India’ startup ecosystem attracts cumulative funding of more than USD 118 billion: CII
As the ecosystem matures, it is entering a defining phase marked by a structural transition from valuation-led growth to value-driven, innovation-led development
India’s startup ecosystem, which has established itself as the world’s third-largest startup hub with over 120 unicorns and a combined valuation exceeding USD 390 billion, has attracted cumulative funding of more than USD 118 billion.
According to the White Paper released by the Confederation of Indian Industry (CII) on unicorn policy, the country’s startup ecosystem is one of the most dynamic globally, supported by robust digital public infrastructure, a vibrant entrepreneurial base and a progressively enabling policy environment.
Over the past decade, it has witnessed significant expansion in scale, diversity and innovation capability, positioning startups as key drivers of economic growth, employment generation and technological advancement.
The report underscores that as the ecosystem matures, it is entering a defining phase marked by a structural transition from valuation-led growth to value-driven, innovation-led development.
This evolution signals a shift in focus toward sustainable unit economics, operational discipline, deeper innovation capabilities and long-term global competitiveness.
Chandrajit Banerjee, director general, CII, said India’s startup ecosystem has reached an important inflection point. While the past decade has been characterised by rapid expansion and strong investor interest, the next phase of growth must be anchored in building enterprises that are sustainable, resilient and globally competitive.
The report further highlights the increasing complexity of operating environments across high-impact sectors such as fintech, electric mobility, urban logistics, drones and emerging deep-tech domains.
These sectors not only present significant opportunities for innovation but also contribute to strengthening India’s manufacturing capabilities, improving supply chain resilience and advancing its digital leadership.
At the same time, startups in these domains face evolving regulatory and operational challenges. The report emphasises the need for policy frameworks that are responsive, balanced, and aligned with the pace of technological advancement, while maintaining appropriate safeguards and governance standards, the report outlines.
Furthermore, the report notes that the next phase of India’s startup journey must be anchored in value creation outcomes such as profitability, efficiency, job generation, technological leadership and global market expansion.
This transition is essential for building enterprises that are not only high-growth but also resilient and sustainable over the long term.
India has the ambition, talent and momentum to lead the next wave of global innovation. What is required now is a policy ecosystem that is responsive, forward-looking and aligned with the needs of modern enterprises,” said Kris Gopalakrishnan, Chairman, CII’s Centre of Excellence for innovation, Entrepreneurship and Startups.
