Top Startup News: Key Policies, Funding Trends & Innovation Highlights This Week | 27th October

India’s startup landscape continues to pulse with energy as new policies, government initiatives, and innovation challenges redefine the country’s entrepreneurial future. From Bihar’s ambitious vision to emerge as a technology hub, to Haryana’s ₹100 crore venture fund empowering youth-led enterprises, state and central governments are shaping a more inclusive and innovation-driven economy. Meanwhile, partnerships like the DPIIT–Kotak Mahindra Bank tie-up are deepening financial and institutional support for founders. Across the country, ecosystems from Tamil Nadu to Pune are prioritizing long-term growth over rankings, while India’s record-breaking presence in Forbes Asia 2025 cements its global standing. This week’s roundup captures the pulse of progress — from visionary policymaking and deeptech investments to global collaborations and grassroots innovation.

Top Startup News: Policy Pulse and Government Initiatives 

Vision for Bihar: Building Technology Hubs to Empower Youth

Hon’ble Prime Minister Shri Narendra Modi, in his recent address, emphasized the need to transform Bihar into a technology and startup hub. The vision includes creating local employment opportunities to curb youth migration and fostering innovation-led development. He urged young people to engage actively and learn from past experiences, positioning technology-driven growth as central to Bihar’s future trajectory.

Haryana Govt and SVCL Launch ₹100 Crore Atmanirbhar Startup Venture Fund

Haryana Industries and Commerce Department has signed a ₹100 crore contribution agreement with SIDBI Venture Capital Ltd. (SVCL) to launch the Atmanirbhar Startup Venture Fund. This initiative aligns with the state’s budget announcement to promote entrepreneurship and support youth-led startups. The fund will target scalable ventures across sectors like AI, health-tech, agri-tech, and clean energy. It aims to provide financial assistance, market linkages, and foster private sector participation. The move reflects Haryana’s commitment to building a robust startup ecosystem and positioning itself as a global innovation hub. source (published on 23rd Oct 2025) Ecosystem Development and Institutional Support.

DPIIT–Kotak Mahindra Bank Tie-Up to Strengthen Startup Support Nationwide

The Department for Promotion of Industry and Internal Trade (DPIIT) has signed an MoU with Kotak Mahindra Bank to offer DPIITrecognized startups access to zero-balance accounts, working capital loans, digital banking tools, and mentorship. The collaboration aims to integrate policy and financial support, helping startups scale from ideation to expansion while fostering a self-reliant entrepreneurial ecosystem.

ET Startup Awards to Spotlight India’s Innovation Ecosystem in Bengaluru

Hon’ble Union Ministers Shri Piyush Goyal, Minister of Commerce and Industry and Hon’ble Union Minister of Railways; Minister of Information and Broadcasting; and Minister of Electronics and Information Technology, Shri Ashwini Vaishnaw will be the guests of honour at the 11th edition of the ET Startup Awards in Bengaluru on October 31. The event will celebrate India’s top entrepreneurial talent, with over 350 leaders from the startup and technology ecosystem in attendance. Winners across eight categories include Urban Company (Startup of the Year), Ashish Agrawal of Peak XV Partners (Midas Touch), and Prukalpa Sankar of Atlan (Woman Ahead).

Tamil Nadu Prioritizes Ecosystem Strength Over Rankings in Startup Push

Tamil Nadu is focused on building a globally competitive startup ecosystem through long-term structural reforms rather than chasing rankings or optics says, Mission Director & CEO of StartupTN Shri Sivarajah Ramanathan. Since the launch of StartupTN in late 2021, the number of DPIIT-recognized startups in the state has grown nearly sixfold— from around 2,000 to over 12,100. The state is engaging banks as investment partners and nurturing a $27 billion startup economy. The approach emphasizes inclusive growth, professional leadership from within the ecosystem, and sustained support across all stages of the startup journey.

BE Hub Hosts Roundtable to Strengthen Pune’s Startup Ecosystem

BE Hub, a startup accelerator powered by Saturo Technologies, hosted the Enablers’ Roundtable & Networking Session in Pune to foster collaboration among ecosystem builders, academic leaders, and innovation enablers. The event featured lightning talks, moderated discussions, and group synthesis to generate actionable insights for scaling startups and bridging academia with industry. Participants explored strategies to position Pune as a hub for AI-driven growth and future-ready entrepreneurship. The session concluded with networking over high tea, reinforcing partnerships across institutions and accelerators. BE Hub continues to support startups with mentorship, funding access, and go-to-market solutions.

India’s Startup Ecosystem Shines with Record Representation in Forbes Asia 2025

India leads Forbes Asia’s 100 Startups To Watch in 2025, with 18 companies featured the highest among 16 countries. While the ecosystem is just two decades old, Indian startups have built not only products but the supporting infrastructure from scratch. Companies like Rapido and PhonePe have tackled local challenges with scalable solutions, from affordable mobility to digital payments. Indian startups now span sectors including AI, health tech, space, cleantech, and rural commerce, raising billions in funding and expanding globally. Brands such as Foxtale and Rozana showcase digital-first consumer innovation. Yet, the ecosystem still needs long-term investment, deeper R&D, and stronger academia-industry collaboration to produce global tech giants. The 2025 list highlights both India’s entrepreneurial depth and its potential to shape the future of business in Asia.

VCs Shift Focus to Deeptech as India’s Startup Ecosystem Matures

Zerodha co-founder Mr. Nithin Kamath highlights a strategic shift in India’s venture capital landscape, with investors now backing startups offering complex, deeptech solutions. As traditional sectors like e-commerce and fintech saturate, VCs are seeking differentiated, high-impact ventures. Kamath notes that India’s maturing ecosystem—fueled by better education, cheaper internet, and rising risk appetite—is attracting global capital. Despite a slowdown in Q3 2025 funding, exits hit a seven-year high, reflecting investor focus on profitability. Mr. Kamath hopes the ecosystem continues to deepen, enabling Indian startups to solve both local and global challenges.

Innovation and Product Spotlight

Indore Startup’s Drone Achieves 18,000 ft Altitude in Ladakh Testing

Pisarv Technologies, an Indorebased startup, has successfully tested its advanced drone ‘Nabh Rakshak’ at an altitude of 18,000 feet in Ladakh under military surveillance. Designed to operate in extreme conditions, including -40°C temperatures, the drone is built for defense and internal security applications. It features night vision, anti-hacking capabilities, and independence from foreign GPS systems. The company has developed multiple drone variants for use by the Indian Army, Navy, Air Force, and other public sector entities. This milestone highlights India’s growing capabilities in indigenous, high-performance drone technology.

Splink Uses AI to Unlock Hidden Talent in Indian Schools

Hyderabad-based startup Splink, founded by Mohit Mathur, is revolutionizing talent discovery in Indian schools through its AI-powered platform, Splink Pro. Using smartphone-based assessments, the platform analyzes cognitive, physical, and nutritional data to identify and nurture student potential. A standout case is 13-year-old Charan, whose sprinting talent and injury risk were flagged by the system, leading to expert training and zero injuries. Backed by sports icon Pullela Gopichand, Splink aims to reach 500 schools, especially in Tier 2 and rural areas. The startup bridges gaps in grassroots talent development, aligning with India’s education and sports missions.

Odisha Startup Secures Patent for Marine Waste-Based Medical Innovation

Odisha-based startup Natnov Bioscience, led by young scientist Dr. Siddhartha Pati and collaborator Dr. Debabrat Panda, has received a patent for transforming marine waste—such as shrimp, fish, and crab shells—into medicinal applications. Their innovation utilizes Chitosan, a biopolymer derived from shellfish, for capsule coating and other biomedical uses. The startup has developed six products in high demand globally and exports to eight countries. This breakthrough not only promotes sustainable use of marine waste but also creates employment for tribal youth and supports India's bioeconomy goals.

Funding and Investment Trends

India Quotient Raises $129 Million to Fuel Early-Stage Innovation

Early-stage venture capital firm India Quotient has closed its fifth fund at $129 million (₹1,132 crore), with backing from both domestic and global investors. The fund will support pre-seed to idea-stage startups across sectors like SaaS, fintech, D2C, agritech, consumer brands, and content platforms, with cheque sizes ranging from ₹1 crore to ₹15 crore. The firm aims to help founders achieve product–market fit and sustainable growth before chasing valuations. With over 100 startups backed to date, India Quotient continues to champion India-first solutions and founder-led innovation.

Reclaiming Innovation: Unlocking Domestic Capital for India’s Startup Future

As reported in Observer Research Foundation (ORFonline), a leading Indian think tank, an expert argues that India must reduce its reliance on foreign capital, which currently constitutes over 83% of startup funding. Despite having over 190,000 DPIIT-recognized startups and 120+ unicorns, domestic financial instruments and regulatory reforms remain underutilized. The article emphasizes the need to build techno-sovereignty by mobilizing indigenous capital, ensuring that the wealth generated by Indian entrepreneurs benefits the nation. This shift is crucial for insulating India’s innovation ecosystem from global liquidity cycles and geopolitical uncertainties.

Indian Startup Funding Dips to $347 Million Amid Fewer Deals: Between October 20–25, only 8 Indian startups raised a total of $347.44 million, marking a 50% drop from the previous week. Growth-stage deals dominated, led by Uniphore with a $260 million Series F round backed by NVIDIA, AMD, and others. UnifyApps and Wonderland Foods also secured significant funding. Early-stage deals included CapitalXB, Megaliter Varunaa, Fundamento, Stylox Fashion, and Michezo Sport. Bengaluru and Delhi-NCR led in deal count, while AI startups topped sectoral interest.

From Around the World and Strategic Partnerships

Turku’s Startup Ecosystem Grows Stronger with Software & Business Services Leading

Turku’s startup scene is thriving, with Software and Business Services leading at 37%, up from 33% last year. According to the 2025 survey, 88% of startups plan to stay in the region, citing a more favorable environment. Other active sectors include Healthcare & MedTech (18%), IT & Hardware (10%), and Cleantech & Energy (10%). The region is becoming more international, with 52% of startups using English as their working language. A new startup hub is also underway, further boosting innovation.

ASEAN-Korea Startup Week 2025 Fosters Innovation and Cross-Border Collaboration

Held in Seoul, the ASEAN-Korea Startup Week 2025 brought together 30 startups from 10 ASEAN nations for workshops, networking, and visits to Korea’s innovation hubs. Startups in AI, healthcare, and climate tech engaged with Korean investors. For the first time, AKC’s acceleration program was held in-person, strengthening mentorship and cross-border collaboration.

Hub71 Launches Hub71+ Life Sciences to Accelerate Health Innovation

Abu Dhabi’s global tech ecosystem Hub71 has launched Hub71+ Life Sciences, a specialist platform aimed at accelerating innovation in biotech, medtech, and digital health. Announced at Hub71’s annual Impact Event, the initiative offers startups direct access to regulators, hospitals, investors, and industry partners. It aligns strategically with the Department of Health – Abu Dhabi, Emirates Drug Establishment, and the HELM cluster, reinforcing Abu Dhabi’s position as a global launchpad for life sciences. With 12 founding and anchor partners, the ecosystem supports clinical validation, market access, and commercialization of transformative healthcare solutions.

Active Startup India Challenges and Competitions

iCreate Drone Challenge 2025 Launched to Set New Global Benchmarks in Drone Innovation: iCreate Drone Challenge is an initiative conceived to unleash the innovative potential of India’s brightest minds in Drone technology. With a vision to identify, nurture, and accelerate groundbreaking drone technologies, the challenge seeks to push the boundaries of performance, efficiency, and affordability, while also fostering component indigenisation. This challenge is vast in scope, encompassing innovations across the spectrum — from micro, small, medium, and large drone types to both electric and non-electric fuel systems.

Zepto Launches ‘Pitch in 10’ to Empower Consumer Product Startups

Zepto, in partnership with Startup India and DPIIT, has launched the Nova Pitch in 10 Programme to accelerate India’s consumer product and manufacturing startups. Startups in FMCG, fashion, hardware, and electronics can pitch their innovations in 10 minutes to Zepto’s leadership. Selected startups will gain access to Zepto’s hyperlocal network of 1000+ hubs, enabling nationwide distribution, enhanced consumer discoverability, and logistical support. The initiative aims to overcome retail entry barriers and promote “Make in India” products. Applications are open from 29 September to 28 October 2025.

Thermo Fisher Launches BioVerse Challenge to Accelerate India’s Biotech Startups

Thermo Fisher Scientific has unveiled the BioVerse Challenge 2025 to fast-track biotech innovation in India. Targeting early and growth-stage startups in biologics, medtech, agri-biotech, and green biotech, the program offers access to advanced technologies, mentorship, and skill-building. Up to 20 startups will be selected as Trailblazers, gaining full access to Thermo Fisher’s India facilities, while 50 Rising Stars will receive expert guidance and collaboration opportunities. The initiative aims to strengthen India’s bioeconomy by supporting scalable, market-aligned biotech solutions. Applications are open until 31 January 2026.

CIMSME Fintech Challenge

The Chamber of Indian Micro Small and Medium Enterprises (CIMSME) launched the Fintech Challenge to discover scalable solutions that help startups and MSMEs prepare bankable business project reports and financial projections. DPIIT-registered startups and Udyam-certified MSMEs can apply by 28 February 2026. The challenge addresses expert support gaps and high rejection rates due to poor financial documentation. Top 25 applicants will receive incubation, mentorship, marketing assistance, and podcast features. Additionally, 100 startups/MSMEs will get IPR support. The challenge includes idea submission and pitch deck evaluation stages. Application end date is 28 th Feb 2026.

Brandworks Concept to Commercialisation Challenge 2025

Brandworks has launched the Concept to Commercialisation Challenge 2025 to support DPIIT-recognized electronics hardware startups. Focus areas include AR/VR, automotive, IoT, and renewable energy. Up to 15 startups will receive ₹3 lakh each, plus access to production infrastructure, mentorship, and market networks. Applications close on 26 November 2025.

Optimizing Cement Operations with Generative AI

JK Cement has launched a challenge to develop generative AI platforms for autonomous cement plant operations. The initiative focuses on optimizing energy use, product quality, and sustainability across grinding, clinkerization, fuel substitution, and logistics. Startups of all stages can apply by 31 October 2025. Selected teams may receive up to ₹50 lakh in PoC funding, access to plant data, and strategic partnership opportunities. Finalists will be evaluated via interviews and pilot proposals.