Top Startup News Today: IPO Rush, Funding Slowdown, and Global AI Boom

India’s startup landscape is sending mixed signals. While total funding fell below $3 billion in Q3 2025, IPO activity is heating up and several companies across consumer tech, EVs, and financial services are reporting strong growth. Globally, artificial intelligence continues to command investor attention, with new capital flowing into AI recruiters, finance automation, and massive data infrastructure.

Funding and Market Updates

A new report confirmed that Indian startup funding dropped to $2.1 billion in Q3 2025, a 38% year-on-year decline. Despite the slowdown, select players continue to raise meaningful capital.

Infra.Market, the Mumbai-based building materials unicorn, has filed a confidential Draft Red Herring Prospectus (DRHP) with SEBI, aiming to raise ₹5,000 crore through an IPO. Financial services also attracted attention as HFS, backed by the House of Hiranandani, raised ₹800 crore, and GrowXCD Finance secured ₹200 crore. Meanwhile, Unleash Capital Partners closed its maiden ₹300 crore venture fund, signaling that optimism remains in early-stage investing. On the fintech side, MobiKwik infused ₹10 crore into its NBFC arm to strengthen its lending business.

IPO and Share Market Developments

IPO-bound startups are drawing significant attention as India’s public markets show appetite for new listings.

WeWork India is set to open its IPO on October 3, targeting ₹3,000 crore, after already raising ₹1,348 crore from anchor investors. PhonePe has confidentially filed for a ₹12,000 crore IPO, which could become one of the year’s biggest listings. Enterprise-tech also made strides as Capillary Technologies received SEBI approval for its IPO.

Beyond primary listings, the secondary market remained active. BofA Securities acquired Eternal shares worth ₹267 crore from Goldman Sachs, while VBAP Holdings sold Awfis shares worth ₹57 crore. These moves underscore investor confidence even as private funding tightens.

Company and Sector News

Corporate updates added momentum across diverse sectors, showcasing how startups are adapting to a tougher funding environment.

Wearables brand boAt appointed Gaurav Nayyar as CEO as it prepares for its IPO. In consumer tech, The Sleep Company reported a 60% revenue surge to ₹499 crore in FY25, while EV ecosystem player Battery Smart crossed ₹250 crore in revenue, signaling strong demand in D2C and electric mobility segments.

In SaaS, Fyno, an enterprise messaging platform, raised $4 million in seed funding led by Arkam Ventures and 3one4 Capital. Meanwhile, brand protection challenges surfaced as the Karnataka High Court barred Boult from using the ‘GoBoult’ trademark, underlining growing competition in consumer electronics.

Global Startup News

Artificial intelligence continues to dominate global venture flows and corporate strategy.

Alex, a Y Combinator-backed AI recruiter, raised a $17 million Series A led by Peak XV Partners. Amsterdam-based Polars, known for its open-source analytics engine, secured a $21 million Series A from Accel. AI agent startup Paidclosed a $21 million seed round, while Maximor, founded by former Microsoft executives, launched a human-in-the-loop finance automation platform.

Elsewhere, Hyundai’s Supernal air taxi venture is facing leadership exits amid a program pause, raising doubts about its trajectory. At the same time, global tech giants are investing billions in AI data centers, fueling the infrastructure needed for next-generation applications.

Market Signals Ahead

The Indian startup ecosystem is clearly at a crossroads. While funding has cooled, IPOs and sectoral growth stories in EVs, fintech, and consumer brands point to resilience and adaptation.

Globally, artificial intelligence remains the epicenter of innovation and capital flows. From recruiter tools to data analytics engines, AI startups are attracting major funding, while the massive build-out of AI data centers signals a structural transformation in how global technology ecosystems will scale.

Bottom line: Indian startups are leaning on IPOs, revenue growth, and sectoral resilience, while global players are betting big on AI to define the next phase of the innovation economy.