?? India’s Startup Boom: AI, DeepTech & IPOs in 2025 ??????
Arunkumar K.
CTO @ Sennovate | Pioneering AI Cybersecurity Solutions | Former CISO in Web3 & Crypto | Experienced with Bolstering defences for State & National Governments
?Welcome to Swadesi Startup Speaks the show that brings you the latest trends and insights from India’s vibrant startup ecosystem. In this episode we dive into some exciting updates that are shaping the future of Indian startups. From the Union Budget 2025’s focus on AI DeepTech and defense startups to the return of Shein in India and the rise of IPOs we’ve got you covered. Stay tuned as we explore how these developments will drive innovation and growth in the country.
Budget measures on AI, startups, GCCs to spur next phase of growth for India's economy: Tech experts
The Union Budget 2025 emphasizes AI-driven modernization and Digital India with key initiatives such as a ?500 crore Centre of Excellence for AI in Education a DeepTech 'Fund of Funds' with ?10000 crore and 10000 fellowships for research in IITs/IISc. The focus on Global Capability Centers in Tier-2 cities will boost AI-powered digital services and employment. Startup benefits include an extended incorporation window and tax incentives. Skilling initiatives such as 50000 Atal Tinkering Labs and National Centres of Excellence aim to prepare India’s workforce for global opportunities.
InnerGize a mental wellness startup founded by Siddhant Bhargava Shalmali Kadu and Mitansh Khurana is leveraging Neuroacoustic Vagal Modulation technology to address stress and anxiety. Their wearable device stimulates the vagus nerve promoting relaxation and mental well-being. The startup gained early traction after featuring on Shark Tank India leading to 1200+ pre-orders before its official April 2025 launch. Backed by ?6.5 Cr in investments including government funding InnerGize has its own manufacturing facility in Delhi. Priced at ?12400 with pre-order discounts the device has been clinically tested on 1000+ patients. Future plans include international expansion product enhancements with stress-tracking tech and a $10M ARR target within 18 months.
Indian startups raised $240.85M this week across 30 deals with Bengaluru leading in funding. E-commerce secured the most investments followed by SaaS and fintech. Growth-stage highlights include Leap ($65M Series E) Captain Fresh ($30M pre-IPO) and SuperOps ($25M). Early-stage startups raised $107.15M led by Atomicwork ($25M Series A). Funding dipped 3.22% from last week’s $248.87M with an eight-week average of $349.53M. Major acquisitions included Raise Financials acquiring Filter Coffee Shadowfax taking over CriticaLog and NODWIN Gaming acquiring StarLadder. MapmyIndia also invested in AI startup SimDaaS.
India has solidified its position as the third-largest startup ecosystem globally with 1.57 lakh DPIIT-recognized startups as of Dec 31 2024. Over 51% emerge from Tier II/III cities with major hubs like Bengaluru Mumbai and Delhi-NCR leading. Government initiatives like Startup India launched in 2016 have driven growth creating 17.28 lakh jobs. Women-led startups account for 75935 ventures. Key schemes include SISFS (?945 Cr corpus 2622 startups funded) FFS (?10000 Cr corpus ?21276 Cr invested in 1173 startups) and CGSS (?604.16 Cr in loans for 209 startups). Atal Innovation Mission (AIM) has set up 10000 Atal Tinkering Labs and incubated 3556 startups. The ecosystem continues to expand fostering innovation and economic growth.
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The Union Budget 2025 proposes a new ?10000 Cr Fund of Funds to support startups expanding on the 2016 scheme managed by SIDBI. The existing Fund of Funds has catalyzed ?91000 Cr in AIF commitments boosting Indian startups. The budget also focuses on AI DeepTech and digital infrastructure allocating ?20000 Cr for R&D AI Centers of Excellence and a ?500 Cr AI Education hub. Healthcare sees a push with 10000 new medical seats Day Care Cancer Centres and digital healthcare reforms. IIT expansion (6500 seats) and global skilling partnerships aim to build tech talent. India Post will be transformed into a major logistics entity supporting MSMEs and exports. These initiatives solidify India’s vision of Atmanirbhar Bharat positioning it as a leader in AI DeepTech and innovation-driven growth.
The Union Budget 2025 announced a ?20000 Cr Nuclear Energy Mission to develop Small Modular Reactors aiming for five operational SMRs by 2033. The plan includes amendments to the Atomic Energy Act to attract private investment. Startups see this as a potential deep-tech catalyst similar to the PLI scheme for semiconductors. However high capital requirements and regulatory hurdles pose challenges. Experts stress the need for funding infrastructure and research access. While immediate startup opportunities are limited this initiative could boost India’s energy security industrial growth and nuclear innovation in the long run.
Shein has relaunched in India after nearly five years following its ban. The Shein India Fast Fashion app is now developed and operated by Reliance Retail marking its return to the Indian market through a strategic partnership. StartupNews.fyi emphasizes its commitment to ethical reporting and transparency regarding potential conflicts of interest. The publication ensures unbiased coverage despite possible investor connections to featured businesses. Meanwhile website upgradation is ongoing and readers are encouraged to report any glitches. Stay updated with daily startup news via their newsletter.
India’s defence and space start-ups are growing rapidly, with 1000+ defence and 250+ space start-ups driving deep-tech innovation. Government initiatives like iDEX InSpace and domestic procurement policies have fueled this growth. However these start-ups must now go global like Israel’s Armis Checkpoint and Unit 8200-linked ventures which expanded into the US market for funding scaling and partnerships. India’s iDEX programme INDUS-X iCET and venture capital funds mirror Israel’s strategy but hurdles like regulatory compliance security clearances and capital constraints remain. Start-ups like 3rdiTech and NRT have begun US collaborations but targeted financial incentives and India-US strategic partnerships are crucial for scaling. With the right support Indian defence and space start-ups can become global leaders in innovation.
Indian startups are increasingly eyeing public listings with companies like Servify and Pine planning their IPOs. The Inc42 Markets newsletter tracks startup IPO trends offering insights into pre-IPO activities and post-listing performance. The Union Budget has sparked optimism as many believe the future of Indian startups is in the public market. This marks a pivotal moment for startups as they reshape public markets providing exclusive commentary and deep analysis on new-age tech stocks. The article discusses the growing interest and anticipation around Indian startup IPOs signaling a shift towards greater public participation in the growth of Indian startups.
That’s it for today’s episode! India’s startup ecosystem is booming with In this episode, we cover the Union Budget 2025’s key initiatives for India’s startups, including AI-driven modernization, a ?10,000 crore Fund of Funds, and new skilling programs. We also discuss the resurgence of Shein in India, the rise of mental wellness startup InnerGize, and the growing trend of IPOs for Indian startups. Additionally, we highlight the growth of defense tech and nuclear energy startups, along with India’s evolving role as a global leader in innovation.new funding policies and opportunities paving the way for innovation across sectors. Whether it’s AI defense tech or the growing IPO scene the future looks bright for Indian entrepreneurs. Thanks for tuning in to Swadesi Startup Speaks. Don’t forget to subscribe and stay informed on the latest in Indian startups. Catch you next time!