The Indian ETtech startup ecosystem is currently experiencing a funding slowdown, with startups securing $83 million this week, marking a 41% year-on-year (YoY) investment dip. This reflects a broader trend of decreased funding in the Indian startup landscape.
August Funding Trends In August 2025, Indian startups collectively raised $914.4 million across 88 rounds. This represents a 47.8% decrease compared to the $1.7 billion raised during the same period last year. These funding rounds were primarily concentrated in the seed, early, and late stages. Some of the most significant deals in August included Weaver Services raising $170 million, Truemeds securing $85 million, 1Kosmos garnering $57 million, and The Sleep Company obtaining $54.7 million.
Weekly Funding Performance Looking at specific weeks, startups raised approximately $219 million between August 2 and 8, which is a 43.4% decrease from the $386.6 million raised in the corresponding week of the previous year. The number of deals also decreased from 40 to 29 during this period. In another week, from July 26 to August 1, startups raised about $125.7 million, a 34.6% decline compared to the $192.1 million raised during the same period last year. There were 17 transactions recorded during this week, compared to 45 deals in the corresponding week last year. However, there are exceptions, as seen between August 30 and September 5, when startups raised approximately $180.3 million, a 28.3% increase from the $140.6 million raised during the same period last year.
Key Deals and Companies Despite the overall slowdown, several companies have successfully secured substantial funding rounds. CityMall, a community e-commerce startup, raised $47 million in a round led by Accel. Seekho, a short-form learning startup, raised $28 million in a funding round led by Bessemer Venture Partners. FirstClub, a quick commerce startup, raised $23 million in a funding round led by Accel and RTP Global. Porter, an on-demand logistics unicorn, is expected to secure a $110 million capital infusion.
Factors Contributing to the Slowdown Several factors could be contributing to this funding deceleration. There is a general slowdown in the market, and regulatory measures are also playing a role. Fintech companies are increasingly pursuing secured lending products over unsecured ones.
Broader Economic Context The funding slowdown in the ETtech sector aligns with broader economic trends. Individual mutual fund distributors have grown to about 170,000, with a need for 500,000, and platforms like AssetPlus, Wealthy, and ZFunds are providing technology to help them. Banks and fintech companies are also promoting credit cards tied to fixed deposits to attract users.
