Experts anticipate that India’s startup ecosystem will attract $600 billion in alternative investments over the next three years. Speaking at the launch of the Centre for Financial Markets (CFM) by IMT in Mumbai last week, they highlighted that this capital injection is expected to drive innovation, support entrepreneurship, and create a more conducive environment for new ventures.
Atish Chattopadhyay, Director of IMT Ghaziabad, stated that projections indicate over $600 billion in private equity and venture capital (PE/VC) investments in the coming years, positioning the startup ecosystem for significant growth.
He further noted that this amount represents nearly 13% of the estimated $4.7 trillion—including government investments, corporate retention, PE/VC funding, corporate debt, IPOs, and other sources—required to achieve a $5 trillion economy by the financial year 2027.
However, Indian unicorn startups have witnessed a steady decline in founder-held stakes over the past six years amid a challenging funding environment. Data from Tracxn reveals that the median founder stake in unicorn startups has fallen from 24.6% in 2018 to just 13% in 2024.
This trend comes as multiple startup founders have resigned from their roles, citing market pressures, industry challenges, or new entrepreneurial pursuits.
“In a tough funding environment, if the choice is between diluting ownership to raise fresh capital or letting the business shut down, most founders opt for the former,” said Sandeep Murthy, Managing Partner at early-stage venture capital firm Lightbox.
