Manufacturing Startups Face a New Funding Trap as AI Shifts Investor Focus to Physical Capacity
Manufacturing startups in India are confronting a widening funding gap as investors increasingly favor businesses with tangible production capacity over software-first models, according to Kaushik Mudda. The shift is being accelerated by the rise of artificial intelligence, which is making software easier to replicate and pushing capital toward power electronics, storage components, and grid equipment. For startups, the challenge is no longer just building demand, but financing the factories, supply chains, and working capital needed to meet it.
