As India celebrates the ninth anniversary of one of its flagship initiative, Startup India, on National Startup Day, the country stands proud as home to the third-largest startup ecosystem in the world.
Throughout this journey, the startup ecosystem has undergone numerous transformations and developments, shaping India’s current position in the global market. In this regard Siddharth Mala, Correspondent, ObserveNow Media interacted with startup founders to gather their perspectives on the current state of the ecosystem and the innovative strategies they are employing to drive it forward.
“As Startup India initiative celebrates its ninth anniversary, it stands as a powerful reminder of the nation’s commitment to innovation, resilience, and entrepreneurship. In just under a decade, India has evolved from a promising startup hub into a global leader, proving that with the right support and ecosystem, startups can drive economic growth, create millions of jobs, and set the stage for future generations of innovators” said Jeet Sharma, Co-founder & CEO, ObserveNow Media.
“The journey of Startup India, now nine years strong, is a shining example of what can be achieved when ambition, policy, and perseverance come together. From empowering women entrepreneurs to nurturing a dynamic ecosystem, the initiative has catalyzed India’s economic transformation and positioned the nation as a global innovation leader. As ObserveNow turns six, we too stand proud as a bootstrap startup, thriving through determination, creativity, and an unwavering belief in the transformative power of innovation” affirmed Taniya Tikoo, Co-founder & Editor in Chief.
With over 1.6 lakh government-recognized startups, this vibrant community has become a cornerstone of economic development, generating over 1.6 million jobs nationwide, according to data from the commerce ministry.
While commenting on the employment scenario in the startup ecosystem Manish Aggarwal, CEO & Founder, FINQY said “Startups are significant contributors to India’s employment landscape, particularly through gig workers and full-time roles for young professionals. At our company, we actively recruit college interns across various verticals, many of whom transition into full-time employees after graduation. Additionally, our partner ecosystem creates numerous opportunities for gig workers, especially in entry-level sales and on-ground roles. This dual approach enables us to foster sustainable job creation across different levels of expertise.”
Commenting on the same Akanksha Sharma, CO- Founder & CEO , CITTA. stated “we focus on creating quality, long-term jobs by hiring from diverse talent pools. We actively collaborate with local institutions to bridge skill gaps, which ensures sustainable employment. Additionally, we prioritize building a culture of innovation to drive job satisfaction and retention. We firmly believe in promoting healthy work-life balance because we understand that happy, well-rested employees are key to sustained productivity and innovation.”
Shedding light on India’s market, Vipul Lunawat- Founder Director- Institute of Sports Science and Technology (ISST), Pune highlighted India is a very cost sensitive market. While we have a very sizable population, it is not easy to develop something new and be successful as many competitors catch up with you as soon as you have a unique proposition. It is very important to balance your offering with the right price which will give complete satisfaction to your customer. In India, doing business is like developing successful relationships and many businesses and startups run on this concept. India offers an easy startup ecosystem, with respect to registration of the business and running it with easy compliances as compared to, in other countries. The most important challenge in India is that you have to be constantly be on your toes to be in the market competition. You have to constantly keep innovating your offering to leverage more customers and keep providing them good service. Consistency is the key to do business in India.”
Notably, India’s startup ecosystem has embraced inclusivity. Over 73,000 startups recognized under the Startup India Initiative have at least one woman director. This represents nearly half of the 1,57,066 government-supported startups, highlighting the pivotal role women play in driving innovation and fueling economic growth.
One such notable entrepreneur is Somdutta Singh, First-Generation Serial Entrepreneur, Founder and CEO Assiduus and Investor with Karma Holdings and Ex-Member Niti Aayog. Somdutta stated “For me, the most profound lesson has been that success doesn’t come from chasing trends but from execution and staying true to your vision. On Indian Startup Day, I salute every founder who’s dared to take that first leap of faith. Together, we’re shaping not just companies but the future of a nation.”
From pioneering fintech innovations like UPI, which revolutionized digital payments globally, to building frugal solutions that empower underserved markets, Indian startups are showcasing how resourcefulness can drive transformation. This isn’t just about growth; it’s about creating impact for change. On Indian Startup Day, we celebrate the vision and resilience of entrepreneurs shaping a new global narrative from India, further added Somdutta.
Highlighting the challenges in scaling business, Jyotee Naair, Founder, CareerVversity said “Scaling the company has come with several challenges, particularly in navigating India’s regulatory complexity and securing skilled talent in the competitive education and career counseling sector. Additionally, building customer trust in a crowded market where many offer similar services posed an initial hurdle. We’ve successfully leveraged India’s unique market conditions to create competitive advantages. The growing middle class and increasing global aspirations among students have driven demand for our services, allowing us to position ourselves as experts in study abroad and career counseling. India’s tech-savvy population and widespread digital adoption have enabled us to scale efficiently through online consultations, AI-driven personalized services, and targeted digital marketing.”
Underscoring the same Dr. Saarthak Bakshi, Healthcare Entrepreneur and CEO, RISAA IVF stated “Scaling has been challenging due to awareness gaps and operational diversity in India. We’ve turned these into strengths by using India’s affordability, tech-savvy talent, and rising health consciousness to provide personalized, accessible fertility solutions and create a competitive edge.”
Emphasizing on the legal sector startup ecosystem Shreya Sharma- Founder- Rest The Case highlighted “Scaling in the legal industry has been a journey filled with both challenges and rewards. When the COVID-19 pandemic hit, it disrupted the way the entire legal system worked. Suddenly, everything shifted—lawyers had to work remotely, client interactions became virtual, and courts moved to online hearings. Case delays became the norm, and there was a sharp rise in demand for legal help in areas like employment disputes and force majeure clauses in contracts. It was a wake-up call for the industry to adapt, stay resilient, and embrace change.”
The “Indian Startup Ecosystem Report” by Startup India reveals how startups are leveraging cutting-edge technologies like artificial intelligence (AI), blockchain, and the Internet of Things (IoT) to tackle both local and global challenges. This spirit of innovation is nurtured by a supportive network of incubators, accelerators, and mentors, bridging grassroots issues with advanced solutions.
“Technology and digital transformation have profoundly shaped the trajectory of startups in India. By adopting advanced technologies like artificial intelligence (AI), machine learning, and the Internet of Things (IoT), startups can streamline their operations, enhance customer experiences, and innovate more effectively. For instance, AI helps startups analyze data quickly, allowing them to make better business decisions and tailor services to customer needs. Looking ahead, emerging technologies will continue to influence growth by enabling startups to develop sustainable solutions and new business models. As these innovations evolve, they will play a crucial role in driving the next phase of expansion for Indian startups” stated Darshil Shah, Founder and Director, TreadBinary.
Khadim Batti, Co-founder & CEO, Whatfix highlighted “The Indian startup ecosystem stands at an exciting yet pivotal juncture today. We are seeing a clearer shift towards sustainability in business practices and Gen-AI in everything. Additionally, investors are more discerning than ever; they want startups with robust business models, emphasizing operational efficiency and ensuring that value is delivered consistently to customers. This shift presents an opportunity for startups to recalibrate, optimize resources, and focus on creating measurable impact.”
Sharing growth journey Neha Shah, Co-founder and Director of MentorMyBoard emphasized “Technology has been a cornerstone of MentorMyBoard’s (MMB) growth journey. From digitized learning platforms to virtual mentorship models, we’ve fully embraced digital transformation to make governance training accessible across geographies. Our technology platform is a holistic solution and a perfect example of technology and innovation. It combines the networking capabilities of LinkedIn, the learning management efficiency of platforms like Udemy, the convenience of Amazon for boardroom tools and services, and the functionality of Naukri for directorship empanelment—all in one integrated ecosystem tailored for governance needs.”
Through innovation-driven productivity and ancillary industry support, startups contribute directly and indirectly to the nation’s GDP. Indian startups are not only solving domestic problems but also leaving an indelible mark on the global stage. With operations expanding worldwide and Indian-origin startups thriving in Silicon Valley, the ecosystem exemplifies India’s potential to scale and compete globally. According to the Startup India International Guide, these ventures are increasingly partnering with global corporations and entering international markets, inspired by India’s leadership in affordable technology solutions like UPI and Aadhaar-enabled services.
“To go global, one needs to adapt culturally, comply with regulations, and build trust in new markets. SCOPE is unique and transparent in the way it creates a fundraising platform for investors and startups across geographies. Our technology-based solutions, scalability, and emphasis on working in collaboration with local partners enable us to customize our offerings for specific market requirements. These factors combined with the innovation reputation SCOPE has developed will help the company successfully penetrate the competitive global startup landscape and reach out globally” stated Appalla Saikiran Founder & CEO, SCOPE.
Commenting on the same Gaurav Dagaonkar, Co-founder and CEO, Hoopr stated “The challenge that we may face would most likely be at navigating the regulatory frameworks of different countries as licensing and artist royalty frameworks are different across the globe. We also feel that after having served a country like India, which is a diverse and difficult market to master, there will be lots of learnings which will make international markets easier to penetrate. Thanks to the abundance of great engineering and technology talent in India, we are confident of building a world-class product, which is where we see a competitive advantage.”
India’s entrepreneurial landscape has experienced a transformative evolution over the past decade, with numerous cities emerging as hubs of innovation. The combination of affordable internet access and a vibrant, youthful workforce has driven the expansion of startups across various industries, such as fintech, edtech, health-tech, and e-commerce. This growth highlights the active and robust support of the Indian government in fostering the startup ecosystem.
Abdul Nasir Shaikh, Founder and CEO, Total Coaching and Mentoring Collectve LLP underscored “Government initiatives like Startup India, Atal Innovation Mission, and access to funding through SIDBI have been instrumental in creating a robust startup ecosystem. While
these policies have addressed foundational needs such as funding, incubation, and tax incentives, there are areas for us to keep doing more such as Sector-Specific Support, Focus on Tier-2 and Tier-3 Cities and Upskilling for Innovation.”
We have one of the finest landscapes for the Start Up ecosystem in the world and by addressing these area, the government can create an even more conducive environment for startups to thrive and innovate, further added Abdul.
By January 13, 2025, more than 4,000 startups had received funding under the Startup India Fund of Funds programme, contributing to the ecosystem’s exponential growth. The number of unicorns in India has also surged to an impressive 110, underscoring the ecosystem’s ability to foster innovation at scale.
Sri Hari Cuddapah, Chief Business Officer, GenY Medium highlighted “With India’s growing startup culture, it is creating new jobs and driving economic growth. We have managed to address this by making sustainable, high-value job creation our one of the priority. Certain challenges, such as obtaining specialized talent and dealing with rapid technological changes, are however present when trying to scale in a competitive environment. While programs such as “Startup India” have proven beneficial, there is still a need to simplify the regulatory environment and enhance the ease of access to funds for entrepreneurs since that will promote innovation. Moving forward, our ability to fuse deep consumer understanding with digital evolution continues to enable us to stand out and remain competitive.”
As the nation reflects on nine years of Startup India, it celebrates not just the numbers but also the culture of innovation, inclusivity, and global collaboration that the initiative has fostered. From empowering women entrepreneurs to leveraging advanced technologies, Indian startups are shaping a future where economic growth and technological leadership go hand in hand.
India’s startup journey, marked by resilience and ingenuity, is a testament to its potential as a global innovation hub, driving the economy and inspiring the world.
