India is quietly creating something that even advanced economies are trying to understand: a nationwide Digital Public Infrastructure (DPI) that acts like a national digital operating system. 

Aadhaar, UPI, DigiLocker, account aggregators, and Open Network for Digital Commerce (ONDC) are not standalone platforms; they are part of a cohesive digital foundation that works together seamlessly. 

These interoperable systems manage identity, money, and data with the efficiency of well-designed public goods. Together, they form India Stack, a modular architecture that reduces friction, democratises access, and encourages innovation.

But the truth often gets overlooked.

The government established the infrastructure, but venture capital has fuelled some of the most transformative innovations built on it. 

Without thousands of venture-backed startups turning these application programming interfaces (APIs) into everyday experiences, the DPI would have remained a brilliant yet underused framework. Instead, it has evolved into a vibrant ecosystem serving more than 1 Bn people.

How Venture Capital Is Powering DPI Growth

Venture capital has served as the catalytic layer. Fintech startups have used Aadhaar authentication, UPI payments, DigiLocker documents, and Account Aggregator data flows to redesign onboarding, lending, savings, and financial access. 

Meanwhile, commerce startups are creating a parallel revolution on ONDC, opening new opportunities for millions of MSMEs and providing them with a level playing field in digital commerce. 

Each venture-backed project has expanded what the DPI can do and pushed the ecosystem forward. This convergence is powerful because the DPI is doing for India what cloud computing once did for the United States. 

Today, it operates on a national scale and has deep societal implications. Aadhaar eliminates the cost of identity, UPI removes the friction associated with money, DigiLocker makes document verification simple, account aggregators eliminate data asymmetry and ONDC reduces platform dependency.

These changes are not just minor improvements, they fundamentally reset how the economy functions.

For founders, this means India is now the best digital laboratory in the world.

For venture capitalists, it means lower infrastructure costs, clearer regulatory signals, and unmatched market depth.

For consumers, it means reliable digital services that everyone can access.

Most importantly, venture capital is not just watching this transformation; it is speeding it up, enhancing it, and shaping its path. 

Startup Ecosystem Fuelled By Robust Digital Rails

As startups grow, they push the public infrastructure to evolve. UPI added features as founders asked for more flexibility. The Account Aggregator framework improved as lenders created new underwriting models. ONDC refined its protocols as early users pointed out operational gaps. 

This collaboration between policymakers, founders, and investors is India’s strength, unlike Silicon Valley’s “free for all” or China’s state control; it is a uniquely Indian blend.

Now, the world is paying attention. During the G20 Summit, the DPI was a highlight. Countries in Asia, Africa, and Latin America are exploring how they can adopt versions of India Stack. India is not just exporting technology; it is sharing a model of digital governance.

The next decade will bring a new generation of companies that thrive on DPI. These companies will see India’s digital infrastructure as their natural foundation, integrating Aadhaar, UPI, DigiLocker, Account Aggregators, ONDC, and future DPI layers from the start. This is where venture capital will find its greatest opportunities.

As India develops DPI layers for agriculture, health, education, skills, climate, and urban governance, new opportunities will arise. Picture crop insurance based on real-time DPI data. Personalised learning backed by secure credentials in DigiLocker. Climate risk assessments using geospatial DPI layers. Public health forecasts built on trusted, consent-based data sharing. Municipal services running on open protocols rather than city-specific systems. 

In Conclusion

Each of these represents a billion-dollar opportunity waiting to be realised.

Venture capital is crucial in accelerating this future by funding startups that build on and improve platforms like UPI, ONDC, and India Stack to foster inclusive innovation. VCs will support founders who deeply understand India’s digital infrastructure, who can create products that scale to millions from day one, and who can turn public digital resources into impactful commercial and social results. 

As these startups succeed, they will continue to enhance the DPI itself, creating an unmatched cycle of innovation, growth, and feedback.

India is not merely building digital infrastructure, it is crafting a plan for how digital nations will emerge in the twenty-first century. Venture capital is helping to write the next chapter of this global story.