A couple of years ago Indian startups were dismissed as a passing fad and often were greeted with skepticism. The story has changed dramatically today equipped with Indian startups proving their worth and also shaping the economic arena of India. The shift was a key theme at the Global Leadership Summit of CNBC-TV18.
CRED founder Kunal Shah recalled the early days and noted that people were quick to write off Indian startups. He said that ten years ago assuming Indian startups would amount to nothing was easy. He pointed out the huge change in perception since then.
Zetwerk co-founder Amrit Acharya said his company focused on contract manufacturing and was not initially seen as an attractive or cool startup. Zetwerk today is thriving and generating nearly ₹12,000 crore in revenue in FY23. A third of the revenue is coming from the U.S. Its IPO is now anticipated in 2025 or 2026 and it is to be a major milestone for a company that faced skepticism at the outset.
The rapid growth has brought its share of criticism and particularly for startups valued in the billions yet struggling to turn a profit. Wipro executive chairman Rishad Premji lately called the rush to become a unicorn overhyped and emphasized that companies need to focus on sustainable as well as long-term growth rather than just high valuations. Rajan Anandan of Peak XV Partners acknowledged the same but noted that India’s startup ecosystem has produced more than 100 unicorns since 2011. More than 30 venture-backed startups have gone public and is now worth over $100 billion combined.
The drive toward sustainability is also evident in companies like Unicommerce and it had one of the most popular IPOs of 2024. CEO Kapil Makhija noted that the market appreciated the steady financials and long-term profitability of Unicommerce.
2024 is shaping up to be a landmark year for tech IPOs in India. Some of the big names in this category include Ola Electric, FirstCry and Swiggy. Swiggy’s IPO unlocked ₹9,000 crore in employee stock options and it created wealth for 5,000 employees.
India’s startup world is clearly undergoing a revolution and shifting from a high-growth-at-all-costs mindset to one focused on long-term stability and shared wealth.
