ET SpecialAt the upcoming ET Soonicorns Summit 2025, Karnataka’s Deputy Chief Minister DK Shivakumar will deliver the inaugural address and unveil the Economic Times Top Soonicorns and Minicorns of Karnataka | Priority Sectors 2025 report, created in collaboration with Research Partner Tracxn. The comprehensive analysis reveals a state operating with a dual-speed innovation economy—one driven by Bengaluru's global powerhouse status and another characterised by the promising rise of emerging tech hubs across Karnataka.
The findings paint a striking picture of entrepreneurial dominance across the study period from January 1, 2020, to June 9, 2025. Bengaluru alone has witnessed the founding of 6,785 startups since January 2020, attracting a staggering $48.2 billion in funding across 4,540 rounds. The city has produced 31 unicorns and hosts 85 soonicorns poised to become the next generation of billion-dollar companies, alongside 317 minicorns ensuring a robust pipeline for years ahead. The report identifies 10 priority sectors based on the highest number of unique Karnataka-based investors, signifying broad consensus on their potential and robust support networks for new ventures.
Decoding the soonicorn trajectory
In a first, an ET Soonicorns Summit report spotlights minicorns alongside soonicorns. “Minicorns are typically young ventures that have secured funding greater than $1-2 million and demonstrated positive revenue growth, often in the range of $10 million or more,” Neha Singh, Co-founder of Tracxn, explains. “Soonicorns, soon-to-be unicorns, in contrast, operate at an entirely different level of maturity. These are companies with funding well above $40–45 million, consistently strong growth, and revenue that often surpasses the $100 million mark.”
While minicorns may sometimes appear as isolated cases, their growth potential suggests they can be reliable early indicators of a developing innovation ecosystem, adds Singh. “Policymakers and investors should therefore view minicorns as valuable signs of untapped potential in smaller clusters, deserving strategic support and investment to nurture these budding hubs and expand the broader startup pipeline,” she urges.
The transition from minicorn to soonicorn may not necessarily be a linear progression, as it is not determined solely by fundraising speed or size but more by a combination of factors. “Chief among these are the credibility and strategic value of investors, the consistency of customer adoption, and the sustainability of revenue growth. Soonicorns typically demonstrate repeatable demand, high retention rates, and disciplined unit economics, whereas minicorns may still be refining their product-market fit and scaling models.
In a nutshell, while minicorns represent early promise, soonicorns embody proven growth and readiness for unicorn status, driving Karnataka’s next wave of high-growth startups.
Beyond traditional metrics: Mega-round phenomenon and its significance
This year’s report also represents a significant evolution in startup ecosystem analysis, employing six rigorous metrics—founding year, funding raised, round size, mega-rounds, valuation trajectory, and investor quality consensus—to move beyond previous valuation- and revenue-based assessments. The report’s methodology represents a significant evolution in startup analysis. Moving beyond traditional revenue and valuation metrics, it employs six core indicators: founding year, funding raised, round size, mega-rounds, valuation trajectory, and investor quality consensus. “The six core metrics pave the way for a more holistic and deeper understanding of Karnataka’s startup depth by capturing multiple dimensions of a startup’s potential beyond just surface-level financials,” Singh notes.
Perhaps most striking is Bengaluru's record of 108 mega-rounds—funding rounds exceeding $100 million—representing the highest concentration in the state and underlining its ecosystem maturity. “Bengaluru's record of 108 mega-rounds underscores its status as India’s leading startup hub, supported by a highly mature startup ecosystem and reinforced network effects,” explains Singh. “Flipkart, Swiggy, and Ola stand out as the city's highest-funded companies, setting benchmarks for aspiring founders,” she adds.
According to Singh, this dominance stems from multiple factors: “Bengaluru’s strength as a startup hub lies in its diverse and skilled talent pool, comprising experienced founders, engineers, designers, and technology professionals, many with prior entrepreneurial ventures or leadership roles in global firms. This expertise provides emerging startups with mentorship, sharper business models, and greater access to capital.”
Sectoral powerhouses drive innovation
The sectoral analysis reveals four dominant themes shaping Karnataka’s innovation landscape. The FinTech and Investment cluster—comprising Investment Tech, Alternative Lending, and Payments—forms the ecosystem’s backbone with $7.47 billion in combined funding. Online Grocery emerges as the ultimate capital magnet, having raised an astronomical $6.95 billion, fuelled by 19 mega-rounds, reflecting the fierce quick-commerce battle transforming urban retail.
Human capital transformation sectors show remarkable depth, with HRTech producing 392 new startups backed by 244 investors, whilst K-12 EdTech leads with 408 new ventures and $4.22 billion in funding. The Electric Vehicles (EV) sector demonstrates future mobility potential with $2.20 billion raised and an impressive 23 minicorns—the highest in the priority group.
“Hidden champions” reveal concentrated power dynamics within specific domains. Test Preparation Tech, despite attracting only 73 investors, has secured $4.65 billion through just 50 funding rounds—an astronomical average of $93 million per round. Similarly, Horizontal E-Commerce, with merely 53 investors, commands $5.77 billion in funding, demonstrating how market-dominating enterprises can shape entire sectors.
Beyond Bengaluru: Emerging innovation clusters
While Bengaluru’s sectoral dominance is undisputed, the state's innovation story extends beyond its capital. The report’s cluster-level analysis across five urban centres—Bengaluru, Mysuru, Manipal, Dharwad, and Tumkur—reveals nuanced patterns of regional development. “A cluster-level view is essential to capture the unique strengths and funding dynamics of different urban startup hubs within Karnataka,” Singh emphasises. Here’s a look at the funding distributions: “Bengaluru leads with an overwhelming $80.5B in funding, reflecting its dominance as the state's innovation and startup powerhouse. Other notable clusters include Mysuru ($59.2M), Tiptur ($38.8M), Manipal ($27.6M), Udupi ($18.8M), Kolar ($9.57M), Tumakuru ($6.91M), Belgaum ($4.95M), and Dharwad ($4.26M).
Mysuru emerges as the most mature ecosystem beyond Bengaluru, with 76 startups founded and $40.4 million secured since 2020. The city is strategically developing clusters focused on cybersecurity and Electronics System Design and Manufacturing, building upon its foundation as Karnataka’s second-largest software exporter. Manipal and Dharwad each produced 13 new startups, leveraging their academic and industrial strengths, respectively, whilst Tumkur presents an intriguing case with six startups attracting $5.0 million, suggesting high-potential ventures in this satellite city.
The soonicorn sectoral split
The distinction between Karnataka’s 317 minicorns and 85 soonicorns reveals crucial insights into scaling dynamics across the 10 priority sectors, where investor consensus drives consistent growth and innovation. The priority sectors collectively showcase a mature and diversified landscape, with the top performers attracting significant capital flows—FinTech and Investment cluster commanding $7.47 billion in combined funding, while Online Grocery alone secured $6.95 billion through 19 mega-rounds. The soonicorns and minicorns represented within these priority sectors demonstrate exceptional promise, with HRTech leading future potential through nine soonicorns and 21 minicorns, whilst Alternative Lending produced seven soonicorns and 20 minicorns—the second-highest in the priority group.
Regional innovation signals
Tumkur’s production of a minicorn—Unocoin, which raised $5 million in Series A funding for its cryptocurrency exchange platform, despite its smaller startup base, offers important lessons for policymakers, Singh observes. “Despite Tumkur’s smaller startup base, the presence and ability of a company to attract investor interest indicates that regional innovation depth can exist beyond major urban centers.”
This development aligns with the Karnataka government’s “Beyond Bengaluru” initiative, aimed at decentralising growth through targeted policies. including the Karnataka Startup Policy 2022-27 and the Elevate funding scheme. The initiative seeks to leverage unique city strengths whilst reducing the stark disparity that currently sees Bengaluru attracting orders of magnitude more funding than emerging hubs.
The road ahead
Despite global funding slowdowns impacting even Bengaluru, the outlook remains resilient. The state’s proactive policies, focus on Tier 2 and Tier 3 city innovation, and entrepreneurial dynamism suggest Karnataka is actively building a more decentralised and sustainable startup economy. The cultural and demographic advantages are particularly pronounced in Bengaluru, where Singh notes: “The younger, tech-savvy population, clubbed with a higher disposable income, gives space for entrepreneurs/founders to experiment and scale digital adoption ideas for daily consumer needs.”
As DK Shivakumar prepares to unveil these findings at the ET Soonicorns Summit 2025, the report stands as both a reflection and an invitation—capturing Karnataka’s current startup journey whilst engaging with the next wave of founders, investors, and innovations shaping India’s technology future. The data suggests that whilst Bengaluru’s dominance remains unquestioned, the green shoots of innovation across Karnataka’s urban clusters offer genuine promise for a more distributed and resilient innovation economy.
The ET Soonicorns Summit, India’s largest soonicorn summit, returns for its fourth edition to Bengaluru on August 22. The stage is set for curated conversations on capital, scale, and talent.
360 ONE is the Presenting Partner of the ET Soonicorns Summit 2025, with Shiv Nadar University as the Ecosystem Partner, Raymond as the Wardrobe Partner, Pi42 as the Gold Partner, Bank of India as the Banking Partner, Tracxn as the Knowledge Partner, and K-Tech Startup Karnataka as the State Partner. The Gifting Partners of the Summit are The Mind & Company, Plum, Clinikally, EM5, and True Elements.
The findings paint a striking picture of entrepreneurial dominance across the study period from January 1, 2020, to June 9, 2025. Bengaluru alone has witnessed the founding of 6,785 startups since January 2020, attracting a staggering $48.2 billion in funding across 4,540 rounds. The city has produced 31 unicorns and hosts 85 soonicorns poised to become the next generation of billion-dollar companies, alongside 317 minicorns ensuring a robust pipeline for years ahead. The report identifies 10 priority sectors based on the highest number of unique Karnataka-based investors, signifying broad consensus on their potential and robust support networks for new ventures.
Decoding the soonicorn trajectory
In a first, an ET Soonicorns Summit report spotlights minicorns alongside soonicorns. “Minicorns are typically young ventures that have secured funding greater than $1-2 million and demonstrated positive revenue growth, often in the range of $10 million or more,” Neha Singh, Co-founder of Tracxn, explains. “Soonicorns, soon-to-be unicorns, in contrast, operate at an entirely different level of maturity. These are companies with funding well above $40–45 million, consistently strong growth, and revenue that often surpasses the $100 million mark.”
While minicorns may sometimes appear as isolated cases, their growth potential suggests they can be reliable early indicators of a developing innovation ecosystem, adds Singh. “Policymakers and investors should therefore view minicorns as valuable signs of untapped potential in smaller clusters, deserving strategic support and investment to nurture these budding hubs and expand the broader startup pipeline,” she urges.
The transition from minicorn to soonicorn may not necessarily be a linear progression, as it is not determined solely by fundraising speed or size but more by a combination of factors. “Chief among these are the credibility and strategic value of investors, the consistency of customer adoption, and the sustainability of revenue growth. Soonicorns typically demonstrate repeatable demand, high retention rates, and disciplined unit economics, whereas minicorns may still be refining their product-market fit and scaling models.
In a nutshell, while minicorns represent early promise, soonicorns embody proven growth and readiness for unicorn status, driving Karnataka’s next wave of high-growth startups.
Beyond traditional metrics: Mega-round phenomenon and its significance
This year’s report also represents a significant evolution in startup ecosystem analysis, employing six rigorous metrics—founding year, funding raised, round size, mega-rounds, valuation trajectory, and investor quality consensus—to move beyond previous valuation- and revenue-based assessments. The report’s methodology represents a significant evolution in startup analysis. Moving beyond traditional revenue and valuation metrics, it employs six core indicators: founding year, funding raised, round size, mega-rounds, valuation trajectory, and investor quality consensus. “The six core metrics pave the way for a more holistic and deeper understanding of Karnataka’s startup depth by capturing multiple dimensions of a startup’s potential beyond just surface-level financials,” Singh notes.
Perhaps most striking is Bengaluru's record of 108 mega-rounds—funding rounds exceeding $100 million—representing the highest concentration in the state and underlining its ecosystem maturity. “Bengaluru's record of 108 mega-rounds underscores its status as India’s leading startup hub, supported by a highly mature startup ecosystem and reinforced network effects,” explains Singh. “Flipkart, Swiggy, and Ola stand out as the city's highest-funded companies, setting benchmarks for aspiring founders,” she adds.
According to Singh, this dominance stems from multiple factors: “Bengaluru’s strength as a startup hub lies in its diverse and skilled talent pool, comprising experienced founders, engineers, designers, and technology professionals, many with prior entrepreneurial ventures or leadership roles in global firms. This expertise provides emerging startups with mentorship, sharper business models, and greater access to capital.”
Sectoral powerhouses drive innovation
The sectoral analysis reveals four dominant themes shaping Karnataka’s innovation landscape. The FinTech and Investment cluster—comprising Investment Tech, Alternative Lending, and Payments—forms the ecosystem’s backbone with $7.47 billion in combined funding. Online Grocery emerges as the ultimate capital magnet, having raised an astronomical $6.95 billion, fuelled by 19 mega-rounds, reflecting the fierce quick-commerce battle transforming urban retail.
Human capital transformation sectors show remarkable depth, with HRTech producing 392 new startups backed by 244 investors, whilst K-12 EdTech leads with 408 new ventures and $4.22 billion in funding. The Electric Vehicles (EV) sector demonstrates future mobility potential with $2.20 billion raised and an impressive 23 minicorns—the highest in the priority group.
“Hidden champions” reveal concentrated power dynamics within specific domains. Test Preparation Tech, despite attracting only 73 investors, has secured $4.65 billion through just 50 funding rounds—an astronomical average of $93 million per round. Similarly, Horizontal E-Commerce, with merely 53 investors, commands $5.77 billion in funding, demonstrating how market-dominating enterprises can shape entire sectors.
Beyond Bengaluru: Emerging innovation clusters
While Bengaluru’s sectoral dominance is undisputed, the state's innovation story extends beyond its capital. The report’s cluster-level analysis across five urban centres—Bengaluru, Mysuru, Manipal, Dharwad, and Tumkur—reveals nuanced patterns of regional development. “A cluster-level view is essential to capture the unique strengths and funding dynamics of different urban startup hubs within Karnataka,” Singh emphasises. Here’s a look at the funding distributions: “Bengaluru leads with an overwhelming $80.5B in funding, reflecting its dominance as the state's innovation and startup powerhouse. Other notable clusters include Mysuru ($59.2M), Tiptur ($38.8M), Manipal ($27.6M), Udupi ($18.8M), Kolar ($9.57M), Tumakuru ($6.91M), Belgaum ($4.95M), and Dharwad ($4.26M).
Mysuru emerges as the most mature ecosystem beyond Bengaluru, with 76 startups founded and $40.4 million secured since 2020. The city is strategically developing clusters focused on cybersecurity and Electronics System Design and Manufacturing, building upon its foundation as Karnataka’s second-largest software exporter. Manipal and Dharwad each produced 13 new startups, leveraging their academic and industrial strengths, respectively, whilst Tumkur presents an intriguing case with six startups attracting $5.0 million, suggesting high-potential ventures in this satellite city.
The soonicorn sectoral split
The distinction between Karnataka’s 317 minicorns and 85 soonicorns reveals crucial insights into scaling dynamics across the 10 priority sectors, where investor consensus drives consistent growth and innovation. The priority sectors collectively showcase a mature and diversified landscape, with the top performers attracting significant capital flows—FinTech and Investment cluster commanding $7.47 billion in combined funding, while Online Grocery alone secured $6.95 billion through 19 mega-rounds. The soonicorns and minicorns represented within these priority sectors demonstrate exceptional promise, with HRTech leading future potential through nine soonicorns and 21 minicorns, whilst Alternative Lending produced seven soonicorns and 20 minicorns—the second-highest in the priority group.
Regional innovation signals
Tumkur’s production of a minicorn—Unocoin, which raised $5 million in Series A funding for its cryptocurrency exchange platform, despite its smaller startup base, offers important lessons for policymakers, Singh observes. “Despite Tumkur’s smaller startup base, the presence and ability of a company to attract investor interest indicates that regional innovation depth can exist beyond major urban centers.”
This development aligns with the Karnataka government’s “Beyond Bengaluru” initiative, aimed at decentralising growth through targeted policies. including the Karnataka Startup Policy 2022-27 and the Elevate funding scheme. The initiative seeks to leverage unique city strengths whilst reducing the stark disparity that currently sees Bengaluru attracting orders of magnitude more funding than emerging hubs.
The road ahead
Despite global funding slowdowns impacting even Bengaluru, the outlook remains resilient. The state’s proactive policies, focus on Tier 2 and Tier 3 city innovation, and entrepreneurial dynamism suggest Karnataka is actively building a more decentralised and sustainable startup economy. The cultural and demographic advantages are particularly pronounced in Bengaluru, where Singh notes: “The younger, tech-savvy population, clubbed with a higher disposable income, gives space for entrepreneurs/founders to experiment and scale digital adoption ideas for daily consumer needs.”
As DK Shivakumar prepares to unveil these findings at the ET Soonicorns Summit 2025, the report stands as both a reflection and an invitation—capturing Karnataka’s current startup journey whilst engaging with the next wave of founders, investors, and innovations shaping India’s technology future. The data suggests that whilst Bengaluru’s dominance remains unquestioned, the green shoots of innovation across Karnataka’s urban clusters offer genuine promise for a more distributed and resilient innovation economy.
The ET Soonicorns Summit, India’s largest soonicorn summit, returns for its fourth edition to Bengaluru on August 22. The stage is set for curated conversations on capital, scale, and talent.
360 ONE is the Presenting Partner of the ET Soonicorns Summit 2025, with Shiv Nadar University as the Ecosystem Partner, Raymond as the Wardrobe Partner, Pi42 as the Gold Partner, Bank of India as the Banking Partner, Tracxn as the Knowledge Partner, and K-Tech Startup Karnataka as the State Partner. The Gifting Partners of the Summit are The Mind & Company, Plum, Clinikally, EM5, and True Elements.
( Originally published on Aug 21, 2025 )
