5-year strategy to aid 1.25 lakh entrepreneurs: Startup policy gets Maharashtra Cabinet nod
The Maharashtra Startup, Entrepreneurship and Innovation Policy 2025, cleared by the state Cabinet, outlines a five-year strategy to support 1.25 lakh entrepreneurs and recognise 50,000 startups, with provisions for a Rs 500-crore Maha-Fund, subsidised loans, incubation infrastructure, global startup exchange, and a new 300-acre Maharashtra Innovation City in Navi Mumbai.
Under the policy, aspiring entrepreneurs will be eligible for loans between Rs 5 lakh and Rs 10 lakh at a 3% subsidised interest rate, to be provided through a structured three-stage selection process. A total of five lakh youth, including graduates and ITI pass-outs, will be screened, of which 25,000 will be selected for financial and incubation support.
The government will simultaneously set up micro-incubators in ITIs, polytechnics, and academic institutions, along with regional innovation and entrepreneurship hubs in each of the state's administrative divisions.
A key infrastructure initiative is the development of the Maharashtra Innovation City (MIC), a 300-acre integrated facility planned near Navi Mumbai International Airport.
Designed as a convergence zone for startups, R&D labs, corporates, academia and government, the city will host sector-focused clusters in AI, FinTech, Deeptech, Medtech, Biotech, Spacetech, smart infrastructure, mobility, sustainability, and cyber security.
The facility will include AI sandboxes, data analytics labs, co-working spaces, a single-window policy facilitation centre, and venues for global startup exchanges, demo days and investor summits.
Startups selected through the Maharashtra Startup Week will be eligible for pilot work orders of up to Rs 25 lakh from state departments. The policy also provides for reimbursements of Rs 5 lakh for domestic patents, Rs 20 lakh for international patents, Rs 5 lakh for quality certifications, as well as funding for participation in domestic and international exhibitions.
The policy introduces a robust governance model anchored by a general body chaired by the Chief Minister, supported by a governing council and administered by the Maharashtra State Innovation Society (MSInS).
Each state department will earmark 0.5% of its annual outlay for innovation and entrepreneurship promotion. A centralised startup registry will assign unique IDs to all eligible startups, incubators, mentors, and investors to ensure transparent access to government benefits.
To strengthen access to capital, the policy will launch a Rs 200-crore venture fund with IDBI Capital, focusing on Deeptech, agritech, healthcare, sustainability and women-led startups. Additionally, a Rs 100-crore fund will be created with SIDBI, leveraging a 1:2 public-private capital structure.
Provisions have also been made for CSR-linked incubators, social impact accelerators and regulatory sandbox frameworks to support innovation in emerging technologies.
The digital component includes a mentorship platform, a real-time knowledge portal, and promotion of AI-based innovation using government open datasets. The policy integrates entrepreneurship courses into school and ITI curricula, and will utilise the 3.5% innovation allocation under District Annual Plans to promote grassroot innovations, local cluster developments and inclusive enterprises.
'This policy is structured to provide direction, financial backing and mentoring, so that young entrepreneurs don't waste years without support,' Mangal Prabhat Lodha, Minister for Skills, Employment, Entrepreneurship and Innovation, said after the cabinet meeting.
'It's not just a policy of subsidies — it's a cohesive ecosystem strategy designed to position Maharashtra as India's leading innovation destination,' said Manisha Verma, Additional Chief Secretary of the Skills, Employment, Entrepreneurship and Innovation Department.
Maharashtra hosts over 14,000 women-led startups and is home to 27 of India's 117 unicorns, accounting for 23% of the national count. All 36 districts in Maharashtra have at least 20 recognised startups, reflecting a strong geographical spread. The state has received national accolades for administrative excellence and ranks among the top performers in the State Ranking Framework (2022–23).
However, despite this scale, startup activity remains concentrated in urban centres like Mumbai and Pune. Rural regions, tier-2 cities, and emerging sectors such as Deeptech, AI, blockchain, and agritech remain underserved.
There is a lack of decentralised incubation, limited procurement channels for early-stage startups, and insufficient global investor access. The 2025 policy aims to address these structural gaps by building a more inclusive, distributed, and sector-wise diversified startup ecosystem across the state.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
4 minutes ago
- Economic Times
The Sleep Company raises Rs 480 crore in funding led by ChrysCapital, 360 One Asset
ETtech Priyanka and Harshil Salot, cofounders, The Sleep Company Direct-to-consumer startup The Sleep Company has raised Rs 480 crore in a mix of primary and secondary funding round, with private equity firm ChrysCapital and 360 One Asset investing in the part of the transaction, early backer Fireside Ventures made a partial exit through secondary share sales. Cofounder Harshil Salot told ET that the round was evenly split between primary and secondary components. 'We had Fireside Ventures who was our earliest backer, they have taken a part exit in a secondary and the balance is primary. The predominant use of this fund is on development of our teams and on our retail expansion footprint,' he said. The company plans to add 130-150 stores over the next two years, building on its current network of 160 stores across 47 in 2019 by husband-wife duo Harshil and Priyanka Salot, The Sleep Company sells products such as mattresses, pillows, bedding, cushions, office chairs, recliners, and sofas. It plans to deepen its presence in metro and tier-I cities while expanding in tier-II Salot said around 85% of The Sleep Company's sales now come from its direct-to-consumer website and offline outlets, with the remaining 15% coming from marketplaces such as Amazon and Flipkart.'We continue to see strong traction not only in the top cities but also the tier I and tier II cities and we want to continue to double down on our omnichannel strategy because we believe that is a very strong part for our business,' he added. The funding comes at a time when key competitors such as Wakefit and Duroflex are preparing for initial public offerings. Wakefit filed its draft red herring prospectus (DRHP) in June to raise Rs 468 crore through a fresh issue, while Duroflex is also looking to go public in the next 18 months, according to Reuters. Sheela Foam, which owns Sleepwell, is currently the only listed player in the space. Harshil Salot said the IPO plans of rivals including Wakefit and Duroflex signal a maturing of the domestic sleep and home furnishing industry. 'It's great for the increases awareness about this category and these products, which will help all of us.'The company said it currently has an annualised revenue run rate (ARR) of Rs 750 crore and has achieved profitability at an earnings before interest, taxes, depreciation and amortisation level in the last to Tracxn, The Sleep Company closed fiscal year 2024 with a revenue of Rs 320 crore on a net loss of Rs 58.7 it does not yet have an international presence, Harshil Salot said global expansion is part of the company's long-term Mumbai-based firm, which employs around 1,500 people, is ramping up hiring across product development and retail teams, with a portion of the new funding earmarked for this expansion.'This investment also represents a compelling opportunity to participate in India's broader premiumisation wave—where consumers are increasingly gravitating towards high-quality, science-led, and design-first products that enhance everyday living,' said Rajiv Batra, director and consumer sector lead, ChrysCapital said in a statement. 'We believe The Sleep Company is poised to become a dominant force not only in sleep solutions but across the wider comfort and wellness landscape.' It last raised Rs 184 crore in December 2023 from Premji Invest and Fireside Ventures. Prior to that, it secured Rs 177 crore in 2022 in a round led by Premji Invest, with Fireside also participating. The company is also evaluating new acquisition targets for acquisitions in the space. Priyanka Salot, cofounder of The Sleep Company, said that when the company launched five-and-a-half years ago, new brands were entering the market every two to three months. However, most of those no longer exist or have been acquired, and she expects the trend of consolidation to continue. Elevate your knowledge and leadership skills at a cost cheaper than your daily tea. Berlin to Bharuch: The Borosil journey after the China hit in Europe FIIs are exiting while retail investors stay put. Will a costly market make them pay? BlackRock returns, this time with Ambani. Will it be lucky second time? Paid less than plumbers? The real story of freshers' salaries at Infy, TCS. Stock Radar: Down 27% from highs! Hero MotoCorp stock shows signs of momentum after breaking out from 11-week consolidation For those prepared for the long game: 5 mid-cap stocks from different sectors with an upside potential of 14 to 33% in one year Financial services: Time to look at a new set for the next cycle? 5 stocks from the financial services space with upside potential of up to 37% These 8 banking stocks can give more than 29% returns in 1 year, according to analysts
Economic Times
4 minutes ago
- Economic Times
Fintech lender Zype raises Rs 90 crore in round led by Japanese VC fund Unleash Capital Partners
Mumbai-based digital lending startup Zype has raised Rs 90 crore in a fresh funding round led by Japanese venture capital firm Unleash Capital Partners. Existing investor Xponentia Capital also participated in the round. This round comes after the 2022-founded startup raised its first major institutional round of Rs 146 crore last year, thereby bringing the total equity raised to Rs 236 crore. Unitus Capital was the exclusive advisor for the transaction, the company said in a statement. Zype received a non-banking finance company (NBFC) licence in 2023 and, since then, has been disbursing loans from its books. Its current assets under management (AUM) stands at Rs 400 crore, and since its inception, it has disbursed Rs 1,300 crore. Competing with the likes of Fibe and Kreditbee, Zype extends unsecured personal loans but only caters to young salaried consumers. Its borrowers have typically used Zype for wedding expenses, home repair, and health emergencies in their families. 'We have grown this business in a measured and profitable manner. With the new raise, we are good to grow for the next 12-18 months without the need for a fresh equity round,' said Yogi Sadana, founder, Zype. Sadana was previously the chief executive officer of fintech lending startup, Cashe. He quit Cashe to start his own digital lending business in June the NBFC is not yet rated by credit rating agencies, Sadana said that with the new capital raise and some scale-up of business operations, he is looking to get ratings, which will help him source credit lines from more banks and the startup is at an annual recurring revenue run rate of Rs 150 crore and is growing profitably month-on-month (MoM). Sadana said that while the startup did not report net profit for FY25, given that it broke even only in the last quarter, from FY26 the company will report net profit at the end of the to data from business intelligence platform Tracxn, Zype closed FY24 with a net operating revenue of Rs 20.3 crore and a net loss of Rs 7.3 crore. This funding round comes at a time when consumer lending startups are trying to shake off the tough few months of November to February, when traditional lenders slowed down lending to fintech startups. With the interest rate cycle turning favourable and the festive season coming up, the sector is hopeful of good growth over the coming months. ET reported on August 5 that Fibe is looking to close a $35 million funding round from IFC. Sadana is also hopeful of good business over the festival season, when consumption trends pick up, and the holiday season, when people tend to spend more. 'We have a 250-member team already, with a special focus on technology and keeping collections in-house,' Sadana said. 'We have even built an AI lab internally to work on cutting-edge technologies,' he added.
Time of India
6 minutes ago
- Time of India
Fintech lender Zype raises Rs 90 crore in round led by Japanese VC fund Unleash Capital Partners
Mumbai-based digital lending startup Zype has raised Rs 90 crore in a fresh funding round led by Japanese venture capital firm Unleash Capital Partners . Existing investor Xponentia Capital also participated in the round comes after the 2022-founded startup raised its first major institutional round of Rs 146 crore last year, thereby bringing the total equity raised to Rs 236 Capital was the exclusive advisor for the transaction, the company said in a received a non-banking finance company ( NBFC ) licence in 2023 and, since then, has been disbursing loans from its books. Its current assets under management (AUM) stands at Rs 400 crore, and since its inception, it has disbursed Rs 1,300 with the likes of Fibe and Kreditbee , Zype extends unsecured personal loans but only caters to young salaried consumers. Its borrowers have typically used Zype for wedding expenses, home repair, and health emergencies in their families.'We have grown this business in a measured and profitable manner. With the new raise, we are good to grow for the next 12-18 months without the need for a fresh equity round,' said Yogi Sadana, founder, Zype. Sadana was previously the chief executive officer of fintech lending startup, quit Cashe to start his own digital lending business in June the NBFC is not yet rated by credit rating agencies, Sadana said that with the new capital raise and some scale-up of business operations, he is looking to get ratings, which will help him source credit lines from more banks and the startup is at an annual recurring revenue run rate of Rs 150 crore and is growing profitably month-on-month (MoM). Sadana said that while the startup did not report net profit for FY25, given that it broke even only in the last quarter, from FY26 the company will report net profit at the end of the to data from business intelligence platform Tracxn, Zype closed FY24 with a net operating revenue of Rs 20.3 crore and a net loss of Rs 7.3 funding round comes at a time when consumer lending startups are trying to shake off the tough few months of November to February, when traditional lenders slowed down lending to fintech startups. With the interest rate cycle turning favourable and the festive season coming up, the sector is hopeful of good growth over the coming months. ET reported on August 5 that Fibe is looking to close a $35 million funding round from is also hopeful of good business over the festival season, when consumption trends pick up, and the holiday season, when people tend to spend more.'We have a 250-member team already, with a special focus on technology and keeping collections in-house,' Sadana said. 'We have even built an AI lab internally to work on cutting-edge technologies,' he added.
