Indian toy startups reel in funding despite US tariffs
Indian toy startups are attracting serious funding, despite US tariffs making exports tougher.
With government support and a push for "Made in India" toys, companies like EleFant (₹6 crore seed round) and Candytoy ($13 million Series A from Sixth Sense Ventures and Abakkus) are securing significant funding and growing their operations.
Other toy startups that have raised funds
Kido Enterprises's cumulative funding reached $6.9 million in 2025 with UBS on board.
Peeko secured $3.2 million led by Stellaris this year, Tuco Kids got $4 million from RTP Global, and Snooplay is among the startups that have raised funds.
India's toy market is growing quickly
India's toy market—worth $2-3 billion—is growing quickly thanks to strict BIS rules since 2021 and steep import duties on Chinese toys.
The government is also backing local manufacturing with incentives for design and production clusters.
Quick commerce now brings in up to 15% of Skillmatics' revenues
Quick commerce now brings in up to 15% of Skillmatics' India revenues, especially for last-minute gifting in cities.
But high export tariffs mean some brands are reassessing their focus on the domestic market and agile supply chains—like Skillmatics, which has raised $23.8 million with most of its revenue coming from North America.