India’s startup ecosystem is entering a selective phase where investors are becoming careful about where they put their money. As reported, Indian startups raised $5.2 billion across 501 deals in the first half of 2026. Funding was down 9% from the same period in 2025, but the number of deals increased 7%. AI and deeptech got the most attention, while investors are scrutinising business models, unit economics, and the path to scale.
The next 12 to 18 months are important. The startups most likely to stand out will not be the ones raising the biggest rounds. The top startups will be turning capital into products, customers and sustainable growth. Here is the list of the top 10 Indian startups to watch before 2027, from different sectors.
India’s Next Big Startups: 10 Companies to Watch Before 2027
1. Sarvam AI
Working across AI models, infrastructure and enterprise applications, Sarvam AI is specifically focused on building systems for Indian users and businesses. A 2026 funding round pushed the company’s valuation past $1 billion. Its growth will be a key test of whether India can build globally relevant companies instead of being a market for imported models only.
2. Neysa
Neysa is chasing a less visible part of the AI boom through computing infrastructure. In February this year, the company announced funding of $1.2 billion, including up to $600 million in equity and planned $600 million in debt. The company aims to deploy over 20,000 GPUs in India. There is a real demand for domestic AI infrastructure; now the question for Neysa is whether it can turn that demand into an efficient infrastructure.
3. Skroot Aerospace
India’s first space-tech unicorn, Skyroot Aerospace, has raised $60 million and crossed $1billion validation. Building just one rocket is a great achievement. But building a launch business, manufacturing repeatedly, signing customers and launching on schedule is a different and tougher task, and this is what the next year will also test.
4. Pixxel
Pixxel is building a satellite-imaging business around Earth observation data, serving agriculture, climate monitoring, infrastructure and defence. The technology is mostly proven, but the commercial case is not implemented. Its success depends on whether it can lock in long-term data customers instead of just one-off contracts.
5. Agnikul Cosmos
Agnikul Cosmos is involved in developing small launch vehicles and 3D-printed rocket engines. Its portfolio includes Agnibaan SOrTeD, which successfully launched in May 2024 from the company’s private launchpad at Sriharikota. Agnikul Cosmos presents a shift in India’s space landscape; now private companies are involved in launch infrastructure, propulsion and spacecraft technology.
6. Ather Energy
One of the notable Indian startups, Ather Energy stands at a more mature position. It is an electric two-wheeler company, posting record FY2026 volumes of 262,942 units, up 69% year over year, with total earnings of 3,823 crore. As the eclectic two-wheeler market is getting more crowded, the question has shifted from whether people will buy its scooters to whether the company can do so profitably at a much larger scale.
7. Rapido
Rapido, the Bengaluru-based company, raised $240 million this year at a $3 billion valuation. As reported, it will use the money to expand beyond bike taxis into a broader mobility platform. The funding round was led by Prosus and formed part of a large $730 million primary and secondary financing. For Rapid, growth is never an issue; driving supply, retention and incentive spending are major issues.
8. Euler Motors
Majorly focused on electric commercial vehicles, Euler Motors works in the last-mile delivery market. In March 2026, the company raised around 437 crore in Series E funding and secured another 250 crore in debt. The company has planned to use the capital to support its manufacturing expansion and wider operations.
9. ideaForge Technology
India’s established drone manufacturer, IdeaForge Technology, builds drones for defence and other industrial uses. In July, the company received funding of 500 crore through a qualified institutional placement in 2026. The opportunity extends well past photography into defence, infrastructure and agriculture. The actual success depends on execution, not technology, which will determine whether the company converts that opportunity into steady orders.
10. Atlan
Operating in enterprise data and AI governance, Atlan stands as a perfect reminder that not every notable Indian startup is building hardware. As companies deploy more AI, the demand for accessible, well-governed data grows with it. Atlan has raised substantial venture capital and built a global customer base. The main challenge for this company is holding its position in the enterprise software market where AI is rewriting the product roadmap for everyone at once.
Overall, the startups that matter by 2027 will be those who can demonstrate tangible recurring revenue, enhancing margins, strong technology, or a clear path to profitability.
Frequently Asked Questions
1. What are the top Indian startups to watch before 2027?
Sarvam AI, Neysa, Skyroot Aerospace, Pixxel, Agnikul Cosmos, Ather Energy, Rapido, Euler Motors, ideaForge Technology, and Atlan.
2. How much funding did Indian startups raise in the first half of 2026?
Indian startups raised approximately $5.2 billion across 501 deals during the first half of 2026, according to the figures cited in the article.
3. Why are investors becoming more selective about Indian startups?
Investors are paying greater attention to business models, unit economics, customer growth, capital efficiency, and the ability of startups to scale sustainably.
4. Why is Sarvam AI considered a startup to watch?
Sarvam AI is developing AI models, infrastructure, and enterprise applications focused on Indian users and businesses, making its progress relevant to India’s ambitions in artificial intelligence.
5. What is Neysa’s role in India’s AI ecosystem?
Neysa focuses on AI computing infrastructure and plans to deploy more than 20,000 GPUs in India, targeting the growing demand for domestic AI infrastructure.
6. What does Skyroot Aerospace do?
Skyroot Aerospace develops launch vehicles and space technology. Its future growth will depend on factors such as repeat manufacturing, customer contracts, and the ability to conduct launches consistently.
7. Which startups in the list are focused on electric vehicles?
Ather Energy and Euler Motors are the two EV-focused companies featured. Ather focuses on electric two-wheelers, while Euler Motors develops electric commercial vehicles for applications such as last-mile delivery.
8. Why is Rapido expanding beyond bike taxis?
Rapido is seeking to develop a broader mobility platform. The company has raised significant capital to support expansion and growth across its mobility business.
9. What industries do ideaForge Technology and Pixxel operate in?
ideaForge Technology operates in drone technology, including defence and industrial applications, while Pixxel focuses on satellite-based Earth observation and data applications.
10. What factors will determine which startups succeed before 2027?
Beyond fundraising, factors such as sustainable revenue growth, customer acquisition and retention, unit economics, operational efficiency, product development, and the ability to scale will be important in determining startup performance.
