tartup Funding News India: Weekly Roundup Aug 2025

Source: Techbuild Africa

There was a very strong indication of interest among investors in the Indian startup ecosystem last week, with startup companies in fintech, housing finance, and lifestyle brands raising many millions of dollars. This week’s investments are showing how startups are facilitating growth to a number of industries, including, among other things, providing loans to small businesses, developing new digital payment systems, and manufacturing up-to-date consumer products.

Vistaar Financial Services – MSME Lending

• Established: 2010 | Founders: Brahmanand Hegde, Ramakrishna Nishtala | Head office:  Bengaluru 
• Funding Raised: USD 164 million
• Investors: Motilal Oswal Alternates, ABC Impact, and others.

Vistaar Financial Services extends secured borrowing facilities to micro, small, and medium-sized enterprises. Its customers include shopkeepers, power loom operators, kirana stores, home-based businesses, and even small manufacturers. By lending to businesses that would often not have access to timely formal finance, the company is also working to strengthen grassroots entrepreneurship.

TransBnk – Transaction Banking Infrastructure

• Founded: 2022 | Founders: Vaibhav Tambe, Lavin Kotian, Sachin Gupta, Pulak Jain | Headquarters: Mumbai 
• Funding Raised: USD 25 million

Investors:  Bessemer Venture Partners, Arkam Ventures, Fundamentum Partnership, 8i Ventures, Accion Venture Labs, and GMO Venture Partners

TransBnk develops transaction banking systems for banks and enterprises. It provides API-based solutions for services such as escrow, reconciliation, and cash flow automations. The company’s services help lenders, fintechs, and startups easily onboard and efficiently manage money. 

Kiwi – Fintech Startup

• Founded: 2022 | Founders: Siddharth Mehta, Mohit Bedi, Anup Agrawal | Headquarters: Bengaluru
• Funding Raised: USD 24 million
• Investors: Vertex Ventures Southeast Asia and India, Nexus Venture Partners, Stellaris Venture Partners, Omidyar Network.

Kiwi connects RuPay credit cards via UPI, enabling users to leverage credit while utilizing the expansive UPI payment network of merchants. The Kiwi platform also offers perks and plans to roll out features such as EMI payments and card add-ons soon. Kiwi is here to enable digital payments digitally, and allows for flexible payments.

Altum Credo Home Finance – Housing Loans for Affordability

• Founded in 2016 | Vikrant Bhagwat, Ganesh Rao, and Ashish Tewari | Pune
• Funding Raised: $19.5 million
• Investor: British International Investment (BII)

Altum Credo Home Finance lends housing loans to low-income/first-time buyers in urban and semi-urban areas of India. They loan between INR 4 lakh to INR 40 lakh, for a 5-20 year payback. The startup targets customers who face challenges in getting housing finance.

CredRight – NBFC for Micro Enterprises

• Founded: 2016 | Founders: Neeraj Bansal, Vineet Jawa | Headquarters: Hyderabad
• Funding Raised: USD 10 million

Investors: Abler Nordic, Michael & Susan Dell Foundation, Unleash Capital

CredRight operates a “phygital” model, combining physical presence and digital technology, to grant loans to micro and small enterprises. The platform uses machine learning and alternative data to approve loans instantly for sole traders, shopkeepers and entrepreneurs without a formal credit history.

Palmonas – Jewelry Brand (Revenue Generation) 

• Establishment: 2022 | Founders: Pallavi Mohadikar, Dr. Amol Patwari, and Shraddha Kapoor joined as co-founders in 2023 | Base of operations: Pune
• Capital Raised: USD 6.6 million 
• Investors: Vertex Ventures Southeast Asia and India 

Palmonas produces demi-fine jewelry, taking the look of fine jewelry at the price point of fashion accessories. Palmonas jewelry is made with sterling silver, stainless steel, and 18K gold-plated materials with a focus on the modern consumer, particularly millennials and Gen Z, who need stylish daily wear options.

Funding activity during this week illustrates the diversity of India’s startup ecosystem. Startups like Vistaar, CredRight, and Altum Credo are focused on expanding financial access, while Kiwi and TransBnk are building digital payments and banking systems for the next phase. On the lifestyle side, Palmonas demonstrates investor trust in consumer-focused brands.