Fundraising is one of the most significant-and difficult-steps of a startup life cycle. Although creative, enthusiastic founders, and expanding markets, the proportion of startups that raise funds remains small. The first step to correct the situation and make the business investor-ready is to understand why startups cannot attract funding. I have spent more than 10 years as an expert in the finance and startup ecosystem and have analysed hundreds of failed and successful fundraising campaigns. The patterns are clear. It is not necessary that most funding gets rejected. Let’s break down the top reasons why startups fail to raise funding, and more importantly, how to fix them.

Top Reasons Startups Fail to Raise Funds: [Fix]

1. Poor Business Valuation

An unrealistic business valuation is one of the most frequent causes of failure in raising money in startups.

Why It Fails

• Overvalued stocks drive away investors.
• No information to support revenues forecasts.
• Founders mix up potential and proof.

When investing in startups, investors consider traction, revenue, market size, and risk. In case your valuation does not match industry standards, it will automatically be a weak pitch.

How to Fix It

• Take a Startup Valuation Calculator to approximate a data-driven valuation.
• Compared to other startups in your industry.
• Value change depending on stage of funding (pre-seed, seed, Series A)

👉 Pro Tip: A fair valuation is a sign of maturity and market knowledge and not the lack of it.

2. Weak or Incomplete Pitch Deck

Another significant cause of failure of startups to attract funding is a poorly designed pitch deck.

Why It Fails:

• Excessive wording, lack of clarity.
• Lacking important slides (traction, financials, go-to-market strategy).
• Inconsistent storytelling

Hundreds of decks are discussed by investors. Unless you’re talking about value in the first 2-3 minutes, it is over.

How to Fix It

• Automated pitch deck templates, investor friendly.
• Follow a proven structure:
  – Problem
  – Solution
  – Market opportunity
  – Traction
  – Business model
  – Financials
  – Team
• Keep it pictorially tidy and fact based.

Pitch deck optimisation is frequently provided by modern fundraising services, and they should be used where necessary.

3. Lack of Market Validation

A lot of founders have the view that a great idea is all. It’s not.

Why It Fails

• Investors do not invest ideas, but proven businesses.
• Common red flags:
• No paying customers
• No user growth metrics

There is no actual market feedback.

This is one of the fundamental reasons why startups are not able to raise financing, particularly at seed and Series A levels.

How to Fix It

• Confirm demand MVPs or pilot programs.
• Display traction: users, sales, interaction, retention.
• Don’t use assumptions, use real metrics.

Even little pushes large promises aside.

4. Weak Financial Planning and Projections

Poor financial clarity is also another important factor that causes of why startups fail to raise funding.

Why It Fails

• Impractical forecasts on revenue.
• None of the knowledge about burn rate.
• Lacking unit economics (CAC, LTV, margins).

Investors would like to understand the flow of money in your business- and how their finances will be spent.

How to Fix It

• Establish open financial models.
• Given cash flow, runway and expenses are to be explained clearly.
• Make projections and the business-valuation meet.

Financial preparedness can be greatly enhanced by subcontracting professional fundraising.

5. Unclear Go-To-Market Strategy

Any product that has no single route to the customers is a dangerous investment.

Why It Fails

• “We’ll market later” mindset
• No business acquisition plan.
• Lack of knowledge of the target audience.

Such uncertainty is one of the biggest causes of ” why startups fail to raise funding” particularly in competitive markets.

How to Fix It

• Develop your perfect customer profile (ICP)
• Discuss how you get and keep users.
• Demonstrate channels of scalable acquisition.

Investors require transparency, not speculation.

6. Weak Founding Team or Skill Gaps

Investors do not only invest in ideas, but also in people.

Why It Fails

• No-support sole founders.
• Lack of technical or financial knowledge.
• No advisory board or mentors

A weak team increases the risk of its execution which directly involves funding decisions.

How to Fix It

• Assemble a balancing founding team.
• Add experienced advisors
• Point out appropriate previous achievements.

An effective team will be able to cover the early uncertainty.

7. No Clear Use of Funds

The explanation of how the money will be used is one of the least considered reasons why startups fail to raise funding.

Why It Fails

• Vague spending plans
• Capital milestones absent.
• Lack of rationality on the investment.

The question that is put before investors is: What happens after I invest?

How to Fix It

• Split budget (product, promotion, recruiting)
• Connect funding with growth targets.
• Demonstrate how capital increases scale.

Clarity builds trust.

8. Not Investor-Ready or Poor Timing

Startups fail sometimes not due to being bad- but rather due to being early.

Why It Fails

• Pitching before traction
• Targeting the wrong type of investors.
• Ignoring market conditions

This is a subtle yet actual cause of failure to raise funding by startups.

How to Fix It

• Target investors that matched your stage and industry.
• Traction milestone time fundraising.
• Create months to come to raise.

Preparation is power.

Final Thoughts:

The knowledge of why startups fail to fund has shaped the strategic advantage of the founders. The biggest mistakes are not when there are no ideas- but when there is insufficient preparation, validation and clarity.

Key Takeaways

• Pricing Realism Use a Startup Valuation Calculator.
• Use automated pitch deck templates.
• Focus on traction, not hype
• Enhance financial planning and storytelling.
• Think of professional fundraising providers.

Raising money is not an accident, it is a process. Plug the holes, narrate a better tale and investors will hear.

FAQs – Frequently Asked Questions

1. Why does a startup fail to fund even when there is a good idea?

The majority of startups do not get financed since investors employ execution, traction, and validation in preference of ideas. A good idea lacking market demand, business valuation, and a go to market strategy elevates the risk of investment, and thus there is no likelihood of getting investment.

2. Why do startups fail to raise funding the most?

Unrealistic valuation is the greatest cause of failure by startups to raise funds. Startups that are overrated and which lack underlying revenues, traction, or other such metrics usually tend to lose investor confidence at an early stage of the pitch process.

3. Is business valuation important in startup fundraising?

Valuation of business is essential. Valuation helps investors to evaluate risk, dilution of ownership, and potential of returns. When a Startup Valuation Calculator is used, founders will be able to show a data-based and plausible valuation that will be within the market norms.

4. Will a bad pitch deck lead to a loss of funding opportunities by startups?

Yes. One of the best fundraising killers is a weak pitch deck. The structure is improper, it lacks clarity, or it does not contain the financials, and the investors become disengaged very fast. Automated pitch deck templates will make sure that your deck is up to investor expectations and storytelling.

5. Are investors investing in startups that are non-revenue generating?

Yes- but only when there is great traction, i.e. user growth, pilot customers, strategic alliance or the market validation. Unrevenue startups should be supported by data rather than assumptions.

7. Are fundraising services worth hiring by startups?

Yes, particularly when it comes to first-time founders. Professional fundraising services assist in valuation, pitch decks, targeting investors, and modeling finances, eliminating expensive errors and increasing the conversion rate.

The beauty and personal care (BPC) sector in India is seeing a surge in growth fuels by the increasing disposable income, digital-first brands, celebrity-led startups, and investor appetite. BPC brands have been expanding demand on investment banking services to fundraise business, strategic M&A and growth-stage capital, including in cosmetics and skincare, wellness and personal hygiene.

This article covers the best investment banks in the beauty personal care industry India, with a heavy emphasis on advisors familiar both with cosmetics, as well as D2C and consumer brands- and is entirely compatible with user intent, and SEO best practices.

Why Beauty & Personal Care Brands Need Specialized Investment Banks?

The cosmetics and BPC industry, unlike other traditional industries, requires advisors possessing the knowledge that:

• Positioning and brand storytelling.
• Influencer and celebrity-based development.
• D2C and omnichannel economics.
• Margin structures and the dynamics of the supply chain.
• IP, formulas and brand equity valuation.

The specialist advisors assist in:

• Valuation software driven insights: Business.
• Pitch deck templates Investor ready.
• Strategic business raising.
• M&A and private equity transactions at the growth stage.

1. FundTQ – Leading Investment Banking Firm in BPC Industry

FundTQ is the leading investment bank in the beauty personal care industry India with a heavy focus on the sector, technology-based advisory, and excellent network of investors in the cosmetics, skincare, wellness, and D2C brands.

Why FundTQ is the Leader in Cosmetics and BPC Space.

• Specific emphasis on cosmetics, personal care and consumer brands.
• The best business valuation software To value the brand.
• Easy to use pitch deck templates specific to VC, PE and strategic investors.
• Fundraising, merger and acquisition, and strategy advice services.

Notable Deal Highlight

A notable deal of FundTQ involves the recommendation of Secret Alchemist Funding, the elite wellness and beauty company by the founder, Samantha Ruth Prabhu. The secret alchemist funding deal was a historic accomplishment that demonstrated how FundTQ operates by leading celebrity-centered cosmetics and positioning of investors.

Services to be provided to BPC Brands.

• Business fundraising to growth stage.
• Brand acquisition and strategic M&A.
• Valuation and Financial modeling.
• go-to-market strategy investor strategy.
• D2C brand and omnichannel brand capital structuring.

Best For:

Startups in cosmetics, celebrity brands, skin/wellness and growth-stage BPC companies in search of smart capital.

2. Top Investment Banks in Cosmetics Industry India (Traditional & Boutique)

1. a) Big Domestic and International Investment Banks.

These companies sometimes recommend huge deals in the beauty and FMCG:

• Top Indian full-service investment Banks.
• International banks in cross-border cosmetic M&A advice.

Limitations:

Frequently target large cap FMCG, not early/mid cosmetic startups.

3. Boutique Advisors – Top Advisors in Cosmetics or BPC Industry India

Founders are preferring more and more small investment banks because of industry knowledge and direct assistance.

Major Strengths of Boutique BPC Advisors.

• Founder-first advisory strategy.
• Extensive knowledge of cosmetics branding and narration.
• More access to consumer-oriented VCs and family offices.
• Individualized pitch deck templates and fundraising plans.

These companies serve as best investment advisors in the cosmetics or BPC industry India, particularly D2C-first brands.

How to Choose the Right Investment Bank for Beauty & Personal Care Brands

BPC founders will need to consider:

• Relevant Deal Experience Cosmetics, skincare, or wellness deals.
• Investor Network – AVCs and PE funds that are consumer-centered.
• Valuation Mastery – Strong business valuation software.
• Fundraising Support – Strategy to closure.
• Brand Understanding – Capacity to position lifestyle and premium brands.

Final Thoughts

The Indian beauty and personal care market is at the critical development phase where it is drawing foreign capital and strategic investors. Selecting an appropriate advisor could have a strong influence on valuation, quality of investors, and brand performance over the long term. Of all the players, FundTQ stands out as the best investment bank in the beauty personal care industry India and has a proven track record of success in cosmetics, celebrity-led brands, and emerging startups in BPC, including successful Secret Alchemist Funding deal.

Top advisors in cosmetics or BPC industry India, top funding consultants in cosmetics or BPC industry India, and other founders of cosmetics industry looking to partner with the best investment banks in India, a specialized investment banking firm may be the specific ingredient in scaling, with success.

Supermarket business is no longer about shelves and check counters. The modern-day supermarkets are information-based retail companies that operate on AI demand prediction, robotic inventory management, analytics of loyalty, and multichannel selling. Simple equity financing of supermarkets is increasingly the financing method of choice among many founders and retail chains to scale quickly without the burden of debt—investors in supermarkets provide capital in exchange for a share in ownership as opposed to requiring (monthly) repayments. This guide reveals all the details of how to equity funding for supermarket, what investors seek, equity amount to provide, and how to create a bankable startup financial overview that will help to impress investors.

What Is Equity Funding for a Supermarket?

Equity funding of supermarket business involves raising funds by selling a share of the business to:

• Angel investors
• Venture capital firms
• Private equity funds
• The strategic retail or technology investors.

Unlike loans, equity funding:

• Has no EMI or interest
• Sustains the growth in the long run.
• Brings in a strategic skill and belief.

Why Are Investors Actively Funding Supermarkets?

Types of Equity Funding for Retail & Supermarkets

1. Angel Investors

• Early-stage capital
• In many cases retail or FMCG professionals.
• Invest ₹50L–₹5Cr

2. Venture Capital (VC)

• Growth-focused
• Show interest in AI-enabled supermarkets.
• Funding AI startups is often overlapping.

3. Private Equity (PE)

• Middle to late-stage supermarket chains.
• Target profitability and growth.

4. Strategic Retail Investors

• Logistics firms
• FMCG brands
• Retail tech platforms

How Much Equity Should You Give Away?

Industry Benchmark

Over-dilution early is a red flag. Investors prefer founders with long-term control.

What Investors Look for in Supermarket Equity Funding

1. Strong Unit Economics

• Gross margins (18%–35%)
• Shrinkage control
• Vendor credit cycles
  

2. AI & Technology Adoption

• Demand forecasting
• Smart inventory management
• Analytics of customer behavior.

This is where AI startup-style thinking funding provides supermarkets with a competitive advantage.

3. Clear Expansion Strategy

• Store rollout plan
• Franchise-company owned model.
• Dark stores and fast commerce preparedness.

How to Build a Winning Startup Financial Model

Equity funding cannot be provided without the use of a professional start-up financial model.

Must-Have Sheets:

• Profit & Loss (5 years)
• Cash Flow Statement
• Balance Sheet
• Store-level unit economics
• Break-even analysis
• Investor IRR & exit scenarios

Tools Used by Professionals

• Financial modeling in Excel
• Scenario analysis, sensitivity analysis.
• Automated dashboards

Majority of the rejections occur as a result of poor financial models rather than the poor ideas.

Pitch Deck That Converts Investors

The questions your pitch deck will answer are:

• Why supermarkets now?
• Why your brand?
• How do you scale profitably?
• Where will the equity funding be applied?
• Opportunities of exit by investors.

👉 Free pitch deck templates are a starting point with no avenue of customisation.

Role of Investment Banking Advisory Services

Professional investment bank advisory services highly enhance the success of business funding by:

• Organizing the correct equity deal
• Understanding how to appreciate your supermarket.
• Finding of strategic investors.
• Negotiating and term sheets management.

In the case of tech-enabled supermarkets, technology investment banking service can be seen as a middle ground between retail investors and AI investors.

Common Mistakes to Avoid

• Fundraising without a financial model.
• Over-/under-valuing the business.
• Negligence in governance and compliance.
• Selling it more like a kirana shop than a retailing business that can be scaled.

Equity Funding vs Debt Funding for Supermarkets

For fast expansion, equity funding for retail business is superior.

Frequently Asked Questions (FAQ)

Q. Is equity financing suitable in supermarkets?

Yes. The cash flow is predictable in supermarkets and therefore, this makes them attractive to the equity investors, as the operations are not strained by debt.

Q. Are supermarkets able to obtain business funding like AI startups?

Yes. AI inventory, pricing, and personification by Supermarkets tend to be a draw to AI startup-oriented investors.

Q. What are the documents needed in equity financing?

• Financial model
• Pitch deck
• Business plan
• Cap table
• Compliance documents

Final Thoughts:

If your supermarket is:

• Scalable
• Tech-enabled
• Financially disciplined
• Expansion-ready

Equity financing of supermarkets is therefore amongst the most effective growth strategies that can be used today. Through an appropriate financial model of startup, pitch deck and advisory services, the supermarkets are able to raise capital just like tech-driven businesses of today.

Retail firms do not fail due to bad ideas but they fail due to the pressure of cash flow and lack of growth capital. Increasing rent, inventory expenses, marketing expenses, and expansion plans require financing that conventional loans are usually incapable of financing.

Equity funding of the retail business comes into play here.

Rather than worrying about EMIs, equity funding enables retail founders to attract strategic investors who invest to grow the business, distribute risk, and can commonly accelerate the brand growth. This is the guide that will guide you through the process of getting the funding to grow your small business without debt in a step-by-step manner.

What Is Equity Funding for Retail Business?

Equity funding refers to selling a part of retail business ownership to investors. You are not repaying a loan, instead you share in future profits and growth.

Key Highlights:

• No monthly repayments
• Reduced financial cost than loans.
• Availability of investor experience and relationships.
• Perfect for growth in retail companies.

Investment banking services and fundraising advisory services usually aid the equity funding by matching the retail founders to the appropriate investors.

Why Do Retail Businesses Choose Equity Funding?

Retail is capital-intensive. Inventory, rentals, marketing and staff costs increase rapidly. Numerous founders prefer equity financing since equity financing is associated with long-term expansion and not short-term survival.

Benefits of Equity Funding:

• Small business funding is provided.
• Enables faster expansion
• Enhances the stability of cash flow.
• Establishes a reputation with business associates and suppliers.

When Is Equity Funding the Right Choice?

Equity funding is suitable where:

• You have consistent revenue
• Your business model can be scaled.
• You are expanding (new stores, omnichannel, franchising)
• You do not require money only, but strategic investors.

Types of Equity Investors for Retail Businesses

This is where business fundraising expertise becomes crucial—matching your retail brand with the right investor type.

What Investors Look for in Retail Businesses?

Investors do not just finance ideas, they finance implementation.

Core Evaluation Criteria:

• Strong revenue traction
• Healthy gross margins
• Repeat customers
• Clear expansion strategy
• Experienced founding team
• Unit economics (store level profitability)

Step-by-Step Process to Get Equity Funding for Retail Business:

Step 1: Get Your Business Investment Ready.

• Clean financial statements
• Clear growth roadmap
• Defined use of funds

Step 2: Develop a Retail-Centric Pitch Deck.

Include:

• Business overview
• Market opportunity
• Store economics
• Growth strategy
• Financial projections

Step 3:Select the Appropriate Fundraising Path.

You can:

• Get to the investors directly.
• Experience with fundraising advisory services.
• Formal deals should be done using investment banking services.

The professional advisors play a significant role in increasing the success rates of funding.

How Much Equity Should You Give Away?

The usual methods of raising capital used by most retail businesses include:

• 10%–25% equity in early rounds
• 15%–30% equity in growth stages

The idea is to make an adequate amount of capital without losing control.

Common Mistakes Retail Founders Make

• Overvaluing the business
• Weak financial reporting.
• No clear expansion plan
• Selecting the wrong investors.
• Bypassing professional advice on fundraising.

This is the reason why most successful founders use business fundraising agencies and investment banks.

Equity Funding vs Loan Funding (Quick Comparison)

Final Thoughts:

Equity funding of retail business can be the most cunning decision to make in case you want to grow faster, build a strong brand, and remove the financial pressure. Having the appropriate plan, definite figures, and the assistance of a reliable fundraising consultancy, you will easily have funds to develop small businesses and create value over time.

Quick FAQ [Frequently Asked Questions]

Q: Will small retail businesses receive equity funding?

Yes. Numerous investors make active investments in small retail outlets that have good unit economics and grow.

Q: Am I required to make profits to raise equity funding?

Not always. What is more important is revenue traction and scalability.

Q: Is the employment of a fundraising advisor justified?

Yes. Statistics indicate a lot more success with professional advisory support.

WorkIndia Raises Rs 97 Cr After 3-Year Gap

Image Source: Entrackr

WorkIndia, the blue- and grey-collar recruitment app in India, has collected Rs 97 crore in a Series B round, headed by Aavishkaar Capital (WorkIndia Series B Funding). The current investor BEENEXT Capital was also a participant of the round. Contributing Rs 22 crore, and Aavishkaar contributed Rs 75 crore.

It is the first funding round of WorkIndia in almost three years, and it underscores the increased investor confidence in the Indian employment-tech sector.

How WorkIndia Plans to Use the Funds

The new capital will be utilized to build the technology platform of WorkIndia. It improve the systems of employer-candidate matching and penetrate the areas where hiring is high. Product innovation will also be included in the company investment to better serve the job seekers. Those businesses seeking efficient work force solutions.

WorkIndia, which has its co-founders Kunal Patil, Nilesh Dungarwal, and Moiz Arsiwala. Specializes in blue- and grey-collar work in over 50 categories such as delivery, field sales, tele-calling, and other frontline jobs.

Strong Growth Signals for the Hiring Platform

According to the industry statistics, to date, WorkIndia has already earned nearly 30 million and has such clients as BEENEXT, Xiaomi, and SBI Holdings among its supporters. In FY25, the company has recorded an annual growth rate of 25 percent in operating revenue to Rs 78.7 crore, and its losses have been greatly minimized.

On the whole, the WorkIndia Series B funding confirms the increased role of technological-based hiring solutions in the Indian labor market. It sets the startup on the track of its further development.

Capital fundraising in a hospital is quite different as compared to capital fundraising in a normal business. The hospitals are a highly regulated sector, with high initial cost and have a heavy burden of responsibility to the health of the populace. Owing to this fact, investors, banks and institutions look into hospital funding proposals with additional scrutinies.

In case you are intending to receive funding to set up, expand, or modernize a hospital, this revised roadmap will assist you in making sense of what really works in the current financial ecosystem.

Why Hospital Funding Requires a Strategic Approach

In contrast to an asset-Light startup, hospitals have to invest heavily in land, infrastructure, equipment, and qualified manpower before revenue stabilizes. The cash flows are slow to mature and margins are determined by patient volumes, payer mix and efficiency in their operations.

This is the reason why hospital financing is not merely a matter of money-raising but rather a matter of designing capital intelligently so that the hospital can make it through the initial years and expand in a sustainable manner.

Why Hospital Funding Requires a Strategic Approach

There are various sources of funds available to hospitals based on their size, ownership structure and level of growth.

Funding Sources that are common in hospitals.

1. Equity Funding: PE funds (Healthcare) strategic investors, family offices.
2. Debt Finance: Banks, NBFCs, project finance, term loans.
3. Government Grants and Programs: State healthcare, subsidies.
4. CSR and Institutional Funding: Social impact and not-for-profit programs.
5. Hybrid Funding Models: A combination of long term debt and equity

Step-by-Step Roadmap to Get Funding for a Hospital

Step 1: Clearly Define Your Funding Requirement

Be Specific in Your Funding Need.

Begin with just one question: Why do you need funding?

• The funds may be needed to fund:
• Acquisition and construction of land.
• Medical machinery and technology.
• First 12-24 months working capital.
• Specializations or bed capacity increase.

Transparency at this level will eliminate excess borrowing or unnecessary dilution of equity at a later date.

Step 2: Create a Realistic Hospital Business Model.

The business model of a hospital needs to be based on operational realities. Investors and lenders are keen on:x

• Bed occupancy assumptions
• Revenue per bed per day
• Department-wise profitability
• Fixed vs variable costs

Business valuation software can be used to transform these assumptions into structured financial projections so your projections look more credible and can be more easily validated.

Step 3: Conduct a Professional Hospital Valuation

The success of business fundraising is based on valuation. A well-prepared valuation:

• Gives standards of equity to investors.
• Enhances negotiations of loans.
• Shows financial restraint.

Hospitals that have clear valuation reasoning are likely to shut funding sooner and at superior conditions.

Step 4: Prepare a Strong, Investor-Ready Pitch Deck

Your pitch deck must have a clear story and not numbers. It must explain:

• The medical requirement you are dealing with.
• Competitive advantage at your hospital.
• Financial forecasts and break-even schedule.
• How the funds will be used

Using templates of the free pitch deck can save time, however, the customisation to the healthcare metrics is necessary.

Step 5: Choose the Right Funding Partners

Not all capital is equal. Banks are interested in security and payment ability whereas equity investors are interested in growth and profits. These are social impact and compliance that are prioritized by the government bodies.

Aligning the profile of your hospital with the appropriate source of funding will enhance the chances of approval by a significant margin.

Role of Investment Banking Services in Hospital Fundraising

Professional investment banking services value add by:

• Organizing the best debt-equity ratios.
• Finding the correct investors and lenders.
• Due diligence and negotiation management.
• Sustaining documentation and closing of deals.

In mid-to-large project hospitals, the skill advisory can be the boundary between the halted negotiations and the successful funding.

Why Business Valuation Software Matters Today

The hospitals can use modern business valuation software to:

1. Calculate various financial scenarios.
2. Stress-test assumptions
3. Offer supported information to investors.

Common Mistakes Hospitals Make While Raising Funds

Common mistakes would include:

1. Excessive forecasting of patients.
2. Bypassing regulatory schedules.
3. Using generic pitch decks
4. Low estimates of working capital requirements.
5. Bypassing professional appraisal.

These errors can be avoided and this would save months of delays and renewed negotiations.

Final Checklist Before Applying for Hospital Funding

You must have before you go to investors or lenders:

• Specific purpose and amount of funding.
• Tactical financial forecasts.
• Valuation supported by data
• Customized pitch deck
• Compliance and regulatory preparedness.

Conclusion:

It is not just about finding funds to finance a hospital but also creating trust in the stakeholders. Hospitals that merge practical planning, professional appraisal, advanced gadgets and organized fundraising plans are much likely to triumph.

The intelligent funding program can also help ensure not only the attraction of funds but also the establishment of a long-term healthcare influence, as well as the stability of operations.

Eternal Limited (previously Zomato Limited) has invested ₹600 crore in its booming subsidiary, Blinkit, in a significant step to the quick commerce industry in India. This makes Blinkit fund 2025 a total of 2600 crore, and it is clear that Eternal is still working on its non-food vertical, which is the primary growth engine of the company currently.

Image Source: Entrackr

Eternal Investment in Blinkit Strengthens Quick Commerce Leadership

The new capital was through the issue of 3,733 equity shares at 16,07,161 apiece as per the filings of the Registrar of Companies (RoC). It is a continuation of earlier investments in 2025 of 500 crore in January and 1500 crore in February and an investment of 400 crore in mid 2024. The capital assists Blinkit in inventory-based model, dark stores growth, and improvement of the delivery infrastructure. Blinkit has increased revenue substantially by booking the full value of goods sold but profitability has been challenged because operating costs are high.

This strategic capital of Eternal indicates its belief in the ability of Blinkit to dominate the competitive Indian instant delivery sector, against its competitors like Swiggy Instamart, Zepto, and the BB Now of BigBasket, and new market entrants by the offline retail chains.

Blinkit Drives Revenue Growth Amid Profitability Pressure

The growth of Eternal support can be seen in Q2 FY26 outcomes. Eternal has posted an operating revenue of 13,590 crore which is almost three times less than that of the identical quarter of the previous year. Blinkit contributed 9,891 crore or approximately three-quarters of the revenues, and the food delivery segment contributed 2,485 crore. Although there was a good revenue, consolidated net profit decreased by 63 per cent every year to 65 crore. Growth expenses such as set up of dark stores, levels of inventory, and logistics of delivering the goods remain a strain to the bottom line.

Also Get: Free Pitch Deck Templates for Startups

The business environment is still capital intensive. The rivals are growing intensely: Swiggy has permission to increase up to 10,000 crore, BigBasket has been able to get a 200 crore debt and Zepto has been able to raise 450 million of funds led by CalPERS. Ongoing Eternal investment in Blinkit will enable the company to remain on the growth path and compete off competitors as well as enhance service and delivery efficiency.

Bottom Line

The investment by Eternal is an indication that it is strategically shifting its focus to non-food high-frequency products, which diversify its revenue and establish Blinkit on the market. The capital will enable Blinkit to expand business, improve customer experience, and maximize the speed of delivery, which are essential to achieve the success in the competitive market of instant commerce.

Although the issues associated with profitability include the cost of expansion, in the long term, it is quite possible that Blinkit will have a monopoly in the Indian quick commerce market. Long term investment will put the company in a growth, innovation and enhanced presence in the market that is fast evolving.

EaseMyTrip (EMT), the online travel agent, experienced a decrease in revenues during Q2 FY26, with ₹118 3 crore in operating revenue and a net loss of 36 3 crore. EaseMyTrip Q2 FY26 results show that the online travel agent (EMT) experienced a decrease in revenues during Q2 FY26, reporting ₹118.3 crore in operating revenue and a net loss of ₹36.3 crore. This marks a sharp contrast to the profit of ₹26.8 crore in the same quarter last year, highlighting the challenges the company faces in its core business amid rising costs.

Image Source: Entrackr

Revenue Decline Driven by Air Ticketing Drop

The air ticketing that generates most of the revenue of EaseMyTrip dropped to 72 crore, a year on year decline of 22 percent. Hotel and holiday packages also added 32 crore which is approximately 27% of the total revenue. The company made more money by other sources but made a total income of 126.5 crores during the quarter which was less than 150 crores in Q2 FY25.

Rising Costs Push Company Into Loss

EaseMyTrip had growth expenses of 67% YoY, largely as a result of increment in employee, service and advertisement costs. Spending on employees went up by a fixed margin of 24% to ₹31.crore. Another exceptional item of the company that also contributed to the quarterly loss was an exceptional item of 51 crore about a General Sales Agent (GSA) agreement with an airline under UDAAN scheme.

Image Source: Entrackr

Non-Air and International Business Growth

Although the setback was experienced, certain segments reported encouraging growth:

• Hotel and holiday bookings shot up by 93% YoY, which suggested good momentum with non-air verticals.
• There was a 16 percent growth in the number of bookings of train, bus, and mobility services.
• Global growth, particularly in Dubai, was a strength: gross booking income increased over 3 times to 361.7 decision-making.

This early success can be attributed to the fact that EaseMyTrip is successful in its EMT 2.0 strategy to diversify its revenue collected by flights.

Operational Resilience Shows Through EBITDA

Net profit became negative, EBITDA has increased sequentially by 76.3% to 12.1 crore (with a margin of 9.6). It means that its revenue pressures are not hurting its operational efficiency implying that it will become profitable provided cost management is maintained.

Strategic Moves and Leadership Changes

EaseMyTrip will keep investing in growth and infrastructure:

• Purchased half of a hotel in London and 100 per cent of a Gurugram commercial property.
• Enhanced management that has a new CTO and CMO.
• Consented to a purchase of 514 crore of preferred equity shares by non-promoters.

These activities are in line with the vision of the company to develop a complete stack travel platform to cover hotels, holidays and international markets.

Looking Ahead

The Q2 FY26 performance of EaseMyTrip is a mixed story, with a decline in the core business and one-time losses counterbalanced by an increase in the non-air vertical and international market. In case the company is able to maintain these high-margin segments and control the expenses, the long-term prospects of profitability are still optimistic on the negative note.

Launching a tech start up is fun- but to bring an idea into a successful business needs funding. Be it a new AI tool or SaaS solution, or a hardware solution, funding is necessary to grow operations, recruit talent, and roll out your product. This manual demonstrates how to raise money through tech startup funding, and has steps to follow that are relevant to the current tech ecosystem.

Why Tech Startups Need Funding?

Technology startups have a higher initial expense than traditional businesses because of:

• Software development, hardware development, AI development.
• Cloud infrastructure or servers.
• Recruiting engineers, designers and marketing staff.
• Regulatory and compliance standards.

Even the best technological ideas may come to a halt without adequate funding. That is the reason why any founder needs to know how the funding can be made and what the investors expect.

#1 Step: Identify the Right Type of Funding

The initial step in raising tech startup funding is to understand what type of funding suits your startup and its objectives:

1. Bootstrapping: Financing operations with own savings or revenue. Ideal for early-stage ideas.
2. Friends and Family: Minimal investments made by immediate acquaintances. Useful in development of proof-of-concept or prototype.
3. Angel Investors: Seasoned investors that contribute investments in the form of equity. Often provide mentorship.
4. Venture Capital (VC): Investments in startups of high potential growth. VCs will fund high amounts but with high equity and quick returns.
5. Government Grants and Programs Non-dilutive funding to encourage innovation.
6. Crowdfunding: Seek direct financing of potential clients via such platforms as Kickstarter or Indiegogo.
7. Corporate Partnerships: Resources or investment by well-known companies in order to collaborate or get early access.

AI Insight: The new AI can assist the founders to find out potential investors, fund raise trends, and even pitch deck optimization to predict what will attract investors according to previous funding records.

#2 Step: Build a Strong Business Plan

Investors desire to have a road map. The following things should be included in your business plan:

• Problem & Solution: What is your tech a solution to, and why is it special?
• Market Opportunity: Growth trends, competitors and total addressable market.
• Model: How are you going to make money with your startup? Subscription, licensing, free-mium, etc.
• Product Roadmap: Product development milestones and schedules.
• Team Credentials: Why your team can create the vision.
• Financial Projections: Financing requirements, expenses and revenue.

Pro Tip: AI tools such as business plan generators can assist you to organise your plan in the most effective way and can simulate growth conditions to investors.

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#3 Step: Craft a Winning Pitch Deck

Your startup’s first impression is a pitch deck. An AI-intensive solution will be able to study the existing successful pitches in order to maximise content and visuals. Key slides include:

• Introduction and Problem: Straight forward and clear.
• Solution: The value positioning of your product.
• Market Opportunity: Factual and valid.
• Traction: Start-user, revenue, partnerships.
• Business Model: How you raise money.
• Team & Advisors: Be competent and reliable.
• Funding Ask Finance: Be clear as to how the funding will expedite growth.

Tip: Keep it under 15 slides. Your deck can also be automatically generated by AI tools into graphs, charts and competitor analysis.

#4 Step: Demonstrate Traction

Startups with the potential of success are invested in by investors. Traction can include:

• The increase or the usage metrics of the users.
• Revenue or pre-orders
• Beta program success
• Joint ventures or alliances.

Small, initial traction can do major wonders to investor confidence. AI analytics can monitor user behaviour, growth patterns, and retention, and thus it is simpler to provide definite displays of traction.

#5 Step: Leverage Networks and Platforms

Funding is a matter of who you have connections with rather than what you have accomplished. Network expansion strategies:

• Startup Incubators and Accelerators: Y Combinator, Techstars and others offer mentorship and funds.
• Angel Networks VC Platforms: AngelList, Crunchbase, and LinkedIn may help you find investors.
• Tech Conferences and Meetups: Pitch events, Hackathons, and workshops are also good in terms of exposure.

AI Insight: AI-powered tools will assist to find investors best suited to your startup business, location, and funding round and save time and chances of success.

#6 Step: Choose the Right Funding Option

Here’s how to match funding types with startup stages:

Choosing the right option prevents unnecessary equity loss and aligns your growth trajectory with investor expectations.

#7 Step: Avoid Common Pitfalls

• VC too soon: Prioritise traction.
• Failure to take legal and financial structuring: Unambiguous contracts and equity arrangements will avoid conflicts.
• Disregard of investor feedback: Relevant ideas, although financial assistance may not be as timely.
• Weak story telling: The investors must relate to your vision both emotionally and logically.

#8 Step: Leverage AI to Boost Funding Success

Artificial intelligence will be able to assist where conventional technology fails:

• Investor Research: AI is used to conduct a scan of databases with investors who are likely to finance your industry.
• Pitch Deck Optimization: Predictive technology proposes slides, images, and messages that resonate.
• Financial Forecasting: AI thinks over various scenarios to reinforce predictions.
• Market validation: AI software processes user response, trends, and sentiment to justify market demand.

AI can be used strategically to save time and reduce risk and enhance investor credibility.

Final Thoughts

Funding tech startups is not a random event. Focus on:

• Competence in your stage of start-up.
• Selecting the appropriate financing sources.
• Developing an effective business strategy and traction measures.
• Preparing a persuasive pitch deck.
• Using AI and networks to their advantage.

This is an efficient and confidence-based way for founders to get tech startup funding in order to transform innovative ideas into scalable and successful businesses.