The Indian startup ecosystem has shown impressive growth in 2024 and it is standing out with more unicorns, higher funding as well as a steady pace of exits.
Six startups achieved unicorn status this year and it is a jump from just two in 2023. The new unicorns, specializing in areas like lending, logistics, software and generative AI. They reflect the growing diversity of the Indian startup ecosystem. However, it now takes an average of 7.3 years and over nine funding rounds to reach the billion-dollar mark, which is a significant increase from the 4.2 years and 4.5 rounds in 2023.
Tech startup raised $11.3 billion in 2024 and it was a 6% increase from last year. it highlights the confidence of investors in Indian innovation. Startups need $287 million on average to hit unicorn status and it is clear that success demands more patience as well as deeper pockets than ever before.
Acquisitions have also been a key feature this year equipped with 113 startups bought and the number was slightly down from 140 in 2023. It took startups seven years from their first funding to be acquired and the deals brought in an average price of $38.9 million.
The IPO scene has been a bright spot equipped with 37 startups going public and it is up from previous years. The companies took an average of 8.5 years and $357 million in funding to reach the stock market equipped with an average market cap of $753 million.
The Indian startup ecosystem is undoubtedly maturing, but the longer timelines and higher funding requirements suggest a need to be more strategic.
