India’s Patent Chasm, Weekly Funding Rundown & More

India’s Patent Paradox 

India emerged as the world’s sixth-largest patent filer in FY26. While commerce minister Piyush Goyal was quick to hail this surge as a reinforcement of the country’s innovation ambitions, a stark disconnect seems to be beneath all these record numbers.

The Patent Chasm: Indians filed a record 1.43 Lakh patent applications in FY26, up 30% YoY. However, the number of patents granted dropped 36% YoY to 21,439. Interestingly, startups, the supposed engine of disruption, saw a mere 649 approvals. 

The Stumbling Block: A primary culprit is the complex interpretation of Section 3(k) of the Indian Patent Act. By excluding algorithms and computer programs ‘per se’, the law often leaves software innovators in a legal grey area. Many applicants file without meeting the high threshold of ‘demonstrable technical advancement’, leading to a graveyard of abandoned applications that fail to survive official scrutiny.

The Red Tape: Administrative friction has also slowed the momentum. A massive internal restructuring of the patent office in 2024 initially cleared backlogs, but the subsequent promotion of 370 examiners to senior roles left a void in the trenches. While the government sanctioned 407 new examiners in early 2025, their training programmes mean the patent office is only now beginning to recover its processing capacity.

The AI Frontier: Reports suggest that AI-related filings have accelerated 7X over the last decade, with GenAI now representing nearly 28% of all tech patents. However, critics argue that India’s approval timelines still pale in comparison to advanced economies, leaving high-quality innovation in a state of regulatory limbo.

As India looks to become a global IP powerhouse, can the administrative and legal framework evolve fast enough to turn the surge in patent applications into a true global competitive edge? Let’s find out…

From The Editor’s Desk

Hocco Bags ₹100 Cr

• The ice cream brand has raised nearly $10.7 Mn in its Series C round from existing backer Sauce.vc to ramp up manufacturing capacity and expand its footprint. The startup raised the funds at a pre-money valuation of ₹2,500 Cr.
• Founded in 2023, Hocco is a D2C brand that sells a range of products such as ice cream cake tins, mud kulfis and flavoured ice creams. With nearly 200 SKUs under its belt, the startup has raised nearly $52 Mn to date.
• Hocco claims to be present across 200 self-owned parlours and restaurants. It also has around 3,300 pushcarts plying on the country’s roads, which it is hoping to scale to 5,000 by next summer. 

Weekly Startup Funding Tanks

• Indian new-age tech companies collectively managed to raise just $60.4 Mn across 15 deals last week, down 83% from $361.5 Mn raised across 23 deals in the preceding week.
• AI emerged as the most funded startup segment last week, with two startups raising $23 Mn. However, ecommerce topped the sectoral charts in terms of deal count, raking in $13 Mn across six deals.
• Seed-stage funding crashed almost 86% week-on-week to $3.3 Mn. Meanwhile, Fireside Ventures and Info Edge Ventures emerged as the most active investors last week, backing two startups each.

Kiwi Cofounder Steps Down

• The fintech startup’s cofounder and chief business officer, Mohit Bedi, has stepped down from his executive position, citing personal reasons. He will now transition to an advisory role within the company.
• On the professional front, Bedi said that he plans to take up advisory roles, funding and angel investing. Before founding Kiwi, he also served in various roles at companies like PayU, Axis Bank and Barclays.
• Founded in 2022, Kiwi issues virtual RuPay credit cards in partnership with banks. It then enables users to link those cards to their UPI account, offering credit‑on‑UPI. In FY25, its top line remained flat at ₹3.8 Cr, but losses zoomed 158% YoY to ₹64.2 Cr.

Startup Stocks In Rally Mode

• Of the 56 new-age tech stocks under Inc42’s coverage, 46 gained in a range of 0.06% to over 20% last week. The remaining ten declined in a range of 0.17% to nearly 5%.
• Overall, these 56 startup stocks ended last week with a market capitalisation of $133.72 Bn, up by over $4 Bn.
• The market rally was driven by improving global sentiment, expectations of an end to the West Asian conflict and the IMF raising India’s FY27 growth forecast. Going forward, market direction will hinge on crude oil price stability and foreign capital flow trends.

Govt’s Startup India Pitch

• The Centre recognised more than 55,200 startups in FY26, marking the highest number of startups recognised in a single fiscal year since the launch of the ‘Startup India’ initiative in 2016.
• With this, the total number of DPIIT-recognised startups in the country jumped to over 2.23 Lakh at the end of March this year. The registered startups have collectively created more than 23.36 Lakh direct jobs so far.
• Maharashtra led the list with over 38,660 recognised startups, followed by Karnataka with 22,600 and Uttar Pradesh with 21,960.

Inc42 Markets

Inc42 Startup Spotlight

How Mannlich Is Redefining Skincare For Men?

India’s grooming market still largely caters to women, even though men are increasingly spending on skin and personal care. Bengaluru-based Mannlich is trying to close this gap with personal grooming products for men.

The Mannlich Stack: Founded in 2024, Mannlich is a D2C brand that develops products designed around common but often overlooked concerns for men, such as acne, chafing, hyperpigmentation, intimate care and sun damage. Mannlich’s catalogue of 10 SKUs spans offerings like lip balms, body washes and hair removal cream. 

Digital-First Focus: Mannlich primarily sells its products via marketplaces like Amazon, Flipkart, Myntra and Tira as well as quick commerce platforms. Targeting customers across metros and Tier II+ cities, the brand’s online-first distribution strategy helps it meet customers where they already shop, rather than relying on specialist channels.

Growth With Profitability: Mannlich claims to be clocking 400% YoY growth, having recently crossed ₹1 Cr in monthly net revenue while remaining profitable. It is targeting ₹24 Cr in annual recurring revenue by FY27, backed by demand in India’s emerging men’s intimate care category.

With the Indian men’s intimate care market projected to cross $780 Mn 2030, can Mannlich redefine men’s grooming in the country?

Infographic Of The Day

With the DPDP Act set to reshape how companies handle user data, a new startup segment is quietly rising to address this challenge, from offering consent managers to AI-led privacy tools. Here’s all about it…

The post India’s Patent Chasm, Weekly Funding Rundown & More appeared first on Inc42 Media.