Mumbai: India is witnessing an unprecedented boom in its startup ecosystem, emerging as the fastest-growing startup economy in the world. According to Dr. Apoorva Ranjan Sharma, Co-Founder of Venture Catalysts and 9Unicorns, the country currently has 1,70,000 registered startups and is on track to reach one million startups in the next seven years if the current growth rate continues.
Speaking on the sidelines of TiEcon 2025 in Mumbai, Dr Sharma said, "The venture capital landscape is also expanding significantly, with the number of VC funds increasing from around 200-500 to 1,500 in recent years. Additionally, India has already produced 130 unicorns, with more than 1,000 potential unicorns emerging, signaling immense growth potential."
Despite this rapid expansion, Dr. Sharma believes that the startup ecosystem has only achieved 10-15% of its true potential and expects the next phase of growth to be marked by greater institutionalization and value creation. "The ecosystem is now 10-12 years old, and the next step will involve unlocking significant value. Institutionalization will accelerate, leading to rapid expansion," he stated.
Rise of Startups from Tier 2 and Tier 3 Cities
Dr. Sharma highlighted that 40% of Indian startups originate from Tier 2 and Tier 3 cities, proving that innovation is no longer confined to metro hubs. "Pune is a major technology hub, especially in AI, and similar success stories are emerging from smaller towns. While the investor ecosystem in these cities is still maturing, the number of angel investors is increasing. Currently, India’s startup ecosystem thrives in 14 cities, with unicorns in 12 of them. By 2030, at least 50 cities will have strong angel networks," he explained.
Using Surat as an example, he noted that the city had no angel investment networks in 2017, but today, it boasts four active angel networks, proving that investor ecosystems in smaller cities are evolving rapidly. "We are collaborating with Pune Angels, a local investment network, and plan to enhance funding opportunities in the city. Pune needs at least 1,000 angel investors, and we are committed to expanding investment avenues here," he affirmed.
Encouraging budding entrepreneurs, Dr. Sharma said, "Silicon Valley created OpenAI, but Indian cities like Pune also have the tech talent to build something equally transformative. AI is revolutionizing industries, boosting efficiency, and reshaping businesses.