Synopsis
Indian startups secured approximately $1.1 billion in May, a significant 37% year-over-year increase, driven by Rapido's substantial $240 million funding round. While overall capital raised surged, the number of funding rounds saw a decline compared to the previous year. Late-stage deals dominated the funding landscape, accounting for the majority of the capital deployed.Listen to this article in summarized format
The monthly tally was also 69% higher than April, when startups raised $659.6 million across 70 rounds. However, the number of funding rounds fell to 65 from 148 in May last year.
Late-stage deals accounted for $903.6 million, or 81% of the total capital raised during the month. Early-stage startups raised $161.4 million, while seed-stage companies secured $49.4 million.
Fireside Ventures, 8X Ventures and Alkemi Growth Capital were the most active investors in May, with two deals each. Fireside backed Kisah and CHOSEN, 8X Ventures invested in Solinas Integrity and TIEA, while Alkemi Growth Capital participated in rounds of CHOSEN and Alphadroid.
Deals of the month
Rapido: In the largest deal this month, Rapido raised $240 million in fresh capital in a round led by Prosus at a valuation of $3 billion. Existing investors WestBridge Capital and Accel also participated. The fundraise was part of a larger $730 million round, which also included a secondary share sale.
ET had first reported in March 2026, that Accel Leaders Fund was expected to join the transaction.
Scapia: Travel-focused fintech startup Scapia raised $63 million in a funding round led by General Catalyst, with participation from existing investors Peak XV Partners and Z47. Founded in 2022 by former Flipkart senior executive Anil Goteti, the startup has raised $72 million to date. ET had first reported about the fundraise exclusively on March 15.
UpGrad: Edtech platform UpGrad raised Rs 361 crore, or around $38 million, in a fresh funding round, valuing the company at $1.7 billion. The development comes as the company awaits approval from the Competition Commission of India for its proposed acquisition of Unacademy. ET first reported on UpGrad’s latest valuation on May 20. ET also reported about UpGrad and Unacademy filing for merger with the antitrust regulator in the first week of May.
