Listed Indian Startups To Reach 100 In Few Years: Rajan Anandan

SUMMARY

Speaking during the inaugural session of Startup Mahakumbh, Anandan said the number of listed Indian startups will increase 5X over the next 7-8 years

The managing director of Peak XV Partners said that Indian startups are likely to bag $8-$12 Bn funding in the current calendar year

He estimated that the venture capital firms in the country are sitting at a dry powder of about $20 Bn as of today

At a time when the startup IPO market is showing signs of resurgence, Peak XV Partners managing director Rajan Anandan said that the number of listed startups in the country can reach the 100 mark over the next few years.

Speaking during the inaugural session of Startup Mahakumbh, Anandan said that the number of Indian startups listed on the bourses are likely to rise 5X to 100 in the next 7-8 years.

He also dismissed concerns around the ongoing funding winter, saying that Indian startups are likely to get $8-$12 Bn funding in the current calendar year.

“This year we are well on track to (net) $8-$12 Bn. We are going to have an ecosystem which is going to have $10-12 Bn for a few years and it will go at the natural pace that it should,” Anandan said.

He estimated that the venture capital firms in the country are sitting at a dry powder of about $20 Bn as of today.

Talking about the fall in funding last year, Anandan said the numbers seemed low because of the mammoth funding numbers of 2021 and 2022. He said the funding raised by the Indian startups during those two years was equivalent to what they would have normally raised in six years.

“In terms of funding, $10 Bn is enough to build a healthy, robust startup ecosystem in the country. As of now, the funding market is showing a healthy growth trajectory with the seed and Series A funding market taking the front seat,” he added.

It is pertinent to note that Anandan made similar comments during Inc42’s MoneyX last year, when he said there was no funding winter and the funding raised by startups seemed low because of the big numbers of the previous two years.

The funding raised by Indian startups plummeted to about $10 Bn in 2023, compared to $25 Bn in 2022 and $42 Bn in 2021, as per Inc42’s Indian Tech Startup Funding Report 2023.

The ongoing Startup Mahakumbh is being touted as one of the biggest startup events in the country. It aims to bring together startups, investors, incubators, accelerators and industry leaders from several sectors under one roof to foster innovation, collaboration, and knowledge sharing.

Speaking at a session during the event, Zomato CEO and founder Deepinder Goyal highlighted the importance of innovation for startups and said that no business model can last for more than a decade today amid the rapid evolution of technology.