After a tumultuous 2022, this year may bring a much-needed resurgence as Indian startups revisit strategies to emerge stronger
The 30 Startups to Watch series for February brings forth the change in consumer behaviour, although enterprisetech, ecommerce and fintech remain the most prominent sectors at this point
The list also highlights unique business ideas developed around EV, logistics, clean energy, foodtech, gaming and more
The startup ecosystem in India never saw a dull moment, even during a pandemic year or a cyclical downturn, made harsher by geopolitical unrest and macroeconomic headwinds. Of course, it was counterintuitive to assume that Indian startups would be on course for record funding amid the pandemic gloom. But in 2021, they amassed $42 Bn, nearly a 4x jump from the $ 11.5 Bn raised in 2020.
The year 2022 was sombre. As investors went into a wait-and-watch mode due to stagflation fears and VC funding slowed to a trickle, the cash burn rate had to be minimised and profitability needed to go up. Thousands were laid off in the process (even legacy companies and the big tech did the same, citing a sharp slowdown), and many startups were shuttered or acquired. The utopian growth narrative of the previous year suddenly had a hollow ring.