Analysis · Professional & Local Services

India Accelerator CEO shares 2025 insights and 2026 outlook

By Startup Enthusiast · 19 February 2026

What they do

India Accelerator is a multi-stage venture capital firm investing in deep-tech and strategic sectors

CEO Ashish Bhatia discusses the 2025 startup ecosystem, where Indian startups raised over $11 Bn from 936 deals

The firm focuses on defence, applied AI, and energy, backing resilient founders in Tier II and Tier III cities

India Accelerator CEO Ashish Bhatia shared the firm's investment philosophy and outlook for 2026.
Indian startups raised over $11 Bn from more than 936 deals in 2025.
Overall funding in 2025 declined 8% from 2024 levels.
Growth-stage funding rose to $4 Bn in 2025 from $3.5 Bn in 2024.
Over 90% of investors plan to deploy capital in 2025.
Strategic sectors seeing rapid capital allocations include defence tech, applied AI, clean energy, and advanced hardware.
India Accelerator has built presence across Tier II and Tier III cities for sourcing and long-term conviction.

2025 marked a year of valuation reset after macroeconomic headwinds, supply chain shocks, and geopolitical uncertainties.
India is moving from a consumer of defence and semiconductor technologies to a global manufacturer and exporter.
Over 90% of investors plan to deploy capital in 2025.
Capital is moving towards companies building proprietary technology or sovereign capability.

India Accelerator is a multi-stage tech VC with an investment philosophy focused on backing resilient founders who compound opportunity over time.
At seed stage, the firm bets on people and their ability to learn fast and navigate uncertainty.
By Series B/C, India Accelerator focuses on proof of scalable growth, capital efficiency, and defensible unit economics.
The portfolio includes deep-tech and strategic sectors: defence, mobility, and advanced hardware.
Portfolio companies include Zulu Defence, IG Drones, and Matter EV.
Three areas with exceptional long-term potential: defence/unmanned systems/aerospace; frontier/strategic technologies (Applied AI); and energy and mobility.
In defence, the firm backs companies like IG Drones, Zulu Defence, Indrajaal, Ammunic Systems, and Satlabs, focusing on indigenisation, export readiness, and sovereign capability.
In applied AI, the shift is from AI as a wrapper to AI as a business backbone driving automation and decision-making, with example Nitro Commerce.
In energy and mobility, India is pushing towards distributed energy and electrified mobility, with example Matter EV.

For 2026, India Accelerator's investment philosophy builds on the 2025 approach: creating a strong core where sectors, founders, and capital reinforce each other over time.