From College Projects to Crores: The Rise of Student-Led Startups in India

Gone are the days when college life was only about lectures, assignments, and placement dreams. Today, a new breed of student entrepreneurs is rewriting the rulebook of success. Across India, especially in top institutes like the IITs, IIMs, and BITS Pilani, students are transforming dorm-room ideas into scalable ventures. Fueled by access to technology, incubators, and early-stage VC funding, these Gen-Z founders are raising crores and making headlines — all before graduation.

Rise of Gen-Z Entrepreneurs

According to a 2023 NASSCOM report, India saw a 40% surge in student-founded startups over the past five years. With over 7,000 startups launched by students in 2023 alone, the trend reflects a growing culture of entrepreneurship among the youth.

India’s demographic dividend—where over 50% of the population is under the age of 25—plays a key role in this boom. Coupled with increasing digital literacy, access to global markets, and startup-friendly policies, the youth are no longer waiting for degrees to start up; they’re diving in early.

College Campuses as Startup Launchpads

Institutions like IIT Bombay, IIT Delhi, IIM Bangalore, and BITS Pilani have become fertile grounds for innovation. These colleges now host world-class incubation centers that provide not only mentorship and infrastructure but also seed funding and industry connects.

• SINE (Society for Innovation and Entrepreneurship), IIT Bombay: One of the earliest and most successful incubators in India. Companies like Detect Technologies, ideaForge (which listed on the stock market in 2023), and Noccarc Robotics (which developed low-cost ventilators during COVID-19) have roots here.

• NSRCEL at IIM Bangalore: Known for its structured support to student and alumni entrepreneurs. Bounce, the dockless scooter startup, and Razorpay, India’s leading payment gateway, are examples of startups that benefitted from the IIMB ecosystem.

• BITS Pilani’s TBI (Technology Business Incubator): Has supported over 75 startups. GreyOrange, a robotics company now operating in Japan and the US, and RedBus, the ticketing giant co-founded by BITS Pilani alumnus Phanindra Sama, are notable alumni.

Funding on Campus: A New Norm

Unlike a decade ago, early-stage VC firms and angel investors now actively scout student ventures. Funds like Blume Ventures, Venture Catalysts, and 100X.VC have dedicated programs to support student-led ideas.

• In 2022, Phool.co, founded by IIT Kanpur graduate Ankit Agarwal, raised $8 million in Series A funding from Sixth Sense Ventures. The startup converts temple waste into incense sticks and eco-friendly leather.

• Agnikul Cosmos, incubated at IIT Madras, secured over $26 million for their space-tech startup and recently launched Agnibaan, India’s first customizable 3D-printed rocket.

• Hyperloop India, a student-led team of engineers from BITS Pilani, was among the finalists in Elon Musk's SpaceX Hyperloop competition. While it didn't become a startup in itself, it paved the way for ventures in smart mobility by its team members.

Student Startups' Success Stories

1. Razorpay: Founded by IIT Roorkee alumni Harshil Mathur and Shashank Kumar, the idea originated while tackling payment challenges during college projects. Today, it’s a unicorn valued at over $7 billion.

2. Ather Energy: The electric scooter startup, founded by Tarun Mehta and Swapnil Jain during their time at IIT Madras, has received over $150 million in funding, with Hero MotoCorp as a major investor.

3. Planys Technologies: Originated from IIT Madras’s TBI, it focuses on underwater robotics for maritime inspections. It received support from BPCL and has worked with Indian Navy and ONGC.

4. Finshots: Started by IIM Ahmedabad students, Finshots simplifies financial news for millennials. It has grown into a full-fledged financial content platform with an investment platform called Ditto.

5. Bambrew: Founded by an SRM University graduate, Bambrew provides sustainable packaging alternatives to plastic. It received early traction from Marico Innovation Foundation and Indian Angel Network.

What’s Fueling the Fire?

• Startup India Initiative: The Indian government’s Startup India scheme has registered over 100,000 startups so far, with student-led ventures increasingly leveraging these benefits including tax holidays and fast-tracked IP filing.

• Hackathons and Pitch Competitions: Events like Smart India Hackathon, TiE University Global Pitch Competition, and Hult Prize have become launchpads. The 2023 edition of TiE University saw over 15 Indian student startups reach global finals.

• Digital Infrastructure: Access to cloud computing, low-code platforms like Bubble and Glide, and AI tools like ChatGPT and Midjourney has made it easier for students to build MVPs quickly and cheaply.

Challenges Remain

While the landscape is optimistic, challenges such as lack of business acumen, balancing academics with startup life, and securing long-term funding still exist. Many student startups fail to scale beyond college due to poor execution, market disconnect, or burnout.

Also, while colleges are great for ideation, transitioning to a scalable business often requires leaving the academic bubble—a leap not all student founders are ready for.

The Future: A Youth-Led Innovation Economy

With India's goal to become a $5 trillion economy and a global innovation hub, student entrepreneurs are bound to play a key role. As more universities formalize entrepreneurship programs and VCs continue to back youth-led ideas, the transformation of college projects into crores-worth ventures will only accelerate.

Recent partnerships like the one between AICTE and Microsoft to introduce entrepreneurship curriculum in technical colleges are steps in the right direction.

From Campus to Capital

In an ecosystem where age is no longer a barrier to entry, India’s student entrepreneurs are proving that ambition doesn’t wait for a degree. With the right mix of support, grit, and vision, these young innovators are not just dreaming big—they're building bigger. And in doing so, they’re redefining what it means to be a student in 21st-century India.