The Indian startup ecosystem has witnessed a massive transformation in its operational ethos and strategic priorities over the past few years. The onset of the funding winter in 2022, following the funding boom of 2021, brought the biggest change.
As funding dried up, many Indian startups had to shut shop or resort to mass layoffs to extend their runway and slash cash burn. Having become accustomed to readily available capital, new-age tech companies were compelled to confront the harsh realities of unit economics and operational efficiency.
But as they say, adversity breeds resilience. Companies quickly pivoted from their earlier mantra of “growth at all costs” to achieving profitability at the earliest. High promotional and marketing expenses, exorbitant pay hikes, and overhiring – once a common norm – were curtailed as the focus moved to bottom lines.
These efforts to trim losses and improve operational efficiency was evident in the financial statements of Indian startups for the fiscal year 2023-24 (FY24). While just 36 of the 146 startups posted profits in FY23, the number improved to 45 (out of 112) in FY24.
This trend is likely to continue in FY25 as well, with the number of Indian startups posting profits and cutting down losses expected to increase.
To keep you up to date with the financials of new-age tech companies and provide their key numbers at one place, we at Inc42 have launched the FY25 Financial Tracker. The tracker would be updated periodically to help you deep dive into the financials of Indian startups.
Currently, 31 new-age tech companies are part of this tracker. In FY25, these 31 companies reported an operating revenue of INR 1.05 Lakh Cr, up 23% from INR 76,230 Cr in FY24. While nine of them reported a cumulative net loss of INR 7,410 Cr in FY25, 22 companies reported a cumulative net profit of INR 3,312.4 Cr.
