TICE Funding Index (Sept 13–19): Late-Stage Bets Bring Back Spark to India’s Startup Ecosystem

For the past couple of months, India’s startup ecosystem has been waiting for a silver lining. The funding taps that once flowed freely had slowed to a trickle, leaving founders, investors, and even the wider startup community in suspense. This week, however, brought a glimmer of revival. Venture capital (VC) funding made a noticeable jump during September 13–19, largely fueled by a handful of big-ticket, late-stage deals.

After hovering around the $100–150 million range for three consecutive weeks, funding activity has finally shown signs of life. Indian startups collectively raised $245 million across 19 deals, a significant leap compared to the $146 million secured the previous week. While the deal count hasn’t drastically changed, it was the late- and growth-stage rounds that injected new energy into the ecosystem—reminding everyone that even in a cautious market, scale-ready companies continue to attract serious money.

TICE Funding Index

Since July, VC inflows into Indian startups have been subdued. The weekly averages have stayed largely between $100–200 million, far below the heady highs the ecosystem has seen in previous years. Analysts have pointed out that 2025 may end up looking eerily similar to 2024 in terms of total capital raised—a far cry from the exuberance of earlier boom cycles.

The sentiment across the board has been muted. Many investors are holding back, waiting for clearer signals from the global economy and domestic consumption trends before making aggressive bets. Founders, on the other hand, have had to recalibrate growth strategies, trim excess, and become sharper in their execution. Against this backdrop, the uptick this week—even if modest—feels like a much-needed breather.

Where the Money Went

The week was defined by a clutch of growth- and late-stage bets, with individual deals crossing the $80 million mark. The diversity of sectors—from construction materials and fintech to EVs and consumer brands—also underlined the broad base of opportunities investors are still willing to chase.

Here are the key transactions that made headlines:

• Infra.Market – The construction materials unicorn led the charge, raising ₹732 crore (about $83 million). The round saw participation from big names such as Nikhil Kamath, NKSquared, Silverline Homes, Tiger Global, Accel, and Evolvence India. Infra.Market’s steady scaling in a traditionally unglamorous but massive market continues to win investor trust.

• FinBox – The fintech player bagged $40 million, with WestBridge Capital, A91 Partners, and Aditya Birla Ventures coming on board. The deal reinforces the sector’s long-term relevance despite regulatory headwinds.

• Blue Energy Motors – This EV startup secured $30 million from Nikhil Kamath and Omnitex Industries. With India pushing for cleaner mobility, investor bets on EV players remain steady.

• Indkal Technologies – Known for consumer electronics, Indkal raised $20 million in a Series B bridge round from existing investors, helping it fuel expansion in a competitive market.

• EcoSoul Home – Riding the D2C wave, EcoSoul Home closed a $20 million round with backing from Accel, Bajaj Financial Securities, StartupXseed Ventures, JSW Ventures, CK Birla Group, and Singh Capital Partners.

• Lucira Jewelry – This consumer-focused brand raised $5.5 million, attracting Blume Ventures, Spring Marketing Capital, SiriusOne Capital Fund, and a group of angels.

• Pelocal – The fintech company raised $5 million from UNLEASH Capital Partners, Unicorn India Ventures, and angel investors.

• SpaceFields – In the spacetech segment, SpaceFields pulled in ₹42 crore (around $4.7 million) from Globaz Technologies, Rockstud Capital, Venture Catalysts, and Rainmatter.

A Hopeful Signal Amid Uncertainty

While $245 million may not be groundbreaking when compared to peak funding weeks of the past, the return of late-stage deal activity is a positive sign. It signals that investors are still confident in scaling Indian startups with proven models, even if they are cautious about pouring money into early bets.

For founders, it’s also a reminder: capital is still available, but growth stories need to be stronger, leaner, and more disciplined than ever. For investors, the week suggests that India’s vast consumer base and emerging sectors—from construction tech to EVs—are too compelling to ignore.

As we step into the final quarter of 2025, the big question remains: will this week’s momentum snowball into a stronger finish for the year, or will the numbers settle back into the $100–200 million band?

Either way, this week has shown that the Indian startup ecosystem, even in a quieter phase, continues to find sparks of resilience.