The Startup Cleanup, Peak XV Exits MobiKwik, and Reliance Invests in Data Center

For a long time, startup money in India behaved like flexible capital. Not in theory. In practice.

Founders bought high-end apartments and SUVs. Companies funded luxury offsites with little business value. Marketing blurred into personal branding. In some cases, money raised for growth ended up in speculative investments or personal assets.

Everyone knew. Few questioned it. And for a while, it worked.

The 2021 boom brought in $42 billion. Capital was easy, boards were passive, and growth was the only metric that mattered. As long as GMV rose and the next round looked likely, how money was used stayed in the background.

Then the cycle flipped.

Funding dropped to $11.3 billion in 2023 and only reached $13 billion by 2025. Shutdowns hit 28 in a year. Suddenly, companies had to explain burn, margins, and governance. That is when the cracks showed.

BharatPe, Byju’s, GoMechanic, Trell. Different stories, same pattern.

Weak controls. Passive boards. Founder-heavy decisions. And in some cases, clear misuse of funds. What looked isolated started to look systemic.

That is where the DPIIT’s 2026 framework steps in. This is not a policy tweak. It is a behaviour correction.

The core rule is simple. Money raised for a purpose must be used for that purpose. No diversion into luxury assets, speculative bets or non-core spending. Every rupee now leaves a trail, and that trail is auditable.

That changes daily operations.

The old playbook rewarded speed. Raise fast, spend fast, grow fast. The new one rewards clarity. Dedicated accounts, real-time ERPs, tighter boards, stronger CFOs. Compliance is no longer a back-office task. It is central.

At the same time, capital is being redirected, not restricted.

Deep-tech startups now get a 20-year window and a higher ₹300 crore ceiling because their journeys are longer. A semiconductor startup cannot be judged like a D2C brand running ads.

There is a trade-off.

More audits mean more friction. Compliance costs may rise 12–15 percent. Founders may become cautious if every experiment risks being flagged as “non-core.”

Still, this reset was inevitable.

The Angel Tax removal made it easier for money to enter. The DPIIT framework now decides how it is used.

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.

“Apun Toh Chala”: Peak XV Exits MobiKwik With ₹130 Cr Block Deal

Peak XV has quietly exited MobiKwik with a ₹130 Cr block deal, selling 6.08 Mn shares at ₹214 apiece.

The stake found takers in institutional names like Florintree, Viridian, Dymon Asia, and Karma Capital, signaling steady appetite despite muted buzz. With this move, Peak XV Partners has now fully closed its chapter in the listed fintech.

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“Ho Raha Bharat Nirman”: Reliance To Invest $17 Bn To Set Up 1.5 GW Data Centre Cluster In Visakhapatnam

Reliance Industries is planning a massive $17 Bn push to build a 1.5 GW data centre cluster in Visakhapatnam, powered by a 9,000 MW solar-plus-storage setup.

The project will span 935 acres in two phases, with 300 acres kicking things off and the rest scaling later. It’s set to become India’s largest data centre investment yet, aligning with the state’s 6 GW ambition.

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“Modi Hai Toh Mumkin Hai”: Centre Mulls Sovereign Cloud Mandate For Critical Sectors

The Centre is weighing a sovereign cloud mandate that could require critical sectors like energy, telecom, and finance to run core systems on ‘Made-in-India’ infrastructure.

The push comes amid rising geopolitical and cybersecurity concerns, with a clear intent to reduce reliance on foreign cloud providers. If implemented, it would give the government tighter oversight of sensitive data and digital rails across industries.

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1. Mojro has added $2.5 Mn (₹23 Cr) to its Series A, taking the total round to $5.5 Mn with backing from Dallas Venture Capital. The fresh funds will fuel global expansion and product innovation.

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2. Credilio has raised ₹100 Cr at a ₹300 Cr valuation to scale novio, its FD-backed, UPI-first credit card play targeting underpenetrated Tier II–V markets. The model sidesteps traditional underwriting by linking cards to fixed deposits, widening access where banks hesitate.

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3. D2C label House of Chikankari has raised ₹25 Cr in a Series A led by Cap Alpha Ventures to scale its omnichannel play. The brand plans to expand its product range, deepen offline retail presence, and push global growth.

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4. HyugaLife has raised ₹100 Cr in a round led by IvyCap Ventures with participation from First Bridge Fund. The startup plans to double down on AI-led personalisation, expand its dark store network, and move into offline retail.

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5. Snabbit has raised $56 Mn (₹527 Cr) in a Series D round co-led by Susquehanna, Mirae Asset, and Bertelsmann, with backing from Nexus, Lightspeed, and FJ Labs. The fundraise comes just six months after its last round, taking total capital to $112 Mn.

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6. Morphing Machines has raised ₹42 Cr to close its Series A at ₹80 Cr, with backing from Hero Enterprise, Colossa WomenFirst Fund, and Navam Venture Fund. The capital will go into building its first production chip, advancing testing, and pushing pilot deployments.

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