Venture capital flowing into Gujarat's vibrant startup scene is increasingly concentrating on established companies with visible revenue streams, moving away from early-stage experiments. In a significant funding spree over recent weeks, startups based in the state have collectively secured more than Rs 300 crore. This capital influx is primarily led by deals in direct-to-consumer (D2C) brands, Software-as-a-Service (SaaS) platforms, and the clean energy sector, which investors now view as having clearer paths to scaling up and successful exits.
Major Deals Highlight Investor Confidence in Scalable Models
At the forefront of this trend, Ahmedabad-based restaurant management SaaS platform Petpooja raised $15 million (around Rs 125 crore) in a Series C funding round. The investment was led by Dharana Capital, Helion Ventures, and Urban Company, highlighting strong investor appetite for Gujarat startups that have successfully moved beyond the pilot phase.
In a parallel development, the clean energy sector is emerging as a major magnet for capital. GVFL led a $12 million (over Rs 100 crore) funding round in Soleos Solar Energy. This deal underscores the robust VC interest in renewable energy platforms that possess a proven execution track record and long-term market visibility.
"We're largely sector-agnostic, but both D2C and energy are seeing very strong growth," stated Mihir Joshi, CEO of GVFL. He emphasized that in the energy sector, a differentiated business model allows companies to gain market traction faster, especially given the substantial market size. Joshi noted that strong players typically demonstrate their execution capabilities within three to four years, despite the complexities of scaling.
Manufacturing and D2C: Consistent Bright Spots for Investment
Manufacturing-linked startups are also attracting considerable investment. Ahmedabad-based industrial solutions startup Magma closed its Series A round at $8 million (approx. Rs 66–67 crore). The round saw participation from a blend of global and government-linked investors, including GVFL. Founded in 2022 by Neal Thakker, Magma assists mid-market manufacturers in modernizing factory operations and scaling precision manufacturing.
"Our immediate focus is on expanding our geographic footprint across Rajasthan, Maharashtra, Karnataka, and Telangana," Thakker said. "We aim to achieve a Rs 1,000-crore revenue run rate over the next 18 months." The capital will be deployed to build new factory-focused solutions and scale their green manufacturing platform, Magma Green.
The D2C model continues to be a standout segment for Gujarat. Umesh Uttamchandani, co-founder of DevX, pointed out that renewable energy segments, particularly wind and solar, have attracted sustained interest due to their predictable five-to-seven-year outlook. "We're also seeing growing participation from local family offices, especially in clean energy," he added. He cited Beardo as a prime example of a home-grown D2C brand that scaled into a successful lifestyle business.
Smaller Deals and a Shift Towards Execution-Led Startups
Several other notable, though smaller, deals have been finalized. D2C food and nutrition brand BabyOrgano raised Rs 20 crore, while beauty appliance startup Protouch secured $2 million (about Rs 17.9 crore) in a pre-Series A round led by GVFL. Early-stage activity persists as well, with Surat-based fintech Vijya Fintech raising $1.4 million (about Rs 11.3 crore) in a seed round and Ahmedabad SaaS firm Softvan securing $1.3 million (around Rs 11.1 crore) in angel funding.
Investors attribute this shift towards backing execution-focused startups to Gujarat's strong manufacturing base, supportive policies, and robust project pipelines. Arjun Handa, chairman of the Claris group, observed that the improved quality and execution depth among founders, who are now building for genuine market demand rather than just valuations, is drawing local capital back into the ecosystem. "That is prompting investors like us to selectively deploy capital across sectors where scalability and long-term fundamentals are clearer," Handa concluded.
