Despite the recent resurgence in startup funding, late-stage capital has not grown meaningfully for Indian companies over the last half-decade, both in quantum and as a percentage of overall funding, a recent report by venture capital firm Blume Ventures shows.
At $6.6 billion, the quantum of late-stage funding in 2024 was lower than the $7.7 billion in 2018 despite overall capital seeing an increase from six years ago, Blume’s Indus Valley Annual Report 2025 says.
This is despite many startups, across sectors, raising late-stage rounds in 2024, including quick commerce major Zepto, edtech unicorns PhysicsWallah and Eruditus, cloud kitchen startup Rebel Foods, mobility firm Rapido, and fintech startup Mintifi.
Startup funding in India peaked in 2021 when budding companies raised a record $37.4 billion, a majority of which was late stage. Since then, it has been a slippery slope, with funding declining to a seven-year low of $10.6 billion in 2023.
While 2024 saw a resurgence as funding climbed to $11.2 billion on the back of an uptick in large funding rounds, it is still lower than the levels seen six years ago.
In fact, late-stage funding rounds, as a percentage of overall startup funding, dropped to 59 percent in 2024, compared to 70 percent in 2018, the report shows. This came even as cheque sizes in seed and early-stage rounds have gradually increased during the period.
“A thriving venture market like the US has about 70/75 percent late-stage, funding as more companies keep growing and require more growth capital,” the report said.
Fewer unicorns
The dearth of late-stage funding may have also contributed to the declining rate of startup unicorns.
The number of unicorns – startups valued at over $1 billion and more – minted in India has slowed down considerably since 2021, when 44 unicorns were created. The year 2022 saw 23 unicorns, which dropped to just two in 2023, as the funding winter gradually took hold.
While India may be the world's third-largest unicorn factory with 117 such firms on paper, only 91 of them are currently valued at over $1 billion, the report says.
As many as twenty startups, including beleaguered firms like Byju's, Pharmeasy, MyGlamm, Hike, and Rivigo, no longer command the coveted unicorn status, it says.
Edtech firm Byju’s — once the poster child of the Indian startup world — has seen its fortunes dwindle due to a spate of regulatory issues and disputes with many investors, triggering the firm’s insolvency.
Likewise, The Good Glamm Group has seen similar challenges crop up over the past months, including layoffs and exits at the top deck, to legal tussles and founders leaving.
Meanwhile, online medicine delivery startup Pharmeasy, too, is likely to see its co-founders exit the firm, after a spate of valuation cuts and an inability to pay back debts.
IPO boom
Regardless, more startups have been accessing public markets, as India led in initial public offering (IPO) activity globally in 2024. The country saw its best year in equity funding as Rs 1.59 trillion were raised via public offers.
According to the report, companies that are looking at going public are doing it sooner compared to 2018. Firms that have 42 percent lower revenue and 37 percent lower market cap are now going for IPOs, indicating that they are going public earlier in their life cycles
Last year, 13 startup IPOs collectively raised over Rs 29,000 crore ($3.4 billion), with bumper listings from Swiggy, Ola Electric, and FirstCry. More than 25 startups are eyeing public listings this year, Moneycontrol reported earlier.
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