Startup Spotlight: IPO Rush, Big Funding & AI Bets Signal India’s Next Growth Phase

India’s startup ecosystem had a defining week as companies across sectors signalled readiness for scale, public markets, and global ambitions. From a surge in IPO filings and large institutional fundraises to regulatory approvals and strategic AI investments, the past week reflected a maturing ecosystem preparing for its next growth cycle.

Here’s a detailed roundup of the top startup and tech developments you should know.

Top Startup News of the Week

FabHotels’ Parent Travelstack Files DRHP for IPO

Travel-tech firm Travelstack Tech, the parent of budget hotel chain FabHotels and corporate travel SaaS platform TravelPlus, has filed its Draft Red Herring Prospectus (DRHP) with SEBI, formally kickstarting its IPO journey.

The proposed public issue comprises a fresh issue of shares worth up to ₹250 crore and an offer-for-sale of up to 2.69 crore shares. Early backers including Accel, Goldman Sachs, Panthera Growth Partners, Anupam Mittal, and Qualcomm are expected to partially exit through the IPO. The move adds to growing momentum among travel and SaaS startups preparing for public markets.

Speciale Invest Plans ₹1,400 Cr Growth Fund for Deeptech Startups

Deeptech-focused venture capital firm Speciale Invest announced plans to raise a ₹1,400 crore growth-stage fund, aimed at backing Series A and later-stage deeptech startups.

The fund, expected to be launched next year, will focus on companies that have crossed technical validation and are progressing toward commercialisation and revenue scale. This follows Speciale’s ₹200 crore growth fund launched in 2023, underscoring increasing investor confidence in India’s IP-led and hard-tech startup ecosystem.

Paytm Secures RBI Approval for Offline & Cross-Border Payments

Fintech major Paytm received a significant regulatory boost after the Reserve Bank of India granted approval for it to operate as a payment aggregator for offline payments as well as cross-border transactions.

The approval follows Paytm’s recent ₹2,250 crore investment into its payments subsidiary and a restructuring that moved its offline merchant payments business under Paytm Payments Services Limited. The development strengthens Paytm’s compliance posture and opens new revenue opportunities beyond domestic online payments.

Bhavish Aggarwal Sells Ola Electric Shares to Release Pledged Stake

Electric vehicle maker Ola Electric remained in focus after founder Bhavish Aggarwal sold around 0.6% stake, or 2.6 crore shares, in a bulk deal worth approximately ₹92 crore.

The company clarified that the transaction was undertaken to fully release pledged shares worth nearly ₹260 crore, rather than indicating promoter exit. While Ola Electric’s stock touched a fresh low during the week, the move reflects efforts to clean up promoter-level leverage.

Google Commits $8 Mn to Strengthen India’s AI Ecosystem

Global tech giant Google announced an $8 million commitment to support India’s artificial intelligence ecosystem.

The funding will support four government-backed AI Centres of Excellence, along with investments in AI-driven healthcare and startup innovation. Additionally, Google will invest $2 million to establish an Indic Language Technologies Research Hub at IIT Bombay, focused on building AI solutions for India’s linguistic diversity. Startups Gnani.AI and CoRover.AI will also receive $50,000 grants each to develop voice AI models.

Kuku FM Gears Up for $200 Mn IPO

Audio content platform Kuku FM is preparing to tap public markets, with reports suggesting it has appointed Kotak Mahindra Capital, Axis Bank, and Morgan Stanley as bankers for a potential $200 million IPO.

The company plans to use the proceeds to expand its content library and strengthen its regional-language offerings. Kuku FM had raised $85 million in a Series C round earlier this year, led by Granite Asia.

Turtlemint Receives SEBI Nod for IPO

Insurtech startup Turtlemint, backed by Peak XV Partners, has received SEBI’s observation letter, clearing the path for its initial public offering.

The company had confidentially filed its DRHP in September, and the IPO size is expected to be in the range of $200–250 million once the updated filing is made public. The development further adds to the growing pipeline of fintech IPOs.

Wingify Acquires AI Startup Blitzllama

Product optimisation firm Wingify, best known for Visual Website Optimiser (VWO), has acquired Y Combinator-backed AI startup Blitzllama.

The acquisition will allow Wingify to integrate continuous, AI-driven user feedback into its experimentation and optimisation tools. Wingify currently serves over 3,000 companies across more than 90 countries and became majority-owned by Everstone Capital earlier this year following a $200 million transaction.

Flipkart Gets NCLT Approval for Reverse Flip to India

Ecommerce giant Flipkart has received in-principle approval from the National Company Law Tribunal (NCLT) to complete its reverse flip to India.

Under the plan, several Singapore-based entities, including Flipkart Marketplace and Flipkart Health, will be merged with the Indian entity. The move aligns Flipkart more closely with India’s regulatory framework and public market environment, following earlier approvals from a Singapore court.

Swiggy Raises ₹10,000 Cr via QIP to Boost Quick Commerce

Food and grocery delivery major Swiggy successfully closed a ₹10,000 crore Qualified Institutional Placement (QIP), issuing shares at ₹375 each — around a 4% discount to the floor price.

Leading mutual funds including SBI Mutual Fund, ICICI Prudential, HDFC Mutual Fund, and Kotak Mutual Fund participated in the issue. Of the total capital raised, ₹4,475 crore will be deployed to scale Swiggy’s quick commerce fulfilment network, signalling a strong push toward speed-led delivery.

This week’s developments underline a clear shift in India’s startup ecosystem — from rapid experimentation to consolidation, compliance, and capital market readiness. With IPO pipelines strengthening, deeptech gaining serious capital backing, and AI emerging as a central growth theme, Indian startups appear firmly positioned for their next phase of scale.