Zeno Health’s Innovation, Zomato’s New Policy, and Getepay Gets RBI’s Approval

The Indian startup world is going through a roller-coaster ride in the last few years. There were successes, there were failures and there were stories of corruption. One such story came up in today’s edition - collapse of Builder.ai

Builder.ai, once valued at over $1 billion, filed for insolvency. This is a classic case of how companies are using AI-buzzword to create the hype cycle and FOMO among investors. It’s the bubble with builder.ai created for itself, which exploded yesterday.

It all started when Builder.ai pitched their “AI-powered assembly line”, which promised to revolutionize software development by making it faster and cheaper for non-technical users. The idea was easily sold to companies and investors. Their core offering was called Natasha, which in reality was a BPO wrapped in a good-looking UI. This was the classic case of AI-washing, where companies tag human-led services as AI to get higher valuations.

Their AI-hype marketing gimmick caught attention of some of the large VC funds, such as Softbank, Microsoft and Qatar Investment Authority. It raised more than $500 million from them. Despite raising so much money, the company was left with just $7 million in their account, as of March 2025. The founders were also manipulating financials of the company. Its 2023 revenues were significantly reinstated, and 2024 projections were slashed from $220 million to $55 million. They had unpaid AWS and Azure bills to the tune of $100 million. The other red flag included usage of personally-connected auditors and rapid switching of audit firms for overseas subsidiaries.

The ballon started busting when CEO Sachin Dev Duggal stepped down (while retaining “Chief Wizard” role) and the new CEO, Manpreet Ratia, struggled to stabilize the company. The final nail in the coffin was when its lender, Viola Credit, seized $37 million of funds.

The collapse of Builder.ai will have several implications in the Indian startup ecosystem. It is a wake-up call for Indian AI startups which are relying too heavily on storytelling without working product. Investors will now demand more of technical audits, rather than listening to over-ambitious business plans. Might also lead to a temporary cooling-off investor appetite for pure-play "AI-first" startups. But for India’s real AI builders, it’s also a clearing of the noise and now they can work on “actual” AI products!

Grab your simmering cup of StartupChai.in and unwind with our hand-brewed memes.

“Ab Bas Isi Ki Kami Thi”: Zomato Starts Levying New ‘Service Charge’ For Long Distance Deliveries

Zomato has introduced a new “long distance service fee” of ₹15 for deliveries between 4–6 km on orders above ₹150.

The company says this move helps manage rising logistics costs, especially as demand spreads beyond urban cores. It also assured partners that overall service fees, including this new charge, will be capped at 30%.

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“I Am The Doctor”: Zeno Health Rolls Out Platform To Support Early Stage Healthcare Startups

Zeno Health is playing startup doctor with its new platform, Pay It Forward—a launchpad for early-stage healthcare ventures.

From diagnostics to hygiene, it’s offering a wellness boost to startups across the spectrum. Backed by Lightbox, this move signals serious support for the next gen of health innovators.

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“Humari Bhi Haan Hai”: Getepay Gets RBI Nod To Operate As Online Payment Aggregator

Getepay just bagged the RBI’s final nod to operate as an online Payment Aggregator—big news for Bharat’s small businesses.

With a sharp focus on SMEs in Tier 2, Tier 3, and rural regions, the platform is gearing up to go full throttle. Think easier digital payments, wider merchant services, and a serious push toward financial inclusion.

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“Kya Se Kya Ho Gaya, Bewafa”: Microsoft-Backed Builder.ai To File For Bankruptcy

Builder.ai, once hailed as a no-code unicorn and backed by Microsoft, is now heading into bankruptcy.

With creditors seizing most of its funds, the company’s down to a few million in cash and an administrator stepping in. A dramatic fall for a startup that once promised to simplify app development for the world.

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1. 360 ONE Asset has launched a ₹500 Cr VC fund to fuel India’s early-stage startups, from idea to IPO. With four bets already placed, it's diving headfirst into the country’s growing innovation wave.
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2. Alt Carbon has raised a record-breaking $12 Mn seed round to supercharge its mission of decarbonizing agriculture in the Global South. With cutting-edge tech and bold climate goals, it’s positioning India at the forefront of carbon removal innovation.
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3. Kolkata-based Data Sutram has secured $9 Mn in Series A funding to sharpen its fraud detection tools for the BFSI sector. Backed by Lightspeed and B Capital, the startup is now betting big on product and team expansion despite widening losses.
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4. Indore-based hyperlocal app Shuru has raised undisclosed Series A funding led by Krafton India to deepen its neighbourhood-first social media play. With 1 crore installs and 2 million monthly users, it’s fast becoming India’s digital nukkad.
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“Ek Tiffin Karega Kranti”: TintBox Reinvented Glassware for India

TintBox is what happens when a daily tiffin mishap sparks a design revolution—think chic, shatter-resistant glassware with a conscience.

Started by a Chennai-based father-daughter duo, the brand blends borosilicate durability with silicone style to fight plastic, one lunchbox at a time. With Shark Tank buzz, celeb fans, and 1.5 lakh users on board, TintBox is making sustainability a kitchen shelf essential.

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