According to a recent study by Redseer Strategy Consultants, the time it takes to reach the $100 million milestone has dramatically decreased as the ecosystem has matured over the past decade. According to the report, the time it took to reach $100 million in revenue in 2000 decreased from 18 to just 5 years.
There are 170 soonicorns and about 100 unicorns in India. Approximately 40 firms in the fintech, e-commerce and logistics sectors have generated more than $100 million in revenue as of FY22.
Venture capital has greatly aided startups’ ability to reach the $100 million revenue milestone. The startup ecosystem, valued at $804 billion, has seen investments from VCs totaling around $143 billion during the past 15 years (CY08 to CY22). According to the report, at present valuations, that equates to a roughly 4.5x return for venture capitalists on their investments.
The report also highlighted that there are 12,000 startups in India, ranging in size from Emerging ($10 million or less), Growth Stage ($10 million to $100 million), to Large ($100 million to >$1 billion). 95% are under the emerging category, 3-4% are in the growth stage, and fewer than 0.5% are large companies.
Scaling challenges are a common part of the growth journey for startups. The report found that while some firms need help with product-market fit and unsustainable expansion, others are part of niche industries that limit their overall addressable market.