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Incuspaze Bags Rs 150 Crore as The Func. Lab and Lytmus AI Also Raise Funds
This story looks at three startup deals announced on 29 June 2026. A startup is a new, young company. “Funding” means money that investors give a young company. In return, they get a small share of it, so they own a tiny part. The three deals are very different. One is about flexible offices. One is about healthy food and drinks. One is about AI tutoring for students. Together they show where money is going in India right now. Here is each deal in simple words.
Incuspaze raises Rs 150 crore, eyes an IPO
Incuspaze rents out ready-made offices. A managed workspace is an office that is set up for you. A company just rents it and starts working. It does not have to build the office itself. Incuspaze raised Rs 150 crore. That is about $17.5 million. The money came from a group led by Bharat Value Fund. Other money firms joined too.
Incuspaze will use the money to grow in big cities. It will also make its technology better and buy other companies. It is getting ready for an IPO planned for FY29. An IPO is the first time a company sells its shares to the public. Anyone can then buy a tiny part of the company. The company started in 2016. Sanjay Choudhary and Sanjay Chatrath built it. It now runs more than 80 centres in 18 cities. Together these cover over 4 million square feet. It recently bought iKeva, a firm from Hyderabad. Earlier it bought TRIOS and a real-estate software tool called VSKOUT.
India’s flexible office market has now crossed 100 million square feet. Big firms are driving this growth. So are global capability centres. These are offices that big foreign companies open in India. They do work here for the whole company around the world. After its IPO, Incuspaze would join other listed firms. These include Awfis, Smartworks, IndiQube and WeWork India.
The Func. Lab raises $1.5 million for clean nutrition
The Func. Lab is a nutrition startup. It makes healthy food and drink products. It raised $1.5 million in seed funding. Seed funding is the first big outside money a startup takes to get started. Many well-known people backed it. They are Nisaba Godrej, Anand Piramal, Abhishek Nayar, Bhakti Modi, Harsh Parekh and Sahil Vora.
The brand started in 2025. Three people built it: celebrity fitness trainer Sohrab Khushrushahi, Sahil Kukreja and Daneesh Davar. It sells electrolytes, whey protein and plant protein. Electrolytes are minerals that help your body stay hydrated. The brand says its products skip gums, emulsifiers, anti-caking agents and artificial sweeteners. These are extra chemicals often added to food. It also says other labs test its products to check they are safe. The new money will help it make more products. It will also sell in more online stores, quick-delivery apps and real shops.
Lytmus AI raises Rs 5 crore to build AI exam mentors
Lytmus AI is a startup from Bengaluru. It raised Rs 5 crore in a pre-seed round. A pre-seed round is the very first, small round of funding. Boundless Ventures led the round. The startup builds “AI mentors” to help students study for tough exams. An AI mentor is smart software that acts like a tutor. It answers a student’s doubts and guides them, just like a real teacher.
The company started in 2024. Ajit Kumar and Praveen built it. It begins with NEET. NEET is India’s big medical-entrance exam. Students take it to get into medical college. The app remembers each student’s progress. It also learns from how real subject experts teach. The company says more than 16,000 students used it in the last 90 days. It says students who use its mentor do up to three times more daily practice. It competes with Physics Wallah, Unacademy, Arihant and Infinity Learn.
Lytmus AI says its app works in two layers. The first layer is trained on how expert teachers explain ideas. This helps the AI teach in a clear way. The second layer remembers each student’s history. This makes the lessons feel personal to each student. More than two million students sign up for NEET every year. The company believes cheap, always-on tutoring can help students who cannot pay for costly coaching.
The three deals at a glance
| Startup | Amount | Lead investor | Sector |
|---|---|---|---|
| Incuspaze | Rs 150 crore (~$17.5M) | Bharat Value Fund | Managed workspaces |
| The Func. Lab | $1.5 million (seed) | Nisaba Godrej, Anand Piramal & others | Sports nutrition |
| Lytmus AI | Rs 5 crore (pre-seed) | Boundless Ventures | AI edtech |
Why it matters (especially for India and founders)
These three deals tell a simple story. Money is going to real, everyday needs. One need is office space for a growing economy. Another is cleaner health products. A third is cheap exam help powered by AI. Look at the stages too. They are pre-seed, seed and a late-stage round just before an IPO. A “stage” shows how grown-up a startup is. Seeing money go to all stages shows India’s startup world is healthy.
Founders can learn a lesson here. A founder is a person who starts a company. They should match their pitch to their stage. A pitch is a short talk that sells your idea to investors. A pre-seed startup sells a dream of what it can become. An IPO-bound firm like Incuspaze sells real proof and profit. As more of these firms grow up, they will need bankers to help them list on the stock market. That is exactly why Zerodha is moving into investment banking.
FAQ
What is the difference between pre-seed and seed funding?
Pre-seed is the earliest and smallest money a startup raises. It is often used just to build a first product. Seed funding comes next and is usually bigger. It helps the company find customers and grow.
Why does Incuspaze want an IPO?
An IPO lets a company raise a lot of money from the public. It also gives early investors a way to sell their shares and get their money back. Incuspaze plans its IPO for FY29. It wants to grow its office network first.
The takeaway
From offices to protein to AI tutors, India’s startups keep pulling in money. They are getting it at every stage. The mix of sectors and round sizes shows one thing. Investors still see lots of room to back fresh ideas in 2026.
Sources: Entrackr (Incuspaze), Entrackr (The Func. Lab), Entrackr (Lytmus AI).
