India celebrates its fifth National Startup Day today. From the startup IPO boom in 2025 to the projected $126 Bn AI opportunity by 2030, the homegrown new-age tech landscape is moving past its adolescence to a phase of maturity. But how far has the ecosystem really come?

The Making Of A Global Hub: A decade ago, India was home to a handful of early stage ventures. Today, it ranks third globally with over 2 Lakh+ DPIIT-registered startups, spanning a wide range of sectors. The ecosystem has minted 126 unicorns and 147 soonicorns, fuelled by billions in VC capital and policy push.

Where Do We Stand? As we enter 2026, the ecosystem stands at the precipice of an AI-led disruption. The Indian government has transitioned from a regulator to an enabler, offering 38,000 GPUs and other incentives to build an indigenous AI model.

The AI Opportunity: Despite the optimism, there remain a few gaps. AI-first startups raised $1.5 Bn in 2025, yet the focus largely stayed on application-level workflows rather than high-stakes AI infrastructure. India’s sovereign AI ambitions are still taking shape and need a bigger push in the next five years.

The 2026–2030 window represents a crucial phase before category consolidation raises the barriers to entry. In this era, moats will be built on workflows, data loops and trust. Reliability will become the decisive metric and products that can crack the complexity of the Indian market will likely gain a competitive edge globally.

Investors are also expected to chase disciplined execution over moonshots, prioritising local problem-solvers that can show real traction. But with much yet to sort, how has the Indian new-age tech ecosystem found its footing in the age of AI? Let’s find out on this National Startup Day.

• After tanking 56% YoY to $249 Mn in 2025, edtech funding is likely to rebound modestly in 2026 on the back of seed-stage deals. VCs project numbers to remain in the range of $350-450 Mn, favouring AI-led startups that demonstrate early revenue traction.
• Test prep and upskilling will continue to lead charts, driven by 25 Mn+ students and corporate reskilling mandates. Unit economics will continue to be the dominant narrative this year.
• M&A activity is also projected to soar, targeting distressed assets at 70-80% valuation discounts. Meanwhile, PhysicsWallah-like listings will remain rare in the absence of sustained profitability.

• After the Sanchar Saathi episode, the Centre has now proposed 83 new smartphone security standards, including mandatory source code disclosure, 12-month log retention requirements, and pre-approval for all operating system (OS) updates.
• Industry experts claim that access to OS code can expose how permissions are enforced, how encryption keys are managed, where vulnerabilities exist and what triggers security controls.
• The new mandates have unsettled smartphone makers, who have urged the complete withdrawal of these new directions. Critics also claim that the plan risks user monitoring and privacy issues in the absence of strong legal firewalls.

• The SC has ruled against Tiger Global in a tax case related to the 2018 Flipkart stake sale. The court upheld tax authorities’ demand that capital gains arising from the investor’s $1.6 Bn stake sale in the ecommerce major to Walmart were taxable.
• The verdict is being seen as a reversal of the India-Mauritius DTAA and is expected to have a far-reaching impact on how foreign investors are taxed in the country.
• Tiger Global routed its Flipkart investment through a Mauritius-based entity during the acquisition, claiming exemption under the treaty. However, tax authorities asserted that the vehicle served as a ‘front’ to avoid paying taxes.

• Amid the startup IPO surge, the auto marketplace has said that it is eyeing a listing in the next 6-12 months. If the plan materialises, CARS24 will become the second Indian auto tech platform to list on the bourses, after CarTrade.
• Spotlighting its H1 FY26 numbers, the company said that its adjusted net revenue rose 18% YoY to INR 651 Cr while EBITDA loss narrowed 36% YoY to INR 162 Cr. It is now targeting a revenue of INR 750 Cr in H2 FY26.
• Founded in 2015, CARS24 operates a marketplace that allows users to buy and sell pre-owned cars. It has raised $1.3 Bn to date and achieved the unicorn status during its $200 Mn Series E fundraise in 2020.

• Jio Financial Services saw its net profit decline 9% YoY to INR 269 Cr in Q3 FY26 as finance costs exploded to INR 212.4 Cr, up 56% sequentially.
• Meanwhile, operating revenue doubled YoY to INR 901 Cr. The company highlighted sustained momentum in all segments, while pointing out that it is investing aggressively for scale.
• JioBlackRock Asset Management scaled AUM to INR 14,972 Cr across 10 funds, while Jio Payments Bank saw total income leap 10X YoY to INR 61 Cr on the back of surging transaction throughput and deposits.

India ranks among the world’s top five military spenders, yet it relies heavily on imported weapons. Ammunic Systems is trying to change this and break the country’s dependence on external players.

Intelligent Weaponry; Founded in 2024, the Bengaluru startup designs advanced electronic fuzes, warheads and munition integration technologies. It claims to have also developed the country’s first advanced electronic underwater fuze for naval munitions and autonomous underwater vehicles.

Prototype To Precision: The startup follows the prototype-to-scale model envisaged by the defence ministry, which combines industry-led innovation with upfront government grants. Within one year, it’s already collaborating with defence PSUs, the Indian Army, Air Force, CRPF, and DRDO.

Desi Munition Maker: Backed by India Accelerator, the startup is looking to localise mission-critical weapon intelligence, enhance battlefield capabilities and reduce import reliance. Early PSU and agency partnerships validate its technology and are expected to accelerate adoption across platforms. Can Ammunic help India become self-reliant in defence technologies?

WinZO is facing one of its most turbulent moments. From ED raids and cofounder arrests to frozen assets and legal battles, here’s a closer look at WinZO’s unravelling.

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