Image default

Indian start-ups take 5 yrs to cross $100 mn revenue mark: Redseer

The average time taken by Indian start-ups to cross $100 million in revenue has reduced from 18 years in 2000 to 5 years in 2017, said a report by consulting firm Redseer.

India has about 100 unicorns (a privately held start-up valued at over $1 billion) and 170 soonicorns (a start-up with the potential of being a unicorn). Of these 270 firms, over 40 start-ups in the fintech, e-commerce, and logistics sectors have crossed $100 million in revenue as of FY22, taking anywhere from 5 to 12 years to reach this scale.

Venture capital (VC) has played a central role in helping start-ups scale to this milestone, said the report. VC firms have invested about $143 billion in the start-up ecosystem over the last 15 years (CY08 to CY22). The ecosystem is valued at $804 billion. At current valuations, this translates to approximately 4.5x return for VCs on their investments.

Most start-ups face scaling challenges in their growth journey, the report said. Many belong to niche industries which restrict their total addressable market, while others need help with product-market fit and unsustainable growth.

The challenges that sink start-ups come from poor profitability and bottlenecks in organization, governance, and operations, said the report.

Source link

Related posts

Fintech’s fortunes, DAO dreams, Asia’s reseller revival

Jason Dudley

Drona Aviation’s homegrown nano drones are helping school and college students learn

Jason Dudley

Classplus Backs Test Prep Startup Abhinay Maths

Jason Dudley

VGW inks multi-year sponsorship deal with Ferrari

Jason Dudley

This Vembu-backed healthtech startup is providing blood test-type reports for knees

Jason Dudley

Ocean Supercluster launches initiative to increase Indigenous participation in ocean economy

Jason Dudley

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More