VALUE CREATION OVER VALUATION

For the Indian startup ecosystem, 2023 was challenging, with a much-anticipated rebound projected for 2024. Yet, halfway through the year, only five unicorns have emerged. As the IPO wave gains momentum, is the ecosystem poised for a stronger finish than expected?

- Resham Suhail

AFTER THE FRENZY of billion-dollar valuation, 2023 delivered a sobering blow to the startup ecosystem.

Several startups shuttered, many faced funding droughts and others rolled back their IPO plans because of unfavourable market conditions.

The key takeaway? Over-reliance on bloated valuations would not ensure longterm viability. BlackRock slashes Byju's valuation by 95 per cent to $1 billion, Pine Labs and Swiggy face valuation cuts by US-based investor Invesco and other such cases are lessons. This market correction forced founders to shift their focus towards resilience, profitability and sustainability. Consequently, 2024 has witnessed fewer unicorns.

However, a more measured approach from entrepreneurs now attuned to the importance of building solid, valuedriven businesses rather than chasing quick capital and inflated valuations.

India's Upward Graph

In 2024, unicorns like Porter, Rapido and Krutrim demonstrated that a robust growth strategy can triumph over adverse market conditions. Moreover, a key constant is that startups with sound fundamentals and no operational flaws continue to attract investor interest.