Startup news and updates: Daily roundup (February 17, 2025)

From Aarin Capital Co-founder TV Mohandas Pai calling the Budget's Rs 10,000 crore startup fund insufficient for India’s AI ambitions to The ePlane Company partnering with ICATT to supply 788 air ambulances for rapid medical response across districts, YourStory brings today’s headlines that highlight significant developments across industries.

Here’s a roundup of key stories:

Featured news

Budget is very good for startups but more funds should have been allocated: Mohandas Pai

Former Infosys board member and Aarin Capital Co-founder TV Mohandas Pai said that while the Budget is excellent for startups, the government’s Rs 10,000 crore allocation for the startup fund is not enough if India wants to become a leading player in artificial intelligence (AI) and GenAI. 

The Union Budget for 2025-26 allocated an additional Rs 10,000 crore for the startup fund, alongside the announcement of a dedicated deeptech fund. These measures were welcomed by the startup community as a step in the right direction. However, Pai, in an interview with YourStory, emphasised that these provisions should have been much more. “As a nation, we need to have bigger ambition on AI and this can be driven only by startups,” he stated. Read more.

Latest news

The ePlane Company to supply 788 air ambulances in $1B deal

The ePlane Company, an Indian eVTOL (electric vehicle and take-off and landing vehicle) maker, has partnered with the International Critical-Care Air Transfer Team (ICATT), an air ambulance provider in India, to supply 788 air ambulances. The deal was valued at over $1 billion. This deal represents one of the largest initial agreements in the eVTOL space, marking a step toward integrating air mobility into both rural and urban healthcare infrastructure nationwide. Read more.

Funding news

Rare Rabbit raises Rs 50 Cr from A91 Partners at $280M valuation

Omnichannel fashion retailer Rare Rabbit raised Rs 50 crore from existing investor A91 Partners at a valuation of $279 million Radhamani Textiles Pvt Ltd, the parent company of Rare Rabbit, received Rs 50 crore for 23,073 shares, each valued at Rs 21,670. Post transaction, A91 Partners holds a 14.17% stake in the company, as per filings made with the Registrar of Companies (RoC).

This comes after the premium apparel retailer raised Rs 150 crore from A91 Partners, Nikhil Kamath-backed NkSquared, and Gruhas. The round, conducted in June 2024, also witnessed participation from Manyavar founder Ravi Modi's family trust and Vedant Modi. Read more.

Udaan raises $75M from existing investors in Series G funding

B2B ecommerce firm Udaan raised $75 million as part of its Series G funding round, with another $25 million expected in the coming quarter, co-founder and CEO Vaibhav Gupta told employees in a town hall today.

The round, which values Udaan at a flat $1.8 billion valuation, was led by London-based global investment manager M&G Plc, along with participation from existing investors, including Lightspeed Venture Partners.

The Bengaluru company will use the capital to enhance customer experience, deepen market penetration, strengthen strategic vendor partnerships, and bolster long-term capabilities in supply chain and credit. Read more.

Luke Coutinho, Narendra Firodia invest $1M in You Care Lifestyle (YCL)

Serial entrepreneur Luke Coutinho and promoter Narendra Firodia—co-founders of You Care Lifestyle (YCL)—have invested $1 million in the company that conducts independent third-party lab tests on food, skincare, and health and wellness products.

YCL plans to allocate part of the funding to strengthen its product verification and authentication processes. A portion of the funds will also go toward supporting emerging clean brands.

Abakkus leads Rs 175 Cr funding in Stelmec Ltd 

Mumbai-based Stelmec Limited, a manufacturer of electrical power products, has raised Rs 175 crore from a consortium led by Abakkus Four2Eight Opportunities Fund to support its expansion plans, enhance R&D efforts, and grow its presence in domestic and international markets.

Solitario Lab Grown Diamonds raises $3.6M in pre-IPO funding

Solitario Lab Grown Diamonds raised $3.6 million in a pre-IPO funding round. Co-founded by jewellery industry veteran Ricky Vasandani and Bollywood actor Vivek Oberoi, it offers lab-grown diamond jewellery.

The round saw participation from investors such as Neeraj Gupta (Meru Cabs), Mauritius-based FPI Investi Global, Vicco Group, Seema Manish Nuwal (Promoter, Solar Industries), Amit Agarwal, Rajesh Singla, Garima Theti, and Sandeep Singh.

It will use the fresh capital to expand its retail network in domestic and international markets, enter new geographies, enhance branding and marketing, diversify its product portfolio, and strengthen its manufacturing capabilities.

The company operates 18 stores across 10 major Indian cities and has 38 outlets internationally in Dubai, Malaysia, and Spain. Its 30,000-square-foot manufacturing facility in Surat employs over 300 people.

Lurny raises capital as part of $100K seed fund strategy

Lurny, an AI-powered content creation and sharing platform known for its collection of two-minute micro lessons, raised an undisclosed amount as part of its $100,000 seed fund strategy led by investors John Varghese, Mathew Tharakan, and Manoj Kumar.

It will use the funds to finalise features such as audio, video, and PPT "Lurnification," along with advanced content transformation tools and multilingual capabilities. The startup also plans to expand its product development team and set up operational infrastructure, including office space and compliance facilities.

Rubyworks secures pre-Series A funding 

Mumbai-based financial research platform Rubyworks raised an undisclosed pre-Series A funding round from global and Indian investors to accelerate the platform's launch, expand the technology team, onboard finance experts, and execute marketing strategies to grow its global client base. 

The company is building an AI-powered platform to help investment banks, PE/VC funds, startups, and corporates execute complex finance projects by tapping into its in-house analyst pool and a network of freelance finance experts. The platform aims to deliver high-quality research at a fraction of the cost of traditional knowledge process outsourcing (KPO) services.

Co-founded by industry veterans Nirav Morakhia and Mithil Pawar, Rubyworks operates with a team of 30 professionals in Mumbai and Pune, serving clients across 10 countries.

Other news

KiranaPro becomes India’s first ONDC-powered quick commerce company

KiranaPro, an AI-powered quick commerce platform, has become the first company to integrate with the Open Network for Digital Commerce (ONDC), enabling it to connect millions of kirana store owners with customers across India.

With ONDC integration, KiranaPro plans to onboard products from over seven lakh registered vendors across India, provide small retailers with greater access to digital markets, and create new business opportunities.

Unlike traditional quick commerce platforms that depend on centralised warehousing, KiranaPro operates a hyperlocal model that directly connects customers with neighbourhood kirana stores. The company uses an AI-driven interface designed to simplify the digital transition for small businesses and expand the reach of local retailers in the growing quick commerce market.

Advait Energy Transitions signs MoU with Haryana City Gas Distribution 

Advait Energy Transitions Ltd (AETL) signed a Memorandum of Understanding (MoU) with Haryana City Gas Distribution (Bhiwadi) Ltd to establish a 2000 MTPA Green Hydrogen Plant.

As part of the agreement, AETL will supply 15MW alkaline-based electrolysers and deliver turnkey EPC solutions, including Balance of Plant systems. The company will also oversee operations and maintenance for one year after the plant is commissioned.

The MoU further covers consultancy and advisory services to evaluate the potential of green hydrogen in industrial and commercial sectors. Additionally, it would explore the feasibility of green ammonia production and opportunities related to carbon credits.

Garuda Aerospace signs MoU with HFCL to develop advanced UAV solutions

Drone startup Garuda Aerospace signed a Memorandum of Understanding (MoU) with Himachal Futuristic Communications Limited (HFCL) at Aero India 2025 to develop advanced UAV (Unmanned Aerial Vehicle) technologies. The partnership will combine HFCL's expertise in payload systems with Garuda Aerospace’s drone manufacturing capabilities to strengthen India’s UAV ecosystem.

The collaboration will focus on developing UAV applications for sectors like defence, agriculture, surveillance, industrial inspection, disaster response, and logistics. HFCL will design payloads such as EO/IR sensors, LiDAR, and AI-driven communication systems, while Garuda Aerospace will integrate these technologies into its drone platforms.

The drones will be equipped with AI capabilities for disaster management, industrial inspections, smart city surveillance with 5G networks, and cargo logistics. The initiative will also support real-time monitoring for the Namo Drone Didi and Viksit Bharat programmes, assisting farmers with enhanced agricultural solutions.

Findi bags Rs 500 Cr deal from Union Bank of India to roll out 900 ATMs 

Brown Label ATM (BLA) service provider Findi Ltd, through its majority-owned Indian subsidiary Transaction Solutions International (India) Pvt Ltd (TSI), has signed a contract with Union Bank of India to deploy 900 ATMs across the country. The partnership is expected to generate about Rs 500 crore in revenue and Rs 200 crore in EBITDA over a 7+1 year period. 

Through TSI, Findi operates over 9,000 Brown Label ATMs, serving 13 Indian banks, including SBI, HDFC Bank, and Central Bank of India. The addition of Union Bank of India expands Findi’s reach, supporting financial services delivery to urban and rural areas through its merchant network.

This is Findi’s third major agreement this year. Earlier, TSI acquired BankIT, a digital payments service provider with over 129,000 merchant touchpoints, increasing the network to 180,000+. Additionally, Findi received RBI approval to acquire Tata Communications Payment Solutions Ltd, further expanding its presence in the financial services sector.

(This article will be updated with the latest news throughout the day.)