Startups: 'India Is In A Golden Age'

'The conversation is no longer just about securing funds or acquiring customers but about the long-term value of customers.'

Despite the prolonged funding winter and reduced count of unicorns, India Inc remains optimistic about startup growth.

Speaking at the second edition of Business Standard Manthan in New Delhi on Friday, industry leaders asserted that innovation, resilience, and sustainable business models matter more than capital influx.

"Capital finds its way toward the value being created. There might be some blips and ups and downs, but from a startup perspective, India is in a golden age," said Anshoo Sharma, CEO and cofounder of hyperlocal e-commerce platform Magicpin.

"The kind of adoption and hunger for technology, combined with the capabilities within operators and teams to build solutions, is unprecedented," Sharma added.

"Capital is looking for returns, which is why the multiples in India are what they are," Sharma explained.

Companies in India, he explained, are creating value through technology, attracting investment opportunities.

As of February in 2025, $1.33 billion had been raised in 235 equity funding rounds, down from $2.46 billion raised in 497 rounds in the same period a year ago, according to market intelligence platform Tracxn.

Achint Setia, CEO of e-commerce platform Snapdeal, said unicorns are not the right metric to measure company growth.

"It's not the right reference. We should look at an ecosystem evolving over a few decades, not just a couple of years," Setia said.

"There was a time globally when funding was easy, interest rates in the United States were low, and companies were securing as much capital as possible. But that cycle has changed," he added.

Following the funding boom of 2022, the Indian startup ecosystem has struggled to raise similar amounts.

In 2021, startups raised $37.7 billion, followed by $25.9 billion in 2022. Since then, funding has continued to decline, with startups raising $10.9 billion in 2023 and $11.4 billion in 2024, according to Tracxn data.

As a result, there has been a stronger focus on business sustainability, he said.

"Everywhere, the conversation around making money in a sustainable manner has increased, shifting the mindset of founders and operating teams," Setia explained.

"The conversation is no longer just about securing funds or acquiring customers but about the long-term value of customers," he said.

In the Indian startup ecosystem, there were only two unicorns in 2023 and six in 2024.

The logistics AI solutions company Netradyne became the first unicorn of 2025.

A unicorn is a privately held startup valued at $1 billion or more.

Echoing Sharma's and Setia's views, Puneet Singh Jaggi, co-founder of electric ride-hailing firm BluSmart, said: "If we are able to build the right business, the narrative follows."

"Every time we see a boom, there will be a parallel bust a couple of years later. These are standard market cycles," Jaggi said.

"What matters is keeping consumers, suppliers, and teams happy. As long as this happens, you will build businesses that persevere and last for generations."

The leaders agreed that digitisation and technology adoption have been fundamental to the growth of startups.

Feature Presentation: Ashish Narsale/Rediff.com