India’s AI Copyright Plan, VCs Score Big In 2025 & More

India’s Licence To Train AI

India has proposed what could be the world’s most ambitious AI copyright regime. A DPIIT working paper has recommended a licencing regime that will open up copyrighted content for training AI models. So, what’s this new proposed policy?

The Mechanics: Under the proposed framework, AI companies will gain access to copyrighted content upon obtaining a licence in exchange for post-revenue royalties. The paper also pitches a body, which will handle the task of collecting and distributing these royalties. But critics are up in arms against this new hybrid policy. 

Compensation Puzzle: The policy’s payment mechanism is not without its flaws either. Unlike music streaming where play counts track usage, critics argue that connecting copyrighted data to AI output is nearly impossible to trace accurately. This makes equitable compensation difficult.

Without quality-based measurement, the proposal risks rewarding volume over value and incentivising entities to flood the system with low-quality content just to maximise royalties. 

Walking A Tightrope: Additionally, the proposed central royalty collection apparatus also risks becoming a bureaucratic quagmire that satisfies neither the developers nor creators. The core tension remains that IP frameworks designed for static works do not fit into dynamic AI systems.

Cost Of Access: Unlike regulations in the UK and EU, which allow creators to opt out from AI training, India’s plan offers no such consent-based mechanism currently. Legal experts warn that this strips creators and media companies of the moral right to protect the integrity and modification of their work. 

Paying For Noise: The one-size-fits-all approach also means AI developers may end up paying for irrelevant data. A healthtech startup training a diagnostic model, for instance, has little use for influencer lifestyle content, yet under a blanket system would still pay for access to it. 

As the ecosystem weighs these concerns, will it effectively balance creator rights with innovation, or will it spawn a bureaucratic nightmare? Let’s find out… 

From The Editor’s Desk

💰 VCs Score Big IPO Exits In 2025 

• India’s startup IPO wave in 2025 delivered the long-awaited liquidity unlock for VC firms. Eighteen startups have gone public so far this year, raising INR 41,200 Cr and enabling early backers to execute partial or complete exits, with hefty returns.
• While Peak XV cornered the largest liquidity haul of INR 2,480 Cr from the IPOs of Groww, Pine Labs, Wakefit, and Urban Company, Y Combinator cashed in INR 1,134 Cr.
• This momentum is expected to continue as investors are poised to cash in on further near-term returns, with companies like Zepto, Shadowfax, Shiprocket, Curefoods, AceVector looking to list next year.

🔔 Shiprocket Files Updated DRHP

• The logistics unicorn has filed its updated draft IPO papers with SEBI for an INR 2,342.3 Cr listing. The public issue will comprise a fresh issue of INR 1,100 Cr and an OFS component of INR 1,242.3 Cr.
• Founded in 2017, Shiprocket is a third-party logistics aggregator that works with 17 courier partners to deliver orders. Its product stack also includes cross-border shipping, payments, marketing tools, among others. It has raised $400 Mn to date. 
• Shiprocket managed to reduce its net losses by 9.5% YoY to INR 38.3 Cr in H1 FY26, while revenue rose 15.4% YoY to INR 942.7 Cr. This reflects operational leverage as the company scales its platform and diversifies revenue streams.

💵 Swiggy Wraps Up INR 10K Cr QIP

• The listed foodtech major has raised nearly around $1.2 Bn through a qualified institutional placement (QIP) by issuing 26.7 Cr equity shares at INR 375 apiece, a roughly 4% discount to the floor price of INR 390.5.
• The proceeds from the QIP, which saw participation from 21 mutual funds, eight domestic insurance companies and others, will be utilised to expand Swiggy’s dark store network and bolster marketing initiatives. 
• The infusion positions Swiggy to compete more aggressively in the quick commerce arena. This fundraise follows Blinkit raising INR 8,500 Cr in 2024 and IPO-bound Zepto also bagging INR 4,000 Cr earlier this year. 

📉 Weekly Funding Takes A Slight Hit

• Weekly funding momentum remained stable as Indian startups cumulatively raised $127.2 Mn last week, down a mere 4% from $133 Mn in the preceding week. However, deal count improved to 21, suggesting continued investor activity.
• Fintech retained its position as the most funded sector, with three startups collectively raising $46.1 Mn. Meanwhile, ecommerce recorded the highest number of deals at seven, though the cumulative capital raised was a modest $7.7 Mn.
• Fireside Ventures and IPV emerged as the most active investors last week, while seed-stage startups saw a sharp 63% week-on-week drop in capital raised – six early stage startups collectively bagged a mere $5.9 Mn last week. 

📊 Mixed Week For Startup Stocks

• Amid a broader market decline, 26 out of the 47 startup stocks under Inc42’s coverage ended last week in the red, while the remaining 19 gained in the range of 2% to 27%.
• While DroneAcharya, TAC Infosec and Veefin emerged as the biggest winners, Fino Payments Bank, CarTrade and Zelio emerged as the biggest losers. 
• Including newly listed Meesho and Aequs, the combined market capitalisation of 49 new-age tech stocks stood at about $136.16 Bn last week. However, the basket of 47 listed names saw its aggregate m-cap slip from $128.67 Bn to $126.84 Bn.

Inc42 Markets

Inc42 Startup Spotlight

How Iztri Is Ironing Out India’s Wardrobe Woes

India’s urban milieu depends heavily on neighbourhood ironing and laundry shops. However, inconsistent service quality, uneven finishing, sparse deliveries and missed deadlines remain a persistent frustration. Iztri is trying to fill this chasm with a tech-enabled alternative.

Wardrobe Care On Phone: Founded in 2024, Iztri offers an app-based service for dry cleaning, laundry and specialised care for footwear and handbags. Users can schedule pick-ups through the platform, and processing happens at the startup’s dark stores equipped with automated steam-press machines. This enables 24-hour turnaround across serviced areas. 

Healthy Early Traction: Iztri has found early demand in its home market of Bengaluru, validating the need for professional, dependable fabric care in India’s urban centres. The segment is witnessing growing demand, driven by rising disposable incomes and growing preference for outsourced household services. 

Scaling Amid Competition: With rivals like Dhobilite and PickyMyLaundry on its tail, Iztri’s ability to maintain service quality while expanding its dark store footprint will be critical to its growth plans. So, can Iztri build lasting consumer trust in a category where consistency is the ultimate moat?

Infographic Of The Day

Meesho isn’t just a unicorn story, it has quietly become a founder factory. Over the years, former employees of the company have founded more than 26 startups across fintech, SaaS and healthtech. Here’s all about it…