Who will build India’s DeepSeek? - Indian Startup News 246

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Welcome to the Backstage with Millionaires weekly Indian startup news show, hosted by Caleb Friesen. This week, multiple Indian AI startups are taking Aravind Srinivas up on his offer, Sridhar Vembu transitions to chief scientist role at Zoho, Zomato appointed Shalin Bhatt to lead their dining-out business, Zepto transitions from licensee to franchise model for dark stores, key investors stepped down from The Good Glamm Group's board, Paras Chopra sold Wingify for $200M, and Indian startups raised $153 million.

Notion database: https://meadow-pillow-7fa.notion.site/BwM-Startup-Funding-Database-303101b874824f4c91fae9fc8ce6d450

This week’s funding: https://meadow-pillow-7fa.notion.site/W5-Q4-FY25-18a08566a360806f9ee5f3552f9d8ea3

Funding over time: https://docs.google.com/spreadsheets/d/10-sWaL38VYz--CqQNMQEwsG9xRBAx3nwOLRKzRD4BkY/edit?gid=0#gid=0

India's Answer to DeepSeek-R1


DeepSeek's R1 model proves AI development is possible with less capital, challenging the notion that only tech giants can build powerful AI models. Aravind Srinivas, CEO of Perplexity AI, offers $1 million and weekly mentorship to teams building open-source AI models under MIT license, with an additional $10 million for beating DeepSeek's benchmarks. Sarvam AI, having raised $41 million, launched a foundational model supporting 10 Indian languages. Smallest.AI claims to have built a superior voice generator, while Futurix launched Shivaay, a 4-billion parameter model. The Indian government is now calling for proposals to build India's own foundational AI model.


Sridhar Vembu Steps Down as CEO of Zoho


Sridhar Vembu transitions to chief scientist role at Zoho, focusing on artificial intelligence and deep research initiatives. Sridhar Vembu maintains his commitment to rural development while leading Zoho's technical advancement in AI capabilities.


Zomato Brings Back Former Exec Shalin Bhatt


Zomato appoints Shalin Bhatt to lead their dining-out business following Sankalp Kathuria's departure. Zomato's District app reaches 6.5 million downloads, becoming their central platform for dining and entertainment services. Zomato's going-out segment revenue increased 3X to ₹259 crore in Q3 FY25. The National Restaurant Association of India raises concerns about Zomato's bundling practices.


Yenmo - Sponsored Segment


Yenmo, a YC-backed fintech startup from Bengaluru, offers loans against mutual funds at 10.5% interest. Yenmo's interest-only payment structure reduces monthly commitments significantly. On a ₹1 lakh loan, users pay ₹875 monthly instead of traditional ₹8,815 EMI. Yenmo charges interest only on utilized amounts and provides quick access to funds for investments or personal needs.


Zepto Switches to Franchise Model


Zepto transitions from licensee to franchise model for dark stores, implementing stricter operational control. Zepto offers 3% commission on gross sales to store operators, requiring ₹83 lakh investment and 35 staff members per store. Zepto enforces strict performance metrics including 90% orders packed within 120 seconds. Zepto plans expansion to 1,200 dark stores by March 2025.


The Good Glamm Group Investors Leave Board


Accel, Bessemer Venture Partners, and Prosus step down from The Good Glamm Group's board of directors amid company challenges including delayed employee salaries.


Paras Chopra Sells Wingify for $200M


Paras Chopra sells bootstrapped A/B testing platform Wingify to Everstone for $200 million. Wingify achieved $50 million in annualized revenue since its 2010 inception.


Indian Startup Funding News


Indian startups raised $153 million this week. Notable raises include: Leap securing $65 million for study abroad services, Astrome Technologies raising $10 million for wireless communication technology, MetaShot receiving ₹11 crore for virtual cricket gaming, ThinkMetal securing $800,000 for 3D printing solutions, and MedMitra raising ₹3 crore for AI-powered healthcare assistance.