This single week saw a notable uptick in funding in India’s startup scene.
In February 2025, India’s startup ecosystem experienced an interesting mix of cautious sentiment and brief exuberance. While the overall funding activity remained modest compared to the dramatic highs of late 2024, there was a notable temporary surge in the second week of February, when Indian startups collectively raised more than US$300 million in just a few days. In this article, we zero in on the deals that occurred during that period, examining several notable funding rounds and exploring what these trends reveal about investor sentiment and market dynamics.
JQR (Just Quick Run) raised US$25 million on 10 February
Just Quick Run (JQR), a Delhi-based brand specializing in affordable sports footwear, raised US$25 million from Venturi Partners in its very first venture capital round. This investment is set to fuel JQR’s expansion into new markets, launch an online platform and enhance its product range to meet India’s growing demand for affordable, high-quality sneakers.
Founded in 2014 by Rinku Garg, Sunil Garg and Manish Garg, JQR is celebrated for its innovation in producing premium-quality footwear at accessible prices. In 2015, the company launched India’s first fluorescent sneakers. Its ambition is clear—they aim to disrupt India’s US$12 billion mid- to economy-priced footwear market.
Rishika Chandan, Managing Director of Venturi Partners, highlighted the underserved opportunities in India’s affordable footwear segment. “JQR has impressed us with its product quality, design aesthetic, in-house manufacturing and well-established distribution network. We look forward to working closely with the founders to accelerate their growth trajectory,” she stated. The partnership is geared toward boosting expansion while maintaining a strong commitment to quality and customer satisfaction.
ToneTag raised US$78 million on 11 February
ToneTag, an Indian contactless payment startup, secured INR674 crore (US$78 million) in its Series B round—a major milestone after a seven-year funding gap. The round was led by ValueQuest S.C.A.L.E. Fund, with participation from existing investor Elevate Innovation Partners LLC.
Following this fresh injection of capital, ToneTag plans to scale its operations, recruit new talent and expand into high-growth markets in Asia and South America—targeting regions where there is a rising demand for offline-friendly digital payments.
Founded in 2014 by Vivek Singh and Kumar Abhishek, ToneTag leverages sound-based digital payment technology for both online and offline transactions through its Oyeti platform and VoiceSe unified payment interface (UPI)-based service. The Bengaluru-based fintech startup even collaborates with the National Payments Corporation of India (NPCI) to power its feature-phone UPI product. Processing over 30 million daily transactions with its proprietary soundwave technology, ToneTag enables secure, internet-free payments for merchants and consumers.
Backed by clients like Google, Amazon, State Bank of India (SBI) and ICICI Bank, ToneTag reported a 111.7% revenue surge to approximately INR47.78 crores (US$550,234) in FY24, marking its first-ever profit since its 2014 inception. In a competitive fintech landscape that includes giants like Paytm, PhonePe, PineLabs, BharatPe and MobiKwik, ToneTag’s unique technology positions it for global growth.
Zeta raised US$50 million on 11 February
Zeta, a banking tech innovator offering cloud-native solutions for financial institutions, secured a US$50 million investment from an undisclosed investor, bringing its valuation to US$2 billion. This latest round follows a US$250 million Series C funding in 2021 led by SoftBank Vision Fund 2, which first propelled the company to unicorn status with a US$1.45 billion valuation.
The fresh funds will be used to accelerate Zeta’s expansion and strengthen its suite of enterprise solutions, including core banking infrastructure, payment processing, AI-powered fraud detection and customer engagement tools—targeting banks and fintech firms worldwide.
Founded in 2015 by Bhavin Turakhia and Ramki Gaddipati, Zeta empowers banks and fintech companies to rapidly launch financial products—ranging from credit cards and loans to digital banking solutions—using its cloud-native, API-first platform. The company collaborates with leading institutions like HDFC Bank, Pluxee and Sparrow Financial, streamlining their digital transformation with modular, scalable infrastructure.
Zeta’s SaaS platform currently supports over 25 million accounts, and the company has plans to double this figure. With a team of over 1,700 employees, mostly engineers and developers, Zeta is making waves across the U.S., the Middle East and Asia, driving digital transformation for financial institutions.
Rapido raised US$29.7 million on 11 February
Rapido, a leading ride-hailing startup in India, secured INR250 crore (US$29.7 million) from global tech investor Prosus in its ongoing Series E round. This deal values Rapido at around US$1 billion, with Prosus acquiring a 2.9% stake. This investment follows a US$120 million funding round in July 2024, led by WestBridge Capital. With the new capital, Rapido aims to accelerate its growth and expand its services from the current 120 cities to 500 cities by the end of the year.
Founded in 2015 by Rishikesh SR, Pavan Guntupalli and Aravind Sanka, Rapido now facilitates 3.6 million rides daily. Its services, which include bike taxi, auto and cab options, as well as peer-to-peer delivery via Rapido Local, help customers avoid traffic congestion and reduce travel costs. Rapido’s range of offerings and its strong market presence position it as a formidable competitor to Uber and Ola. In 2022, it broke the Ola-Uber duopoly in bike transport and achieved unicorn status after a US$200 million round led by WestBridge and Nexus.
SpotDraft raised US$54 million on 12 February
In a Series B round, Bengaluru-based SpotDraft secured an investment of US$54 million. The funding round was led by Vertex Growth Singapore and Trident Partners, with participation from existing investors including Prosus Ventures and Premji Invest. This Series B round follows a US$26 million Series A completed on March 2, 2023.
SpotDraft is a SaaS provider offering AI-driven contract lifecycle management (CLM) solutions for legal teams. Founded in 2017 by Shashank Bijapur, Madhav Bhagat and Rohith Salim, the startup streamlines contracting processes for enterprises through features like AI-assisted redlining, e-signatures and intelligent repositories. With a team of 250 employees across India and New York, SpotDraft plans to further expand its AI capabilities and leadership team while targeting mid-market companies.
PMI Electro Mobility raised US$28 million on 14 February
PMI Electro Mobility, an electric bus manufacturer, secured strategic funding of INR250 crore (about US$29 million). The funding round was led by Authum Investment & Infrastructure and included participation from Gruhas, Antique Securities and associated HNI family offices. This follows a previous INR250 crore (US$29 million) investment from Piramal Alternatives in 2023. The fresh capital will be used to develop innovative solutions, enhance production capabilities and scale operations.
Founded in 2017 by Satish Kumar Jain, PMI Electro Mobility manufactures electric buses and currently operates 2,000 buses across 31 cities. As an original equipment manufacturer (OEM) partnering with government tenders, the company is committed to supporting India’s transition to electric vehicles (EVs) in public transport.
This funding is coming at a time when EV adoption is on the rise in India, bolstered by government schemes like PM E-DRIVE. With India’s EV market valued at US$23.38 billion in 2024 and projected to reach US$117.78 billion by 2032 at a CAGR of 22.4%, the outlook is promising.
Udaan raised US$75 million on 17 February
Bengaluru-based B2B e-commerce unicorn Udaan raised US$75 million in its Series G equity round, led by M&G Plc with participation from existing investors including Lightspeed Venture Partners. The round was completed at a valuation between US$1.5 billion and US$1.8 billion. Udaan plans to use the new funds to enhance customer experience, expand its market presence, strengthen vendor partnerships and improve its supply chain and credit infrastructure.
This latest round comes on the heels of a US$340 million round in December 2023 and over US$35 million in debt funding (about INR300 crore) in October 2024. In total, Udaan has raised around US$1.9 billion in both debt and equity. The company also plans to raise an additional US$25 million from potential investors in the coming quarter.
Currently operating in more than 900 Indian cities, Udaan was founded in 2016 by former Flipkart executives Amod Malviya, Sujeet Kumar and Vaibhav Gupta. The nine-year-old B2B e-commerce marketplace connects over 25,000 sellers with three million retailers across industries such as fast-moving consumer goods (FMCG), pharmaceuticals, electronics and general goods.
Conclusion
To sum up, February 2025 presented a balanced picture for India’s startup funding. Although the month as a whole saw a cautious approach—with investors favoring multiple smaller deals—the temporary surge in the second week, where over US$300 million was raised in a short span, highlights that pockets of opportunity still exist. This pattern reflects a measured investor confidence amid lingering macroeconomic uncertainties. While the overall pace remains subdued compared to late 2024, the brief spike may hint at potential areas of strength that, if nurtured, could help the ecosystem move toward more sustainable growth.
Also read:
- 4 AI Startups That Raised Over US$100M in Late 2024
- 4 Indian Startups That Shut Their Operations in 2024: What Went Wrong?
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