Startup Funding Drops 23% This Week, Skyroot Leads Top Deals
This Week’s Top Funding Deals (May 02–May 08)
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India’s startup funding ecosystem witnessed a slowdown in the week of May 02 to May 08, 2026, with overall investments declining by nearly 23 percent compared to the previous week, according to Tracxn.
Despite the dip, the week saw notable funding activity across spacetech, consumer services, semiconductors, and D2C brands, reflecting sustained investor interest in innovation-led and niche market segments.
Top Funding Deals
Skyroot Aerospace (Spacetech)
India’s first spacetech unicorn, Skyroot Aerospace focuses on building cost-effective, on-demand orbital launch vehicles for small satellite operators. Its Vikram series rockets leverage advanced 3D printing and carbon-composite technologies, positioning the company as a key private player in India’s rapidly evolving space ecosystem.
• Inception: 2018
• Headquartered: Hyderabad
• Founders: Pawan Kumar Chandana, Naga Bharath Daka
• Funding Amount: USD 60 Mn
• Investors: Sherpalo Ventures, GIC, Greenko founders, Arkam Ventures, BlackRock, Playbook Partners, Shanghvi Family Office
Pronto (Home Services Marketplace)
Pronto is an on-demand household services platform connecting users with trained, verified professionals. Its offerings include cleaning, laundry, cooking, car washing, and gardening services, targeting urban households seeking convenience and reliability through a tech-enabled service marketplace.
• Inception: 2025
• Headquartered: Bengaluru
• Founder: Anjali Sardana
• Funding Amount: USD 20 Mn
• Investors: Lachy Groom
BigEndian Semiconductors (Semiconductor/Deeptech)
BigEndian Semiconductors develops secure, high-performance System-on-Chip (SoC) solutions for AI-powered surveillance, IoT, and enterprise applications. As a fabless startup, it aims to reduce reliance on Chinese chipsets by offering trusted alternatives for critical infrastructure and surveillance systems.
• Inception: 2024
• Headquartered: Bengaluru
• Founders: Sunil Kumar, Renuka Prasad, Dinesh Annayya, Kanagaraju Ponnusamy, Jansen Cheng
• Funding Amount: USD 6 Mn
• Investors: IAN Alpha Fund, Vertex Ventures SEA & India, IvyCap Ventures
CHOSEN (D2C Skincare)
CHOSEN is a science-led skincare brand focused on melanin-rich Indian skin, leveraging exposome-based dermatology. With over 55 SKUs, including sunscreens, serums, and nutraceuticals, the brand combines clinical research with consumer accessibility through a dermatologist-backed, clinic-to-consumer model.
• Inception: 2020
• Headquartered: Chennai
• Founder: Renita Rajan
• Funding Amount: USD 5 Mn
• Investors: Fireside Ventures, BOLD, Alkemi Growth Capital, Avnish Anand, L’Oréal’s VC arm, dermatologists
Aurm (Secure Storage/Proptech)
Aurm provides automated, high-security locker solutions for residential and corporate spaces. Its tech-enabled offerings include AI-powered surveillance, multi-factor authentication, and 24/7 access, addressing the shortage and inconvenience of traditional bank lockers.
• Inception: 2023
• Headquartered: Bengaluru
• Founders: Vijay Arisetty, Suraj HS, Pratap Chandana, Ganesh Balakrishnan
• Funding Amount: USD 5 Mn
• Investors: Earth Fund, Sattva Ventures
Kisah (D2C Fashion)
Kisah is a men’s ethnic wear brand offering affordable, fashion-forward traditional and Indo-western apparel. Targeting Gen Z and millennials, the company operates an omnichannel model with products ranging from kurtas and sherwanis to contemporary ethnic sets.
• Inception: 2018
• Headquartered: Kolkata
• Founders: Yash Sarawagi, Yashwi Ladasaria
• Funding Amount: USD 3.8 Mn
• Investors: Fireside Ventures
Mergers and Acquisitions (M&A)
Freo acquired IndiaLends to strengthen its credit marketplace offerings, while InMobi bought MobileAction to expand its iOS advertising capabilities. Emami announced a 60 percent stake acquisition in Vedix parent IncNut, signaling deeper interest in personalised beauty.
Netradyne acquired Moove to enter the European market, and upGrad is set to acquire Unacademy in a USD 218 million all-stock deal, marking a major consolidation in the edtech space. Meanwhile, IPL franchise Rajasthan Royals is reportedly heading for a USD 1.65 billion buyout by investors Mittal and Poonawalla.
IPO Activity
On the public markets front, InCred Holdings filed its updated draft red herring prospectus (UDRHP) with SEBI for an INR 1,250 crore IPO, indicating continued momentum in fintech listings despite broader funding moderation.
India’s startup funding ecosystem witnessed a slowdown in the week of May 02 to May 08, 2026, with overall investments declining by nearly 23 percent compared to the previous week, according to Tracxn.
Despite the dip, the week saw notable funding activity across spacetech, consumer services, semiconductors, and D2C brands, reflecting sustained investor interest in innovation-led and niche market segments.
Top Funding Deals
Skyroot Aerospace (Spacetech)
India’s first spacetech unicorn, Skyroot Aerospace focuses on building cost-effective, on-demand orbital launch vehicles for small satellite operators. Its Vikram series rockets leverage advanced 3D printing and carbon-composite technologies, positioning the company as a key private player in India’s rapidly evolving space ecosystem.
