Indian engineers assembling advanced hardware in a workshop.
The Indian startup ecosystem witnessed a significant funding week, with startups collectively raising $132.3 million across 18 deals from May 4 to May 8. This figure represents a decrease from the previous week’s $204 million raised across 19 deals. A major highlight of the week was Skyroot’s achievement, as the spacetech company secured $60 million, propelling it to unicorn status and marking it as the first in its sector for 2026. This funding round valued Skyroot at a pre-money valuation of $1.1 billion.
The Advanced Hardware & Technology sector led the funding landscape, attracting $73.4 million through four deals, largely driven by Skyroot’s substantial investment. The Artificial Intelligence (AI) and Advanced Hardware & Technology sectors each saw a notable deal count of four, indicating robust activity in these areas.
Among investors, Alkemi Growth Capital was particularly active, participating in three startup funding rounds. Seed-stage startups also saw an increase in capital infusion, raising $5.6 million, a 21.7% rise from the $4.6 million recorded in the prior week.
In other financial developments, the week saw significant activity in the IPO and M&A spaces. Lending tech startup Kissht’s IPO was oversubscribed 9.5 times and its shares listed at a premium on the BSE. InCred Holdings filed its updated draft red herring prospectus for an IPO, aiming to raise up to ₹1,250 crore. Quick commerce company Zepto also received SEBI’s approval to proceed with its IPO, expected to be around $1 billion.
Mergers and acquisitions included FMCG major Emami acquiring a 60% stake in IncNut Digital for ₹321 crore. Adtech unicorn InMobi acquired the San Francisco-based mobile app analytics platform MobileAction. Digital banking startup Freo expanded its reach by acquiring a 100% stake in credit marketplace IndiaLends. Additionally, logistics AI unicorn Netradyne strengthened its European presence by acquiring fleet management company Moove Connected Mobility.
About the Author
