Decoding The Rapid Rise Of Rajasthan’s Startup Ecosystem

Recognised for its vibrant culture, historic landmarks, and flourishing tourism sector, India’s largest state by area (3,42,239 sq km), Rajasthan, has also emerged as a significant player in India’s startup ecosystem in recent years. 

With over 5.2K DPIIT-registered startups and 6K iStart registered startups, Rajasthan has become a hotbed for innovation, driven by supportive government policies and robust infrastructure. The key sectors driving the state’s ecosystem include fintech, ecommerce, cleantech, edtech and healthcare.

Jaipur leads as the state’s primary startup hub. Other cities like Udaipur, Jodhpur, Kota and Bikaner are also emerging as innovation centres, supported by government initiatives and a growing network of investors, incubators and accelerators.

This diverse and dynamic environment positions Rajasthan as a leading force in India’s new-age entrepreneurial landscape.

At the heart of Rajasthan’s startup surge is the state government’s flagship initiative — the iStart Programme. Launched to bolster entrepreneurial talent, iStart offers critical support through funding, mentorship and infrastructure.

Its network of incubation centres across Jaipur, Jodhpur, Udaipur, and Kota provides startups with modern facilities and business resources to scale their ventures effectively. The programme’s emphasis on sectors such as AI, blockchain, cleantech, fintech, and green energy has opened new avenues for tech-driven growth, setting the stage for Rajasthan’s rise as a startup powerhouse.

In our “State of Rajasthan Startup Ecosystem Report 2025,” we have illuminated the state’s journey to emerge as a thriving hub for tech startups. The report presents a comprehensive overview of Rajasthan’s startup ecosystem, highlighting key growth sectors, challenges, and opportunities. It also examines the role of government initiatives and investor support in driving innovation and scaling startups across the state.

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How Rajasthan Is Becoming India’s Next Startup Powerhouse

The report offers an in-depth analysis of Rajasthan’s startup ecosystem, covering government policies, ecosystem enablers, market trends and emerging sectors. Jaipur, the capital of the state, emerges as the leading startup hub, housing over 45% of all startups in Rajasthan.

Notably, 48% of startup founders in Rajasthan are women, reflecting a more inclusive and egalitarian startup ecosystem compared to other major hubs in India, highlighting the state’s commitment to gender diversity in entrepreneurship. 

Its dominance is attributed to a skilled talent pool, strategic proximity to major startup centres like Delhi and Gurugram, and a cost-effective business environment. 

Beyond Jaipur, other cities in Rajasthan are also rapidly emerging as a startup hub, largely driven by the iStart incubation programme. This state-led initiative has extended its support to cities like Jodhpur, Udaipur, Bikaner, Kota, Bharatpur, Pali, and Churu, providing vital resources for entrepreneurial growth. 

A key indicator of Rajasthan’s expanding startup culture is the surge in venture capital funding, which has grown at a 35% compound annual growth rate (CAGR) growth in venture capital funding between 2021-2024, which even outpaces established hubs like Delhi NCR.  

Since 2014, Rajasthan-based startups have raised more than $370 Mn in funding from local and global investors. Prominent investors such as Peak XV Partners and Y Combinator are a few top names that recognised the potential of the state’s burgeoning ecosystem early on. 

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iStart’s Role in Fuelling Rajasthan’s Startup Ecosystem 

The Rajasthan government’s flagship initiative, iStart, has been instrumental in shaping the state’s startup ecosystem. Since its inception in 2017, the programme has created over 29,000 jobs and onboarded more than 4,000 startups. 

iStart’s comprehensive support framework covers six critical areas:

• Incubation: Modern incubation centres under this initiative provide startups with physical infrastructure, mentorship, networking and business support services. 
• Finance: Startups receive financial incentives, grants and funding to overcome initial capital challenges and accelerate growth. 
• Innovation: Regular competitions and innovation challenges encourage startups to solve societal and industry-level problems. 
• Mentorship & Networking: Entrepreneurs gain access to experienced mentors, industry experts and investors for guidance and market insights. 
• Skilling: Training programmes, workshops and capacity building initiatives help startups enhance skills in business development, technology and management. 
• Collaboration: iStart collaborates with government bodies to streamline regulatory processes, reduce bureaucratic hurdles and create a business-friendly environment. 

These initiatives have not only strengthened Rajasthan’s startup landscape but also enabled emerging ventures to challenge established players, disrupt traditional industries and tap into Tier II and III markets. 

All in all, the Inc42 report showcases how these initiatives are shaping the state’s startup landscape alongside stories of groundbreaking startups that are redefining Rajasthan’s economic narrative.

As Rajasthan’s startup ecosystem matures, the road ahead calls for deeper collaboration and a renewed focus on sustainable growth. All stakeholders, including government bodies, investors, incubators and entrepreneurs, must work together to foster innovation, ensure access to funding and strengthen mentorship networks across the state. 

Building robust support systems for women founders, expanding digital infrastructure to smaller cities, and promoting sector-specific accelerators will be key to maintaining momentum. By continuing to nurture talent and championing inclusive policies, Rajasthan can solidify its position as a leading destination for startups to drive the next wave of entrepreneurial success in India. 

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