TICE Funding Index: How Steady Capital and a $120M Fintech Boost Defined The Week | 5th Oct - 11th Oct

Despite a cautious investment climate and muted late-stage activity, India’s startup ecosystem showed rare steadiness this week. The second week of October saw $264 million flow into 32 deals, a near match to the previous week’s tally of $265 million.

What kept the numbers steady wasn’t a flurry of deals, but one big moment — a $120 million raise by fintech platform Dhan, which not only secured its place in the unicorn club but also offered a glimmer of optimism amid the year’s restrained funding environment.

TICE Funding Index

For months now, India’s startup ecosystem has been treading a fine line between hope and hesitation. Global capital markets remain conservative, valuations have corrected, and investor focus has shifted from scale to sustainability. Yet, October’s early funding rounds reflect a kind of measured confidence returning to the landscape.

This week’s numbers — $264 million across 32 deals — signal that while the mega-rounds have thinned, the market is far from stalling. Venture capital inflow into Indian startups has found a narrow but stable footing, suggesting that investors are cautiously re-engaging, especially in resilient sectors like fintech and AI.

The standout was, of course, Dhan’s parent company, Raise Financial Services, which raised $120 million from Hornbill Capital, Mitsubishi UFG Financial Group, and BEENEXT. It’s one of the few $100M+ deals India has seen this year — and a reminder that conviction capital is still very much in play for startups with strong fundamentals.

Early-Stage Energy, Late-Stage Caution

The week’s data paints a clear picture: the early-stage segment is driving most of the action. About 21 pre-series deals fetched $36 million, underscoring investors’ appetite for fresh ideas but also their reluctance to commit heavily to late-stage growth bets.

This isn’t just about market anxiety; it’s a reflection of shifting strategy. VCs are reserving dry powder for proven business models while taking smaller, more calculated risks at the seed and early stages. The ecosystem is maturing — and so is its approach to capital deployment.

“The slowdown isn’t a pause — it’s a reset,” a Mumbai-based investor commented. “Everyone wants to back sustainable, cash-efficient startups now. The era of blind growth capital is over.”

Sector Snapshot: Fintech Leads, AI and Hardware Follow

Beyond Dhan, a series of noteworthy transactions kept the week lively and diverse:

• Intangles, a predictive AI firm, raised $30 million from Avataar Venture Partners, Baring India Private Equity, and Cactus Partners, highlighting sustained faith in AI-powered industrial intelligence.

• Luxury watch retailer Art of Time secured ₹175 crore (≈$19.7 million) from Mithun Sacheti, Plutus Wealth, and Girish Mathrubootham, signaling investor appetite for aspirational retail brands.

• Rusk Media raised ₹103 crore (≈$12.3 million) from IvyCap Ventures, LC Nueva, InfoEdge Ventures, and Woori Venture Partners, keeping India’s content-tech narrative alive.

• In manufacturing, Ekkaa Electronics raised ₹108 crore (≈$12 million) from Mukul Mahavir Aggarwal, Varun Daga Family, and Caprize Aurix, boosting the momentum in India’s ESDM (electronics system design and manufacturing) space.

• Cybersecurity firm Pantherun Technologies bagged $12 million from Sahasrar Capital Investors, Lucky Investment Managers, Capital 2B (InfoEdge), and 8X Ventures — a sign that investors continue to prioritize digital safety.

• AI startup GreyLabs AI raised ₹85 crore (≈$9.5 million) from Elevation Capital, Z47, and angels, extending the year’s ongoing AI funding streak.

• On the D2C front, Meolaa raised $6 million from General Catalyst, Claypond Capital, and others, while The Medical Travel Company secured $4.5 million from Nexus Venture Partners, Kriscore Capital, and athlete-led collective 4CAST.

What This Means for India’s Funding Landscape

If one word defines 2025’s funding narrative so far, it’s discipline. Gone are the days of reckless capital chasing user growth. Today’s investors are asking harder questions about profitability, capital efficiency, and long-term scalability.

That discipline, while slowing deal volumes, is also shaping a more resilient startup fabric — one that could weather global macroeconomic pressures better than before.

Fintech remains India’s heartbeat, AI continues to attract exploratory bets, and manufacturing — particularly in electronics and clean tech — is emerging as the new frontier for growth capital. While the unicorn club isn’t expanding at breakneck speed, the ones that do make it there, like Dhan, seem built to last.

With the year entering its final quarter, India’s venture ecosystem seems to have found a rhythm of slow, steady, and selective growth. The consistency in weekly funding — hovering around $250–$270 million — indicates that the ecosystem is holding its ground even without blockbuster rounds.

It might not be a funding boom, but it’s certainly not a bust either. In a market recalibrating itself after years of exuberance, this steadiness could be the healthiest sign of all — proof that India’s startup story is evolving from sprint to marathon.