Weekly Funding Roundup: Fintech Dominates, Unicorns Seek Liquidity, and Regulation Forces Shifts

This past week has seen significant action across the Indian startup ecosystem, marked by substantial funding rounds, major IPO movements, and critical regulatory updates impacting leading fintech players. From major debt raises to strategic secondary sales and early-stage investments in niche sectors like Astrotech, here is a breakdown of the key news headlines.

Capital Raises: Enterprise, Lending, and Niche Sectors Secure Funds

Several companies announced successful funding closures this week, demonstrating continued investor interest across various technological and financial domains:

Fintech Infrastructure Sees Big Investment: 

• FinBox, a credit infrastructure fintech, closed a $40 million Series B round. The investment was led by WestBridge Capital, with existing investors A91 Partners and Aditya Birla Ventures participating. Notably, $5 million of this funding was allocated for secondary sales, offering partial exits to early investors. FinBox plans to use the capital for product innovation, international expansion, and deepening its AI-driven credit intelligence stack.
• Building Materials Giant Raises Funds at Flat Valuation: Infra.Market, the building materials platform, is raising Rs 731.5 crore (approximately $83 million) in a fresh Series G round. The funding was led by Silverline Homes, an entity owned by Infra.Market founders, injecting Rs 250 crore. Other participants included Tiger Global (Rs 176 crore), NK Squared (Rs 200 crore), Accel India, Nexus Ventures, and Evolvence India. This new capital arrived at a flat valuation of $2.8 billion, matching its previous Series F round.

Fintech Lending and Wealth Management Activity:

• Finnable, a Bengaluru-based digital lending platform, is raising Rs 250 crore ($29M) in a pre-Series C round. The first tranche of Rs 127 crore ($14.7M) was secured from Matrix Partners and India Nippon Electricals, with Matrix contributing Rs 125 crore. Post-money valuation is pegged at Rs 1,300 crore ($150M). Founded in 2016, Finnable offers personal loans to salaried professionals, boasting Rs 3,000 crore AUM and over 2.7 lakh customers. Backed earlier by Ranjan Pai’s family office, the new funding will dilute founders’ stakes. In FY24, Finnable reported Rs 181.7 crore revenue with Rs 5.88 crore losses.
• InCred Money, the retail investment arm of the InCred Group, raised Rs 250 crore ($30M) at a valuation of Rs 1,650 crore ($200M). Key investors include Ranjan Pai’s family office, Ram Nayak, and multiple family offices. Serving 1.5 lakh investors, InCred Money offers investments in unlisted shares, fixed deposits, gold, and silver. Its parent, InCred Holdings, plans an IPO worth $460–560M, including a Rs 1,500 crore fresh issue. The group’s lending arm, InCred Finance, saw FY25 revenue rise 47% to Rs 1,872 crore with profits up 18% to Rs 374 crore, underscoring strong financial performance.

Astrotech and B2B Solutions:

• AI-powered astrology platform MyNaksh secured Rs 7.5 crore to merge AI-driven personalization with expert astrologers, offering a credible, engaging experience. Operating via a subscription-based model and paid consultations, MyNaksh delivers tailored guidance, with AI learning from user behavior for greater relevance. Human astrologers ensure authenticity and cultural depth. Funds will enhance product development, boost personalization, and position astrology as a modern self-awareness tool. Founded by Nitesh Salvi, Devaang Agarwalla, Gaurav Mohta, and Piyush Nagle, MyNaksh seeks to modernize astrology for tech-savvy users.
• BeyondSquare Solutions, creator of FinAlyzer, raised $4M in Series A funding led by Avant Global Corporation. Structured in multiple stages, the investment will expand automation, compliance intelligence, and scalability for enterprises with complex reporting needs. FinAlyzer automates financial consolidation, compliance, and reporting for over 100 enterprises across 45+ countries, including Fortune 500 India firms. The company plans international expansion into the Middle East, Europe, and Southeast Asia, capitalizing on a market expected to double by 2032. Founded by Karthik Ganeshan, Venkatachalam PK, and Rangan Varadan, BeyondSquare strengthens CFO governance and transparency.
• Noida-based fintech Pelocal raised $5M in Series A funding led by UNLEASH Capital Partners and Unicorn India Ventures, following a $2M seed round in 2024. Pelocal’s AI-powered payments orchestration platform enables large enterprises to acquire, engage, and collect payments directly via WhatsApp, serving 5M+ monthly users and 40+ enterprises. Since its last funding, it achieved 6x growth in total payment value, surpassing $500M run rate. Funds will accelerate product development, expand use cases, and strengthen go-to-market efforts. Founded in 2021 by Vivekanand Tripathi and Vikas Garg, Pelocal targets $10M ARR within 18–24 months.

Martech and QSR Rounds:

• Martech startup Wondrlab, founded in 2020 by Saurabh Varma, Vandana Verma, and Rakesh Hinduja, is raising Rs 40.8 crore ($4.6M) in a fresh round led by Wildflower Private Trust, with participation from Pi Ventures and Tanas Capital. The funding, at a $90M post-money valuation, is Wondrlab’s first in four years since its $7M seed round in 2021. Specializing in technology, digital, and programmatic advertising, Wondrlab aims to scale its platform-first martech solutions and strengthen its market position.
• Quick service restaurant chain Wow! Momo is raising Rs 75 crore ($8.5M) as part of its Series D round. The latest tranche, led by 360 ONE with participation from Kyrush Investments, brings its Series D total to over Rs 650 crore. Funds will support capital expansion, working capital, and corporate purposes. Wow! Momo continues to strengthen its presence in India’s QSR market, leveraging its fast-growing brand and innovative product offerings to capture more customers and expand its store footprint.

Unicorn Liquidity, Debt, and IPO Preparation

This week saw several major movements among established unicorns, focusing heavily on public market readiness and debt management:

Successful IPO Debut: 

• Urban Company made a strong market debut, listing at Rs 162.25 per share on NSE, a 57.5% premium over its issue price of Rs 103 (Rs 161 on BSE). Its Rs 1,900 crore IPO was oversubscribed 108.98x, with Rs 854 crore raised from anchor investors. Proceeds include Rs 190 crore for tech, Rs 75 crore for leases, Rs 90 crore for marketing, and the rest for corporate needs. Post-listing, shares peaked at Rs 179, valuing the firm at Rs 24,169.1 crore. FY25 revenue rose 38% to Rs 1,144 crore.

Fintech IPO Pipeline Heats Up:

• Digital investment platform Groww filed a revised draft red herring prospectus (DRHP) for its Rs 7,000 crore IPO. The issue includes a fresh raise of about Rs 1,020 crore. Co-founders Lalit Keshre, Harsh Jain, Neeraj Singh, and Ishan Bansal have already secured a significant payday, collectively receiving a one-time incentive of Rs 614 crore in FY25 (accrued in FY24) and monetizing holdings through secondary sales totaling over Rs 700 crore.
• InCred Holdings, a tech-first NBFC founded by Bhupinder Singh, is preparing for an IPO and plans to submit its DRHP to SEBI. The total issue size is pegged at $460–560 million, including a Rs 1,500 crore ($172M) fresh issue and a Rs 300 crore pre-IPO placement. Shares will list on BSE and NSE. Its lending arm, InCred Finance, posted FY25 revenue of Rs 1,872 crore (up 47%) and profit of Rs 374 crore (up 18%), signaling robust growth.

Secondary Market Action: 

• Fintech unicorn BharatPe completed its first secondary transaction since 2021 at its last private valuation of $2.85 billion. This deal comes as the company, now led by CEO Nalin Negi, focuses on strengthening governance and preparing for an IPO.

Debt Raises:

• PharmEasy raised Rs 1,700 crore ($193M) in debt, led by 360 One (Rs 1,231 crore), with participation from Micro Labs, MVS Ventures, and others. The funds aim to repay its high-interest Goldman Sachs loan amid a 90% valuation cut to $710M. Despite flat FY25 revenue of Rs 5,872 crore, it reduced losses by 38% to Rs 1,572 crore, reflecting operational discipline after co-founder exits.
• Rebel Foods secured Rs 150 crore ($17M) in debt from existing investors—Alteria Capital (Rs 90 crore) and InnoVen Capital (Rs 60 crore)—via 15,000 NCDs at 13.9% interest, maturing in 2028. The cloud kitchen giant, with 450+ kitchens and brands like Faasos and Behrouz Biryani, raised this for working capital. FY24 revenue hit Rs 1,420 crore, while losses dropped 42% to Rs 378 crore, signaling stronger financial health.

Regulatory Impact and Product Shifts

Regulatory changes and strategic product pivots dominated headlines for several major fintech firms:

• Rent Payments Halted: CRED, PhonePe, and Paytm have halted rent payments via credit cards on their platforms. This move was triggered by the Reserve Bank of India’s (RBI) latest master directions on payment aggregator regulations, specifically concerning the costly and complex requirement for KYC (Know Your Customer) of landlords. CRED and PhonePe were noted as the platforms most impacted, having been the leading facilitators of this service.
• CRED’s New Offerings: Despite regulatory headwinds, CRED launched two new financial lifestyle products:
  1. A RuPay co-branded credit card in partnership with IndusInd Bank, offering 5% rewards on e-commerce spends.
  2. CRED Sovereign, an invite-only membership society offering exclusive privileges, anchored by an 18K gold credential.

Financial Performance and Major Scandals

Several companies released their FY25 financial results, alongside major news of internal turmoil:

Gameskraft Crisis: 

Online gaming firm Gameskraft faced a turbulent week:

• The company laid off about 120 employees as part of a restructuring triggered by the government’s blanket ban on online money games.
• A major financial scandal emerged involving former CFO Ramesh Prabhu, who allegedly diverted Rs 250 crore of company funds for personal futures and options (F&O) trading. Gameskraft has written off Rs 270.43 crore in its FY25 financial statements due to these irregularities.

Profitability and Loss Reduction:

• Digital learning solutions provider LEAD achieved a 70% reduction in net losses to Rs 43.3 crore in FY25 despite flat revenue of Rs 351.8 crore. Total income reached Rs 367.4 crore, with product sales contributing 78%. Cost control was key: advertising spend halved, employee expenses fell 20%, and overall costs dropped 20% to Rs 410.7 crore. EBITDA losses narrowed dramatically to Rs 1 crore from Rs 112.7 crore. LEAD spent Rs 1.17 to earn a rupee, signaling strong financial discipline and operational efficiency improvements.
• Savings app Jar posted Rs 208 crore in FY25 operating revenue and achieved profitability in the last two quarters (excluding ESOP costs). Gross revenue surged to Rs 2,450 crore after vertically integrating its gold stack, boosting efficiency. Jar reduced net losses to Rs 35.23 crore while growing its user base to 35 million, 95% being first-time savers. Founded in 2021, Jar’s profitability milestone reflects its ability to scale operations, optimize costs, and capture a massive market of new savers through innovative financial products and vertical integration strategies.
• Indifi Technologies grew its operating revenue by 22% to Rs 360 crore in FY25, supported by improved monetization and platform activity. Total income reached Rs 378 crore, while EBITDA rose to Rs 107 crore from Rs 90 crore. Despite provisioning pressures leading to a net loss of Rs 45 crore, the MSME lender confirmed a return to profitability in Q2 FY26. Indifi plans to expand supply chain finance and secured lending, aiming for these segments to contribute 20–25% of AUM, reinforcing its growth trajectory and operational strength.

Mixed Results in Retail and Martech:

• Walmart India narrowed its FY25 loss by 29% to Rs 110 crore, down from Rs 154 crore, despite subdued revenue growth. Operating revenue rose 2.6% to Rs 5,331 crore, while total revenue, including non-operating income, reached Rs 5,374 crore. Expense control was key, with employee benefits dropping 10% and finance costs falling 17%. Total expenses rose only 2.4% to Rs 5,484 crore. On a unit level, Walmart spent Rs 1.03 to earn each rupee of revenue, reflecting improved operational efficiency despite modest growth.
• Martech platform SilverPush experienced a slowdown in FY25, with revenue growing only 11% to Rs 386 crore, compared to strong FY24 momentum. The company slipped into losses, reporting a net loss of Rs 17.6 crore, versus a Rs 6 crore profit in FY24. Its EBITDA stood at -Rs 9.45 crore, with margins at -2.5%. Cost of sales, covering cloud, data, and media expenses, formed 63% of total expenses at Rs 233 crore. The results highlight challenges in scaling profitability while maintaining operational efficiency in a competitive Martech landscape.
• InCred Finance, the lending arm of InCred Group, achieved robust FY25 growth, with revenue surging 47% to Rs 1,872 crore, up from Rs 1,270 crore. Profits rose 18% to Rs 374 crore, underscoring improved operational efficiency and lending performance. The results come as InCred Holdings prepares for a $460–560 million IPO, positioning itself as a tech-first financial services firm leveraging data science and proprietary risk models. This strong performance reinforces InCred Finance’s leadership in fintech lending and its readiness for expansion amid India’s rapidly evolving financial services landscape.

Conclusion

The week’s news highlights a maturing ecosystem where financial discipline (LEAD, Jar, Indifi) and large-scale liquidity events (Groww, Urban Company, InCred) are prioritized. Simultaneously, companies operating in volatile sectors must contend with rapid regulatory changes (CRED, PhonePe) and internal governance risks (Gameskraft).