From record-breaking startup funding and small business innovation to market trends and tech breakthroughs, here’s your essential roundup of India’s business, economic, and technology landscape last week.
1. India’s GDP Growth Remains Resilient Despite Global Headwinds
India’s economy posted a robust 7.4% growth in Q4 of FY25, with the full-year GDP expanding by 6.5%. This growth comes despite global economic uncertainty, signaling the country’s underlying economic resilience. Key drivers included high government capital spending, a record GST collection in April (Rs 2.37 lakh crore), and a contraction in imports, which helped boost net indirect taxes and GDP figures2. While the growth rate is slightly below the 6.5% estimate, economists remain optimistic about India’s economic trajectory for FY25.
2. Stock Markets End May on a Bullish Note, Nifty Outperforms Sensex
The Indian stock market closed May on a positive note, with the Nifty 50 outperforming the Sensex. Nifty gained nearly 2% (438 points) in May, closing at 24,750.70, while the Sensex ended at 81,451.01, up by 1.18%. Both foreign and domestic institutional investors made significant inflows—FIIs invested Rs 11,773 crore and DIIs pumped in Rs 67,642 crore during May, reflecting strong investor confidence. The upcoming RBI policy outcome and Q4 results are expected to influence market sentiment in early June.
3. Small Business Lending Gets a Boost: Saarathi Finance Raises $57 Million
Mumbai-based Saarathi Finance, founded in 2024, raised $57 million (₹475 crore) to support small businesses in semi-urban and rural India. By leveraging technology and flexible lending models, Saarathi aims to address the credit gap for entrepreneurs in underserved regions. The funding round, led by TVS Capital Funds and others, values the company at over ₹900 crore and highlights the growing investor interest in financial inclusion and grassroots entrepreneurship.
4. Citykart Secures $63 Million to Expand Affordable Fashion in Tier-II and Tier-III Cities
Citykart, a Gurugram-based retail startup, raised $63 million (₹538 crore) in Series B funding to expand its affordable fashion offerings in India’s smaller cities. The company focuses on providing trendy clothing, footwear, and home products to middle-class families in underserved markets. Investors TPG NewQuest and A91 Partners co-led the round, signaling confidence in the potential of India’s non-metro retail sector.
5. Snabbit Raises $19 Million to Revolutionize Home Services Delivery
Snabbit, a Mumbai-based home services app, secured $19 million in funding to scale its rapid-response home cleaning and maintenance services. Launched in 2024, Snabbit promises trained workers at your doorstep in 10–15 minutes. The new capital, from Lightspeed, Elevation Capital, and Nexus Venture Partners, will help expand its offerings and workforce, addressing the growing demand for reliable home services in urban India.
6. Fleetx Bags $13.2 Million to Drive AI-Powered Logistics Optimization
Gurugram-based Fleetx, a logistics and fleet management startup, raised $13.2 million (Rs 113 crore) to enhance its AI-driven solutions for logistics companies. The funding, led by IndiaMART Intermesh and BEENEXT’s Accelerate Fund, will support product expansion and market penetration, helping logistics operators optimize vehicle usage, fuel efficiency, and delivery times.
7. Manufacturing PMI Drops to Three-Month Low, But Sector Remains Robust
India’s HSBC Manufacturing Purchasing Managers’ Index (PMI) slipped to 57.6 in May, marking its first decline in three months. While this indicates a slight cooling in manufacturing activity, the sector remains in expansion mode, supported by strong domestic demand and government initiatives. Analysts expect manufacturing to remain a key pillar of growth, especially as new policies and incentives take hold.
8. Royal Enfield and Hero MotoCorp Report Strong Sales Growth in May
Royal Enfield posted a 26% surge in sales for May, selling 89,429 units, with domestic sales up 19% and exports soaring 82%. Hero MotoCorp also reported a 2% year-on-year increase, selling 507,701 units. The robust sales figures reflect continued consumer demand for two-wheelers and positive sentiment in both domestic and international markets.
9. Record Startup Funding: Over $599 Million Raised in One Week
Between May 5 and May 10, Indian startups raised a staggering $599 million across 27 deals, a significant jump from the previous week’s $102 million. Healthtech led the way, with PB Health securing $350 million, while deeptech, AI, electric mobility, and fintech startups also attracted major investments. The trend points to a maturing ecosystem focused on sustainable growth and global relevance.
10. PB Healthcare Services Secures ₹1,462 Crore in Seed Funding
PB Healthcare Services, a new entrant in digital health, raised ₹1,462 crore in seed funding from PB Fintech. The Gurgaon-based company aims to transform India’s healthcare delivery with AI-powered diagnostics and a rural-focused approach, highlighting the growing investor interest in healthtech innovation.
11. Ace Designers Gets ₹1,200 Crore to Boost Indian Manufacturing
Ace Designers, a leading machine tool manufacturer, received ₹1,200 crore in funding from Kotak Alternate Asset Managers. The Bangalore-based company plans to use the funds to enhance manufacturing capabilities and expand into new markets, supporting India’s push for self-reliance in industrial production.
12. India Emerges as the World’s Fourth-Largest LNG Market
India has become the fourth-largest market for liquefied natural gas (LNG) globally in 2024, according to TotalEnergies CEO Patrick Pouyanne. The French energy giant has invested nearly $5 billion in India over the past five years, focusing on gas infrastructure and renewables. TotalEnergies plans further expansion, encouraged by the Indian government’s push for cleaner energy.
13. Government Capital Spending Jumps 33% in Q4, Driving Growth
Central government capital expenditure surged by 33.1% year-on-year in Q4 FY25, compared to just 1% growth in the previous nine months. This sharp increase in public investment has been a key driver of economic growth, supporting infrastructure development and job creation across the country.
14. Foreign and Domestic Investors Show Strong Confidence in Indian Equities
May 2025 saw the highest foreign institutional investor (FII) buying of the year, with inflows of Rs 11,773 crore. Domestic institutional investors (DIIs) also invested heavily, with Rs 67,642 crore in May alone. This surge in investment has helped lift the Indian stock market, despite global uncertainties.
15. RBI Expected to Cut Rates as Bond Yields Fall
Indian government bond yields edged lower, with the benchmark 10-year yield dropping to 6.2132%. The market is anticipating a 25-basis-point rate cut from the Reserve Bank of India (RBI), with the policy decision expected on June 6. Lower rates are likely to boost borrowing and investment across sectors.
16. India’s Health Insurance Sector Faces Growth and Profitability Challenges
Once a growth leader, India’s health insurance industry now faces structural challenges, including overestimation of the addressable market, rising competition, and increasing claim costs. Investors are advised to focus on resilient segments like third-party administrators (TPAs) and diversified insurers.
17. Digital Literacy Improves, But Gender Gap in Mobile Ownership Persists
Digital literacy in India has improved significantly, but a large gender gap remains in rural areas. While 81.2% of men in rural India own a mobile phone, only 56.9% of women do. Bridging this gap is crucial for inclusive digital growth and economic participation.
18. India and Chile Push for Coamprehensive Economic Partnership Agreement
India and Chile are advancing negotiations for a Comprehensive Economic Partnership Agreement (CEPA), aiming to conclude talks by 2026. The next round of negotiations is expected in July-August 2025, with both countries seeking to boost trade and investment ties.
19. Indian Airlines Face 2025 Headwinds, Cautious Optimism Ahead
Airlines in India and globally have revised down their traffic and profit forecasts for 2025, citing economic headwinds. Despite these challenges, industry leaders remain optimistic about the sector’s resilience, as airlines continue to adapt to changing market conditions.
20. Small Businesses and Startups Drive Innovation and Inclusion
The past week saw a surge in small business and startup activity, with new ventures in fintech, home services, logistics, and healthtech attracting major funding. Startups like Saarathi Finance and Snabbit are using technology to address real-world problems, from financial inclusion to rapid home service delivery. This trend highlights the vital role of small businesses and startups in driving innovation, job creation, and inclusive growth across India.
Conclusion
From robust GDP growth and record-breaking startup funding to surging small business innovation and strong investor confidence, the week of May 26 to June 1, 2025, showcased India’s dynamic business landscape. As the country continues to navigate global headwinds and domestic challenges, its entrepreneurs, investors, and policymakers are laying the foundation for sustainable growth and technological leadership.
Stay tuned to nextbusiness24.com for more in-depth coverage of India’s business, tech, and startup ecosystem.
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