Indian AI startup funding is gaining momentum, with Peak XV Partners, Lightspeed, General Catalyst and other venture capital firms in advanced discussions to invest in at least six startups, according to Moneycontrol.
The companies include ventures founded by former Zomato executive Rinshul Chandra and startups Erid Bio, Spark Labs, Dvar AI, Blackbird and Pathnovo. Individual fundraising rounds are reportedly ranging from around $3 million to $10 million.
The proposed investments span AI agents, enterprise software, biotechnology and AI-enabled drug discovery, reflecting investor interest in specialised applications rather than only foundational AI models.
Ex-Zomato executive Rinshul Chandra seeks $8-10 million
Peak XV Partners is in advanced discussions to invest $8 million to $10 million in an AI startup being built by former Zomato chief operating officer Rinshul Chandra, alongside Lightspeed and Blume Venture Partners, Moneycontrol reported.
Chandra’s venture is developing AI agents focused primarily on merchants, while also serving consumers. The agents are intended to interact with consumer-facing AI assistants and handle business requests, transactions and other tasks.
The approach differs from AI concierge products that primarily help consumers complete tasks. Chandra’s startup aims to build agents that enable businesses to respond to requests and transact through these AI systems.
Peak XV explores investments in Spark Labs and Erid Bio
Peak XV is also in discussions to invest around $4 million to $6 million in Spark Labs, alongside other investors, according to the report.
Separately, Peak XV and General Catalyst are in advanced talks to invest approximately $3 million in Erid Bio. The startup combines artificial intelligence with laboratory technology to design and test biological molecules for potential applications in drugs and biotechnology.
A source cited by Moneycontrol said Erid Bio was being valued at around $30 million during the ongoing discussions.
Peak XV has also been active in other AI-focused deals. Earlier reports cited by Moneycontrol said the firm was investing $20 million in Empirical Machines, a startup founded by a former OpenAI researcher, alongside Mettle Capital. Peak XV and Blume have also invested in an AI venture founded by Dunzo co-founder Kabeer Biswas.
General Catalyst considers $4 million investment in Dvar AI
General Catalyst is separately in advanced discussions to invest around $4 million in Dvar AI, according to people cited by Moneycontrol.
Dvar AI works with Indian enterprises to deploy artificial intelligence models. It fine-tunes open-weight models using customer data and hosts them on Indian infrastructure, allowing businesses to customise AI systems for their requirements.
The proposed investment would add to General Catalyst’s reported discussions around Erid Bio, extending its potential exposure to both enterprise AI deployment and biotechnology applications.
Activate targets Blackbird and Pathnovo
Activate, a $105 million venture capital fund founded by Aakrit Vaish and Pratyush Choudhury, is in advanced discussions to invest in Blackbird and Pathnovo.
Both startups are reportedly seeking around $4 million each.
Activate is expected to invest in Blackbird alongside Stellaris Venture Partners. For Pathnovo, the fund is likely to partner with other investors.
Pathnovo operates in AI-native software and engineering, developing agentic workflows and automation solutions.
Indian AI funding expands across specialised applications
The reported deals add to a broader pipeline of AI-focused fundraising in India. Moneycontrol has also reported that MStack AI was seeking around $30 million, with the possibility of increasing its round to $40 million to $50 million. Simplismart was separately reported to be assembling a $50 million funding round.
The latest discussions cover several segments, from merchant-focused AI agents and enterprise deployment to AI-assisted biological research and engineering software.
However, the investments remain at the discussion stage, and the reported amounts and valuations may change before deals are finalised. The developments point to continued investor interest in Indian AI applications, even as the country’s ecosystem remains smaller than the US market in terms of overall funding and company scale.
