Country's startups are carving a unique path by prioritising local, application-led innovation over the global pursuit of scale.
Deep-tech now forms over half of VC portfolios in India as firms like Cornerstone, Unicorn India Ventures and All in Capital back startups combining research with scalable models
Startups that became unicorns in 2024 took an average of nine years and six months to reach $1 billion valuation, reflecting the impact of a prolonged funding squeeze from PE/VC firms over the past few years.
Indian startups raised a total of $1.65 billion (about Rs 14,418 crore) in funding at a median valuation of $83.2 million in February 2025, according to data from Traxcn. This brings the total funding in FY25 (April-February) to $25.4 billion, spread across 2,200 rounds, the data showed.
'First, develop the ability to sell -- to persuade, negotiate and close. Second, understand the financial mechanics that determine where value pools and how profits are captured,' says Shaadi.com founder Anupam Mittal.
Since then, 129 startups have joined this star status, of which 100 were added from January 2019, generating a total value of $535 billion. Entrepreneurs are building bigger enterprises at a faster rate -- 50 per cent of the 130 companies reached unicorn status in the first five years after their initial institutional fundraising.
A student allegedly threatened a PhysicsWallah teacher with a slipper during an online class in 2023 -- one of the several safety-related incidents revealed by the edtech unicorn in its updated draft papers filed ahead of its initial public offering (IPO).
Whether in cricket or business, Kohli continues to play the long game.
The Indian startup ecosystem recently celebrated the 100th unicorn milestone. It came after a month of no big fund announcements. Compare this to 2021, when three to four unicorns were being added every month. Nevertheless, the 100th unicorn needs to be celebrated since the first unicorn was announced in 2011 - 11 years ago.
'Given that the market is now demanding disciplined growth, well-run companies should be able to demonstrate profitability with the cash on hand.'
India is currently home to 52 unicorn startups and one of the fastest-growing startup ecosystems.
India may get its first unicorn this year as Zepto, which promises 10-minute deliveries, is in talks to get fresh funding that would take the start-up's valuation past $1 billion. The quick-delivery firm is looking to raise $150 million in a series E round, which will take its valuation to $1.3 billion. The round will be led by StepStone Group, a limited partner (LP) of Zepto's existing investor, Nexus Venture Partners, said media reports.
Dubai is positioning itself as a springboard for Indian companies looking to tap into fast-growing emerging markets, including Africa, banking on low tariffs, long-standing trade relations, and a shared vision for regional economic growth, said Mohammad Ali Rashid Lootah, president and chief executive officer, Dubai Chambers, at the Dubai-India Business Forum in Mumbai.
That's because India does not have a serious venture capital industry with an appetite for risk, observes T N Ninan.
India has 50 startups with the potential to achieve the coveted 'unicorn' status in 2022 and by the end of the year, the list of the new-age companies valued at over $1 billion will be at least 100, a report by a consultancy firm said on Monday. In 2021, which witnessed a huge spike in company valuations in the listed and unlisted space driven by ample liquidity, according to some watchers, India added 43 startups to the list and the number of unicorns shot up to 68 by the end of the year. Over $10 billion was invested in the Indian startup ecosystem in the October-December quarter alone, according to the report by PwC India.
India added three 'unicorns' per month in 2021 to nearly double the overall number of startups valued at over USD 1 billion to 51 as of end-August, a report said on Thursday. Even as, cumbersome regulations are forcing startups to leave India and settle in other countries where they enjoy better treatment, as per the Hurun India, which prepared the list. It can be noted that over the last few years, dedicated efforts have been undertaken to hone the startups ecosystem by the government through flagship initiatives like 'Startup India'.
'It is our duty to keep space sustainable and free of debris.'
The Indian economy has witnessed the creation of 28 unicorns, or startups valued over $1 billion, this year on the back of a series of reforms unleashed by the government, Finance Minister Nirmala Sitharaman said. Addressing a virtual conference organised by the Indian Private Equity and Venture Capital Association (IVCA), the minister said the Indian economy has witnessed a spur of unprecedented growth in the form of startups in the last two decades. The Department for Promotion of Industry and Internal Trade (DPIIT) has recognised more than 56,630 startups across districts throughout India, IVCA said in a statement quoting the finance minister.
India's share of total global venture capital (VC) funding fell to 2.9 per cent in calendar year 2023 (CY23) - the lowest since CY19 - reaching $7.3 billion as most startups struggled to raise money without compromising on their earlier valuations. Based on global data by CB Insights on VC funding, funding to Indian startups fell by nearly a third compared to CY22 when it hit $20.6 billion and accounted for 4.8 per cent of the global figure. While the data shows that the world had 71 new unicorns (21 in Asia), India contributed only two of them, as compared with CY22 when it had 22.
$47.6 bn capital invested across 921 deals in India in 2020, despite pandemic.
Over the last 12 months, thanks to bold bets by venture capital firms like Sequoia, SoftBank Vision Fund, and foreign strategic investors like Naspers, pipeline of start-ups with potential to achieve $1 bn in valuation is at an all-time high.
The move comes barely a week after fellow crypto unicorn CoinDCX laid off 12 per cent of its workforce - an estimated 80 employees - amid challenging macroeconomic conditions and regulatory uncertainty in the sector. CoinSwitch has 519 employees, according to its LinkedIn profile. This means around 8 per cent of its workforce were shown the door.
Anmol Singh Jaggi and Puneet Singh Jaggi, once hailed as rising stars in India's clean energy sector, are now facing serious regulatory action.
These unicorns, or startups valued at over USD 1 billion, are across industries, beyond technology and tech-enabled sectors as well, like pharmaceuticals, and consumer goods, Credit Suisse India equity strategist Neelkanth Mishra told reporters in Mumbai.
Becoming a unicorn is surely a marker for a company in its growth story, but it's not a major achievement nor is it a turning point of any significant worth.
Ajit Balakrishnan on keeping an eye on democratising finance in India.
Byju's, Flipkart, PharmEasy and CRED, among others, have taken the acquisition route to grow
There seems to be no dearth of funds to fuel this growth, report Peerzada Abrar and Shivani Shinde.
For the startup ecosystem in India, the scorecard so far has been a mixed bag, observes Akhil Gupta.
Co-founders of India's latest unicorn expected Covid-19 to be a speed breaker; instead it accelerated sales. Cars24 now enjoys more than 90 per cent market share among all other similar online transaction platforms. Dhruv Munjal traces the birth of this used-cars platform.
'Son believes India has a significant opportunity in chip design, especially in creating IP that will be uniquely Indian.'
A large part of the work that CEO Sumit Gupta does is focused on educating users and the larger community about investing in cryptocurrencies, reports Neha Alawadhi.
Kunal Shah has funded over 266 startups including Razorpay, Snapdeal, Zetwork, BlueSmart, Unacademy, Bliss Club, and Spinny, amongst others.
'Many were caught in a burnout race, chasing unsustainable growth without innovating.'
Funding winter and corporate governance woes separated the men from the boys in the country's startup space in 2023 that saw funds into the segment tapering to just around $8 billion. All said, investors are hopeful of strong growth of the maturing startup ecosystem in the new year. Edtech and health tech segments that grew exponentially during the pandemic plunged into an abyss of financial uncertainties, with several firms shuttering their business, and valuation of prominent players like BYJU'S and PharmEasy plummeting 85-90 per cent.
'I tell young entrepreneurs if you don't have a great idea, if you don't have a good business model, don't think of a start-up.'
'I told myself, I will be 23 next year. Why can't I be a billionaire too?'
Quick commerce major Zepto has raised $340 million in a follow-on financing round at a valuation of $5 billion as it gears up for an initial public offering (IPO). This is Zepto's third big-ticket fundraise within a year. With this, the company has raised more than $1 billion in 12 months.
Going back to the board, analysing mistakes and efficiently addressing them can help entrepreneurs establish successful start-ups in the long run, says Vikram Bhandari, the chief technology and innovation officer at Riveron, a business advisory firm.
Byju's has emerged as the leader in the Indian education-tech sector. They are pioneering technology shaping the future of learning for millions of school students in India.
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