Startup Spotlight: AIM 2.0 Announced, Pine Labs IPO Soon & More News

The Indian startup ecosystem is abuzz with significant developments this week, ranging from government initiatives to market milestones. The Union Cabinet’s approval for the continuation of the Atal Innovation Mission under NITI Aayog promises to further bolster the country’s innovation and entrepreneurship landscape. Meanwhile, Paytm’s remarkable recovery, hitting a 52-week high, underscores the resilience of India’s fintech giants amidst a competitive market.

These stories, along with other headline-making moves across sectors, highlight the dynamic shifts shaping the entrepreneurial ecosystem. TICE brings you a closer look at the key updates and their potential impact on startups, entrepreneurs, and the industry at large.

Top Startup News Of The Week

Cabinet Approves Continuation of Atal Innovation Mission

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the continuation of the Atal Innovation Mission (AIM) under NITI Aayog, allocating ₹2,750 crores for the program until March 2028.

AIM 2.0 builds on the success of its predecessor, which introduced initiatives like Atal Tinkering Labs and Atal Incubation Centers. The new phase aims to strengthen India's innovation ecosystem, enhance startup success rates, and create impactful jobs and products.

Read More: Atal Innovation Mission 2.0: What It Means for Startups?

Byju’s Under Financial Scrutiny Again

Edtech giant Byju’s is once again under the spotlight as the Ministry of Corporate Affairs probes its financial practices. The investigation focuses on possible misrepresentation of financial statements and fund mismanagement.

This follows earlier concerns about corporate governance, raising questions about the company’s rapid acquisitions and financial reporting practices. The outcome of this scrutiny will have implications for the edtech sector at large.

Paytm Shares Hit a 52-Week High

Paytm’s stock price soared past ₹939 this week, marking a 52-week high. The fintech giant’s market capitalization now stands at $6.71 billion, buoyed by innovations like UPI Lite, a feature enabling small-value transactions under ₹500 without a PIN.

Experts see this as a positive sign of Paytm’s resilience and its growing influence in India’s digital payments ecosystem.

Read More: Is Paytm Set for a Major Comeback with UPI Lite and Rising Shares?

Ola Electric: Layoffs and New Launches

Ola Electric has announced layoffs affecting 500 employees as part of a restructuring drive. This follows reports of weekly layoffs over the past two months, signaling a challenging phase for the EV startup.

Despite these hurdles, Ola Electric has unveiled its Gig and S1 Z electric scooter ranges. Priced competitively at ₹39,999, these products are tailored for gig economy workers and mass-market consumers, highlighting Ola’s commitment to affordable, reliable electric mobility solutions.

Read More: Ola Electric Fires 500 Staff: Why Layoffs Have Become a Friday Ritual?

Zomato’s Hyperpure Introduces Rapid Delivery Service

Zomato’s B2B grocery supply arm, Hyperpure, has launched a rapid delivery service with options ranging from 30 minutes to four hours. This service complements its next-day delivery offerings, catering to businesses that prioritize speed.

While rapid delivery incurs a premium fee, this move aligns with the growing trend of quick commerce, further expanding Zomato’s market reach.

Nykaa Acquires Majority Stake in Earth Rhythm

FSN E-Commerce Ventures, the parent company of Nykaa, has acquired a majority stake in the clean beauty brand Earth Rhythm. Having already held an 18.51% minority stake, Nykaa’s latest move cements its commitment to the growing clean beauty market.

The acquisition will enable Nykaa to enhance its portfolio and strengthen its position in the personal care industry.

Pine Labs Prepares for $1 Billion IPO

Digital payment platform Pine Labs is gearing up for a $1 billion IPO in FY26. The company has enlisted five top investment banks, including Axis Capital and Morgan Stanley, to ensure a smooth public debut.

Before the IPO, Pine Labs plans a $100 million secondary transaction, giving existing investors an opportunity to exit and paving the way for new stakeholders.

Read More: Pine Labs IPO: 5 Bankers Together! What It Means for Indian Fintech?

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