The Indian Union Budget 2025 & Its Impact on Startups - Finally a Game Changer
+ Spotlight on "Eyeball" Economy and e-Sports Torchbearer in MENA - Batal Gaming
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The Indian Union Budget 2025 & Its Impact on Startups
The Union Budget 2025 marks a pivotal moment for India's startup ecosystem, MSMEs, and innovation-driven industries. With a clear intent to boost entrepreneurship, the government has introduced critical reforms that address funding challenges, regulatory hurdles, and financial access. Some of the standout measures include:
A ₹10,000 crore ($1.15 billion) Fund of Funds to bolster startup financing and risk capital.
Abolition of the Angel Tax, removing a significant friction point for early-stage investments.
Enhanced Credit Guarantee Cover, increasing from ₹5 crore to ₹10 crore to support MSMEs and startups.
Expanded MSME Turnover Limits, allowing businesses to scale without losing government benefits.
New Initiatives for Gig Workers, including e-Shram registration and healthcare benefits.
A ₹1 Lakh Crore Innovation Fund, aimed at deep tech, AI, and fintech startups.
These measures signal India's commitment to positioning itself as a global hub for entrepreneurship and innovation. But how is the industry responding? We bring you insights from startup founders and investors shaping India’s startup economy.
Industry Reactions to Union Budget 2025
[Source: Startup Story Media]
Payal Jain, Founder, Funngro “The budget takes a progressive approach to empowering gig workers and startups. The ₹10,000 crore Fund of Funds, higher MSME classification limits, and increased credit guarantee cover will drive entrepreneurship. We at Funngro applaud these moves and remain committed to empowering India’s youth and freelancers.”
Bhavik Vasa, Founder, GetVantage “The abolition of the angel tax and a ₹1 Lakh Crore Innovation Fund demonstrate the government’s intent to fuel risk capital and AI-driven ventures. Doubling MSME turnover limits and expanding credit guarantees reinforce India's vision of becoming a global entrepreneurship hub.”
Tanul Mishra, Founder, Afthonia Labs “The budget’s focus on agriculture, MSMEs, investment, and exports ensures sustainable economic growth. The execution of incentives through stronger public-private partnerships will be key to maximizing the impact.”
Mohit Singhal, Founder, Fundbook “This budget provides a major boost to MSMEs and startups. The ₹10,000 crore Fund of Funds and increased credit guarantee limits will provide early-stage ventures with easier access to capital.”
Adith Poddar, Founder, Gemba Capital “The increase in the tax exemption limit to ₹12 lakhs will drive domestic consumption, positively impacting startups in consumer-focused sectors.”
Mehul Shah, Founder, Intelligere “The government’s push for digital transformation and ease of doing business is a welcome move. However, the real impact will depend on implementation.”
Saahil Bhanot, Founder, Sylvr “Higher investment and turnover limits will provide stability to MSME entrepreneurs who were previously struggling under restrictive slabs.”
Giridhar LV, Founder, Nuvepro Technologies “The ₹500 crore allocation for AI-focused research centers is a much-needed push for India’s AI ecosystem.”
Rohith Vedira, Co-Founder & CEO, Sathpay “While the government’s fresh ₹10,000 crore fund for startups is a positive step, India still lags behind global markets in access to risk capital.”
Shashank Singh, Co-Founder, Poshn “The establishment of the Food Processing Board in Bihar is set to unlock significant opportunities for new SMEs.”
Kundan Shahi, Founder, LegalPay “With the extension of Section 80-IAC tax benefits and an increased credit guarantee cover, startups now have stronger financial backing.”
Shivam Thakral, CEO, BuyUcoin “The Web3 sector remains in limbo. While rationalization of TDS is a step in the right direction, clarity on taxation and compliance is still needed.”
Rishi Das, CEO, IndiQube “The additional ₹10,000 crore for the Fund of Funds is a strong move to improve access to capital and help startups scale.”
Divya Kothamasu, Founder, N Space Tech “The National Geospatial Mission signals a future-driven approach to infrastructure development and smart cities.”
Meena Kapoor, CEO, Astroyogi “The ₹2 crore loan scheme for first-time women entrepreneurs is a game-changer in improving financial inclusivity.”
Swati Bharagava, Co-founder, CashKaro “The government’s ₹20,000 crore commitment to the Fund of Funds underscores the confidence in India's startup potential.”
Ram Sellaratnam, Group CEO, iBUS Network “Doubling MSME limits and reducing duties on telecom equipment will strengthen India’s digital infrastructure.”
Our Take: The Budget Sets the Right Direction, but Execution Will Define Success
The Union Budget 2025 delivers a forward-looking approach to fueling India’s startup and MSME ecosystem. The abolition of the angel tax eliminates a long-standing barrier for early-stage investors, while the ₹10,000 crore Fund of Funds and increased credit guarantee schemes make funding more accessible. AI, fintech, and deep-tech startups stand to benefit from the ₹1 Lakh Crore Innovation Fund and AI research initiatives.
However, the true impact of these measures will depend on implementation. The government must streamline access to these funds, minimize bureaucratic red tape, and ensure that capital reaches the startups that need it most.
At Mehtta Ventures Dubai, we remain committed to tracking and analyzing the evolving investment landscape in India and the Middle East. As we work with investors and startups across these regions, we believe this budget sets a strong foundation for India’s continued rise as a global startup powerhouse.
For founders, now is the time to explore how these initiatives can benefit your business. If you’re looking for capital, strategic guidance, or market access, reach out to us.
Stay tuned for more insights from Mehtta Ventures Dubai as we continue to track the trends shaping the startup and venture capital ecosystem.
Today’s program:
Think live video commerce is just about the moment? Think again.
Next Guest on The Pressplay Podcast: Batal Gaming
And….Action!
Think live video commerce is just about the moment? Think again.
Did you know that only 40% of live commerce sales happen during the actual event?
The other 60% happens post-live stream—but only if brands make the smart move of keeping their videos accessible on their e-commerce site.
In the latest PressPlay Podcast, Luke Thomas, ex-Managing Director of Unilever International and now co-founder of MELA, dropped an absolute goldmine of insight:
👉 If brands keep live stream highlights on their platform for 15-20 days, they can increase sales by 1.5X!
This isn’t just a nice-to-have—it’s a game-changer in the video commerce playbook. The reality is: not everyone shops in real time. They watch, consider, and come back later. If your live content disappears, so do your sales.
This is exactly where MELA Platforms is making waves.
As an "Assisted Selling as a Service" platform, MELA helps brands maximize their video commerce strategy—not just during the live stream, but long after it ends.
Pressplay aims to be the media platform of choice for startups, scaleups and more building in the GAMES [Gaming, Ad Tech, Media Tech, Entertainment Tech and Sports Tech] space and works closely with companies such as MELA.
🎥 Watch the full conversation on PressPlay Podcast.
Next Guest on The Pressplay Podcast: Batal Gaming! [Subscribe Now!]
The Rise of Competitive Gaming in MENA
The Middle East and North Africa (MENA) region has emerged as one of the fastest-growing gaming markets globally, with a young, digitally connected population and increasing investments in esports. With an estimated 100 million+ gamers in the region, the market presents a massive opportunity for platforms that can effectively engage and monetize this audience.
Introducing Batal Gaming: A 1v1 Matchmaking Platform for MENA Gamers
Batal Gaming is positioning itself as the leading competitive gaming and esports platform in the MENA region, offering on-demand, skill-based matchmaking for 1v1 competitions. The platform addresses key challenges in traditional esports tournaments—accessibility, fairness, and efficiency—by allowing players to compete whenever they want through an algorithm-driven matching system.
Key Metrics Indicating Strong Early Traction
Batal Gaming’s user data showcases impressive early momentum [Available to interested investors]
The numbers indicate a healthy unit economics model, with a CLV/CAC ratio of 6.8x, suggesting that each acquired user generates significant long-term value. The 73% D30 retention rate is a strong signal of product-market fit, as it demonstrates high user engagement and repeat usage.
Business Traction: Scaling the Competitive Gaming Ecosystem
Since launching in beta, Batal Gaming has built a rapidly growing community:
35,000+ users across 16 countries
1,500+ tournaments hosted (BETA)
11,000+ 1v1 matches since September 2023
$160,000+ in revenue since September 2023
This rapid adoption underscores the demand for skill-based esports matchmaking in the MENA region.
Why Batal Gaming Matters: Solving the MENA Esports Problem
The current esports landscape in MENA suffers from exclusivity, inefficiency, and limited accessibility. Traditional competitions are dominated by elite gamers, use outdated bracket formats, and are constrained by event-based schedules. Batal Gaming removes these barriers by providing:
On-Demand Competition: Players can join matches anytime, eliminating wait times.
Fair Matchmaking: A proprietary skill-based algorithm ensures balanced gameplay.
Seamless Monetization: Through in-game purchases, creator-driven engagement, and cash-out opportunities.
The Distribution Advantage: A Gateway for Publishers
One of Batal Gaming’s most compelling value propositions is its distribution channel for game publishers. By aggregating a database of competitive gamers in MENA, Batal Gaming serves as a launchpad for new games entering the region. Publishers can leverage the platform for:
Guaranteed user acquisition via in-platform game promotions.
Building a competitive gaming ecosystem for sustained engagement.
Extracting player data insights to refine their marketing and monetization strategies.
Creator Economy: Monetization Beyond Gameplay
Batal Gaming integrates a Creator Tool that enables top gaming influencers to monetize their audience by offering:
Paid matches (play with/against fans)
Exclusive content (live streams, tutorial videos, behind-the-scenes access)
Digital goods & official merchandise sales
This strategy aligns with the growing creator-led gaming economy, where content-driven engagement is a key revenue driver.
Investment Thesis: The Future of Competitive Gaming in MENA
With its strong retention rates, revenue traction, and scalable business model, Batal Gaming represents a high-growth investment opportunity in the MENA esports ecosystem. The company is well-positioned to capture a significant share of the region’s rapidly expanding skill-based gaming and esports economy.
As the gaming industry in MENA matures, platforms like Batal Gaming that provide fair, accessible, and monetizable competitive experiences will become essential infrastructure in the esports landscape.
If you know of startup founders building in the “eyeball economy”, please go ahead and connect us. Let’s pay it forward together :-) 2025 it is!
Watch this space and subscribe / share with your friends.
While you wait for our next newsletter, I encourage you to check out our other newsletter / streaming consulting destination: The Streaming Lab where we cover streaming insights from MENA and India.
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