India’s startup ecosystem is starting the year on a strong and confident note. From the Prime Minister reflecting on a decade of Startup India in Mann Ki Baat to states doubling down on AI, deep tech and Centres of Excellence, today’s developments underline how innovation is becoming a national mission. Add to that global collaborations, record defence-tech funding, fresh bank-led grants, and major private investments in AI and space, and the message is clear — India’s startup story is no longer just about growth, but about scale, quality and global ambition.
Top Startup News Today
Hon’ble Prime Minister highlighted 10 years of Startup India in Mann ki Baat
Hon’ble Prime Minister Shri Narendra Modi in the 130th episode of Mann Ki Baat, hailed the remarkable 10-year journey of the Startup India initiative, calling young entrepreneurs the true architects of India’s innovation story. Launched in January 2016 with fewer than 500 startups, the ecosystem has grown to over 2 lakh recognised ventures, making India the world’s third-largest startup hub. Prime Minister highlighted how Indian startups are now active in cutting-edge sectors such as artificial intelligence, space, green hydrogen, biotechnology and semiconductors – areas once considered unimaginable. Emphasising the next phase of growth, he urged startups and industry to prioritise “quality, quality and only quality” to achieve global excellence and build a Viksit Bharat.
Uttar Pradesh to establish Centres of Excellence (COEs) to boost startup growth
The Government of Uttar Pradesh has approved 7 Centres of Excellence (COEs) under its startup policy, for which a total of Rs. 27.18 crore has been released so far. These CoEs focus on sectors such as AI, blockchain, MedTech, drone technology, 5G/6G telecom and additive manufacturing. These centres are located across Gautam Buddh Nagar, Lucknow, Kanpur Nagar, Saharanpur, and Ghaziabad, and are supported by premier institutions including IIT Kanpur, IIT Roorkee, IIM Lucknow, STPI Lucknow, and AKGEC Ghaziabad. Under the Government of Uttar Pradesh’s startup policy, each COE is provisioned to receive grant-in-aid of up to Rs. 10 crore over a period of 5 years from the date of establishment.
Proposed collaboration between Madhya Pradesh and the Israel Innovation Authority at WEF 2026
At the World Economic Forum (WEF) 2026 in Davos, the Government of Madhya Pradesh engaged with the Israel Innovation Authority (IIA) to explore technology-driven economic cooperation. Discussions focused on Israel’s innovation-led development model across frontier sectors, including quantum technology, ed‑tech, defence technology and water solutions. Israel highlighted its strong R&D ecosystem supported by private- sector participation and co-investment structures. Madhya Pradesh expressed interest in government‑to‑government collaborations, pilot projects and startup-led demonstrations under existing India- Israel frameworks. Both sides agreed to evaluate a formal mechanism for joint technology pilots and innovation partnerships, reinforcing MP’s commitment to global innovation networks.
Haryana announced series of initiative for the State’s startup ecosystem
The Chief Minister of Haryana has announced a series of major initiatives to strengthen the state’s startup ecosystem, including the proposed Haryana AI Mission. The mission will establish AI hubs in Gurugram and Panchkula with Rs. 474 crore World Bank assistance and aims to train 50,000 youth in emerging technologies. Additional measures include new incubation centres in industrial estates, enhanced financial support such as Rs. 10 lakh assistance per startup, and expanded research funding through the Haryana State Research Fund and a Rs. 2,000 crore Fund of Funds. These initiatives position Haryana as a growing hub for innovation and entrepreneurship.
Ecosystem Development and Institutional Support
IIT Roorkee Signs Strategic MoU with AccelESG
Indian Institute of Technology (IIT) Roorkee has entered into a strategic Memorandum of Understanding (MoU) with AccelESG India Private Limited, a leading platform focused on accelerating technology commercialization, start-ups, and industry-academia partnerships. The MoU aims to foster collaborative engagement in areas such as deep-tech innovation, start-up mentoring, technology transfer, capacity building, and market-oriented research. The partnership aims to enable IIT Roorkee and AccelESG India Private Limited to support early-stage ventures, facilitate industry-linked research outcomes, and strengthen pathways for translating academic innovation into scalable solutions with societal and economic impact.
Startup Republic Showcases Entrepreneurs Powering India’s Next Growth Story
Startup Republic, a nationwide initiative launched by PayU, is shining a spotlight on entrepreneurs from across India as the Startup India movement completes a decade. The campaign features 36 founders from every state and Union Territory, highlighting innovation beyond metropolitan hubs and celebrating grassroots entrepreneurship. Through short documentaries and digital storytelling, Startup Republic captures diverse journeys spanning sectors such as consumer goods, health, travel, and technology. The initiative reinforces the idea that innovation has no geographic boundaries and that India’s growth is being shaped by founders from Tier‑2 and Tier‑3 regions as much as major cities. Aligned with the vision of Startup India, the campaign underscores inclusive growth and the rising national impact of India’s startup ecosystem.
Indian startups to participate in Gulfood 2026
The Agricultural and Processed Food Products Export Development Authority (APEDA) to participate in Gulfood 2026, one of the world’s largest food and beverage exhibitions, to be held in Dubai from 26th January to 30th January. A key highlight of India’s participation is the BHARATI Pavilion, APEDA’s flagship initiative to promote export-ready agri-food and agri-tech startups. Eight high‑potential startups, selected through a national screening process, will present export‑ready solutions aligned with India’s “Farm to Foreign” vision.
Portuguese tech firms engage Karnataka startups to explore AI and Robotics Collaboration
Portuguese technology companies have engaged with Karnataka-based startups to explore strategic partnerships in AI, robotics, manufacturing, and cybersecurity. The interaction took place in Bengaluru during the Global Innovation Alliance (GIA) – Portugal Edition, hosted by Karnataka’s IT/BT Department. The meeting brought together Portuguese firms and Indian startups showcasing capabilities in industrial AI, automated inspection, manufacturing automation, and machine intelligence. Government officials and ecosystem leaders highlighted the GIA platform’s role in enabling outcome‑driven collaboration, pilot opportunities, and global market access.
Digital India Foundations builds platform for failed startups
Digital India Foundation has launched Phoenix Hub, a new platform designed to repurpose technology, innovations, and skilled talent from startups that have shut down or scaled back operations. It targets early‑stage startups with tangible assets such as working products, deployable code, or patents, particularly in areas like digital public infrastructure, SaaS, applied AI, and fintech. By salvaging value from failure, the initiative aims to reduce ecosystem waste and strengthen India’s startup resilience.
SanchiConnect and Tamil Nadu collaborate to support deep tech startups beyond metros
Deeptech enablement network SanchiConnect has partnered with the Government of Tamil Nadu and the Tamil Nadu Technology Hub (iTNT) to accelerate the growth of deep tech startups across the state, with a strong focus on Tier‑2 and Tier‑3 cities. The collaboration aims to build a decentralised innovation ecosystem by providing founders with structured mentorship, industry connect, market access, and investor networks. Beyond metro hubs, the initiative will support startups in technology validation, commercialisation readiness, and scalable growth across sectors such as climate tech, healthtech, mobility, and advanced manufacturing. The partnership reinforces Tamil Nadu’s push to make regional India a key driver of national and global deeptech innovation.
Defense Tech Startups Record Break‑Through Funding Surge in 2025
Defense‑technology startups recorded their strongest funding year ever in 2025, as investor interest surged in battlefield‑ready artificial intelligence and autonomous systems. Venture capital investment in the sector reached a record $49.1 billion, nearly doubling from the previous year, according to industry data. Equity funding alone more than doubled, significantly outpacing overall global venture growth. Rising global defense spending and the real‑world validation of drones and AI systems in active conflict zones have reshaped investor confidence in the sector.
IN‑SPACe partners with startups to build India’s first private earth observation constellation
IN-SPACe has partnered with four Indian space startups to develop the country’s first privately operated Earth observation satellite constellation. The consortium ‘Allied Orbits’ includes Pixxel, Dhruva Space, PierSight and SatSure. Under a public‑private partnership model, the group will invest over ₹1,200 crore over five years to deploy 12 satellites featuring optical, multispectral, SAR and hyperspectral imaging. The initiative aims to provide reliable Earth intelligence for government and commercial users while reducing dependence on foreign satellite data.
HDFC Bank plans to disburse Rs. 20 crore to startups
HDFC Bank has announced plans to disburse ₹20 crore by March under the FY26 edition of its Parivartan Startup Grants programme, aimed at supporting social impact–driven startups. The initiative will back 10 strategic projects across priority sectors such as climate innovation, agriculture and sustainable livelihoods, manufacturing and MSME innovation, financial inclusion, gender diversity, and emerging areas including AI and deep technology. Operated through an incubator‑led model, the programme enables partner incubators to manage startup selection, mentoring, and impact monitoring.
Innovation and Product Spotlight
IIT-BHU tableau showcases grand display of research, innovation
The Indian Institute of Technology (BHU), Varanasi, organised a grand and visually impressive tableau, highlighting excellence in research, technology and innovation. the innovation products at display included RC cars and ATV vehicles, designed to navigate challenging terrains, along with the Formula Student Car (F1 prototype). It was also highlighted that the IIT (BHU) team achieved significant national recognition in the NIDAR competition, organised by the Drone Federation of India. The team developed autonomous drones for disaster management.
Funding and Investment Trends
Weekly funding roundup: Indian Startups Raise $400 Million
Indian startups raised approximately $400 million between 17th January to 23rd January, registering a nearly sevenfold increase year‑on‑year, as per reports. While total deal count remained unchanged at 41 transactions, funding surged on the back of large rounds across high‑growth sectors including electric mobility, artificial intelligence, fintech, robotics, and consumer brands. Notable deals included GreenCell Mobility’s $89 million raise, AI startup Emergent’s $70 million round, and Juspay’s $50 million funding that made it India’s first unicorn of 2026. The trend signals renewed investor confidence despite cautious deal activity.
Materials Science Startup Whizzo Raises $15 Million in Series A Funding
Materials science-focused manufacturing startup Whizzo has raised $15 million in a Series A funding round led by Fundamentum, with participation from LB Investment and existing investors Lightspeed Venture Partners and BEENEXT. Founded by former Zetwerk executive Shrestha Kukreja, Whizzo operates as India’s first contract development and manufacturing organisation (CDMO) for technical textiles.
Blackstone finalises structured investment in AI Cloud Startup Neysa
Global alternative asset manager Blackstone has finalised a structured investment in Mumbai‑based AI cloud infrastructure startup Neysa, committing an initial $50-75 million in funding. The milestone‑linked deal values Neysa at around $300 million and allows Blackstone to increase its stake to a controlling position if agreed business targets are met. Neysa provides GPU‑led cloud compute and software platforms for enterprises building large‑scale AI applications. The transaction marks one of the largest investments in an Indian AI infrastructure startup.