The Mumbai air hangs thick, even in December. 2025 is nearly over, and the Indian startup scene is still buzzing. The scent of chai and ambition mixes in the air, a familiar aroma for anyone who has spent time in the city.
Axis Bank’s Sanjiv Bhatia, a man who knows the numbers, sees something different in this cycle. He doesn’t see a bubble. He sees domestic capital.
It’s a crucial distinction. The narrative has long been dominated by Silicon Valley, by foreign investment, by the boom-and-bust cycle that defines so much of the global tech landscape. But Bhatia, and others, are pointing to a new reality.
“We are seeing a maturation of the Indian market,” Bhatia told Inc42 Media. He points to the fact that Indian investors are leading the charge. This is a significant shift.
The numbers bear him out. The recent wave of tech IPOs, a flurry of activity that has defined much of the year, is being driven by local money. Not the speculative frenzy of foreign funds, but the steady hand of domestic institutions and retail investors. This suggests a more sustainable, more grounded growth trajectory.
Consider the recent IPO of ‘Bharat Innovations,’ a fintech startup. The IPO was oversubscribed within hours, fueled by bids from Indian mutual funds and high-net-worth individuals. The same story played out across multiple sectors. From e-commerce to SaaS, the capital is coming from within.
The implications are far-reaching. This shift insulates the market, to some extent, from the volatility of global markets. It also means that Indian startups are building businesses designed for the Indian consumer, not just trying to replicate Western models.
The mood on the ground reflects this. There’s a quiet confidence, a sense that this time is different. The usual startup hype is present, but it’s tempered by a pragmatic understanding of the market’s realities. The chai is still hot, but the conversations are about unit economics, not just valuations.
What does this mean for the future? If Bhatia is right, then the Indian tech scene is entering a new phase. One built on a foundation of domestic capital, a foundation that could prove to be far more resilient than the hype might suggest. The story of Indian tech may be just beginning.
