India’s startup ecosystem ranks third globally, but beneath the impressive numbers lies a rapidly evolving landscape. 2025 has been the turning page, with new trends reshaping how startups operate, scale, and secure funding.
From emerging sectors gaining investor attention to shifting market dynamics, understanding these trends isn’t just helpful—it’s essential for survival. Whether you’re a founder looking to capitalize on the next wave of growth or an investor seeking the most promising opportunities, here’s what you need to know about the future of startups in India.
2025 Startup Industry Trends for Founders
Trends come and go, but the ones that define 2025 will separate thriving startups from those struggling to stay relevant. In a market where funding is tighter, competition fiercer, and consumer expectations higher than ever, founders can’t afford to miss the shifts that matter. Here a few trends startup founder should look out for in 2025:
1. VC is not the only option
This trend can decide the future of your startup. Lack of big deals, macroeconomic conditions, and more startups choosing to bootstrap have reduced VC funding in India. There was a 25% YoY decline in VC funding in February 2025 (source). More and more startups opt for bootstrapping or other funding options such as crowdfunding or corporate funding.
Early-stage startups, as an alternative, can focus on attracting angel investors for capital, especially if you want to maintain control on your equity.
2. Sustainability is a necessity, not an option!
Eco-friendly is not just fancy terms anymore. Customers are now looking for businesses who can deliver what they are promising, notably surrounding the terms ‘sustainable’ and ‘eco-friendly’.
As per reports, 52% of Indians are willing to pay a premium price for sustainable products (source). Consumers are avoiding the use of harmful products. They are consciously checking if the ‘sustainable products’ are disclosing how sustainable they actually are. So, it is part of the significant startup trends in 2025.
Among various sustainable startup industry trends, two have gained significant traction and funding. These two are Greentech and Cleantech startups.
- Greentech startups focus on creating sustainable and innovative solutions to reduce environmental impact.
- Cleantech startups focus on innovative tech solutions to reduce natural resource wastage and related costs while improving the product or service.
Investors also look forward to being part of startups that bring change and focus on sustainability. Renewable energy, EV, agritech, and waste management startups have gained significant traction recently as more customers prioritize sustainability.
3. Embracing AI
AI is the new normal and we are still exploring how far it can and what it can do. From the AI-powered chatbot to AI-based services, it has become a part of our daily lives. Whether you offer services or a tech product, AI can help you increase your efficiency and customer satisfaction by automating specific tasks and offering personalized services.
Healthcare, logistics, SaaS, agriculture, e-commerce, and more industries have adopted AI and are thriving. So, if you want to create a successful startup, explore how you can leverage AI.
4. Hyperlocal/Personalization
Startups were never about a one-size-fits-all solution. They are dedicated to solving a particular problem with innovative products/services. However, in recent years, there has been a rise in hyperlocal startups catering to the locals. From last-mile delivery to local community services, there is a demand to connect local businesses and communities. If you are looking to bootstrap your startup, you can start small with a hyperlocal startup and expand in other markets by networking.
5. Healthcare will keep rising
The sun of healthcare is never going to set. The healthcare industry remains one of the fastest-growing and developing sectors in India. AI and other innovative solutions make healthcare more accessible, personalized, efficient, and affordable.
Healthtech solutions in tier 2 and 3 cities are gaining traction as they make healthcare available where there is a shortage of doctors and medical services. From diagnosis to maintaining health, there are many innovative health tech startups to inspire you.
6. Incorporating blockchain for transparency
Blockchain isn’t just a topic of discussion; it’s been used in real-time to create a transparent process in diverse sectors. For example, supply chains in manufacturing, decentralized finance (DeFi) for loans, and easy KYC solutions are popular startups thriving in India and the global market. Following the regulatory guidance, you can tap into a niche and gain traction and funding from global markets.
Conclusion
Understanding and incorporating the emerging trends into your startup is essential for startup success. For example, AI, Greentech, clean tech, blockchain, sustainability, and hyperlocal startups are rising. Therefore, find a way to integrate these technologies into your startup to cater for your audience better. Healthcare is one of the most profitable and fastest-growing sectors you shouldn’t miss out on. Additionally, more startups are ditching VC funding for bootstrapping, crowdfunding, and corporate funding. Explore more such startup industry trends at the Global Startup Summit arranged by 21BY72.
FAQs
1. Which startups will be best in the future?
The startups in growing sectors like healthcare, agriculture, renewable energy, green tech, and cleantech are popular. Startups focused on AI, blockchain, and hyperlocal are also gaining traction in local and global markets.
2. How to find investors for a startup?
You find investors by connecting with an angel investor network, startup events, pitching events, and being active on social media. Startup events such as 21BY72’s Global Startup Summit can help you find relevant investors and an opportunity to display your startup to investors. You can also connect with fellow entrepreneurs for a strategic partnership.
3. How to network with startup founders?
You can connect with startup founders by being active in a startup network or a sector-focused online network, attending startup events, working in co-working spaces, or registering in the incubator and accelerator programs.
4. Which city is the best for starting a startup?
You can start your startup in metro cities such as Bengaluru, Mumbai, or Delhi. However, you can also choose from major cities like Surat, Ahmedabad, Indore, Hyderabad, and more. Many startups are starting or expanding in tier-3 cities as well.
