India’s Beauty Boom: MyGate Secures ₹225 Cr Funding
MyGate security entrance, and an at-home beauty service in a high-rise apartment.
Key Highlights
India’s quick beauty services sector is booming, with MyGate securing ₹225 Cr. Explore startup funding, IPO challenges, and economic shifts.
India’s Quick Beauty Economy Surges
India’s startup ecosystem is witnessing a significant shift towards hyperlocal services, with the at-home beauty sector rapidly expanding while security management startup MyGate recently secured ₹225 crore ($23.6 million) in fresh funding. This capital injection underscores renewed investor confidence in service-oriented platforms, even as the broader quick commerce segment faces profitability and regulatory challenges.
The burgeoning at-home beauty segment is emerging as a new battleground for startups, aiming to deliver salon services within minutes. Companies like Urban Company and Yes Madam, early leaders in this niche, are now contending with aggressive new entrants such as Snabbit and NoBroker, all promising faster service, predictable pricing, and enhanced convenience. Despite rapid growth and fresh capital inflows, the sector faces inherent challenges, particularly regarding profitability, as beauty services have lower daily order volumes per professional. Sustained profitability depends on achieving high density, optimal utilisation, and operational efficiency, alongside building consumer trust and effectively managing professional supply.
MyGate Secures Funding for Strategic Expansion
MyGate, a Bengaluru-based security management startup, successfully raised ₹225 crore ($23.6 million) in a funding round led by Dharana Capital. The company plans to deploy this capital to expand its client base and strengthen its technology platform across India. Founded in 2016, MyGate provides tech-driven security solutions for over 27,000 gated communities and 5 million homes in more than 50 cities, having accumulated $100 million in total funding. MyGate projects 35% to 37% year-over-year operating revenue growth by FY27, aiming to remain profitable, and is exploring international expansion into the Middle East.
Broader Startup Landscape: Regulatory, Funding, and Market Shifts
In other significant developments, quick commerce giant Zepto is navigating multiple regulatory issues, including a FEMA probe concerning its ownership structure and penalties for dark pattern operations and product quality. These issues surfaced after Zepto filed its updated DRHP with SEBI, detailing a ₹8,010 crore fresh share issue and an of up to 11.4 crore shares, amidst a consolidated net loss increase to ₹5,905 crore in FY26 despite operating revenue doubling to ₹22,623.6 crore.
Concurrently, Ashish Dave, former CEO of Mirae Asset Venture Investments (India), launched Sanskrit Capital, a new VC firm targeting a ₹700 crore to ₹1,000 crore maiden fund. The firm will focus on Series B and C growth-stage startups, writing cheques of ₹50 crore to ₹150 crore across fintech, consumer internet, logistics, healthcare, and AI.
Ecommerce major Flipkart faces fresh insolvency proceedings, with the NCLT issuing a notice after Applabs Media alleged ₹1.69 crore in unpaid dues for digital marketing services. This follows a similar plea by Netambit Value First Services Pvt Ltd over ₹4.37 crore in alleged payment defaults.
In the venture capital sector, Gagan Goyal, a General Partner at India Quotient since 2017, is reportedly planning to depart to either start a new venture or advise startups. His exit follows India Quotient’s recent leadership expansion with new partners Sahil Makkar and Kanika Agarrwal. The firm, founded in 2012, has backed over 100 startups including ShareChat and SUGAR Cosmetics.
Innovating the travel experience, MioPods.Space is transforming airports into on-demand private workspaces for business travelers, with pilot runs at Hyderabad airport showing over 2,000 users and expansion talks for Delhi and Mumbai. The IoT-enabled pods offer acoustic insulation, ergonomic seating, and charging ports, accessible via QR code for ₹299 per 30 minutes.
Lastly, Delhi NCR has surpassed Bengaluru as India’s leading D2C hub, attracting over $3.5 billion across 434 deals in the past decade, signaling a potential long-term shift in the country’s startup power dynamics.