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MSME Registration Guide: How to Register & its Benefits in 2025

Complete Guide to MSME Registration in India: Step-by-Step Essentials

Posted on: by: Aditya Narayanin: Startup UpdatesLeave a reply

MSME Registration in India: Complete Step-by-Step Guide

Micro, Small & Medium Enterprises (MSMEs) play an important role in the economy of India–they create jobs, innovate, and supply local and global markets. Getting MSME registration (or Udyam registration) enables such enterprises to benefit from government assistance, find it easier to get credit, and obtain tax and regulatory benefits, which can lead to improved access to markets.

The government has amended definitions for MSMEs (investment and turnover limits) effective from April 1, 2025. This guide will provide the latest requirements, the online registration process, documentation required, costs (if any), benefits, and recent changes.

What is MSME Registration / Udyam Registration?

  • Definition: MSME registration is the process by which firms registered  under the Udyam portal with the Government of India and are formally eligible to be classified as Micro, Small or Medium Enterprises. Previously, Udyog Aadhaar / EM–II / UAM were used. Udyam is the new standard.
  • Purpose: Recognition so that all support from government schemes like financial support, regulatory support, the marketing support, subsidies support, limited liability etc.  Benefits of MSME registration include access to schemes and responses easier for loans and protection against delayed payments.

Latest (2025) MSME Classification Criteria

Starting 1 April 2025, the government revised the definitions of MSMEs in terms of investment in plant & machinery (or equipment) and annual turnover. 

MSME Type

Investment Limit (Plant / Equipment)

Turnover Limit

Micro

Up to ₹2.5 crore

Up to ₹10 crore

Small

Up to ₹25 crore

Up to ₹100 crore

Medium

Up to ₹125 crore

Up to ₹500 crore

If your enterprise falls within these thresholds, you are eligible for Udyam / MSME registration.

Who Can Apply / Eligibility

  • Individuals, sole proprietors, partnerships, LLPs, private or public firms, charitable trusts, cooperative societies, Self Help Groups, etc. 
  • The business must meet the revised investment and turnover qualifications as mentioned above. 
  • Aadhaar and PAN are needed for the proprietor/partners/directors. GSTIN must be provided if the entity is already registered under the GST law.

Documents Required

One of the benefits of Udyam registration is minimal documentation. Mostly self-declarations & verification via government databases. Key items you’ll need:

  • Aadhaar number (of proprietor / partners / directors) for identity & address verification.
  • PAN card / PAN number.
  • Business address. Basic address information. Utility bills etc. (if asked/prompted) — but mostly self-declared.
  • Investment in plant / equipment & turnover. All will be declared and validated via PAN, GST, etc.
  • In a lot of cases, you won’t even upload extensive documents. Udyam portal auto-fetches PAN/GST linked info when applicable.

Step-by-Step Process: MSME Registration Online

Here’s how to complete MSME registration online (via Udyam) in 2025:

  1. Visit the Udyam Registration Portal (official government page). 
  2. Select appropriate category: New Entrepreneurs (who have not registered under Udyam / UAM / EM-II etc.) or Previously registered UAM / Udyog Aadhaar. A.Enter 12-digit Aadhaar number & name; receive and validate OTP.
  3. Provide PAN details; validate from the government database. 
  4. Enter details about the enterprise: business name, address, type of business, date of commencement etc.; details of the level of investment and turnover. 
  5. Otherwise, declare primary activity (manufacturing or service or trading), enter NIC code etc. 
  6. Then submit and generate the final OTP; complete. 
  7. Upon successful verification, Udyam Registration Number and e-certificate are generated. 

Time Taken: Usually instantaneous to a few hours / a day for certificate (depending on correctness of details). 

MSME Registration Fee

  • Cost / Fee: There is no charge to register under Udyam/MSME registration scheme. The government does not charge a registration fee. 
  • Be careful of third party/consultant services. They may charge a service fee to help you fill out forms etc. That is optional and not part of the government charge.

MSME Registration Certificate & Validity

  • After registration, you will receive an e-certificate with a Udyam-Registration Number (URN) / Reference Number. The certificate also contains a QR Code with all your enterprise details. 
  • The certificate will last for your lifetime, as long as the enterprise continues to exist and all details mentioned are correct, it does not have an expiry per se, unlike some previous registrations.

Benefits of MSME Registration

Registering as an MSME provides multiple advantages. Some of the key ones are:

Benefit

Description

Easier access to credit & loans

MSMEs are eligible for subsidised / collateral-free loans (e.g. via schemes like CGTMSE). 

Protection against delayed payments

Under the MSMED Act, suppliers can take action if large buyers delay payments. Government portals like “Samadhaan” help. 

Subsidies / support for certifications, trademarks, ISO etc.

The government often offers partial reimbursement/subsidy for product licensing, standards, patent/trademark costs. 

Priority in government procurement & tenders

Many tenders require MSME-registration or give preferential treatment — waiving security deposits etc. 

Lower interest rates

Banks often provide better (lower) rates or more favourable terms to registered MSMEs. 

Various tax / regulatory concessions

Includes rebate / credit (e.g. MAT credit, easier compliance procedures), and sometimes reliefs on electricity bills or stamp duty etc. 

Recent Developments / Changes to Know (2025)

  • Revision of classification (from April 1, 2025): The investment and turnover restrictions have been increased considerably when compared to the table above, which makes it easier for smaller organizations to get included in the “Small“ or “Medium“ classification. 
  • PhonePe‘s Udyam Assist Platform: A new partnership with fintech has made fully digital Udyam registration for merchants possible doing everything through PhonePe (which will further streamline the Udyam registration process). 
  • Counties ramping up registrations: Based on the most recent statistics, there are over 4.77 crore MSMEs registered under Udyam as of mid-2024.

Potential Drawbacks / Things to Watch Out For

  • Declaring incorrect turnover or investment figures could result in problems or de-registration. So it is important to provide accurate information. 
  • MSME registration does provide many benefits, but it does not replace other official / tax / regulatory registrations which you would need to obtain (example, GST, trade license, environmental clearance  etc.).  
  • Many benefits (i.e. subsidy / loan etc.) require you to additionally apply for the benefit with supporting documents and/or comply with obligations. 

Common FAQs

Question

Answer

Is MSME registration mandatory?

No. It’s optional. But to get many benefits of government support, it’s essential. 

How to verify or download my MSME/Udyam certificate?

Use the Udyam portal: select “Print / Verify” options, enter URN or reference number, OTP, etc. 

What happens if I already have Udyog Aadhaar / EM-II / UAM?

You need to migrate / re-register under Udyam. The portal supports that. 

Does my enterprise need GST registration to apply?

Not always. If your business is required by law to have GST, then you must provide GSTIN; if not, it doesn’t block Udyam registration. 

Conclusion

MSME Registration (Udyam Registration) is one of the most effective tools for small and medium enterprises in India. With the revisions made operational in 2025, there are qualifying “favourable“ criteria available to even more businesses. The entire process has been simplified, mostly online and all at no cost. If you are running an enterprise that meets the criteria, registering as an MSME could open you up to benefit from many things including easier access to credit, subsidies, as well as better access to government support & markets.

Textile and Apparel Unit Setup: Step-by-Step Business Guide

Textile and Apparel Unit Setup: Step-by-Step Business Guide

Posted on: by: Aditya Narayanin: Startup UpdatesLeave a reply

Textile and Apparel Unit Setup: Step-by-Step Business Guide

The textile and apparel industry is a vital sector for the economy of India. It contributes about 2.3% to GDP and employs 45 million people. The potential of the textile and apparel industry is reflected in its projected market size increasing to USD 350 billion by 2030 from almost USD 150 billion, with a compound annual growth rate (CAGR) of 10%. Textile and apparel offer enormous scope for entrepreneurship. Events of recent months, with advantages such as a well-trained workforce, government initiatives, and increased global demand have led to the opportunity for those looking to start a textile or apparel unit in 2025. This guide provides a complete step-by-step process to setting up your textile and apparel business and incorporates both new developments that are emerging in the industry.

Understanding the Textile and Apparel Industry in India

Textiles and apparel mean the production and conversion of raw fibres into fabrics (textiles) and finished garments and accessories (apparel). India’s textile and apparel industry includes spinning, weaving, dyeing, garment making, and technical textiles. It is the second-largest employer after agriculture, accounting for 13% of industrial production and 12% of industrial exports.

India is the second largest textile producer in the world and sixth largest exporter with exports valued at USD 35.9 billion in FY24. The major markets for these products are the US, EU and UAE. The textile industry itself is plentiful and has traditional handlooms, power looms, and modern technical textiles used in healthcare, defence and construction respectively.

Why Start a Textile and Apparel Unit in 2025?

  • Government Support: Government-led initiatives, including the Production-Linked Incentive (PLI) Scheme and PM MITRA Parks, offer generous subsidies and state–of-the-art infrastructure.
  • Global Demand: The burgeoning demand for sustainable and technical textiles opens a myriad of export avenues to over 100 countries.
  • Market Growth: The domestic market continues to grow because of rising disposable income and a burgeoning, youthful population, with a median age of 28.
  • Sustainability Trends: New sustainability trends and innovations, including fabrics dyed with bacteria, are on the rise.

Step-by-Step Guide to Setting Up a Textile and Apparel Unit

Step 1: Market Research and Niche Selection

Before you begin, you need to do proper market research, identifying trends, customer tastes, and gaps in the market. Popular niches to think about include sustainable fashion, athleisure, ethnic wear, or technical textiles like medical gowns. Understanding your target market—are they retail shoppers, designers, or B2B?—will help frame your offerings.

For example, athleisure is one category that works all–year round, while ethnic wear can vary regionally depending on festive seasons. A small production unit can produce on a very low MOQ (Minimum Order Quantity) model to service small digital fashion labels.

Action Points:

  • Analysis competitors and the demand for products such as cotton garments or technical fabrics. 
  • Identify export markets, such as the Middle East, Europe, and North America.
  • Use resources, such as Google Trends, or industry reports from the IBEF, to find high-demand products.

Step 2: Create a Business Plan

Having a strong business plan is essential for your textile and apparel unit. Your business plan should clearly identify your vision, target market, financial projections, and marketing plan. You also need to decide whether you will be B2B (selling to brands) or B2C/D2C (selling to customers).

Key Components of a Business Plan:

ComponentDescription
Vision and GoalsDefine short-term (e.g., starting production) and long-term goals (e.g., exporting to 10 countries).
Target MarketIdentify customers—retail, wholesalers, or export markets.
Financial ProjectionsEstimate startup costs (₹5-50 lakhs for small to medium units) and revenue goals.
Marketing StrategyPlan promotions via social media, trade fairs, or B2B portals.

Step 3: Legal Setup and Registrations

To operate legally, you should register your business and obtain the proper licenses. The textile industry in India also permits 100% FDI (foreign direct investment) under the automatic route, so entrepreneurs don’t have to go through lengthy regulations. 

Required Registrations:

  • Business Registration: You will have to decide on the structure of the business—sole proprietorship, partnership, or private limited company.
  • GST registration: This is required for businesses with turnover more than ₹40 lakhs (₹20 lakhs in some states).
  • Udyam Registration: This is required if you want to get benefits from being a MSME like subsidies and loans at lower interest rates.
  • Licenses Specific to Textile Industry: A Trade License, Pollution Control Board, Factory License if you are planning to open a manufacturing unit.

Engage a legal expert to streamline this process and ensure compliance.

Step 4: Choose the Right Location

Location is very important for operational efficiency. Think about where you are in relation to suppliers of raw materials, where skilled labour is nearby, and close to transport links. India’s largest textile clusters are Surat (Gujarat), Tirupur (Tamil Nadu) and Ludhiana (Punjab).

Location: 

  •  Infrastructure: you should look for industrial areas; you can also look at PM MITRA Parks where you get plug-and-play options roles.
  • Access to market: you also want to make sure that you are in an area that has close access to port for exporting.
  • Cost: consider not just land and operational costs but consider access as part of the cost.

For example, a sustainable textile factory in Odisha recently received location assessment assistance from Invest India.

Step 5: Procure Machinery and Raw Materials

Invest in machinery based on your product focus—spinning, weaving, or garment manufacturing. For a small-scale unit, basic equipment includes power looms, sewing machines, and cutting tables.

Machinery Costs:

EquipmentApprox. Cost (₹)
Power Looms2-5 lakhs
Sewing Machines10,000-50,000 per unit
Cutting Machines1-3 lakhs
Textile Testing Equipment5-10 lakhs

Source reliable raw materials like cotton, polyester, or sustainable fibres. Partner with suppliers in Surat or Coimbatore for cost-effective fabrics.

Latest Development: The Kasturi Cotton initiative promotes high-quality Indian cotton with traceability, boosting its global appeal.

Modern textile manufacturing unit with workers operating advanced machinery.

Step 6: Build a Skilled Team

Your labour force is the foundation of your unit.  Look for skilled tailors, machine operators, and quality control staff. The Samarth Scheme provides training courses to upskill workers and ensure quality is maintained at a cost that suits your demands. 

Tip for Hiring: 

  • Hire from local textile centres to find more original experienced workers.
  • Training may be available so that your workers can meet international standards such as ISO and SA 8000.
  • Focus on women centric employment, as 70% of workers in an apparel hub are women. 

Step 7: Implement Quality Control and Technology

Quality control (QC) is essential to limit returns and develop a reputation. Create quality control at the stage of raw material inspection, production, and final quality checking.

Digital Integration:

  • Get the deployment of ERP instruments such as Gofrugal to account for inventory and sales.
  • Integrate sustainability technology such as enzyme-based recycling of polyester fabrics.
  • Investigate Industry 4.0 automation solutions for the sector.

For insights on leveraging technology, visit Growthinfy’s blog on business automation.

Step 8: Marketing and Sales Strategy

Proper marketing is essential for reaching customers. In a B2B context, go to trade fairs such as Bharat Tex  and meet face-to-face with global buyers from Japan, UAE, US, etc. If you are in a B2C space, find e-commerce avenues with channels such as Amazon, Myntra, your own web site, etc. Marketing strategies to consider:

  • Digital Marketing: Take advantage of websites, SEO, social media, and influencers to build your brand. Explore our detailed guide on digital marketing for startups in India.
  • Export: Make use of India‘s trade agreements with the UK and UAE for duty-free access to the UK and UAE. 
  • Sustainability: Promote your eco-friendly practices to appeal to conscious consumers

Step 9: Leverage Government Schemes

Apply for these schemes through the Ministry of Textiles portal (texmin.nic.in).

The Indian government runs a number of schemes for textile entrepreneurs:

  • The PLI Scheme: Provides financial incentives for MMF production and technical textiles; ₹10,683 crore outlay.
  • PM MITRA Parks: Seven mega parks with ₹4,445 crore for infrastructure.
  • Amended TUFS: Reimburse capital expenditure for upgrades of machinery to modernize operations.
  • RoSCTL Scheme: Refund of taxes on exports to make exports more competitive.

To apply for these schemes, go to the Ministry of Textiles portal (texmin.nic.in).

Step 10: Scale and Diversify

After you have established your unit, you can focus on scaling. Invest in further machinery, grow into accessories or home textiles, or expand your markets. The Middle East and Europe are high-demand regions for Indian garments. 

Scaling Tips: 

  •  Scale production capacity with profits.
  •  Implement sustainability processes to align with global trends.
  •  Receive relevant industry updates and participate at Gartex Texprocess (May 2025, Mumbai) to connect with the industry.

Latest Developments in the Textile and Apparel Industry (2025)

The sector is undergoing a revolution: 

  • Bharat Tex 2025: An international platform for showcasing India‘s textile ecosystem, the event will bring business buyers from over 110 countries.
  • Sustainable Innovation: Companies like Carbios and Teijin are developing textile recycling with enzyme-based technologies.
  • Cotton Production : 100 lakh bales of cotton were purchased by the Cotton Corporation of India in 2024-25, ensuring supply and supporting farmers.
  • Exports Growth: Tamil Nadu garment exporters expect to see revenue growth of 8-10% in FY25 as demand comes back globally.

Worker inspecting eco-friendly fabrics in a sustainable textile production facility.

 

Challenges to Anticipate

The industry enjoys opportunities and must cope with obstacles, including

  • High Prices: A polyester and viscose fibres are now about 33-36% and 14-16% higher, respectively, than made in China.
  • Fragmented Supply Chain: Dispersed production results in significant logistics costs.
  • Competition: Bangladesh‘s duty-free exports will impact India in capturing the market share.
  • Tariff Pressure: High U.S. tariffs will limit revenues and slow the growth of the RMG industry to 3-5% per annum.

Solutions:

  • Utilize PM MITRA Parks to integrate supply chains.
  • Utilize government subsidies to alleviate raw material prices.
  • Target value-added products (i.e., technical textiles).

Explore our detailed guide on establishing a makhana processing unit with latest trends and analysis.

Conclusion

Starting a textile and apparel operation in India in 2025 is a solid opportunity in light of government assistance, a global demand for textile products, and the growth in the domestic market. By utilizing this outlined process—market research, business plan, legal registration, and technology—you can develop a successful company. Follow trends in the industry, including sustainability and technical textiles, to keep your business competitive.

Makhana Processing Business: Complete Guide to Setup and Profitability

Makhana Processing Business: Complete Guide to Setup and Profitability

Posted on: by: Aditya Narayanin: Startup Updates2 Comments

Makhana Processing Business: Complete Guide to Setup and Profitability

Makhana, which is also known as  fox nuts, or lotus seeds, is now considered a superfood and has become a hit among health-conscious customers in both India and other parts of the world. The high nutritional value of makhana, its low-calorie profile, and the gluten-free nature of the seeds have caused a sudden uptick in demand for it. Starting a makhana processing business in India offers entrepreneurs a rare opportunity to take advantage of a developing market, especially in Bihar, the main producer of makhana, where the state produces more than 90% of makhana in India. This complete guide provides detailed information to set up a makhana business, from plant to profitability, with a focus on the Indian audience.

Why Choose a Makhana Processing Business?

The Makhana business in India is propelled by the demand for better-for-you snacks. As a nutritious and wholesome food containing protein, fiber, calcium and antioxidants; makhana is a popular alternative snack food for active individuals, who want guilt-free snacking options. The super food market is expected to see tremendous growth globally, as evidenced by the uptick in makhana exports to developed nations such as the USA, UK, and UAE. Makhana production in India is estimated at 40,000 Metric tons, with a five year expected compounded annual growth rate at 12.5 percent; the makhana processing business and sales opportunity is enticing.

 Bihar’s Mithilanchal role in makhana growing is unsurpassed, and its supply of raw materials is easily accessible and inexpensive. The potential for makhana is across the board, from snacks to kheer to cosmetics, enhancing the profile of the market potential. Demand is there, now time for the entrepreneur to establish its processing unit with further value-added products such as flavored makhana, chips or namkeens.

flavored makhana snacks

Steps to Start a Makhana Processing Business in India

1.Market Research and Business Planning

Before starting the makhana business, it is important to conduct extensive market research first. You should know your target market – are you selling to health conscious consumers, retailers, or even exporters? Assess competitors, their prices, and consumer preferences for flavours such as peri-peri, masala or even caramel. A makhana business plan should clearly define your budget, target market, and marketing strategy.

2. Choose a Business Model

You can choose from one of the three models:

  • Cultivation and Processing Model: You grow and cultivate makhana in a pond or wetland area and then process it into finished products. This would require skills and knowledge of farming and a sizable investment in land and equipment.
  • Processing Only Model: You get raw makhana seeds from farmers and process the makhana, which involves cleaning, roasting and packing. This would be less capital-intensive, and easier for beginners.
  • Distribution and Retail Model: You buy processed makhana and sell this processed product directly to the consumer retail outlets, or through Amazon, Flipkart and other online platforms.

3. Legal Requirements and Registrations

To set up a makhana processing business , be sure to follow the legal requirements below.

  • Business Registration: You will need to register your business as a sole proprietorship, partnership or a private limited company.
  • FSSAI License: For compliance with food safety requirements, you need to obtain an FSSAI License from the Food Safety and Standards Authority of India.
  • GST Registration: This is important for tax purposes.
  • IEC Code: If you are looking or may be looking to export products in the future, you need to obtain this from the Directorate General of Foreign Trade.
  • APEDA Registration: To export food products and receive government support and incentives you will need to register with APEDA.

4-Setting Up the Processing Unit

The machine setup required of a typical makhana processing unit is specialized as follows:

  • Roasting Machines: Responsible for roasting the makhana with uniformity and giving the makhana a consistent texture.
  • Popping Machines: For popping the makhana seeds into their final signature enticing taste and light, crunchy feel.
  • Sorting and Grading Machines: For sorting and grading the makhana seeds by size and quality, allowing for better sales price.
  • Packaging Machines: The usage of nitrogen gas vacuum packaging allows makhana to last longer on a shelf and under normal storage conditions.

You will see a startup cost between ₹5-10 lakh depending the size and capability of machinery you selected for the small unit. Buying raw makhana from the state of Bihar at a cost of ₹400.00 to ₹800.00/kg is easy and efficient. 

Industrial machine for makhana processing5.Processing Steps

There are several stages to the makhana processing business: 

  • Harvesting: Makhana seeds are harvested from the lotus plant which grows in ponds that are typically harvested between February to September;
  • Drying: Most likely (sun) dried, they are dried out to remove moisture from the seeds before roasting. And is an important part of the roasting process to ensure proper seating quality;
  • Roasting and Popping: Seeds can be roasted in clay ovens or machines with appropriate oils. The seeds are then popped either manually with a wooden mallet or with an automatic popping process;
  • Sorting and Grading:  the seeds will then be graded normally by size and possibly other factors (ex. water content) to allow for better pricing;
  • Flavoring and Packaging: Add flavors masala or cheese etc. and pack into resealable, environmentally friendly pouches to freeze/ vacuum pack to maintain freshness.

6. Branding and Marketing

Effective branding will distinguish your makhana buisness  from the rest. Highlight the health benefits of makhana, such as being gluten-free and low-calorie, in packaging. Consider designing attractive and sustainable packaging to attract eco-friendly consumers. Digital platforms like Instagram, Amazon, and TikTok are great avenues for marketing. In addition to social media, think about using influencer marketing to promote your product. 

Investment and Profitability

Investment Breakdown

Total investment for a small-scale makhana processing business ranges from ₹5-15 lakh.

  • Machinery: ₹3-7 lakh for roasting, popping, and packaging machinery
  • Raw materials: ₹400-800 per kg for raw makhana seeds
  • Infrastructure: ₹1-2 lakh for small processing plant setup
  • Licenses and Certifications: ₹50,000-1 lakh (approx.) for FSSAI, GST, APEDA
  • Marketing and Branding: ₹50,000-1 lakh (approx.) for launches, campaigns etc.

Profit Margins

The processed makhana is sold at ₹800-1500 per kg and offers profit in the range of 20-40%. Processing raw makhana of 100 kg (cost ₹40000–80000) will give you ₹80000–150000 worth of sales. Exports are on the rise and will provide you higher profits selling to international markets. The makhana market in India was worth INR 8.5 billion in 2024; it is expected to reach INR 19.6 billion in 2033, growing at a CAGR of 9.22%.

Challenges in the Makhana Business

  • Quality Control: Maintaining consistent size, flavor, and texture is crucial for consumer trust.
  • Supply Chain Issues: Seasonal availability of raw makhana can disrupt supply.
  • Competition: Increasing popularity means rising competition, making branding critical.
  • Labor-Intensive Process: Traditional processing methods are time-consuming, necessitating investment in automation.

Solutions include adopting modern machinery, partnering with local farmers for a steady supply, and obtaining certifications like FSSAI and GI tags for credibility.

Packaged flavored makhana snacks on display

Government Support and Incentives

The Indian government is assisting the makhana sector in India through a number of schemes.

  • Makhana Board: Announced in the 2025-26 Union Budget, it will be established to increase production, processing, and marketing of Makhana in Bihar.
  • APEDA Incentives: Provides an export subsidy, and exporter courses for makhana exporters.
  • Bihar Government Schemes: Stamp duty waivers, rebates, and single window clearance for agricultural business.
  • SFURTI Scheme: Subsidisation, and technological improvement of Makhana processing clusters.

Export Opportunities

With global demand and a long shelf life, makhana is perfect for export. In 2023-24 India exported 25,130 metric tons of makhana, with major markets in the USA, Canada, and Australia. Get the right certifications such as HACCP and obtain GI tags where possible (for instance, Mithila Makhana) to align with international standards. You can also work with agencies like APEDA or Daak Ghar Niryat Kendra to simplify the process of export. 

Tips for Success in the Makhana Business

  • Experiment with Flavors: Offer customers some unique options such as chocolate or peri-peri to target younger consumers.
  • Prioritize Quality: Ongoing testing and certification will make consumers excited and trust your product.
  • Use Ecommerce: Sell on platforms like Amazon, Flipkart or your own website.
  • Engage with Farmers: Create a good relationship with makhana farmers in Bihar, this will offer stability for reliable supply. 

Conclusion

With increasing awareness about healthy food among people, setting up a makhana processing unit can be a great option for new entrepreneurs.

Whichever is your method of processing, selling, or exporting makhana, a clear and functional business plan can benefit you in earning good profits. Begin by conducting proper research, investing in quality machines, and taking the help of online marketing to reach out to more customers

How Startups Are Disrupting the FinTech Sector in India

How Startups Are Disrupting the FinTech Sector in India

Posted on: by: Aditya Narayanin: Startup UpdatesLeave a reply

How Startups Are Disrupting the FinTech Sector in India

The FinTech sector in India is undergoing a transformative revolution, driven by innovative startups leveraging cutting-edge technologies. With over 10,000 fintech startups emerging, India has the third largest FinTech ecosystem globally, transforming financial services for millions. From digital payments to neobanking, these startups are dramatically changing accessibility and efficiency as the future of fintech in India goes through unprecedented growth.

The Rise of FinTech Startups in India

India‘s fintech adoption is an astounding 87%, far above the world’s average adoption of 64%. Fintech startups in India such as Paytm, PhonePe, and Razorpay are taking advantage of this trend, where they are offering simple digital payment solutions. With the Indian government trying to push for a cashless economy through campaigns and initiatives such as UPI and India Stack, there is a favourable atmosphere in India for fintech startups to emerge. 

India’s FinTech sector is anticipated to reach a market size of $421.48 billion by 2029, growing at a CAGR of 31. There is heavy growth in the FinTech sector due to high smartphone penetration, as well as the large and young tech-savvy population. Startups are filling the gap for unbanked populations, which is contributing to financial inclusion in rural and urban geographies.


Key Innovations Driving Disruption

In India, fintech is associated with innovation at every level. Start-ups leverage technologies such as AI, blockchain, and machine learning to develop specific solutions to really gain traction in the market. New banking models, like Jupiter and Slice, are digital banking only with no physical branch. It is easy, fast, and modern, and a perfect example of how India is integrating its large population’s banking needs with modern technology. Blockchain based platforms are improving the efficiency and transparency of transactions, specifically cross-border payments.

 Even small technology based companies would use blockchain to develop a payments infrastructure as we see with the various neobanks like Jupiter and Slice. Credit scoring models powered by AI created by companies such as Cred and ZestMoney are allowing lending to underserved, unbanked segments of the population which covers the $400 billion MSME credit gap. These kinds of innovations are helping to shape the eligible, productive fintech future in India at higher speed and different better price points.

The Role of UPI and Regulatory Support

Unified Payments Interface (UPI) has transformed the landscape of the FinTech ecosystem in India. In October 2024, there were 16.58 billion transactions made using UPI, clearly illustrating UPI‘s absolute monopoly on digital payments and providing an avenue for startups like BharatPe to serve billions of merchants. The National Payments Corporation of India (NPCI) and Reserve Bank of India (RBI) have built a credible regulatory framework which has fostered innovation with boundaries.

The Account Aggregator (AA) framework amassed 1.1 billion eligible bank accounts to securely share customer information, which will increase digital lending. The government also has its FinTech Park in Gift City, Gandhinagar to promote startup growth and this will ensure India‘s position as a global fintech leader.

For insights on leveraging digital tools for business growth, check out GrowthInfy’s guide on digital transformation.

Challenges Facing FinTech Startups

There are many challenges fintech startups face despite their achievement like regulatory compliance and restrictions on fundraising. Despite seeing a 26% drop in fintech funding in H1 2025 during a “funding winter”, a total of $889 million was raised. The new entrants to the fintech industry still have to navigate the regulatory frameworks from RBI, SEBI and IRDAI which can be complex.

Ensuring data privacy and cybersecurity are meaningful concerns—companies must ensure the trust of their consumers. The lack of financial literacy and understanding of the tools in rural areas limits adoption and scaling. They will have to develop strategies for outreach to convince these users and educate them on the process. 

A cybersecurity interface highlighting challenges in the fintech sector in India

The Future of FinTech in India

The prospects for fintech in India are bright, and trends such as ecosystem banking and generative AI are making sure of that. Ecosystem banking involves providing financial services through non-financial platforms and improving the customer experience as a result. Some partnerships, such as Wingsure and Agriculture Insurance Company of India, are improving farmers’ access to insurtech. 

Generative AI is being leveraged by banks like HDFC and Axis to conduct customer service processes and risk management too. The digital lending market could hit a whopping $300 billion by 2030, while wealthtech AUM could capture value of $237 billion. Fintech Startups are paving the way for economic development and growth in the market space.

Collaboration and Consolidation

The collaboration of startups and traditional banks for continued growth is an enormous opportunity. Shown through a bank’s need for the agility of fintech with the momentum of an established customer base. An example of this trend towards consolidation was the $150 million acquisition of Fisdom by Groww. 

Also, with Jio Financial Services as a perfect example of increasing competition in lending, insurance and broking, Jio is clearly competing with the giants of PhonePe, Zerodha and other startups now that SEBI approved discount broking for Jio Financial Services. Jio has caused PhonePe and Zerodha to consider how to do even better. 

 Conclusion

In India, the FinTech segment is a lively ecosystem, with young firms leading the conversation around innovation and inclusion. UPI-powered payments, AI-derived lending and financing options, among many others, are transforming the landscape of financial services. While challenges do exist, the future of fintech in India is bright with emerging technologies and supportive regulatory policies.

There will always be regulatory obstacles, but with collaboration, these oganisations will continue to disrupt the financial landscape and make India leader globally in the fintech environment. Companies interested in this growth must partner with innovative companies to remain a step ahead.

How Incubators and Accelerators Are Helping Indian Startups Grow

How Incubators and Accelerators Are Helping Indian Startups Grow

Posted on: by: Aditya Narayanin: Startup UpdatesLeave a reply

How Incubators and Accelerators Are Helping Indian Startups Grow

India has a booming startup industry and by 2025, it is expected to be ranked the third largest in the world, with more than 1,40,800 startups. India’s rapidly evolving startup ecosystem will continue to grow with a strong support ecosystem including a wide range of incubators and accelerators that are currently providing real support to early-stage businesses in India. All of these programs have developed blocker funding/investments, mentoring and networking resources to help entrepreneurs convert ideas into viable businesses. This piece will examine how incubators and accelerators in India are shaping the startup ecosystem and supporting innovation.

What Are Incubators and Accelerators?

Incubators and accelerators are organizations that have been developed to support startups, but they have slightly different functions. Incubators focus on early-stage startups that are typically still in the ideation stage. Incubators offer long-term support (6 months up to 2 years) and grant access to resources like offices, mentors, and seed funding. Startup incubators and accelerators support founders to refine their ideas, validate their assumptions, and build a minimum viable product (MVP).  Accelerators focus on startups that are ready to scale, and they typically provide Programs for shorter terms (3-6 months) with funding, mentorship, and links to investors.

The main distinction is their emphasis on nurturing versus fast-tracking development, or in other words, incubators nurture while accelerators accelerate rapid growth. Both types of organizations are critical to the startup ecosystem in India. They both deal with common challenges faced by local startups including but not limited to lack of funding or lack of access to opportunities.

Indian startup team collaborating in a modern incubator office

The Role of Incubators and Accelerators in India

These resources empower startups to innovate, scale, and compete globally, making top incubators and accelerators indispensable to India’s entrepreneurial ecosystem.

The India ecosystem hosts 979 + incubators and accelerators supporting 6,760 + startups with over $538 billion across 25,343 rounds of investments. All these have helped to bridge the gaps in the entrepreneurial lifecycle by providing:

  • Funding: Many accelerators (e.g. 500 Startups, GSF Accelerator) will provide seed funding in exchange for equity in the company, while incubators (e.g. iCreate) may offer grants of up to ₹50 lakhs.
  • Mentoring: Access to experienced entrepreneurs and industry experts who can help startups in understanding how to avoid pitfalls already known to them.
  • Networking: Programs connect founders with investors, corporates, and potential partners, increasing the chances of short-term success and long-term growth.
  • Infrastructure: Shared office and lab facilities, as well as access to technology resources, reduce operational costs for startups.

The overall value they provide gives startups the ability to create, scale, and compete in the global market. Given the importance of incubators and accelerators in contributing value to a startup ecosystem, having successful examples in India is critical to the growth of startups in the country.

Top Incubators and Accelerators in India

Several startup incubators and accelerators have emerged as game-changers in India. Here are some of the most prominent ones:

  • T-Hub (Hyderabad): As the biggest accelerator, T-Hub is helping tech startups get access to funding and mentorship for their global market. It has helped to catalyse over 2,000 startups out there and has focused primarily on AI, health tech, and fintech. 
  • CIIE.CO (IIM Ahmedabad): The incubator is really focused on seed stage startups located in tier-2 and tier-3 cities by providing seed funding of up to ₹10 crores and access to IIM’s alumni network as well. 
  • NSRCEL (IIM Bangalore): With programs like Women Startup Program or Velocity, NSRCEL has supported several tech and social impact startups with guidance and mentorship to help grow their businesses. 
  • Venture Catalysts: As India’s most active seed investment platform, they have invested in over 110 startups since inception in 2016, and have provided funding and support in business development. 
  • iCreate (Ahmedabad): An incubator focused on deep tech, iCreate supports deep tech startups working in areas like biotech, robotics, and green energy by providing grants and R&D facilities. 

These top incubators and accelerators cater to diverse sectors, from health tech to clean energy, ensuring startups at different stages find the right support.

How Incubators and Accelerators Drive Startup Success

Incubators and accelerators in India have a critical role in turning ideas into scalable businesses. They provide structured programs that address the following gaps businesses face:

  •  Product Development: Incubators like Social Alpha have high-tech labs for developing prototypes, while accelerators like GSF offer workshops for refining business models. 
  • Market Access: Programs like NASSCOM’s 10,000 Startups have developed platforms to connect startups to corporates and global markets. 
  • Funding: Accelerators like 500 Startups and Prime Venture Partners invest investors ₹1-5 crores that enables start-ups to scale fast. 
  • Skill Development: Mentorship from industry leaders enables founders to develop the skills needed in fundraising, marketing, and operations. 

There are many examples of start-ups like Razorpay and Meesho that leveraged accelerator programs like 500 Startups (a global accelerator) to scale their businesses.

Looking to raise funds for your startup? Read our guide on Startup Funding Trends in India 2025 to make informed decisions.

Government Support for Incubators and Accelerators

The Indian government continues to promote the startup ecosystem with schemes such as Startup India and Atal Innovation Mission (AIM) which has resulted in more than 300-500 incubators in the country. State schemes like Gujarat’s Startup Policy and Bihar’s innovation fund offer grants and infrastructure for incubators, whereby the Startup India Seed Fund Scheme (SISFS) provides financial support to incubators to enable them to develop early-stage startups.

Conclusively, the new schemes and programs have democratized access to resources -particularly in tier-2 and tier-3 cities– which will promote inclusive growth and support the startup ecosystem. Programs such as NASSCOM’s 10,000 Startups have added significant value with support for over 11,000 startups.

Discover  Why Startups Are Moving to Tier 2 and Tier 3 Cities in India In Our Insightful article.

Challenges and Opportunities

Incubators and accelerators have changed the landscape of startups in India, but challenges still exist. Most of these programs are located in metro and urban cities, so rural startups are left without sufficient support. In addition, potential founders may be turned off by the selection processes of accelerators such as GSF, which can be demanding and overwhelming for early-stage founders. 

The good news is that there are opportunities available to address these challenges:  

  • Sector-Specific Programs: Incubators such as HealthStart deal with niche sectors, like healthcare, and there are initiatives that address specific issues in particular industries. 
  • Global Scale: There are programs like India Accelerator that help startups expand to global markets, which can enhance their competitiveness as global players. 
  • Range of Support: Programs such as Social Alpha support social impact rather than looking for financial return, which focuses on startups that solve environmental and economic challenges. 

With steps to address the programmatic challenges, incubators and accelerators in India can do even more to build an infrastructure for a supportive ecosystem.

Success Stories of Indian Startups

Many Indian startups have reached new heights with the help of some of the best incubators and accelerators:

  • Razorpay: Supported by 500 Startups, Razorpay became a top fintech unicorn, making it easy for businesses to accept online payments.
  • Meesho: Funded by Y Combinator, Meesho transformed social commerce with its startup platform that allowed small sellers across India to sell online.
  • Healthians: Accelerated by HealthStart, Healthians disrupted the diagnostic services space with tech-enabled solutions and services.

These examples show how incubators and accelerators provide the foundation for exponential growth.

Indian startup pitching to investors

Indian startup pitching to investors in an accelerator program

Choosing the Right Incubator or Accelerator

Choosing the right program is heavily reliant on the stage of your startup and its goals. If you are an early-stage startup, you should go for incubators, such as iCreate or CIIE.CO, that can give you long-term support. If you are looking to scale rapidly, you should consider accelerators, such as T-Hub or GSF. When selecting a program, investigate their focus areas and funding structure, as well as the stories of successful alumni with the program to determine whether the program aligns with your vision.

Startups should also create a compelling pitch detailing the innovation and scale, as pitches will affect acceptance into the program. Getting in touch with mentors and alumni can help you better understand the application process.

The Future of Incubators and Accelerators in India

India’s incubators and accelerators are entering a new era with new emphases on deep tech, sustainability, and social impact. Programs like Social Alpha and DERBI Foundation have ramped up their efforts to support startups focusing on the many challenges we now face. The rapid growth of India‘s startup ecosystem will see incubators and accelerators like these becoming a vital part of the landscape in support of innovation and global unicorn producers. 

Government initiatives and private investment adds a layer of sustainability to these incubators and accelerators, fast-tracking India‘s global destination for entrepreneurs. Indian startups will also ramp up the innovation challenge, thus redefining industries across the globe.

Conclusion

An incubator and accelerator are the crux of the startup ecosystem in India as they provide resources, mentoring, a solid network or both to aid in their success. From funding to skills development, incubators help and enable entrepreneurs to have the access to resources while taking the appropriate steps to scale. With the help of top-rated incubators and accelerators, Indian startups can raise the bar for entrepreneurship by quickly turning ideas into innovative businesses to foster back to economic development. 

Please, check-out GrowthInfy’s startup resources to discover more ways to scale your startup and develop growth strategies for your startup.

Why Startups Are Shifting to Tier 2 & Tier 3 Cities in India

Why Startups Are Shifting to Tier 2 & Tier 3 Cities in India

Posted on: by: Aditya Narayanin: Startup UpdatesLeave a reply

Why Startups Are Moving to Tier 2 and Tier 3 Cities in India

India’s startup ecosystem is in a state of rapid transformation. Once subject to major city hubs like Bengaluru, Mumbai, and Delhi-NCR, entrepreneurship is growing at an incredible rate in Tier 2 and Tier 3 cities like Jaipur, Indore, Coimbatore, and Bhubaneswar. The transition is driven by a mix of reductions in overhead costs, access to new talent, digital infrastructure, and most importantly government support. Let’s explore why the new focus of startups are smaller cities in India.

Modern startup office with employees working in a Tier 2 city in India

Lower Operational Costs: A Financial Advantage

Startups in Tier 2 and Tier 3 cities do not have the same expense profile as working in metros. For instance real estate (offices and employee housing) could be 25-50% less desirable in a city like Jaipur or Surat, so organizations representing startups can use less resources or budget. Office space and utility costs are a fraction of costs in any of the metros allowing startups to utilize their budgets to the fullest and work around margins that range. This is particularly great for bootstrapped startups or the early stage of funding.

The salaries in Tier 2 and Tier 3 cities are competitive and lower than Tier 1 cities. This gives Indian entrepreneurs a chance to find talent, especially because they are able to pay talent at a balm to their operation. Entrepreneurs can hire skilled professionals without the financial strain of metro-level compensation. This financial flexibility allows startups to invest more in innovation, product development, and marketing.

Access to Untapped Talent Pools

There is an increasing talent pool of digitally literate young professionals in Tier 2 and Tier 3 locations. Smaller cities such as Indore and Chandigarh develop nearly 60% of the engineering, arts, and science graduates in India, providing a net talent supply. Startups like Minimalist based in Jaipur, have been able to tap into a local labour market that is eager to recruit local talent with candidates even willing to move to these areas for the right opportunity.

Young professionals collaborating in a startup office in a Tier 3 city

 

Secondly, the talent pool stability that smaller cities provide is an added benefit. The highly competitive nature of larger metropolitan areas leads to higher rates of turnover due to job-hopping employees. However, employees in smaller cities tend to have a longer tenure before moving on to new opportunities. This reduced turnover cost makes larger tiers, such as Tier 2 and Tier 3 cities an attractive option in building a loyal and longer-term team.

Robust Digital Infrastructure

India’s digital divide is decreasing very quickly with initiatives such as BharatNet and Digital India. High-speed internet, cheap smartphones, and applications such as UPI have created a digital connection in Tier 2 and Tier 3 cities. Startups can now reach customers, onboard vendors, and scale up in areas previously considered remote.

Case in point, edtech startups are in cities such as Patna, and taking advantage of local dialects to develop specialized content. Logistics startups in Bhubaneswar continue to optimise rural deliveries. These tools have opened opportunities for startups to reach local markets, as well as scale sustainably, both in India and abroad.

If you would like to gain some insights into how to leverage digital tools, read this blog on digital marketing for startups.

Government Support and Initiatives

The Indian government has played a very significant role in encouraging the growth of startups in smaller cities. Programs such Startup India, BharatNet, and Digital India Startup Hub help provide funding, mentors, and infrastructural abilities. According to the Ministry of Commerce and Industry, approximately 50% of DPIIT-recognized startups (about 56,000), are based in Tier 2 and Tier 3 cities, due to the efforts of the government and states.

States are also taking action. For example, Madhya Pradesh has a Startup Policy, Kerala has a Startup Mission. Both offer financial benefits and innovation funds for entrepreneurs in cities such as Indore and Kochi. These strategies provide an environment in which startups can flourish.

Untapped Markets and First-Mover Advantage

Tier 2 and Tier 3 cities present under-served markets with increasing consumer demand. These are some of the fastest urbanising areas of the country, and with rising disposable incomes and increasing internet penetration, these consumers are hungry for modern products and services. Start-ups like SuperK in Kadapa and eduSeed in Virudhunagar are taking advantage of this demand, with less competition locally in retail and education respectively.

Having a first mover advantage while at the same time building brand loyalty is critical before larger operators-enablers can penetrate these markets. The reach of e-commerce players like Amazon and Flipkart from urban centres to Tier 2 cities such as Lucknow, with consumer demand and spending on the rise, and their brand building from this, will put competitive pressure on the likes of SuperK and eduSeed.

Zoho Corporation (Tenkasi, Tamil Nadu)

Challenges in Tier 2 and Tier 3 Cities

Even when potential opportunities exist, startups in smaller cities will encounter obstacles. Limited access to funding will create constraints. Only 12% of startups receive pre-seed funding, and a small 2% receive Series A. Infrastructure, like access to roads or public transport, may block operational progress.

There is also a scale factor from local markets to beyond local markets, as well as limited resources and limited mentorship. However, partnerships with incubation centres like the Sikkim Entrepreneurship and Economic Development Cell or IIT Guwahati’s Technology Incubation Centre, are helping with the gaps through their network of support, mentoring and funding.

Success Stories from Smaller Cities

More than a few startups have shown that there is potential in India’s Tier 2 and Tier 3 cities. OYO Rooms began in Ahmedabad and eventually grew from an online budget hotel platform to a global unicorn. CarDekho began in Jaipur and eventually became a leading online platform for car transactions. These success stories create pathways for new entrepreneurs while also drawing investor interest.

Another example of innovation outside of the metro cities is the fintech startup, PhiCommerce that started in Pune or the DeepTech company, Saankhya Labs that began in Visakhapatnam. Both used available talent and local infrastructure to create globally scalable and competitive solutions.

The Role of Coworking Spaces

The emergence of coworking spaces in Tier 2 and Tier 3 cities has contributed to the significant growth of startups in these cities. Demand for flexible workspaces in cities like Jaipur and Indore have increased by 45%, with affordable office space options for startups and remote workers. Coworking spaces in these cities also provide start-ups and remote workers access to modern-day amenities which encourage collaboration and innovation.

The Future of Startups in Smaller Cities

The startup craze in Tier 2 and Tier 3 cities is ready to shift into a higher gear. Predictions by a NASSCOM and Red Seer report in 2024 show that by the year 2026, 58% of the new user acquisition for consumer internet startups will be from non-metros. Consumer internet startup funding has risen from ₹375 billion in 2021, to ₹1.13 trillion in 2023. This sector is destroying the idea of traditional investment in startups.

As digital penetration deepens and government support continues to strengthen, cities such as Surat, Coimbatore, and Chandigarh seem primed to emerge as hot spots for innovation. From agritech, edtech, and fintech, startups that focus on solving local issues will be the drivers of economic growth and job creation.

Conclusion

The relocation of startups to Tier 2 and Tier 3 cities signifies the beginning of a new era in India’s startup ecosystem. The lower cost of doing business, availability of large talent pools, ready access to digital connections, and government support are reasons that Tier 2 and Tier 3 cities provide attractive prospects for entrepreneurs. There have been challenges such as access to funding, poor infrastructure, etc., however the opportunities are far greater than the challenges. These so-called emerging startup hubs can provide startups with better opportunities to not only grow sustainably, but promote the economic transformation of India.

Digital Marketing is Essential for Startups in India

Digital Marketing for Startups in India

Posted on: by: Aditya Narayanin: Startup Updates2 Comments

Digital Marketing for Startups in India

In this fast-paced digital world, Indian startups are facing a tough competitive environment. Digital marketing represents a low-cost way to promote brand awareness, build/reach an audience, and develop a growing company. By 2025, India will have over 900 million internet users, making it clear that digital channels are essential for Indian startups to capitalize on their potential. In this guide, we will provide unique digital marketing tactics for Indian startup companies that will stand apart from the crowded digital advertising space.

Why Digital Marketing is Essential for Startups in India

Most startups have a limited budget, which makes traditional marketing difficult. However, because digital marketing is the most cost-effective option available (SEO, social media marketing, campaigns and emails, etc.), it allows startups to reach prospects and customers more affordably than traditional marketing options. Digital marketing is trackable, which means startups can quantify ROI on their spend and adjust their approach in real time. In India, the rise of affordable smartphones and internet access means that more people are engaging online as well, creating an appealing opportunity for startups to connect with customers.

Equally important, digital marketing is an equal playing field. In other words, small businesses and startups can easily compete against larger brands if they use data-driven tactics. For example, 44% of India’s advertising spend is now digital advertising, which illustrates it is trending towards the complete dominance of consumption. Lastly, startups that choose to ignore digital marketing channels are taking a risk in a competitive market.


A laptop displaying digital marketing charts and graphs

Key Digital Marketing Strategies for Indian Startups

1 . Search Engine Optimisation (SEO)

Startup SEO is a fundamental piece for organisations looking to improve their online presence and improve their daily traffic. As both startups and established businesses can benefit from improving an organisation’s web presence, we will focus on how startups can structure search engine optimization, or SEO, to reference search engines such as Google to drive organic traffic to their site. Good and strategic SEO can include keyword research, on page SEO (such as meta tags and alt text), and technical SEO (such as speed and mobile friendliness).

In India, where 87% of smartphone users are searching every day, local SEO is essential because it allows startups to research how many people are searching for specific terms. So, if a startup is venture capital funded, you would also want to drive foot traffic from local customers where possible.

For example, if the startup in Bangalore when using specific keywords searches for “best cafes in Bangalore”, then it makes it easier for the startup to drive local foot traffic.
SEO tools such as Ahrefs or Google Keyword Planner allow you to generate traffic based on high volume keywords which help startups organically based on even one blog a week, you will establish yourself as an expert in your sector.

2 . Social Media Marketing (SMM)

India has over 265 million YouTube users and millions on Instagram, X, and LinkedIn. Social media platforms allow startups to engage audiences with creative content like videos, polls, and stories. Tailor content to platform-specific audiences—LinkedIn for B2B, Instagram for lifestyle brands.
Startups can leverage influencer marketing to amplify reach. Micro-influencers with 10,000–50,000 followers often deliver higher engagement at lower costs. Regularly analyse metrics like engagement rate and click-throughs to refine campaigns.

3 .Content Marketing

Content marketing builds trust and authority. Whether blogs, videos or infographics, content introduces your audience to your friendly voice, creating brand loyalty. In India, video is king – according to Cisco, video content will account for 82% of all internet traffic by 2022. Video is king. Create short (less than one minute), fast-paced snippets for sites like YouTube, Instagram stories, and TikTok, where audiences thrive on fast-paced content.
For example, a fintech startup could create explainer videos for financial planning. You can also repurpose. For example, take a blog post and break it down into a social media post or even a podcast. Not only does content increase brand trust, but quality content also improves SEO, creating a virtuous cycle of visibility and engagement.

4 . Pay-Per-Click (PPC) Advertising

PPC ads on Google Ads or Meta are a fast way to advertise and get your brand in front of people. PPC is ideal for startups, who want to target certain demographics on a budget. Use conversion intelligence to optimise ad expenditure as an example, when a fintech startup further refined their Google Ads, their leads surged by 300%.

In India, mobile advertising will be the leader by 2028, when it will be responsible for 70% of all ad expenditure. It is important for you to determine the ultimate goal of your advertising, either for brand awareness or conversions, and to measure success using metrics like cost-per-click (CPC). If you want to remarket to people that did not convert, remarketing ads can offer your brand another opportunity to reach customers.

 

A person analysing PPC ad performance on a computer screen

5. Email Marketing

Email marketing continues to be a valuable tool for lead nurturing. Sending targeted and personalised emails like welcome sequences or product updates can help support some customer loyalty. In India, startups can use email marketing to offer discounts or success stories to drive repeat purchases.
Mailchimp or Sendinblue can help businesses manage their campaigns. Segment your audience by behaviour—such as a new subscriber or active buyer—to improve open rates. A/B test your subject lines to optimise engagement.

Challenges in Digital Marketing for Indian Startups

Despite its advantages, digital marketing has its challenges. Budgets are often limited, preventing the use of higher-end tools or agencies, and fierce competitors require marketers to be agiler than ever in terms of shaping their campaigns to stand out. In a world where privacy concerns and ad fraud are a constant worry in campaigns, marketers also have to monitor their campaigns ethically and address these rogue problems.

But do not worry ! Start-ups don’t have to act like a fortune 500 company to market products online; they can approach digital marketing from a number of angles to overcome hurdles. Focus on niche markets, increase skills with internal digital marketing team members, and use free tools available such as Google Analytics. Hiring a digital marketing agency or freelancer is a cost-efficient resource if you really need an expert to take the reins on your campaigns.

Competitive Analysis: Staying Ahead in India’s Digital Landscape

Competitive analysis is vital for startups; it’s essential to identify five to ten direct and indirect competitors and investigate their digital strategies. It can make sense to use tools like SEMrush to identify the competitors’ keywords, backlinks, and ad campaigns. For example, a SaaS startup can review how frequently competitors publish or how much their audiences engage on social media.
Compare your user experience (UX) and SEO performance to the competitors UX and SEO. Two examples to help build a case for improvement are: do a SWOT analysis to consider strengths or elements that might be missing, and then use the information you’ve collected to build a data-driven case to improve your startup strategy or seize a market opportunity.

Emerging Trends in Digital Marketing for 2025
1. Artificial Intelligence (AI)

AI is changing the landscape of digital marketing in India. Businesses are deploying technology such as chatbots and predictive analytics to develop a more personalised customer experience. A PWC report comments, 77% of Indian businesses that use AI report increased customer satisfaction. For startups, AI can be a game changer by automating certain tasks – like targeting ads or developing content – that would normally take up significant amounts of time and money.

2 .Voice Search Optimisation

As voice search is on the rise thanks to Alexa and Google Assistant, it’s key to optimise your content for conversational queries such as, “best startup marketing agency near me.” A focus on long-tail keywords and questions such as FAQ pages will make it easier for voice search to return helpful results.

3 .Programmatic Advertising

Programmatic ads use AI to buy ad space in real-time, improving targeting precision. This trend is growing in India, enabling startups to maximise ad efficiency.

 

A futuristic interface showcasing AI-driven marketing tools
How to Choose a Digital Marketing Agency in India

Startups without the in-house capacity to continue collaborating with a digital marketing agency is the best course of action. You may wish to engage with agencies that have experience in your particular niche, e.g. GrowthInfy and their tailored services for startups. Look for agencies that openly share their work and results.

Regardless of where you are located, cities like Delhi, Bangalore and Kolkata have top agencies that offer things like: SEO, PPC, and SMM. If they can deliver against your budget and every goal you expect.

Scaling Your Startup with Digital Marketing

Digital marketing is a significant advantage for Indian startups. Digital marketing strategies including search engine optimization, social media marketing, content marketing, pay-per-click advertising, and email marketing all contribute to getting an online presence. It is important to keep up with trends including AI and voice search, and to conduct competitive analyses on a regular basis. Your Indian startup can excel in the constantly changing digital environment with the right strategies.

The Role of Women Entrepreneurs in the Indian Startup Ecosystem

The Role of Women Entrepreneurs in the Indian Startup Ecosystem

Posted on: by: Aditya Narayanin: Startup UpdatesLeave a reply

The Role of Women Entrepreneurs in the Indian Startup Ecosystem

Women entrepreneurs are changing the landscape of startups in India and are paving the way for innovation, economic growth and social change. Indian women have had societal challenges and historical barriers which have made them bind their potential as entrepreneurs. Despite restrictions, women entrepreneurs have made a lasting impact on India’s social, economic and entrepreneurial landscape. For example, as of March 2023, women-run startups made up about 18% of all 80,000 startups in India. In this article, we will discuss the contribution of women entrepreneurs in India, the challenges they face, the various government schemes for women entrepreneurs, the various financial instruments to fund women entrepreneurs (such as loans, and other financial instruments) and much more.

The Rise of Women Entrepreneurship in India

Women entrepreneurship in India has observed huge growth supported by more education and technology, and enabling policies. The female entrepreneurship sector in India is expected to grow by 50% from 2014, according to a Global Entrepreneurship Monitor (GEM) report, with women like Falguni Nayar (Nykaa), and Ghazal Alagh (Mamaearth) blazing new trails in unicorn status; and indirectly inspiring more women to enter and lead in traditionally male-dominated sectors like tech, e-commerce, and biotech.

The impact of women-led startups goes beyond increasing economic contributions. They offer inclusive workplaces, they provide opportunities for more women (often over 50% representation in the workforce), and they cater to consumer needs which are often overlooked in the market, for example toxin-free baby care products, or menstrual health education. By 2030, women-owned businesses are expected to generate 150-170 million jobs, and that is a large contributor to India’s GDP growth.

Challenges Faced by Women Entrepreneurs

While women entrepreneurs in India have made significant strides, they continue to face real challenges. They encounter barriers relating to limited access to finance, with 90% of financing sourced from informal sources. Formal institutions often have biases that challenge the ability of women to access opportunities to secure funding for their business. Women also face societal norms requiring them to carry much of the family responsibilities while running and attempting to grow their business. Lack of mentorship, and limited networking opportunities, collectively poses additional challenges to women entrepreneurs trying to scale and grow their business.

Most women entrepreneurs operate micro-enterprises, with over 99% of women-owned MSMEs considered one-person businesses, they miss out on an opportunity to make real change. Gender-based stereotypes and low financial literacy often compound the problem when trying to secure loans or investment. It is apparent there is a need for targeted efforts and solutions, to support nurturing women entrepreneurship in India.

Government Schemes Empowering Women Entrepreneurs

In order to foster women’s entrepreneurship, the Indian government has introduced a number of schemes. For example, in 2019, NITI Aayog launched the Women Entrepreneurship Platform (WEP) to assist women and help them scale their ventures. The WEP provides mentorship, resources, and networking. Under the Government of India’s Stand-Up India scheme, loans of ₹10 lakh to ₹1 crore for greenfield projects are made available to women starting their business. The Stand-Up India scheme also mandates that there is at least one woman borrower from each scheduled commercial bank branch.

The Udyogini Scheme, launched by the Women Development Corporation, provides financial support to women in rural areas and certain backward areas, offering loans up to ₹3 lakh to women wanting to start small businesses. The Trade Related Entrepreneurship Assistance and Development (TREAD) scheme provides funding of up to 30% of the project costs of establishing a women-led enterprise. Through these schemes, the Government of India, aims to address the gender gap with respect to entrepreneurship and facilitate greater economic empowerment of women.

Women Entrepreneurship Loans: Financial Empowerment

Access to finance is very important for women entrepreneurs to start and/or grow their business. The Mudra Yojana under the Pradhan Mantri Mudra Yojana (PMMY) offers micro-loans of up to ₹10 lakh, a decent amount of which has been availed by women, especially for micro-enterprises. The Annapurna Scheme also provides loans of up to ₹50,000 for women micro-entrepreneurs in the food and catering sector and has eased access to finance for small-scale food and catering entrepreneurs.
Public and private banks, as well as NBFCs, have also introduced loan products for women, e.g. the Cent Mahila Scheme by Central Bank of India, and Dena Shakti Scheme by Dena Bank, which has been able to provide different levels of concessional interest to women entrepreneurs. However, many women entrepreneurs still face challenges such as lack of collateral and documentation, for which they need to improve their learning and awareness of finance.

A woman entrepreneur focused on her laptop, managing her startup.

Impact of Women Entrepreneurs on the Startup Ecosystem

Women entrepreneurs are reshaping India’s startup landscape, creating new ways for solving old problems, providing more inclusive solutions. Aditi Gupta, for example, is changing the conversation on menstrual health both with her organization Menstrupedia, which is focused on educating people about menstrual health, and as a woman breaking taboos around menstruation. Kiran Mazumdar-Shaw’s Biocon has changed the face of biotech in India, making it a global force in the industry. The economic impact of these businesses are helping to employ more people and added to the economy in general, but they also have a social impact by helping to promote social change.

Women-led startups are also more likely to produce a return on investment than male-led startups, roughly 35 percent higher ROI on average. They tend to have lower costs because they operate using limited resources and a lean business model. The mission of women-led startups is usually focused on sustainability, community welfare, and social justice. They also take the environmental sustainability and social justice vision into their businesses and life, which is a unique contribution to India’s startup ecosystem. They introduce new perspectives that involve promoting gender parity and empowering future generations.

Overcoming Barriers: Strategies for Success

Women entrepreneurs must use and maximize mentorship programs and networking platforms, such as WEP and SHEROES, to overcome many barriers. Increasing one’s financial literacy is key for understanding the loan process and accessing funding. Unfortunately, many women entrepreneurs may not know that incubators and accelerators available through the Startup India program can streamline funding and deliver technical and strategic assistance.

Women entrepreneurs looking to expand their businesses beyond geography into a larger market, especially in the context of international competition, can also embrace digital tools and ecommerce platforms. For actionable strategies for digital transformation as a woman entrepreneur, be sure to check out GrowthInfy’s blog on digital marketing for startups. Implementing these strategies is critical to empower women to successfully grow their ventures and compete on the global stage.

Success Stories of Women Entrepreneurs

  • Falguni Nayar (Nykaa): Transitioning from investment banking, Nayar founded Nykaa in 2012, now valued at ₹56,600 crores, revolutionising India’s beauty and wellness e-commerce.
  • Ghazal Alagh (Mamaearth): Co-founding Mamaearth in 2016, Alagh addressed the need for toxin-free personal care, achieving a ₹15,500 crore valuation.
  • Kiran Mazumdar-Shaw (Biocon): Starting Biocon in a garage with ₹10,000, Shaw built a biotech empire worth nearly $7 billion, inspiring countless entrepreneurs.

These stories highlight the resilience and innovation of women entrepreneurs, paving the way for others to follow.

A confident woman entrepreneur pitching her startup idea in a meeting.

The Future of Women Entrepreneurship in India

Women entrepreneurship in India appears to have a bright future, as estimates suggest it could rise to 33% of all businesses by 2030. Government initiatives and support from the private sector are helping to build an enabling environment for women entrepreneurs in India. There are obstacles, like addressing gender biases in funding and providing proper access to mentors.

Technology will be key, as it allows women to harness applications like AI, e-commerce, and digital marketing in order to scale their business. By continuing to advance inclusive policies and promoting women to pursue STEM education, India has an unparalleled opportunity to utilize the full potential of its women entrepreneurs in bringing about sustainable economic development.

Conclusion

Women entrepreneurs represent the backbone of India’s emerging startup ecosystem. Entrepreneurs are critical to economic growth, job creation and social empowerment. Despite limitations in funding, society and systems, programs like the WEP & Stand-Up India scheme and women-specific loans for entrepreneurship are all stepping stones to success for women. Responsively using access to mentor support, digital platforms, and public support from the Government, women can overcome challenges and develop their transformational impact.

For many more resources on scaling your startup journey, take a look at GrowthInfy’s startup trends blog and think of the rise of women entrepreneurs as not simply a trend but a movement to change the future of India.

Latest Trends in Startup Funding in India: 2025

Latest Trends in Startup Funding in India: 2025

Posted on: by: Aditya Narayanin: Startup Updates1 Comment

Startup Funding Trends in India 2025

A dynamic combination of sectoral shifts, strategic capital allocation, and cautious investor sentiment characterises . India’s startup funding environment in 2025. The ecosystem is resilient and promising despite some volatility, thanks to targeted investments in high-potential startups and industries. This expert analysis, offers thorough insights into the most recent trends influencing startup funding in India this year.

1. Funding Overview: Growth Amid Volatility

The Indian startup funding chart in 2025 has been a rollercoaster ride. Following a robust bounce in Q1, when startups collectively raised between $2.5 billion and $3.1 billion—a 40% increase year-on-year—April saw a steep drop to $745 million, down 58% from January. But May bounced back strongly, crossing the $1 billion mark, driven by big deals in logistics and healthtech spaces.

This volatility is a sign of a more general rebalancing in investor strategy, away from indiscriminate growth chasing and towards a more disciplined, fundamentals-based approach to investment.

2. Shift in Investor Mindset: From Growth to Profitability

The most notable trend in 2025 is the change in investor thinking. Capital continues to be present but selectively invests in those startups that have clear revenue strategies, profitability trajectories, and sector differentiation. That is:

  • Late-stage startups remain to dominate the lion’s share of funding, with mega-rounds now increasingly becoming the norm. For instance, delivery company Porter raised $200 million, and Citykart raised $63 million in growth-stage funding in May.
  • Seed-stage investment has tightened significantly, with heightened wariness towards early-stage businesses. The seed funding decreased to $3.2 million in four startups last week from $27.6 million before.
  • Investors are preferring startups with healthy fundamentals, viable business models, and the ability to create value in the longer term over scaling quickly at the cost of everything.

3. Sectoral Trends: Healthtech, Logistics, Fintech, and AI Lead

Certain sectors are driving the funding momentum in 2025:

  • Healthtech has proven to be a major growth sector, with companies such as PB Healthcare raising $218 million, with an indication of growing investor optimism in healthcare tech.
  • Logistics and supply chain technology remain a draw for major investments, exemplified by Porter’s $200 million Series F round and other transactions in the sector.
  • Fintech is resilient, with early-stage companies such as Saarthi Finance raising substantial Series A capital, reflecting continued interest in product differentiated financial services.

AI and enterprise technology are gaining popularity as investors search for startups that are using innovative technologies to tackle intricate challenges.

4. Rise of New-Age Investors: Family Offices and Corporate VCs

2025 has also witnessed significantly higher participation from family offices and corporate venture capital (CVC) funds like Premji Invest, Flipkart Ventures, and Salesforce Ventures. These investors offer patient capital and strategic assistance, tending to prefer technology-oriented and sustainable startups. These investors’ participation is enabling startups to overcome funding hurdles and scale up across the world.

5.IPO Preparations and Exit Opportunities

With 23 startups lining up for IPOs in 2025, the ecosystem is also experiencing a maturation phase whereby investors are looking at exits via public markets. This is affecting funding dynamics with some capital shifting away from private rounds towards listings publicly, adding to the conservative investment climate experienced in mid-2025.

6. Geographic and Stage-wise Funding Distribution

  • Growth and late-stage funding dominate , accounting for over $637 million in May alone, indicating investor preference for more established startups.
  • Early-stage financing is still substantial but is under pressure, dropping 24% from a quarter-on-quarter basis in Q1 2025.
  • Seed-stage capital is under stress, so startups need to show traction within a short time to secure capital.

7. Government Initiatives and Ecosystem Support

Government actions and initiatives remain supportive of the startup ecosystem, delivering regulatory support, funding incentives, and infrastructure development. These are foundational to the positive long-term picture in the face of short-term funding volatility.

Conclusion

The Indian startup funding scenario in 2025 is marked by strategic capital allocation, industry concentration, and a shift towards sustainable growth. Although volumes have seen fluctuations, the overall direction is towards a mature ecosystem where investor restraint and company fundamentals are at the forefront. Healthtech, logistics, fintech, and AI are the spaces to watch, backed by increasing numbers of family offices and corporate VCs. For entrepreneurs, meeting investor expectations in profitability and defined business models is important to acquire funding

The Emergence of AI Startups in India: Innovations and Key Players

The Emergence of AI Startups in India: Innovations and Key Players

Posted on: by: Aditya Narayanin: Startup UpdatesLeave a reply

 

The Emergence of AI Startups in India

India is emerging as the world AI hub with its growing startup ecosystem. These  AI Startups in India are disrupting conventional industries with intelligent solutions on the basis of machine-learning, deep-learning, NLP, and computer vision from healthcare and fintech to logistics and agritech industries. More government support, VC investment, and talent supply are pushing the AI startup ecosystem in India to new heights.
Why AI Startups Are Booming in India

Here are some of the main reasons why AI startups in India have picked up:

  • Abundant Tech Talent: India produces over a million engineering graduates every year, of which a good number of them have expertise in AI and data science.
  • Government Push: Plans like Digital India, Startup India, and NITI Aayog’s National AI Strategy are driving AI adoption.
  • Availability of Data on a Larger Scale: This large and heterogeneous Indian population leads to a vast expanse of structured and unstructured data-a goldmine waiting to be tapped for AI training models.
  • Low-Cost Innovation: Indian startups build AI solutions cheap; hence, they can compete globally.

Key Players in the Indian AI Startup Ecosystem

Here are some of the most talked-about opportunities and successes for AI startups in India in 2025:

1.Haptik

Backed by Reliance Jio, Haptik is the frontrunner in conversational AI. AI chatbot and voice assistant technologies are being used by large enterprises to service and engage their customers.

2.Arya.ai

Arya.ai builds infrastructure tools for deep learning to support complex decision-making, mainly working on autonomous AI systems in financial services.

3.Gnani.ai

Gnani is transforming voice recognition and speech-to-text technologies for Indic languages, establishing AI accessibility for the masses in BFSI, edtech, and customer support.

4.SigTuple

SigTuple uses AI for medical diagnostics with the automation of visual medical data analysis, thereby empowering pathologists to make faster and more accurate decisions.

5. Mad Street Den

A retail AI startup, Mad Street Den uses computer vision and AI to personalize shopping experiences for major fashion and e-commerce brands.

6 . Niramai

This Bangalore-based health tech startup utilizes AI-powered thermal imaging for the early detection of breast cancer, giving a noninvasive and radiation-free alternative.

Innovations That Are Reshaping the AI Landscape

The AI startups in India are not only contributing innovations in software — they reach across infrastructure, ethical AI, and domain-specific applications:

  • Edge AI: Various startups are developing deploying AI models on low-power edge devices for enhancing real-time responsiveness and privacy.
  • AI for Bharat: Businesses are developing AI tools that can function across India’s diverse languages and literacy levels, with an aim to target rural and semi-urban areas.
  • AI in Governance: Startups are collaboratively working with public institutions to implement AI in areas such as predictive policing, disaster management, and public health monitoring.
  • Generative AI: Motivated by ChatGPT and DALL·E, Indian startups are looking at generative AI to generate content, prototype designs, and automate creative work.

Challenges and the Road Ahead

Despite the momentum, AI startups in India face some key challenges:

  • Data Privacy Issues: Since AI depends on enormous data sets, ethical collection and privacy of data are a concern.
  • Regulatory Hesitation: Uncertainty surrounding regulations on AI use can slow innovation and investment.
  • Monetization: Most AI startups have difficulty scaling business-sustainable models in a maturing market.

With growing digital adoption, strong support ecosystems, and international collaborations, the future prospects appear promising.

Final Thoughts

The growth of AI startups in India is an indication of how technology is redefining the future. From overcoming domestic issues to crafting globally scalable solutions, such startups are spearheading a revolution in smart innovation. With India continuing to ascend the AI value chain, more unicorns, deeper penetration, and pathbreaking steps in the coming years can be expected.

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