AI Startup Challenges, Swiggy Shuts SaaS Platform, and Pine Labs’ New CFO

Many startups kick off by addressing a problem, but AI startups instead start with a particular function in mind. Instead of asking “What pain point are we solving?”, a lot of today’s AI founders are asking, “what task can we automate?” And that difference is more important than it used to be.

Let’s take a closer look at the wave of generative AI startups flooding the market. Many of them don’t solve a deep problem. They offer a shortcut such as automating cold emails, summarising meetings, writing blogs, generating DMs, designing banners, etc. And in most cases, the user still has to guide the output, clean it up, verify it, and figure out what to do next. These startups are building tools that are helpful, but not complete. They assist, but they don’t own.

Now imagine the opposite. Imagine a startup that doesn’t stop at generating cold emails, but also tracks which ones were opened, follows up automatically, updates the CRM, books the meeting, and suggests the next best action. That’s no longer a feature. That’s a full function. And owning the full function is where real value gets created.

Take the example of Notion AI. It didn’t stop at adding an AI writing assistant. It turned Notion into a connected workspace - notes, tasks, wikis, docs - all in one place, with AI powering smart summaries, automatic formatting, task extraction, and project tracking. The user doesn’t leave the tool, because Notion owns the flow.

Another example is Descript. It started as an audio and video editor powered by transcription. But now, you can record, edit, overdub, add subtitles, remove filler words, and publish, all in one place. That’s a complete function: from recording to publishing, without switching tools.

Now, we’re starting to see Indian startups make similar moves.

Look at Pepper Content, which began as a content marketplace. But now, it is building a full suite AI-assisted ideation, brief creation, plagiarism check, writer onboarding, real-time editing, and even analytics. It is not automating a part of writing. It’s trying to own the content marketing function from start to finish.

Another example is Descript. It started as an audio and video editor. But now, you can record, edit, overdub, add subtitles, remove filler words, and publish - all in one place. That’s a complete function: from recording to publishing, without switching tools.

Or even Yellow.ai, which started as a chatbot tool, but now offers conversational AI across channels - voice, chat, email - with integration into CRMs, payment systems, and analytics tools. They are not solving "chat". They are owning customer engagement across touchpoints.

AI startups that stop at one function often get swallowed by larger platforms. Calendly has competition from Google Calendar. Meeting summarisation tools are being added directly to Zoom and Google Meet.

If your product is only a feature, someone bigger will absorb it. But if you own the full function, if your product becomes the default place where a job gets done, then you are no longer replaceable.

Of course, this is harder. Building end-to-end workflows takes time, integrations, deep user research, and real problem-solving. But it also builds deeper moats and better retention.

This is where, we think Indian AI startups must focus. Many early products today are wrappers around OpenAI or Anthropic APIs. They rely on fancy UI and prompt engineering. But the user still has to do the hard work of stitching different pieces together. And that’s where the opportunity lies.

Founders need to ask: can we become the go-to place for hiring, not resume parsing? For sales, not email drafting? For video marketing, not video generation?

So, what should AI founders in India do next?

First, think deeper than the first task. Build the end-to-end workflow. Automate, yes, but also orchestrate. Second, focus on outcomes. Your job is not to suggest five options. It’s to help the user succeed. Third, look beyond wrappers. If you’re only skin-deep, someone else can replicate you overnight.

Lastly, make sure you’re building for a clear persona. Tools that try to serve everyone - student, marketer, founder, HR head - often end up delighting no one.

AI isn’t about showing off what the model can do. It’s about solving what the user wants done. The real winners won’t be those with the best demos. They’ll be the ones who make work disappear. And that’s the shift Indian AI startups need to make - from building assistants to becoming owners of the function.

Let’s go through what else is happening in Indian startup world - Grab your simmering cup of StartupChai.in and unwind with our hand-brewed memes.

“Aana Jaana Apne Haath Mein Thode Likha Hai Dost”: After Suspending Genie, Swiggy To Shut SaaS Platform Minis

Swiggy is pulling the plug on its SaaS venture Minis by August 10, just months after shelving its Genie service.

The platform had let brands run mini-storefronts on Swiggy, but declining revenues seem to have soured the recipe. With a 40% YoY revenue dip, the foodtech major is quietly scaling back its “platform innovations” menu.

Read more here

“Bondhu Ebar Khela Hobe”: Kissht Kicks Off IPO Journey, Converts Into Public Entity

Fintech player Kissht is gearing up for the bourse as it officially switched to a public limited company on June 17.

The move is a legal must-do for startups eyeing a spot on India’s stock exchanges. With IPO dreams on the horizon, Kissht just took its first big step toward going public.

Read more here

“Aaiye Aapka Intezaar Tha”: Pine Labs To Appoint Avendus Capital’s Sameer Kamath As CFO

Pine Labs is bringing in financial heavyweight Sameer Kamath from Avendus Capital as its new CFO, just as it preps for its IPO.

With over 20 years in the financial services game, Kamath’s résumé boasts big names like Motilal Oswal and RPG. The move comes right after its Singapore-based CFO Marc Mathenz stepped down, signaling a reshuffle ahead of the DRHP filing.

Read more here

“Sab Changa Si”: Centre Mandates Fixed EV Targets For Ride Hailing Aggregators

The Centre has rolled out fixed EV adoption targets for ride-hailing giants under the new Motor Vehicle Aggregator Guidelines 2025.

States or air quality regulators will decide these targets, tightening the green reins on Ola, Uber, and friends. In a quirky twist, the policy also nudges aggregators to tap private motorcycles, not usually meant for commercial use, for their fleets.

Read more here

1. Bengaluru-based Loopworm has raised $3.3 Mn to scale its recombinant protein tech and build a new production facility. Backed by WaterBridge and Japan’s Enrission, the startup blends biotech with bugs to power next-gen animal feeds.
   Read more here

2. Bengaluru-based deeptech startup CIMware has bagged $2.3 Mn in its first funding round to supercharge hardware production and grow its software team. Its CIM units promise smarter data centre management by pooling compute, storage, and networking into one sleek control plane.
   Read more here

3. Sustainable packaging startup Bambrew has raised ₹90 Cr in a round led by Ashok Goel and Japan’s Enrission India Capital. The funds will fuel global expansion and ramp up innovation in eco-friendly meta-materials.
   Read more here

4. IORA Ecological Solutions has secured ₹8.5 Cr in debt from Caspian Debt to boost its nature-based climate solutions. The funds will support ecosystem conservation and carbon mitigation projects across India.
   Read more here

5. Jewelery brand AMAMA has raised $1M from Mistry Ventures to scale operations and deepen its footprint in markets like Delhi and Mumbai. The fresh funds will also go into boosting supply chains, tech, and expanding its design-led offerings.
   Read more here