Startups and Tech: A Year of Milestones and Controversies
In a year marked by remarkable growth, impressive exits, and transformational changes, India's startup ecosystem has experienced its share of triumphs and controversies.
The Indian startups that made headlines this year include Zepto, which stands out as a significant contributor to the quick commerce revolution; Zomato, which achieved milestones in profitability under the leadership of CEO Deepinder Goyal; and companies that shut shop due to funding droughts, unsustainable business models, or other reasons.
According to data from Venture Intelligence, funding for India's electric vehicle (EV) sector has nearly halved between 2022 and 2024, as policy changes and declining sales growth prompt investors to push for better unit economics and profitability at companies before committing further capital. On the other hand, risk investors scored exits worth more than $5 billion from Indian startups in 2024 via secondary transactions, offers for sale in IPOs, and public market block deals.
This year has also seen a growing trend of women executives taking charge at technology corporations across India. Google's appointment of Preeti Lobana as the head of its Indian operations is just one example of this trend.
The calendar year 2024 was marked by several controversies that raised questions about governance, ethics, and accountability in India's startup ecosystem. Allegations of financial mismanagement, corporate governance lapses, and concerns around data privacy have pushed several startups into the news for the wrong reasons.
Despite these challenges, India's startup ecosystem has created over 1.6 million jobs, with the Department for Promotion of Industry and Internal Trade (DPIIT) recognizing 1.57 lakh startups as of December 25, 2024. This number highlights the growing role of women in entrepreneurship, with more than 73,000 startups having at least one woman director.
In 2025, it is expected that the number of new-age IPOs will at least double from nine this year, according to people aware of the plans. Meanwhile, Tata Sons may infuse fresh funds into its ecommerce arm only in mid-2025, while Cloud kitchen firms cut losses to cook up healthy numbers.
As 2024 draws to a close, the focus shifts to new developments and opportunities in the startup ecosystem. From Oyo's acquisition of G6 Hospitality for $525 million to Coforge and Cigniti Technologies' move toward a planned merger, there are several exciting stories that will unfold in the coming year. With the Indian software services industry expected to expand its collective payrolls by up to 12% in FY26, it is clear that this sector is poised for continued growth.
Stay tuned for more news and updates from India's thriving startup ecosystem.
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