Top Startup News: From State Policy Pushes to Space-Tech Surges

From the hills of Arunachal Pradesh to the coasts of Kerala, and from Bengaluru’s defence hangars to India’s booming space-tech corridors, the past week was a showcase of how deeply entrepreneurship is shaping the country’s future. States doubled down on their startup policies with new infrastructure, grants, and initiatives; the Centre unveiled landmark legislation and fresh funding; and homegrown startups broke new ground with world-first innovations.

While Flying Wedge Defence rolled out India’s first indigenous autonomous combat drone, Infineon partnered with the government to power deep-tech challenges. Kerala announced its first startup pod for workations, Karnataka invited fresh applications for its flagship Elevate grants, and the Indian Parliament passed a defining Online Gaming Bill that protects users while pushing e-sports into the spotlight.

On the global front, South Korea strengthened its unicorn support programme, while India’s space-tech dreams soared higher with new ISRO–startup collaborations and fresh government funding. Add to that the buzzing conclaves, demo days, and a $283 million fundraising haul by Indian startups, and it’s clear—the ecosystem is charging ahead with ambition, innovation, and global aspirations.

Top Startup News of the Week

Hon’ble Chief Minister of Arunachal Expands Startup Push with APIIP Premises Expansion

Hon’ble Chief Minister of Arunachal Pradesh Shri Pema Khandu announced the expansion of the Arunachal Pradesh Innovation and Investment Park (APIIP) premises to accommodate more startups. Speaking at the APIIP premises, he emphasized the government’s commitment to fostering entrepreneurship and innovation. The expansion aims to support more entrepreneurs by providing better infrastructure and resources. He highlighted the success of the state’s startup policy and reiterated the importance of creating a conducive ecosystem for young innovators. He also interacted with startup founders and assured continued support from the government to help them scale and succeed.

Kerala’s First Startup Pod to Open in Varkala

Kerala’s first-ever startup pod, designed for work and travel, is set to open in Varkala. Jointly implemented by the Kerala Startup Mission (KSUM) and the State’s Tourism Department, the initiative aims to attract tech professionals and entrepreneurs for workations. Located near the government guest house, the three-storey structure will cost around ₹6 crore and offer high-speed internet, 24x7 access, meeting spaces, and hi-tech features. KSUM CEO Mr. Anoop P Ambika stated the project is in its final stages and will be completed in eight months. Four startups have been shortlisted to invest in the initiative.

Karnataka Opens 22nd Round of Flagship Startup Grant Programme

Karnataka has launched the 22nd round of its flagship Elevate Startup Grant programme, inviting applications opened on August 15 for innovative startups across sectors. Elevate provides a one-time grant of up to ₹50 lakh to help startups build prototypes, develop proof of concepts and scale their businesses.  The programme, managed by the Department of Electronics, IT (Information Technology), Bt (Biotechnology), and S&T (Science & Technology), aims to support early-stage ventures with funding and mentorship. Eligible startups can apply through the official Elevate portal, with the deadline set for September 15, 2025. The initiative has already supported over 800 startups and disbursed ₹100 crore in grants. This round continues the state’s commitment to nurturing entrepreneurship and positioning Karnataka as a leading startup hub in India.

India’s Online Gaming Bill Elevates E-Sports, Bans Real-Money Gaming

The Promotion and Regulation of Online Gaming Bill, 2025, passed by the Parliament on 21st August 2025, marks a landmark move to shield citizens from the menace of online money games while promoting and regulating other kinds of online games. The framework is designed to protect individuals—particularly youth and vulnerable groups—from the adverse social, economic, psychological, and privacy-related risks associated with such games. By formally recognizing and supporting e-sports and social gaming, the Bill seeks to encourage innovation and structured growth in segments deemed legitimate. At the same time, the prohibition of real-money and betting games underscores the Government’s intent to safeguard individuals—particularly vulnerable groups—from potential financial and social risks.

Infineon Boosts India’s Startup Ecosystem with Innovations

Infineon India is strengthening the country’s startup ecosystem by fostering innovation in IoT, e-mobility, and smart healthcare. It signed an MoU with DPIIT to support startups, engineering students, and entrepreneurs through design challenges using Infineon’s technologies. Collaborating with Startup India, NITI Aayog and MeitY, Infineon backs the "Make in India" initiative. The company partners with IISc Bangalore and IIT Madras Incubation Cell, supporting challenges like AI and solar pump motor drives. Successful collaborations with startups such as e-Drift Electric, EYDelta, and Mimyk showcase its impact in EV infrastructure, AI motor solutions, and health monitoring. 

Bengaluru Startup Unveils India’s First Indigenous MALE Autonomous Combat Aircraft

Flying Wedge Defence and Aerospace (FWDA), a Bengaluru-based startup, has launched India’s first indigenous, export-ready Medium Altitude Long Endurance (MALE) autonomous combat aircraft named Kaala Bhairav. Designed, developed, and manufactured entirely in India, the aircraft offers up to 30 hours of endurance and a 3,000 km range. At the launch event, FWDA announced a landmark export order worth $25 million from a South Asian nation. Founder & CEO Mr. Suhas Tejaskanda emphasized the need for strategic autonomy, citing risks of foreign system dependencies. The platform aims to replace costly imports like Predator drones with affordable, scalable Indian alternatives.

ET Soonicorns Summit 2025 Charts AI-Fuelled Startup Roadmap

The ET Soonicorns Summit 2025 in Bengaluru focused on scaling Indian AI startups from research to revenue. With 50+ speakers across 12 sessions, it explored AI’s role in early-stage investments, growth, and IPO strategies. Deputy CM DK Shivakumar inaugurated the event and released the ET Top Soonicorns and Minicorns of Karnataka 2025 report. Keynotes, including one by Mr. Sameer Nath of 360 ONE Asset, addressed how to distinguish real AI disruption from hype in India’s startup landscape.

Startup Policy Forum Forms Advisory Board to Back Deeptech Startups

Startup Policy Forum (SPF) has launched a DeepTech Advisory Board to strengthen India’s deeptech policy ecosystem. The board includes investors, entrepreneurs, policymakers, and academics, and aims to identify high-potential startups and guide policy frameworks. It will anchor the #100DesiDeepTechs initiative with Startup India, MeitY Startup Hub, and IIT Madras, supporting startups in areas like AI, biotech, and space. The board will also collaborate with the Centre for DeepTech Policy Research and host roundtables to gather policy inputs, which will be compiled into a report by Ikigai Law for the DeepTech Baithak.

FITT Forward 2025 Showcases Deep-Tech Innovations Transforming Daily Life

FITT Forward 2025 at IIT Delhi showcased how deep-tech startups are transforming daily life in India. Highlights included antimicrobial fabrics, autonomous pool-cleaning robots, AI for traffic signs, and camera-based urban planning. Health tech featured portable diagnostics and smart nutrient patches. Assistive tech, VR surgical training, and underwater robotics also impressed. Over 30 startups pitched to investors, with FITT Managing Director Dr. Nikhil Agarwal emphasizing the “triple helix of innovation” — collaboration between government, academia, and industry. 

India’s Future Rests on Startup Ecosystem: Governor

Hon’ble Punjab Governor and Chandigarh Administrator Gulab Shri Chand Kataria inaugurated the CII Chandigarh Startup Conclave 2025, emphasizing the transformative role of startups in shaping India’s future. He stated, “The answer to what India will be in 2047 lies in India’s startup ecosystem.” He highlighted the Chandigarh Startup Policy 2025’s potential to empower youth and generate employment. He urged innovation in agriculture, fisheries, and dairy, drawing parallels with the 1990s liberalisation. The conclave featured sessions on startup mindset, capital strategies, and defence–startup synergy, with startups showcasing innovations to industry and government representatives.

IIT Kanpur’s C3iHub Startup Demo Day 2025 Launches Breakthrough Cybersecurity Products

IIT Kanpur’s C3iHub hosted Startup Demo Day 2025 ‘Connect 1.0’, unveiling five pioneering products in cybersecurity, drones, and blockchain. Highlights included the Eliminator Kamikaze Drone by Aerosys Aviation and TEJASVAAN by Maraal Aerospace. SecureDApp launched SecureTrace for forensic blockchain analysis, xIoTz introduced a compliance framework, and Saptang Labs presented BlackFence for cyber threat intelligence. The event featured panel discussions and startup pitches, emphasizing collaboration between government, academia, and industry. Prof. Manindra Agrawal, Director of IIT Kanpur & Chairman of C3iHub stressed the need for robust, indigenous cybersecurity solutions to ensure India’s technological sovereignty.

India’s Space Startup Boom: Private Players Collaborate with ISRO

India’s private space sector is booming, led by startups like Skyroot Aerospace, Agnikul Cosmos, Dhruva Space, Bellatrix Aerospace, and Pixxel. These firms are collaborating with ISRO on missions such as Gaganyaan, contributing launch vehicles, satellite manufacturing, and propulsion systems. A ₹1,000 crore venture capital fund has been approved to boost the space economy, supporting innovation and private participation in satellite launches and Earth observation. On National Space Day 2025, Hon’ble Prime Minister Shri Narendra Modi announced goals of 50 rocket launches annually and five space-tech unicorns in five years. He emphasized integrating space education through Olympiads, hackathons, and geospatial learning, and introduced an “Astronaut Pool” to train young Indians.

Indian Startups Raise $283 Million Amid Funding Dip (Aug 18–23)

During the week of August 18–23, 16 Indian startups raised a total of $283.33 million, marking a 16.6% decline from the previous week’s $340.55 million. Growth-stage deals dominated with $271.7 million, led by Weaver Services ($170M), Amnex Technologies ($52M), and R for Rabbit ($27M). Early-stage startups raised $12.13 million, with notable deals from Smart Kitchen Appliances, House of Biryan, and Edgehax. Bengaluru led city-wise with 6 deals. AI and foodtech topped segment-wise activity.

JKEDI Hosts Startup Boot Camp at GDC Sumbal to Inspire Student Entrepreneurs

JKEDI conducted a startup boot camp at GDC Sumbal under the J&K Startup Idea Challenge to foster entrepreneurial spirit among students. Around 100 students participated, with 20 pitching ideas to a panel of experts from JKEDI, J&K Bank, DIC, DECC, and the college. The panel appreciated their creativity and offered valuable feedback. The session concluded with an engaging exchange of ideas, encouraging students to view entrepreneurship as a viable career path. 

Centre Injects ₹211 Crore into Space Startups Under Fund of Funds Scheme

The Indian Government has infused ₹211 crore into the space sector under the Fund of Funds for Startups (FFS) scheme, boosting innovation and entrepreneurship. Hon’ble Union Commerce Minister Shri Piyush Goyal highlighted support for startups like Ethereal X, driving India’s rise as a global space power. Operated via SIDBI, FFS backs SEBI-registered AIFs investing in startups. Hon’ble Prime Minister Shri Narendra Modi emphasized private sector participation and announced upcoming launches, including India’s first private PSLV and communication satellite, marking a new era in space-tech development.

Korea’s Unicorn Support Program Powers Startup Scale-Up and Global Reach

South Korea’s Unicorn Support Program, led by KIBO, offers a tiered framework—Baby Unicorn, Baby Unicorn Plus, and Pre-Unicorn—to help startups scale globally. It blends venture capital with government-backed guarantees, addressing critical funding gaps. Startups receive market development funds, special loan guarantees, and mentoring via KISED. With up to ₩20 billion in support for later-stage firms, the program strengthens Korea’s global competitiveness by enabling early-stage survival, international expansion, and infrastructure investment.