Ecomm festive sales hit Rs 24,000 Cr in two days; VC funding drops as large deals dry up

India's e-commerce market witnessed a remarkable surge in sales during the early days of festive shopping, with revenues reaching approximately Rs 24,000 crore within the first two days, as reported by Redseer Strategy Consultants. Among the various categories, mobile phones led the way in terms of revenue, contributing the highest share. The surge in consumer spending extended beyond electronics and encompassed appliances and fashion, with a significant impact on consumers residing in Tier II cities and smaller towns.

The digital infrastructure in India has also caught the attention of global players, with Elon Musk pledging to make Starlink satellite internet services more affordable in the country. This move could potentially trigger a competitive race with Mukesh Ambani's Reliance Jio, as both companies await government approval for their respective satellite internet initiatives, which are slated for implementation shortly before Reliance Jio's planned $106 billion IPO.

As the adoption of Artificial Intelligence (AI) continues to grow, concerns regarding safety and accountability are becoming increasingly prominent. Microsoft CEO Satya Nadella has called for a "brake" on advanced AI models, advocating for companies to proactively build safeguards for these systems. He emphasizes the need for human-controlled shutdown mechanisms, independent audits, and tamper-proof records of AI actions to ensure transparency and accountability as AI agents become more autonomous.

This growing emphasis on AI safety has also led to the emergence of independent AI safety evaluators, who are now facing challenges regarding funding, access to sensitive systems, and operating independently, which has sparked calls for greater government oversight in this evolving landscape.

In the realm of venture capital, there has been a noticeable decline in funding activity, with large deals drying up. VC funding into Indian startups dropped significantly to $168 million in the week of October 3-9, compared to $418 million in the previous week. The decline came in the absence of major transactions, with myTVS raising $44 million as the largest deal of the period.

Other notable funding rounds included DailyObjects ($34.3 million), Lumio ($12 million), Beyond Appliances ($11.3 million), deeptech startup Quanfluence ($10 million), and edtech firm byteXL ($9 million). Beyond Appliances also announced the successful acquisition of Lumio.

TechSparks 2026, a three-day startup and technology summit organized by YourStory, will bring together founders, investors, and industry leaders to discuss AI, emerging technologies, and India's evolving startup ecosystem. The event, set to take place in Bengaluru from October 13 to 15 under the theme "The New Tech Order," will feature keynotes from Zakir Khan, Varun Mayya, and Keshav Reddy.

The discussions will cover a wide range of topics, including AI, deeptech, innovation, and the changing dynamics of India's entrepreneurial landscape.