India-EU FTA: What’s In It For Indian Startups
Earlier this week, India finalised a free trade agreement (FTA) with the European Union (EU). The deal secures duty-free access for 90% of local exports, simplifies talent mobility and enables high-tech collaboration. But what does the agreement mean for Indian startups?
The Tariff Math: The agreement offers immediate duty removal on 70% of tariff lines, which covers 90% of India’s $33 Bn exports to the EU across sectors such as textiles, footwear, marine products and gems and jewellery. It also schedules gradual duty reductions over three to ten years for categories like processed foods and certain marine products.
D2C’s Sunrise Moment: For homegrown D2C brands, the EU has long been a premium market locked behind compliance complexity, duties and supply chain friction. With tariffs easing, founders believe they can price more competitively without sacrificing margins, particularly in fashion, footwear and electronics.
The Services Layer: Beyond physical goods, the FTA also offers ‘predictable’ EU market access for 144 Indian services sub-sectors, including IT/ITeS, finance and research. Experts believe that this could catalyse EU investment into India’s services ecosystem and foster R&D partnerships.
Simultaneously, the FTA aims to foster deeper collaboration in areas such as AI, semiconductors and cleantech. These partnerships could enable Indian startups in these emerging domains to easily find a new market, shore up innovation and shift up the high-value global value chain.
The Execution Test: The promise is clear — lower landed costs, wider access, and a steadier route into the $24 Tn EU market. However, the harder part is meeting EU standards, building on-ground distribution and navigating compliance.
As Indian startups step up to the challenge, here’s what the newly signed India-EU FTA means for homegrown new-age tech ventures.
From The Editor’s Desk
🥀 Shadowfax’s Subdued Listing
- The logistics unicorn created a lukewarm debut on the bourses, listing at INR 112.60 on NSE and INR 113 on BSE, about 9% below the issue price of INR 124. The stock eventually closed the day at INR 109.18 on the NSE and INR 109.9 on the BSE.
- The muted listing implies that investors were unwilling to pay the IPO valuation even after the company’s public issue was oversubscribed 2.7X. The IPO combined a fresh issue of shares worth INR 1,000 Cr and an OFS of INR 907 Cr.
- Shadowfax is the second new-age tech listing of 2026, following Amagi’s similar discounted debut. This hints that the IPO market is open, but only on tighter terms and optimistic pricing.
📈 Pine Labs’ Q3 Profit Streak
- The fintech major posted its second straight profitable quarter in Q3 FY26, reporting a consolidated net profit of INR 42.4 Cr against a loss of INR 56.7 Cr in the year-ago quarter.
- The profit run came on the back of operating revenue rising 24% YoY to a record INR 744.3 Cr, supported by Q3’s seasonal tailwinds, improving margins and growing top line from its issuing and acquiring platform business.
- The fintech’s client base also shot up 14% YoY to 10.5 Lakh, transactions grew 23% YoY to 193 Cr, and GTV soared 29% YoY to INR 4.5 Lakh Cr.
💰 Agrani Labs Nets $8 Mn
- Emerging out of stealth mode, the AI semiconductor startup has raised INR 73 Cr in its Seed round led by Peak XV Partners.
- Founded in 2024, Agrani Labs is building AI GPUs and finish-to-finish software for enterprise compute. It claims to have already built early versions of both hardware as well as compilers, libraries and system software.
- The fundraise comes amid growing demand for compute and calls for an indigenous AI ecosystem. However, investor caution remains as homegrown semiconductor startups raised a mere $50 Mn in 2025.
💪🏼 Menhood Enters Protein Market
- Foraying into the protein supplement segment, the men’s grooming brand has signed an agreement to acquire a majority stake (50.01%) in wellness-focussed D2C startup Getmymettle for INR 10.5 Cr.
- Expected to close within a month, the deal will enable Menhood to diversify beyond grooming into a higher repeat-purchase category and enable cross-selling. It will also support the listed startup enter the segment without building from scratch.
- Protein-first D2C brands are witnessing renewed investor interest as whey is shifting from a gym niche to a mass habit. At the heart of all this is the homegrown protein supplements market, which is projected to grow to over $1.5 Bn by 2033.
📊 CarTrade’s Q3 Show
- The auto tech platform’s net profit grew 35% YoY to INR 61.5 Cr in Q3 FY26, driven by a 19% YoY uptick in revenue from operations to INR 209.7 Cr, improving margins and a tighter leash on expenses.
- Total expenses rose only 3% YoY to INR 143.9 Cr, including a one-time INR 6.5 Cr hit tied to obligations from the implementation of labour codes. However, EBITDA improved 56% YoY to INR 78.3 Cr in Q3.
- Founded in 2006, CarTrade operates multiple automotive marketplaces across the vehicle lifecycle, from research and discovery to acquireing and selling. It also operates in the auction segment via Shriram Automall and offers financing.
Inc42 Markets
Inc42 Startup Spotlight
How Inamo Is Building India’s Q-Comm Infra?
India’s quick commerce space is booming. But, the real bottleneck is the operational muscle, reliability and speed required to run dark stores and last-mile fleets. Inamo is supporting brands solve this pain point.
Building The Q-Comm Backbone: Founded in 2024, Inamo supports brands build and operate the fulfilment layer that creates quick deliveries possible. Its finish-to-finish stack spans dark store management software, dedicated last-mile delivery fleets, and on-ground execution.
The startup’s model is designed to support brands scale store density, standardise execution, and improve fulfilment reliability as categories receive more complex and time-sensitive.
Scale On The Ground: The startup currently runs more than 50 dark stores across six major metro cities, each supported by its dedicated delivery fleet. Inamo earns revenue by outsourcing its dark stores, licensing its tech stack and offering delivery optimisation services.
The Next Step: Backed by Shastra VC and Antler India, Inamo now plans to expand its footprint, strengthen its tech stack, and build a compliance-ready infrastructure to cater to India’s ultra-rapid delivery boom. Can Inamo be the quiet backbone that powers India’s quick commerce wave?
Infographic Of The Day
Blinkit is no longer growing rapid; it’s scaling profitably. The quick commerce major posted its first-ever adjusted EBITDA profit in Q3, while rapidly expanding its dark store footprint. Here’s how Blinkit’s Q3 views like.
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