Startups in India are now taking approximately five years to scale from zero to $100 million in revenue, shows a report on Thursday.
With the ecosystem evolving in the last decade, the time taken to reach the $100 million valuation has lowered relatively.
What took 18 years in 2000 to reach $100 million in revenue has come down to five years, according to Redseer Strategy Consultants.
There are nearly 100 unicorns and 170 soonicorns in India. Of these 270 glowing stars, 40+ startups in FinTech, eCommerce, and logistics have crossed $100 million in revenue as of FY22.
“These startups firm took from 5 to 12 years to achieve this scale,” said the report.
VCs have invested about $143 billion over the last 15 years (CY08 to CY22) in the startup ecosystem, which is currently valued at $804 billion.
The report cited that current valuations translate to about 4.5x return for VCs on their investments.
“Customized solutions from TAM expansion, product market fit, to improve profitability and operational efficiency, our industry experts help startups scale to desired heights and solve their challenges,” said Rohan Agarwal, Partner, Redseer Strategy Consultants.
India has about 12,000 startups ranging in revenue classification from Emerging (less than $10 million), Growth Stage ($10 – 100 million) to large ($100 million to more than $1 billion).
Of these, 95% belong to the emerging category, 3-4% are in the growth stage, and less than 0.5% of companies are large.