Evaluating early stage startups in this market

Early stage bets cant be taken on company's current problems.
You should be evaluating not the companies current performance but founder x industry.
Bet on the Founder and Industry - not on company. Problem statements and vision of company change very quickly in early stage.
Founder-

1. First time founder?
2. Why are they building what they are building.. If they sell you a rosy picture of growth of company - red flag - ask real reason for him to be a founder. If it sounds like he is casual about stuff and will look for an exit sooner - red flag. Understand their Motivation factor.
3. Pedigree (can also be estimated from yoe in that industry dont limit pedigree to only education from top tier.)
4. Integrity of founder (ask ref check from founders, red flag if founder takes offense of denies)
5. Vision (are they building a unicorn or a small biz or whatever and ask them how would they do that)

Industry -

1. What is the industry's current standing
2. Whats the expected growth rate (read reports published annually by tamaesk, google , bain, other VCs on India's growth story - pls dont believe numbers but understand the macros behind).

1. Founders profiles ; ideas can change but people won't
2. Market : is it a growing market ? Or dad one
3. Funding /economics : Do they have revenue? Do they have funding?
4. Unique insight: what different are the people doing that existing solutions. Is it just copy cat with better execution or fundamentally better approach.

There are several other factors but if you like people and their plans then go for it. But please bear in mind that Early stage startups are v v risky inspite of above criteria.