Venture capital investments in Indian startups declined, but Yulu attracted $93 million

The second week of August was marked by a sharp decline in venture capital (VC) funding for Indian startups. The only positive development was the $93 million raised by Yulu.

Last week, $323 million was raised, which offered hope for a revival in capital inflow; however, figures have returned to the usual range of $100–$200 million. In total, 15 deals were closed this week for a combined amount of $146 million, with all except the major deal with Yulu being minor.

Since the beginning of this year, weekly venture funding has exceeded the $300 million mark in only 10 weeks. This indicates the difficulties the ecosystem continues to face in attracting large sums of capital.

In 2025, the total amount raised was $12.1 billion, and based on current trends, funding this year may reach or slightly exceed that level.

Activity remained limited this week in terms of both the number of deals and the distribution of investors across sectors. Nevertheless, the Indian startup ecosystem maintains its viability thanks to fundraising from various venture firms.

Overall, this year, weekly venture funding has fluctuated within the $100–$200 million range with rare spikes from large deals. Without a resumption of momentum in major deals, it is unlikely that the volume of raised funds will show significant growth.

The startup Yulu, operating in the electric mobility as a service (MaaS) sector, attracted $93 million led by GEF Capital Partners.

Centricity, a wealth management company, received approximately 280 crore rupees (about $29.3 million) from SMBC Asia Rising Fund, Lightspeed India Partners, Burman Family Office, RAAY Investments, Kuldeep Rathi Family Office, Stride Venture, and Innoven Capital.

FA Gifts, a Gurgaon-based company behind the online gift platforms FlowerAura and the bakery Bakingo, attracted nearly 100 crore rupees (about $10.4 million) from Faering Capital.