Over two dozen Indian startups with annual earnings surpassing Rs 500 crore demonstrated stronger financial results in FY24, adapting to a difficult funding environment through enhanced business practices.
Several companies like Purplle, Porter, Lenskart, and PhonePe achieved substantial growth while maintaining healthy profit margins. Others prioritized reducing financial losses, showing a clear shift toward sustainable operations.
The trend reflects two distinct approaches: Some firms maintained rapid expansion while enhancing profitability, while others chose moderate growth to minimize losses. This strategic adjustment was particularly noticeable among companies preparing for public listings.
In the fintech sector, major players focused on cost management and financial health. Razorpay saw a 9% revenue increase to Rs 2,501 crore, while PhonePe reduced losses as its revenue jumped 74%. InsuranceDekho achieved profitability with Rs 85.7 crore and total revenue of Rs 785 crore.
Investment platforms showed mixed results. While Groww reported an operational profit of Rs 585 crore, it faced a net loss due to a one-time payment. Zerodha maintained its profitable status with Rs 5,496 crore in net profit on Rs 9,372 crore revenue.
The funding scenario remained challenging, with Indian startups raising $10.9 billion in 2024, slightly higher than 2023’s $9.6 billion, but significantly lower than previous years. This environment pushed companies to focus on unit economics and core business operations.
Looking ahead, regulatory challenges persist, particularly in the fintech sector. The Reserve Bank of India’s stricter lending norms and SEBI’s market speculation controls indicate potential hurdles for startups in FY25.
