In spite of encountering worldwide challenges such as valuation issues, limited IPOs, regulatory changes, and the influence of macroeconomic and geopolitical trends in 2023, India continues to stand as the third-largest global tech startup ecosystem. A report released on Thursday revealed that over 950 tech startups were established in the country last year.
According to a report by Nasscom in collaboration with Zinnov, the collective funding for over 31,000 tech startups has surpassed $70 billion from 2019 to 2023.
Despite the prevalence of layoff news in the startup sector throughout 2023, a report based on a survey of over 100 startup founders reveals that more than 65% of them engaged in moderate hiring last year.
“In 2023, despite facing global economic and regulatory challenges, Indian tech startups have prioritised the imperative of enhancing their business fundamentals, driving profitability and growth,” said Debjani Ghosh, President, Nasscom.
“The proliferation of tech startups in tier 2 and 3 cities marks the ecosystem’s resilience,” she added.
Heading into 2024, founders of tech startups anticipate persisting on the path of revenue growth, taking deliberate measures to optimize spending and maximize profitability, particularly for B2B tech startups.
In 2024, investments in deeptech are expected to maintain an upward trajectory. Propelled by generative AI (GenAI) advancements, 70% of startup founders are incorporating artificial intelligence (AI) into their solutions.
Pari Natarajan, CEO at Zinnov, said the India startup story is no longer about just scale and innovation but also efficiency and adaptability — all building blocks of sustainable value.