Startup news and updates: Daily roundup (May 8, 2025)

From commercial vehicle platform 91Trucks raising $5 million in a Series A funding round to PB Healthcare Services securing $218 million in seed funding led by General Catalyst, YourStory brings you today’s top stories from the Indian startup ecosystem.

Feature story

The new AI divide: Speeding software, cautious customers

A decade ago, SaaSBOOMi (then SaaSx), a community for SaaS founders, rallied a handful of Indian entrepreneurs around one goal: to build world-class software. At this year’s edition in Chennai, that mission felt familiar, yet altered.

“Unlearn the constraints of the past,” said Freshworks Founder Girish Mathrubootham, as he gave a clarion call to Indian startup founders, whose lexicon encompasses AI, SaaS, and deeptech. For SaaS firms, the end-user has changed. Today, humans work alongside digital co-workers and AI agents, forcing software companies to build products as much for machines as for people.

This new intersection of artificial intelligence and SaaS has led founders to rewrite their playbooks overnight. Some founders, with their early experiments, have revamped their entire positioning overnight, while others wondered whether a rebrand was enough.

Read more here. 

No ifs or butts: This startup is converting cigarette waste into sustainable products

After a 14-year stint in Australia, Ketan Prajapati returned to India and realised that a smoking habit doesn’t just affect lungs but also pollutes the environment—often spilling out onto the streets. 

“In Warrnambool, where I used to live, there was a waste disposal site every 100 meters or so. Not so in our country. When I used to smoke, I ended up carrying the waste in a cigarette packet as I had developed a habit against littering. Eventually I realised many face this issue and started working towards solving it,” Prajapati says. 

According to the National Institute of Cancer Prevention and Research, the environmental burden of tobacco product waste is huge. The waste produced by the packaging of tobacco products in India amounts to over 1,70,000 tonnes per year; of this, waste produced by cigarette consumption is about 40,846 tonnes per year. 

Prajapati wants to tackle this problem with BuffIndia, the B2B waste management company he co-founded in 2018 with Nikhil Mangani to recycle cigarette waste. 

Read more here. 

Latest News:

Commercial vehicle platform 91Trucks raises $5M in Series A round led by Arkam Ventures

Commercial vehicle platform 91Trucks has raised $5 million in Series A round led by Arkam Ventures, with participation from existing investors Titan Capital Winners Fund, Sparrow Capital, and Atrium Angels. The funds will be used to expand the company's product and technology capabilities, scale its team, and expand its offline retail footprint to over 20 stores, 91Trucks said in a statement. 

“Over 55% CV (commercial vehicle) sales in India comprise of small commercial vehicles, primarily used for last-mile delivery and owned by small fleet owners and driver operators. We are on a mission to organise and grow this segment. We are building a full-stack platform for fleet operators, removing the existing frictions plaguing the CV industry," said Siddharth Sharma, CEO & Cofounder, 91Trucks.

"In the last two years, our revenue has grown by 8x and, with this funding, we will accelerate our physical footprint across Tier II and III cities, invest in technology particularly in AI, and strengthen our team,” he added.

Read more here. 

General Catalyst backs PB Fintech’s new health unit with $218M investment

General Catalyst has led a $218 million (Rs 1,816 crore) seed funding round in PB Healthcare Services, the newly-launched healthcare subsidiary of PB Fintech, the parent company of PolicyBazaar, said the company in a statement.

The round marks one of the largest early-stage capital infusions into India’s private healthcare delivery sector and saw participation from PB Fintech and other external investors. In a stock exchange filing last week, PB Fintech disclosed that it invested Rs 539.4 crore in the round by subscribing to 5.39 crore compulsory convertible preference shares (CCPS) at Rs 100 each.

Following completion of the fundraising, PB Fintech’s stake in PB Health will be diluted from 100% to 32.14% on a fully-diluted basis. The round also includes the establishment of an employee stock option pool.

The proceeds will be used to set up a 1,000-bed hospital network in the Delhi National Capital Region and invest in product development and technology, the company said.

Read more here. 

Funding news:

CodeAnt AI raises $2M to revolutionise code review with AI

CodeAnt AI, an AI-powered code reviewer, has raised $2 million in seed funding to help engineering teams cut manual code review time and software bugs by over 50%.

The round was led by Y Combinator, Uncorrelated Ventures, and VitalStage Ventures, with participation from DeVC, Transpose Platform, Entrepreneur First, and several prominent angel investors.

CodeAnt AI is transforming the traditionally manual and time-consuming process of code review by embedding artificial intelligence directly into the software development workflow. By integrating across IDEs, pull requests, and CI/CD pipelines, it automates tasks like summarising changes, flagging issues, suggesting one-click fixes, and continuously scanning for code quality concerns such as duplication, complexity, and missing documentation. On the security front, it monitors infrastructure, code, and dependencies in real time, detecting vulnerabilities and exposed secrets to help maintain enterprise-grade security.

Already trusted by over 50 companies—including Akasa Air, Cyient, Bureau, KukuFM, and several Fortune 1000 enterprises—CodeAnt AI also supports on-premise deployment for clients with stringent data governance needs. Its platform empowers engineering teams to move faster without compromising code quality or security.

Vaya raises $1.5M to modernise vedic astrology with AI

Vaya, an AI-powered Vedic astrology startup, has raised $1.5 million in seed funding to deliver culturally attuned, tech-enabled astrology services to India’s mass premium urban audience.

The funding will support team expansion, AI enhancement, and community-building among vetted Vedic astrology practitioners, as the company aims to reimagine astrology for modern India.

The round was co-led by Accel and Arkam Ventures, with participation from Weekend Fund and notable angel investors including Softbank’s Sumer Juneja and Sarthak Mishra, Darwinbox Co-founder Rohit C, and Legacy Ventures.

Founded by Maahin Puri and Nitesh Kumar Niranjan—former product and engineering leads at travel-tech startup Atlys—Vaya combines AI with expert human astrologers to offer personalised, nuanced consultations.

Feline Spirits raises Rs 5.2 Cr from IPV to expand premium craft alcohol portfolio

Feline Spirits, a homegrown craft alcoholic beverage brand, has raised Rs 5.2 crore in a funding round led by Inflection Point Ventures (IPV). The capital will support the company’s expansion into new geographies and further strengthen its premium product portfolio.

Founded by Prabhat Sharma (CEO) and Rohit Saxena (COO), the company merges the expertise of a third-generation master blender with modern consumer insights to create high-end yet approachable spirits. By combining traditional distillation with contemporary trends in flavor and branding, Feline Spirits has built a strong identity in India’s evolving alcohol market. The brand is currently active across eight states and union territories, with a customer base of over 20 lakh.

In FY23–24, the company achieved a monthly top-line of over 2 lakh bottles (10,303 cases) and revenue exceeding Rs 11 crore. This momentum continued into FY24–25, with over 4.1 lakh bottles (19,751 cases) sold, generating more than Rs 25 crore in sales. Feline Spirits has secured operating licenses in eight markets—five of which are government-run—positioning the brand for steady nationwide growth.

GoTrust secures Pre-Seed funding to scale privacy compliance platform

GoTrust, a next-generation privacy compliance and data governance startup, has closed its pre-seed funding round led by Aevitas Capital Private Limited, with participation from a prominent Indian actor and entrepreneur.

Though the investment amount remains undisclosed, the funds will be used to accelerate product development, grow the team, and expand the company’s presence in domestic and global markets.

Positioned at the forefront of data protection, GoTrust offers an integrated platform that simplifies regulatory compliance for businesses navigating complex privacy laws like GDPR, CCPA, HIPAA, and India’s DPDPA.

Its core capabilities include automated data discovery, consent and preference management, DSR automation, third-party risk management, centralised policy updates, and a compliance tracking runbook for Data Protection Officers.

Designed for seamless integration with existing systems, GoTrust replaces fragmented manual processes with a secure, scalable solution that reduces compliance risk, streamlines operations, and enhances customer trust in the digital age.

Avaana Capital leads $1.2M seed round in High Time Foods to support India launch

High Time Foods, a food-tech startup developing shelf-stable, plant-based protein products, has raised $1.2 million in a seed round led by Avaana Capital, with participation from existing investors.

Founded by Aakash Shah and Damian Felchlin, the company draws on expertise in cloud kitchens, foodservice, and international food trade to create non-refrigerated, protein-rich ingredients suited for institutional kitchens and manufacturing.

With a formal launch in India, High Time Foods aims to meet rising protein demand and build a locally rooted, next-generation food brand.

The new funding will support product development, team expansion, and strategic partnerships across India, the US, and emerging markets in the Global South. Early collaborations include a planned rollout with Vasantha Bhavan, a longstanding restaurant chain in Tamil Nadu.

Zebu secures $1M to fast-track counter-drone systems for Indian Armed Forces

Zebu, a defense-tech startup specialising in counter-drone and unmanned systems for the armed forces, has raised $1 million in a pre-series A round led by Bluehill VC.

The funding will support the development of four mission-critical drones for the Indian armed forces, fast-tracking them from prototype to battlefield deployment. These products include the IAF Net Drone for hostile drone neutralization, a Sea Surface Combat and Rescue Drone for the Indian Coast Guard, a Swarm-enabled Combat Drone for the IAF, and a Tethered Surveillance Drone for Army border patrols.

Zebu plans to accelerate field testing and production readiness of these systems, aiming to become a key supplier to the Indian armed forces. The company is also preparing for a $5 million funding round for further integration and international market expansion.

Founded in 2021 by Santosh Balajee Banisetty, Zebu has made significant breakthroughs in unmanned systems, including setting a Guinness World Record in 2024 for the longest drone endurance under 5kg. Zebu's IAF Net Capture Drone, capable of trapping hostile drones mid-air, has advanced to radar integration and military-grade certification. The company is also in discussions with a leading defense manufacturer to supply its drones.

High Times Foods raises $1.2M led by Avaana Capital

High Time Foods, a food tech startup has raised $1.2 million in a seed round of funding led by Avaana Capital. This startup makes non-refrigerated plant-based protein food. 

High Time Foods will use this capital towards product development, and talent acquisition and build partnerships across India, the US, and other geographies. It has a distribution partnership with Sysco, one of the leading food service providers in the US.

High Time Foods Co-founder and CEO Aakash Shah said, “We’re launching at a very affordable price point, and as we scale, we’ll be cheaper than conventional protein, including meat. We aim to build from India the largest plant-based food company in the world—ensuring everyone everywhere can access quality protein.” 

High Time Foods’ products are built for institutional kitchens. The product works as an ingredient that's packed with protein, doesn't require refrigeration, and can be used across Indian and global formats.

Other news

Astrikos.Ai appoints four senior executives to accelerate next phase of expansion

Astrikos.Ai, an AI-driven infrastructure intelligence company, has strengthened its leadership team with four new senior appointments to support its next growth phase.

Nani Iswara joins as Head of Operations for North America, bringing 30+ years of experience across telecom, IT, and operations from firms like Nokia and New York Life Insurance.

Tapabrata Mitra, based in Bangalore, becomes SVP of Engineering, with expertise in cybersecurity and AI/ML-driven industrial automation, having led engineering teams at CBNITS and Capgemini.

Cdr Nikhil Hegde, a former Naval Officer with over two decades in defense procurement and international collaboration, takes over as SVP, Defense Business. Ali Sadhik Shaik joins as SVP of Product Management and Market Strategy, with 20 years in SaaS, product leadership, and startup operations across sectors like FinTech and Web3.

Astrikos.Ai, a global provider of AI/ML-driven infrastructure analytics, is revolutionising sectors like digital cities, smart utilities, data centers, and healthcare infrastructure, enhancing efficiency and sustainability for governments and enterprises.

Aerem and OMC Power collaborate to drive rooftop solar solutions for MSMEs in UP

Aerem Solutions and OMC Power have partnered to facilitate Rs 200 crore in financing for rooftop solar adoption among MSMEs in Uttar Pradesh, aiming to drive clean energy transition and sustainable economic growth in underserved regions.

Under the agreement, Aerem—through its RBI-licensed solar-focused NBFC, NetZero Finance—will provide credit access to OMC Power’s customers, enabling easier investment in solar systems. The collaboration leverages Aerem’s end-to-end solar platform and financing expertise, alongside OMC Power’s grassroots operational presence, to address key barriers in distributed solar deployment.

Aerem, which has financed over 800 projects and enabled more than 800 MW of solar capacity, also operates SunStore, a B2B marketplace for solar equipment. This initiative reflects both companies’ commitment to advancing climate-resilient infrastructure and expanding solar access for India’s MSMEs.

Rilox EV partners with Hala Mobility to deploy 20,000 electric 2Ws across India

Rilox EV has entered into a multi-year OEM partnership with Hala Mobility to deploy 20,000 electric 2Ws, beginning with low-speed models and extending to high-speed variants.

The partnership aims to roll out around 400 vehicles monthly, focusing on premium, fleet-optimized models for high-usage environments. Rilox EV’s Spark Elite 2W, known for its durability, safety, and performance, will be deployed to cater to gig workers, urban commuters, and fleet operators.

This collaboration represents a shared vision for a cleaner, smarter, and more connected mobility ecosystem, combining Rilox EV’s engineering and service expertise with Hala Mobility’s operational and technological capabilities.

(The story will be updated)