Startup news and updates: Daily roundup (October 9, 2025)

From Aavishkaar Group partnering with Jamwant Ventures to launch a Rs 500 crore fund to Hala Mobility raising Rs 30 crore in six months through its Hala+ FOCO model to expand its electric vehicle fleet, YourStory brings you today’s headlines with the latest developments across sectors.

Featured stories

From puja rooms to lifestyle fragrances: How IRIS is transforming Indian homes

In 1948, when the late N Ranga Rao began selling incense sticks under the now-iconic Cycle Pure Agarbathi brand from Mysuru; he wasn’t just starting a business, he was shaping the way India smelled. His carefully blended agarbathis (incense sticks) would soon become a ritual essential, finding a place in almost every Indian home.

Seven decades later, that legacy has evolved far beyond the puja room.

The N Ranga Rao and Sons business is now led by 5 cousins from the third generation of the family: Arjun Ranga, Anirudh Ranga, Kiran Ranga, Vishnu Ranga, and Pavan Ranga. Among them, Kiran Ranga, in particular, has taken the family's deep expertise in perfumery and reimagined it for modern lifestyles.

The result is IRIS Home Fragrances, a brand that turns scent into an experience centred around mood, wellness, and modern home decor preferences.“With agarbathis, Cycle was already reaching millions of Indian households,” says Kiran Ranga, Managing Director of IRIS Home Fragrances, the group’s lifestyle and home fragrance division. “But as homes evolved, with air-conditioning, new décor sensibilities, and growing awareness of wellness, we saw an opportunity to extend fragrance beyond rituals, into living spaces.”

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Beyond Silicon Valley: Global corporations expand GCC footprint in India

While companies from the United States dominate the Global Capability Centres (GCC) landscape in India, firms from other regions such as the United Kingdom, Europe, Middle East, Africa, and Asia-Pacific are also increasingly setting up shop in the country.

According to a report by real estate investment advisory firm Colliers, GCCs from the UK, EMEA, and APAC regions have expanded their footprint, steadily strengthening their presence in India.

“Of the estimated 28 million sq.ft of space uptake by GCCs in 2025, around 10% is likely to come from global corporates across APAC countries such as Japan, Australia, Singapore, etc,” it said.

US-based companies have historically led the GCC demand for the country, with office space across the top seven cities accounting for nearly 70% of total absorption since 2021, the firm said. The current trend in the GCC ecosystem mirrors the Indian IT industry, where US firms account for around 60% of the revenue.

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Easy rewards: Gen Z shoppers experiment with co-branded credit cards for ecommerce

Co-branded credit cards are steadily gaining favour with consumers on the lookout for the best deals and rewards, as well as convenience, on their online purchases.

About 65% of co-branded credit card users own cards linked to ecommerce platforms, according to the joint report titled How Urban India Pays, released at the Global Fintech Fest 2025. This preference is accelerating wider credit adoption and reflects the industry's growing focus on this segment.

The evolving interest in credit cards comes as a younger cohort, particularly Gen Z consumers, take advantage of the newly gained financial independence and flock towards experimentation and early financial planning.

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Latest news

Aavishkaar Group partners with Jamwant Ventures to launch Rs 500 Cr fund

Fund management platform Aavishkaar Group has launched OneAavishkaar, a one-stop solution to help drive scale for emerging venture funds. Under OneAavishkaar, the firm has partnered with Jamwant Ventures to launch a Rs 500-crore defence and deeptech focused fund.

Jamwant Ventures was founded in 2023 by former Indian Navy officers, Navneet Kushik and Kartik Gopal along with Jyotsana Dalal. The firm had launched its maiden fund with a target corpus of Rs 40 crore and has invested in companies such as solid rocket propulsion startup Spacefields, aerospace startup Axial Aero, and marine technologies startup AstraYAN.

“Jamwant is one of India’s only veteran-run defence-tech fund. Not only is the founding team themselves from the armed forces, but they have also been on the operational side of things. This is one of the sectors where entrepreneurs will not come seeking money from you if you don’t understand their language,” said Tarun Mehta, Partner, Funds and Strategy at Aavishkaar Capital.

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Funding news

Hala Mobility raises Rs 30 Cr to expand EV fleet through community-led model

Hala Mobility has raised Rs 30 crore in six months through its Hala+ FOCO (Franchise Owned, Company Operated) model to expand its electric vehicle (EV) fleet and support community-led mobility initiatives. Of the planned 6,000 EVs, 2,400 have already been deployed across cities.

The model enables Self-Help Groups (SHGs) and micro-entrepreneurs to operate EV fleets through integrated support covering vehicles, charging infrastructure, financing, insurance, and analytics. Each Rs 1 crore invested generates jobs for over 200 riders and offsets nearly 400 tons of CO₂ annually. Alongside, Hala operates a FOFO (Franchise Owned, Franchise Operated) model, offering franchisees operational tools and training for standardised fleet management.

With investor participation from HNIs and institutions, Hala plans to expand into additional cities, further integrating financing, operations, and recycling within its connected EV ecosystem.

Deeptech startup UGX.ai secures $1 M to scale its smart MES solutions

UGX.ai, a deeptech startup focused on digital transformation in discrete manufacturing, has raised $1 million in seed funding led by Blue Ocean Venture Partners, with participation from DeVC, iSeed, Atrium Ventures, Point One Capital, and several angel investors including Ramakant Sharma (Livspace), Prateek Maheshwari (PhysicsWallah), and Lovleen Bhatia (Edureka), among others.

Founded by Abhishek Kumar, Ankur Singh, Ankit Agarwal, and Prakhar Nigam, alumni of IIT BHU and ISB, the company develops a full-stack Smart MES (Manufacturing Execution System) platform that integrates hardware, middleware, and software to improve connectivity, monitoring, and quality control across manufacturing operations.

UGX.ai’s proprietary Industrial Edge Gateway and protocol library enable machine interoperability, while its applications for MES, machine monitoring, traceability, and vision-based inspection provide data-driven insights for operational efficiency. The company currently works with over 20 enterprise clients in the automotive and electronics sectors and has recorded 5x growth over the past two years as it prepares for global expansion.

Reo.Dev raises $4M seed to expand developer-first intent platform

Reo.Dev, an intent platform for developer-first software companies, has raised $4 million in seed funding led by Heavybit, with participation from India Quotient and Foster Ventures.

The platform interprets developer signals—such as GitHub activity, package installs, and documentation usage—to provide actionable insights for sales, marketing, and RevOps teams, improving pipeline visibility and engagement with technology buyers.

Reo.Dev’s early traction includes over 100 developer-first companies like Chainguard, LangChain, N8N, Temporal, Datahub, and Unstructured, with reported tenfold annual scale and 60% quarter-over-quarter growth. The funding will support workforce expansion, the establishment of a U.S. office, and accelerated product development to enhance GTM workflows and better connect developer activity to revenue outcomes.

Other news

PayU Finance and Swiggy Partner to launch embedded credit for restaurants

PayU Finance, the NBFC arm of PayU, has partnered with Swiggy to launch an embedded credit solution for restaurant partners, addressing financing challenges in the HORECA (Hotel, Restaurant, Catering) sector.

Announced at the Global Fintech Fest 2025, the initiative enables restaurants to access unsecured loans of up to Rs 25 lakhs through the Swiggy Partner app, processed entirely on PayU’s platform. The loans feature an Equated Weekly Installment (EWI) structure starting at 18% per annum, aligned with weekly Swiggy payouts to ease cash flow management.

Using PayU Finance’s data-driven underwriting, credit is extended without extensive documentation, providing faster access to formal financing for restaurants traditionally dependent on informal sources.

Phi Commerce launches AI-Powered real-time fraud detection platform ‘Phi-ter’

At the Global Fintech Fest 2025, Phi Commerce introduced Phi-ter, an AI-driven, omnichannel fraud management system designed to detect and block suspicious transactions within milliseconds—before payments are completed.

Positioned as India’s first enterprise-grade real-time fraud detection platform, Phi-ter operates across both issuing and acquiring networks, covering online, offline, and doorstep transactions. The launch comes amid rising digital fraud, with over 3.6 million incidents and losses exceeding Rs 22,800 crore reported in 2024.

Phi-ter uses AI and machine learning to analyse transaction data, assess behavioral patterns, and make instant risk decisions. Its no-code interface allows risk teams to configure and adjust fraud rules dynamically, while its adaptive engine continuously learns from live data to improve detection accuracy and reduce false positives across domestic and global markets.

Wingify appoints Aarthi Ramamurthy to board to drive AI-led strategy

Wingify, the company behind the digital experience platform VWO, has appointed Aarthi Ramamurthy to its board. Aarthi, general partner at AI-focused early-stage fund Schema Ventures, brings over 15 years of experience in product leadership at companies including Meta, Netflix, Microsoft, and most recently as Chief Product Officer at CommerceHub.

Her expertise in building consumer-facing technology products and AI positions her to collaborate closely with CEO Sparsh Gupta as Wingify advances its AI-driven roadmap. VWO, serving over 3,000 global brands, provides experimentation, personalisation, and behavioral insights to optimise customer experiences, with key markets in the US and Europe.

IG Drones signs MoU with UP Government to boost indigenous defence production

IG Drones, a defence drone and counter-drone systems company, has signed a Memorandum of Understanding with the Government of Uttar Pradesh to establish an Advanced Drone Manufacturing and R&D Facility in the UP Defence Corridor.

The company demonstrated combat readiness during Operation Sindoor with its indigenous Kamikaze FPV drones. Under the MoU, IG Drones will mass-produce armoured FPV Striker drones, targeting 100,000 units annually, with support from the state for approvals and incentives.

Designed and developed entirely in India, these drones aim to enhance tactical capabilities amid evolving security threats, positioning Uttar Pradesh as a hub for indigenous defence innovation and contributing to India’s goal of technological self-reliance in defence.

Blue Dart rolls out digital platform to enable 10-minute business account onboarding

Blue Dart Express Limited has launched its Digital Account Opening (DAO) Journey, a new platform that allows businesses to self-onboard and start shipping within 10 minutes.

The five-step digital process includes profile creation, plan selection, KYC verification, Aadhaar-enabled agreement signing, and prepaid card recharge, after which customers can immediately begin using a Digital Prepaid Card for shipments.

The platform also provides early access to a customer dashboard for managing tools and services, along with options to choose from three predefined or customised shipping plans. Available through the ‘Open Your Account’ section on Blue Dart’s website, the DAO Journey offers an end-to-end digital experience, supported by real-time tracking and a digital welcome kit for new users.

UST acquires Modus Information Systems

UST, a global technology company has acquired Bengaluru headquartered Modus Information Systems for an undisclosed value. This acquisition is expected to strengthen UST’s position in the financial sector. Modus is a core banking implementation partner that primarily serves several banks in India and overseas. 

A statement from UST said the acquisition will strengthen its leadership position in the growing market for core banking software and accelerate the company’s growth strategy by equipping it to serve emerging markets across the Global South. Furthermore, the move aligns with UST’s Banking-as-a-Service utility offering, BanktrUST.

Tally Solutions enters into a partnership with Rukam Capital

Tally Solutions has entered into a partnership with Rukam Capital, an early-stage venture capital firm. This collaboration aims to help early-stage startups through expert mentorship, community engagement, and access to digital tools that drive financial and business efficiency.

Through this partnership, Tally Solutions will extend knowledge sessions, mentorship opportunities, and tailored offerings to startups in Rukam Capital’s portfolio and the larger Bootstrap Foundation community. The collaboration will focus on building startup capabilities in areas such as financial management, compliance, and operational efficiency.

The partnership also includes joint initiatives such as masterclasses, webinars, startup mixers, and pitch days, as well as the co-creation of a quarterly roundtable bringing together founders, mentors, and experts to share insights on scaling businesses effectively.

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