Investment Fund Established to Support Indian Startups
Despite a 38% decline in year-on-year funding due to geopolitical pressures, India remains a promising market, especially in ecommerce and early-stage AI investments, which raised $192.7 billion in 2025. India: A Promising Market Amidst Challenges India remains the primary market for these investments, despite facing a 38% year-on-year decline in funding across various sectors.
A new investment fund involving Krafton, Naver, and Mirae Asset has been established to support burgeoning startups in India. This initiative targets sectors such as artificial intelligence (AI), fintech, gaming, and logistics, with a particular focus on 'soonicorns'—startups nearing a unicorn valuation.
Focus on Sectors with Growth Potential
The newly launched fund is specifically targeting Indian startups within the AI, fintech, and gaming sectors, which are perceived as having significant growth potential. The focus extends to logistics as well, addressing the diverse needs of the Indian market. The primary aim is to bolster businesses that are on the cusp of achieving unicorn status, thereby fueling their growth trajectory.
"Startups in India are poised for growth, and with the right backing, they can achieve significant milestones," said a spokesperson from the investment group.
India: A Promising Market Amidst Challenges
India remains the primary market for these investments, despite facing a 38% year-on-year decline in funding across various sectors. This decline has been attributed, in part, to geopolitical pressures that have made investors more cautious. Despite this, ecommerce continues to be the top-funded sector, demonstrating robust activity and interest from investors.
AI Dominates Early-Stage Investments
Artificial intelligence startups have been at the forefront of early-stage investments, with a reported $192.7 billion raised in 2025. However, a significant challenge remains as 95% of AI solutions fail to integrate effectively into business operations. This disconnect often results from startups neglecting essential internal operations and documentation, which are crucial for sustainable growth and scalability.
"The challenge is not just about creating innovative solutions but ensuring they are practical and integrated into existing systems," an industry expert noted.
Investment Challenges and Opportunities
Investors are increasingly finding it difficult to distinguish between promising ideas and those that may not have viable market potential. This challenge is exacerbated by the rapid pace of innovation and the sheer volume of startups emerging in the sector. However, previous investment funds have demonstrated success, backing notable startups such as Zomato and Bigbasket, which have become market leaders in their respective fields.
The new fund aims to replicate such success by carefully selecting startups with solid business models and the potential for growth. By focusing on soonicorns, the fund seeks to support companies that are on the brink of significant expansion, potentially leading them to achieve unicorn status.
The involvement of major entities like Krafton, Naver, and Mirae Asset signals a strong commitment to fostering innovation within the Indian startup ecosystem. As these companies continue to invest, the hope is that they will not only drive financial growth but also contribute to the technological advancement and development of the Indian market.