Does India need to tweak its startup focus? Zoho’s Sridhar Vembu’s deeptech message on X goes viral

India’s startup ecosystem has undergone a host of changes over the past few years, with the emergence of Artificial Intelligence-powered tools and technologies making strides in niche spaces ranging from electric vehicles, food delivery and quick commerce to logistics and fantasy sports.

Chennai-based startup Zoho’s chief scientist, Sridhar Vembhu, recently took to X (formerly Twitter) to share his thoughts on an infographic he received from a user on the microblogging site.

“China does all the things India does (fintech, edtech, etc.) but China also invests in deep tech,” he wrote, emphasising the need for the Indian startup ecosystem to strengthen its technologies.

“That awareness is spreading so I am optimistic it will happen,” he wrote.

Here’s an overview of the key challenges highlighted in the infographic:

What are Indian startups doing?

Food Delivery Apps: India is turning unemployed youth into cheap labour so the rich can get their meals without moving, the infographic said. Some of the food delivery apps in India include Zomato, Swiggy, magicpin, and others. According to a report by JM Financial, India’s online food delivery market is expected to more than double to $15 billion by March 2029.

Fancy Ice Cream & Cookies: In India, ice creams are marketed as healthy while everyone knows ice cream will never be healthy. Some of the companies are selling guilt-free or sugar-free ice creams.

Instant Grocery Delivery: The instant grocery apps in India are making people lazy and impatient. These companies are wasting resources on hyper-fast logistics. These online delivery apps create challenges for traditional grocery stores.

Betting & Fantasy Sports Apps: These apps encourage gambling and addiction instead of real economic productivity.

Reels & Influencer Economy: Creating a culture of mindless entertainment instead of real knowledge skills.

What are Chinese startups doing?

On the other hand, Chinese startups are doing productive work, working on deep tech technology to help in country’s economy.

EV & Battery Tech: China is dominating global electric vehicle production with companies like BYD.

Semiconductors & AI: The country has been investing heavily in self-reliance, building chips and AI models for the future. This makes it competitor for others.

Robotics and Automation: China is creating next-generation factories that produce more efficiently than anywhere in the world.

Global Logistics & Trade: Building supply chain giants like Shein, DJI, and Alibaba that dictate global commerce.

Deep-tech & Infrastructure: Investing in space tech, high-speed rail, and renewable energy at massive scales.

India’s tech startups in Q12025

In the first quarter of 2025, India’s tech startups raised $2.5 billion, marking a 13.64 per cent increase from the previous quarter and an 8.7 per cent rise from the same period last year, making it the third most-funded country globally ahead of Malta and Germany and behind the US and UK, according to a Tracxn’s Geo Quarterly India Tech Report.

The report says that auto tech, enterprise applications, and retail were the top-performing sectors in Q1 2025. Auto tech received funding of $1.1 billion, which was an increase of 403.35 per cent compared to $214.6 million raised in Q4 2024 and an increase of 339.71 per cent compared to $245.7 million raised in Q1 2024. 

On the other hand, enterprise applications received $650.7 million in funding in Q12025, a growth of 21.94 per cent compared to $533.6 million raised in the previous quarter and a drop of 8.12 per cent compared to $708.2 million raised in Q12024. Retail received $481.5 million in funding, marking a 21.67 per cent increase from the last quarter’s $395.8 million and a drop of 2.30 per cent when compared to $492.9 million raised in Q1 2024.

Startup Ecosystem Report 2025

Uttar Pradesh is ranked third in the ountry’s startup ecosystem, with 26 firms reaching unicorn status, according to the Startup Ecosystem Report 2025. Any privately held company with a market valuation of more than $1 billion is considered a unicorn.