Unacademy was worth $3.44 billion in 2021. Five years later, upGrad acquired it in an all-stock deal worth just over $200 million, a fall of roughly 94%. Now its co-founders, Gaurav Munjal and Roman Saini, want to raise ₹700 crore to invest in AI and deep-tech startups. They have reportedly lined up around ₹300 crore in commitments.
It raises a question India's startup industry will increasingly have to answer. When founders fail to deliver returns in their own companies, should investors trust them to manage someone else's money?
Snapdeal offers an interesting precedent. At its peak, it was valued at $6.5 billion. By 2017, it was fighting to survive. Founders Kunal Bahl and Rohit Bansal rejected a sale to Flipkart and kept the business running. They also built Titan Capital, drawing on angel investments they had started making years earlier. One ₹57 lakh investment in Urban Company eventually returned ₹111 crore. Titan went on to raise a ₹333 crore fund from outside investors.
Kushal Bhagia followed another route. After his edtech startup Nayi Disha struggled, he worked at upGrad and later moved into investing. He eventually co-founded All In Capital, which raised around ₹95 crore for its first fund. In the US, Kevin Rose went from Digg's spectacular decline to investment roles at Google Ventures and True Ventures.
A collapsing valuation can destroy investors' wealth, yet leave a founder's contacts and reputation largely intact. That gives former founders a head start in attracting deals and money. But it doesn't make failure a qualification. Titan built credibility through years of personal investments and actual exits, not simply because its founders had survived Snapdeal.
Running a startup and running a fund are different jobs. A founder has to win customers and build a team. A fund manager has to buy stakes at sensible prices, know when to put in more money and, eventually, sell at a profit. At a hypothetical 2% annual fee, a ₹700 crore fund could collect ₹14 crore a year to cover its operations, even before investors see any returns.
Longshot faces another test. Unacademy's founders know online education and consumer businesses. Judging robotics, defence or space startups requires different expertise. With AI funding booming, the danger of overpaying is real.
India has spent years celebrating founders for how much money they raised. Founder-investors deserve a different measure: how much money they return.
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.
“Sapne Dekhe Bade Bade”: Imarticus Learning Eyes Confidential Filing
Imarticus Learning plans to confidentially file its draft papers with SEBI within two to three months for a Rs 1,000 crore IPO.
The proposed issue is larger than its earlier Rs 750 crore plan.
Read more here
“Kuch Daring Karna Hai”: Unacademy Cofounders Plan AI And Deeptech Fund
Unacademy cofounders Gaurav Munjal and Roman Saini are reportedly raising Rs 700 crore for Longshot Capital, a Category II AIF focused on AI, manufacturing, space, defence and robotics startups.
The fund plans to back 25-28 seed and pre-Series A companies with initial cheques of $500,000-$1.5 million.
Read more here
“Kaayde Mein Raho”: Pune Police Seek Rapido's Removal From Google And Apple Stores
Pune Police have asked Google and Apple to remove Rapido from their app stores over alleged unauthorised bike-taxi operations in the city.
An FIR has also been registered against parent company Roppen Transportation Services.
Read more here
“Tareek Pe Tareek”: IRDAI Extends Insurance Distribution Feedback Deadline
IRDAI has extended the deadline for comments on its proposed insurance distribution reforms from October 25 to October 31 after receiving more than 650 responses.
Insurance brokers and insurtechs have opposed the proposals, warning of steep revenue pressure and job losses.
Read more here
“Yeh Apun Ka Isstyle Hai”: Pronto Founder Anjali Sardana Launches Provision Labs
Pronto founder Anjali Sardana has set up Provision Labs, a US-based physical AI venture that will collect real-world data for training and testing AI systems used in robotics and machine-led tasks.
The venture is backed by investors including Lachy Groom, Glade Brook, General Catalyst and Bain Capital Ventures.
Read more here
“Hume Tumse Pyaar Hai”: L Catterton Makes Strategic Investment In Glance
Consumer-focused investment firm L Catterton has made a strategic investment in InMobi-backed Glance for an undisclosed amount.
Glance uses agentic AI to personalise shopping across smartphones, connected televisions and other digital surfaces.
Read more here
“Aayiye Aapka Intezaar Tha”: CheQ Appoints Rupal Rajal As Head Of Human Resources
CheQ has appointed Rupal Rajal as head of human resources. She brings more than 14 years of experience across fintech, technology, AI, SaaS, consulting and FMCG.
Rajal joins as CheQ expands from credit-card bill payments and rewards into new related categories.
Read more here
“Swagat Nahi Karoge Humara”: ReplyAll Brings In Cofounder And CMO
Performance-wear startup ReplyAll has brought in Harmind Singh as cofounder and chief marketing officer.
Singh has previously worked at PhonePe, BookMyShow and Uber.
Read more here
“Guess Karo Hum Kahan Hain”: Wow! Momo Prepares Sri Lanka Entry
Wow! Momo Foods plans to begin operations in Sri Lanka by the end of 2026 through master franchisee Softlogic Corporation.
The company has also identified the US, Malaysia, Australia, Thailand and Canada for expansion over the next 12 months.
Read more here
“Sabka Bhala Ho”: Swiggy Renews Insurance Cover For Delivery Partners
Swiggy has renewed its delivery-partner insurance programme with IndusInd General Insurance. More than 25 lakh partners were covered under its accident and health programmes in FY26.
The renewed policy includes Rs 10 lakh accidental-death cover, hospitalisation cover up to Rs 2 lakh and family health cover up to Rs 1 lakh.
Read more here
“Dhandha Takatak Chal Raha Hai”: Ather Expands Capacity In Hosur And Chhatrapati Sambhajinagar
Ather Energy plans to add 2.25 lakh units of annual production capacity across Hosur and its upcoming AURIC facility in Chhatrapati Sambhajinagar.
Combined installed capacity is targeted to reach about 11.4 lakh units by Q2 FY28.
Read more here
Matiks has raised $10 million in a pre-Series A round led by General Catalyst, with participation from Ronnie Screwvala, Info Edge Ventures, Tanglin Venture Partners and Untitled Ventures.
Read more here
BioStack has raised $9.5 million in a seed round led by Peak XV, with backing from Afore Capital, DCVC, Emerson Collective and others.
Read more here
ReplyAll has raised Rs 9.7 crore in a pre-Series A round led by Sadev Ventures and Atom XVII, with participation from ISV, Long View Ventures, Sparrow, Antler and angels.
Read more here
Bucketlistt.com has raised Rs 7.6 crore in a seed round led by Kairon Capital, with participation from Titan Capital, Divisa Family Office and Kunal Popat.
Read more here
Bengaluru deeptech startup, Paar Autonomy has raised Rs 10 crore in a round led by AdvantEdge Founders.
Read more here
Tradl has raised $4.1 million in seed funding from Nexus Venture Partners, Stellaris Venture Partners and angel investors.
Read more here
