BENGALURU: More than 50 per cent of Indian start-ups will emerge from tier-2,3 cities by 2035, and regional development funds would create geographically focused funds targeting start-ups based in these cities, said a new report.
At the 10th edition of the Matrix Global Summit on Tuesday, TiE Bangalore launched its report and said that the path to becoming a global start-up superpower by 2035 requires a fundamental transformation from fragmented initiatives to systemic capacity building across multiple dimensions.
"India will emerge as the preferred destination for global entrepreneurs and companies seeking to build solutions for emerging markets, while simultaneously serving as a launching pad for innovations targeting developed economies," the report pointed out.
The report, which lays out a long-term blueprint to shape the country into innovation-led start-up economy, said that Patient capital facilitation would connect deep tech start-ups with investors who understand and accept longer development timelines and higher capital requirements characteristic of deep technology ventures while building specialised investor expertise in deep tech evaluation and support.
"“We now have the opportunity to architect an ecosystem that is inclusive by design and transformative by intent, where every Indian, regardless of geography or background, has the tools to build, scale, and lead," Madan Padaki, President, TiE Bangalore & Trustee, TiE Global, said.
The report said the start-up ecosystem will create 50 million direct and indirect jobs, contributing 15 per cent to national GDP compared to current estimates of 4-5 per cent.
Employment generation will include 10 million people employed in start-up-related services and 5 million people transitioning from traditional employment to entrepreneurship through comprehensive support programmes.
Talking about enabling transformation, it says the existing policy landscape suffers from significant fragmentation, with central government initiatives often conflicting with state-level regulations, creating unnecessary friction and limiting scaling potential for start-ups attempting to operate across state boundaries.
"The strategic solution involves establishing a National Startup Policy Coordination Council comprising representatives from key central ministries, state governments, and ecosystem stakeholders. This council would develop a unified policy framework that provides consistency across jurisdictions while allowing for state-level customisation based on local strengths and priorities," it added.
PE-VC investments declines 43 USD to USD 5.3 billion in Q2’25
Meanwhile, Private Equity – Venture Capital (PE-VC) firms invested over USD 5.3 billion (across 248 deals) in Indian companies during Q2’25 (April-June) which is a 43 per cent fall over the USD 9.3 billion (across 275 deals) invested in the same period during 2024.
According to data from Venture Intelligence, the fall in deal value is also similar when compared to the immediate previous quarter (Jan-Mar 2025), which witnessed USD 9.6 billion being invested across 271 deals, Deal volumes in the second quarter decreased by 10 per cent compared to Q2 2024 and 8 per cent compared to the immediate previous quarter.
The largest PE-VC investment in the second quarter was the USD 878 million investment in a publicly listed IDFC FIRST Bank by Warburg Pincus and ADIA.
Goldman Sachs investing USD 600 million in Jubilant Bhartia Group (to support the acquisition of Coke’s India bottling unit) was the second biggest deal of the quarter. This was followed by a USD 202 million investment in personal finance unicorn Groww by GIC and Iconiq Capital.
The USD 200 million investment in hyperlocal logistics unicorn Porter by Kedaara Capital, Vitruvian Partners and Wellington Management was the fourth largest deal.