The Bharat Taxi Row, Weekly Funding Rebounds & More

Allegations Hit Bharat Taxi

The arrival of Bharat Taxi promised zero commissions and empowered drivers. But its rollout has triggered allegations of vigilantism, passenger intimidation, forced app deletions and thefts across Gujarat. So, why is the state-backed ride-hailing service in the middle of a full-blown storm?

Alleged Coercion & Intimidation: Drivers describe groups threatening violence and stealing money after stopping cabs mid-ride. Passengers, meanwhile, report being forced to cancel app bookings and delete Uber and Rapido apps. Fear of retaliation keeps many from approaching police, while passengers worry about safety and ride availability during trips.

The Economic Reality: Launched earlier this year, Bharat Taxi’s zero-commission model promised driver ownership and profit-sharing. But drivers allege that bookings are too sparse to sustain incomes. Many report being pressured to quit Uber and Rapido despite insufficient Bharat Taxi demand, risking EMI defaults and livelihood loss. Without adequate ride volume, the platform’s economic viability remains unproven.

Conflicting Police Signals: Social media videos show individuals in police uniforms both promoting Bharat Taxi and warning against coercion, deepening public confusion. The key concern for drivers remains that harassment could persist in the absence of clear enforcement on the streets. For now, questions remain over passenger safety and platform choice.

The Looming Questions: The allegations underscore the tension between the cooperative model and private platforms in India’s urban mobility landscape. While Bharat Taxi’s zero-commission structure may appeal to many, coercive tactics could undermine its legitimacy and passenger trust. Resolution requires clear police action, transparent communication and protection of driver and passenger choice. 

Without these, the alleged incidents could risk confidence in app-based ride-hailing across Gujarat and push users and drivers toward unregulated alternatives. So, what has really gone wrong with Bharat Taxi? Let’s find out…

From The Editor’s Desk

Weekly Funding Rebounds

• Indian startups cumulatively managed to raise $203.4 Mn last week, up 3.4X compared to $58.9 Mn in the preceding week. Deal count also zoomed 50% week-on-week to 21. Ultraviolette and Ema emerged as the most funded startups last week.
• AI emerged as the most funded sector last week, with five AI startups bagging a combined $89.3 Mn. Ecommerce led in deal activity, with six startups collectively raising $3.8 Mn.
• Early stage funding activity also remained strong as seed-stage startups raised $20.3 Mn across five deals last week. Peercheque and Sauce.VC were the most active investors of the week, backing two startups each.

InMobi Gets A New Backer

• Private equity firm True North has acquired a minority stake in the IPO-bound adtech startup. The secondary deal saw the PE firm lapping up 2-3% stake in InMobi for $50 Mn to $60 Mn. There was also a small equity component to the transaction. 
• Founded in 2007, InMobi provides marketing and monetisation solutions to brands, advertisers and publishers. It also operates social commerce platform Roposo, and Glance, an AI-based Android lockscreen platform. It has raised $774 Mn to date.
• The fundraise comes as InMobi is redomiciling back to India from Singapore, ahead of its potential $1 Bn IPO. Earlier this year, the startup also appointed bankers to helm its public issue, which will target a valuation of $6 Bn to $10 Bn. 

Bearish Week For Startup Stocks

• Of the 65 new-age tech stocks under Inc42’s coverage, 37 ended last week in the red and fell between 0.01% and 35%. The remaining 28 gained between 0.3% and 24.6%.
• Capillary Technologies and Zelio were the biggest gainers last week, while PB Fintech and Turtlemint were the biggest losers. The combined market capitalisation of the 65 listed startups declined to $166.6 Bn from $170.2 Bn the previous week.  
• This week, investors will track developments involving the US and Iran, Brent crude prices, US bond yields, and the Rupee, alongside other domestic economic cues for market direction. 

Aequs Eyes ₹650 Cr

• The contract manufacturing company has received board nod to raise up to ₹650 Cr via a preferential issue of warrants to the promoter group, Mellwood Trustee Services. Aequs will issue 2.8 Cr warrants at ₹231.55 apiece.
• While ₹325 Cr will be payable upfront upon allotment, the balance will have to be paid after the exercise of the warrants. Upon full conversion of the warrants, the aggregate holding of the promoter group will increase to 60.73% from 59.09% currently.
• The fresh capital will be used to expand its manufacturing capacity, invest in subsidiaries and for other general corporate purposes. Founded in 2006, Aequs offers manufacturing services to enterprises. Its clients include Airbus, Boeing and others.

IIT Madras Bets On Deeptechs

• IIT Madras and Unicorn India Ventures have marked the first close of their deeptech-focused IITM Unicorn Frontier Fund I at ₹450 Cr. The fund claims to have already deployed nearly ₹55 Cr across four startups.
• Launched in February this year, the fund has a base corpus of ₹600 Cr and an additional greenshoe option of ₹400 Cr. The ₹1,000 Cr fund is targeting the final close by December 2026. Its backers include IIT Madras alumni and family offices.
• Managed by Unicorn India Ventures, the fund aims to build a portfolio of 25 startups across defence tech, spacetech, semiconductors, robotics and AI. The fund will dish out cheques in the range of ₹15 Cr to ₹25 Cr. 

Inc42 Markets

Inc42 Startup Spotlight

Can Neuromod Commoditise Sewage Treatment Plants?

Designing wastewater plants in India can be expensive, slow to install and difficult to maintain. Neuromod Aqua is addressing this bottleneck by turning wastewater treatment into a standardised, modular infrastructure product.

The Modular Approach: Founded in 2026, Neuromod Aqua builds modular treatment systems for sewage and industrial effluents. Its portfolio includes sewage treatment plants, effluent treatment plants, reverse-osmosis systems, zero-liquid-discharge units and demineralisation plants.

The Factory Model: Neuromod’s systems use technologies such as MBBR, MBR and SBR, with modules manufactured in a controlled environment and deployed according to site requirements. This approach reduces project timelines and simplifies maintenance. The startup also expects recurring revenue from monitoring and maintenance contracts, giving it a business model that extends beyond one-time sales.

The Road Ahead: Neuromod is targeting real-estate developers, hospitality firms and infrastructure projects, where water recycling and wastewater compliance are increasingly becoming operational necessities. Going forward, it plans to validate its sewage treatment plant, complete initial commercial deployments and expand service capabilities.

With India’s wastewater treatment market projected to become a $19.4 Bn opportunity by 2034, can Neuromod make bespoke water treatment plants for factories?

Infographic Of The Day

Spinny has confidentially filed its DRHP for up to ₹3,000 Cr IPO. A deeper dive into draft papers reveals that institutional investors hold 86.75% stake in the used-car marketplace. Here is who else owns Spinny…

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