Who are India's top angel investors and what are they betting on now?

Despite crossing the $1 billion mark, India's angel investing ecosystem is grappling with declining participation due to regulatory pressures and shifting investor trends

Angel investing in India, though still in its nascent stage, recently crossed the $1 billion commitment mark. While the milestone reflects a growing appetite for early-stage risk capital, the number of active angel investors appears to be shrinking. This decline is largely attributed to regulatory hurdles, including the now-abolished 'angel tax' and the Securities and Exchange Board of India’s (Sebi's) new accreditation requirements.

 

This report breaks down the fundamentals of angel investing, profiles the top Indian angel investors and their key bets, and explores how emerging trends and regulations are reshaping the landscape.

Who are angel investors?

Angel investors are high net-worth individuals (HNIs) who invest their own capital in early-stage startups, usually at the seed or pre-seed stage, in exchange for equity. Although they generally do not interfere with day-to-day operations, they often provide mentorship and strategic support. 

   

Unlike venture capitalists (VCs), who typically invest pooled funds at later stages, angels invest their personal wealth at very early stages. Their involvement can significantly shape a startup’s direction and growth.

 

Angel investors also operate through networks or groups that allow them to pool resources and place larger bets.

Angel investors

• Use personal funds and offer mentorship
• Invest at seed or pre-seed stage
• Typically write smaller cheques: $25,000–$100,000
• Rely on personal judgement rather than a formal process

Venture capitalists

• Invest pooled capital from multiple sources
• Enter after initial traction, typically Series A and beyond
• Write larger cheques, often in millions
• Follow a structured, formal investment process

Most active angel investors and their bets

According to Eqvista’s 2025 list of the top 100 angel investors, prominent Indian names include Kunal Shah, Anupam Mittal, and Vijay Shekhar Sharma. These investors have backed several startups that are now key players in their respective sectors. The data has been compiled from the global market-intelligence platform Tracxn.

Kunal Shah, founder, Cred

Shah has founded five companies and invested in over 287 startups across fintech, SaaS, consumer internet, and enterprise applications. Notable investments include Zetwerk, Shiprocket, and Bigbasket. In 2025, he invested in Spense ($1.85 million, Seed) and Presentations.AI ($3 million, Seed).

Anupam Mittal, founder, Shaadi.com

Mittal has backed over 245 startups across sectors such as consumer and retail. His key investments include Ola and MobiKwik. Recent investments include Kalakaram ($70,500), Dorabi ($116,000), Solnce Energy ($115,000), and HireForCare ($41,800, Seed).

Ramakant Sharma, co-founder, Livspace

Bengaluru-based Sharma has invested in 119 startups, with a focus on consumer and enterprise applications. Notable bets include Purplle and Dezerv. In June, he invested $5 million in Rabitat's Series A round.

Binny Bansal, co-founder, Flipkart

Bansal has backed 75 startups across enterprise, retail, and fintech. His portfolio includes PhonePe, Slice, Curefoods, Acko, and Hike. Recent investments include Posha ($8 million, Series A), RISA Labs ($3.5 million, Seed), and BorderPlus ($7 million, Series A).

Rajan Anandan, former Google India Head

Anandan has invested in 123 startups, with Rapido and Capillary Technologies among his top bets. His recent funding activity includes $19.5 million in Indifi (Series D, 2021) and $4.87 million in The Good Glamm Group (2020).

Vijay Shekhar Sharma, founder, Paytm

Sharma has invested in 76 startups across fintech and internet services. His notable bets include MediBuddy, NoBroker, Unacademy, and Treebo. His latest investment was in Presentations.AI ($3 million, Seed) in January.

Investment trajectory remains uneven

India's startup ecosystem has seen exponential growth. According to an Inc42 report, India had more than 1,900 active investors in Q1 2025, making it the third-largest startup ecosystem globally. Since 2014, startups have raised over $161 billion.

 

In Q1 2025, total startup funding reached $3.1 billion, up from $2.2 billion in the same period last year. Seed-stage funding stood at $188 million, an 18 per cent year-on-year increase.

 

Despite the momentum, angel funding forms only a small fraction of total investments. Private Circle data revealed that angel investors participated in 36 deals in January 2025, up from 28 a year earlier but down from 44 in December.

 

A Financial Express report noted that of the top 200 funding rounds since 2019 involving angel investors, only eight took place in 2025 so far—down from 28 in 2024 and 26 in 2023. Angel participation has steadily declined across the years, despite over 3,400 funding rounds since 2019.

Taxation and accreditation challenges

The limited number of angel investors in India is partly due to regulatory issues. The now-defunct 'angel tax' had a dampening effect. Under Section 56(2)(vii)(b) of the Income Tax Act, investors had to pay a 30 per cent tax, plus 3 per cent cess, on income from unlisted company investments.

 

This tax was abolished in 2024. According to a Finance Ministry release, Union Finance Minister Nirmala Sitharaman said the repeal aimed to boost the startup ecosystem.

 

However, a new challenge has emerged. On June 18, Sebi introduced its accreditation policy, requiring angel investors to gain formal accreditation from Sebi-recognised agencies. The move is expected to standardise the angel investment process but could limit access for smaller players.

Trends shaping the future of angel investing

Several emerging trends are poised to influence angel investing in India:

• Growing regulatory clarity
• Broader adoption of artificial intelligence
• Increasing participation by female investors
• Interest from non-resident Indians and US-based Indian founders

 

The influx of foreign investors is also expected to impact early-stage funding and expand the angel investment landscape further.