India’s Startup Bubble? Debunking the Hype Around 2025's Emerging Sectors and Funding Trends
India’s startup ecosystem has attracted a combined total funding of ₹14,54,000 crore from venture capitalists (VCs), angel investors, and debt funding schemes.
Over the last decade, India has moved from being a primarily agrarian economy to a more diverse one with a mix of industries. Improved infrastructure, government support, and access to resources have made the country an attractive destination for startups, both local and international.
The Indian startup ecosystem, now among the largest in the world, is seeing growth in sectors like clean energy, agritech, deep tech, and Web3. Initiatives like Startup India and improvements in digital infrastructure have helped boost this growth. With over 100 unicorn startups (YNOS database, 2024) and increasing investments, the coming year looks promising for new businesses.
This report highlights the emerging startup sectors, the top trends driving them, and what to expect next in India’s startup landscape.
Emerging startup sectors in India
India’s startup ecosystem has grown exponentially, with over 50 major business sectors attracting funding from angel investors, venture capitalists, private equity firms, and government-backed initiatives.
While this diversity spans across industries, certain sectors stand out due to their density—the sheer number of startups operating within them. According to YNOS Startup Insights, the top five most dense startup sectors in India are Software, Sales & Marketing, Manufacturing, Professional Services, and Real Estate. Here’s an overview:
Software: The software sector remains the backbone of India’s startup ecosystem. It covers areas like SaaS (Software as a Service), enterprise software, and cloud solutions. Startups in this sector develop tools that help businesses streamline operations, manage data, and enhance productivity.
Notable names include Zoho, which provides SaaS tools for businesses; Freshworks, known for customer engagement solutions; and Chargebee, specializing in subscription management software. The sector’s scalability and demand make it a favorite among investors.
Sales & Marketing: The sales and marketing sector focuses on enabling businesses to connect with their target audience effectively. Startups in this space offer solutions like customer relationship management (CRM), digital marketing analytics, and lead generation tools.
Companies like Hubilo (event management platforms), Wingman (sales call intelligence), and CleverTap (customer engagement solutions) have made a name for themselves in this sector. The growth of such businesses are a direct product of the increasing need for businesses to adopt digital channels for growth and customer retention.
Manufacturing: Manufacturing startups are using and developing technologies like IoT, AI, and automation to optimize production processes and reduce costs. This sector includes startups focusing on smart manufacturing, supply chain management, and industrial automation.
Leading examples are GreyOrange, which develops robotics for warehouses; Atomberg Technologies, known for energy-efficient appliances; and Log9 Materials, specializing in advanced battery solutions. These startups are helping India’s industries transition into the era of Industry 4.0.
Professional Services: The professional services sector includes startups offering legal, financial, HR, and consultancy solutions tailored to businesses and individuals. These startups focus on improving efficiency and access to specialized expertise.
Prominent players include VakilSearch (legal services), ClearTax (tax filing and compliance), and Zolve (financial services for global citizens).
Real Estate: Real estate startups have redefined how people buy, sell, and rent properties. They focus on technology-driven platforms for property listings, real estate analytics, and construction management.
Leading companies include NoBroker, which eliminates brokerage fees for property transactions; NestAway, a platform for rental housing; and PropTiger, offering end-to-end real estate services. The sector’s growth is based on urbanization and the increasing adoption of digital solutions for property management.
India’s startup ecosystem is diverse, but these five sectors highlight the areas with the most activity and innovation.
How can startups use YNOS in 2025?
YNOS platform features for startups address critical challenges of a business throughout its growth journey. The platform offers a wide range of tools tailored to early-stage ventures, innovators, research centers, investors, and other stakeholders.
For instance, startups can explore a detailed database on over 2 lakh Indian startups using YNOS startup product. The Angel and VCs platforms provide insights into investors’ expertise, portfolios, and funding preferences, helping entrepreneurs find the right match. The debt funding and government funding platforms help businesses identify eligible funding opportunities across the country. The YNOS startup insight delivers valuable analytics on business sectors, funding trends by city, investor types, and the overall Indian startup ecosystem.
With the help of YNOS, startups can make informed decisions, refine their strategies, and effectively navigate the competitive landscape of 2025.
Top Most Funded Startup Sectors in India
India’s startup ecosystem has attracted a combined total funding of ₹14,54,000 crore from venture capitalists (VCs), angel investors, and debt funding schemes.
Venture Capitalists (VCs): India hosts 5,438 VCs actively funding startups. The primary sectors receiving VC funding include Fintech, commerce and shopping, and software, reflecting investor interest in technology-driven and scalable solutions.
Angel Investors: With a network of 12,330 angel investors, the focus is on early-stage startups in commerce and shopping, software, and community and lifestyle. Angels often help startups get through initial hurdles through strategic mentorship and funding.
Debt Funding: Supported by 904 debt schemes, 22,551 startups have secured funding to meet operational and expansion needs. Debt funding schemes from HDFC Bank Limited, State Bank of India, and ICICI Banking Corporation Limited support startups across sectors. Debt funding provides a viable option for entrepreneurs seeking alternatives to equity dilution.
Startup trends in India 2024-2025
As of 2024, there are 236922 startups in India (YNOS Insights, 2024). Out of these over 110+ startups are unicorns. Among the unicorns, tech startups have a big portion of the pie, with sub sectors such as edutech, fintech, healthtech and several others.
With time, several sectors are expected to experience rapid growth. Health-tech is on the rise, driven by increased demand for digital healthcare solutions and telemedicine platforms. The hardware and technology sector is advancing with innovations in IoT and robotics. The food and beverage industry is seeing growth through cloud kitchens and sustainable packaging solutions.
Transportation and logistics startups are streamlining supply chains with AI and automation. Edutech is expected to grow further as old players take the back seat, offering online learning platforms and skill development programs. These trends highlight India’s potential and efforts to expand the startup ecosystem while strengthening itself in the coming years.