 "Unicorn boom or bust: India's best and worst performing startups in 2024")
India's startup ecosystem has been a focal point of innovation and entrepreneurial spirit, especially in 2024. As the country continues to solidify its position as one of the largest startup hubs globally, the ecosystem is marked by both remarkable successes and notable failures. This article delves into the best and worst performing startups in India, analysing their journeys, market strategies, and the factors contributing to their performance.
Best performing startups in India
1. Zepto: Redefining quick commerce in India
Founded in 2021 by Aadit Palicha and Kaivalya Vohra, Zepto has emerged as a leader in India’s quick commerce sector, delivering groceries in just 10 minutes. The startup’s rapid rise is attributed to its innovation, strategic funding, and deep market insight. By 2024, Zepto boasts a $5 billion valuation, following a $350 million funding round, with an IPO planned for 2025.
Both founders, university dropouts from Stanford (Palicha) and Harvard (Vohra), identified the potential in grocery delivery during the pandemic. Their earlier venture, KiranaKart, laid the foundation for Zepto’s success. Now India’s youngest billionaires, Vohra and Palicha have net worths of Rs 3,600 crore and Rs 4,300 crore, respectively.
Zepto commands 28 per cent of the quick commerce market, operating 350 dark stores across major cities, with plans to double this by March 2025. It has outpaced competitors like Swiggy Instamart and Blinkit, driven by strategic investments and an aggressive expansion strategy.
The company raised over $1 billion in 2024, including a $340 million round, enabling scaling operations and market penetration. Backing from investors like General Catalyst and Dragon Fund adds financial strength and credibility, positioning Zepto for its IPO.
Zepto is also diversifying revenue streams by tapping into advertising, enhancing profitability and sustainability. Its innovative model and rapid growth signal its potential to revolutionise India’s e-commerce landscape.
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2. Blinkit: Revolutionising India’s quick commerce sector
Blinkit, formerly known as Grofers, is a trailblazer in India’s quick commerce sector. Launched in December 2013 by Albinder Dhindsa and Saurabh Kumar, the startup transformed grocery delivery by pioneering ultra-fast deliveries and leveraging local retail partnerships.
Initially focused on traditional grocery delivery, Blinkit piloted its services in Delhi-NCR before expanding nationwide. In 2021, the company pivoted to quick commerce, introducing dark stores — strategically placed warehouses enabling 10-minute deliveries. This shift marked a major innovation, leading to its rebranding as Blinkit on December 13, 2021. By then, the company was handling 125,000 daily orders across 30 cities.
As of 2024, Blinkit operates 791 dark stores, fulfilling 400,000 daily orders. Its valuation stands at $13 billion, with a 46 per cent market share in quick commerce — outpacing competitors and even Zomato’s core food delivery business.
A pivotal moment came in June 2022, when Blinkit was acquired by Zomato for $568 million in an all-stock deal. This acquisition enabled Zomato to diversify its services while providing Blinkit access to greater resources for expansion.
Blinkit’s innovative model has redefined customer expectations in India’s grocery sector. By combining rapid deliveries with operational efficiency, it has set new benchmarks for the quick commerce ecosystem, cementing its position as a market leader.
3. Sprinto
Founded in 2020 by Girish Redekar and Raghuveer Kancherla, Sprinto has emerged as a leading player in security compliance automation. Valued at $104 million as of April 2024, the Bengaluru-based startup recently raised $20 million in Series B funding, bringing its total funding to $31.8 million.
With over 1,000 clients in 75 countries and a workforce of around 200, Sprinto streamlines compliance processes for businesses, ensuring efficiency and scalability. The founders’ experience with Recruiterbox has shaped their vision to simplify compliance, particularly for India’s quick commerce ecosystem.
Sprinto aims to strengthen its foothold in the US and European markets through key initiatives:
Enhanced R&D
The $20 million funding will support advancements in AI-driven compliance automation, catering to complex international requirements.
Strategic partnerships
Collaborations, such as with Sopra Steria North America, enable Sprinto to tap into broader client networks and markets.
Demand-driven expansion
Rising global compliance needs present a lucrative opportunity for growth.
Customer-centric strategy
By focusing on client satisfaction, Sprinto seeks to foster loyalty and drive referrals.
With its innovative approach and strategic focus, Sprinto is poised to lead in the growing enterprise governance, risk management, and compliance sector globally.
4. GrowthX
GrowthX, co-founded by Abhishek Patil and Udayan Walvekar in 2019, is one of India's top-performing startups of 2024, ranking fifth on LinkedIn's list of emerging companies. Valued at $9.06 million, it helps early-stage internet companies scale revenue through mentorship and strategic programs. With 191 employees and a thriving community of over 3,500 members, GrowthX connects founders and leaders to foster collaboration and innovation.
Patil, a former product management expert at CRED and Swiggy, and Walvekar, a fintech professional from Razorpay, provide strong leadership.
GrowthX’s community-centric approach, networking events, and high-quality mentorship have driven its rapid growth and influence in India's vibrant startup ecosystem, the world’s third-largest. The company’s focus on empowering entrepreneurs positions it as a pivotal force in shaping India’s digital economy.
5. BiofuelCircle
Founded in June 2020, BiofuelCircle has quickly emerged as a top-performing Indian startup, revolutionising the bioenergy supply chain. Its digital platform connects farmers, biofuel producers, and industrial consumers, addressing critical issues like agricultural waste management and promoting sustainable energy. By creating an efficient biomass marketplace, BiofuelCircle plays a pivotal role in India's transition to renewable energy.
Valued at $32.5 million in 2024, the startup raised Rs 45 crore in its latest funding round, bringing total funding to $9.13 million across five rounds. Operational in Maharashtra, Gujarat, Punjab, Uttar Pradesh, and Tamil Nadu, it connects over 12,000 farmers, facilitating monthly transactions of 25,000 metric tonnes of biomass. Plans are underway to expand to 10 states with 35 advanced biomass warehouses by March 2025.
Recognised by LinkedIn as a top startup, BiofuelCircle is driving innovation and sustainability in India’s bioenergy sector.
Worst performing Indian startups in 2024
1. Byju's
Byju's, once India’s leading edtech startup, has seen a rapid decline in 2024, marred by financial instability and looming insolvency. Founded in 2011 by Byju Raveendran and Divya Gokulnath, the company transitioned from offline tutoring to online education, gaining prominence with its learning app in 2015. Byju's became a unicorn in 2018 and reached a $22 billion valuation in 2022, emerging as India’s most valuable startup.
Despite significant revenue growth — rising from Rs 2,428 crore in FY21 to Rs 5,298 crore in FY22 — the company faced staggering losses, with net losses ballooning to Rs 8,245 crore in FY22. This disconnect between revenue and losses raised concerns among investors. By 2024, BlackRock slashed Byju's valuation to $1 billion, a 95 per cent drop from its peak, while Prosus marked down its stake by 86 per cent, reflecting reducing confidence.
Post-pandemic, as schools reopened and online learning demand fell, Byju's struggled. Its $1 billion acquisition of Aakash Educational Services added substantial debt without yielding returns. In July 2024, the National Company Law Tribunal (NCLT) began insolvency proceedings after Byju's failed to repay Rs 1.59 billion owed to the BCCI. This marked a critical juncture for the company, highlighting the risks of unsustainable growth strategies.
2. Koo
Koo, an Indian microblogging app launched in early 2020 by Aprameya Radhakrishna and Mayank Bidawatka, aimed to rival Twitter (now X) with a local touch. Its popularity surged during the Covid-19 pandemic, especially after winning the Indian government's AatmaNirbhar App Innovation Challenge. By mid-2022, Koo boasted nearly 10 million monthly active users, backed by over $65 million in funding from investors like Tiger Global and Kalaari Capital. Its valuation peaked at $285 million.
Despite early success, Koo's financial struggles led to its shutdown in 2024. Between FY20 and FY22, it incurred losses exceeding Rs 244 crore, generating a meagre Rs 21 lakh in revenue. Attempts to raise a Series C funding round failed amid a broader economic downturn, or "funding winter", as investors deemed its financials unpromising. High operational costs further strained the startup, forcing difficult decisions.
Acquisition talks with companies like Dailyhunt collapsed in late 2023, leaving Koo without viable paths to sustain operations. On July 3, 2024, Koo announced its closure. The founders expressed regret but cited financial realities as the reason behind the decision.
3. DealShare
DealShare once thrived in India’s e-commerce market. Targeting Tier-II and Tier-III cities, its group-buying model for discounted grocery shopping gained traction, helping the startup secure $393 million in funding from investors like Tiger Global and Unilever Ventures. By January 2022, it achieved unicorn status with a valuation of $1.7 billion.
However, 2024 marked a sharp decline for the company, with revenue plummeting by 75 per cent year-on-year. Operating revenue fell from Rs 1,963 crore in FY23 to Rs 499 crore in FY24, while overall revenue, including other income, dropped 71 per cent to Rs 600 crore. The decline stemmed largely from the closure of B2B operations, which once contributed significantly to its earnings. A strategic shift to B2C sales lacked clarity, exposing the company to intense competition and operational inefficiencies.
Amid these challenges, DealShare slashed costs by 70 per cent to Rs 768.1 crore, cutting procurement and employee expenses. Yet, its cash reserves dwindled to just Rs 10.8 crore by FY24-end, down from Rs 107.5 crore a year earlier. Leadership turmoil aggravated the situation with co-founders Vineet Rao and Sankar Bora stepping down during restructuring efforts.
DealShare's trajectory from a promising startup to one of India's worst-performing companies in 2024 reflects a mix of strategic missteps, market challenges, and leadership instability.
4. Bluelearn
Bluelearn, an edtech startup founded in 2021 by BITS Pilani alumni Harish Uthayakumar and Shreyans Sancheti, aimed to empower students from Tier-II and Tier-III colleges in India. Initially launched as a Telegram group for sharing notes and discussions, it evolved into a platform for skill development, networking, and connecting with industry experts.
The startup quickly gained traction, amassing over 250,000 members globally and raising $4 million in funding from investors like Elevation Capital, Lightspeed India, and Titan Capital. Bluelearn’s funding journey included a $450,000 pre-seed round in June 2021 and a $3.5 million seed round in August 2022, achieving a peak valuation of $10.8 million.
However, in July 2024, Bluelearn ceased operations, returning 70 per cent of its raised capital. The founders cited challenges in scaling their community-based model, monetising effectively, and sustaining user engagement, despite operating conservatively. Their efforts highlighted the complexities of balancing growth and profitability in edtech.