Indian Startup Boom: AI-Native Builders Score Funding as Nykaa Profits Nearly Triple

India’s startup scene is buzzing with energy as investors increasingly support the next wave of AI-driven innovators, while established names like Nykaa are celebrating record-breaking financial successes. In the week wrapping up on May 30, 2025, venture capital activity is thriving, with AI, e-commerce, and deep tech startups capturing a lot of attention.

 

Key Highlights

 

•⁠  ⁠AI-Native Funding Surge: Early-stage investors like BoldCap are honing in on AI-native startups, focusing on founders who are creating practical, industry-specific solutions instead of just generic AI applications. This shift shows a maturing market where investors are looking for real-world impact and scalability.

 

•⁠  ⁠Nykaa’s Profit Leap: The beauty and lifestyle e-commerce giant Nykaa has reported a nearly threefold increase in quarterly profits, highlighting strong consumer demand and operational efficiency in India’s online retail space.

 

•⁠  ⁠Diverse Sectors Thrive: In recent weeks, Indian startups have raised over $200 million across sectors like AI, fintech, healthcare, logistics, and more, showcasing the wide range of innovation and investor confidence.

 

•⁠  ⁠Government Support: The Union Budget for 2025–26 has allocated ₹2,000 crore to the IndiaAI Mission, aiming to enhance domestic computing infrastructure, develop indigenous large language models, and support early-stage AI teams.

 

Outlook

 

India’s startup landscape is changing rapidly, with AI-native builders leading the charge in innovation and established companies like Nykaa setting new standards for profitability. As funding continues to flow into practical, scalable solutions, the future for India’s tech-driven growth looks incredibly promising.

 

Source: YourStory, Indian Startup News, ABP Live