Kerala’s Agri-Tech Boom & More | Indian Startup News This Week

From Kerala’s jackfruit innovators going national to IIT Madras launching a ₹200 Cr deep-tech fund, this week captured the pulse of India’s rapidly evolving startup landscape. While AI-native startups drive a fresh wave of VC activity, biotech and quantum tech are surging ahead with government backing. Plus, Zolve’s UPI-powered bank branch and IndiGo’s maiden VC fund show how corporate and fintech giants are shaping the future.

Here’s your curated wrap of the most exciting Indian Startup News developments this week—spanning agriculture, AI, biotech, spacetech, and more.46

Top Startup News This Week 

Kerala Agri-Startups Earn National Spotlight

Six agri-startups from Kerala Agricultural University’s RAFTAAR Agri-Business Incubator will be recognised in New Delhi under the RKVY-RAFTAAR program. Led by Shri K.P. Sudheer, the Kerala team will showcase innovations like Dr Jackfruit India (Beyond Snacks), Zaphon Repurpose (Sunbird Straws), and TMJ Foods (vitamin D2 mushroom drink). The event, presided over by the RKVY Advisor, celebrates excellence in agri-innovation and incubation. These startups reflect Kerala’s growing strength in sustainable agriculture, food innovation, and eco-friendly products, positioning the state as a rising force in India’s agri-startup ecosystem.

NIPER Guwahati: Fueling Innovation in Northeast India:

The National Institute of Pharmaceutical Education and Research (NIPER) Guwahati is emerging as a key innovation hub, driving the startup ecosystem in Northeast India. With advanced research in drug development, nanotechnology, and biotechnology, the institute fosters cutting-edge solutions to healthcare challenges. Its incubation centres—Bio-NEST and Atal Incubation Centre—have supported 37 startups, filed six patents, and raised ₹3.6 crore in funding. Ventures like Suriya Eye Products and Nutriciana Healthcare exemplify its impact. NIPER Guwahati’s commitment to entrepreneurship and scientific excellence is transforming the region into a vibrant pharmaceutical and biotech innovation landscape.

IIT Madras to Launch ₹200 Cr VC Fund for Early-Stage DeepTech Startups

The Indian Institute of Technology Madras (IIT Madras) is launching a ₹200 crore venture capital fund, named the IITM Alumni Fund, to support the next generation of unicorns. With a surge in startups emerging from the institute, the fund aims to nurture high-potential ventures through Series-A and pre-Series-A investments. Though backed by IITM’s ecosystem, the fund will operate as a legally separate entity, ensuring focused investment and growth support. This initiative reflects IIT Madras’s commitment to scaling deep-tech innovation and strengthening India’s startup landscape through alumni-driven capital and mentorship.

India’s Global Startup Surge: Bold Ideas, Twin Engines and the Next Frontier

India is rapidly evolving from a local startup hub to a global innovation powerhouse. Over 40% of seed-funded startups now target international markets from day one, marking a shift from service exports to product exports. Driven by a twin-engine model—building for India and the world—India’s ecosystem is thriving in SaaS, deep tech, and AI. With 27 SaaS unicorns already and projections of 100+ by 2030, the country is poised to lead globally. Venture capital investments surged from $1B in 2010 to $12B in 2024, with expectations to reach $40B by 2030.

AI-Native Startups Driving the Next Wave of Venture Capital in India

India’s venture capital ecosystem is witnessing a sharp shift towards AI-native startups, with over $577 million raised across 82 deals between January and July 2024. These startups are not just applying AI but building core IP and vertical-specific solutions, making them highly attractive for investors. Early-stage funding dominates, with seed-stage startups raising the maximum capital. Sectors like healthtech, logistics, legal tech, and skilling are seeing rapid AI-driven innovation to solve India-specific challenges. Investors see AI-native companies as structurally different from SaaS startups, commanding 3-4x higher valuations due to faster scaling, automation-led margins, and defensible moats. Startup India aims to further catalyze this momentum by fostering AI innovation that addresses grassroots needs and drives inclusive growth. 

India’s Early-Stage Funding Sees Value Dip in Q2

India’s early-stage startup funding witnessed a slowdown in Q2 2025, despite a promising start to the year. While deal volume remained relatively stable, the total investment value dropped significantly, reflecting cautious investor sentiment. Angel, pre-seed, seed, and pre-Series A rounds saw fewer high-value transactions, indicating a shift toward leaner, more selective funding. This trend suggests startups must focus on sustainable growth and sharper value propositions to attract capital. The dip in funding value, despite consistent deal activity, highlights a recalibration in India’s startup investment landscape. 

Professors Lead India’s Deep Tech Startup Revolution

India’s top tech professors are stepping out of labs and into boardrooms, launching deep tech startups that are attracting serious VC attention. Institutions like IITs, IISc, IIITs, and BITS Pilani have seen a 20–30% year-on-year rise in professor-founded ventures. These startups, rich in intellectual property, are reshaping sectors from aerospace to molecular diagnostics. Success stories like Agnikul Cosmos, ePlane, and Algorithmic Biologics prove that academic innovation can scale commercially. With changing mindsets and supportive incubators, professors are embracing entrepreneurship, turning research into real-world impact and positioning India as a global deep tech leader.

India Home To 11,000 Biotech Startups

India’s biotech startup ecosystem has grown exponentially, with over 11,000 startups now active, up from just 50 in 2014. Hon’ble Minister of State for Science and Technology Shri Jitendra Singh attributes this surge to strong policy support and institutional partnerships. The government aims to build a $300 billion bioeconomy by 2030, emphasizing early industry collaboration and financial backing. This growth reflects India’s strategic push to become a global biotech leader, with startups driving innovation across healthcare, agriculture, and industrial biotech. Continued support and investment will be crucial to sustain momentum and unlock the sector’s full potential. 

India’s Governance Goes Multilingual with WaveX’s Kalaa Setu Challenge

India is advancing multilingual governance through WaveX’s Kalaa Setu Challenge, an initiative integrating AI-powered language technologies into public services. It enables real-time translation and voice interfaces across 22 Indian languages, enhancing accessibility and citizen engagement. Supported by government and private stakeholders, the challenge invites startups to build scalable solutions for inclusive communication. This marks a major step in digital transformation, empowering citizens from diverse linguistic backgrounds to interact seamlessly with governance platforms and public services.

Zolve, A Unicorn Startup Launched India’s First UPI-Powered Bank Branch in Bengaluru

India’s fintech innovation reached a new milestone as unicorn startup Zolve launched the country’s first UPI-powered bank branch in Bengaluru. This branch operates entirely on Unified Payments Interface (UPI), eliminating the need for physical cash, cards, or traditional banking infrastructure. Customers can perform all banking transactions via UPI, making the branch fully digital and paperless. The initiative aims to redefine banking accessibility and convenience, especially for younger and tech-savvy users. Zolve’s move signals a shift toward next-gen banking models, blending fintech agility with mainstream financial services.

AWS Launches Space Accelerator Program to Support Startups Across Australia, India, Japan

Amazon Web Services (AWS) has launched its first-ever Space Accelerator Program in India, selecting 24 startups across diverse regions including Mangaluru and Port Blair. The 14-week initiative offers up to $100,000 in AWS credits, technical training, mentorship, and access to advanced tools like AI and data analytics. Startups span areas such as satellite imagery, propulsion, and space tourism. This follows AWS’s MoU with ISRO and IN-SPACe, reinforcing its commitment to India’s growing spacetech sector. The program also extends to startups in Australia and Japan, aiming to build a global innovation network in space technology.

EaseMyTrip Cofounder Launches AI Venture Studio for Multi-Sector Innovation

Mr. Rikant Pitti, cofounder of EaseMyTrip, has launched an AI-powered venture studio aimed at nurturing early-stage startups across sectors like logistics, fintech, and healthcare. The studio will provide strategic support, funding, and AI-driven infrastructure to help founders scale faster. With a focus on solving real-world problems using artificial intelligence, Mr. Pitti aims to create a robust ecosystem for innovation. This initiative reflects a growing trend of successful entrepreneurs reinvesting in India’s startup landscape, bridging experience with emerging tech to fuel the next wave of disruptive ventures.

Global Quantum Leap: Mapping the Rise of the Quantum Tech Industry and the Emergence of Indian Startups

Quantum technology is entering a commercial phase, with global investments surging. In Q1 2025, Quantum Computing (QC) startups raised over $1.25 billion, more than double Q1 2024’s funding. QC now accounts for over 70% of all quantum-related investments, driven by VCs and governments. India is emerging as a promising hub, supported by the $750 million National Quantum Mission (NQM). Startups like QNu Labs and QPIAI are leveraging academic and government R&D. However, India still lags in VC funding and global visibility. Balancing strategic public support with agile private investment is key to building a globally competitive quantum ecosystem.

Govt Backs Student Startups: DPIIT CoCreate Pact to Spark Deep-Tech Innovation

The Government is boosting student-led innovation through the DPIIT CoCreate collaboration, a strategic initiative to support deep-tech startups emerging from academic institutions. Spearheaded by the Department for Promotion of Industry and Internal Trade (DPIIT), the pact aims to connect students, startups, and industry leaders to accelerate commercialization of research-driven ideas. It offers mentorship, funding access, and incubation support. By fostering collaboration between academia and industry, the initiative seeks to build a robust pipeline of deep-tech ventures, positioning India as a global hub for cutting-edge innovation and entrepreneurial talent.

IndiGo Ventures Takes Off with ₹450 Cr Maiden Fund, Backs Hyderabad Startup

IndiGo Ventures, the corporate VC arm of IndiGo Airlines, has marked the first close of its ₹450 crore venture fund, signaling a strong entry into India’s startup ecosystem. The fund aims to invest in early-stage startups across aviation, travel, and consumer tech. Its first investment is in a Hyderabad-based startup focused on enhancing passenger experience. With SEBI approval and a strategic focus on innovation, IndiGo Ventures plans to leverage its industry expertise and network to support disruptive ventures. This move reflects a growing trend of corporates fueling startup growth through dedicated investment arms.

Jammu & Kashmir Entrepreneurship Development Institute (JKEDI) Hosts Vibrant Startup Meet in Pampore

The Jammu & Kashmir Entrepreneurship Development Institute (JKEDI) hosted a vibrant Startup Meet at its Pampore campus, featuring 20 stalls by startups and RAMP trainees. Hon’ble Deputy Chief Minister Shri Surinder Choudhary commended the region’s entrepreneurial drive and reaffirmed government support. Key launches included the Startup Policy 2024–27, Startup Idea Challenge, and DPR Portal. The event also featured interactive sessions with policymakers, underscoring JKEDI’s role in empowering youth through training, mentorship, and strategic support for sustainable enterprise development in J&K.

Flipkart Ventures Launches Leap Ahead 4.0 to Empower Early-Stage Startups

Flipkart Ventures has unveiled Leap Ahead 4.0, the latest edition of its accelerator program designed to support early-stage startups across India. The initiative will select up to 10 startups, offering equity investments between $200K–$500K, along with mentorship, market access, and ecosystem support. Focus sectors include AI, fintech, healthtech, and supply chain innovation. With over 14 startups supported since inception, Leap Ahead 4.0 aims to nurture scalable, tech-driven solutions aligned with Flipkart’s digital commerce vision. Applications are now open, inviting founders to join a growing network of innovation and impact.

IPOs Lead India’s 2024 Startup Exit Wave, But M&As Likely to Catch Up

India’s startup ecosystem saw a strong exit wave in 2024, led by initial public offerings (IPOs), with firms like Ola Electric and FirstCry going public. IPOs dominated exits, but mergers and acquisitions (M&As) are expected to rise in 2025 as startups seek strategic consolidation amid funding challenges. Experts suggest M&As will become more prominent due to investor pressure for returns and market maturity. The exit landscape is diversifying, with secondary sales and buybacks also gaining traction. This signals a shift toward a more balanced and sustainable exit environment for Indian startups.

IICA North East (NE) Conclave 2025: Building NE Startup Hub

The IICA North East Conclave 2025 spotlighted the region’s potential as India’s next startup hub. Held in collaboration with the Indian Institute of Corporate Affairs (IICA), the event emphasized building a robust entrepreneurial ecosystem in the Northeast. Key discussions focused on policy support, startup incubation, and private investment. With growing interest from corporates and VCs, and government backing through initiatives like Startup India, the region is poised for transformation. The conclave highlighted the need for tailored infrastructure, skill development, and regional innovation clusters to unlock the North East’s potential as a vibrant contributor to India’s startup economy.

Funding and Acquisitions in Indian Startups This Week [July 07–12, 2025

Indian startups raised $123 million across 18 deals between July 7–12, 2025, marking a modest uptick in funding activity. Key sectors included fintech, SaaS, and healthtech, with notable rounds by Zolve, CureBay, and Actyv.ai. Early-stage deals dominated, reflecting continued investor interest in innovation despite macroeconomic caution. In the M&A space, two acquisitions were reported, signaling strategic consolidation. Bengaluru remained the top city for deal activity. While funding levels remain below 2021–22 highs, the steady flow of capital suggests cautious optimism among VCs and founders navigating a maturing startup ecosystem.