Top Startup News: Innovation on the Rise, From Bharat’s Grassroots to Global Frontiers

This week in the startup world brought a mix of transformative policies, cutting-edge tech breakthroughs, and significant funding momentum. Rural-focused incubation models gained traction, global entry points like Estonia attracted Indian founders, and state governments rolled out ambitious entrepreneurship roadmaps. Deep-tech and AI saw major pushes from NASSCOM and IIT Madras, while space-tech, defence-tech, and fintech added to the innovation wave. Funding activity crossed the $200 million mark, with strong showings in e-commerce, fintech, and health tech. From local policy initiatives to global market access, the startup ecosystem kept up its rapid pace of growth and evolution.

Here is the TICE Weekly Roundup, presenting all the key startup developments from the week.

Top Startup News of the Week

Fueling Bharat’s Innovation: Inside IC IIT Patna’s Incubation Model

The Incubation Centre at IIT Patna (IC IITP), backed by ₹47.10 crore from the Govt. of India and Govt. of Bihar, empowers rural and Tier 2/3 entrepreneurs through support in Electronic System Design and Manufacturing (ESDM) and Medical Electronics. It offers incubation, funding, mentorship, and infrastructure across Bihar, fostering grassroots innovation. With over 180 founders supported and 50+ startups incubated, IC IITP has enabled real-world impact through ventures like Bionic Hope and Saptkrishi. Strategic collaborations and inclusive programs decentralize innovation, while future plans include expanding verticals in agri-tech, health-tech, and deeptech to build a Bharat-centric innovation corridor.

Why Estonia Is the New Favorite for Indian Startups

Estonia’s e-residency program is gaining traction among Indian tech founders, offering a fast, cost-effective way to register a global company online in under four hours. For less than ₹60,000, entrepreneurs can access a 0% corporate tax rate on reinvested profits, with a flat 20% tax only on distributed dividends. Over 2,000 Indian founders have already joined, drawn by Estonia’s digital-first governance, universal public services, and access to European markets. While ideal for global tech ventures, it’s less suited for India-focused businesses. The program does not grant citizenship or tax residency but enables remote business management.

Towards Smarter Startup Financing Policy in Bangladesh

Bangladesh Bank’s SMESPD Circular No 02 marks a major shift in startup financing, raising loan ceilings to Tk8 crore, introducing equity financing via bank-backed VC entities, and removing age limits for entrepreneurs. With a 4% interest cap and a Tk500 crore refinancing fund, the policy aims to support early-stage founders. However, challenges remain: banks lack VC expertise, debt may burden startups, and ecosystem support is limited. The article advocates for co-investment with private VCs, stage-specific funding, and performance monitoring. It calls for a smarter, inclusive approach to unlock Bangladesh’s innovation potential and empower youth entrepreneurship.

Maharashtra Approves Startup Policy 2025 to Boost Innovation

The Maharashtra Cabinet has approved Startup, Entrepreneurship and Innovation Policy 2025, aiming to create 50,000 startups and 1.25 lakh entrepreneurs over five years. As of May 31, 2025, Maharashtra leads India with 29,147 registered startups, accounting for 18% of the national total. The policy seeks to position the state as a global innovation hub, with implementation led by the Maharashtra State Innovation Society (MSIS). Formulated through public consultation, it includes simplified incentives, regional incubation, digital literacy, and skill development. A governor’s council and experts will oversee execution to strengthen the entrepreneurial ecosystem. source (published on 6th Aug 2025)

NASSCOM Selects 37 Startups for 3rd Cohort of GenAI Foundry Program

NASSCOM has announced the 37 startups chosen for the third cohort of its GenAI Foundry program, aimed at accelerating India’s generative AI ecosystem. These startups span sectors like healthcare, legal, retail, and enterprise tech, and will receive mentorship, infrastructure, and go-to-market support. The initiative, backed by industry leaders and government stakeholders, focuses on scaling AI innovation from India for global impact. The selected startups will also benefit from access to compute credits, investor connects, and enterprise partnerships, reinforcing NASSCOM’s commitment to nurturing deeptech entrepreneurship in the country. source (published on 6th Aug 2025)

Public Sector Banks (PSBs) Directed to Launch Unified Portal for Startup Lending

The government has asked state-run banks to explore the idea of setting up a “common startup hub portal” to meet the financial needs of startups. This portal would consolidate various lending schemes, improving access and transparency. The proposal follows a June review meeting where Hon’ble Finance Minister Shri Nirmala Sitharaman urged banks to proactively identify emerging commercial growth areas for the next decade and deepen corporate lending in productive sectors. She emphasized maintaining robust underwriting and risk-management standards. The portal is part of broader efforts to streamline startup financing and strengthen India’s entrepreneurial ecosystem. source (published on 6th Aug 2025)

India Generative AI Startup Landscape 2025

Mapping the Momentum: NASSCOM’s report, India Generative AI Startup Landscape 2025: Mapping the Momentum, identifies over 140 GenAI startups founded since 2019, with more than 60% launched post-2022. These startups span horizontal platforms, vertical applications, and infrastructure, with 73% building for global markets. Key sectors include enterprise tech, developer tools, and customer support. The ecosystem is supported by 40+ VCs and 50+ enterprise partners. Founders often have deeptech experience. Challenges include limited compute access, talent gaps, and regulatory uncertainty. NASSCOM calls for collaboration among government, academia, and industry to unlock India’s GenAI potential and build globally competitive solutions.

IIT Madras Launches School of Innovation and Entrepreneurship

IIT Madras has launched the School of Innovation and Entrepreneurship to build a world-class deep-tech startup ecosystem and position itself globally as an entrepreneurial university. Inaugurated on August 4, 2025, the School will offer programs like MS (Entrepreneurship), a Minor in Entrepreneurship, a PhD, and an entrepreneur-in-Residence cohort. Headed by Prof. Prabhu Rajagopal, it aims to support startups through funding, IP clinics, mentorship, and translational research. With over 475 startups valued at ₹50,000 crore and 11,000+ jobs created, the school will unify IITM’s innovation stack and foster structured academic and entrepreneurial support across disciplines. 

Titan Capital and iDEX Join Forces to Fuel India’s Defence-Tech Startup Ecosystem

Titan Capital has partnered with Innovations for Defence Excellence (iDEX) to support India’s growing defence-tech startup ecosystem. This collaboration aims to provide early-stage funding, mentorship, and strategic guidance to startups working on cutting-edge defence technologies. By combining Titan Capital’s investment expertise with iDEX’s access to defence innovation challenges and government support, the partnership seeks to accelerate the development of indigenous solutions for national security. The initiative reflects a broader push to strengthen India’s self-reliance in defence through innovation-driven entrepreneurship.

UP Plans One Incubator in Every District to Expand Startup Infrastructure

The Uttar Pradesh government is planning to establish one incubator in each of the state’s 75 districts to strengthen its startup ecosystem. This initiative aims to decentralize innovation and provide local entrepreneurs with access to mentorship, funding, and infrastructure. The move is part of a broader strategy to promote entrepreneurship across urban and rural areas, ensuring that startup support is not limited to major cities. Officials emphasized that expanding incubation facilities will help unlock regional potential and contribute to economic growth by fostering grassroots innovation and job creation throughout the state.

Tally Solutions Unveils Tally Startup Challenge to Drive Innovation in Manufacturing Tech

Tally Solutions has launched the Tally Startup Challenge, aimed at fostering innovation in manufacturing technology among startups. The initiative seeks to identify and support early-stage ventures developing impactful solutions for the manufacturing sector. Selected startups will gain access to mentorship, industry exposure, and potential collaboration opportunities with Tally. The challenge reflects Tally’s commitment to nurturing India’s startup ecosystem and driving digital transformation in manufacturing through technology-led entrepreneurship.

Nagaland Startup Ecosystem 2025: Financial Support and Challenges

Nagaland’s Startup Ecosystem 2025 is built on four pillars: fostering rural and social entrepreneurship, creating sustainable business models, developing human capital, and engaging industry for innovation. The state offers fiscal and non-fiscal incentives including GST reimbursement (up to ₹5 lakh/year for 3 years), 100% stamp duty reimbursement, 50% digital upgradation subsidy, and 50% power subsidy (up to ₹10 lakh for 5 years). Challenges include poor infrastructure, limited market familiarity, skill gaps, low venture capital access, and complex tax structures. Industry-wise, agriculture leads with 37.5%, while most startups are in early traction or ideation stages.

JKEDI Connects J&K Startups to Middle East Ecosystem Through Startup Transcend

The Jammu and Kashmir Entrepreneurship Development Institute (JKEDI) has launched Startup Transcend, an initiative to connect J&K-based startups with the Middle East’s innovation ecosystem. This program aims to provide global exposure, mentorship, and market access to local entrepreneurs. By bridging regional startups with international opportunities, JKEDI seeks to foster cross-border collaboration and scale ventures beyond domestic boundaries. The initiative reflects a strategic push to integrate J&K’s emerging startup landscape with global innovation hubs, particularly in sectors aligned with Middle Eastern market demands.

Atal Innovation Mission (AIM) and Bhashini Partner to Make Innovation Truly Inclusive

Atal Innovation Mission (AIM) and Bhashini have partnered to promote inclusive innovation by integrating language accessibility into India’s startup and innovation ecosystem. The collaboration aims to empower entrepreneurs and innovators across linguistic backgrounds by leveraging Bhashini’s AI-driven language translation platform. This initiative will help startups communicate and scale in regional languages, ensuring broader participation from Tier 2/3 cities and rural areas. By bridging language barriers, AIM and Bhashini seek to democratize innovation, making it accessible to all, regardless of linguistic or geographic limitations.

Agnikul Builds World’s Largest Single-Piece 3D-Printed Inconel Rocket Engine, Granted US Patent

Indian space-tech startup Agnikul Cosmos has built the world’s largest single-piece 3D-printed rocket engine using Inconel, a high-performance alloy. The engine, named Agnilet, has been granted a US patent, marking a significant milestone in aerospace manufacturing. The engine was produced without any assembled parts, showcasing a breakthrough in additive manufacturing. This innovation enhances reliability and reduces production complexity. Agnikul’s achievement underscores India’s growing capabilities in private space technology and deep-tech innovation, positioning the country as a serious contender in the global space race.

StartupTN-Supported Fintech Hackathon by BNKHUB Announced in Coimbatore

BNKHUB (a leading fintech company), in partnership with StartupTN, launched Fintech Hackathon 2025 at Tamil Nadu Agricultural University’s (TNAU) Centre of Excellence in Biotechnology, Coimbatore. Inaugurated on Global Fintech Day, the event aims to foster financial inclusion and innovation. It offers a ₹25 lakh startup support package and mentorship for students, founders, and developers. Participants will solve real-world challenges across seven fintech domains, including neo banking, digital lending, UPI, budgeting tools, BaaS, and AI-driven financial automation. Finalists receive end-to-end support from ideation to scaling. Registration is open until August 20, 2025, via form.startuptn.in/FH. BNKHUB is redefining agent banking and digital payments across India.

Indian Startups Raise $205.31 Million in Weekly Funding Surge

Between August 4–9, thirty Indian startups raised $205.31 million, marking a 57.34% increase from the previous week. Growth-stage deals totaled $139.28 million, led by The Sleep Company ($56M), Renee Cosmetics ($30M), and Fibe’s lending arm ($26.5M). Early-stage startups secured $66 million, with Jeh Aerospace leading at $11M. Bengaluru topped city-wise deals with 11, followed by Mumbai. E-commerce led segment-wise with 6 deals. Seed funding dominated with 7 deals. Key leadership changes included Siddharth Shah stepping down at API Holdings and Anand Subbaraman becoming CEO of Icertis.

Goa Startup Policy 2025 Promotes Women Entrepreneurs, Targets 10,000 Jobs

The Goa Startup Policy 2025, approved by the State Cabinet, aims to promote entrepreneurship among women with special incentives and generate 10,000 jobs for Goans. It envisions Goa as a creative capital and startup hub by 2028. The policy targets 1,000 thriving startups, 100 with venture funding, and 50 collaborating with government departments. It supports innovation, public-private partnerships, and includes schemes like seed capital grants, lease subsidies, and skill enhancement to foster a robust startup ecosystem.

Hyderabad Startup Funding Hits $571 Million, Records 160% Growth

Startups in Hyderabad raised $571 million in 2024, marking a 160% increase over the previous year, according to Minister D Sridhar Babu at The August Fest 2025. The funding spanned 81 rounds, with health tech surging 2,139% to $300 million and FinTech nearly doubling to $105 million. Late-stage funding rose 701% to $297 million. Hyderabad ranks 6th in India for supporting women-led ventures, with 531 startups raising $417 million. Initiatives include a 200-acre AI City and expansion of Genome Valley. Mythrivanam may be declared a heritage site for its IT legacy.