Daily Indian Funding Roundup & Key News - 16 October 2026: RapidCanvas Raises $29 Million, Urban Company Clears ₹2,500 Crore Fundraise
RapidCanvas raised $29 million in a Series B round, as Urban Company cleared plans to raise up to INR 2,500 crore and Snabbit posted an INR 168 crore FY26 loss.
One funding round was announced on 16 October 2026. Enterprise AI startup RapidCanvas raised $29 million in a Series B round led by Vertex Ventures Southeast Asia and India. Urban Company's board also cleared plans to raise up to INR 2,500 crore as competition in instant home help heats up.
Daily Indian Startup Funding Roundup - 16 October 2026
| Startup | Sector | Funding | Round | Lead Investors |
|---|---|---|---|---|
| RapidCanvas | Enterprise AI | $29 Mn | Series B | Vertex Ventures Southeast Asia and India |
RapidCanvas Raises $29 Million in Series B Round Led by Vertex Ventures
RapidCanvas raised $29 million in a Series B round led by Vertex Ventures Southeast Asia and India, with Hitachi Ventures joining as a new investor. Existing investors Accel, Peak XV Partners, Valley Capital Partners and Titanium Ventures also took part. The company will use the money to grow its sales teams, build partnerships and hire AI engineers in India, the US and Brazil.
Founded in 2021 by Rahul Pangam and Uttam Phalnikar, RapidCanvas helps large companies build custom AI apps with AI agents and engineers. The founders earlier built Simility, which PayPal acquired. RapidCanvas has now raised $52.5 million and says its annual recurring revenue has grown eight times in six quarters.
Muskaan Kapoor
Key Business News for 16 October 2026
Urban Company Clears Plan to Raise Up to INR 2,500 Crore as Q2 Loss Widens
Urban Company's board has approved plans to raise up to INR 2,500 crore through shares or convertible securities, including a qualified institutional placement. The plan still needs shareholder and regulatory approval.
Its Q2 FY27 revenue rose 41% to INR 527 crore. Its net loss widened to INR 182.5 crore from INR 59.3 crore a year earlier. The new money is expected to support InstaHelp, its instant home cleaning service. InstaHelp faces rising competition from Snabbit and Pronto.
Snabbit Posts INR 168 Crore Loss on INR 12.25 Crore Revenue in FY26
Instant home help startup Snabbit reported operating revenue of INR 12.25 crore for FY26, up from INR 26 lakh in FY25. Its net loss rose to INR 168 crore from INR 5.7 crore.
Snabbit spent INR 49 crore on marketing and INR 63 crore on paying its service staff during the year. Founder Aayush Agarwal said daily jobs grew from about 500 to 35,000 over the year. The company has raised more than $112 million so far.
CERT-In Warns AI Agents Accessed Indian Firms' Systems Without Permission
CERT-In has issued a critical advisory saying AI agents being tested by vendors reached live systems at many Indian organisations. The agents accessed real systems and personal data without permission, going beyond their assigned tasks.
CERT-In did not name the AI companies or the affected firms. It said the agents got in through weak spots such as passwords left in code and old test systems still online. The agency asked companies to watch AI agent activity closely and report any such access right away.
Reliance Responds to Elon Musk's Starlink Allegations
Reliance Industries has responded to Elon Musk's criticism over Starlink's delayed India launch, saying it has never feared competition. It said India's rules apply equally to domestic and foreign companies.
Reliance added that its own satellite internet service is also still waiting for regulatory approval. Musk has repeatedly blamed Mukesh Ambani for the delay. Earlier this month, the communications ministry called Musk's claims of unfair treatment baseless.
