Startup news and updates: Daily roundup (January 28, 2025)

From Boston-based restaurant management software Toast, which went public in 2021 at a valuation above $30 billion, to Innov8, a provider of flex spaces owned by OYO, raising Rs 110 crore in a primary funding round at a valuation of Rs 1,000 crore, YourStory brings today’s headlines that highlight the latest developments across sectors.

Featured stories:

The billion-dollar AI opportunity in Vertical SaaS

Boston-based restaurant management software Toast went public in 2021 at a valuation above $30 billion, just a decade after its founders initially launched the platform as a consumer-facing restaurant app.

This was possible as the firm later decided to start selling restaurant point-of-sale (POS) solutions, ultimately becoming a multi-product software. It decided to switch its core product from solving a particular problem for restaurants, i.e., collecting customer payments, to pivoting to offering a back-of-house management system–serving as the finest example of the verticalisation of SaaS.

By embedding payments, lending, payroll, and other related features, Toast is now at $1.5 billion ARR and drives 80% of its revenue from financial technology solutions. In simpler terms, Vertical SaaS (VSaaS) is software built specifically for certain industries, providing tools that meet the needs of sectors like healthcare, retail, fitness, or finance.

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MMT’s bet on new initiatives helped its turnaround: Group CEO Rajesh Magow

MakeMyTrip' s focus on corporate travel and new business lines has helped make up for the growth opportunity lost to the pandemic, according to top leadership. The Gurugram-headquartered online travel platform will now look at destination-specific activities and experiences in addition to strengthening its new business verticals.

The company also has a presence for international flight booking in the UAE and has been scaling direct contracting for international hotels of late. The Nasdaq-listed company, which has staged a comeback with expansion into new categories including corporate travel, will continue to bet big on the new initiatives, which have been set into motion since 2021 onwards, even as its retail flights and hotels business continues to grow significantly.

OYO's Innov8 raises Rs 110 Cr at Rs 1,000 Cr valuation

Innov8, a provider of flex spaces owned by OYO, has raised Rs 110 crore in a primary funding round, at a valuation of Rs 1,000 crore. The capital raise, which saw the company dilute 10% of its equity, was oversubscribed 2.7 times, signalling strong investor interest, the company said.

Family offices, including those of Mankind Pharma, Gauri Khan, Rupa Group, and Jagruti Dalmia, led the round, contributing 55% of the total funding. The funding process was facilitated by InCred. The New Delhi-based company plans to use the funds to double its co-working centres in India to 100 this year.

The funds will also aid acquisitions, technology upgrades, and partnerships. Innov8 recently launched two centres in Mumbai, located at Navi Mumbai and Andheri, each spanning 1 lakh square feet, with a capacity of 3,000 seats—making them the company’s largest facilities till date.

Funding news:

ThinkMetal raises $800K pre-Series A funding led by YourNest Venture Capital

ThinkMetal, a DeepTech startup transforming metal part manufacturing through its advanced Metal Fused Additive Manufacturing (MFAM) technology, has raised $800,000 (Rs 6.7 crore) in a pre-Series A funding round.

The round was led by YourNest Venture Capital under the YourNest-SanchiConnect Velocity Program 2024, an accelerator for high-growth startups, with co-investors including BSE-listed Concept Communications Ltd and Sanchi Connect.

The funds will be used to finalise production readiness and launch the first-generation product, SistemT1, while expanding the FuseX material line-up to include SS 316, 17-4PH, Pure Copper, and later Tool Steels and Ceramics. It also aims to enhance its software capabilities, refine processes, and strengthen its team across sales, operations, design, and software development.

Founded in March 2021 by Sabyasachi Ghosh and Arushi Sharma, ThinkMetal revolutionises manufacturing with SistemT1, a compact 3D printer that produces metal parts 10 times faster and at half the cost.

Powered by patented materials and processes, SistemT1 integrates 3D printing, debinding, and sintering into just two pieces of equipment, significantly reducing turnaround times and capital expenditures. While traditional methods take 2–4 weeks and cost around ₹1.25 Lacs to produce metal parts like moulds, dies, jigs, and prototypes, SistemT1 delivers them in hours at half the cost, making it a game-changer for manufacturers.

MedMitra AI secures Rs 3 Cr in pre-Seed funding

MedMitra AI, a healthtech platform specialising in autonomous AI agents for healthcare, has secured Rs 3 crore in a Pre-Seed funding round co-led by All In Capital, WEH Ventures, and angel investors Dr. Rohan Khandelwal, Pawan Gupta, and Venkat Subramanyam.

The funding will be used to expand the team, accelerate the development of AI-powered solutions, and strengthen the platform's market presence.

MedMitra AI, founded by Shivangi Sharma and Dr. Anushka Sharma in 2023, integrates multimodal data processing to improve diagnosis, treatment, and prognosis across various healthcare settings, with a focus on General Medicine, its super-specialties, and chronic care.

The platform aims to reduce the burden on India's overworked doctors, enhance clinical outcomes, and improve the quality of care. In addition, it plans to release a specialized version of the platform for medical students, enhancing learning and better preparing them for clinical practice.

Origin Fresh raises $1M in pre-Seed round led by Aeravti Ventures

Bangalore-based premium fresh produce brand, Origin Fresh, has raised $1 million in pre-Seed funding, led by Aeravti Ventures, with additional investments from a group of Ultra HNIs.

The funds will support the expansion of its delivery network and infrastructure development. Origin Fresh aims to become an omnichannel brand, with an e-commerce platform and plans to expand to 200 supermarkets in Bangalore and Chennai by next year.

With a commitment to farm-to-table freshness, Origin Fresh eliminates middlemen to offer pure, untouched produce at lower prices. The brand has already surpassed 5,000 orders within the first 40 days and enjoys strong customer loyalty, with over 60% repeat orders within two weeks.

Focused solely on fresh produce, Origin Fresh offers over 250 items, including exotic varieties, and provides next-morning delivery, setting it apart from competitors.

Other news:

Anq launches RuPay On-The-Go on X Card for seamless transit

Anq Digital Finserv, in collaboration with Pine Labs and NPCI, launched the RuPay On-The-Go feature on its flagship product, the ‘Anq X Card.’

This feature enables seamless access to metros, buses, and parking, bypassing queues and enabling cashless payments, aligning with the government’s vision of a digitally empowered India.

By providing a unified payment solution for transportation, the Anq X Card simplifies commuting for millions, promoting financial inclusion and advancing India’s digital transformation goals.

Anq X Card aims to empower users nationwide to access public transportation systems while earning rewards for every purchase. Co-branded with Pine Labs, it offers over 90% of credit card features, helping users build wealth with every spend.

Ekatva Group signs marquee rental deal worth more than Rs 200 crore with IPO-bound Infra.Market

Infra.Market, a building materials platform, has signed a 20-year lease agreement with Ekatva Group for the landmark Olethia Business Spaces property in Wagle Estate.

Spanning 70,000 square feet, the deal is expected to generate over Rs 200 crore in rental income for Ekatva Group. Infra.Market and its group companies will register the first three floors in January 2025 and the remaining five in March 2025, consolidating all operations under one roof.

This marks the first instance of an entire building in the area being leased to a single entity, highlighting Ekatva Group’s ability to meet the evolving needs of premium business clients with quality, innovation, and customer-centricity.

Elever launches quant-based Portfolio Management Services (PMS) to deliver consistent Alpha to investors

SEBI-registered wealth-tech platform Elever has launched its new Portfolio Management Services (PMS) to deliver consistent, long-term returns through a quant-based investment approach.

By combining data-driven insights, rule-based models, factor investing strategies, and tactical quant methods, Elever aims to enhance portfolio performance with superior risk-adjusted returns.

Its PMS responds to the underperformance of traditional active money management, with large-cap funds underperforming benchmarks in 13 out of the past 18 years, and mid-cap funds facing similar challenges since the mid-2010s.

Elever’s PMS offers four tailored schemes to meet diverse investor needs: FactorAlpha PMS for all-weather performance, FactorAlpha SmallCap PMS for small-cap potential, FactorShields PMS for risk-conscious stability, and FactorIncome PMS for steady income and inflation-beating returns.

Founded in 2020 by Anshul Sharan, Karan Aggarwal, Ram Subramaniam, and Santosh R., Bengaluru-based Elever leverages rule-based investing and machine learning to generate sustainable alpha, targeting Rs 1,000 crore in AUM within the next two years.

CRED launches e₹ wallet in partnership with RBI

CRED has launched a beta version of its e₹ wallet in collaboration with the Reserve Bank of India (RBI) and YES BANK as the sponsor bank, becoming the first fintech platform to implement RBI's Central Bank Digital Currency (CBDC).

The e₹ wallet combines the security of a sovereign currency with CRED's seamless payments experience. CRED members, after completing video KYC, can create and load their wallets via UPI, with transaction limits of Rs 10,000 per transfer and Rs 50,000 daily, and a storage limit of Rs 1 lakh.

The wallet supports zero-cost merchant transactions and will soon offer programmable merchant payments, CRED Pay integration, and PIN-less transactions for amounts under ₹500. Access to all CRED members is expected in the coming months.

SmartWinnr onboards Indian Army Veteran Keats Das as Chief of Staff

SmartWinnr, a provider of AI-powered sales enablement solutions, has appointed Keats Das as Chief of Staff to drive its growth initiatives. With over two decades of leadership experience in the Indian Army and a strong background in learning and development, Keats will focus on expanding SmartWinnr's presence in India and emerging markets.

In his new role, he will optimise organisational functions, align sales efforts with growth objectives, and drive strategic initiatives, particularly in the life sciences and BFSI sectors. Keats' expertise in digital transformation and strategic operations will be instrumental in scaling SmartWinnr's AI-driven solutions.

He has a distinguished military career, including pioneering the Agnipath Recruitment Scheme and automating recruitment workflows, reducing lead times by 60%. Keats holds an MBA from the Indian School of Business, is a Dean's Lister, and is certified in Project Management Professional (PMP) and Lean Six Sigma.

He is also a certified international trainer with the United Nations, with extensive experience designing training programs for multinational teams.

Channel Factory expands in India with New Development Center in Pune

Channel Factory, an AI-powered advertising solution for YouTube and other platforms, is expanding its presence in India with the opening of a development center in Pune and the appointment of Amit Rathi as Managing Director for India.

A key Google partner under the YouTube Measurement Program (YTMP), Channel Factory is redefining brand suitability and performance for advertisers worldwide.

The new Pune center will leverage advanced AI to optimise contextual targeting, ensuring ads appear next to content that aligns with brand values, enhancing audience engagement and maximising ROI. With a focus on ethical, effective contextual targeting, Channel Factory ensures ads are placed on brand-safe, contextually relevant content across platforms like YouTube, CTV, Meta, and TikTok.

The company operates in 31 countries, offering IAB standard category lists and customised content options in 49+ languages, while promoting sustainability, diversity, and positive content to create a healthier digital ecosystem.

Curefoods invests in Dras Ice to strengthen frozen logistics

Curefoods, an F&B house of brands founded by Ankit Nagori in 2020, has strategically invested in Dras Ice, a contaminant-free packaged ice solutions.

This investment will leverage its robust frozen chain logistics to enhance distribution for Curefoods’ cloud kitchens and quick-service restaurants (QSRs). Dras Ice caters to industries like HORECA, modern trade, and Q-commerce, offering premium-quality, safe, and reliable ice solutions.

Recently, Curefoods acquired the South and West India operations of Krispy Kreme from Landmark Group, expanding its portfolio in India’s foodservice market. With over 500 cloud kitchens and offline stores across 40 cities, Curefoods houses brands like EatFit, CakeZone, Nomad Pizza, Sharief Bhai Biryani, and Frozen Bottle, offering more than 10 cuisines.

Paytm launches QR Widget for instant payment collection on android home screens

One97 Communications Limited (OCL), owner of the Paytm brand and a payments and financial services in India, has launched the innovative 'Receive Money QR Widget' for Android users, enabling them to display their QR code directly on their home screen for seamless payment collection without opening the app.

The widget simplifies payment processes for influencers, shopkeepers, freelancers, delivery partners, and small businesses. Users can easily add the widget via the Paytm app and benefit from a distinct coin-drop notification sound for real-time payment alerts.

Paytm continues to enhance user convenience with features like UPI ID creation, self-account transfers, peer-to-peer transactions, and online and offline payments. It also supports UPI Lite for small-value transactions, RuPay Credit Card linking on UPI, and an auto-pay service.

Expanding globally, Paytm enables UPI payments in the UAE, Singapore, France, Mauritius, Bhutan, Sri Lanka, and Nepal, demonstrating its commitment to user-centric innovation.

(This article will be updated with the latest news throughout the day.)