Artificial Intelligence (AI) has become the most preferred sector for India’s operator-led startups for the first time, according to the second edition of The State of Operator-Led Startups 2026 report released by RTP Global in collaboration with Tracxn.
The report highlights a major shift in India’s startup ecosystem, with experienced business operators increasingly leaving leadership roles to build AI-native startups.
According to the report, one in every four operator-led startups founded in 2025 is an AI company. While operator-led startups accounted for less than 1% of all technology startups founded between 2023 and 2025, they attracted 11% of the total funding raised in 2025, reflecting strong investor confidence in this founder segment.
AI Leads the Next Wave of Operator-Led Startups
The study analysed 189 operator-founded technology startups established between 2023 and 2025. Operator-founders are entrepreneurs who have previously spent years building businesses, leading teams, managing profit and loss responsibilities, and scaling organisations before launching their own ventures.
Out of the 189 startups, 51 are AI-focused companies.
Among them:
- 30 startups are building Vertical AI solutions.
- 7 startups focus on Horizontal AI.
- 4 startups are developing Developer Tools & AI Builders.
- 3 startups work on AI Infrastructure.
- The remaining companies operate across Consumer AI, Agentic AI, and Enterprise AI.
Although AI Solutions emerged as the largest category by the number of startups, it ranked fourth in terms of funding raised, suggesting that investor capital is still catching up with founder interest.
The report attributes this trend to the changing economics of startup creation. With AI reducing product development time and lowering experimentation costs, experienced operators are increasingly using their industry knowledge to solve real-world problems they encountered during their corporate careers.
Funding Continues to Grow Rapidly
Investor confidence in operator-led startups has increased significantly over the past three years.
According to the report:
- Funding grew from $11.1 million in 2023 to $131.7 million in 2025, representing an 11.9x increase.
- Seed-stage funding increased from $4.3 million to $75.2 million, recording a 17.5x growth.
- The number of funding rounds exceeding $1 million rose from 2 to 21 during the same period.
While the broader technology startup ecosystem witnessed a slowdown in new company formation, operator-led startups recorded a 35% rebound in 2025, indicating that experienced founders continue to enter entrepreneurship with a clear long-term vision.
Larger Funding Rounds Than the Broader Ecosystem
The report also found that operator-led startups continue to raise larger funding rounds than the average Indian technology startup.
Between 2023 and 2025:
- The average Seed round for operator-led startups stood at $2.4 million, compared to $1.4 million for the broader India technology startup ecosystem.
- The average Series A round reached $10.5 million, compared to $8.4 million for other startups.
Series A valuations also improved considerably. The average valuation reached $53.3 million, up from $38.5 million reported in the inaugural edition of the study.
AI, Fintech and Enterprise Software Lead Startup Creation
Beyond AI, operator-led startups collectively raised around $186 million between 2023 and 2025.
By funding received, the top sectors were:
- Fintech & Insurtech
- Retail Tech & E-Commerce
- Transportation & Mobility
By the number of startups launched, the leading sectors were:
- AI Solutions
- Fintech & Insurtech
- Enterprise Solutions & Software
Industry Leaders Share Their Views
Commenting on the findings, Nishit Garg, Partner, Asia Investment Team at RTP Global, said the report validates what the investment firm has observed over the years.
He said operator-founders bring valuable company-building experience gained from scaling businesses, managing teams, and navigating growth challenges. As AI changes the way products are built, qualities such as execution, pragmatism, and capital discipline become even more important.
He added that while RTP Global has seen growing momentum among operator-founders, the firm’s investment philosophy remains unchanged—backing exceptional founders regardless of their background.
Neha Singh, Co-founder and CEO of Tracxn, said India’s entrepreneurial landscape has evolved significantly over the past decade.
According to her, experience has shifted from being a positive signal to becoming a genuine competitive advantage. She noted that professionals who have spent years building companies are now launching their own ventures, creating stronger businesses and contributing to the long-term development of India’s startup ecosystem.
Report Methodology
The report was prepared by Tracxn for RTP Global and covers operator-led technology startups founded in India between 2023 and 2025.
The study analysed 189 operator-founded startups and compared them with a broader dataset of 20,457 Indian technology startups established during the same period.
Data for the report was extracted on May 14, 2026.
About RTP Global
RTP Global is an early-stage venture capital firm that has made more than 150 investments globally since 2000. The firm has backed companies including Datadog, Delivery Hero, CRED, Invideo, FirstClub, Stable Money, Wiom, Rebel Foods, and SumUp. RTP Global has offices in New York, London, Dubai, Paris, and Bengaluru, and completes 15 years of investing in India in 2026.
About Tracxn
Tracxn Technologies Ltd. is a private market intelligence platform tracking more than 8 million entities through over 2,900 data feeds across industries, sectors, geographies, and networks worldwide. The company is among the world’s leading providers of private company data.
-By Shivani Solanki
