Investors are going back to the same list of startups they have already backed to write bigger cheques leading to new unicorn sightings becoming rare. Only Perfios and Ola founder Bhavish Aggarwals Krutrim AI have become unicorns so far in 2024, and the number was the same for the whole of 2023.
Startups funding in India declined by 40% in 2024 from January to March compared to the previous year, totaling $2 billion. Two new unicorns emerged in 2024. Investors are optimistic about the startup ecosystem s potential for rapid recovery and growth.
Industry executives view this as a notable uptick after the prolonged downturn in funding for technology ventures in India since 2021. While there is a considerable revival in large-size deals, the interest is largely in select good assets which have withstood post-pandemic challenges and continued to grow despite cutting down burn.