Priyanka Tiwari
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According to Blume Ventures, there has been no meaningful change in the availability of late-stage funding for Indian companies over the last five years. A recent report shows that late-stage capital participation has not increased naturally with the increase in startup funding.
In the Indus Valley Annual Report 2025, Blume states that $6.6 billion in funding received in 2024 was much less than the $7.7 billion in 2018. The report states that the value of funding saw an overall increase, but the amount of funding received in late stages reduced when compared to six years ago.
This has remained the case even with the many late-stage rounds initiated during 2024 in various industries, including quick and instant delivery commerce giant Zepto, edtech unicorns PhysicsWallah and Eruditus, cloud kitchen firm Rebel Foods, mobility business Rapido, and fintech company Mintifi.
The amount estimated for startup funding in India for the year 2021 is $37.4 billion, which is quite unprecedented. This amount was majority late stage funding. Ever since, the amount has been on a declining trend, reaching a low of $10.6 billion in 2023, which is the lowest the country has seen in seven years.
Though The World Bank reported a boost in funding in 2024, estimating the amount to be $11.2 billion, it marked an increase from the $10.6 billion in late stage funding per year, the estimate is still well below the levels from six years ago.
The percentage of late-stage funding in total startup funding was only 59% in 2024, down from 70% in 2018 at the same time late stage funding was auxiliary. While this was happening, the seed and early-stage rounds have gradually increased throughout.
“A Vibuant venture market such as the US has about 70/75 percentage late-stage funding as more companies keep growing and requiring more growth capital,” it stated.
Lesser unicorns
Late stage funding allows capital to be funneled into the decreasing rate of startup unicorns.
The number of unicorns that was created out of India is experiencing a vastly sharp decline after 2021 when 44 unicorns were minted. 2022 saw 23 unicorns and has droped to a mere 2 unicorns in 2023 after the funding winter has set in.
While India boasts being the 3rd largest unicorn generator with 117 of such companies, the report suggests that only 91 are valued over $ 1 billion There was also mention of 20 startups such Pharmeasy, Hike, Rivigo, Byju's, MyGlamm Pharmeasy that no longer maintain the unicorn status.
The once “poster child” of the Indian startup world, Byju’s has faced immense troubles due to a host of regulatory problems along with disputes with multiple investors which has led the firm into insolvency. The Good Glamm Group has had similar challenges over the past few months as well which include top level executive exits, layoffs and legal issues between the firm and the founders. Pharmeasy, an online medicine delivery startup, is also witnessing increasing chances for its co-founders to exit the company following a string of valuation reductions and debt defaults. IPO boom Nevertheless, even more startups have entered the public market stands after India took the lead in the number of IPOs in 2024. The nation also had its best year in terms of equity funding with 1.59 trillion rupees raised through public offers.
The report suggests that companies that are planning to go public are doing so much faster than in 2018. It's clear that companies with 42% lower revenue and 37% lower market valuation are seeking IPOs, which indicates that they are going public at an earlier stage in their life cycles.
Last year, 13 startup IPOs cumulatively raised over Rs 29000 Crores ($3.4 billion) with Swiggy, Ola Electric and FirstCry posting record setting listings. As Moneycontrol reported earlier, this year, over 25 startups are looking to go public.
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