Private capital, not just policy, will decide India’s startup future, say Dassault top execs

India’s startup ecosystem is growing fast, but the next phase will be shaped less by slogans and more by money, mentoring, and market focus. This was the common thread in conversations with Suchit Jain, Vice President of Strategy and Business Development at SOLIDWORKS, a software brand owned by French multinational corporation Dassault Systèmes, and Abhishek Bali, who runs global startup programmes at Dassault Systèmes.

Dassault’s global startup programmes mainly support young companies building physical products, from electric vehicles to space technology and robotics, by giving them access to design and testing software, along with mentoring and industry connections. 

Bali stressed that Dassault does not take equity in these programmes. “These are zero-equity programmes. We don’t (take equity); the IP (intellectual property) is theirs,” he said. 

Instead, the company hopes that, as startups grow, they will continue as customers. 

Jain, who oversees strategy and early engagement globally, said more than 28,000 startups have gone through the company’s programmes so far; about 5,000 were added last year alone. India’s share has been historically small but it is rising. He said sectors such as drones, space, electric mobility, and last-mile delivery solutions are seeing strong momentum. 

According to Bali, interest from Indian hardware startups is rising sharply. “We have grown, in the past four or five years, more than 150% in the number of startups (emerging from India),” he said, adding that the quality of ideas has also improved. 

Funding a constraint

Both executives, however, pointed to funding as a key constraint. 

Jain argued that while government programmes help, private capital plays a different role. “Public money is forgiving. Private money is not. It puts pressure on you to be successful,” he said, adding that stronger private investment within India would encourage founders to build for the domestic market rather than looking abroad for validation. 

Bali said Dassault often helps startups connect with investors, offering introductions and recommendation letters. Being part of a recognised programme builds a “circle of trust” with investors, even though the company itself does not invest directly. 

Rise of practical AI 

On technology, both executives said artificial intelligence is becoming more practical. 

Bali observed that, earlier, many firms used the term ‘artificial intelligence’ loosely, but now hardware companies are using it more responsibly. Products are combining physical hardware with smarter software to improve performance. 

Jain remarked that AI’s real impact in manufacturing will come from using it to test and improve physical systems, not just digital content.

He also pointed to broader efforts, including student programmes and global design competitions that began in India and are now expanding worldwide, as part of a long-term effort to build skills and a community around product innovation. 

Innovation beyond metros 

The executives said India’s startup growth is real and spreading beyond metros. 

Innovation, Bali reiterated, is no longer limited to big cities. “Gone are the days… innovation is actually coming from smaller cities.” 

But turning this innovation into globally competitive companies will require not just talent and tools, but also deeper pools of risk capital and closer ties between startups, the larger industry, and technology providers, they said.