Indian Founders Hold Their Ground
The escalating tensions in the Middle East are triggering supply chain shocks and market volatility. Yet, it is business as usual for Indian founders in the region, even as global giants shutter offices.
Not A Haven Anymore: The Gulf has long been the preferred “Plan B” for Indian unicorns, offering a vast market in the form of the Indian diaspora, easy access to global capital and tax benefits. But the recent escalation has forced many companies to weigh the haven narrative against falling missiles.
Logistical Nightmare: Beyond physical safety, supply chains are also crumbling as airspaces close in the Middle East. On top of this, Indian exporters are finding outbound shipments increasingly difficult to navigate as security protocols tighten. The chokehold at Strait of Hormuz is also leading to increased freight prices and insurance premiums, and higher delivery timelines.
Renewal Bottleneck: A financial storm is also brewing for Indian SaaS startups. The critical March-April subscription renewal window appears to be in jeopardy for homegrown enterprise tech companies with key clients in Kuwait and Bahrain. If geopolitical volatility forces these enterprises to freeze budgets, startups with heavy Gulf exposure could face a sudden revenue dry spell.
Grit Amid Shifting Sands: Nevertheless, the startup diaspora remains grounded, betting on the UAE’s historical neutrality. Many new-age tech companies are quietly shifting to work-from-home models to ensure employee safety, while others are activating business continuity plans and diversifying cloud infrastructure.
As the conflict deepens, will Indian founders double down on their desert dream, or is a mass reverse flip on the cards? For now, here is how homegrown startups are holding steady amid the rising crisis in the Gulf.
From The Editor’s Desk
Top-Level Rejig At CARS24
- Himanshu Ratnoo is stepping down as the CEO of the company’s India used car business after a five-year-long stint. Cofounder and CEO Vikram Chopra will take over the reins from Ratnoo.
- An alumnus of IIM Calcutta, the outgoing executive has worked with companies like Food Panda and Barclays. He joined CARS24 as a VP in 2019 and rose to become the CEO of the vertical in 2014.
- The departure comes barely two months after Chopra announced that the unicorn would go public by January 2027. The startup has raised over $1.3 Bn to date and entered the unicorn club in 2020.
The OpenClaw Question
- Across India, founders, engineers and data scientists are using OpenClaw to build personal AI employees – systems that autonomously solve daily challenges. Such has been the platform’s popularity that it was recently acquired by OpenAI.
- While OpenClaw’s autonomy is appealing, the technology is not cheap and costs up to $200 for advanced setups. Critics flag that setting up the platform is complex and may not be feasible for non-technical users.
- However, the bigger question is the security risks it poses due to its open-source infrastructure and tendency to jump the gun on execution. From a regulatory standpoint, this risk could have legal implications for enterprises.
Flipkart Flips Back To India
- Ahead of its potential IPO later this year, the ecommerce major has redomiciled to India from Singapore. It received NCLT’s nod last December for the reverse flip, a key requirement to list on the domestic bourses.
- This comes as Flipkart has been undergoing internal restructuring for some time now. It has been expanding into new categories, slashing cash burn and divesting stakes in other companies. It also laid off 400 employees last week, citing performance reviews.
- With this, Flipkart has joined a growing list of companies like Meesho, Groww and Razorpay that have flipped back to India over the past couple of years to list on Indian exchanges.
KaarTech Bags $11 Mn
- The SaaS platform has raised nearly ₹100 Cr in its Series B round led by Playbook Partners to strengthen its AI capabilities, expand its footprint in North America and Europe, and fuel acquisitions.
- Founded in 2006, KaarTech helps businesses migrate their core operations to the cloud, while preparing the infrastructure to support AI-driven tools. Having raised $30 Mn to date, the company reported a PAT of ₹7.74 Cr in FY25 against a revenue of ₹718 Cr.
- Going forward, the SaaS company is looking to kickstart its IPO process in FY27, with an eye on crossing ₹1,000 Cr in revenue in FY26 and ₹100 Cr in PAT by March 2027.
Nitro Acquires Zodiac Labs
- Months after its $5 Mn fundraise, the enterprise tech startup has acquired the Delhi NCR-based AI copilot company for an undisclosed amount. As part of the deal, Zodiac cofounder Nikhil Garg has also joined Nitro.
- With the deal, Nitro Commerce aims to expand its footprint across ecommerce, retail, and quick commerce. For context, Zodiac Labs is an analytics startup that offers insights and tools for brands to track their growth across quick commerce channels.
- Founded in 2023, Nitro Commerce offers a suite of AI-enabled tools for brand marketing and customer engagement. It caters to more than 2,500 brands such as Rare Rabbit, Pepperfry and Kapiva.
Inc42 Markets
Inc42 Startup Spotlight
How Flabs Is Rethinking Diagnostics
As testing volumes climb, pathology labs are facing immense pressure to deliver faster and more accurate results. Yet, most still juggle fragmented software, manual entries and paper trails. Flabs wants to change this with its cloud-based operating system.
Digital Backbone For Labs: Founded in 2023, Flabs has built a comprehensive laboratory information system (LIS) that digitises every step of the diagnostic workflow — from patient registration and sample tracking to report generation and delivery. By centralising processes within a single interface, Flabs aims to eliminate silos and reduce operational bottlenecks.
Banking On AI Core: Flabs’ platform is powered by an AI-assisted layer, which automates routine administrative tasks and helps pathologists interpret results faster. The system analyses test data, flags anomalies and generates preliminary insights, which allows labs to maintain accuracy while improving turnaround times.
Eye On India & Beyond: The startup claims to have so far onboarded more than 2,000 pathology laboratories across India and markets like Zambia. With this, Flabs is eyeing a piece of India’s expanding LIMS and pathology lab software market, which is projected to become a $218.5 Mn opportunity by 2030 on the back of growing demand for tech-driven lab infrastructure.
So, can Flabs become the operating system for the next generation of diagnostic labs?
Infographic Of The Day
Indian founders who have built iconic startups are stepping back into the arena with fresh ventures. Here’s all about who is building what…
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