India’s startup ecosystem is set for a transformative year in 2025, building on the momentum of 2024. However, challenges such as high interest rates, geopolitical tensions, and trade tariffs could introduce turbulence, urging founders and investors to adopt more cautious growth approaches. Ritesh Banglani, Partner at Stellaris Venture Partners, is excited about the significant advancements in artificial intelligence and electric vehicles.
“The widespread adoption of these technologies by mainstream consumers is very exciting. The investment environment is also maturing, with more funds being made available for innovative ventures,” Banglani said. Stellaris Venture Partners has closed a $300 million fund, which they intend to deploy by investing in startups that are pioneering in AI and EV spaces.
“We believe these sectors have the potential for high returns and can drive substantial societal changes. We are looking at companies that can scale rapidly and have a clear path to profitability,” Banglani explained.
India’s startup landscape in 2025
Dinesh Pai, Head of Investment at Rainmatter, believes the next few years will be crucial for their organization. “Our primary aim is to foster innovation in fintech and sustainable tech. We plan to support entrepreneurs who are building solutions to tackle real-world problems, especially those relevant to emerging economies,” Pai said.
Vaibhav Domkundwar, CEO of Better Capital, highlighted the exciting potential in health-tech and ed-tech, in addition to the significant trend of quick commerce. “The pandemic accelerated digital adoption in these sectors, and we anticipate continued rapid growth. Another surprising trend has been the resurgence of interest in deep tech, especially in areas like quantum computing and renewable energy solutions,” Domkundwar noted.
As India’s startup scene prepares for a milestone year in 2025, the focus remains on innovations in AI, EVs, health-tech, ed-tech, and deep tech. However, the necessity for strategic and cautious growth amid global uncertainties is also a key consideration for entrepreneurs and investors alike.
