30 Startups To Watch: Startups That Caught Our Eye In February 2026

February 2026 marked a significant turning point in India's burgeoning startup ecosystem, which is recognized as the world's third-largest. The month was characterized by concrete policy actions that translated the government's intentions into tangible, on-ground developments. The Union Budget 2026 set the tone by doubling down on deeptech and advanced manufacturing, reflecting a strategic focus on these sectors.

The budget introduced the Indian Semiconductor Mission 2.0, aiming to boost the semiconductor industry, which is critical for India's technological ambitions. Additionally, the government increased its outlay for electronics manufacturing, offering tax holidays for hyperscalers and data centre players. These measures were complemented by a ₹10,000 crore growth fund for small and medium-sized enterprises (SMEs) and continued support for the Startup India Fund of Funds. These initiatives underscore the government's commitment to building long-term capacity in the startup ecosystem.

A pivotal development in February was the revision of the startup definition, allowing deeptech ventures to qualify for recognition and benefits for up to 20 years. This change is particularly crucial for R&D-heavy businesses that often have long gestation cycles. By extending the startup eligibility period, the government is providing much-needed stability and support for these ventures, enabling them to focus on innovation without the pressure of immediate profitability.

The month also witnessed the India AI Impact Summit 2026, which brought together global tech leaders and showcased India's potential in the AI domain. The summit saw commitments of billions towards India's AI infrastructure, highlighting the country's growing importance in the global tech landscape. Meanwhile, homegrown startups like Sarvam demonstrated indigenous large language models and cutting-edge AI innovations, further solidifying India's position as a key player in the AI ecosystem.

Funding trends in February echoed this strategic shift towards deeptech and advanced manufacturing. While overall monthly funding remained measured, capital flowed steadily into AI, semiconductors, defence technology, and advanced manufacturing. This targeted investment reflects the government's focus on fostering innovation in these high-growth sectors.

On the public markets front, February saw the debuts of startups like Aye Finance and Fractal, amid a strong IPO pipeline. These successful market entries signal the maturity of the startup ecosystem and its readiness to scale.

Against this backdrop, the latest edition of Inc42's flagship "30 Startups To Watch" captures the evolving landscape of India's startup ecosystem. The 68th edition of the series highlights startups across a range of sectors, from semiconductor fabs and sentinel robots to flying taxis and hearing-tech innovators. These startups are building depth, resilience, and global relevance, positioning India as a formidable force in the global startup arena.

The list of 30 startups that caught attention in February 2026 includes a diverse range of ventures. From Aexo, a semiconductor startup, to companies specializing in advanced manufacturing, AI, and defence technology, these startups are poised to shape the future of India's tech landscape. It is important to note that this list is not a ranking but rather a curated selection of startups that showcased remarkable progress and potential in February.

In conclusion, February 2026 was a transformative month for India's startup ecosystem. The government's policy actions, combined with significant investments and successful market debuts, have set the stage for a robust and innovative future. The "30 Startups To Watch" list reflects this new momentum, offering a glimpse into the promising ventures that are driving India's startup revolution. As the ecosystem continues to evolve, these startups will play a crucial role in establishing India as a global leader in technology and innovation.