A recent article titled ‘What drives startup fundraising in India?’ was published as a part of the January 2023 issue of the Reserve Bank of India’s monthly bulletin. It shows that more startups have been becoming unicorns in recent years in India. The article also points out that the number of months taken by startups in India to climb up the funding ladder has drastically declined in recent years.
As on January 12 this year, there were 87,988 startups in India recognised by the Department for Promotion of Industry and Internal Trade (DPIIT). This makes the country the third-largest startup ecosystem in the world. Only those entities which work towards innovation or which have a scalable business model are recognised in India as startups up to 10 years from the time of their incorporation and which had a turnover that did not exceed Rs. 100 crore in any year.