Startup news and updates: daily roundup (September 5, 2025)

From Finance Minister Nirmala Sitharaman unveiling GST 2.0 to Girish Mathrubootham exiting Freshworks, YourStory brings you stories that highlight significant developments across industries.

Featured stories

From soaps to refrigerators, GST cuts promise to supercharge India’s consumption story

Finance Minister Nirmala Sitharaman, who chaired the 56th GST meeting that cleared the much-anticipated GST reform, called it a “Diwali gift” for citizens. Effective September 22, the GST structure will now comprise only two primary slabs—5% and 18%, replacing the earlier four-tier system.

In her announcement, she specifically noted that “items used by the common man and middle class”, including items such as hair oil, bicycles, and kitchenware, would be taxed at 5%.

“The GST cut brings timely relief for households, especially with staples like edible oil. It eases daily expenses while boosting consistent demand. For the industry, it opens room to expand refining, strengthen supply chains, and move towards self-sufficiency—aligning consumer benefit with the broader Make in India vision,” says Sparsh Sachar, FMCG and Business Head, Nutrica, BN Group, in a conversation with YourStory. Read more. 

GST 2.0: What it means for India’s MSMEs

For years, MSMEs have struggled with India’s multi-slab GST system—at 5%, 12%, 18%, and 28%. Often, players were caught in either classification challenges or compliance confusion. 

With GST 2.0, the system has simplified the tax structure for MSMEs under two slabs—at 5% for essential and merit goods, and 18% for standard goods and services. SMBStory asks experts from across industries to weigh in. Read more. 

India wants its AI talent back home. But they won't return easily, caution experts

India is pushing hard on its $12 billion deeptech ambitions in AI and semiconductors, but the biggest hurdle isn’t capital or policy—it’s talent. While world-class researchers and founders in these fields are overwhelmingly Indian, most of them are building careers and companies abroad.

At Semicon India 2025, Stanford Professor Emeritus Arogyaswami Paulraj bluntly noted that while top Chinese academics are returning to China, none have come back to India, highlighting how difficult it is to reverse the brain drain. T.K. Kurien of Premji Invest reinforced the concern, pointing out that though Indian talent is shaping global AI, very little of it is rooted in India.

The data backs this: according to the Institute for Progress, 60% of US-based AI 50 companies were immigrant-founded, with India producing more founders than even China. Examples include Perplexity AI’s Aravind Srinivas and Skild AI’s Deepak Pathak and Abhinav Gupta. Read more.

Latest news

CRED takes on Jar with digital gold rewards and savings feature

CRED has begun testing a gold-savings feature that allows users to invest in digital gold, while offering select members 1% cashback in the asset on bill payments as part of the pilot. The move puts the fintech in direct competition with Jar, the Tiger Global-backed micro-savings app.

Screenshots circulating on social media show CRED crediting up to Rs 50 in 24-karat gold into an in-app wallet. The cashback is part of the pilot phase to test the savings feature, and micro-savings via cashback may not be included in the final offering, a source familiar with the developments told YourStory. Read more. 

Also Read

Startups hail GST cut on insurance for expanding access despite caveats

Girish Mathrubootham to exit Freshworks by December

Girish Mathrubootham, Co-founder of Nasdaq-listed Freshworks and one of the leading voices of India’s SaaS sector, will step down as Executive Chairman of the company effective December 1, 2025.

In a filing with the US SEC, Freshworks said Mathrubootham will focus on Together Fund, the venture capital fund he co-founded. The company also clarified that “Mathrubootham’s resignation was not the result of any disagreement on matters relating to the company’s operations, policies, or practices.”

Founded in 2010 in Chennai, Freshworks grew under Mathrubootham's leadership into a unicorn and became the first Indian startup to list on Nasdaq. He continued to serve as CEO during its growth journey before moving into the Chairman role. Read more. 

OpenAI is building an AI-powered jobs platform to rival LinkedIn

OpenAI is moving beyond ChatGPT and building an AI-powered jobs platform to rival LinkedIn. Fidji Simo, CEO of Applications at OpenAI, has announced the OpenAI Jobs Platform in a blog post.

He also announced the OpenAI Certifications programme, as part of the company’s commitment to making AI skills accessible at scale. The OpenAI Jobs Platform, expected to roll out in mid-2026, will use AI to match businesses with AI-savvy candidates, ranging from enterprise hires to local businesses and governments. Read more. 

Funding news

L Catterton’s India-focused consumer fund raises $200M in first close

Private equity firm L Catterton has raised $200 million in the first close of the firm’s maiden India-focused fund, a source familiar with the matter told YourStory. The company is looking to back growth-stage companies raising Series B rounds and those planning an IPO within a couple of years. It is keeping its cheque size between $25 million and $150 million, including co-investments. Read more.

MonkTrader.ai raises Rs 2.4 Cr in pre-seed funding

MonkTrader.ai, an AI-powered stock discovery and decision-making platform for retail investors, raised Rs 2.4 crore in pre-seed funding led by a group of early-stage investors from India and Singapore with strong expertise in financial markets and technology. 

Founded in 2024, MonkTrader enables users to analyse fundamentals, technical indicators, futuristic themes, sector trends, institutional holdings, and AI-driven insights in one intuitive platform. It will use the funds to accelerate product development, strengthen AI and engineering capabilities, and expand go-to-market initiatives to reach millions of retail investors across India. 

Roadzen raises Rs 40 Cr for India subsidiary

Roadzen Inc., a global leader in AI at the convergence of insurance and mobility, today announced binding commitments for Rs 40 crore (~$4.5 million) in equity financing for its India subsidiary, at Rs 740 crore ($84 million) pre-money valuation on a stand-alone basis. 

The financing values Roadzen’s India subsidiary—which contributes less than 60% of consolidated revenues —at approximately Rs 740 crore ($84 million) pre-money, representing a ~25% premium to the company’s current Nasdaq market capitalisation. Dilution at the subsidiary level is limited to ~5%, with Roadzen retaining ~95% ownership. There is no dilution for shareholders at the Nasdaq-listed parent company.

Dectrocel raises Rs 4 Cr funding led by IAN Group-powered BioAngels

Dectrocel, a healthtech company developing AI-powered diagnostic solutions, raised Rs 4 crore in recent funding led by IAN Group-powered BioAngels, with participation from PadUp Ventures and Vinners. Key investors from IAN in this round include Nitin Zamre, Samir Kalia, and Mitesh Shah. 

It will use the fresh capital to scale Dectrocel’s commercial operations across India, enhance its self-learning foundational multimodal AI technology, expand into international markets, and accelerate the launch of its upcoming AI tools in CT /MRI/PET-CT and HPB diagnostic modules.

Headquartered in Lucknow, Dectrocel launched its flagship product, DecXpert—one of only three AI-based diagnostic tools approved by the Central Drugs Standard Control Organisation (CDSCO) for clinical use in India.

Other news

Digantara and ispace partner to establish cislunar situational awareness and domain infrastructure

Spacetech startup Digantara and ispace, inc., a Japan-based global lunar exploration company, have partnered to establish a cislunar situational awareness and domain infrastructure.

The announcement was made in Tokyo alongside the 15th Annual India–Japan Summit between Prime Minister Narendra Modi and Prime Minister Shigeru Ishiba, underscoring how government-to-government ties are being reinforced by private-sector leadership in space.

Building on the legacy of India’s Chandrayaan missions, the upcoming ISRO–JAXA Lunar Polar Exploration (LuPEX) mission, and ispace’s pioneering commercial lunar missions, this collaboration marks a turning point in Asia’s lunar ambitions.

(The copy will be updated with the latest news throughout the day.)