Startup news and updates: Daily roundup (October 16, 2025)

From Weya AI reimagining enterprise customer support, to India’s answer to Shein, YourStory brings today’s headlines that highlight significant developments across industries. 

Featured stories 

Weya AI reimagines enterprise customer support through voice-first AI agents 

Noida-based conversational AI startup Weya AI has developed intelligent, memory-driven agents that handle customer interactions across voice, WhatsApp, and email. Founded in December 2024 by Hasan Ali, Atul Singh and Himanshu Tiwari, Weya AI mostly focuses on the BFSI sector, serving banks, BBFCs, and fintechs where customer communication is crucial. 

Weya AI supports 10 Indian languages, and 26 global languages for clients in the UAE, Australia, Indonesia and the US. The startup’s client list includes Kotak Mahindra Bank, TVS Motors, and Cars24 Australia. 

Read here. 

India’s answer to Shein 

Founded in 2022, Bengaluru-based NEWME aims to disrupt fast fashion in India with the help of data and technology. The company aims to cater exclusively to GenZ without falling into the industry’s biggest trap—overproduction. 

With a team of 200 employees across Bengaluru, Mumbai, and Guangzhou in China, NEWME aims to predict emerging trends before global leaders like Zara, while keeping overproduction at bay. Founded by Sumit Jasoria, Himanshu Chaudhary, Vinod Naik, and Shivam Tripathi, NEWME currently offers 13,0000 live styles, priced between Rs 199 and Rs 2199, and has served more than 1.7 million customers, with a close to 50% retention rate. 

The brand has 14 physical stores and soon plans to expand to the Middle East and Southeast Asia.

Read here. 

Funding news 

FireAI raises Rs 4 Cr in seed round 

AI-powered business intelligence startup FireAI has raised Rs 4 crore in seed funding round led by Inflection Point Ventures. The freshly raised funds will be used for developing products, proprietary ETL tools, enhancing scalability, speed,and end-user experience, and for notable innovations like Casual Chain and Text-to-SQL capability. Additionally, the funds will be used to hire tech professionals and expand to newer markets. 

Founded by Vipul Prakash, FireAI currently operates in Dubai, Abu Dhabi, Africa and Kenya as a certified OEM vendor. 

RARA Barefoot raised $500K 

Homegrown performance footwear startup RARA Barefoot has raised $500,000 in its pre-seed round. Founders and senior operators from Zomato, Urban Company, Tata 1mg, Shyft, HexaHealth, ChrysCapital and BCG have participated in the round. RARA Barefoot also announced the launch of its debut sneaker line. 

Founded in 2024 by Varun Mimani and Manas Tripathi, the startup will use the freshly raised funds for its D2C rollout, and to establish offline retail partnerships, and scale local manufacturing.  

Flowatt Battery raises Rs 2.2 Cr led by PedalStart

Flowatt Battery Science, a Bengaluru-based deeptech startup, has raised Rs 2.2 crore in a pre-seed funding round led by PedalStart. The startup said it will largely use this capital towards technology development and completing the proof-of-concept (POC) of its electric battery. It will also utilise these funds to build alliances with insurers, EV financiers, OEMs and also for hiring.

Flowatt leverages IoT-enabled tracking and data analytics along with predictive maintenance and asset management to optimise battery performance and cost-efficiency for last-mile delivery fleets. Flowatt aims to deploy over 20k high-performance batteries under its BaaS offering, achieve over Rs 2.5 crore monthly recurring revenue (MRR), and expand to 15-plus cities across Tier I and Tier II India by the end of FY 2026-27.

Other news 

ETO Motors partners with APCRDA to launch EVs in Amaravati 

Hyderabad-based ETO Motors has signed a MoU with APCRDA to launch  electric three-wheelers to increase the connectivity in the capital region of Andhra Pradesh. These EVs will be fully run by women pilots. 

The programme is designed not only to enhance last-mile connectivity but also to create employment opportunities and micro-entrepreneurship for women and marginalised communities. 

As a part of the MoU, ETO Motors will integrate electric three-wheelers, four-wheelers, and shuttle buses, to ensure affordable, efficient and non-polluting public mobility. In the first phase, the company plans to deploy 300 electric three-wheelers, 100 electric cars, and 20 electric shuttle buses. 

Snabbit moves headquarters to Bengaluru 

Mumbai-incorporated Snabbit has moved its headquarters to Bengaluru’s Koramangala to position itself at the centre of India’s startup ecosystem. The quick-service app that provides trained and verified domestic help in 10 mins, also announced the appointment of senior leadership across product and technology verticals. 

The company has hired Ishan Kansal as Head of Product and Ankit Srivastava as Head of Technology. These developments are a part of Snabbit’s wider expansion plan across technology, product, growth, and operations verticals. The company plans to double its workforce by next year. 

Nykaa and Snapchat partner to launch GenZ Beauty Creator Incubator programme 

Leading beauty and lifestyle ecommerce platform Nykaa has collaborated with messaging platform Snapchat to launch Nykaa Snap Star Beauty Incubator Program—an initiative aimed to champion a new generation of creators. 

A carefully curated group of emerging creators from across India will be brought together and nurtured with platform support from Snapchat and beauty expertise from Nykaa. Each creator will have the tools, access, and creative freedom to build standout content across categories like makeup, skincare, fragrance, and personal care.

Simple Energy enters ecommerce, partners with Amazon and Flipkart 

Simple Energy has partnered with Amazon India and Flipkart, marking its entry into ecommerce. The Bengaluru-based company will sell its electric scooters—Simple One Gen 1.5 and Simple OneS, online. Customers can now browse, book, and receive doorstep delivery through both platforms. 

To celebrate the festive season, the company is offering discounts of up to Rs 16,434 on Amazon, and Rs 7,500 on Flipkart, along with additional bank offers and no-cost EMI options. Simple Energy currently operates 57 showrooms across India and plans to expand to 150 stores and 200 service centres nationwide by FY2026, enhancing accessibility to EV ownership.

Lightrock partially exits Porter, reaffirms long-term partnership 

Global investment platform Lightrock has announced a partial exit from its investment in on-demand logistics startup Porter, through its Lightrock Growth Fund I ($900 million). Since partnering in 2020, Lightrock has supported Porter’s expansion across three countries, enabling it to streamline intra-city logistics for millions of MSMEs through a tech-driven marketplace that improves driver utilisation and reduces inefficiencies. 

While welcoming new investors, Lightrock reaffirmed its long-term commitment to Porter’s next phase of growth, focusing on technological innovation, operational excellence, and sustainable practices. 

Uber and AI InBev India partner to promote responsible celebrations 

Uber and AB InBev India have launched ‘Your Night, Our Ride’, a festive season campaign aimed at promoting responsible celebrations through safer mobility choices. The initiative rewards patrons who take Uber rides to or from 100 popular pubs and restaurants across Bengaluru and Delhi-NCR with exclusive discounts on beverages and rides.

A recent Uber survey found that 92% of respondents view impaired driving as extremely risky, underscoring the need for safer travel decisions during festive gatherings. Aimed at encouraging safer and more convenient celebrations, this campaign aligns with AB InBev’s ‘Cheers to Moderation’ initiative. 

Rapido partners with Goibibo, redBus, ConfirmTkt to redefine travel 

Leading ride-hailing platform Rapido has partnered with Goibibo, redBus, and ConfirmTkt to launch the country’s first homegrown one-stop travel app, integrating daily rides with long-distance travel bookings. 

Users can now book flights, hotels, buses, and trains directly on the Rapido app, with exclusive discounts such as up to Rs 4,000 on flights, 55% off hotels, and 20% off on bus tickets. 

With a presence in 400-plus cities, Rapido aims to expand to 1,000-plus, targeting Tier II and Tier III markets where consumers prefer all-in-one digital solutions. The move positions Rapido as an affordable, integrated mobility and travel platform for millions of Indians.

Multi-Act Fintech Fund delivers 118% IRR in Raise Fintech (Dhan) exit 

Multi-Act Fintech Fund I announced a partial exit from its investment in Raise Fintech Ventures, operator of the trading platform Dhan, achieving a 40x return and 118% IRR. 

The fund retains 70% of its holding, reaffirming confidence in Dhan’s tech-led growth and leadership. With this, Multi-Act has recorded strong exits from Orbis Financial, Raise Fintech, and NSE, generating Rs 143.4 crore in proceeds on an investment of Rs 13.3 crore. 

Building on Fund I’s success, Multi-Act plans to launch Fintech Fund II, targeting AI-driven fintech and enterprise SaaS for the BFSI sector, expanding beyond consumer fintech into deep-tech infrastructure solutions.

UnboxingBLR launches Namma Bengaluru Challenge ‘26

UnboxingBLR has launched the Namma Bengaluru Challenge 2026, a city-led startup accelerator designed to combat Bengaluru's climate crisis through innovative, pilot-ready solutions.

Launched in partnership with Social Alpha and WTFund and supported by the government of Karnataka and the Greater Bengaluru Authority (GBA), the challenge invites innovators from across India to develop scalable solutions in key areas such as sustainable construction, air pollution, waste management, and water and sanitation.

Selected winners will receive a grant of Rs 25 lakh each to deploy their solutions in Bengaluru, with an opportunity to access an additional Rs 1 crore to scale their innovations. The winning startups will also participate in a six-month pilot programme in collaboration with leading real estate and infrastructure partners in the city.

Mindsprint unveils agentic AI cybersecurity testing platform 

Mindsprint, a technology company, has launched GuardianEye, its proprietary Agentic AI-powered cybersecurity testing platform. According to the company, GuardianEye combines automation with human validation to provide enterprises real-time, on-demand visibility into their external attack surface and critical risks. The platform enables proactive, continuous protection and helps organisations gain contextual visibility of exploitable risks, prioritise high-value remediation, and maintain compliance with evolving regulatory requirements.

The platform offers a range of capabilities, including asset discovery, automated configuration assessments, AI-driven vulnerability detection and correlation, automated exploit validation, and continuous monitoring with audit-ready reporting.

WeWork India launches AI-powered mobile app

Flexible workspace operator WeWork India has launched a new AI-powered mobile app. According to the firm, the app will offer a unified, intuitive platform for workspace discovery, booking, access, and community engagement for both members and non-members.

The new app has features such as digital keycards, on-demand bookings, smart reminders, and AI-powered support. Private Office members can manage bookings, unlock office access, and exclusive features, while All Access members can book desks across locations with ease. It also supports day passes or meeting rooms booking for On-Demand users or non-members, without a subscription.

CoverSure launches firecracker insurance at Rs 5 

CoverSure, a consumer-centric Insurtech platform that helps Indians understand their insurance needs, has announced the launch of Firecracker Insurance for this festive season. Priced at just Rs 5, the short-term plan provides protection against firecracker-related accidents, offering families a simple and affordable safety net to ensure Diwali celebrations remain safe and worry-free.

Recognising the need for short-term, accessible protection, CoverSure’s Firecracker Insurance offers coverage of Rs 50,000 for accidental death, and Rs 10,000 for fire-related burns. This Diwali protection plan offers ten days of instant coverage, which begins the day after the plan is purchased. Customers can purchase the policy on CoverSure platform, ensuring quick and affordable protection during the festive season.

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