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Skyroot eyes funding boost; MDR deferment cheers D2C brands
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Happy Thursday! Skyroot is eyeing a big funding round as it gears up to scale rocket production. This and more in today’s ETtech Morning Dispatch.
Also in the letter:
■ Techies return from the US
■ Groww Q2 net profit jumps
■ Udaan returns to revenue growth
Naga Bharath Daka and Pawan Kumar Chandana, founders, Skyroot Aerospace
Skyroot Aerospace is in talks to raise $300 million in two tranches priced at different valuations, as the spacetech unicorn looks to scale up rocket production following its maiden orbital mission.
Deal details:
Tell me more: At the upper end, the round would nearly triple Skyroot’s valuation barely five months after it raised $60 million at a $1.1-billion valuation in May. Skyroot has raised about $160 million to date.
Ankit Chona, founder, Hocco
Private equity firms General Atlantic and ChrysCapital are in talks to invest Rs 300-400 crore in ice cream brand Hocco, valuing the Ahmedabad-based startup at Rs 4,000-4,500 crore, an 80% jump from its previous valuation, according to three people aware of these talks.
Deal details: The proposed round comprises largely primary capital, one of the persons told ET, adding that early investors including Sauce could partially offload some stake. “The secondary tranche of the round has not been finalised yet,” one of the persons said.
(L-R) Dheeraj Dhingra, Salil Srivastava and Sachin Santhosh, cofounders, Scimplify
Speciality chemicals manufacturer Scimplify has raised $25 million in a funding round led by Hitachi Ventures as it plans to expand its research and manufacturing operations in the US, cofounder Sachin Santhosh told us.
US expansion: The Bengaluru-based company plans to invest around $10 million over the next two years in the US, where it is looking to expand its presence in the market for advanced materials, which are used in semiconductors, batteries and critical minerals.
The postponement of the merchant discount rate (MDR) on select UPI merchant payments until after Diwali is expected to give D2C brands more room to offer discounts while protecting margins during the festive season.
Driving the news: For most digital-first brands, 60-90% of prepaid transactions flow through UPI, making the deferral a meaningful cost relief. D2C brands across fashion, cookware, electronics, lifestyle, and beauty and personal care welcomed the deferral.
“The deferment of the proposed MDR implementation is a positive development for D2C brands, particularly as they enter the most important quarter of the year,” said Pankaj Garg, cofounder and CEO of Dailyobjects.
Yes, but: Founders acknowledge the cost pressure will eventually return once the framework is implemented after Diwali. “The postponement is certainly good for now, but the impact will have to be dealt with eventually,” said Deep Bajaj, cofounder of personal care brand Sirona.
For high-ticket, low-margin categories like white goods, jewellery, personal care and electronics, the additional cost will be difficult to absorb and may be passed on to consumers.
Also Read: Online festive sales start slow as smartphone demand dips; quick commerce extends shopping window
As many as 12,700 white-collar technology professionals have returned from the United States to India so far in 2026 (up to September), with the full-year figure expected to exceed 2025’s record 15,100, according to data from staffing firm Xpheno.
Data decoded: The numbers have been steadily going up, from 7,200 in 2023 and 9,800 in 2024. The figures track white-collar technology talent moving along the India-US corridor and are not limited to H-1B visa holders.
If the trend continues, India may soon record its first net gain in technology talent from the US. Close to 14,500 people moved from India to the US till September this year, per Xpheno.
But why: Experts attribute the trend partly to uncertainty around US immigration and economic policies, along with a tightening visa regime over the past few years. Layoffs at large US technology companies have also risen over the last 2-3 years.
Expert take: “The current trajectory of tech talent movement is set on a path where the returnees’ volume this year is set to exceed the previous year’s count and further drop the net talent balance,” said Kamal Karanth, cofounder at Xpheno.
Lalit Keshre, CEO, Groww
Billionbrains Garage Ventures, which operates the wealthtech platform Groww, reported a 54% on-year rise in net profit to Rs 725 crore in the July-September quarter, while revenue from operations grew 47% to Rs 1,502 crore.
Revenue mix: The company saw increased contributions from most products, including margin trading facility (MTF) and commodity derivatives. However, the contribution of equity derivatives to total income fell by 12.2 percentage points on-year.
Vaibhav Gupta, CEO, Udaan
B2B ecommerce platform Udaan returned to revenue growth in fiscal 2026 after four years of slowdown, while continuing to pare losses.
Revenue rebound: Udaan reported a 13% increase in operating revenue to Rs 5,134 crore. Revenue had declined 20% in FY25, after a marginal 1% increase in FY24 and a 40% plunge in FY23. The company also cut its net loss by 19% to Rs 850 crore in FY26.
Ashwini Vaishnaw on India’s tech promise: India wants to be seen as a trusted partner for global technology companies and countries, electronics and information technology minister Ashwini Vaishnaw said on Wednesday.
Former Dyson India MD launches new venture: Ankit Jain, former managing director of Dyson India, has launched Foundry, a consumer technology startup focused on premium home appliances. The company is funding its ambitions with Rs 12 crore raised in a round led by Beenext and Kettleborough VC.
■ China races to build data centres in bid for AI supremacy (FT)
■ The UAE embraces AI for kindergartners (Rest of World)
■ 'Things may get ugly': Meta's new AI Muse is about to make the internet more annoying (BBC)
Also in the letter:
■ Techies return from the US
■ Groww Q2 net profit jumps
■ Udaan returns to revenue growth
Skyroot in talks to raise $300 million in two tranches at different valuations
Skyroot Aerospace is in talks to raise $300 million in two tranches priced at different valuations, as the spacetech unicorn looks to scale up rocket production following its maiden orbital mission.
Deal details:
- The startup is in talks with Indian family offices to raise $150 million at a valuation of $2.3-2.5 billion.
- It is also seeking to mop up the same amount from global investors such as General Catalyst, General Atlantic and Silicon Valley venture fund Benchmark at a higher valuation of up to $3 billion, sources told us.
- The Hyderabad-based startup is offering stakes to domestic family offices at a lower price to keep a larger share in Indian hands.
Tell me more: At the upper end, the round would nearly triple Skyroot’s valuation barely five months after it raised $60 million at a $1.1-billion valuation in May. Skyroot has raised about $160 million to date.
General Atlantic, ChrysCapital in talks to invest Rs 400 crore in Hocco at $500 million valuation
Private equity firms General Atlantic and ChrysCapital are in talks to invest Rs 300-400 crore in ice cream brand Hocco, valuing the Ahmedabad-based startup at Rs 4,000-4,500 crore, an 80% jump from its previous valuation, according to three people aware of these talks.
Deal details: The proposed round comprises largely primary capital, one of the persons told ET, adding that early investors including Sauce could partially offload some stake. “The secondary tranche of the round has not been finalised yet,” one of the persons said.
Speciality chemicals startup Scimplify raises $25 million to expand US operations
Speciality chemicals manufacturer Scimplify has raised $25 million in a funding round led by Hitachi Ventures as it plans to expand its research and manufacturing operations in the US, cofounder Sachin Santhosh told us.
US expansion: The Bengaluru-based company plans to invest around $10 million over the next two years in the US, where it is looking to expand its presence in the market for advanced materials, which are used in semiconductors, batteries and critical minerals.
UPI MDR deferment gives D2C brands festive-season margin relief
Driving the news: For most digital-first brands, 60-90% of prepaid transactions flow through UPI, making the deferral a meaningful cost relief. D2C brands across fashion, cookware, electronics, lifestyle, and beauty and personal care welcomed the deferral.
“The deferment of the proposed MDR implementation is a positive development for D2C brands, particularly as they enter the most important quarter of the year,” said Pankaj Garg, cofounder and CEO of Dailyobjects.
Yes, but: Founders acknowledge the cost pressure will eventually return once the framework is implemented after Diwali. “The postponement is certainly good for now, but the impact will have to be dealt with eventually,” said Deep Bajaj, cofounder of personal care brand Sirona.
For high-ticket, low-margin categories like white goods, jewellery, personal care and electronics, the additional cost will be difficult to absorb and may be passed on to consumers.
Also Read: Online festive sales start slow as smartphone demand dips; quick commerce extends shopping window
India nears first net gain in tech talent from US as over 12,000 flee visa woes
Data decoded: The numbers have been steadily going up, from 7,200 in 2023 and 9,800 in 2024. The figures track white-collar technology talent moving along the India-US corridor and are not limited to H-1B visa holders.
If the trend continues, India may soon record its first net gain in technology talent from the US. Close to 14,500 people moved from India to the US till September this year, per Xpheno.
But why: Experts attribute the trend partly to uncertainty around US immigration and economic policies, along with a tightening visa regime over the past few years. Layoffs at large US technology companies have also risen over the last 2-3 years.
Expert take: “The current trajectory of tech talent movement is set on a path where the returnees’ volume this year is set to exceed the previous year’s count and further drop the net talent balance,” said Kamal Karanth, cofounder at Xpheno.
Groww Q2 net profit jumps 54% to Rs 725 crore; revenue rises 47%
Billionbrains Garage Ventures, which operates the wealthtech platform Groww, reported a 54% on-year rise in net profit to Rs 725 crore in the July-September quarter, while revenue from operations grew 47% to Rs 1,502 crore.
Revenue mix: The company saw increased contributions from most products, including margin trading facility (MTF) and commodity derivatives. However, the contribution of equity derivatives to total income fell by 12.2 percentage points on-year.
Udaan returns to revenue growth in FY26; net loss narrows 19%
B2B ecommerce platform Udaan returned to revenue growth in fiscal 2026 after four years of slowdown, while continuing to pare losses.
Revenue rebound: Udaan reported a 13% increase in operating revenue to Rs 5,134 crore. Revenue had declined 20% in FY25, after a marginal 1% increase in FY24 and a 40% plunge in FY23. The company also cut its net loss by 19% to Rs 850 crore in FY26.
Other Top Stories By Our Reporters
Former Dyson India MD launches new venture: Ankit Jain, former managing director of Dyson India, has launched Foundry, a consumer technology startup focused on premium home appliances. The company is funding its ambitions with Rs 12 crore raised in a round led by Beenext and Kettleborough VC.
Global Picks We Are Reading
■ China races to build data centres in bid for AI supremacy (FT)
■ The UAE embraces AI for kindergartners (Rest of World)
■ 'Things may get ugly': Meta's new AI Muse is about to make the internet more annoying (BBC)
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