India’s start-up ecosystem is rapidly gaining global recognition for its innovation and potential. In a landscape that traditionally favored IT and software services, a new wave of start-ups is emerging, pushing boundaries and exploring uncharted territories.
One such trailblazer is Agnikul Cosmos, an Indian Institute of Technology (IIT) Madras Research Park-incubated start-up that is set to redefine India's role in the space industry. With its mission to launch small satellites at an affordable price, Agnikul Cosmos is just one example of how India’s entrepreneurial spirit is soaring to new heights, from student-driven ideas to cutting-edge space exploration.
Agnikul Cosmos, founded in 2017 by a group of passionate IIT Madras graduates, aims to provide cost-effective satellite launch services by developing the Agnibaan rocket, a highly customisable small satellite launch vehicle. This venture, which began as a research project at IIT Madras, is now gearing up to become one of the first private companies in India to launch satellites into space.
The start-up’s partnership with the Indian Space Research Organisation (ISRO) and the nurturing environment of IIT Madras Research Park have been crucial in transforming Agnikul’s ambitious vision into reality. The company has successfully developed its 3D-printed rocket engines and is on track for its first commercial launch in 2025.
Agnikul’s growth reflects the potential of India’s start-up ecosystem to push boundaries far beyond traditional industries, opening new possibilities for private sector involvement in space exploration.
Agnikul Cosmos is not an isolated case. Mumbai-based start-up Manastu tests a green propulsion system in space. They test-fired their green propulsion system Vyom-2U onboard the POEM-4 on the New Year's eve.
The PSLV Orbital Experiment Module (POEM) is a practical solution deployed by ISRO that allows the Indian start-ups, academic institutions and research organisations to test their space technologies without the need to launch entire satellites.
In India, the entrepreneurial landscape has evolved significantly, with increasing interest from students and professionals alike. Traditionally, the focus was on corporate careers, with students aiming for campus placements and secure jobs at large firms. However, this trend is changing as more students look to establish start-ups. Many students, particularly from technical fields, are now keen to register their own start-ups, using them as a way to boost their profiles and gain experience in business and innovation.
Despite this surge in interest, the success rate of start-ups remains low, with only around 10% of start-ups making it to long-term sustainability. Entrepreneurship, often rooted in innovation, remains a risky yet rewarding pursuit. The focus has shifted from merely creating a business to creating a start-up that brings fresh ideas, solves problems, and scales up quickly.
While entrepreneurship was traditionally viewed as a route to business ownership, the rise of start-ups has introduced a new approach to learning and development. In India, entrepreneurship training was traditionally focused on operations management, small-scale industry entrepreneurship, and the development of business plans. McClelland’s Competency Model was widely used to guide entrepreneurs on personal and managerial competencies necessary for success.
Today, however, start-up training focuses more on design thinking, ideation, and startup valuation, which are key for building and scaling innovative businesses. Programs like Empretec, SIYB-ILO, and Startup India Learning Programmes have introduced new methodologies to guide budding entrepreneurs through the complexities of starting up. Unlike traditional business plans, these programs encourage fast experimentation, prototyping, and market validation, helping start-ups reach the stage where they can attract investors and scale rapidly.
Global success stories like Facebook, which started as a student project in Harvard (initially known as Facemash), have shown that start-ups can grow from humble beginnings to transform entire industries. The company’s transition from a Harvard dorm room to Silicon Valley’s tech hub exemplifies how student-led ventures can evolve into global businesses.
Other successful Indian start-ups such as Ola Cabs, OYO Rooms, RedBus, and MakeMyTrip demonstrate that India’s entrepreneurial ecosystem is not just growing; it is producing industry disruptors. These companies have expanded rapidly, driven by innovation, technology, and a keen understanding of market needs.
Incubation centers and accelerators play a crucial role in nurturing start-ups. In India, organisations like TBI (Technology Business Incubator) and Livelihood Business Incubators provide essential resources, mentorship, and funding to help new ventures succeed. These hubs have helped countless start-ups validate their ideas, develop prototypes, and scale their businesses.
For example, the Y Combinator accelerator has successfully helped companies like Zscaler and Tekion reach global markets, providing them with the resources to grow into billion-dollar ventures.
The process of start-up valuation is also critical. Start-ups undergo rigorous evaluations to determine their financial worth based on factors such as revenue, market potential, and intellectual property.
Understanding start-up valuation is crucial for attracting investors and preparing for acquisition, as it helps to set a fair price for equity and ownership.
How to Form a start-up: From idea to execution
Starting a business today is easier than ever, thanks to government initiatives like Start-Up India. Entrepreneurs can register their start-ups online and obtain a Unique Identification Number. The process involves selecting a business structure — such as a Private Limited Company or a Limited Liability Partnership (LLP) — and completing the necessary documentation. This simple process allows start-ups to tap into the extensive support offered by incubation centers and government schemes designed to foster innovation and growth.
As start-ups scale, they often look to secure funding through angel investors and venture capitalists (VCs). In addition to financial backing, these investors offer mentorship and strategic guidance, helping start-ups navigate challenges and expand their reach.
Platforms like Google Launchpad Berlin Bootcamp, NASSCOM Showcase Start-Up, and Startupnetworkz Singapore provide international exposure and opportunities for Indian start-ups to gain recognition on the global stage.
In the Indian startup ecosystem, bootstrapping is a common approach, especially among early-stage entrepreneurs who rely on personal savings or revenue generated by their businesses to fund growth. This allows founders to retain full control but often limits rapid scaling due to constrained resources.
However, as the need for scaling and innovation grows, startups seek funding from angel investors and venture capitalists (VCs).
Angel investors, often successful entrepreneurs or industry experts, provide seed capital along with valuable guidance, while VCs inject larger sums of money to fuel rapid growth, usually in exchange for equity. To attract such investors, a compelling pitch deck is crucial, as it effectively showcases a startup's vision, market opportunity, and growth potential.
Additionally, celebrities in India have increasingly ventured into startup investments, bringing not only capital but also brand value and extensive networks, which significantly enhance the startup's credibility and visibility. This mix of funding avenues and celebrity involvement is transforming India into a thriving hub for innovation and entrepreneurship.
Government schemes for start-ups
The Ministry of Electronics and Information Technology (MeitY) offers various support schemes to foster innovation and entrepreneurship in India, particularly for startups in the tech sector. One of the key initiatives is the MeitY Startup Hub (MSH), which provides financial assistance, mentoring, and networking opportunities to tech-based startups.
Additionally, the Startup India Seed Fund Scheme (SISFS), launched by the government, aims to provide financial aid in the form of seed funding to early-stage startups. The scheme supports startups in developing and validating their products, and facilitates growth through funding for technology development, prototype creation, and market entry.
These schemes, along with others like tax exemptions, easier regulations, and incubator support, contribute to a vibrant startup ecosystem in India, fostering innovation and job creation.
The success of young entrepreneurs like Rohit Mangesh, the founder of Chocolate Bowl, offers further evidence of the strength of India’s start-up ecosystem. A native of Bhimavaram, Andhra Pradesh, Mangesh’s quick-service restaurant (QSR) business has expanded across three cities in just nine months. Offering affordable franchises and utilising modern tools like Petpooja software for inventory management, Mangesh’s venture exemplifies how a strong business idea, supported by proper training and incubation, can grow rapidly and succeed.
India’s start-up ecosystem is thriving, fueled by innovation and supported by a variety of incubation centers, government programs, and private investment opportunities. Companies like Agnikul Cosmos show that even start-ups from modest beginnings can scale to the level of satellite launches, change the rules of competition in an industry by doing things differently and creating global opportunities.
As India continues to develop its entrepreneurial capabilities, we can expect to see even more success stories emerge, driven by the energy and creativity of its young entrepreneurs. The future is bright for start-ups, and the sky, quite literally, is the limit.
(Dr Mathew CD Chunkapura is an Assistant Professor- Department of Computational Science and Humanities and Placement Officer at Indian Institute of Information Technology (IIIT), Kottayam. Views expressed are his own.)
