Top Startup News Today: Policy Reforms, IPO Buzz & Innovation Highlights | 3rd November

From game-changing policy reforms and deeptech discussions to record-breaking funding rounds and global recognitions — last week was nothing short of transformational for India’s startup landscape. SEBI’s new promoter rule gave founders renewed confidence ahead of blockbuster IPOs like Lenskart’s, while the government rolled out fresh innovation drives to empower youth and strengthen the MedTech and biotech sectors. Across the country, incubators, universities, and corporates joined forces to fuel entrepreneurship — and Indian startups continued to grab the global spotlight with breakthroughs in defence tech, biotech, and AI. Here’s your full weekly roundup of everything that shaped the startup and innovation ecosystem last week.

Policy Pulse and Government Initiatives

SEBI’s Promoter Rule Empowers Founders in New-Age IPOs

Lenskart’s Peyush Bansal Shares Perspective: As Lenskart prepares for its ₹7,300 crore IPO, co-founder Shri Peyush Bansal emphasized the value of SEBI’s updated promoter designation rules for startup founders. The “promoter” tag, he said, brings emotional commitment and long-term accountability, signaling deeper skin in the game. Despite selling shares worth over ₹2,000 crore, Lenskart’s four promoters will retain a significant 17–18% stake—unprecedented among new-age IPOs. Mr. Bansal views valuation as a market-driven outcome, focusing instead on customer value creation. The IPO reflects a broader shift in India’s startup ecosystem toward founder-led governance and sustainable public market strategies.

MSDE Launches National Innovation Drive to Empower NSTI Students as Entrepreneurs

In a landmark initiative, the Ministry of Skill Development and Entrepreneurship (MSDE), in collaboration with BITS Pilani’s incubator PIEDS and Aditya Birla Capital Foundation (ABCF), has launched the Navonmesh Protsahan Spardha—a national innovation challenge for over 10,000 students across 33 National Skill Training Institutes (NSTIs). The program aims to transform vocational learners into job creators by offering mentorship, incubation, and funding support. Special focus is placed on inclusive innovation through NSTIs for Women, aligning with Startup India and Skill India missions to foster grassroots entrepreneurship.

Policy Reforms Propel India’s MedTech Sector Toward Global Leadership

India’s MedTech sector is undergoing a transformation, driven by strategic policy reforms that prioritize indigenous innovation, reduce import dependency, and align regulations with global standards. Government initiatives like MedTech Mitra, launched by ICMR and CDSCO under NITI Aayog, offer end-to-end support to startups—from ideation to commercialization. With a projected market growth from ₹1.02 lakh crore in FY24 to ₹4.27 lakh crore by 2050, the sector is becoming a global hub for medical devices, diagnostics, and digital health solutions. These reforms are fostering a robust ecosystem of funding, incubation, and talent development.

ET Startup Awards 2025: Shri Piyush Goyal Champions Deeptech, Domestic Capital, and Light Regulation

At the ET Startup Awards 2025 in Bengaluru, Hon’ble Union Minister of Commerce and Industry, Shri Piyush Goyal, emphasized India's commitment to fostering a robust startup ecosystem through light- touch regulation, domestic capital mobilization, and deeptech innovation. He urged startups to develop frontier technologies like AI, quantum computing, and robotics, and advocated for pension and insurance funds to invest in ventures, reducing reliance on foreign VC. Over 60 startups and VCs participated in a roundtable to push for reforms including extended Startup India benefits, tax incentives, and DSIR registration flexibility. The government reaffirmed its support with a ₹10,000 crore deeptech fund.

VCs & Founders Urge Govt To Introduce Tax Breaks To Spur Deeptech

Deeptech and semiconductor startups, along with top venture capitalists (VCs), urged Hon’ble Union Minister of Commerce and Industry Shri Piyush Goyal to introduce targeted tax incentives to spur investments in the deeptech sector. The demands came during a roundtable in Bengaluru, which saw representatives of 35 deeptech startups and over 30 leading VC firms interact with Goyal. The startups also underscored the need for extending Startup India recognition benefits for deeptech ventures beyond the current 10-year limit and bring further clarity around FCRA-related rules for R&D funding. They also emphasised the need for flexibility in fund regulations and reforms in Department of Scientific and Industrial Research (DSIR) registration norms to enable early- stage deeptech ventures to avail R&D-linked benefits.

Ecosystem Development and Institutional Support

JECRC University Sparks Rajasthan’s Startup Revolution with ₹1.8 Crore Funding Boost

JECRC University, Jaipur, has emerged as a key driver of Rajasthan’s startup ecosystem by launching the state’s largest funding initiative—₹1.8 crore—through its JECRC Incubation Centre (JIC) in partnership with MeitY Startup Hub. The initiative supports 12 promising startups across stages from ideation to scale-up, under national programs like TIDE 2.0 and GENESIS. Funding ranges from ₹7 lakh to ₹50 lakh, tailored to startup maturity. With over 80 startups supported and ₹8 crore disbursed over five years, JIC is empowering Tier-2 and Tier-3 innovators with co-working spaces, investor connects, and industry partnerships.

Kathua Emerges as North India’s Biotech Startup Hub with BioNEST Incubator Launch

Hon’ble Union Minister Dr. Jitendra Singh inaugurated the BioNEST Incubator at North India’s first Industrial Biotechnology Park in Ghatti, Kathua, positioning the region as a future leader in biotech-driven economic growth. With facilities for fermentation, tissue culture, and genetic processing, the park will incubate 25 startups annually, contributing to India’s 11,000-strong biotech startup ecosystem. Kathua’s rich biodiversity and strategic location make it ideal for innovation in agriculture, health, and bio-pharma. The initiative aligns with national goals to decentralize innovation and empower Tier-2 regions as engines of prosperity.

IKMC 2025 Showcases 150 Startups Driving Innovation for a Disrupted World

The 19th International Knowledge Millennium Conference (IKMC 2025), hosted by IKP Knowledge Park in Hyderabad, spotlighted over 150 innovators and startups under the theme “Beyond the Blueprint: Recalibrating Innovation for a Disrupted World.” The event featured TechX: The Startup Innovation Showcase, strategic investments including ₹1 crore in Progen Foods via the IKP Future Forward Fund, and ₹5 lakh grants to five young innovators under 25. Inaugurated by Shri Jayesh Ranjan and Prof. Vijay Chandru, IKMC reaffirmed Telangana’s commitment to biotech and deeptech innovation.

Wavex and T-Hub Partner to Accelerate Media-Tech Innovation in India

Wavex, a leading media-tech company, has partnered with T-Hub, India’s premier innovation hub, to support and scale media-tech startups across the country. The collaboration aims to provide startups with access to cutting-edge infrastructure, mentorship, and market opportunities in broadcasting, digital content, and immersive media. By leveraging T- Hub’s ecosystem and Wavex’s industry expertise, the initiative seeks to foster innovation in content creation, distribution, and monetization, positioning India as a global media-tech leader.

JKEDI Hosts Startup Boot Camps in Bhaderwah and Kishtwar to Ignite Youth Entrepreneurship

As part of the J&K Startup Policy 2024–27, the Jammu and Kashmir Entrepreneurship Development Institute (JKEDI) organized startup boot camps at the University of Jammu’s Bhaderwah Campus and Government ITI Kishtwar. These camps aimed to cultivate a vibrant entrepreneurial culture among students and aspiring innovators. Participants pitched ideas evaluated on innovation and market feasibility, while JKEDI officials highlighted policy provisions and support mechanisms. The initiative drew active participation from academia, industry, and government departments, reinforcing JKEDI’s role in decentralizing startup support across the Union Territory.

Panjab University VC Calls on Alumni to Power Innovation and Startup Growth

At the 6th Global Alumni Meet, Smt. Renu Vig, Vice-Chancellor of Panjab University, urged alumni to actively support the university’s innovation and startup ecosystem through mentorship, funding, and industry linkages. She highlighted alumni contributions to scholarships, placements, and expert sessions, and emphasized their role in shaping future changemakers. Distinguished alumni—including scientists, entrepreneurs, and civil servants—were honored, with some proposing initiatives like AI and robotics centers. The event showcased PU’s commitment to leveraging its alumni network for entrepreneurial and research excellence.

Innovation and Product Spotlight

Skyroot Aerospace Launches India’s First Private Rocket, Marking a New Era in Space Innovation

Hyderabad-based Skyroot Aerospace successfully launched Vikram-S, India’s first privately developed rocket, from ISRO’s Sriharikota facility. The suborbital mission, Prarambh, reached 89.5 km altitude and carried three payloads. Enabled by India’s liberalized space policy and support from IN-SPACe, the launch marks a major milestone for private space innovation. Skyroot, backed by over $68 million in funding, is pioneering 3D- printed rocket engines and aims for frequent satellite launches.

Zulu Defence Systems Scales Up Tactical Drone Production, Boosting India’s Defense Tech Capabilities

Bengaluru-based startup Zulu Defence Systems has ramped up production of its advanced HOVERBEE tactical reconnaissance drones, marking a significant shift from prototype development to full- scale manufacturing. The move reflects India’s growing emphasis on indigenous defense innovation and tactical drone deployment. The HOVERBEE drones are designed for real-time surveillance and battlefield intelligence, and their scalable production aligns with India’s broader goals under the Make in India and Atmanirbhar Bharat initiatives. This development positions Zulu Defence as a key player in India’s evolving unmanned systems landscape.

BonV Aero Wins SIDM Champion Award for Indigenous Defence Innovation

Odisha-based startup BonV Aero has been awarded the SIDM Champion Award (Special Jury) for its groundbreaking work in indigenous defence technology. Presented by Shri Rajnath Singh, Hon’ble Defence Minister, the award recognizes BonV Aero’s development of high-altitude, heavy-payload autonomous aerial systems—entirely designed and manufactured in India. These unmanned systems are built for tactical operations in extreme environments, showcasing advanced propulsion, rugged airframes, and mission autonomy. The recognition underscores Odisha’s growing role in India’s defence innovation landscape and aligns with national goals of self-reliance in strategic technologies.

Accubits Invent Secures Patent for Breath-Based Disease Screening Technology

Thiruvananthapuram- based deep-tech startup Accubits Invent Pvt Ltd has secured a patent for its VolTrac VOC sensor, a breakthrough in non-invasive disease screening. Developed at the Bio360 Life Sciences Park, VolTrac analyzes volatile organic compounds (VOCs) in breath and sweat to detect diseases like cancer, tuberculosis, and metabolic disorders in under 90 seconds, with 98.5% lab-verified accuracy. Founded by Nidhin Sreekumar, the technology draws inspiration from plant VOC communication and integrates AI, biotechnology, and material science. VolTrac is deployable in clinics, airports, schools, and telemedicine networks, making early diagnostics widely accessible.

Sambhajinagar Startup Wins Prestigious UN Award for Sustainable Innovation

A startup from Chhatrapati Sambhajinagar (Aurangabad) has earned global recognition by winning a United Nations award for its impactful work in sustainable development and innovation. The award celebrates the startup’s contribution to solving real-world challenges through technology and community-driven models. This milestone not only highlights the growing entrepreneurial spirit in Tier-2 cities but also reinforces India’s position in global innovation dialogues. The recognition is expected to catalyze further investment and support for startups emerging from non-metro regions.

Funding and Investment Trends

Accel and Prosus Join Forces to Scale LeapTech Startups in India

Global VC firm Accel and European tech investor Prosus have announced a strategic partnership to co-invest in India’s LeapTech startups— ventures at the intersection of science, engineering, and scalable innovation. Through the Atoms X program, Prosus will match Accel’s investments, offering founders a seamless pathway from seed to scale. This marks Prosus’s first global collaboration of its kind, aimed at institutionalizing long-term support for frontier innovators. The alliance targets sectors like advanced manufacturing, clean energy, and AI automation, positioning India as a global hub for transformative technologies.

Bessemer Bets Big on India’s AI Future, Backing Infosys, TCS, and HCL-Led Innovation

Bessemer Venture Partners is doubling down on India’s AI-driven transformation, spotlighting the country’s IT giants— Infosys, TCS, and HCL Technologies—as key enablers of enterprise AI adoption. The firm sees India evolving from a service-led model to a product and platform-driven innovation hub, with startups and corporates alike leveraging AI for global competitiveness. Infosys, in particular, stands out for its strong deal momentum, revised growth guidance, and leadership in AI integration. Bessemer’s bullish stance reflects a broader trend of VCs aligning with India’s digital and deeptech ambitions, positioning the country as a global AI powerhouse.

Indian Startups Raise $334.88 Million in Weekly Funding, Led by Snapmint and Mem0

Between October 27 and November 1, 34 Indian startups raised a total of $334.88 million, with 5 growth-stage and 23 early- stage deals. Leading the growth-stage was Snapmint, securing $125 million in a Series B round, followed by Snabbit ($30M) and IntrCity SmartBus ($28M). On the early-stage front, Mem0, an AI startup, led with $24 million, while Optimo Capital raised $17.5 million. Bengaluru topped city-wise deal count, and AI, fintech, and e-commerce dominated sectoral funding. Additionally, Blume Ventures announced a $175M initial close of its fifth fund.

October 2025 Records Second-Highest Startup Funding at $1.73 Billion

India’s startup ecosystem saw a major funding surge in October 2025, raising $1.73 billion, making it the second-highest funded month of the year after January. The spike was driven by mega rounds from Zepto ($450M), Uniphore ($250M), and significant investments in Snapmint and Dhan. E-commerce led sectoral funding with $527.4M, followed by fintech ($410.5M) and AI ($395.2M). Bengaluru dominated city-wise funding with $1.02B across 48 deals, while Mumbai and Delhi-NCR followed. IPO activity also picked up, with Lenskart and Groww preparing to list. Layoffs and M&A activity declined, signaling ecosystem stability.

From Around the World and Strategic Partnerships

India’s Startup Ecosystem Set for Global Takeoff, Says BEENEXT Partner Anirudh Garg

At the FII9 Summit in Riyadh, Anirudh Garg, Partner at BEENEXT, highlighted India’s evolving startup landscape, predicting a shift from unicorn hype to “mini-IPOs”—startups listing at valuations of $500M–$1B and compounding steadily. He emphasized India’s middle-class consumption boom as the next decade’s growth engine, with BEENEXT backing brands in cosmetics, QSRs, and affordable furniture. Garg also spotlighted India’s role in the ‘China Plus One’ strategy, investing in manufacturing sectors like chemicals and aerospace. The vision: build for the world from India, leveraging domestic demand and global export potential.

India’s AI Chip Startups Surge as Global Tech Veterans Lead Deeptech Revolution

India’s startup ecosystem is witnessing a deeptech renaissance, with former executives from Intel, AMD, and Texas Instruments launching AI chip startups to address infrastructure bottlenecks in artificial intelligence. These ventures are part of a broader push by the Indian government to strengthen domestic semiconductor design capabilities, aligning with national self-reliance goals. The startups are targeting hardware innovation, including GaN-based chips, and are actively forming global partnerships, especially with Japan’s advanced semiconductor ecosystem. This signals India’s growing role in the global chip supply chain and its ambition to lead in AI hardware innovation.

Indo-Danish Udupi Startup Converts Cashew Waste into Biofuel and Biochar, Pioneering Green Innovation

MASH Makes, an Indo-Danish climate tech startup, has established India’s first industrial-scale biofuel and biochar carbon removal plant near Hebri in Udupi district. Using cashew industry residues, the facility has produced 2,900 metric tonnes of biochar and 1,050 metric tonnes of biofuel through a proprietary thermochemical process. The biofuel targets hard-to-abate sectors like shipping, while biochar enhances soil fertility and generates carbon credits. With 65% local employment and plans to diversify feedstock, the plant exemplifies a clean, circular economy model. MASH Makes has committed ₹100 crore investment in Karnataka.

African Startups Face Stricter Investor Scrutiny Amid Funding Recovery

Following a sharp funding dip in 2024, African startups are now navigating a more selective investment landscape. While venture capital flows are rebounding—with seed-stage funding up 40% to $171 million in H1 2025—investors are demanding stronger fundamentals over storytelling. Startups like PipeOps, an AI-powered cloud automation platform, are adapting by focusing on revenue and product validation. The shift reflects a broader trend: investors are returning to basics, prioritizing metrics and sustainable growth. This evolution is reshaping Africa’s startup ecosystem, especially for early-stage ventures seeking capital in a post-boom environment.

Indian Embassy in Kathmandu Launches IN-SPAN to Boost Cross-Border Startup Collaboration

The Indian Embassy in Kathmandu has opened applications for IN-SPAN, a cross-border startup initiative connecting India and Nepal’s entrepreneurial ecosystems. Selected Nepali startups will undergo an 8-week fully funded training program at IIT Madras, supported by IIT Madras Pravartak incubator. The initiative builds on past India-Nepal startup engagements and aims to foster innovation, mentorship, and commercialization. Applications are open until November 15, with selection based on merit and interviews. IN-SPAN strengthens bilateral ties through digital, entrepreneurial, and people-to-people connectivity.

Active Startup India Challenges and Competitions

COMEUP Global Startup Festival 2025 Opens Applications for Indian Startups

Hosted by the Ministry of SMEs and Startups, Republic of Korea, the COMEUP Global Startup Festival is one of Asia’s largest startup events, taking place from 10–12 December 2025 at COEX, Seoul. The summit will convene startups, investors, and corporates from Korea and around the world. Indian startups can apply if they are DPIIT- recognized, travel-ready, and have a clear Korean market expansion vision. The program is sector agnostic and open to startups across all stages—from ideation to scaling. Travel and accommodation costs are to be borne by the startups.

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.

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.

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.

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 28th Feb 2026.