Top Startup News Today: Funding, M&A and AI Rivalries Drive Innovation

India’s startup ecosystem reported a day packed with strategic shifts, new funding, and category-defining acquisitions on December 12, 2025. Even as global markets navigate economic uncertainty, Indian founders, investors, and enterprises continue to take bold steps across sectors such as edtech, D2C, logistics, deeptech, and healthcare diagnostics. Globally, the AI industry is witnessing intensifying competition, with major players preparing for their next leap in model capabilities.

Unacademy Confirms M&A Talks as Valuation Reset Continues

One of the day’s biggest headlines comes from the edtech industry. Unacademy CEO Gaurav Munjal publicly confirmed that the company is engaged in M&A discussions, acknowledging that its current valuation stands below $500 million. This marks a dramatic correction from its pandemic-era peak valuation of $3.5 billion in 2021.

The move highlights the broader recalibration underway in India’s edtech sector, where many companies are restructuring operations, revising business models, or exploring strategic partnerships to attain profitability. Market watchers believe Unacademy’s openness may accelerate consolidation in test prep and digital learning.

Honasa Enters Men’s Grooming With ₹195 Cr Acquisition of Reginald Men

Honasa Consumer, parent company of Mamaearth, has expanded into the men’s grooming market with its acquisition of Reginald Men for ₹195 crore (approx. $23.4 million). The acquisition strengthens Honasa’s multi-brand strategy and diversifies its growing personal care portfolio.

Analysts say the move positions Honasa to compete directly with players like Beardo, Bombay Shaving Company, and The Man Company at a time when India’s men’s grooming market is expanding at double-digit rates.

Uber Direct Goes Live on ONDC in Bengaluru

In a milestone for India’s interoperable digital commerce framework, Uber has partnered with the Open Network for Digital Commerce (ONDC) to launch its B2B logistics offering, Uber Direct, in Bengaluru.

The service will initially facilitate grocery deliveries for Zepto and other retail partners, aligning Uber with the growing ecosystem of logistics operators adopting ONDC. This marks another global brand’s entry into India’s open network economy and further validates ONDC’s expanding relevance in hyperlocal commerce.

Infibeam Avenues Rebrands as AvenuesAI

Reflecting the accelerating convergence of fintech and artificial intelligence, Infibeam Avenues announced its rebrand to AvenuesAI. The company confirmed that the new identity underscores its transition toward AI-driven payment infrastructure, fraud detection, and enterprise-grade financial technology.

Industry experts note that several Indian fintechs are undergoing similar shifts, leveraging AI to enhance compliance, customer intelligence, and transaction security.

Funding & Investments: Venture Capital Shows Fresh Momentum

Despite a cautious funding climate, India saw several notable fund closures and fresh startup investments today.

Fireside Ventures Closes $253M Fund IV

Consumer-focused VC firm Fireside Ventures closed its fourth fund at $253 million, reaffirming investor confidence in India’s D2C and consumer brands. Fireside-backed startups include boAt, Mamaearth, and Slurrp Farm.

Accel Nears Close of $650M India Fund

Global VC firm Accel is nearing the final close of its eighth India-focused fund, targeting $650 million. This would make it one of the largest early-stage India funds to date.

Notable Funding Rounds

• NeoSapien, an AI wearable startup, raised $2 million in seed funding.

• Inito, an at-home diagnostics and fertility tracking startup, secured $29 million in Series B.

• iSprout, a fast-growing coworking operator, raised ₹60 crore ($7.2 million) in debt from Tata Capital.

• Transition VC, a deeptech-focused investor, closed its maiden fund at ₹700 crore ($84M) to back advanced engineering and research-led companies.

Global AI News: OpenAI and Google Intensify the Race

Global AI competition escalated today following reports that OpenAI may launch GPT-5.2, an advancement positioned as a response to an internal Google “code red” memo. The memo reportedly warned that OpenAI could outpace Google’s AI lead.

Meanwhile, ElevenLabs, the AI voice-generation startup, reached a $6.6 billion valuation. Its CEO emphasized that the company’s future lies in multimodal AI, signaling expansion beyond voice technology into richer communication models.

Together, these developments underline how rapidly the AI landscape is shifting—fueling innovation, investment, and competitive intensity across global markets.

About Top Startup News Today

TICE’s Top Startup News Today delivers daily insights on India’s startups and global innovation. Covering IPOs, AI, fintech, mobility, and funding, we provide verified, context-rich updates that show not just what’s happening, but why it matters.

Disclaimer:Curated from trusted sources; contact editorial@tice.newsfor corrections.