India’s startup landscape: A snapshot of innovation and growth

India, the world’s 3rd largest startup hub, boasts of over 157,000 startups and 100+ unicorns, with Bengaluru, Mumbai, and Delhi-NCR leading the way. Startups are tackling challenges in industries fintech, edtech, and beyond, leveraging AI and blockchain to innovate locally and globally.

With initiatives like Startup India and funding support from the Fund of Funds initiative of ₹10,000 crore, the government is accelerating growth. With multiple success stories, Indian startups have attracted the attention of global players.

Data by Venture Intelligence suggests that in January 2025 itself, PE and VC funding clocked in at a staggering $3.4 billion. In 2024, PE investments soared to $15 billion, an impressive 46.2% YoY growth. In the chart below we look at a detailed split of the various funding sources from Jan 2024-June 2024 (latest available data).

Source: Inc42; Note: Based on Indian startup funding deals recorded between January 1, 2014 and June 30, 2024

Jobs in the age of startups

Startups are driving India’s economic growth by creating jobs. Since the launch of the Startup India initiative in 2016, 1.55 million direct jobs have been created. As a percent of new formal jobs created each year, just over FY19-23 startups have almost doubled their share from ~1% to 2%.

Source: Inc42, the data for 2024 is up until June, 2024.

Opportunities are driven by sectors like retail, e-commerce, next-generation financial services, manufacturing, and SaaS-based digital solutions.

Startups breaking the glass ceiling

The Indian Startup Funding Report 2024 by Inc42 paints an inspiring picture; women-led startups in India raised a staggering $930 million across 136 deals in 2024, nearly double the $480 million raised in 2023. This underscores the rapid rise of female entrepreneurs in the country.

Meanwhile, data from Tracxn reveals that more than 8,000 tech startups were founded by women. This growing wave of women-led innovation is transforming the Indian startup ecosystem, fostering diversity and driving fresh ideas in industries nationwide.

India's emerged startup hubs

As investors seek the next big opportunity, India’s startup hubs have become prime destinations for funding. India’s startup ecosystem has attracted over $150 billion in investments between 2014 and 2024, with projections surpassing $170 billion by 2025, according to a report by Inc42

Bengaluru, Delhi NCR, and Mumbai attract 89% of investments, with Bengaluru alone securing 46.2% of deals, while emerging hubs spearhead in sectors like fintech, e-commerce, and health-tech. While Bengaluru, Delhi NCR, and Mumbai still dominate funding, other cities are quickly emerging as key players in India.

Source: Inc42

City-wise emergence story

Chennai: Chennai is becoming a standout city as well, having raised over $4.7 billion across 379 deals since 2014, with a notable $472 million secured in 2024. With a mix of industries, including AI, fintech, e-commerce, and edtech, and support from top investors like Peak XV and Accel, the city is well-versed to dive head first into India’s startup scene.

Pune: Pune has established itself as a prominent player, securing over $4.7 billion in funding across 380 deals since 2014, including $439 million in 2024. Sectors such as e-commerce and edtech, are home to notable startups like FirstCry, OneCard, and Rebel, contributing to its startup environment.

Hyderabad: Hyderabad has emerged as a startup hub, raising over $3 billion through 384 deals since 2014 from sectors like enterprise tech, fintech, e-commerce, and edtech. With $296 million raised in 2024 and growing investor interest, the city is becoming a destination for scaling startups.

Source: Inc42

Beyond these major hubs, cities like Ahmedabad are embracing fintech and SaaS; Jaipur is becoming an e-commerce hub; and Kolkata is making its mark in logistics and fintech.

Challenges faced by Indian startups

Startups in India face tough challenges like a funding crunch, complex regulations, and scaling issues. Despite government support, navigating tax laws and compliance remains tricky. With fierce competition for talent in sectors like AI and cybersecurity, and a high failure rate of over 90%, staying ahead requires innovation and adaptability to sustain growth.

In summary

India's startup scene is a blend of innovation, opportunity, and ambition. From emerging hubs to well-established centers of growth. While challenges like funding and complex regulations remain, the drive for growth and the government’s support continue to pave the way for success stories. As more cities join the startup revolution, India’s economy is projected for a promising future, one that has new opportunities and solutions for both local and global markets.