Ten years after the government started the Startup India initiative, these new businesses have raised over $151 billion and produced 118 unicorns as India celebrates National Startup Day on January 16.
India’s Startup India Journey Marks a Decade
According to statistics from market intelligence company Tracxn, companies received this money in over 25,000 fundraising rounds between 2016 and 2026, making India one of the world’s biggest startup ecosystems by size. For the most of the decade, this growing foundation supported a consistent flow of early and growth-stage businesses.
Rapid Expansion of Registered Startups
According to Archana Jahagirdar, founder and managing partner of venture capital company Rukam Capital, “the number of registered businesses has significantly increased over the previous ten years, from 500 in 2016 to over 2 lakh registered startups, making India the third biggest startup ecosystem in the world.”
She claimed that over the course of the decade, the government has supported this growth through initiatives like tax breaks, funding programs like the Fund of Funds and Seed Fund Scheme, and assistance through mentorship, incubation, and streamlined regulations, all of which have helped to promote innovation and draw in capital.
Funding Concentration and the 2021 Boom
A significant portion of funding has stayed concentrated in a little period of time. When Indian startups raised $38.7 billion in 2021—the largest yearly sum on record and more than a fifth of all capital raised between 2016 and 2026—capital inflows skyrocketed after increasing gradually in the years after 2016.
In the same year, 44 firms reached values of at least $1 billion, marking the apex of unicorn formation. The excitement continued into 2022, when 24 additional unicorns were created and financing reached over $25 billion. Almost 60% of all unicorns generated throughout the decade came from 2021 and 2022 combined.
🚀 Startup India: 10-Year Snapshot
- Period: 2016–2026
- Total Funding: $151 billion+
- Funding Rounds: 25,000+
- Unicorns Created: 118
- Peak Year: 2021 ($38.7B funding)
- Global Rank: 3rd largest startup ecosystem
Shift From Scale to Substance
According to Vishesh Rajaram, founding partner of deeptech-focused VC firm Speciale Invest, the change in financing patterns is a reflection of a larger shift in founder objectives.
“Scale is giving way to substance in India’s startup drive. In order to create inclusive, globally relevant solutions that advance the goal of a Viksit Bharat via long-term, responsible value generation, deep-tech entrepreneurs are using AI, sustainability, and science-led innovation, according to Rajaram.
Post-2022 Funding Slowdown
After 2022, the cycle took a dramatic turn. As global interest rates increased and valuation criteria reset, startup financing dropped to around $11.1 billion in 2023 and stayed muted through 2024 and 2025, signaling a retreat in late-stage capital.
According to Moneycontrol, a decrease in late-stage finance was a major factor in the slowdown’s deepening in 2025. As big expansion rounds became less common, startups raised $9.8 billion over 880 transactions throughout the year, compared to around $10.1 billion across 976 deals in 2024.
Entrepreneurship Becomes Mainstream
Over the last ten years, entrepreneurship has been more popular, according to Akash Sinha, CEO and co-founder of Cashfree Payments.
In India, entrepreneurship is no longer a specialized endeavor. It is now the nation’s lifeblood. Founders are constructing with bravery, conviction, and an unwavering confidence that Indian challenges deserve world-class answers, from Tier-1 metropolises to remote communities, according to Sinha.
“There is a lot of potential ahead as we go into the next stage of India’s startup adventure, but there is also a lot of responsibility. Today’s founders are influencing not just companies but also livelihoods, trust, and the nation’s digital infrastructure.
Impact on Valuations and Unicorn Creation
The financing delay directly affected the results of the valuation. Unicorn formation plummeted after the 2021 and 2022 boom, with only two new unicorns added in 2023. As financing became more scarce, successive years saw very small additions.
This was a distinct departure from the previous stage, when a surplus of expansion capital sped up sector-wide valuation milestones.
📉 Startup Funding: The New Reality
- Late-Stage Capital: Sharply reduced after 2022
- Investor Focus: Profitability, efficiency, execution
- Unicorn Creation: Slowed significantly post-2022
- Market Shift: From valuation growth to long-term value
- Founder Strategy: Sustainable and outcome-driven growth
Domestic Capital and Market Realities
Deeper local capital pools are increasingly supporting companies focused on long-term value rather than short-term valuation growth, according to Jahagirdar, who added the change has emphasized the significance of developing for home market realities.
Execution, efficiency, and results are becoming more important to investors and founders as financing circumstances change. Instead of focusing just on consumer internet scale bets, opportunities are starting to appear in sectors including manufacturing, logistics, agri-tech, climate solutions, and AI-led business infrastructure.
Moving Up the Technology Value Chain
According to Soham Chokshi, co-founder and CEO of Shipsy, India now has a chance to advance up the technological value chain.
“India should shift from being a hub for outsourcing to a center of AI innovation and concentrate on using AI to enhance human potential.” He said, “We must transition from resolving tickets to achieving results, from systems of record to systems of action.
A More Demanding Phase Ahead
The $151 billion collected across more than 25,000 rounds and the creation of 118 unicorns demonstrate the size of India’s startup ecosystem as National Startup Day commemorates 10 years since Startup India’s founding. Additionally, the data indicates a more difficult phase ahead, characterized by a tighter emphasis on performance and long-term value generation, fewer late-stage checks, and selected funding.
Frequently asked questions
1. What is National Startup Day, and what makes it significant?
January 16 is National Startup Day, commemorating the start of the Startup India initiative in 2016. It showcases India’s startup ecosystem’s expansion, successes, and future prospects.
2. In the last ten years, how much money have Indian entrepreneurs raised?
India has one of the biggest startup ecosystems in the world, with over 25,000 fundraising rounds and about $151 billion raised by Indian businesses between 2016 and 2026.
3. To date, how many unicorns has India produced?
Over the last ten years, India has produced 118 unicorns, with 2021 and 2022 seeing the highest number—nearly 60% of all unicorns—combined.
4. What caused startup financing to decline after 2022?
Global interest rate increases, valuation adjustments, and a decrease in late-stage capital availability all contributed to a reduction in funding, which made investors concentrate more on profitability and execution.
5. Which industries are anticipated to drive the next stage of startup expansion?
Rather than only consumer internet companies, future development is anticipated in deep-tech, AI, climate solutions, manufacturing, logistics, agri-tech, and corporate infrastructure.
Conclusion
The figures—$151 billion funded, over 2 lakh registered firms, and 118 unicorns—reflect the ecosystem’s astounding scope and aspirations as India commemorates ten years of Startup India. A more cautious investment environment has replaced the financing boom of 2021–2022, although this recalibration indicates maturity rather than collapse.
With innovation-led industries gaining center stage, the emphasis is now on long-term value generation, robust execution, and sustainable development. India has a chance to advance in the global technology value chain during the next ten years and become a center for ethical, goal-oriented innovation.
Disclaimer:
This article is for informational purposes only. It does not constitute financial, investment, or legal advice. Figures and statements are based on publicly available data and expert opinions and may change over time. Readers should conduct their own research or consult professionals before making any business or investment decisions.
