Top Startup News: Mumbai Tops Startup Funding, Updates on BYJUs & More

India’s startup ecosystem has once again proven its dynamism with major developments reshaping the landscape this week. From massive investments to government-backed initiatives aimed at fostering innovation, the week has been packed with noteworthy announcements. Bengaluru, often hailed as the startup capital of India, has been dethroned as the most-funded city by a surprising contender. Meanwhile, ambitious plans are underway to train half a million Indians in artificial intelligence by 2026, signaling India’s commitment to emerging technologies.

TICE brings a detailed roundup of the top stories making waves in the Indian startup ecosystem.

Top Startup News

Rainmatter Invests $32 Million Across 47 Startups Focused on Climate, Health, and Fintech

Rainmatter, the investment arm of Zerodha, has announced fresh funding of $32 million across 47 startups operating in critical sectors like climate change, healthcare, and financial technology. Out of this, 15 startups are dedicated to climate-focused innovations, 16 to health tech, and 8 to fintech.

Since its inception in 2016, Rainmatter has supported over 100 startups, with its total investments now amounting to an impressive $82 million. This demonstrates the firm’s strong belief in sustainable innovation and entrepreneurship as key drivers of growth.

In a statement, Rainmatter expressed its intent to continue allocating funds to startups that are tackling real-world challenges and building solutions for the future. The firm’s emphasis on climate-related investments is aligned with global calls for addressing environmental concerns and strengthening the green economy.

Read More: How Govt Initiatives are Powering Corporate-Startup Collaborations?

DPIIT Partners with JK Cement to Boost Manufacturing Startups

In a bid to strengthen India’s manufacturing sector and support innovative startups, the Department for Promotion of Industry and Internal Trade (DPIIT) has partnered with JK Cement. This collaboration aims to empower product-focused startups by providing much-needed infrastructure, mentorship, and research and development (R&D) support.

Announcing the initiative, Sanjiv Singh from DPIIT highlighted how this partnership is designed to transform groundbreaking ideas into impactful solutions. He said, “India’s manufacturing sector holds the potential to become a global leader, and nurturing homegrown startups is a key step in that direction.”

The program is particularly aimed at addressing the challenges faced by startups in the product development stage, ensuring they have access to state-of-the-art facilities and expert guidance. This move is expected to bolster India’s position as a hub for manufacturing innovation.

NASSCOM Proposes ₹10,000 Crore DeepTech Fund in Union Budget 2024

As India looks to strengthen its foothold in cutting-edge technologies, NASSCOM has proposed the inclusion of a ₹10,000 crore DeepTech fund in the upcoming Union Budget. The fund is intended to accelerate early-stage innovation in sectors such as artificial intelligence, space technology, and quantum computing.

According to NASSCOM, the proposed fund will serve two critical purposes: fostering global commercial breakthroughs and advancing strategic innovations to meet national needs. The organization also recommended easing regulations in the IT sector to enable startups to thrive in a competitive global environment.

Experts believe that a dedicated DeepTech fund could position India as a global technology leader, unlocking opportunities for startups to scale groundbreaking solutions in highly specialized fields.

Read More: Nasscom Calls for a ₹10k Cr Push for DeepTech Startups: Reports

NCLT Reserves Decision on BYJU’s Creditor Appeals

India’s largest edtech company, BYJU’s, continues to face legal hurdles as the National Company Law Tribunal (NCLT) reserved its order on appeals filed by creditors, including Glas Trust and Aditya Birla Finance. These creditors have sought inclusion in BYJU’s Committee of Creditors (CoC), which was recently reconstituted.

The dispute stems from objections raised by the creditors regarding their exclusion from the restructured CoC, which plays a key role in insolvency proceedings. Additionally, the tribunal is set to decide on the Board of Control for Cricket in India’s (BCCI) plea to withdraw an insolvency petition filed against BYJU’s.

The outcome of these proceedings could significantly impact the company’s financial restructuring plans and its position in the highly competitive edtech market.

NITI Aayog’s WEP Partners with New Shop to Empower Women Entrepreneurs

The Women Entrepreneurship Platform (WEP) of NITI Aayog has partnered with retail chain New Shop to launch EmpowHER Biz, a program aimed at supporting women in the retail business. This initiative offers mentorship, retail management training, and business development tools to women entrepreneurs across the country.

Under the program, 50 women entrepreneurs will be selected for specialized training, and the top 20 participants will receive a 100% waiver on franchise fees, enabling them to own and operate their own retail businesses. This move is expected to create more opportunities for women in the retail sector, fostering economic independence and business acumen.

Read More: Are You Ready With Your Startup? Apply For IIT Madras’ Elevate 8.0

IndiaAI and Microsoft to Train 5 Lakh Indians in AI by 2026

IndiaAI, the government’s artificial intelligence initiative, has joined hands with Microsoft to roll out an ambitious training program for 5 lakh individuals by 2026. The collaboration aims to empower a wide range of participants, including students, developers, educators, and women entrepreneurs.

As part of this initiative, Microsoft CEO Satya Nadella announced a $3 billion investment to bolster India’s AI infrastructure, human capital, and tech capacity. The program will also establish AI labs in National Skill Training Institutes and create AI Catalysts to promote rural innovation.

Microsoft’s Founders Hub program will further support 1,000 AI startups under the IndiaAI banner, ensuring India remains at the forefront of the global AI revolution.

Mumbai Surpasses Bengaluru as India’s Most-Funded Startup City in 2024

In a surprising turn of events, Mumbai has overtaken Bengaluru to become the most-funded startup city in India in 2024. Mumbai’s startup ecosystem witnessed a remarkable 154% increase in funding, totaling $3.7 billion, largely driven by mega deals involving Rebel Foods and PharmEasy.

While Mumbai leads in total funding volume, Bengaluru still retains its crown in terms of deal count, closing 285 funding deals this year. This development underscores the shifting dynamics within India’s startup ecosystem, with different cities emerging as leaders in various metrics.

RBI Innovation Hub and IIMA Ventures Launch Swanari TechSprint 3.0

The Reserve Bank Innovation Hub has partnered with IIMA Ventures to launch Swanari TechSprint 3.0, a program designed to boost financial inclusion for women. The initiative focuses on supporting fintech startups that develop solutions for underserved women, including self-help groups, female entrepreneurs, and street vendors.

Through mentorship, funding, and grants, the program addresses significant challenges such as inactive bank accounts and limited credit access, which affect nearly 556 million women in India. By fostering innovation in financial technologies, Swanari TechSprint 3.0 aims to close the gender gap in financial inclusion and create lasting social impact.

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