Ten years after the launch of the Startup India programme, India’s startup ecosystem is entering a more measured phase after completing a full funding cycle marked by rapid growth, a sharp peak, and a clear reset.
As the country marks National Startup Day on January 16, startups founded over the last decade have raised about $151 billion and produced 118 unicorns. Between 2016 and 2026, this capital was raised across more than 25,000 funding rounds, according to data from market intelligence platform Tracxn, placing India among the largest startup ecosystems globally.
“The last 10 years has seen a significant increase in the number of registered startups, from 500 in 2016 to over 2 lakh registered startups, making India the third largest startup ecosystem in the world,” said Archana Jahagirdar, founder and managing partner at venture capital firm Rukam Capital.
She said government initiatives such as the Fund of Funds, Seed Fund Scheme, tax benefits, and support through mentorship, incubation, and simpler regulations played a key role in driving innovation and attracting capital.
Funding, however, has been highly concentrated. After steady growth post-2016, investments surged in 2021, when startups raised $38.7 billion, the highest annual total and over 25% of all capital raised during the decade. Unicorn creation also peaked that year, with 44 new unicorns. In 2022, funding stood at about $25 billion, with 24 more unicorns added. Together, 2021 and 2022 accounted for nearly 60% of all unicorns created in the period.
Vishesh Rajaram, founding partner at Speciale Invest, said founder priorities are evolving. “India’s startup momentum is shifting from scale to substance. Deep-tech founders are using AI, sustainability and science-led innovation to build inclusive, globally relevant solutions advancing the vision of a Viksit Bharat through long-term, responsible value creation,” he said.
The cycle turned after 2022. Funding fell to about $11.1 billion in 2023 and stayed muted through 2024 and 2025, as late-stage capital pulled back amid higher global interest rates and valuation resets. A news platform reported that startups raised $9.8 billion across 880 deals in 2025, down from about $10.1 billion across 976 deals in 2024.
“Entrepreneurship today is no longer a niche pursuit in India. It has become the heartbeat of the nation,” said Akash Sinha, CEO and co-founder of Cashfree Payments.
With fewer late-stage cheques, unicorn creation slowed sharply, with only 2 new unicorns added in 2023 and modest additions thereafter.
Looking ahead, investors and founders are prioritising execution and efficiency, with rising interest in climate solutions, manufacturing, logistics, agri-tech, and AI-led enterprise tools. “India should focus on amplifying human potential with AI,” said Soham Chokshi, co-founder and CEO of Shipsy.
The decade ahead, the data suggests, will reward outcomes and long-term value over rapid expansion.
Also read: Viksit Workforce for a Viksit Bharat
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