India’s startup ecosystem is now showing signs of renewal and it is especially clear in the rapid growth of quick commerce where delivery services bring everything from groceries to gadgets to people’s doors in record time. Major cities like Bangalore suffer chronic traffic woes and such services have quickly become essential. Zomato is leading the wave and has grown to a $26 billion valuation. Its rival Swiggy is set for a public offering at an $11 billion valuation. Younger companies like Zepto have reached billion-dollar heights.
The rise in digital commerce reflects a deeper shift in India’s economic segment as a significant downturn was witnessed in 2023. Venture capital investments then dropped below $8 billion and nearly 35,000 startups shuttered. A 2021 funding boom brought in $35 billion and created 40 unicorns in a single year. It became clear that some firms were unprepared for sustainable growth and several household names like Paytm and Byju’s encountered serious governance as well as regulatory issues.
India’s entrepreneurs seem to be turning a corner and one key driver is the e-commerce sector that is currently accounting for 7% of India’s retail activity. Digital shopping could expand to $230 billion by 2030 and driven by a growing middle class. The shift is encouraging local players to take on American giants like Amazon and Walmart-owned Flipkart. Platforms like Meesho are leveraging WhatsApp and other social tools to reach customers in smaller cities.
Deeper technological pursuits are taking root beyond e-commerce as India’s deep tech startups are finding their stride and particularly in areas like robotics. The AI sector is also showing promise with startups innovating with Indian-language AI models and also creating business software that speaks to India’s IT legacy.
The new wave appears less about imitating Western models and more about solving uniquely Indian problems. India’s startups are set for a promising second act with local ingenuity and a growing appetite for tech innovation.
