A Decade of Startup India: $151 billion raised, 118 unicorns minted

• Startup India completes a decade, with startups raising $151 billion and creating 118 unicorns

• Over 25,000 funding rounds since 2016 positioned India as a leading global startup hub

• Registered startups grew from 500 to 200,000+, aided by strong policy support

• Funding peaked in 2021–22, then slowed sharply post-2022

• Focus shifts toward sustainable, execution-driven, deep-tech-led growth

As India observes National Startup Day on January 16, it also marks ten years since the launch of the Startup India initiative—an effort that has reshaped the country’s entrepreneurial landscape. Over this decade, India’s new-age companies have collectively raised around $151 billion and produced 118 unicorns, underscoring the scale and ambition of the ecosystem that has emerged.

Data from market intelligence platform Tracxn shows that between 2016 and 2026, Indian startups attracted capital through more than 25,000 funding rounds. This sustained flow of investment positioned India among the largest startup hubs globally and helped nurture a broad pipeline of early-stage as well as growth-stage ventures throughout much of the decade.

According to Archana Jahagirdar, founder and managing partner at Rukam Capital, the growth has been dramatic. The number of registered startups has surged from roughly 500 in 2016 to over 200,000 today, placing India as the third-largest startup ecosystem in the world. She attributes much of this expansion to consistent policy support, including government-backed funding vehicles such as the Fund of Funds and the Seed Fund Scheme, alongside tax incentives, mentorship programs, incubation support, and regulatory simplification. Together, these measures lowered barriers to entry and encouraged both innovation and investment.

The boom years

Despite long-term growth, startup funding has been far from evenly distributed. Capital inflows accelerated steadily after 2016 but reached a historic high in 2021, when Indian startups raised $38.7 billion—the highest annual total to date and more than a quarter of all funding secured over the ten-year period.

That year also marked the peak of unicorn creation, with 44 companies crossing the billion-dollar valuation threshold. Strong momentum continued into 2022, when funding stood at roughly $25 billion and 24 additional unicorns emerged. Together, these two years accounted for nearly 60 percent of all unicorns created during the decade.

This evolution reflects a deeper shift in entrepreneurial thinking, said Vishesh Rajaram, founding partner at deeptech-focused venture fund Speciale Invest. He noted that India’s startup story is increasingly moving away from growth-at-any-cost models toward more meaningful innovation. Founders, particularly in deep tech, are leveraging AI, sustainability, and science-driven approaches to build globally relevant solutions aligned with long-term national development goals.

Funding slows and late-stage capital retreats

The environment changed sharply after 2022. Startup funding dropped to about $11.1 billion in 2023 and remained muted through 2024 and 2025, largely due to a pullback in late-stage investments. Rising global interest rates and a reset in valuation expectations made large growth rounds harder to secure.

According to Moneycontrol, the slowdown intensified in 2025, driven primarily by weaker late-stage funding. Startups raised approximately $9.8 billion across 880 deals that year, down slightly from $10.1 billion across 976 deals in 2024, as investors became more selective and fewer large cheques were written.

Yet, entrepreneurship itself has become deeply embedded in the national mindset. Akash Sinha, CEO and co-founder of Cashfree Payments, said building startups is no longer confined to a niche group. From major metros to smaller towns, founders are tackling local challenges with confidence and ambition. He emphasized that today’s entrepreneurs are not just creating companies but also shaping trust, employment, and the country’s digital infrastructure.

Fewer unicorns, tighter capital

As funding tightened, valuation milestones became harder to achieve. Following the surge of 2021 and 2022, only two new unicorns were added in 2023, with limited additions in subsequent years. This marked a clear departure from the earlier phase, when abundant capital rapidly propelled companies to billion-dollar valuations across sectors.

Jahagirdar observed that this shift has renewed focus on building businesses suited to domestic market realities. Increasingly, deeper pools of local capital are backing startups that prioritize durability and long-term value over short-term valuation gains.

The road ahead: execution over expansion

With capital markets recalibrating, both investors and founders are placing greater emphasis on efficiency, execution, and measurable outcomes. Growth opportunities are emerging in areas such as climate technology, manufacturing, logistics, agri-tech, and AI-driven enterprise solutions, rather than consumer internet scale plays alone.

Soham Chokshi, co-founder and CEO of Shipsy, believes India is at a pivotal point in its technology journey. He argues that the country must move beyond its traditional role as an outsourcing destination and evolve into a hub for AI-led innovation, focusing on outcome-driven systems that amplify human capability rather than simply automating processes.

A tougher, more focused decade

Ten years after Startup India was launched, the headline numbers—$151 billion raised, over 25,000 funding rounds, and 118 unicorns—highlight how far the ecosystem has come. At the same time, they signal the beginning of a more challenging phase ahead. The next decade is likely to be shaped by selective capital, fewer late-stage deals, and a sharper focus on sustainable value creation, testing the resilience and maturity of India’s startup ecosystem as it enters its next chapter.

Graphics courtesy Money Control