funding round, led by WestBridge Capital. Existing investors Elevation Capital and Goodwater Capital, along with angel investors Ronnie Screwvala and Shyamal Anadkat, also participated. The company pivoted in 2023 to focus on an AI-powered English learning app utilizing voice technology to improve conversational English for children and young learners. The platform operates on a subscription-based model and uses personalized learning modules alongside speech recognition. The new capital will be used to scale user growth, enhance product development, and facilitate expansion into new geographies across Asia and the Middle East.

GoodScore Bengaluru-based fintech startup GoodScore secured $13 million in Series A funding, led by Peak XV Partners, with contributions from Stellaris Venture Partners and Saison Capital. Founded in 2023 by Sanchit Bansal, the platform utilizes data and AI-driven tools to help users manage and track their credit health. GoodScore aims to expand its AI systems, add engineering talent, and grow its credit marketplace, which connects borrowers and lenders. A key strategic focus is enhancing its user base in tier II and tier III cities. While the company began monetizing in FY24, achieving Rs 2.5 crore in operating revenue, its losses also grew 7.7 times to Rs 7 crore.

Graph AI Graph AI, a life sciences technology firm specializing in pharmacovigilance, raised $3 million in a seed funding round led by Bessemer Venture Partners. The company focuses on the $8 billion pharmacovigilance market, which requires pharmaceutical firms to track and report Adverse Drug Events (ADEs). The platform, Graph Safety, automates these complex workflows using AI and intelligent automation, reducing reliance on manual data extraction from unstructured sources. The funds will be deployed to expand the engineering team, accelerate product development, and grow its enterprise customer base globally. Clients have reported significant efficiency gains and faster compliance cycles using the platform.

HooLiv The student co-living platform HooLiv successfully raised Rs 24 crore ($2.73 million) in a pre-Series A funding round, led by Negen Capital, with participation from institutional investors, family offices, and angel investors. HooLiv operates purpose-built, technology-enabled student accommodations near universities and coaching hubs, focusing on standardized operations and cost efficiency. The capital will be used to expand operations in non-metro cities through new bed acquisitions, enhance its property management platform, and strengthen its brand. The New Delhi-based firm also intends to replicate its business model in international markets.

HouseEazy Home resale marketplace HouseEazy secured Rs 150 crore ($18 million) in its Series B funding round, led by Accel, with continued participation from Chiratae Ventures and Antler. The full-stack platform manages key services in the secondary housing market, including verification, pricing, financing, and transaction support. It employs an AI-based pricing engine that leverages over two million data points for real-time property valuations. The funds are earmarked for technology upgrades, brand development, and geographic expansion. HouseEazy, which facilitated transactions worth Rs 2,000 crore for over 2,500 homeowners, plans to expand beyond Delhi NCR to Pune, Mumbai, and Bengaluru.

Kuku FM Audio and video content platform Kuku FM secured $85 million in its Series D funding round, led by Granite Asia (formerly GGV Capital). The funding, which included secondary share sales, saw participation from existing investors like Vertex Growth Fund and Krafton. Kuku FM, which was last valued at approximately $185 million, has raised $156 million to date. The company makes revenue through paywalled subscriptions for audio content in multiple Indian languages, across genres like self-help, business, and entertainment. The new proceeds will be used to scale content creation, strengthen platform technology, and expand its creator base to reach more listeners across Bharat.

Ixigo (Prosus Stake) MIH Investments One B.V., an affiliate of Prosus, significantly increased its stake in travel platform Ixigo (Le Travenues Technology Limited) to around 15% through a secondary transaction. Prosus acquired 5.06% of the fully diluted stake from Peak XV (3.16%) and Elevation (1.9%). This purchase follows Prosus's recent investment of Rs 1,295.56 crore ($146 million) for an initial 10.1% stake. This move aligns with Prosus’s strategy to deepen its presence in India, aiming to expand its India portfolio to about $50 billion in the coming years. Financially, Ixigo showed robust performance in Q1 FY26, with operating revenue jumping 72.5% to Rs 314 crore.

Two Brothers Organic Farms Direct-to-consumer (D2C) organic brand Two Brothers Organic Farms raised Rs 110 crore ($12.5 million) in a Series B round. Investors included 360 One Asset, Rainmatter Investments, and Narotam Sekhsaria family office. The Pune-based company promotes natural farming, sourcing from over 5,000 farmers and serving over six lakh consumers globally, with international markets like the US and Canada being key areas. The funds will be utilized for expanding processing facilities, strengthening supply chains, and increasing distribution both domestically in Tier 1 and Tier 2 cities, and internationally. TBOF aims for Rs 200 crore in revenue in the current financial year and targets Rs 1,000 crore in annual revenue within five years.

Apna.co (BlueMachines.ai) Apna.co, India's leading jobs platform, expanded strategically into the enterprise Voice AI sector with the launch of BlueMachines.ai. This new vertical focuses on deploying reliable, compliant, and multilingual voice-based AI agents for businesses at scale, built on Apna’s extensive AI infrastructure. Blue Machines achieved a rapid adoption curve, securing over $6 million worth of enterprise contracts within just 45 days of launch. CEO Nirmit Parikh highlighted the platform's execution speed, noting that deployments go live in under a week, which is significantly faster than the industry average. This strategic expansion complements Apna’s core business, which itself grew 52% year-on-year in 2025.

Financial Results and Operational Efficiency Gains

A significant trend observed across the ecosystem is the move toward improved efficiency, with many major platforms reporting substantial reductions in losses alongside revenue growth in FY25.

Nutrifresh Farms (FY25 Results) Agritech startup Nutrifresh Farms delivered a strong financial performance in FY25, reporting a 50% year-on-year surge in operating revenue, reaching Rs 145.22 crore. The Pune-based company, which uses hydroponic technology to grow pesticide-free produce, saw its profit after tax (PAT) rise 55% to nearly Rs 14 crore. Sales of fresh produce and salads were the sole source of operating revenue. The firm achieved greater operational efficiency, improving its operating profit to Rs 13.86 crore. However, the procurement of materials, its largest expense, also surged over 70% to Rs 96.12 crore. On a unit level, Nutrifresh spent Rs 0.92 to earn every rupee of operating revenue.

Eternal (formerly Zomato) (Q2 FY26 Results) Foodtech and quick commerce platform Eternal reported massive growth, with Q2 FY26 revenue surging 2.8X year-on-year to Rs 13,590 crore. This jump was driven primarily by its quick commerce unit, Blinkit, whose revenue grew 8.5X due to a shift from a marketplace to an inventory-led model. Despite the top-line performance, Eternal's profit fell 63% to Rs 65 crore in Q2 FY26. This sharp profit decline was largely attributed to a 5.8X surge in the cost of material consumed, which reached Rs 7,742 crore. Excluding other income and interest costs, the company posted a negative EBIT of Rs 137 crore.

GenieMode (FY25 Results) The Info Edge-backed B2B e-commerce startup GenieMode achieved a Gross Merchandise Value (GMV) of Rs 673 crore in FY25, with gross revenue growing 21%. By controlling expenses, the company managed to narrow its losses significantly by 35% year-on-year, reducing them to Rs 51 crore from Rs 78 crore in FY24. Sales of furniture, home textiles, and apparel accounted for 98% of its income. The cost of materials remained the highest expense at 75% of the total cost. Crucially, employee benefit expenses decreased by 13%. The company achieved efficiency by spending Rs 1.09 to earn a rupee of operating revenue.

LeadSquared (FY25 Results) CRM software provider LeadSquared reported modest growth of 17% year-on-year in FY25, with operating revenue rising to Rs 326 crore. The Bengaluru-based SaaS platform achieved a major milestone in efficiency, trimming its losses substantially by 45%, reducing them to Rs 89 crore from Rs 162 crore in FY24. This efficiency gain resulted from reducing total expenses by 6.4%. A key factor was the reduction of employee benefit expenses, which fell 8.5% and constituted 61.5% of total expenditure. The company improved its unit economics, reducing the amount spent to earn a rupee of operating revenue to Rs 1.40 in FY25 from Rs 1.74 in FY24.

Livspace (FY25 Results) Omnichannel home interiors platform Livspace demonstrated sustained growth, with operating revenue climbing over 23% year-over-year in FY25 to reach Rs 1,460 crore. India remained the largest market, contributing 85% of this revenue. By focusing on cost discipline alongside scale, Livspace managed to shrink its losses by 42%, reducing them to Rs 242 crore from Rs 416 crore in FY24. The interior projects segment remained the primary revenue driver. Strategic cost controls included a significant 25% drop in marketing costs. Livspace aims to expand its operational footprint to over 200 stores across more than 100 cities by the end of FY26.

Razorpay (FY25 Results) Payments and business banking platform Razorpay achieved robust financial results in FY25, with consolidated revenue soaring by 65% year-on-year to Rs 3,783 crore. Gross profit grew 41%, crossing the Rs 1,200 crore mark to reach Rs 1,277 crore. The growth was driven by strong execution across its core payment gateway, banking, POS, and international businesses. Despite this performance, Razorpay reported a net loss after accounting for significant ESOP-related expenses of Rs 1,209 crore and costs linked to redomiciling to India. Management highlighted that the online payments vertical is now EBITDA-profitable.

ShareChat (FY25 Results) Homegrown social media platform ShareChat reported moderate revenue growth in FY25, achieving Rs 723 crore. Crucially, the company demonstrated strong operational efficiency, cutting its adjusted EBITDA losses by 72% to Rs 219 crore. This shift was attributed to disciplined cost optimization, stronger ad monetization, and leaner operations. As a result, the core business turned cashflow positive. ShareChat projects aggressive future growth, expecting its topline to grow around 30% in FY26, having already crossed Rs 1,000 crore in annual recurring revenue (ARR) in the first half of FY26. The platform continues to expand into new verticals like micro dramas through QuickTV.

Teachmint (FY25 Results) Classroom technology company Teachmint achieved a significant turnaround in FY25, with its operating revenue surging 4.3X to Rs 74 crore. This impressive growth was fueled by the strong adoption of its AI-powered smart classroom tools, X and X2. Coupled with improved operational efficiency, the Bengaluru-based firm successfully cut its losses by 57% to Rs 46.6 crore. The sharp reduction in losses was largely aided by a 55.3% reduction in employee benefits expenses. Teachmint recently partnered with Rashi Peripherals to distribute its interactive panels and digital classroom tools across India.

Thyrocare (Q2 FY26 Results) Diagnostics major Thyrocare Technologies posted strong results in Q2 FY26, reporting a 22% year-on-year growth in consolidated revenue from operations, reaching Rs 216.5 crore. The growth was primarily driven by the diagnostic testing services segment. Thyrocare's profit after tax saw a substantial jump of 81% year-on-year, hitting Rs 47.9 crore. The company's EBITDA margin improved to 33% because total expenses grew at a slower 10% rate compared to the increase in revenue. Additionally, the board approved an interim dividend of Rs 7 per share and a 2:1 bonus issue.

Market Leadership and Industry Trends

Competitive shifts and regulatory impacts defined major movements in the stockbroking and digital payments sectors in September 2025.

Groww Leads Stockbroking Market IPO-bound Groww maintained its market leadership in September 2025, recording 11.9 million active users and holding a 26.28% market share. This was achieved despite the national trend of the active stock market user base falling 1.92% to 45.31 million clients that month. Groww itself saw a slight month-on-month user base slip of 1.36%. Competitors Zerodha and Angel One retained the second and third spots, respectively, also recording monthly declines. Among traditional brokers, ICICIDirect, HDFC Securities, and Kotak Securities maintained their rankings. Additionally, Dhan, a recently turned unicorn, maintained its position at the ninth spot with 9.8 lakh active clients. Groww is also preparing for its IPO, having filed a revised draft prospectus to raise Rs 7,000 crore, following its strategic acquisition of wealth tech startup Fisdom.

UPI Ecosystem Performance and Gaming Impact The Unified Payments Interface (UPI) ecosystem processed 19,633.43 million transactions in September 2025. Although transaction volumes saw a marginal decline from August, the total value of payments slightly increased to Rs 24,89,736.54 crore. PhonePe retained its leadership with 45.6% of the transaction volume and 48.4% of the value, followed by Google Pay with a 34.8% volume share. A major industry trend observed was the drastic fall in transactions for digital goods, including gaming, a decline linked to the Indian government’s ban on real-money gaming platforms implemented in mid-August. Groceries, supermarkets, and utility payments remained the leading merchant categories in transaction volumes.

Conclusion

India’s startup ecosystem continues to showcase remarkable resilience and adaptability in FY26, balancing growth with profitability. From deep-tech and fintech breakthroughs to strong FY25 earnings across established unicorns, the momentum highlights India’s maturity as a global innovation hub. Strategic funding rounds, operational efficiency, and cross-border expansions are setting the stage for a more sustainable growth phase. As the ecosystem evolves, the focus is clearly shifting from scale at all costs to smart growth, profitability, and technological innovation — positioning India as one of the most vibrant startup markets worldwide.

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