Country's Digital Infrastructure To Be Game Changing for Sectors and Capital Markets: Experts The Indian startup ecosystem is expected to grow steadily in 2025 with more favourable conditions, regulatory support and an ever-increasing appetite for digital adoption.
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The Indian startup ecosystem is expected to grow steadily in 2025 with more favourable conditions, regulatory support and an ever-increasing appetite for digital adoption.
However, focus is shifting with founders and investors alike preferring sustainable growth over rapid expansion according to Ashutosh Kumar Jha, General Partner at Expert Dojo, a California-based venture capital (VC) and private equity principal firm.
According to Jha, investors are expected to remain interested in high-growth startups but are more likely to be selective, prioritizing structures with robust revenue models and cost effectiveness.
"Early-stage startups will have more opportunities to secure funding, but they must demonstrate real business potential beyond projections," said Jha.
Jha also told BIZ Experiences India, that fintech, SaaS, healthcare and artificial intelligence (AI) will continue to be key growth sectors, with fintech advancing through increased digital payments and lending solutions and AI continuing to play a crucial role, with significant impact across sectors.
Fintech continues to be a crucial part of India's growth story, thanks to a comprehensive suite of APIs, with 'India Stack' leveraging infrastructure such as Aadhaar for digital identity, e-KYC, and UPI for payments. The model has significantly boosted financial inclusion within the country, enabling as much as 80 per cent of the population to access financial services.
Shri Rajaraman, chairman, International Financial Services Centres Authority (IFSCA) recently said that currently, 190 million people actively engage with mutual funds or stock markets, with 110 million unique investment accounts, representing about 10 per cent of the population. And while this is a promising figure, Rajaraman hopes to see this number rise to 30-40 per cent.
"Financial inclusion remains a top priority, with 540 million bank accounts integrated into the formal banking system—a major step forward in connecting individuals to capital markets, insurance, and pension funds. Achieving this will require a more resilient and trustworthy capital market ecosystem, said Rajaraman during a keynote address at an IFSCA event jointly hosted with Indian Private Equity and Venture Capital Association (IVCA).
Rahul Chandra, Managing Director, Arkam Ventures, added, "Digital public infrastructure has already reshaped businesses in India. Tokenization of illiquid assets and frameworks like Account Aggregator will be game changers in bringing more businesses into the formal economy."
According to Nupur Garg, Founder, Winpe women-led startups have also significantly impacted the overall startup ecosystem, by raising over USD 930 million in 2024, which is a 94 per cent YoY surge, and remarked that these numbers are just the beginning.
True impact lies in sustained industry-wide commitment to inclusion, where diverse leadership is not an exception but the norm," said Garg.
