Rebel to Nua: Big Wins for Lightbox Startups on the Path to Profit

☕🗞️ Good morning! Welcome to The Brief

Amidst tensions in the Middle East following the outbreak of hostilities between Israel and Iran, the stock markets in India have remained surprisingly resilient. According to Bank of Baroda Chief Economist Madan Sabnavis, India's macro fundamentals are unlikely to face significant disruption unless oil prices surge dramatically. Iran supplies just 4% of the global oil market, with China as its primary buyer, limiting the broader impact for now.

Before we dive into this week’s newsletter, a quick introduction to who we are.

Lightbox is a Mumbai-born venture capital firm focused on technology-led consumer businesses. Over the past decade we’ve employed a concentrated portfolio construction and deep operational engagement to enable our portfolio companies and limited partners to navigate this market. India is moving steadily towards becoming a $10 trillion economy, driven by rising consumption and digital adoption. We believe we are uniquely positioned to offer a front-row seat to the most important shifts in the country’s consumer markets. If you’re a global capital allocator, family office, UHNI, or strategic investor looking to participate in the India opportunity, this newsletter is for you.

Let’s get into it.

📡 Signals

Signs of Strength: Lightbox Portfolio in Review

Eighteen months ago, Lightbox set out to achieve a simple goal: profitable, sustainable growth for its portfolio companies. As the firm nears the half-way mark of 2025 it’s time for an assessment of the progress so far. The news is largely positive, showcasing a strategic approach prioritising sustainable business models over rapid expansion. We capture key milestones in the growth journey across the portfolio that are quietly shaping powerful moves for the future.

• Profitability as a Strategic Imperative: Companies spanning the portfolio namely Rebel Foods, Bombay Shirt Company, Zeno Health and Droom, are on a strong momentum. Despite differing growth strategies, they share a common emphasis on cost optimization and have embedded profitability into their operating DNA. Notably, Droom achieved 90% revenue growth while maintaining a stable burn rate, exemplifying this disciplined approach.

• Strategic Fundraising Driven by Fundamentals: D2C femtech brand Nua successfully closed a ₹35 crore pre‑Series C round led by Mirabilis Investment Trust. This came close to the heels of turning profitable in Q2 FY 24‑25, surpassing ₹100 crore in net revenue ARR during Q3, and is now on track to reach ₹150 crore ARR in the near term. Gaming fan engagement platform Rooter, meanwhile, posted a remarkable ₹82 crore in FY 25 revenue, more than double its FY 24 revenue of ₹38 crore, driven largely by its digital storefront Rooter Shop which now generates about 70 % of total revenues and has reduced losses by 63 %

• Riding the Quick-Commerce Wave with Caution : Quick commerce continues to unlock new distribution channels, benefiting healthtech startup Zeno which recently ventured into 50-minute delivery of generic drugs and Rebel Foods through its ‘Quickies’ offering. For product-based companies like Nua, the model parallels the Amazon effect on digital-first brands such as Mamaearth and Wow. However, service-based businesses must weigh the long-term profitability of this model. Both Zeno and Rebel Foods are approaching this landscape with caution, focusing on core strengths and cultivating brand loyalty.

• CityFlo’s Strategic Evolution : CityFlo’s transition from a B2C commuter service to a technology-led transport solutions provider highlights the strength of Lightbox’s investment thesis. By enhancing bus asset utilization and leveraging software for route optimization, the company is significantly improving margins. Following its foray into Hyderabad, CityFlo is now expanding operations to Delhi, with potential to scale through an asset-light, software-first approach.

• Fintech’s Funding Surge : India’s fintech sector has attracted $1.4 billion in funding so far in 2025. Portfolio companies Rupeek and Paymate are well-positioned to benefit. The country’s calibrated regulatory environment supports sustainable growth, with Rupeek already operating profitably and Paymate approaching profitability.

📰 Headlines

MakeMyTrip Plans a BuyBack; Another Busy Week for Fintech

MakeMyTrip plans $3 billion buyback; China’s Trip.com stake to drop below 20%

India’s largest online travel platform MakeMyTrip plans to raise $3 billion through a mix of debt and equity to buy back shares from Trip.com Group, reducing the Chinese company’s holding, it said in a regulatory filing. The fundraise will be the largest ever by a listed Indian new-age company. Following the buyback, Trip.com’s stake in MakeMyTrip will drop to 19.99% from 45.34% currently. Its board representation will also be reduced to two directors from five.

Razorpay leads $30 million investment in payments platform POP 

Fintech unicorn Razorpay has invested around $30 million in consumer payments platform POP, marking a strategic push to tap into India’s rapidly expanding consumer UPI market. The new funding will be used to strengthen POP’s product offerings, expand its merchant partnerships in the direct-to-consumer (D2C) and lifestyle categories, and enhance consumer rewards through its POPcoins program.

Cross-border payments startup Aspora raises $93 million from Sequoia, Greylock at $500 million valuation

Aspora, a Y Combinator-backed startup building cross-border banking solutions for immigrant communities, has raised $93 million across three equity rounds over the last nine months, giving it a post-money valuation of $500 million. Founded in 2022 by Stanford dropout Parth Garg, Aspora (formerly Vance) is addressing the fragmented financial needs of diaspora communities, starting with the Indian diaspora. The company enables seamless cross-border remittances, banking, investments, credit and insurance for immigrants.

JIIF invests in Rs 350 Cr consumer-focused fund by Atomic Capital

Investors from the early-stage network JIIF have committed Rs 26.5 crore to Atomic Capital’s Rs 350 crore debut fund, marking one of the group’s largest collective investments in the consumer-focused venture capital space. Atomic Capital, a newly launched VC firm, is focused on backing digital-first consumer brands, wellness products, and regionally relevant ventures. The significant participation from JIIF members signals growing conviction in India’s next consumption wave, driven by rising aspirations beyond metro cities and an expanding D2C ecosystem.

Secured lending NBFC Techfino secures Rs 65 crore funding

Bengaluru-based NBFC fintech Techfino has raised Rs 65 crore in fresh equity funding from Stellaris Venture Partners and Saison Capital, the venture arm of Tokyo-listed Credit Saison, to expand its secured lending business for underserved micro and small enterprises across India. Techfino started with funding fees for coaching classes and school fees, higher education and upskilling courses. The company has recently started offering loans against property to small business establishments as its second line of product.

IPO-bound Bluestone geared for unicorn tag

Investors in IPO-bound Bluestone are said to be negotiating a secondary transaction that will value the omnichannel jewellery retailer at $1.2 billion. 360 One and Centrum Wealth are in talks to sell stakes worth Rs 300-350 crore  ahead of the proposed IPO. The valuation is a 30% appreciation from the post-money valuation fetched by the company in its last funding round in August 2024. Bluestone reported Rs 1,266 crore revenues in FY and losses at Rs 142 crore.

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