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India's venture capital playbook rewrites itself with new generation

India's venture capital playbook rewrites itself with new generation
How India's venture capital playbook is rewriting itself · businesstoday.in

A long time ago, when computers were rare in India, grown-ups who invest money in new companies — called venture capitalists — would copy ideas that were already popular in other countries, like online shopping or taxi apps.

Now, a new group of younger investors has grown up.

They saw India change a lot, from almost no computers to almost everyone having a smartphone.

These new investors want to build brand-new ideas in India that nobody has tried before, like satellites, clever computer programs called artificial intelligence, and advanced machines.

They are also willing to give money to smart people who did not go to famous Indian schools.

The number of these investment firms has grown from 30 to 250 in just ten years.

In 2025, about ten billion dollars was invested in Indian startups.

The money is helping India try to become a much bigger and richer economy.

Key facts

Total VC investment in India (2025)
About $10 billion, with AI and deeptech outperforming
IVCA VC-firm membership
Grew from 30 to 250 firms in a decade; close to 45% are micro VCs
First VC boom
Gained momentum after 2008-09, helping create Flipkart and Zomato
Funding focus
AI, deeptech, advanced manufacturing, quantum computing, augmented analytics and autonomous things
India economic ambition
Move from a $4-trillion to a $10-trillion economy over the coming decade
Micro VC role
Bridging the 'Valley of Death' for startups in GenAI, climate tech, deeptech and consumer platforms

Quotes

Aditya Singh

Co‑founder of All in Capital and former Stride Ventures Principal

“"We have reached a phase where the first generation of internet companies has gone through a full cycle. Some have sold, some are scaling, some are IPO‑ing."”
businesstoday.in
“"We have grown up seeing the scarcity that India has lived with since independence. And then, within our own lifetimes, we have seen a remarkable shift."”
businesstoday.in

Sources

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