Indian startups raise over $265 million in funding led by Bluestone’s $107 million round

The third week of August saw a notable decline in funding for Indian startups, with companies raising around $265 million across 16 deals—a 33% decrease from the previous period. While several sectors witnessed activity, it was e-commerce and fintech that dominated deal-making.

The biggest news came from omnichannel jeweler Bluestone, which bagged $107 million in a pre-IPO round led by Peak XV Partners. This echoed the rapid growth of D2C brands meeting demand for digitized retail experiences. Elsewhere, business software firm E2E Networks raised $50 million, while consumer goods startups Livpure and uppercase capitalized on India’s expanding digital consumer base with funding rounds.

In fintech, renowned microlender Aye Finance topped up its warchest with a $25 million loan, signaling sustained interest from traditional funders in backing promising financial inclusion platforms. Newer entrants also found backers, such as axio raising $20 million from Amazon’s VC arm to fuel expansion. Overall though, seed investments saw a sharp pullback, underscoring tougher conditions for early-stage risks.

However, it wasn’t all doom and gloom. The enterprise tech segment stayed busy, with six deals amounting to $55 million flowing to names like FabriBazar and LLUMO as digital transformation becomes imperative across sectors. Meanwhile, new funds like Volt VC and PhysicsWallah’s startup incubator signal continued supply of risk capital to fuel India’s innovation engine over the long-term.