Top Startup News: India’s Startup Ecosystem Sees Big Policy Push and Global Partnerships

India’s startup landscape is buzzing with fresh policy pushes, global collaborations, and sector-specific breakthroughs. From the government unveiling BHARATI to boost agri-food startups and target $50 billion in exports by 2030, to DPIIT forging partnerships with ICICI Bank and Pfizer to strengthen fintech and medtech ecosystems, the week has been marked by bold institutional moves. States like Bihar and Haryana rolled out new funds and incubators, while universities such as Assam Agricultural University set milestones with their first incubated startup. Adding to this momentum, India climbed to third place globally in tech startup funding, reaffirming its position as one of the world’s most vibrant innovation hubs.

Policy Pulse & Government Initiatives

BHARATI to Support 100 Agri-Food Startups, Target $50 Billion Exports by 2030

The Agricultural and Processed Food Products Export Development Authority (APEDA) launched its new initiative, BHARATI, to boost India’s agri-food exports. Hon’ble Union Minister for Commerce and Industry, Shri Piyush Goyal, chaired the meeting along with Hon’ble Union Minister of Food Processing Industries, Shri Chirag Paswan and the UAE’s Minister of Foreign Trade, Dr. Thani bin Ahmed Al Zeyoudi, in New Delhi. BHARATI has been designed to support 100 agri-food startups, promote innovation and boost exports to 50 billion dollars by 2030. BHARATI stands for Bharat’s Hub for Agritech, Resilience, Advancement and Incubation for Export Enablement.

DPIIT and ICICI Bank Join Hands to Boost Startups

The Department for Promotion of Industry and Internal Trade (DPIIT) has signed a Memorandum of Understanding (MoU) with ICICI Bank to extend targeted support to DPIIT-recognised startups across India. The partnership, formalized on September 4, 2025, is hosted under the Startup India initiative and is designed to offer startups a structured engagement programme involving accelerator access, mentorship, pilot opportunities, and ecosystem integration. ICICI Bank will launch a comprehensive Startup Engagement Programme hosted on the Startup India portal, offering access to its Mumbai-based accelerator, mentorship, pilot programs, and networking with investors and corporate clients.

Assam Agricultural University Supported Startup ‘Assure Biovention’ Paves New Path for Northeast’s Agri-Innovation

Assam Agricultural University (AAU), Jorhat, has set a significant milestone in strengthening the startup ecosystem of Northeast India by supporting its very first startup—Assure Biovention Pvt. Ltd. The initiative marks a pioneering step, making AAU the first state agricultural university in the country to incubate a startup under its own innovation and entrepreneurship policy. The startup, founded by Professor Bidyut Kumar Sarmah and Mr. Binod Hazarika (co-founder), has commercialized five bio input products—Biopushti, Bioshakti, Bioveer, Bioguard, and Biosona—developed under DBT-NECAB with funding from DBT, Government of India. source (published on 3rd Sept 2025)

India Ranks 3rd in Tech Startup Funding

Why It Matters, and Where the Ecosystem Is Headed; India’s startup ecosystem has strengthened its global position in H1 2025. The country ranks third globally in terms of startup funding, with startups raising $2.5 billion in Q1 alone. The country now hosts the world’s third-largest startup hub with 1.57 lakh DPIIT-recognized startups and over 100 unicorns. Key government initiatives like FFS, SISFS, and CGSS have played a crucial role. Investors are prioritizing sustainable growth and operational efficiency. The government is prioritizing deep-tech, AI, and R&D as future growth drivers. India’s startup journey is maturing into a movement of building businesses that last. source (published on 4th Sept 2025)

DPIIT Inks MoU with Pfizer to Strengthen MedTech Startup Ecosystem

In a significant step towards strengthening India’s healthcare innovation ecosystem, the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, signed a Memorandum of Understanding (MoU) with Pfizer. The collaboration aims to support and scale up medtech startups in India by providing them with access to global best practices, mentorship, and funding opportunities. This initiative is part of the broader Startup India campaign and reflects the government’s commitment to fostering innovation in the medical technology sector.

Bihar Launches Renewable Energy Development Fund to Support Startups

The Bihar government has introduced the Bihar Renewable Energy Development Fund (BRDF) to support startups and young entrepreneurs in the renewable energy sector. The initiative offers financial aid, access to research labs, certification facilities for solar equipment, and pilot project resources. It prioritizes innovation and incubation centers to help scale technologies from pilot to mass production. Skill development centers will be established to train technical manpower. Officials believe this will enhance production capacity, reliability, and employment. Experts suggest the fund could position Bihar as a national leader in renewable energy and foster locally developed green technologies. source (published on 6th Sept 2025)

Haryana Government to Establish World Class Incubator and Promote Startups and Innovation

Haryana Chief Minister Nayab Singh Saini has announced that the state government would soon set up a “world-class” startup incubator in Gurugram. It will be developed in partnership with leading startups, corporates, and educational institutions. The incubator, named H-Hub, will have modern facilities such as plug-and-play workspaces, meeting rooms, high-performance computing, and innovation labs for research in new fields. Saini said this step aligns with Prime Minister Narendra Modi’s Make in India and Design in India vision. source (published on 5th Sept 2025)

Hon’ble Union Minister Emphasizes Startup-Linked Economy as Key to India’s Growth

Hon’ble Union Minister Dr. Jitendra Singh stated that India’s future growth hinges on building a “startup-linked economy” rooted in strong industry partnerships. Speaking at the launch of Chandigarh University’s Campus Tank, he stressed the need for early industry engagement to sustain startups. He highlighted success in sectors like biotech, agriculture, and space, and noted that startups are emerging from smaller towns. India’s innovation ranking rose from 81 to 39 globally, with 60% of startups being women-led. Women scientists leading missions like Aditya L1 and Chandrayaan-3 reflect India’s inclusive innovation ecosystem. source (published on 7th Sept 2025)

Ecosystem Development & Institutional Support

Agentic AI Startups in India Face Scale and Adoption Challenges

As per LinkedIn post by Analytics India Magazine (AiM), In under two years, over 100 startups have emerged across India with a focus on building agentic AI systems—tools designed not just to understand prompts but to take autonomous actions. Despite a nation of 750 million smartphone users, adoption of consumer-facing AI agents remains negligible. Krutrim’s Kruti promises to book cabs, order food, and generate images, while Fractal launched Kalaido and Vaidya. Yet, many remain proof-of-concept apps. “It’s not about inferior tech or lack of money. It’s a game of volume and patience,” says Ashutosh 🎤 at GFF and IIA Annual, co-founder and CEO of RevRag.

Startups, VCs Push Ecosystem for Semiconductor Industry Growth

Government incentives, state-led procurement of semiconductor chips and products, and stronger venture capital funding can propel India towards becoming a product nation, industry leaders said at SEMICON India 2025. Shri Ajai Chowdhry, Co-founder at HCL and Founder and Chairman at Foundation at EPIC emphasized, “Once products are designed, it’s essential that government business goes to startups making these products.” Other experts noted that every product company needs an anchor customer, and guarantees must be in place to ensure quality products are purchased. The consensus was clear: if investors support firms building chips within the ecosystem, it could be revolutionary.

IIT Kanpur SIIC Launches FUEL 2025 to Empower Startups

The Startup Incubation and Innovation Centre (SIIC) at IIT Kanpur hosted FUEL 2025, a strategic investor meeting at its Noida Innovation Hub. The event connected 20 SIIC-incubated startups with investors, corporates, and public institutions. Startups pitched innovations in clean energy, defence, healthcare, deep tech, and more. Key addresses were delivered by Prof. Manindra Agrawal, Shri Devesh Chaturvedi, Shri Rahul Garg, and others. SIDBI’s SEED Equity Support and EXIM Bank’s Seed Fund were announced. MoUs were signed with Samved VC and the Council for Start-up India. FUEL 2025 reinforced SIIC’s mission to scale lab-to-market innovations.

New Realities for Startups: Fortune India Boardroom Highlights Challenges and Opportunities in India’s Maturing Ecosystem

The Fortune India Boardroom highlights that with India's GDP growth and a robust startup ecosystem, founders face challenges like HR management and geopolitical tensions. In FY25, venture-backed Indian startups raised over ₹44,000 crore from public markets. “Today's founders must deal with much more from the surface area of threat and opportunity for a country that is worth $4 trillion,” says Pranav Pai, Founding Partner, Chief Investment Officer, 3one4 Capital. “The public markets are unforgiving and they are also very transparent,” adds Ananth Narayanan, former Myntra CEO and now founder & CEO of BRND.ME. “When the clutter cuts out, the impending hard problems will remain and tough founders… will stay put,” says Abhay Hanjura, Co-founder, Licious.

Tim Draper on India’s Startup Boom, Future of Innovation, and Why Trust Matters Most 

In an exclusive conversation hosted by Ms. Sandhya Bharti, Head of Editorial IP & News at Indian Startup Times, Tim shared his thoughts on India’s startup growth, his investment philosophy, and why trust and honesty matter more than anything else for founders. Final Thoughts: India’s Moment is Now. As the discussion concluded, Tim expressed optimism for India’s future in the global innovation landscape. With a thriving entrepreneurial culture, supportive government policies, and platforms like Indian Startup Times enabling meaningful connections, the country is well-positioned to lead the next wave of global disruption.

Innovation & Product Spotlight

ET Startup Awards 2025 | Best on Campus

Nawgati finds the right track: Fuel-tech startup Nawgati triumphed in the Best on Campus category at The Economic Times Startup Awards 2025, with the jury lauding its sharply defined problem statement, strong scalability potential and ability to create meaningful impact. It edged out four other contenders – Try My Style, a beauty-tech startup; Stimuler, an artificial intelligence (AI)-driven learning app; Bidaal, an industrial safety and surveillance company; and ISMO Bio-photonics, a biotech research firm.

Google for Startups Accelerator: AI for Energy Welcomes 29 Startups

The Google for Startups Accelerator: AI for Energy is welcoming 29 innovative startups in two groups from North America and Europe. These groundbreaking companies are developing cutting-edge solutions, from electricity generation to grid operations and flexibility. During these intensive 10–12 week programs, these startups will receive dedicated mentorship from Google experts and our partners, hands-on technical support and access to our AI tools and Google Cloud infrastructure. The goal is to accelerate the development of AI-driven solutions for sustainable and reliable energy. This initiative is part of Google’s commitment to a sustainable future.

From Startup to Global Powerhouse: Garuda’s Drone Strategy for the Future

Garuda Aerospace is pursuing a robust growth strategy ahead of its potential IPO and global expansion. The company’s key strategies include significantly scaling up manufacturing capacity to meet rising demand, with a focus on indigenous production to reduce import dependency. They are also accelerating R&D to develop next-generation drones with enhanced AI capabilities and specialized payloads. Furthermore, a multi-pronged approach to global expansion is being executed, targeting key international markets like the USA, Australia, and the Middle East, while forging strategic partnerships to ensure their solutions resonate with diverse needs worldwide.

Funding & Investment Trends

U.S. and Indian VCs Just Formed a $1B+ Alliance to Fund India’s Deep Tech Startups

Eight U.S. and Indian venture capital and private equity firms — including storied investors Accel, Blume Ventures, Celesta Capital, and Premji Invest — have formed an unusual coalition to back India’s deep tech startups, pledging more than $1 billion over the next decade to strengthen U.S.-India tech ties. Called the India Deep Tech Investment Alliance, the group aims to channel long-term private capital into deep tech ventures. “Over the next decade, startups will build in India and export breakthrough solutions to the world.

Global Startup Funding In August Fell To Lowest Monthly Total In 8 Years

Global venture funding in August fell to the lowest monthly amount since 2017, Crunchbase data shows. Startup funding last month totaled $17 billion — down 12% from a year ago and a massive 44% drop month over month. The slowdown marks a respite from the frenzied pace of venture investment in the first half of 2025 — especially for fast-growing AI companies — when startup funding increased by more than a third year over year. AI led global startup funding again last month, totaling $4.8 billion. Healthcare and biotech followed, with startups in the sector raising $4 billion globally.

India Ranks 3rd in Tech Startup Funding: Why It Matters, and Where the Ecosystem Is Headed

India’s startup ecosystem has strengthened its global position in H1 2025. The country ranks third globally in terms of startup funding, with startups raising $2.5 billion in Q1 alone. The country now hosts the world’s third-largest startup hub with 1.57 lakh DPIIT-recognized startups and over 100 unicorns. Key government initiatives like FFS, SISFS, and CGSS have played a crucial role. Investors are prioritizing sustainable growth and operational efficiency. The government is prioritizing deep-tech, AI, and R&D as future growth drivers. India’s startup journey is maturing into a movement of building businesses that last.

Funding and Acquisitions in Indian Startup This Week [Sep 01–Sep 05]

During the week, 28 Indian startups raised a total of $348 million, including 6 growth-stage and 18 early-stage deals, while a startup kept its funding undisclosed. Growth and late-stage funding totaled $285 million, driven by Tessolve’s $150 million round from TPG. Citymall raised $47 million, Seekho $28 million, Blue Tokai $25 million, Colive $20 million, and Offgrid Energy Labs $15 million. Firstclub secured $23 million in Series A. Bengaluru led with 14 deals. Healthtech topped with 6 deals. Seed funding led with 8 deals. Urban Company and boAt secured SEBI nod for IPOs. MPL laid off 60% of its workforce.

Global Expansion & Strategic Partnerships

Why Taiwan Is the New Hotspot for Indian Tech Startups

Surprisingly, Taiwan has emerged as a new hotspot for Indian tech startups, offering a unique mix of advanced infrastructure, business-friendly policies, and access to cutting-edge technology. One of the biggest attractions is Taiwan’s reputation as a global leader in hardware and semiconductor manufacturing. Taiwan complements India’s software talent with hardware excellence. Universities and innovation hubs in Taipei, Hsinchu, and Taichung foster collaborations between academia and industry. Taiwan’s geographic location and trade networks provide Indian startups with a gateway to East Asian markets. Cultural compatibility and ease of collaboration also play a vital role.

India-UAE Startup Exchange Launched to Foster International Expansion

The Foundation for Innovation and Technology Transfer (FITT) at IIT Delhi has inaugurated the India-UAE Startup Exchange. The initiative aims to assist Indian startups in entering the UAE market, promoting international growth, and enhancing collaboration through strategic discussions and partnerships in various high-tech sectors. The announcement was made during a prestigious event hosted by H.E UAE Ambassador to India, Abdulnasser Alshaali, highlighting the strategic significance of such bilateral collaborations. Featuring participants from 40 FITT-incubated startups, the dialogue facilitated discussions on market expansion strategies, leveraging the UAE's strategically favorable environment and location.

Disrupt Asia 2025: Sri Lanka’s Premier Startup Festival Driving Travel Innovation, Investment, and Collaboration with India and Beyond

Disrupt Asia 2025 will be a defining moment as Sri Lanka moves towards becoming a model for sustainable tourism worldwide. The event will feature the International Tourism Research Conference (ITRC) and the International Tourism Leaders’ Summit (ITLS), gathering world scholars, specialists, and practitioners to discuss the future of sustainable tourism. More than 20 countries are participating. The initiative aims to create an open platform for youth participation, encourage sustainability, and foster collaboration across public and private sectors, academia, and civil society.

From Startup to Global Powerhouse: Garuda’s Drone Strategy for the Future

Garuda Aerospace is pursuing a robust growth strategy ahead of its potential IPO and global expansion. The company’s key strategies include significantly scaling up manufacturing capacity to meet rising demand, with a focus on indigenous production to reduce import dependency. They are also accelerating R&D to develop next-generation drones with enhanced AI capabilities and specialized payloads. Furthermore, a multi-pronged approach to global expansion is being executed, targeting key international markets like the USA, Australia, and the Middle East, while forging strategic partnerships to ensure their solutions resonate with diverse needs worldwide.

Swiss AI Firm and Indian Startup Partner to Revolutionize Diagnostics in India

Swiss AI healthcare pioneer Emeralgo AI, via its parent company Computer Vision AG, has signed an MoU with Delhi-based women-led startup Mc&Me Techserve Pvt. Ltd to launch an AI-driven diagnostics venture in India. Led by Stefan Voser and Pallavi Mehta, the €25 million (₹225 crore) initiative will focus on AI-powered MRI diagnostics, rural healthcare access, and training 500+ data analysts. Emeralgo will hold a 76% stake. The venture aims for ₹300 crore revenue by year three, with 30% annual growth. It will also establish R&D hubs in cardiology and oncology, promoting scalable, inclusive healthcare innovation.