STARTUP INDIA
Farmer's son from small Tamil Nadu village builds Rs 1.5-crore software business after quitting nine-year Chennai IT career & starting with just two laptops
Eswaran Arumugam launched his Tamil Nadu-based software venture, Yaa Creations, with just Rs 1 lakh borrowed from his brother and two laptops. The business faced several hurdles, including financial strain, disruptions caused by the Covid-19 pandemic and accumulated debt of Rs 5 lakh. However, he gradually turned things around and expanded operations. Today, the company, headquartered in Rasipuram in Namakkal district, employs 26 people, serves clients in seven countries and completed projects worth Rs 1.5 crore in 2025.
Bigger cheques, fewer winners in India’s AI boom
Indian AI startups raised $1.6 billion in funding during the first nine months of 2026. While AI infrastructure attracted significant investments, application startups faced declining funding and challenges in securing customers. Large transactions constituted most of the total funding, highlighting a disparity in investment distribution.
From Rs 25,000 to Rs 2.5 crore: Three Pune brothers turn college kabada project into goldmine, sold 20 lakh kg scrap
Three Pune brothers have transformed a college project into a Rs 2.5 crore scrap collection business. Jayesh, Ganesh and Vaibhav Pakhale started ScrapDeal in Pune with an initial investment of just Rs 25,000. The startup has recycled 20 lakh kg of scrap, serves over 1 lakh individual customers and works with more than 100 businesses. The brothers are targeting Rs 5 crore in revenue in FY27.
EPFO total contributions expected to rise by 25% in 2027-28 due to wage ceiling increase
EPFO is forecasting a major increase in its total contributions for the financial year 2027-28. The wage ceiling has been raised to ₹25,000 from ₹15,000, effective September 17. Total contributions for the current year are estimated to exceed previous budgeted amounts significantly. Additionally, the board will consider investing up to 3% in alternative investment funds.
Tax-wise, $-foolish: Saving Dalal Street could come at a cost to Startup Street
India's financial landscape is experiencing pressure with foreign portfolio investors becoming net sellers in the market. There are discussions about implementing tax cuts to stabilize the situation, which could disadvantage domestic investors. A focus on only listed shares may divert investments from private markets and harm the startup ecosystem. Expert suggestions advocate for a universal tax reduction applicable to both listed and unlisted shares.
Is EPFO set to invest in startups, AIFs? Report says provident fund body is working on guidelines
Employees' Provident Fund Organisation plans to establish rules for investments in alternative investment funds. The organization is considering allocating up to 3% of new annual accretions to AIFs for diverse investments.
EPFO plans to invest in startups, AIFs five years after govt approval
The Employees Provident Fund Organisation is working on guidelines for investing in alternative investment funds for better portfolio diversification. The proposed allocation could be up to 3% of fresh annual accretions to these funds. This decision follows recommendations for EPFO's participation in the Startup India Fund of Funds 2.0. Proposed safeguards will include limits on individual fund exposures and minimum corpus requirements.
Government mulls simplifying application process under Press Note 2 to ease FDI flow from border nations: Sources
The government had relaxed FDI restrictions imposed under Press Note 3 for countries sharing land borders with India, such as China and Pakistan, through Press Note 2 in March.
DPIIT advances trust-based governance to ease business regulations across India
The government has cut 47,957 compliance requirements across Central ministries and states to ease business operations, including 22,290 digitised, 16,141 simplified, 5,255 decriminalised and 4,271 eliminated, the Department for Promotion of Industry and Internal Trade (DPIIT) said.
GDHS 2026 to focus on implementing AI action
Scheduled for 20-21 November 2026, the Global Digital Health Summit will take place in New Delhi, highlighting the role of artificial intelligence in healthcare. A key feature, The CORTEX Test, will evaluate decision-making from AI, doctors, and collaborative methods.
Textiles Ministry identifies 4,000 startups for export growth support
The textiles ministry has identified over 4,000 textile-based startups for support to scale up and become export-ready over the next three to four years. Consultations with registered startups and small businesses are expected to begin in late November or early December, followed by a national startup conclave in December to assess their needs.
Pitched 2 ideas to PM Modi in 90 seconds on Chennai Metro: Who is AI startup founder Tejas Sudarshan & what did he propose?
Chennai-based startup founder Tejas Parthasarathi Sudarshan pitched two artificial intelligence ideas to Prime Minister Narendra Modi during a Chennai Metro journey, getting around 90 seconds to present his proposals. The Winsen Labs founder suggested connecting students with real-world government projects and creating a unified AI-powered platform to simplify access to public services. He was among 17 startup founders shortlisted by SPI Chennai for the interaction.
India’s family offices bet on homegrown AI firms to gain ground
India’s tech landscape is witnessing an influx of investments from family offices and wealthy individuals. Key players like Premji Invest and Claypond Capital are funding promising AI startups. With at least six companies achieving unicorn status, the environment for AI is becoming increasingly supportive. This shift highlights the need for sustained investment in India’s AI ecosystem. The growth potential is significant, despite challenges in funding and competition.
From Rs 3,500 salary to Rs 1.5 crore per month: How this Ghaziabad man built an e-bike company with his wife's savings
Ghaziabad's Krishna Grover, who started his career with a monthly salary of Rs 3,500, left his corporate job to build Herald E-Bike with support from his wife's savings. The Ghaziabad-based electric two-wheeler company now has 34 models, over 550 active showrooms and a reported monthly revenue run rate of Rs 1.5 crore.
ET Startup Awards 2026 | Govt backing and patient capital propel India's leap into AI and chips: Satyan Gajwani
Gajwani said the ecosystem, once driven by fintech, food delivery, SaaS, commerce, quick commerce and direct-to-consumer brands, was witnessing founders focused on deep, proprietary technology. Indian startups are now building semiconductor chips, AI, robotics, clean energy technologies and new materials, while investors are shaping funds, willing to wait longer for these companies to mature.
AI will fuel another wave of startup creation in two years: AWS’s Jason Bennett
AI-native startups are also showing faster revenue growth and gaining market traction earlier than traditional startups, per Bennett. An AWS study with Strand Partners found that AI-native startups are growing revenues 167% on-year and are 5.5 times more likely to reach earnings of $1 million than non-AI-native startups.
Agrani in talks to raise Rs 800-850 crore from Samsung, 360 One, Peak XV
The Bengaluru-based company is also looking to apply for around Rs 120-130 crore under the government-backed Research, Development and Innovation (RDI) scheme as part of the fundraise, the sources said.
IMC 2026 to put DeepTech at centre of startup programme ASPIRE
India Mobile Congress 2026 will take place from October 7 to 10 at Yashobhoomi Convention Centre in New Delhi. The event will emphasise DeepTech and frontier technologies to support startups advancing from prototype to market. Over 500 startups and 300 venture capital firms are expected to participate, fostering connections through one-on-one meetings.
Building businesses for the next billion Indians: What entrepreneurs need to understand
India is undergoing a remarkable transformation as more individuals choose entrepreneurship over conventional careers. The influx of technology and digital tools presents new avenues for small enterprises to flourish.
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