Indian VC ecosystem has changed quite a bit in 15 years
The Indian VC ecosystem has changed quite a bit in 15 years. When we started Zerodha in 2010, “VC” was an exotic term, and there was barely any startup activity. The most popular VCs were dads, uncles and aunts.
Starting around 2010, we began seeing interest driven by India’s “opportunity size.” India’s population has done more to attract VC money than anything else 😛 “India has 120 crore people, and even if 1% buy X”
Then came VC waves in e-commerce and fintech (lending, payments, etc.). However, the easy opportunities are largely gone now. You truly have to do something special to make VC-like returns. Result? A noticeable shift toward more challenging, complex areas, such as deep tech.
But this isn’t just about VC funding—it’s the entire ecosystem developing around it. Cheap Internet has spread talent and aspiration beyond metros into rural India. Better education means more risk-takers, and the growing economy attracts global institutional capital.
Entrepreneurship infrastructure is taking shape through centres like Atal Incubation Centres, BIRAC, Venture Centre in Pune, and incubators at IISc, IITs, and other colleges. The good ones have brilliant mentors guiding young founders from idea to viable business. Culturally, entrepreneurship has become aspirational in parts of the country.
The funding ecosystem itself is growing. Every wealthy individual now has a “family office,” and there’s a global rush into VC/PE. Stocks and bonds are boring; private investing is popular among the wealthy. While there’s stupidity, it’s still net positive. Add smaller angels, founders with exits reinvesting, and corporates like Rainmatter investing their own money.
These factors create feedback loops, building a vibrant entrepreneurial ecosystem. What’s interesting? This is happening as “globalisation” becomes a dirty word and geopolitics forces countries toward self-sufficiency. I won’t debate if that’s good or bad.
I’m hoping this ecosystem grows wider and deeper, with many more Indian startups solving local and global problems. 🇮🇳🦾