Daily India Startup Funding & Business Roundup - May 28, 2026: C2i Semiconductors Extends Series A to $16.7 Mn, Supreme Court Upholds 28% GST on Gaming
Indian startups saw deeptech and defence-adjacent deals dominate on Thursday, 28 May 2026, with semiconductor startup C2i Semiconductors extending its Series A to $16.7 million and drone avionics firm ZeroDrag closing a Rs 6.5 crore seed round. On the business front, the Supreme Court delivered a landmark blow to the online gaming industry by upholding 28% GST retrospectively, triggering over Rs 1 lakh crore in tax liabilities, while Zomato pushed deeper into healthy food delivery with the launch of its Healthy Subscriptions feature.
FUNDING NEWS
| Startup | Sector | Funding | Round | Lead Investor |
|---|---|---|---|---|
| C2i Semiconductors | Semiconductors / AI Infra | $16.7 Mn | Series A (Extension) | Peak XV Partners / TDK Ventures |
| ZeroDrag | Drone Avionics / Defence Tech | Rs 6.5 Cr | Seed | Transition VC |
| Eazzy | Home Services | $440K+ | Angel | Undisclosed |
C2i Semiconductors Extends Series A to $16.7 Million
Bengaluru-based semiconductor startup C2i Semiconductors has extended its Series A to $16.7 million, with TDK Ventures joining the oversubscribed extension. The company had raised $15 million in February, led by Peak XV Partners. Founded in 2024, C2i builds power management solutions for AI data centres and cloud infrastructure. Its platform is projected to deliver over 96% power conversion efficiency, potentially saving a 100 MW data centre nearly $12 million annually in energy costs. The fresh capital will fund operations expansion and product development.
ZeroDrag Raises Rs 6.5 Crore Seed Round
Nagpur-based drone avionics startup ZeroDrag has raised Rs 6.5 crore in a seed round led by Transition VC. Founded in 2022 by Amit Nimje and Shantanu Bhede, the company builds autopilots, motor controllers, GNSS modules, and telemetry systems for drone OEMs across defence, agriculture, logistics, and industrial applications. It previously raised Rs 1.2 crore in a pre-seed round in 2023. Proceeds will go toward R&D, manufacturing scale-up, and next-generation UAV avionics for Indian and global markets.
Eazzy Raises Over $440K in Angel Round
Home services startup Eazzy has raised over $440,000 in an angel round from industry founders and corporate leaders. Co-founded by former Reliance and Flipkart executive Saurabh Luthra and former Cashify COO Aksh Chauhan, the platform currently offers AC and appliance repair services in Gurugram. It plans to expand into mobile repair, home maintenance, and electronics recommerce. Funds will be used to strengthen its technology platform and build AI-powered service solutions.
KEY BUSINESS NEWS
Supreme Court Upholds 28% GST on Online Gaming
The Supreme Court has validated the government's retrospective 28% GST on online gaming companies, triggering tax demands of over Rs 1 lakh crore. The court ruled that once money is staked on a game, the skill versus chance distinction becomes irrelevant for GST purposes. The judgment revives 91 show-cause notices worth approximately Rs 1.44 lakh crore and sets aside earlier Karnataka High Court relief granted to Gameskraft. Companies such as Dream11, Games24x7, and Head Digital Works are now expected to assess the financial fallout.
Zomato Launches Healthy Subscriptions
Zomato has launched Healthy Subscriptions under its Healthy Mode feature, offering curated lunch and dinner meal plans for 3, 5, or 15 days. Dishes are rated using AI-generated nutritional scores covering protein, fibre, and cooking methods. The feature is currently live in Delhi NCR, Mumbai, and Bengaluru. The launch comes as Zomato and Swiggy compete in India's growing healthy food segment, projected to reach nearly $25 billion by 2030.
Muskaan Kapoor
