Weekly Funding Wrap: Emergent Becomes Unicorn; IPO-bound Udaan Scores Big

Between July 10 and July 16, the total capital infusion in the Indian startup ecosystem exceeded USD 300 million, propelled by substantial funding rounds at Udaan and Emergent – according to the latest Tracxn data. 

The funding was up by nearly 41 percent compared to the previous week, 66 percent up from the week before. 

MVP  of the last week was Emergent which raised $130 million in a Series C funding round, taking its valuation to $1.5 billion and making it a unicorn just one year after its public launch.

The round was led by Creaegis, with MNI Ventures – Claypond Capital and Sentinel Global joining as co-lead investors. Existing investors, including Khosla Ventures, SoftBank Vision Fund 2, Lightspeed, and Y Combinator, also participated. The latest funding brings Emergent’s total capital raised to $230 million and marks a fivefold increase in its valuation in just four months.

Emergent is also India’s third AI unicorn after Neysa and Sarvam in 2026. Overall, it’s the seventh unicorn from India this calendar year. 

Udaan, in the meanwhile, announced a structured financing transaction worth approximately USD 160 million. The B2B startup last raised  USD 114 million Series G funding round in June 2025, led by M&G Investments and Lightspeed, with participation from several existing and new investors. The latest funding is likely to accelerate its IPO plans. 

Key highlights:

Stage-wise funding

As suggested above, the week saw large fundings in the late-stage companies. According to the data, USD 290 million went to such startups while seed-stage and early-stage saw USD 3.1 million and USD 17.2 million, respectively. 

Most Active VCs

Fireside Ventures and Lightspeed Venture Partners emerged as the most active investors of the week with each joining at least two rounds. Sentinel Global, which invested in Emergent, also made the cut. 

IPO, M&As

Kusumgar Limited, an engineered fabrics manufacturer for aerospace and defense, saw its IPO being subscribed 128.85 times. The company’s stock made a debut in the market at nearly 36 percent premium over the issue price of INR 419 per share. 

Separately, Recode Studios acquired luxury beauty brand Aflairza Professionals for nearly INR 8.32 crore. Recode, a beauty and personal care, aims to expand its presence in premium segments of cosmetics and skincare through the acquisition. 

Top Funding Deals

*Equity rounds and tech companies have been considered for the roundup.

*Data source: Tracxn