India’s Tech Shift: From IT Services to DeepTech

Sarah J · 2025-11-20T18:12:08.000Z

India’s technology landscape is broadening beyond its IT services giants, even as the Nifty IT index falls about 15% amid trade tensions, US visa issues, and AI concerns. IT services remain dominant with projected $210bn exports this year, but heavy cash returns (about 75% of $114bn profits over the past decade) limited investment in intellectual property, leaving SaaS underdeveloped. SaaS is now accelerating: Zoho tops 100mn users with a roughly $12bn valuation; Freshworks raised $1bn on Nasdaq and sits above $3.3bn in market value. The consumer internet sector has produced major winners after a land-grab phase: Flipkart rose from a $20.8bn valuation at Walmart’s 2018 stake purchase to roughly $35bn , eyeing an IPO. Info Edge deployed about $450mn into ~100 start-ups, with just PolicyBazaar and Zomato together valued near $3.7bn , and the parent at about $10bn . Newer models like quick commerce leverage low-cost delivery. Blinkit , acquired for $600mn in 2022 by Zomato’s parent (now Eternal), was reportedly valued around $13bn this year, with 155% year-on-year revenue growth in the June quarter via “dark stores.” Rivals include Swiggy ( $10bn market cap) and Zepto ( $7bn valuation). India’s deep tech is gaining momentum: VC funding grew at roughly 90% CAGR (2019–2024) , and India built an indigenous 4G network. Notable firms include QNU Labs (quantum cryptography), Digantara (space tech), Ideaforge (surveillance drones), and Waaree Energies (~ $11bn ; solar cells and modules), despite patent disputes. Overall innovation is robust: India has 120+ unicorns , ranking third globally after the US and China. VC investment hit $96bn across about 8,000 rounds over five years, largely foreign but with a fast-growing domestic capital base from family offices, insurers, and pension funds , fueling the next wave of entrepreneurs.

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India’s Tech Shift: From IT Services to DeepTech | SEINET