DPDP Compliance Race; Flipkart’s $2.5B Pre-IPO

A new wave of startups is competing for a share of the ₹10,000 Cr compliance market created by the DPDP Act, as enterprises face a rapidly approaching deadline. These startups aim to transform the privacy mandate into a billion-dollar infrastructure opportunity.

The DPDP Rules, which were notified last year, have set firm deadlines for enterprises, with consent manager obligations beginning in November 2026 and full operational requirements by May 2027. This timeline has opened up an estimated $1.2 Bn compliance-as-a-service market, prompting startups to address readiness gaps in the BFSI and ecommerce sectors.

IDfy recently won the IT ministry’s challenge, outperforming companies like Jio Platforms, Zoop, and Concur. Other significant players include Perfios, which launched its DPDP Suite for fintech consent management, and Cross Identity, which introduced Vishwaas AI, an identity and access management portal. IT giant TCS is also seeking a consent manager permit under the Act.

Smaller enterprises may struggle to adapt, which could slow tech adoption and incur penalties. IDfy plans to open-source parts of its code to assist smaller players in achieving minimum compliance, while Cross Identity is offering its platform without initial license fees.

Flipkart is considering raising $2 Bn to $2.5 Bn in a pre-IPO round from Indian and foreign investors. Parent company Walmart will make the final decision, as it is hesitant to dilute its stake before the IPO. Flipkart Group CEO Kalyan Krishnamurthy has reportedly met with domestic and global bankers to discuss the potential fundraise and investor interest. The company, last valued at $36 Bn, recently completed its reverse flip from Singapore to India, and CFO Sriram Venkaraman stepped down last month.

Agnikul Cosmos is focused on affordable, flexible launches for smaller payloads, utilizing 3D printing to reduce engine production time from months to about a week. The company’s core proposition is mission control, offering customers flexibility in timing, orbit, and drop-off, with competitive pricing.

Ola Krutrim’s AI chatbot, Kruti, is no longer available on app marketplaces and has been removed from the Ola platform. Launched in June of the previous year, Kruti was built on Krutrim’s V2 model and integrated into Ola’s services for cab booking, food ordering, and bill payments. This disruption occurs amid turbulence at Krutrim, marked by layoffs, limited adoption, and top-level exits.

D2C dairy brand Desi Farms saw its revenue cross ₹300 Cr in FY26, an 8X year-over-year increase, driven by acquisitions and expanded distribution channels. The company is targeting ₹800 Cr in revenue for FY27. Desi Farms, founded in 2022, delivers chemical-free and preservative-free milk and dairy products and has raised over ₹200 Cr to date.

The Hosteller has secured ₹150 Cr in its Series B round, co-led by PROMAFT Partners and V3 Ventures, to enhance operational capabilities and brand building. The hostel chain intends to establish 25,000 beds across the country in the next 36 months and plans to launch a supper app offering accommodation, F&B, mobility, and curated experiences. Founded in 2014, The Hosteller operates more than 75 properties across 13 states and has raised over $26.5 Mn to date.

Mafkin Robotics is developing an autonomous robotic fleet for maritime maintenance, offering cleaning, inspection, and repair services for assets like ship hulls and oil storage tanks. The company’s systems aim to reduce operational downtime and labor costs by up to 60% while enhancing safety and resource management. Mafkin uses a contract-based model, allowing maintenance operators to lease the robots.

India’s family offices are increasingly investing in the startup ecosystem, blending founder instincts with long-term investment strategies.