Indian startup funding slumps 27% MoM to $630M in May, even as Rapido bags $240M Series F

May 2026 funding fell to $630M, down 27.2% MoM and 45% YoY, despite Rapido's $240M Series F and Skyroot's $60M raise. Bengaluru captured 65% of capital; fintech led sectors at $97M. Zepto secured SEBI IPO nod, Emami took 60% in InCut Digital, while 680 layoffs at Apna Mart and others signal cautious investor mood.

— Filed Mon, 1 Jun, 2026, 11:45 IST · Source Entrackr · Newsletter · Updated

Indian startup funding fell 27% MoM to $630M in May 2026, driven by Rapido's $240M round. Zepto got SEBI IPO nod; Emami acquired InCut Digital; Wingreens bought Safe Harvest. Layoffs hit Apna Mart and others amid cautious investor sentiment.

Why this matters

Rapido's $240M Series F at a $3B valuation cements its rise over Ola as Uber's top India rival, following CCI's dismissal of predatory pricing claims, even as broader funding contracts.

Retail-company signals steady at 1,527 over 90 days, with capital concentrating in fewer, larger rounds.

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