The Tech Panda takes a look at the investment temperament in the Indian startup ecosystem.
India has been attracting investments in several quarters. India’s central bank is set to double to 10% a cap on investment by individual foreign investors in listed companies, as it aims to boost capital inflows, according to two senior government officials and documents reviewed by Reuters.
According to Tracxn’s Geo Quarterly India Tech Report – Q1 2025, India ranks third globally amid funding recovery. A total of US$2.5B in funding was raised in Q1 2025. India ranked as the third largest funded country globally, surpassing Malta and Germany, and trailing the US and UK. Auto Tech, Enterprise Applications and Retail were the top-performing sectors. Delhi accounted for 40% of total funding in India, followed by Bengaluru at 21.64%. A total of 38 acquisitions were completed during this quarter.
As per a report by 3one4 Capital India is gaining a competitive edge in the global deep tech race, especially in AI in contemporary healthcare, clean mobility, and semiconductors. AI is transforming diagnostics, preventive care, and hospital automation, making high-quality healthcare more scalable and cost-efficient. Companies like Dozee have deployed AI-powered patient monitoring systems in 280+ hospitals, reducing ICU burden and enabling early intervention.
With 70% of new commercial vehicles in India projected to be EVs by 2030, the key challenges to scale remain charging infrastructure and battery efficiency. Companies like Exponent Energy are addressing this with ultra-fast charging technology that enables 0-100% charging in just 15 minutes, dramatically improving EV fleet efficiency, reducing downtime, and accelerating adoption across industries.
With $10 billion in government incentives and strategic public-private partnerships, the country is strengthening its semiconductor manufacturing ecosystem. Companies such as AGNIT Semiconductors are developing next-generation Gallium Nitride (GaN) chips that offer higher energy efficiency and performance, supporting critical industries from automotive to consumer electronics.
“India’s deep-tech sector is no longer a niche—it is maturing into an investment-ready, policy-backed, and globally relevant opportunity.” — Pranav Pai, Founding Partner & Chief Investment Officer, 3one4 Capital
“India’s deep-tech sector is no longer a niche—it is maturing into an investment-ready, policy-backed, and globally relevant opportunity. While the foundation is strong, scaling deep-tech innovation into commercially successful, globally competitive businesses will require sustained capital, ecosystem collaboration, and patient execution. With industrial and government stakeholders actively fueling adoption, India is in a pivotal phase—one where disciplined innovation and long-term commitment will define its leadership in AI, semiconductors, and clean mobility over the next decade,” said Pranav Pai, Founding Partner & Chief Investment Officer, 3one4 Capital.
Indian angel investing success: 14 exits with ~36% IRR
Inflection Point Ventures, an angel network in India, announced 14 exits from 2024, delivering an IRR of ~36%, reinforcing its ability to generate liquidity for its investors. With 47 successful exits from a portfolio of 200+ startups, IPV has delivered exit opportunities at a rate well above industry norms, reinforcing its strong track record in venture investing. “Our focus has always been on identifying and supporting businesses with the potential to scale and deliver strong returns,” said Vinay Bansal, Founder & CEO of IPV. “Despite the market slowdown, our ability to deliver consistent exits reflects the strength of our portfolio and the trust we’ve built with both investors and founders.”
IPV has successfully facilitated multiple high-return exits, demonstrating its expertise in identifying scalable businesses. Among them, Aksum (52% IRR, 1.55x MoM), Conscious Chemist (54% IRR, 1.45x MoM), and Qubehealth (53% IRR, 4.06x MoM) delivered significant investor returns. These exits, along with several others, reinforce IPV’s strategy of backing high-potential startups that create meaningful investor value.
While the funding winter persisted, IPV portfolio companies secured 25 follow-on rounds, an achievement that stands out in a challenging market. This continued investor confidence is evident in the backing IPV startups have received from top-tier funds. Goodwater Capital invested in Stage, alongside Blume Ventures, which also backed Fashor. Kazam attracted funding from Vertex Ventures, Avaana, and Chakra, while Sorin and Piper Serica supported Freed. DS Group’s investment in Samosa Party further highlights the trust established investors place in IPV’s portfolio. Adding to this momentum, Tim Draper’s investment in BonV Aero reinforces IPV’s rigorous due diligence, showcasing the confidence of globally recognized investors in IPV-backed startups. Another major highlight of the year was the appearance and funding of two IPV-backed startups—Speed Kitchen and Metashot—on Shark Tank India.
Beyond securing fresh capital, IPV-backed companies have also proven to be attractive targets for acquisitions and strategic collaborations, validating their strong technology and market potential. Prescinto AI, an AI-powered platform optimizing renewable energy assets, was acquired by IBM, integrating its technology into IBM’s ‘’olMaximo Application Suite to enhance the energy sector’s efficiency and sustainability. This exit delivered a 28% IRR with a 2.17x return. Similarly, Parablu, a data protection company, was acquired by CrashPlan, a global leader in cyber-ready data resilience. The acquisition not only integrated Parablu’s solutions but also onboarded its team, ensuring a smooth transition and continued business growth. This exit generated an IRR of ~30% with a 2.2x MoM in 36 months.
Indian Incubator Launches TSUV Angel Network to Empower New Investors & Seed Startups
In the beginning of the year, StepUp Ventures, Indian incubator, launched the TSUV Angel Network (TAN). Designed for aspiring investors with limited time or expertise, TAN makes startup investing more accessible while providing crucial support to early-stage startups.
StepUp Ventures, with a portfolio of over 51 companies valued at 400+ crores, bridges these gaps through TAN by offering exclusive benefits to investors, including early access to high-potential startups and portfolio insights. TAN also actively supports early-stage startups, particularly those with monthly recurring revenue (MRR) of ?20-50 lakhs and strong institutional backing. Raja Singh Bhurji, CEO & Incubation Director of StepUp Ventures, notes, “TAN streamlines angel investing for individuals interested in startups but lacking the time or expertise to manage them, while also boosting negotiation power through collective investments.”
With 80 to 100 investors, including key figures like Mr. Mohammad Aslam, CEO of Vinsys, TAN aligns with StepUp Ventures’ mission of empowering underserved communities and follows UN-supported Principles of Responsible Investment for sustainable financial growth.
Empowering Investors to Invest in their Style with OMNI App
YES SECURITIES, a subsidiary of YES BANK, is embracing a client centric approach that adapts to individual investor preferences. It has launched OMNI, an advanced investment and trading platform designed to empower investors to “Invest Karo Apne Style Se”. The OMNI app offers the flexibility to invest in diverse asset classes and investment themes. Whether one is a cautious long-term planner or a high-frequency trader someone who is just starting the investment journey, the platform caters to every investment style and risk appetite.
Anshul Arzare, MD and CEO, YES SECURITIES, stated, “Every investor is unique, just like a fingerprint. Every investor has a different investing style—some seek stability, while others chase market momentum. Some have monthly investment objectives while some invest in lumpsum. At YES SECURITIES, we believe that investing is unique to every investor. Our goal is to provide the tools, research, and technology that allow investors to make decisions on their terms, in line with their horizon, risk appetite and investment goals.”
Clean energy investment to foray into biomethane production & sales in India
Sojitz Corporation (“Sojitz”) invests in a holding structure of the special purpose company established jointly by GPS Renewables Private Limited. (“GPSR”) and Indian Oil Corporation Ltd. (“IOCL”), which designs, constructs, operates, and provides maintenance for biomethane plants in India (“GPSR-IOCL Biomethane Platform”). Through this strategic investment, Sojitz will foray into biomethane production and sales in India.
Sojitz will work in collaboration with IOC GPS Renewables Pvt. Ltd. (IGRPL), a joint venture between GPS Renewables and Indian Oil Corporation Ltd, to develop and operate biomethane production facilities using agricultural waste as feedstock. IGRPL plans to establish 30 biomethane plants by FY 2026 – FY 2027 with a production capacity of 160,000 tons of biomethane annually. These projects have a total outlay of over USD 400 Mn. EY was the exclusive M&A investment banker and Cyril Amarchand Mangaldas led by Partner Alok Sonkar was the transaction advisor representing GPS Renewables.
Biomethane is produced by purifying biogas and it can be a direct replacement for fossil fuel, significantly reducing greenhouse gas emissions and promoting circular economy.
Mainak Chakraborty, CEO and Co-Founder, GPS Renewables, said, “Sojitz and GPSR group have a shared vision of improving India’s energy self-sufficiency. As the country’s energy demand continues to rapidly grow, it’s crucial for us to prioritize biofuels and find ways to reduce our dependence on fossil fuels. This collaboration with Sojitz is a step towards increasing the production of cleaner sources of energy while reducing air pollution caused by the open burning of agricultural waste”
Sojitz currently focuses on developing renewable energy projects that have the potential to accelerate India’s biomethane sector while also addressing a few key environmental concerns such as air pollution. Through this investment, Sojitz and GPSR will work to drive India’s clean energy goals by accelerating the expansion of biomethane production and operation across the country. The companies will leverage GPSR’s expertise in biomethane production processes, technology expertise, indepth experience in design, construction, operation, and maintenance of biomethane plants. Additionally, IOCL’s expansive network with gas consumers will play a crucial role in scaling distribution. Furthermore, Sojitz will assess opportunities for biomethane production beyond India by deploying GPSR’s technology in new regions to explore opportunities in the broader bioenergy sector.
