2024 startup rewind: AI, fintech, and quick commerce with all partners at Prime Venture Partners

In this special podcast episode, Partners at Prime Venture Partners—Sanjay Swamy, Shripati Acharya, Amit Somani, and Brij Bhushan—dive deep into the predictions and trends that will shape the world of Indian startups, venture capital, and sectors in 2025.

Sunday January 12, 2025 , 6 min Read

As the world’s largest democracy continues to rise as a global business hub, what’s next for Indian entrepreneurs, investors, and the broader venture capital (VC) landscape?

In an insightful podcast, Partners at Prime Venture Partners—Sanjay Swamy, Shripati Acharya, Amit Somani, and Brij Bhushan—share bold predictions, offering key insights into the evolving market and what founders should prepare for.

They offer these nuanced perspectives that have the potential to change how you view the startup landscape: But what does this mean for you, the founder or investor navigating 2025?

Global investor interest in India: The stars are aligning

As Acharya pointed out, the increasing interest from global investors is a key theme for 2025. India’s stable political and economic environment—paired with its growing talent pool—positions it as one of the most attractive emerging markets in the world. He sees this as an exciting opportunity for Indian startups to not only thrive locally but also expand internationally.

“The stars are aligning for India. We are seeing growing interest from international LPs, particularly from the Middle East and Europe,” said Swamy, adding, “India has a unique combination of factors—political stability, a booming talent pool, and a rapidly maturing ecosystem.”

For founders, this means increased access to capital and global networks, but it also raises the bar in terms of expectations for scalability and innovation.

The IPO mindset: Building for the long-term

One of the more eye-opening pieces of advice came from Somani, who emphasised the importance of adopting an IPO mindset early on. It’s no longer just about scaling; it’s about building a business that can withstand the scrutiny of public markets.

“The IPO mindset should start from day one. It’s about building a business with long-term sustainability and scalability,” he said, adding, “If you’re thinking about going public, you need to structure your company’s operations, financials, and team in a way that appeals to public investors.”

For Indian startups aiming to go public in the next 5-10 years, Somani’s advice is clear: think about your company’s future IPO from day one, and embed the right financial discipline and governance practices in your operations.

Growth vs. profitability: The balancing act of 2025

A central theme that emerged during the discussion was the perennial dilemma for startups: growth vs. profitability. As the ecosystem matures, investors and founders are realising that scaling rapidly without a solid foundation in unit economics is not sustainable in the long run. Somani offered an interesting perspective on the issue.

“You can’t ignore profitability forever. While growth is important, in 2025, we’ll see a renewed focus on sustainable growth,” he said. “Investors are looking for companies that not only grow fast but also demonstrate strong unit economics. Startups need to balance both.”

Founders will have to be strategic in 2025. Growth and profitability need not be mutually exclusive, but scaling too quickly without attention to unit economics could spell disaster. Investors will likely focus on companies with the discipline to balance these two factors, ensuring long-term success.

AI: The core of 2025 startups

One of the most powerful themes discussed in the podcast is the increasing importance of artificial intelligence (AI) in the startup world. Acharya emphasises that AI will be central to the innovation that drives Indian startups in 2025. Startups that embrace AI early on will have a competitive advantage over those that do not.

Acharya said, “AI is the backbone of the next generation of products and services. It enables startups to scale rapidly, automate processes, and personalise customer experiences in ways that were previously unimaginable. Those that are able to integrate AI successfully will have a significant edge in 2025.”

AI is no longer just a tool for large enterprises. For startups, it presents an opportunity to streamline operations, enhance customer engagement, and gain critical insights from data. Whether it’s using AI to optimise supply chains or analyse customer behaviour, startups must adapt to the shifting technology landscape if they want to remain competitive in a growing market.

Storytelling: What does it mean in venture capital?

Founders frequently think they need to create a grand, embellished narrative to attract investors, talent, and customers. However, according to Swamy, storytelling should be based on clarity, authenticity, and a deep understanding of the problem being solved.

“Everybody, unfortunately, watches Shark Tank and thinks that’s how they need to narrate their story. That’s not what we’re talking about. It’s not about embellishing the truth—it’s about being authentic and communicating clearly. Founders should focus on explaining who they are, who their customers are, and what problem they’re solving—that’s the essence of a compelling story,” says Swamy.

“You can’t create a story that doesn’t exist just because it seems like the right way to pitch,” he added. “Stay true to your narrative. If you focus on clarity and authenticity, you’ll build trust with your investors, team, and customers.”

The road ahead

As we step into 2025, the Indian startup ecosystem stands stronger, more mature, and more innovative than ever. For entrepreneurs, the message is clear—focus on fundamentals, embrace technology, and build with purpose.

2025 presents an exciting, challenging, and transformational year for Indian startups. As the Indian startup ecosystem matures, it’s clear that the AI revolution, IPO readiness, balance of growth and profitability, and storytelling will be at the core of success.

But how prepared are you for the shifting landscape? Will your startup stand out and thrive or will it be left behind?

Watch the video here.

Timestamps:

00:00 - Introduction: 2025 Startup and VC Predictions

01:15 - Prime’s New Fund Launch and Global LP Interest

03:00 - Focus on Early-Stage Investments: Fewer Bets, Deeper Support

05:30 - The Role of AI in the 2025 Startup Landscape

08:00 - IPOs in 2025: When Should Founders Start Thinking About Going Public?

10:45 - Growth vs. Profitability in 2025: What’s the Right Balance?

13:00 - Unit Economics: Key Metrics for 2025

15:30 - Emerging Sectors in 2025

18:00 - Why Founders Must Master Storytelling