Are International Investors Losing Steam on India’s Startups?
Indian representation at YC has plunged — from 66 startups in 2021 to just four in 2024.
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India has built one of the world’s most dynamic startup ecosystems over the past decade. But recent signals suggest international venture capital firms are recalibrating how they assess opportunities in the market.
The number of Indian startups funded by Y Combinator has seen a steep decline—only four were selected in 2024, compared to 66 in 2021. This dramatic drop is linked to several factors: YC’s insistence on startups setting up parent entities abroad, the rising trend of “reverse flipping” (where Indian founders relocate back to India to avoid heavy taxes when listing domestically), and the emergence of more domestic seed funding options that give founders homegrown alternatives.
Techstars’ Mixed Signals
Another global accelerator, Techstars, continues to show interest in India, though at a smaller scale. In 2024, Techstars Seattle invested in four Indian companies, Visionify, Produx AI, ZippiAI, and Chi, as part of its 15th cohort. Earlier, in 2019, Techstars Bengaluru Accelerator had celebrated its first cohort of 10 startups.
In the same year, Indian startup SkySERVE attended the Techstars Space Accelerator, leveraging AI and machine learning for geospatial insights. However, the lists of Indian startups funded by Techstars in 2024 and 2025 are limited, indicating that while Indian founders continue to feature in its global programs, the overall scale of investment remains modest compared to the boom years.
Antler Bets Big on India
Singapore-headquartered Antler is one international VC that has doubled down on India. In 2024, it announced investments in 30 startups, taking its total Indian portfolio to 80 companies. These bets were made through its maiden $75 million India fund, covering sectors such as AI, consumer-tech, fintech, deep-tech, health, and climate.
What stands out is the sheer funnel of interest, over 25,000 founders engaged with Antler’s platform in 2024, underscoring India’s enduring attractiveness for early-stage investors.
Entrepreneur First’s India Push
London-based talent investor Entrepreneur First (EF) has also been expanding its footprint in India. Since launching its India arm in 2019, EF has backed 34 homegrown startups. In 2021, it invested in six companies, and in 2022, another six.
Earlier this year, EF launched its maiden Indian cohort of 50 entrepreneurs, chosen from a pool of 900 applicants. In 2024, it opened a new office in San Francisco’s South Park, giving Indian startups from its Bangalore program the chance to relocate to the US and access international investors, customers, and markets.
Beenext’s Consistent Backing
Singapore-based Beenext has quietly built a strong track record in India. Its portfolio boasts 10 unicorns, 1 IPO, and 24 acquisitions, including well-known names like Shiprocket, BharatPe, and Tokopedia.
In 2025 alone, Beenext funded PayPhi (July 16, 2025), Handpickd (June 4, 2025), Fleetx (May 27, 2025), and Servify (March 20, 2025), demonstrating steady deal activity even in a cautious global funding environment.
Japan’s Genesia Ventures Joins the Game
Japanese VC Genesia Ventures has also begun placing bets in India. In 2025, it led a funding round of INR 21.7 crore for Handpickd, alongside investor Nitin Gupta. Earlier, in 2023, it invested in StepChange, an Indian SaaS company helping enterprises achieve their NetZero targets.
Domestic Capital Momentum
Despite the continued presence of international VCs, India still leans heavily on foreign capital. The ecosystem raised over $12 billion in 2024, but a striking 85% came from overseas investors like sovereign wealth funds and private equity players. Only 15% came from domestic sources.
Industry veterans argue that unlocking more domestic pools of capital could reduce reliance on foreign funds.
In an interview with CNBC, Sanjeev Bhikhchandani, Founder, Info Edge, said: “Family offices are one pool of capital; another pool of capital is the balance sheets of corporations. Can companies invest directly into startups? There are a number of regulatory issues around companies investing in other companies. They might get classified as NBFCs or core investment companies. If some of those roadblocks can be removed, it will help a lot.”
Rahul Bhasin of Baring Pvt Equity Partners, added: “We see lots of new players have come in. But companies don’t simply wake up and grow on their own. It’s not simply about transacting. A lot of it is about making sure that companies are able to access the right talent pool… It’s about understanding the Peter Principle kind of issues which inevitably happen in high-growth businesses. It’s about adapting to customer needs in an ecosystem and environment which is rapidly evolving.”
He further noted that the onus is on participants in the industry, “including ourselves, to make sure that we can facilitate and aid these entrepreneurs in a more effective way.”
“I don’t think lack of capital is an issue here. Also, what the government could do—and I think they are already doing this in some form—is to give preferential market access to Indian startups. The intent is there—with stronger execution, it could land better.”
Are Global VCs Still Bullish?
The short answer is: yes, but with warnings. While names like YC have pulled back sharply, others like Antler, EF, Beenext, and Genesia Ventures continue to look out aggressively in India. At the same time, domestic capital, though still small, is gaining momentum.
The Indian startup story remains attractive to global investors, but the next chapter may depend less on foreign accelerators and more on India’s ability to mobilize homegrown funds and create a regulatory environment that makes investing easier for both domestic and international players.
