Fifth Indian startups had a big week, raising $587 million in 27 deals. That’s a nine times increase over the $54.7 million won by 15 startups the week before. As the activity continued to unfold, Porter popped up as the second unicorn of 2025. Yet the reality is still very mixed, with many startups struggling, rapid changes in market competitiveness and future trends.

Funding and Market Performance

Though it still faces many hurdles, the Indian startup ecosystem is booming. Thirteen of them appreciated last week, between 0.01% and almost 22% in the larger set of thirty-three new-age tech stocks. On the flip side, 20 stocks ended the week lower, with losses between 0.02% and around 13%. ideaForge became the top gainer, despite posting its third consecutive quarter of losses in Q4 FY25.

The recent heightened India-Pakistan tensions have added strife, and in turn, uncertainty to the markets. This unfavorable geopolitical milieu has helped draw new-age tech stocks toward a fear-inducing bearish territory, changing the investor mood.

Startup Successes and Challenges

Porter’s entry into the unicorn club would be a welcomed shot in the arm for the beleaguered logistics sector. At the same time, BeastLife, created by YouTube influencer Gaurav Taneja, has been disrupting India’s health and nutrition industry. The company recently reported that it has crossed INR 50 Cr in annual GMV and INR 35 Cr in gross sales. In a remarkable accomplishment, it reached EBITDA profitability in its inaugural year (FY25). BeastLife aims to address the most common protein deficiency that affects most Indians. The global market for alternative protein solutions alone is expected to exceed $10 billion by 2030.

Not all startups are thriving. Unfortunately, BluSmart is now hitting dire financial straits. Accordingly, a court has forced it to seize and move 129 of its EVs to another state. The Delhi High Court passed this directive after a petition was filed by lender STCI Finance. Specifically, they want to recover INR 11.25 Cr worth damages from defendant Gensol and prevent the creation of any third-party rights for the EVs at issue.

Governance and Market Reactions

Accounting scandals from popular startups, such as BluSmart and GoMechanic, have led to heightened vigilance from investors and auditors alike. There is an emerging agreement that the guardrails that currently exist around raising money must be reinforced to create a healthier ecosystem for all and protect those in it. The new emphasis is on promoting sustainable development instead of just going for broke unicorn-style.

Following new geopolitical tensions, ixigo has halted flight and hotel reservations to Turkey, China, and Azerbaijan. That decision came on the heels of these countries’ show of unity with Pakistan in the wake of India’s cross-border military strikes. This decision is indicative of the degree to which businesses may be able to wield international relations and the resulting effects on how markets operate.