As the ecosystem has matured over the past decade, the time it takes to reach the $100 million mark has decreased significantly.
Post Date – 12:00 PM, Thursday – 1/5/23
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New Delhi: Indian startups now take about five years to scale from zero to $100 million in revenue, a report on Thursday showed.
As the ecosystem has matured over the past decade, the time it takes to reach the $100 million mark has decreased significantly.
According to Redseer Strategy Consultants, the 18-year time frame required to reach $100 million in revenue in 2000 has now been shortened to five years.
There are about 100 unicorns and 170 unicorns in India. Among the 270 shining stars, more than 40 startups in fintech, e-commerce and logistics have surpassed $100 million in revenue by FY2022.
“It took these startups five to 12 years to reach this scale,” the report said.
Over the past 15 years (CY08 to CY22), venture capital firms have invested approximately $143 billion in the startup ecosystem, currently worth $804 billion.
The report mentioned that according to the current valuation, the return on investment of venture capital is about 4.5 times.
Rohan Agarwal, Partner, Redseer Strategy Consultants, said: “From TAM scaling, product market fit, to custom solutions that improve profitability and operational efficiency, our industry experts help startups scale to the heights they need and solve their challenges.”
There are approximately 12,000 startups in India, with revenue categories ranging from emerging (less than $10 million), growth stage (1 billion to $100 million) to large (100 million to over $1 billion).
Among them, 95% belong to the emerging category, 3-4% are in the growth stage, and less than 0.5% of the companies are large enterprises.
