In the last week of September, venture funding for Indian startups showed a sharp recovery, supported by several large deals. During this week, startups attracted a total of $382 million across 21 transactions, significantly exceeding the $99 million raised in the previous week.
Of these 21 deals, 11 were pre-Series A, providing $11 million in funding. The significant increase in the total funding volume was mainly driven by several major operations involving DMI Finance, Ultraviolette, and Ema.
Despite the increase in total funding volume, DMI Finance contributed the most with $152 million; however, this funding is not equity capital because the funds were primarily raised through a debt mechanism. The true strength of venture funding lies in equity capital, and the amount raised through this route was weak.
Nevertheless, an interesting point was the distribution of investment stakes in the Indian startup ecosystem, as startups from sectors such as electric vehicles, finance, and artificial intelligence (AI) managed to attract funding.
As the year approaches its end, it is unlikely that the venture capital dynamics will change significantly compared to 2025. It is probable that the overall figure in 2026 will remain approximately the same as in 2025. This is mainly due to the lack of a reliable pool of AI startups.
NBFC DMI Finance raised ₹1,455 crore (approximately $152 million) through Non-Convertible Debentures (NCDs), receiving participation from mutual funds, AIFs, family offices, corporations, and others.
Two-wheeler EV manufacturer Ultraviolette received $85 million from Yali Capital, TDK Ventures, and LipBu Tan. The corporate AI startup Ema attracted $77 million from Creaegis, Accel, S32, and Prosus.
Defense product manufacturer Hughes Precision Manufacturing raised ₹250 crore (approximately $26 million) from unnamed family offices and Ultra High Net Worth Individuals (UHNIs).
AI startup Sol attracted $4 million from General Catalyst, Nexus Venture Partners, DeVC, Peercheque, and Kunal Shah.