Startup Spotlights

India’s startup narrative is undergoing a fundamental rewrite in 2025. The spotlight has decisively shifted from the rapid, low-margin cycles of consumer internet to the R&D-intensive, high-impact world of deep-tech. This new chapter is defined not by ‘hustle’ but by hard science, driven by startups leveraging cutting-edge technologies like artificial intelligence, quantum computing, and space technology to solve India’s most pressing structural challenges.

India has officially passed a monumental entrepreneurial milestone. The DPIIT-recognized startup ecosystem has now crossed 2.01 lakh (201,000) entities as of October 2025. This incredible growth is more than a number; it’s the engine of a profound economic transformation.

The Indian deep-tech investment landscape has welcomed a significant new player. BYT Capital, a venture capital firm founded by seasoned investors Amit Chand and Dinesh Kumar, has unveiled its debut ₹180 crore ($21.5 million) Category II AIF. This fund enters a surging market, contributing to 2025’s wave of new capital that has seen a 39% year-on-year rise in new fund announcements, totaling over $12.1 billion. BYT’s strategy is distinct: to act as a patient capital powerhouse for early-stage, IP-led ventures operating at the most challenging and promising frontiers of science and engineering.

In a striking signal of confidence in India’s deep-tech ambitions, Bengaluru-based aerospace startup Airbound has secured $30 million in a fresh funding round led by Greenoaks Capital. This investment, with participation from Lightspeed Venture Partners, arrives just two months after an $8.65 million seed round, bringing the young company’s total funding to over $40 million. This rapid-fire fundraising highlights surging investor appetite for the potentially transformative impact of drone technology on India’s vast logistics sector.

Based on a detailed analysis of India’s 2025 tech funding landscape, the startup ecosystem is undergoing a strategic recalibration. While overall investment has declined, the funding is now flowing more selectively towards mature, high-impact sectors and ventures with a clear path to profitability. Here is a clear summary of the key trends and what they