Indian Startup News Today: IPO Buzz, Funding Dip, Global AI Surge

India’s startup ecosystem is entering a decisive phase. After months of funding slowdown, the markets are now looking ahead to a wave of IPOs led by WeWork India, PhonePe, and Capillary Technologies, while companies such as Zerodha are rethinking their core business models. Globally, venture dollars continue to chase artificial intelligence startups, highlighting a sector that shows no signs of slowing down.

IPOs and Financial Results

The IPO pipeline is filling fast. WeWork India will open its public issue on October 3, targeting up to ₹3,000 crore ($360 million). This is expected to test investor appetite for co-working businesses at scale. Meanwhile, Capillary Technologies, a Bengaluru-based SaaS company, has secured SEBI approval for its offering, adding momentum to the enterprise-tech IPO wave.

Fintech continues to dominate the headlines. PhonePe has confidentially filed for what could be one of India’s largest IPOs of 2025, estimated at ₹12,000 crore ($1.4 billion). At the same time, smaller players are demonstrating growth — digital lender Zype posted a fivefold increase in FY25 revenue to ₹101 crore ($12 million), underscoring demand for new-age credit solutions.

Market leaders are also re-examining their strategies. Zerodha, the Bengaluru-based brokerage that pioneered the zero-brokerage model, is considering a pivot after a sharp 40 percent fall in brokerage revenue in Q1 FY26. Any change here could reset pricing benchmarks for the broader retail investing market.

Fundraising and Investments

While IPO plans gather steam, private funding flows tell a different story. According to Tracxn data, startup funding in India fell 38 percent year-on-year to $2.1 billion in Q3 2025. Still, certain deals stood out for their scale and sectoral diversity.

Unleash Capital Partners closed its maiden fund at ₹300 crore ($36 million), while Ironclad Asset Managementannounced a new ₹200 crore ($24 million) vehicle with a focus on employee stock ownership plans (ESOPs). On the startup side, Climaty AI in Delhi NCR raised $2 million to expand its sustainable marketing tech platform. In Bengaluru, enterprise communication startup Fyno secured $4 million seed funding, while Mumbai-based NBFC HFS, backed by the House of Hiranandani, attracted a sizeable ₹800 crore ($96 million) round. Kochi-based deeptech venture EyeROVadded a defense dimension, winning a ₹47 crore ($5.6 million) order from the Indian Navy for its underwater robotics systems.

Together, these deals show that even amid a slowdown, investors are backing proven sectors such as fintech, enterprise SaaS, and defense-linked deeptech.

Company and Policy Updates

Corporate leadership and regulatory moves are also shaping the landscape. Consumer electronics brand boAt, headquartered in Delhi NCR, appointed Gaurav Nayyar as its new CEO, signaling a leadership refresh ahead of new product cycles. In a major structural shift, Flipkart announced it will relocate its headquarters from Singapore back to Bengaluru ahead of its anticipated IPO, aligning with India’s regulatory and capital markets framework.

On the supply chain side, Zomato Hyperpure, the B2B arm of the food delivery major, has expanded its warehousing capacity by leasing 250,000 square feet in Bhiwandi, Maharashtra. Meanwhile, the Indian government has stepped up monitoring of e-commerce platforms under GST 2.0, a move that could tighten compliance requirements across the sector.

Global Startup Developments

Around the world, artificial intelligence continues to lead the startup narrative. Y Combinator alumnus Alex raised $17 million in Series A funding to scale its AI-powered recruitment platform. Meanwhile, former Microsoft executives launched Maximor, introducing a “human-in-the-loop” AI platform aimed at automating finance functions.

Beyond AI, open-source infrastructure and aerospace are attracting capital. Amsterdam-based Polars, which develops a high-speed data processing tool, raised $21 million from Accel, while US-based Cluely, known for its controversial “cheating” AI software, secured $15 million from Andreessen Horowitz. In aerospace, Amazon-backed Beta Technologies formally filed for an IPO, marking a major step for the electric aircraft sector. Elsewhere, Hyundai’s air taxi unit Supernal continued to face turbulence with a fresh round of senior executive departures.

Market Signals Ahead

The week’s developments underline a dual narrative in the startup economy. In India, companies are preparing to test public markets with big-ticket IPOs even as private capital becomes more selective. From Bengaluru’s fintech giants to Kochi’s defense-tech innovators, geography is no longer a barrier to scaling ambitions.

Globally, AI remains the dominant investment magnet, attracting funding across recruiting, finance, and developer infrastructure. At the same time, aerospace and electric mobility ventures are pushing toward commercialization, with IPO filings signaling confidence in long-term growth.

The message is clear: while funding inflows may be slowing, the IPO window is opening — and in both India and abroad, startups are repositioning themselves for the next phase of growth.

About Top Startup News Today

Top Startup News Today is TICE’s daily spotlight on the ideas, entrepreneurs, and ventures shaping the future of business. We cover India’s fast-growing startup ecosystem—spanning IPOs, youth-led innovation, AI breakthroughs, and consumer-first disruption—while also tracking global shifts in mobility, cybersecurity, space tech, and funding. Our goal is to deliver verified, insightful, and context-rich stories that go beyond headlines, helping founders, investors, and readers understand not just what is happening, but why it matters.

Disclaimer: This news update has been curated from leading published sources and verified reports. While TICE strives for accuracy and timeliness, we encourage readers to reach out for clarifications, fact updates, or corrections at editorial@tice.news.