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India’s Startup Capital Shift: What’s Getting Funded Now

Funding ecosystem for growing startups

Focus Keyword: funding round recap

Introduction

Before 2020, consumer apps, food delivery, and fintech accounted for the majority of startup investments in India, with little attention paid to innovation at the infrastructure level. Tech-first industries like consumer, SaaS, and fintech dominated venture capital activity between 2014 and 2020, according to industry reports like Bain & Company’s India Venture Capital Report.

In 2025, funding trends are shifting toward deeper, infrastructure-level innovation across enterprises and emerging tech.

Notable Funding Rounds – 2025

  • Plenome Tech raised ₹6.5 Cr in seed funding from Manish Gandhi & Ovington Capital — deep tech and AI in the bio space.
  • Yali Capital closed a ₹893 Cr alternative investment fund (AIF) to support India’s deep tech startups.
  • Neysa Networks raised $50 million from Matrix Partners, Nexus Venture Partners, and NTTVC to develop GenAI infrastructure.

For more, visit Business Standard and LinkedIn for expert insights.

Fastest‑Growing Sectors in India (2025 Investment Outlook)

Sector Why It's Growing Trending Focus Areas
Green Energy Strong policy push & ESG adoption Solar, EV charging, renewables
Healthcare & Pharma Rise in health-tech + post‑COVID innovation Biotech, diagnostics, telemedicine
IT & Tech Services Global demand for digital & cloud transformation GenAI, cybersecurity, SaaS platforms
Automobile & EVs Surge in EV demand, battery innovation Smart mobility, EV components
Banking & Fintech Digital inclusion & UPI-led growth Neo-banks, digital lending, payment APIs
Infrastructure National infra projects & smart city mission Roads, metro, logistics hubs
FMCG & Consumer Goods Rural demand recovery, brand premiumization D2C brands, health food, personal care

Key Insight

These sectors are growing rapidly due to investor confidence, government policy support, and market demand trends. The shift to enterprise-level and deep tech funding shows a maturing startup ecosystem ready to solve foundational challenges.

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Further Reading & Data Sources

  • Market Sector Analysis
  • Growing Sectors in the Indian Stock Market for 2025
  • Funding Rounds Explained – A Guide for Startups
  • Funding Rounds Explained: Series A, B, C, and Seed
  • Sectors Likely to Provide Excellent Returns in the Future

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