05 April 2024 – Although a fantastic tale is also developing, India’s unicorn story may have slowed down, and many startups may be frozen in the financial winter. In 2023, 5,640 companies closed, a staggering 73% less than the year before.
Just 1,514 firms made it to the ‘dead pool,’ the startup industry euphemism for closing down, in 2023, according to statistics from Tracxn. In 2021, 4,424 was the number. A number of businesses, including Zipgo, Niki, GramFactory, Crejo, Fun, FoodyBuddyCherryTin, FrontRow, and Crater. Clubs have ended up in the dead pool in recent years.
Most crucially, Shashank Randev, founder and venture capitalist of early-stage venture capital company 100X VC, told FE that entrepreneurs are now able to design strong business models and avoid errors that were made ten years ago.
Conclusion
Building a business from 2022 to 2023 represents the “coming of age” for entrepreneurs, according to Abhimanyu Bisht, managing partner of proptech venture fund Spyre. Those that made it have only grown stronger thanks to sound business plans and improved unit economics. In the next two years, he said, “new ideologies of founders will build startups with profitability hard-coded within and an established, long-term vision for their business.”
