In the last year, the Artificial Intelligence (AI) startup ecosystem in Chhattisgarh has expanded sharply, with the number of AI startups more than doubling across State. Investors are also showing strong interest in AI ventures, and currently, AI startups are receiving the highest share of investments and funding among all startup sectors, including support from government sources. To boost the startup ecosystem, the current State Government led by Vishnu Deo Sai has introduced the Startup and Innovation Policy 2025–2030. This policy aims to support entrepreneurs from idea validation to scaling, offering a mix of funding support, incentives, and market access initiatives. According to records from the Single Window System for Chhattisgarh Startups, the number of active AI startups increased from 36 in 2024 to 75 in 2025. This rapid growth has made AI one of the fastest-growing segments within the state’s technology startup ecosystem. However, food processing startups still dominate the ecosystem, accounting for around 40% of registered startups. After food processing, real estate and healthcare startups are also major contributors. Most of the funding in AI startups has been directed toward application-based companies. As per the Single Window System, about 50% of AI startups in the state focus on applications, while the remaining are involved in infrastructure and model development.

 

Since the establishment of the Single Window System, the number of startups in the state has increased significantly. This year, there is a possibility of around 100 new startups emerging in Chhattisgarh. The state government has taken further steps to strengthen the startup ecosystem. Under its policy, early-stage startups can access seed funding of up to Rs10 lakh to develop minimum viable products (MVPs) and cover initial operational costs. To support growth-stage ventures, the government has created a 100 crore fund that offers 50% matching grants to startups that secure investment from SEBI-registered Alternative Investment Funds (AIFs). Startup expert Ranjeet Choudhary stated that while the startup market is booming in the state, it remains largely concentrated in Raipur. He emphasized the need for expansion into smaller and tribal districts to ensure broader growth of the ecosystem. Abhijeet Sharma, Consultant for the Single Window System of Chhattisgarh and a startup expert, noted that the central government has also introduced new measures to promote startups. The revenue threshold for startups has been increased from 100 crore to 200 crore, and for AI startups, it has been raised to 300 crore. He further added that the eligibility period for AI startups has been extended from 10 to 20 years to support long-term growth.