Indian Startup Financial Performance in FY24: Revenues Rise But Losses Persist

As the funding winter continued to impact the Indian startup ecosystem in the financial year 2023-24, many established companies worked towards achieving profitability by cutting costs and improving operational efficiencies. According to an analysis of 49 major startups that have published their financial statements for the past fiscal year so far, over a third of them reported profits. However, losses continued to plague several others despite their efforts to rein in expenditures.

The analysis, compiled by business news portal Inc42, revealed an overall trend of rising revenues but varying financial performances across sectors. Of the 49 startups tracked, 28 ended FY24 in the black with cumulative profits of Rs. 3,603 crores. However, the remaining 21 companies posted a total loss of Rs. 10,115 crores, with electric vehicle makers Ola Electric and Paytm accounting for more than 30% of this figure.

In terms of top line growth, the group reported aggregate operating revenues crossing Rs. 1.27 lakh crores for the year ended March 2024, up from Rs. 1.11 lakh crores in the previous fiscal. Leaders like Zomato, Nykaa and Ola Electric posted revenue jumps of 70-90% on the back of strong demand. Profitability also improved for several players including Honasa Consumer, owner of D2C brand MamaEarth, fintech startup Go Digit and payment gateway provider PB Fintech.

While giants like Paytm, Ola Electric and Swiggy managed to reduce their losses substantially year-on-year through cost optimization, losses for others widened due to rising expenses. Players in logistics, travel and edtech recorded losses as business recovery remained uneven. The analysis reflects how the difficult funding environment compelled startups to focus on strengthening fundamentals and charting a path to sustainability through financial discipline. Going forward, the ability to balance growth and profit objectives will be crucial for their long-term prospects.