India’s startup ecosystem continues to witness strong investor interest, with fresh seed rounds announced across FMCG and biotech. Alongside funding activity, the broader business landscape saw major developments from a mutual fund deepening its stake in Paytm, to fintech lender Kissht filing for an INR 1,000 crore IPO, and Karnataka passing a landmark welfare bill for gig workers. Here’s your quick roundup of the top funding deals and key business news in India today.
Daily Indian Funding Roundup – 20 August 2025
| Company | Amount | Round / Type | Lead investor(s) |
|---|---|---|---|
| Mithila Foods | ₹1.5 crore | Seed | AJVC (Aviral Bhatnagar) |
| PeelON | $1 million | Seed | growX Ventures |
Mithila Foods raises INR 1.5 crore seed from AJVC
FMCG startup Mithila Foods, based in Dumka, Jharkhand, has secured INR 1.5 crore in a seed round from AJVC, the investment firm founded by Aviral Bhatnagar. The company plans to use the funds to strengthen distribution, streamline its supply chain, and scale its Bihar-origin product portfolio, which includes sattu and makhana.
PeelON secures $1 million seed led by growX Ventures
Bio-tech startup PeelON, which develops compostable packaging solutions, has raised $1 million in seed funding. The round was led by growX Ventures, with participation from Boston Venture Group and Clean Energy Venture Group. Headquartered in Visakhapatnam, the company will channel the funds towards R&D, production, and expanding its commercial presence in both India and the United States.
Key Business News for 20 August 2025
Motilal Oswal Mutual Fund Raises Stake in Paytm Parent to 5.15%
Motilal Oswal Mutual Fund has increased its holding in One97 Communications Ltd (the parent company of Paytm), acquiring an additional 26.31 lakh shares across more than 20 of its schemes, including the Nifty Midcap Fund and ELSS Tax Saver Fund. This raised its stake by 0.41 percentage points, pushing the total to 5.15 %. Following the disclosure, Paytm’s share price climbed to a 52-week high of INR 1,238, reflecting renewed investor confidence amid the company’s recent Q1 FY26 turnaround.
Kissht Files DRHP to Raise INR 1,000 Crore via Fresh Issue
Fintech lender Kissht (operated by OnEMI Technology Solutions) has submitted its DRHP (Draft Red Herring Prospectus) to SEBI for an initial public offer, aiming to raise INR 1,000 crore through a fresh issue. Existing investors—including Vertex Ventures, Ventureast, Endiya Partners, AION Advisory, and Ammar Sdn Bhd—are planning to sell approximately 8.8 million shares via an offer-for-sale.
Of the proceeds, INR 750 crore will be infused into its NBFC subsidiary Si Creva Capital, with the remaining INR 250 crore earmarked for general corporate purposes. The company is also exploring a pre-IPO placement of up to ₹200 crore, which could reduce the size of the public issue.
Karnataka Assembly Passes Platform-Based Gig Workers Welfare Bill
The Karnataka Legislative Assembly has passed the Platform-Based Gig Workers (Social Security and Welfare) Bill, 2025, replacing an earlier ordinance. The legislation mandates that gig-aggregator platforms must provide social security, occupational health, and safety benefits to gig workers.
Key provisions include:
- Establishment of a Gig Workers Welfare Board to manage a Gig Workers Welfare Fund.
- Aggregators may collect a 1% to 5% welfare fee from customers per transaction to finance the fund.
- Mandatory registration of both gig workers and aggregators with the Board.
- A structured dispute resolution mechanism and safeguards to prevent unjust terminations.
The bill is viewed as a significant stride toward regulating India’s rapidly expanding gig economy, projected to reach 23.5 million workers by 2029-30.
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