The third week of June has brought more sobering news for the Indian startup landscape, as venture capital (VC) funding dropped significantly, reaching just $56 million across 12 deals. This marks the second-lowest weekly total in 2025 so far and underscores the persistent challenges the sector is grappling with. The stark contrast with the previous week—when startups raised $299 million—illustrates the unpredictable and strained nature of the current funding environment.
This is now the fourth instance this year where total weekly VC funding has dipped below the $100 million mark, according to data from Business Headline. The lowest point came in January, when the week’s total funding slumped to just $14 million. These figures highlight a worrying trend for the ecosystem, which continues to be weighed down by a cautious investment climate, global macroeconomic instability, and a general slowdown in capital inflows.
Despite this slump, there were notable developments that reflected both optimism and ongoing hurdles in the startup scene. On the brighter side, Urban Company achieved a major milestone by turning profitable, signaling robust operational efficiency and market resilience. This profitability comes at a time when many startups are struggling to rein in costs and pivot toward sustainable growth.
In another positive move, social commerce platform Meesho announced a strategic shift of its headquarters from the United States to India. The relocation highlights a deepening focus on the Indian market and aligns with the company’s long-term growth plans. Both Urban Company and Meesho are reportedly preparing for their initial public offerings (IPOs), a move that could inject renewed confidence into the ecosystem if successful.
However, not all developments were encouraging. Startups operating in the bike taxi segment are now staring at an uncertain future after the Karnataka government imposed a ban on their services. The move threatens to disrupt operations for several mobility-focused startups and may deter future investment in the urban transportation space, at least in the affected region.
Key Transactions
Despite the overall funding decline, several startups managed to secure significant investments during the week. CLR Facility Services stood out by raising $15 million from British International Investment (BII), reflecting continued investor interest in the facilities management sector.
Electric vehicle (EV) startup Oben Electric secured fresh capital amounting to approximately ₹50 crore (around $11.5 million), with participation from Helios Holdings, the Sharda Family Office, and the Kay Family. The funding will likely support Oben’s plans to expand operations and scale its product offerings in the growing EV space.
In fintech, Techfino raised around ₹65 crore (approximately $7.4 million) from Stellaris Venture Partners and Saison Capital. The funding is expected to bolster the company’s product development and customer acquisition efforts.
Meanwhile, EV manufacturer Okinawa Autotec received ₹60 crore (roughly $6.9 million) from Dhruv Khush Business Ventures. This capital injection is anticipated to strengthen Okinawa’s manufacturing capabilities and R&D initiatives.
Outlook
With funding levels continuing to hover between $100 million and $200 million on most weeks—and now dipping sharply below—it’s clear that the Indian startup ecosystem is navigating a tough phase. Unless macroeconomic conditions improve and investor confidence rebounds, the flow of venture capital is likely to remain tepid in the near term.
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