Daily Indian Startup Funding Roundup & Key News - 8 May 2026: Zepto Gets SEBI IPO Nod, Gameskraft Founders Arrested, Swiggy Cuts Q4 Loss to ₹800 Cr
Thursday, 8 May 2026, was a quiet day for startup funding, with only one deal closing. Business news, however, was packed. Zepto received SEBI's approval for its $1.2 billion IPO, becoming one of the most closely watched public market events in India's quick commerce space. The Enforcement Directorate arrested all three co-founders of online gaming company Gameskraft in an alleged money laundering case. Swiggy posted its Q4 FY26 results, with its loss narrowing 26% to ₹800 crore on the back of 45% revenue growth. Cloudflare also made global headlines by announcing layoffs of over 1,100 employees as part of an AI-first restructuring.
Daily Indian Startup Funding Roundup - 8 May 2026
| STARTUP | SECTOR | FUNDING | ROUND | LEAD INVESTORS |
|---|---|---|---|---|
| Figtree Pharmacy | HealthTech / Pharmacy | Undisclosed | Seed | AJVC Fund |
Figtree Pharmacy Raises Seed Funding from AJVC Fund
Mumbai-based pharmacy startup Figtree Pharmacy has raised an undisclosed amount in a seed funding round from AJVC Fund and other investors. The proceeds will be used to strengthen logistics, build its technology stack, launch private-label medicines, and expand store operations. The company plans to scale its network to 25 stores.
Founded in 2025 by former Nomura healthcare analyst Adrit Chaturvedi and Flipspaces' Yatin Sharma, Figtree operates neighbourhood-focused pharmacies across Mumbai and Delhi, currently running four stores in Bandra, Altamount Road, and Babulnath in Mumbai, and ASIAD Village in Delhi. The company claims over 90% of its business comes from repeat customers, with average order values exceeding ₹1,000.
Key Business News for 8 May 2026
Zepto Gets SEBI Nod for $1.2 Bn IPO
Quick commerce major Zepto has received SEBI's approval for its proposed IPO, with the regulator issuing an observation letter to the startup. Zepto confidentially filed its DRHP in December 2025 for an IPO worth around ₹11,000 crore to ₹12,000 crore (about $1.2 billion), largely comprising a primary capital raise.
The Bengaluru-based startup is now expected to file its updated DRHP in the next six to eight weeks. Founded in 2021 by Aadit Palicha and Kaivalya Vohra, Zepto competes with Blinkit, Swiggy Instamart, and newer entrants like Amazon Now and Flipkart Minutes in India's fast-growing quick commerce market.
ED Arrests Gameskraft Co-Founders in Money Laundering Case
The Enforcement Directorate has arrested the three co-founders of online gaming company Gameskraft in an alleged money laundering case linked to the company's gaming operations. The arrested founders are Deepak Singh, Prithvi Raj Singh, and Vikas Taneja, and the action was taken under the Prevention of Money Laundering Act. The ED reportedly conducted searches across multiple locations in Delhi-NCR and Karnataka as part of the probe.
The investigation relates to allegations of cheating and unlawful gains through Gameskraft's real-money gaming platforms, including RummyCulture and RummyTime, with the agency having earlier frozen around ₹18.57 crore in escrow accounts linked to the case. Founded in 2017, Gameskraft is a Bengaluru-based skill gaming company that has been part of broader regulatory scrutiny around online gaming, GST compliance, and foreign exchange norms in India.
Swiggy Q4: Loss Narrows 26% to ₹800 Cr, Revenue Up 45% YoY
Swiggy narrowed its quarterly loss by 26% to ₹800 crore in Q4 FY26 from ₹1,081 crore in the year-ago period, while revenue from operations rose 44.7% to ₹6,383 crore from ₹4,410 crore in the same quarter last year. The company's total expenses rose 32.8% to ₹7,448 crore during the quarter.
For the full year FY26, Swiggy's revenue grew 50.8% to ₹23,561 crore, though full-year losses rose 33% to ₹4,140 crore as the company continued investing in quick commerce expansion and infrastructure. The results arrive as Swiggy's rival, Eternal (Zomato), reported a 4.5x year-on-year jump in Q4 profit last week.
Cloudflare to Lay Off Over 1,100 Employees in AI Shift
US-based cloud infrastructure firm Cloudflare is set to lay off around 20% of its global workforce as it restructures operations around artificial intelligence. The layoffs are expected to impact more than 1,100 employees across different teams, with the company moving towards an AI-first operating model where internal tasks and workflows will be handled by AI agents and automation tools.
The move comes despite Cloudflare reporting strong first-quarter revenue of nearly $640 million, beating market expectations. The company is expected to incur restructuring charges of around $150 million while continuing selective hiring in engineering and AI-focused roles. The development reflects a wider trend among global tech firms linking job cuts to AI-driven productivity gains.
Muskaan Kapoor
