Startup News
Indian Startup Funding Roundup | May 9, 2026: HealthTech, Quick Commerce & Space Lead This Week’s Deals
HealthTech seeds bloom, India's first spacetech unicorn lifts off, and Zepto gets its SEBI green light. Here's everything that moved Indian startup ecosystem this week.
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3
Total Deals (May 7–9)
$105M+
Capital Raised
3
Sectors Active
1
New Unicorn 🦄
🚀 Funding Deals: May 7–9, 2026
1
Skyroot Aerospace
$60 Million
Hyderabad-based Skyroot Aerospace raised $60 Mn co-led by Sherpalo Ventures and Singapore’s GIC, with participation from BlackRock, Playbook Partners, Shanghvi Family Office, and Arkam Ventures. At a valuation of $1.1 billion, Skyroot became India’s first spacetech unicorn. The capital will accelerate Vikram-1 launches, scale manufacturing, and fund development of Vikram-2 — a next-gen cryogenic launch vehicle. Ram Shriram of Sherpalo joins the board.
2
Pronto
$45 Million (Series B)
Pronto closed its Series B at $45 Mn (fresh $20 Mn tranche led by Lachy Groom, founder of Physical Intelligence) at a $200 Mn valuation — double the $100 Mn mark from its March first close. The startup scaled its partner network from 1,440 in January 2026 to 6,500, and will deepen its city footprint with fresh funds over the next six months.
3
Figtree Pharmacy
Undisclosed (Seed)
Mumbai-based Figtree Pharmacy raised an undisclosed seed round from AJVC Fund. Founded in 2025 by former Nomura analyst Adrit Chaturvedi and Flipspaces’ Yatin Sharma, the startup operates neighbourhood-focused pharmacies across Mumbai and Delhi (4 stores). 90%+ repeat customer rate and average order values exceeding ₹1,000. Plans to scale to 25 stores and launch private-label medicines.
📰 Key Business News: This Week
🟢 Zepto Gets SEBI IPO Nod ($1.2 Bn)
Quick commerce major Zepto received SEBI’s observation letter for its ₹11,000–12,000 Cr (~$1.2 Bn) IPO. Founded in 2021 by Aadit Palicha and Kaivalya Vohra, Zepto confidentially filed its DRHP in December 2025. The updated DRHP is expected in 6–8 weeks, pitting it against Blinkit, Swiggy Instamart, Amazon Now, and Flipkart Minutes in India’s hot quick-commerce race.
Quick commerce major Zepto received SEBI’s observation letter for its ₹11,000–12,000 Cr (~$1.2 Bn) IPO. Founded in 2021 by Aadit Palicha and Kaivalya Vohra, Zepto confidentially filed its DRHP in December 2025. The updated DRHP is expected in 6–8 weeks, pitting it against Blinkit, Swiggy Instamart, Amazon Now, and Flipkart Minutes in India’s hot quick-commerce race.
📉 Swiggy Q4 FY26: Loss Narrows 26% to ₹800 Cr
Swiggy posted Q4 FY26 revenue of ₹6,383 Cr (up 44.7% YoY) while trimming its quarterly loss to ₹800 Cr from ₹1,081 Cr. Full-year FY26 revenue grew 50.8% to ₹23,561 Cr. The results arrived as rival Eternal (Zomato) reported a 4.5x YoY jump in Q4 profit — intensifying pressure on Swiggy to reach profitability ahead of its own post-IPO commitments.
Swiggy posted Q4 FY26 revenue of ₹6,383 Cr (up 44.7% YoY) while trimming its quarterly loss to ₹800 Cr from ₹1,081 Cr. Full-year FY26 revenue grew 50.8% to ₹23,561 Cr. The results arrived as rival Eternal (Zomato) reported a 4.5x YoY jump in Q4 profit — intensifying pressure on Swiggy to reach profitability ahead of its own post-IPO commitments.
⚖️ ED Arrests Gameskraft Co-Founders
The Enforcement Directorate arrested Gameskraft’s three co-founders — Deepak Singh, Prithvi Raj Singh, and Vikas Taneja — under PMLA in a money laundering case linked to real-money gaming platforms RummyCulture and RummyTime. The agency had earlier frozen ₹18.57 Cr in escrow accounts. This highlights the growing regulatory risk for gaming startups around GST compliance, FEMA, and FDI norms.
The Enforcement Directorate arrested Gameskraft’s three co-founders — Deepak Singh, Prithvi Raj Singh, and Vikas Taneja — under PMLA in a money laundering case linked to real-money gaming platforms RummyCulture and RummyTime. The agency had earlier frozen ₹18.57 Cr in escrow accounts. This highlights the growing regulatory risk for gaming startups around GST compliance, FEMA, and FDI norms.
🌐 Cloudflare Lays Off 1,100+ in AI Restructuring
US-based Cloudflare announced 20% workforce cuts (1,100+ employees) as it shifts to an AI-first operating model, despite reporting Q1 revenue of ~$640 Mn. The move signals a broader global trend of AI-driven headcount reduction that Indian SaaS and tech startups should monitor closely — especially those with US-headquartered investors or parent entities with cross-border compliance implications.
US-based Cloudflare announced 20% workforce cuts (1,100+ employees) as it shifts to an AI-first operating model, despite reporting Q1 revenue of ~$640 Mn. The move signals a broader global trend of AI-driven headcount reduction that Indian SaaS and tech startups should monitor closely — especially those with US-headquartered investors or parent entities with cross-border compliance implications.
Post-Funding Compliance Reminder for Indian Startups
Just raised a round? Before you start hiring or spending, your compliance clock is ticking. Startups receiving foreign investment must file FC-GPR within 30 days of allotment. Miss it and you face compounding penalties under FEMA. Similarly, new investors must be reflected in your cap table, shareholder register, and MCA records on time. Working with a top CS firm in India for startup compliance ensures nothing slips through the cracks.
BSA Handles Post-Funding Filings End-to-End✅ Post-Funding Compliance Checklist for Founders
- File FC-GPR with RBI within 30 days of share allotment (foreign investment)
- Update shareholder register and issue share certificates within 60 days
- File Form PAS-3 (Return of Allotment) with ROC within 30 days of allotment
- Update cap table and reflect new investor entries on MCA portal
- Review and update SHA (Shareholders Agreement) and ESOP pool if new investors trigger anti-dilution or pre-emption clauses
- Obtain fresh board resolution for issuance and allotment of securities
Need expert support?
BSA supports founders across India with ROC, FEMA, due diligence, fundraising readiness, and company secretarial execution.
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Published by Bhavya Sharma & Associates for Indian founders, operators, CFOs, and compliance teams.
