Startups optimistic of growth over next 3 yrs

THE STARTUP ECOSYSTEM in the country is past the phase of slow-down and is likely to witness high growth over the next 2-3 years, founders and investors told FE at the Startup Mahakumbh 2025, which started in the Capital on Thursday.

- RAGHAV AGGARWAL & ANEES HUSSAIN

As investors grew cautious after 2021 and 2022, the funding to startups fell in 2023. This brought down valuations for several big players and forced others to clean their books.

"Investors are now showing more confidence in putting money," a founder of a D2C brand told FE. "The deal sizes are smaller and profitability is evaluated but definitely they are coming back," an investor said.

According to a survey released by IT industry body Nasscom with Zinnov at the event, 75% of the founders are increasingly optimistic about their fundraising prospects for 2025. It is significantly higher than 46% in 2023.

Moreover, 99% of the founders surveyed said that their revenues will grow in 2025.

While there is more comfort