What Indian VCs want; AI for the modern classroom
Indian VCs call for tailored incentives for deeptech startups, predictable tax and incentive frameworks. Fermi.ai has launched its AI-driven education platform in India and the US. Jinisha Sharma talks about her bets on the WPL team and building a true multi-sport ecosystem.
Hello,
Meet 2026’s first unicorn.
Payments infrastructure provider Juspay raised $50 million in a Series D follow-on investment from WestBridge Capital, valuing the company at $1.2 billion.
The transaction comprises both primary and secondary investments, providing liquidity to early investors and employees holding stock options.
Meanwhile, Zoho is doubling down on its make-in-India mission. The SaaS company launched its ERP technology platform, which will see part of its product development and other activities driven out of Kumbakonam—a small town in Tamil Nadu located about 300 kilometres from the company’s headquarters.
In other news, Urban Company’s foray into the domestic help sector has been a tad expensive this December quarter.
The home services marketplace saw its quarterly revenue grow 32% on the back of Native RO range and home services, even as its loss widened to Rs 21 crore due to heavy investments in the Insta Help vertical.
If this year’s CES innovations are anything to go by, household robots from companies such as LG and Clutterbot could soon be the norm.
Hidden behind the more flashy AI wave, a distinct transformation is taking place in robotics. A new class of technology known as Physical AI is beginning to redefine how machines interact with the world—and Microsoft´s new offerings are serving as a marker for this shift.
In today’s newsletter, we will talk about
- What Indian VCs want
- AI for the modern classroom
- Building a true multi-sport ecosystem
Here’s your trivia for today: What famous inventor proposed to his wife in Morse Code?
Union Budget
What Indian VCs want
India stands on the shoulders of venture capital firms that make bold investments and back passionate founders to ring in the next startup success story. Last year, Indian startups raised $11 billion—the lowest since 2020—with VCs writing fewer but larger checks, signalling a cautious and selective approach.
For this year’s Budget, some of their demands include tailored incentives for deeptech startups, predictable tax and incentive frameworks, as well as continued investment in core infrastructure.
Key takeaways:
- Kunal Khattar, Founder at mobility-focused fund, AdvantEdge, noted that policies should be rolled out to reduce reliance on foreign VCs, and that the government should create stronger incentives for insurance and pension funds to invest in SEBI-registered AIFs.
- Additionally, VCs are also calling for policies to encourage localisation of components and exemptions on critical raw materials for startups.
- VC firms have also noted that the Indian startup ecosystem has reached a stage where the foundations built over the last decade have given rise to consistent and predictable institutional support. The focus now should be on creating globally competitive companies through patient capital and predictable policies.
Top Funding Deals of the Week
Startup: GreenCell Mobility
Amount: $89M
Round: Mezzanine
Startup: Juspay
Amount: $50M
Round: Series D
Startup: Namdev Finvest
Amount: $37M
Round: Debt
Startup
AI for the modern classroom
When schools across the globe shut for the summer holidays, an unusual trend emerges in the digital world. Traffic on ChatGPT begins to plummet. This observation, noted by Peeyush Ranjan, CEO of edtech startup Fermi.ai, highlights an increasing dependence on Gen AI tools by students.
Led by the former Google and Flipkart executive, Fermi.ai has launched its AI-driven education platform in India and the US. The platform aims to keep students engaged in the learning process through reasoning and understanding rather than providing instant answers like typical AI tools.
New learning methods:
- The platform targets high-school STEM subjects beginning with mathematics, physics, and chemistry.
- By providing stepwise coaching and deep analytical insights for both students and teachers, the startup aims to ensure that technology supports thinking rather than replacing it.
- The platform provides an adaptive real-time AI tutor which guides students to the next level of understanding only when they are genuinely stuck.
Sports
Building a true multi-sport ecosystem
Jinisha Sharma is the director of Capri Sports, which owns the UP Warriorz WPL franchise. Celebrating every win, big or small, validates the company’s carefully thought-out decision to back a franchise from Uttar Pradesh.
She is now charting her own journey as she leads the UP Warriorz franchise with the larger vision of investing in women’s cricket and creating purpose-led impact through sport.
News & updates
- Layoffs: Amazon plans a second round of job cuts next week as part of its broader goal of trimming some 30,000 corporate workers. The company in October cut some 14,000 white-collar jobs, about half of the 30,000 target first reported by Reuters.
- Lawsuit: US President Donald Trump sued JPMorgan Chase and its CEO Jamie Dimon for up to $5 billion, alleging the bank improperly cut him off from its financial services. JPMorgan Chase told Axios it believes Trump's suit has "no merit," and will fight the allegations in court.
- Chipmaker: Intel shares plunged 14% Friday after the chipmaker issued lackluster guidance and warned of a supply shortage. During a Q4 earnings call with analysts, CEO Lip-Bu Tan said the company wouldn’t be able to meet full demand for its products. He said production efficiency, or yield, is also below his targets.
What famous inventor proposed to his wife in Morse Code?
Answer: Thomas Edison
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