India’s startup ecosystem begins the day on a note of structural reform and long-term ambition. From NITI Aayog’s push to make innovation accessible in every Indian language, to new incubation models, semiconductor policy upgrades, and state-led seed funding initiatives, today’s developments highlight how policy, institutions, and entrepreneurs are aligning for scale. Alongside deep-tech breakthroughs in healthcare, clean energy, and AI-led agriculture—and clear signals of a more disciplined funding environment—this morning’s roundup captures the ideas, investments, and infrastructure shaping the next phase of India’s startup journey.
Top Startup News Today
NITI Aayog’s LIPI: Breaking Language Barriers for Inclusive Innovation
NITI Aayog’s Atal Innovation Mission has launched the Language Inclusive Program of Innovation (LIPI) to make India’s startup ecosystem accessible beyond English. With only 10.4% of Indians fluent in English, nearly 90% of grassroots innovators remain excluded. LIPI aims to support innovators across the entire lifecycle—ideation, mentorship, funding, and compliance—in all 22 scheduled languages. Going beyond translation, it promotes inclusion by design, enabling innovators to learn tools and connect with vernacular investors. AIM is inviting stakeholder feedback until January 10, 2026, to co-create this framework, ensuring language never limits India’s innovation journey.
DST’s Inclusive Incubators Empower University-Led Startups
The Department of Science & Technology (DST) has set up 15 Inclusive Technology Business Incubators (i-TBIs) across universities to democratize innovation beyond metros. During a review at Delhi Technological University (DTU), Hon’ble Union Minister Dr. Jitendra Singh lauded the impact of the DST-supported i-TBI under the NIDHI program. DTU’s incubator has nurtured 15 startups, with three receiving ₹5 lakh Startup Ignition Grants to accelerate prototyping and commercialization. Focused on inclusivity and women-led ventures, the initiative provides end-to-end support—mentorship, infrastructure, and funding. He also emphasized universities as innovation hubs and reiterated the government’s commitment to expanding entrepreneurial opportunities nationwide.
Centre Plans DLI 2.0 With Co-Funding Model for Semiconductor Startups
The Government of India is set to launch Design-Linked Incentive (DLI) 2.0, introducing a 1:1 co-funding model where public funds match private investments to support semiconductor startups. This approach aims to ensure market validation and prevent misuse of funds, though concerns remain about smaller firms struggling to raise initial capital. DLI 2.0 removes the ₹15 crore cap, allowing large-scale projects and participation from major players. With an outlay of ₹5,000 crore, the scheme focuses on chips for consumer electronics, networking, and import substitution. Strict IP retention norms will safeguard Indian ownership, reinforcing India’s ambition to become a global semiconductor hub.
Defence Minister sets 15–20 year Deadline for India’s Weapons Self-Reliance, Praises Defence Startup Boom
Hon’ble Defence Minister Shri Rajnath Singh said India will become fully self-reliant in defence manufacturing over the next 15–20 years. He praised defence startups for creating solutions rooted in ground realities while meeting global standards. Speaking in Udaipur, he highlighted the need for society to stay informed about rapidly evolving innovations. India has climbed from 76th in 2014 to 39th in 2024 in the Global Innovation Index, he noted. The digital economy’s contribution to national income continues to rise. India is now the world’s third-largest startup ecosystem. He emphasized that true progress requires wisdom alongside knowledge. By 2047, he said, India must emerge as a developed, prosperous, and wise nation.
Goa Clears Seed Funding for Eight Startups Under 2025 Policy
Eight startups have been selected for incentives under the Seed Capital Scheme as part of the Goa Startup Policy 2025. The decision was taken at a meeting of the empowered committee chaired by Hon’ble Chief Minister Shri Pramod Sawant. Of the 27 applications received by the Startup and IT Promotion Cell, 16 were shortlisted after evaluation, with eight finally approved for funding. The scheme offers one-time assistance of up to ₹10 lakh to startups with viable products. Selected startups span sectors including IT, AI, health tech, tourism tech, media tech, edtech, e- commerce and fintech. The committee noted the strong innovation ecosystem emerging in Goa. Additionally,
₹50,000 each was awarded to 10 student projects under the Campus Innovation Scheme.
Chandigarh Notifies Operational Guidelines for Startup Policy 2025
The UT’s Industries Department has issued operational guidelines for the Chandigarh Startup Policy 2025, enabling startups and incubators to apply for benefits via the Start-In-Chandigarh portal. The policy aims to create over 200 startups in five years and strengthen incubators with grants for technology upgrades, mentorship programs, and sustenance allowances. Startups recognized by DPIIT and based in Chandigarh can access reimbursements for national and international events, along with annual competitions offering up to ₹2 lakh prize money and incubation support. An annual corpus of ₹10 crore has been earmarked, with provisions for government-led startup festivals to foster innovation and entrepreneurship.
Government Removes 3-Year Eligibility for Startups Under RDI Fund
At the 41st Foundation Day of the Department of Scientific and Industrial Research (DSIR), Hon’ble Union MoS Shri Jitendra Singh announced the removal of the three-year existence requirement for startups to access the Research, Development and Innovation (RDI) Fund. Now, newly formed startups can directly avail support through DSIR. He highlighted India’s strides under Hon’ble Prime Minister Shri Narendra Modi’s leadership, including opening nuclear and space sectors to private players. Key initiatives unveiled include guidelines for recognizing in-house R&D, Centres for Deep Tech Startups, the Promoting Innovations in Individuals, Start-ups and MSMEs (PRISM) TePP Outreach cum Cluster Innovation Centre (TOCIC), Innovator Pulse, and Creative India 2025 under the PRISM scheme, strengthening India’s innovation ecosystem.
Ecosystem Development and Institutional Support
HDFC Tech Innovators 2025 Honors 12 Startups Driving India’s Future
The 4th edition of HDFC Tech Innovators concluded in Mumbai on December 3, spotlighting 12 startups shaping India’s innovation landscape. Jointly hosted by HDFC Capital, HDFC AMC, and HDFC Bank, the program recognized 10 standout innovators and 2 emerging women founders selected from over 1,600 applications. Winners span critical sectors including fintech, proptech, sustainability tech, defense, and spacetech. The event featured keynote addresses emphasizing resilience, wealth creation, and technology-driven transformation. Winners gain access to investment opportunities, PoC support, and mentorship, reinforcing HDFC’s commitment to nurturing India’s entrepreneurial ecosystem.
IIT Guwahati Startup Engages 2,000 Students at Inter-IIT Tech Meet
Genuity IO Pvt. Ltd., a student-led startup incubated at IIT Guwahati BioNEST, co-sponsored Inter IIT Tech Meet 14.0, engaging nearly 2,000 students from 23 IITs. Founded by third-year students Adari Karthikeya and Shivansh Gupta, the startup curated a challenge on algorithmic optimization, pushing participants to apply innovative solutions to real- world problems. This marks a rare instance of a student-founded startup shaping the technical agenda of a national-level IIT event. Supported by IIT Guwahati and BioNEST, Genuity IO aims to drive agritech and AI- led innovation, reinforcing the Northeast’s growing role in India’s deep-tech ecosystem and student entrepreneurship landscape.
2025 Brings Discipline and Depth to India’s VC Landscape; 2026 to Reward Execution
India’s VC ecosystem demonstrated resilience in 2025, with $12.1 billion raised across new funds, a 39% YoY increase, cementing India’s position among the world’s top five VC markets. The year saw 18 IPOs, six new unicorns, and a shift toward profitability, governance, and operational rigor. Tier-2 and Tier-3 cities emerged as innovation hubs, while AI and deep-tech gained prominence, with nearly 90% of startups integrating AI. Domestic capital surged, reducing reliance on volatile global flows. Looking ahead, 2026 signals a more conviction-led funding environment, favoring clarity, monetization, and execution depth over growth-at-all- costs, with deep-tech, climate tech, and manufacturing poised for scale.
Rajasthan DigiFest-TiE Global Summit 2026 to Position State as AI & Startup Hub
Rajasthan will host the DigiFest-TiE Global Summit 2026 in Jaipur from January 4–6, aiming to attract over 10,000 participants, including startups, investors, and global tech leaders. Announced by Hon’ble Chief Minister Shri Bhajanlal Sharma, the event will feature 1,200+ founders and CEOs, sectoral sessions on AI and emerging technologies, and the release of the AI-ML Policy on January 6. The summit is expected to channel investments exceeding ₹200 crore and provide mentoring opportunities for startups under the iStart program. By fostering collaboration between industry, academia, and government, Rajasthan seeks to strengthen its position as a leading IT and innovation hub.
Him MSME Fest 2026 to Boost Entrepreneurship in Himachal Pradesh
The three-day Him MSME Fest 2026 will begin on January 3 in Shimla, aiming to foster entrepreneurship and industrial growth in Himachal Pradesh. The inaugural day will feature the ‘Startup Awards’ and a felicitation ceremony recognizing innovative startups and entrepreneurs who turned ideas into sustainable businesses despite limited resources. The event will be inaugurated by Hon’ble Chief Minister Shri Sukhvinder Singh Sukhu, alongside other dignitaries. It seeks to inspire youth to embrace innovation and self-reliance. A cultural evening showcasing Himachal’s heritage will follow, reinforcing the state’s identity and setting a positive direction for future economic growth.
NIE Mysuru Recognised as TBI Under Karnataka’s TBI 2.0 Initiative
The National Institute of Engineering (NIE), Mysuru, has been officially recognised as a Technology Business Incubator (TBI) under Karnataka’s flagship TBI 2.0 program. Supported by ₹10 crore from the Karnataka Innovation and Technology Society over five years, NIE-TBI will focus on agritech, energy, and AI-driven solutions aligned with the Karnataka Startup Policy 2022–2027. As part of the State’s ‘Beyond Bengaluru’ vision, 11 new TBIs are being set up to strengthen regional innovation ecosystems. NIE-TBI will offer advanced facilities, including agri-equipment testing, clean energy labs, green hydrogen systems, and AI-enabled precision farming, providing end-to-end support for startups from ideation to scale-up.
Innovation and Product Spotlight
Hydrovert Energy Pioneers Hydrogen Powertrains for Urban Mobility
Pune-based Hydrovert Energy, incubated at NCL’s Venture Center, is developing hydrogen fuel cell powertrains and generators as zero- emission alternatives to diesel and CNG engines. Founded by scientist-entrepreneur Satyajit Phadke and Supriya Patwardhan, the startup aims to transform cargo mobility and urban power generation. Its 10-kW hydrogen powertrain prototype for three-wheelers and hydrogen gensets are undergoing testing and certification. Supported by MEDA, NCL, and CIRT, Hydrovert plans pilot deployments for waste collection vehicles in Maharashtra. With institutional backing and growing investor interest, Hydrovert is positioning hydrogen technology as a scalable solution for clean, sustainable urban transport and energy in India.
Bengaluru Startup Voxxel Grids Builds India’s First Indigenous MRI Scanner
Voxxel Grids, a Bengaluru- based startup, has developed India’s first fully indigenous 1.5-Tesla MRI scanner, installed at Chandrapur Cancer Care Foundation near Nagpur. Backed by Zoho, the innovation eliminates the need for liquid helium and costly air-conditioning, reducing operational expenses by 40–50% compared to imported machines. This breakthrough addresses barriers to MRI adoption in smaller cities by lowering costs and simplifying infrastructure requirements. With an annual capacity of 20–25 units, the scanner aligns with the Made in India initiative and strengthens domestic medical technology manufacturing. Greater affordability promises expanded diagnostic access and improved healthcare infrastructure across India.
Sikkim-Based AI Startup Apuphi Secures German FDI at $4.4M Valuation
In a landmark deal for Northeast India’s startup ecosystem, Apuphi, an AI-driven career solutions platform from Sikkim, has raised foreign direct investment from Germany at a valuation of $4.4 million through Series I CCPS, fully compliant with Indian regulations. Founded by Diwash Kapil Chettri and Sulabh Raj Gurung, Apuphi addresses India’s employability crisis by offering AI-powered upskilling, job discovery, mentorship, and gig opportunities across career stages. The capital will fund AI infrastructure, product development, and nationwide user acquisition while retaining its operational base in Sikkim. This investment signals global confidence in non-metro innovation and India’s deep-tech potential.
AI Microscope Boosts Silk Farming Efficiency in Karnataka
The Central Silk Board (CSB), in collaboration with a Bengaluru-based startup, has developed an AI-powered digital microscope to help silk farmers detect silkworm diseases early and accurately. Piloted for three months at a cost of ₹40 lakh, the system increased testing capacity from 200 to 900 cocoon samples daily, reducing losses and improving silk quality. The AI-enabled tool also stores data for long-term analysis, aiding disease prevention and quality control. This innovation addresses past complaints about silk quality and significantly lowers manpower needs. CSB plans broader adoption alongside initiatives for authenticity checks and zero-waste protein extraction from pupae.
Funding and Investment Trends
India’s Startup Ecosystem Rebounds in 2025 with AI Unicorns and IPO Surge
India’s startup landscape rebounded strongly in 2025 after a two-year slowdown, adding seven new unicorns across AI, fintech, and consumer sectors, bringing the total to 125 valued at $366 billion. AI-driven ventures like AI.TECH, fintech leaders such as Navi, and consumer platforms like Jumbotail marked this growth. Reverse flips gained traction as firms like Razorpay and Meesho shifted headquarters back to India for domestic listings. The year also saw 18 tech IPOs, including Swiggy and Ather Energy, alongside record funding for deeptech, defense, and space-tech players like Skyroot and Agnikul. Expansion into Tier-2 and Tier-3 cities reinforced India’s position as a global innovation hub.
Bengaluru Leads India’s Startup Funding in 2025 with $4.6 Bn Across 300 Deals
India’s startup funding stabilized in 2025 at $11 billion across 936 deals, with Bengaluru reclaiming the top spot as the country’s leading hub. Bengaluru startups raised $4.6 billion across nearly 300 deals, driven by late-stage activity in ecommerce, fintech, and SaaS. Delhi NCR followed with $2.2 billion across 224 deals, while Mumbai secured
$2 billion across 146 deals, focusing on enterprise tech and fintech. Emerging hubs like Pune and Chennai gained traction, specializing in industrial tech and deeptech. Despite an 8% YoY dip, disciplined capital deployment, IPO momentum, and sectoral depth signaled a maturing ecosystem transitioning from hyper- growth to sustainable scale.
2025 Marks Record VC Exits Through IPOs and Strategic Sales
India’s startup ecosystem witnessed a surge in exit activity in 2025, signaling maturity and disciplined value realization. According to EY-IVCA, PE/VC exits hit USD 13.7 billion in Q3, up 61% YoY, with strategic sales contributing 63% of the total. IPO-led liquidity dominated, with 18 tech startups raising ₹41,283 crore, including Groww, Lenskart, Urban Company, Pine Labs, Bluestone, Ather Energy, and PhysicsWallah. Groww and Lenskart alone returned over ₹10,700 crore to investors. Secondary block sales added early liquidity, while sectoral diversification saw exits across fintech, EVs, consumer platforms, and edtech. These trends underscore a resilient exit market and multiple liquidity pathways for investors.
Weekly Startup Funding Inches Up to $110.22 Mn Amid Low Deal Activity
Between Dec 29 and Jan 03, Indian startups raised $110.22 million across three deals, up 15% from the previous week’s $95.54 million. Agritech player Arya.ag led with a ₹725 crore ($80.3M) Series D round from GEF Capital Partners. Early- stage deals included Knight Fintech securing $23.6M (Accel-led) and proptech startup Truva raising $6.32M from Stellaris and Orios. Mumbai dominated with two deals, while Delhi-NCR saw one. Segments funded: agritech, fintech, and proptech. Additionally, Zappfresh acquired 51% of Avyom Foodtech for ₹7.5 crore. Leadership churn continued with key exits at Blinkit, StudyIQ, and Ola Electric, while Mirae Asset appointed Puneet Kumar as CEO.