Startup funding in India decreased by 17% during FY2023-24, only one unicorn formed in 2023

Startup funding in India has declined by 17 percent in FY24 compared to the previous year. In the year 2021, investment professionals were getting an average of six deals per day, but in 2024, this has been reduced to three.

According to Wealth 360 One's 'India Invests' report, private equity worth $100-250 million has declined by 60 percent. Whereas the number of people investing $500 million or more has also declined by more than 80 percent. A decline of 30 percent has also been recorded in funds with investments of less than $100 million. But funding under US$5 million is still happening at a steady rate.

The report said that large deals of more than USD 25 million, which are usually awarded when startups grow, have also declined. This means less money is going into startups overall, especially in medium to large-sized deals. Startups raised about USD 8 billion from investors this year, which is 50% less than in FY22-23.

According to data from the Ministry of Commerce and Industry, India has 111 unicorns with a total valuation of USD 349.67 billion. Out of the total number of unicorns, 45 unicorns with a total valuation of USD 102.30 billion were formed in 2021. There were 22 unicorns with a total valuation of USD 29.20 billion in 2022. Whereas in 2023 only one unicorn could be created.

More than 1.2 million jobs are created by India's 1.7 lakh registered startups. Maharashtra has the most ventures out of all of them—5801 to be exact. The next three states with the most startups are Tamil Nadu with 2810, Karnataka with 3032, and Delhi NCR with 3150.