Funding for Indian startup gifting sector experiences a severe decline - Discovering the reasons behind the unexpected freeze.
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The gifting sector, once a bustling hub of investment, has experienced a significant drop in funding this year, both in India and globally. This trend is largely due to a more cautious investment climate, where capital-efficient business models are favoured over rapid scaling.
In India, the most-funded gifting startups include Xoxoday ($30.6 million), Ferns N Petals ($26.1 million), ZoomIn ($21 million), Bakingo and FlowerAura (each $16 million), and eYantra ($10.9 million). However, funding for these startups has dwindled dramatically. In 2025 YTD, only Indigifts, which raised $57,600, has secured capital. This is a steep drop from the $1.3 million raised in 2024 and a 98% decline from the $63.9 million peak in 2022.
Globally, the sector raised $1.73 billion over the last decade, but is experiencing marked funding slowdowns. In 2025 YTD, global gifting startups raised $66.2 million, a significant drop from $99.8 million in 2024 and $218 million in 2023. Leading global gifting startups include Raise, Floward, and Bloom & Wild, while standout deals include Raise's $63 million Series D and Inkd Greetings' $2.7 million Series A.
The focus in India's gifting sector is increasingly on corporate gifting, employee engagement, and personalisation tech. Despite the funding slowdown, consumer demand for personalized and curated gifting remains strong. Platforms are focusing more on profitability, personalization technology, and enterprise gifting rather than aggressive growth.
Neha Singh, Co-Founder of Tracxn, states that the gifting category remains "globally relevant" with "resilient, founder-led businesses" shaping its future. The current trajectory reflects an investor shift toward sustainability and measured growth rather than previous rapid expansion trends.
[1]: [Source 1] [2]: [Source 2] [3]: [Source 3]
- The defi market, known for its rapid financial growth, is attracting investor attention due to its potential for disrupting traditional finance systems.
- In the technology-driven business environment, investing in fintech startups, such as those specializing in personalization tech, could prove profitable.
- Despite the funding slowdown in the gifting sector worldwide, there is a rising interest in the financial aspects of corporate gifting and employee engagement.
- As the gifting sector evolves, there is a shift in financing priorities from aggressive growth to sustainability and measured growth, demonstrating a focus on long-term value over short-term gains. [1, 2, 3]
