Top Startup News: IPO Buzz, State Rivalries, Climate Shifts, and Deep Tech Dreams

As festive season nears, the startup ecosystem witnessed a packed week — from IPO filings and fresh fundraises to state-level showdowns and deep-tech breakthroughs. While funding momentum continues to tilt toward AI, climate, and enterprise tech, the Indian scene is buzzing with stories of resilience, regional competition, and relocation.

Here’s everything you need to know from the startup world this week (September 29 to October 5, 2025):

FUNDING & BUSINESS MOVES

WeWork India Files for ₹3,000 Crore IPO

The week began with a big-ticket announcement — WeWork India officially filed for its ₹3,000 crore IPO, with anchor bidding opening October 1 and the public offer closing October 7. The entire issue is an Offer for Sale (OFS) by existing shareholders — Embassy Buildcon and WeWork Global — making it one of the most closely watched real-estate–meets–startup listings of the year.

The listing could become a bellwether for India’s coworking sector, testing investor appetite in a post-pandemic hybrid work era.

Spacetech Takes Off: Akashalabdhi Raises $1.2 Million

Bengaluru-based Akashalabdhi, a spacetech startup incubated at IISc’s FSID, secured $1.2 million in pre-seed funding from a clutch of investors including Romesh Sobti, Uday Chatterjee, LVX, and 1Crowd.

The company is developing indigenous satellite systems and propulsion tech, adding fresh momentum to India’s deep-tech story following the success of startups like Agnikul and Skyroot.

Tamil Nadu’s Startup Stars Shine

In Chennai, StartupTN and The Times of India jointly recognized 25 emerging startups and founders for their contribution to the local ecosystem — spanning healthtech, agritech, green materials, and deep tech. YourStory also spotlighted startups supported under StartupTN’s TANSEED fund, including The Mind & Company, Dextroware Devices, Bulkpe, and Arola, underscoring Tamil Nadu’s growing role as a southern innovation hub.

Waste-to-Wealth: Delhi’s CEF Group Turns Trash into Energy

Delhi-based CEF Group grabbed attention this week for its innovative waste-to-energy model. The cleantech startup converts municipal and agricultural waste into compressed biogas (bio-CNG) and organic fertilizers.
The company aims to address two national priorities simultaneously — sustainable waste management and renewable energy generation.

GLOBAL CROSS-CURRENTS

Peak XV Leads PostHog’s $75M Round

Indian-origin VC giant Peak XV Partners (formerly Sequoia India & SEA) made waves globally by leading a $75 million Series E in the US-based analytics startup PostHog, now valued at over $1.4 billion.
The move reinforces Peak XV’s intent to scale its cross-border investment strategy, backing global startups with Indian connections or developer ecosystems.

AI & Infra Frenzy Continues

On the international front, the week saw blockbuster fundraises — Vercel ($300M Series F), Supabase ($5B valuation), and Einride ($100M) — reflecting continued investor confidence in AI developer tools and automation infrastructure, even as analysts warn of overheated valuations.

POLICY & ECOSYSTEM DEVELOPMENTS

Startup Turf War: Karnataka vs Andhra Pradesh

A rare political faceoff unfolded this week as Karnataka’s IT & BT Minister Priyank Kharge and Andhra Pradesh’s Nara Lokesh traded barbs over startup migration. Lokesh claimed that startups were leaving Bengaluru due to crumbling infrastructure and high costs — positioning Andhra as a rising alternative. Kharge hit back, calling such claims “poaching attempts.” The exchange underlines how Indian states are competing not just for industries but for startup ecosystems themselves.