India Crosses 2 Lakh DPIIT-Recognized Startups, Marking a Significant Milestone in Its Innovation Journey

India’s startup ecosystem has reached a major milestone with the country officially crossing 2 lakh DPIIT-recognized startups, signalling the steady and structural expansion of entrepreneurial activity across sectors and geographies. According to the latest figures available on the Startup India portal, India now has 2,00,021 recognized startups, a sharp rise from just 350 in 2014, and a clear indicator of how deeply entrepreneurship has taken root in the country over the last decade.

This growth reflects the cumulative impact of policy reforms, improved digital infrastructure, and increasing participation from young founders across urban and non-urban regions. The achievement also strengthens India’s position as the third-largest startup ecosystem globally, and one of the fastest-growing, backed by a combination of government-led initiatives and a broader cultural shift toward innovation and risk-taking.

At the same time, the government-led BHASKAR (Bharat Startup Knowledge Access Registry) platform has crossed 6.37 lakh users, emerging as a large and active digital network connecting founders, mentors, investors, and other ecosystem participants. The steady rise in platform adoption further highlights how India’s startup ecosystem is becoming more formalized, digitally integrated, and accessible to a wider base of entrepreneurs.

From 350 to 2,00,000: India’s Decade of Entrepreneurial Expansion

India’s journey from 350 recognized startups in 2014 to more than 2 lakh in 2025 represents one of the most significant entrepreneurial transformations in recent global history. The Startup India mission, launched in 2016, helped formalize and accelerate this momentum. Over the past 11 years, India has averaged one new startup every hour, reflecting both the pace and consistency of innovation emerging across the country.

The data also captures how inclusive India’s startup movement has become.

• 48% of recognized startups now have at least one woman director

• The ecosystem has generated 18 lakh+ direct jobs

• 40% of new startups originate from Tier-2 and Tier-3 cities

• Nearly 32% of college graduates now prefer entrepreneurship over traditional jobs

This shift reflects a deep democratization of entrepreneurship, with far more regions, demographics, and socio-economic groups participating in the innovation economy than ever before.

Regulatory Overhauls That Enabled the Surge

Much of this rapid expansion can be traced back to policy reforms undertaken since 2014. Over the last decade, the government has streamlined regulations, reduced compliance burdens, and opened previously restricted sectors to private innovation.

Key reforms include:

• Repeal of 1,562 obsolete laws

• Removal of over 40,000 compliance burdens

• Liberalization in sectors such as space, drones, geospatial services, and defence

• Introduction of faceless assessments and simplified FDI norms

• 55 regulatory reforms introduced since 2016 to ease business operations

Startups also benefit from several targeted incentives:

• Self-certification under 12 labour and environmental laws

• Tax exemptions for eligible entities

• Fast-track exit within 90 days, compared to the usual 180

These measures have significantly improved ease of doing business, reduced friction for early-stage founders, and created a more predictable regulatory environment.

A Push Toward Organized Startup Credit

In a major development for financial access, the Department of Financial Services (DFS) has launched the Startup Common Application Journey on the Jan Samarth Portal. This initiative provides founders with a single-window platform to apply for credit across all Public Sector Banks (PSBs).

The unified digital gateway is designed to:

• Streamline loan application processes

• Reduce overall processing time

• Improve credit accessibility for early-stage ventures

• Strengthen India’s institutional funding pipeline

This marks an important step in recognizing startup credit as a mainstream financial product rather than a niche category.

India Emerges as the Second-Largest Startup Hub: Tracxn

Complementing the DPIIT data, a Tracxn report positions India as the world’s second-largest startup hub, with 598,573 companies mapped across the ecosystem.

Key Tracxn Indicators

• Total startups: 599K

• Funded startups: 32.5K

• Total funding raised: $597B

• Unicorns: 123

• IPOs: 6,175

• Acquisitions: 4,941

• Women-founded companies: 22,436

• Investors active in India: 121,867

In just the last five years:

• 85,043 startups were launched

• $14.4B was raised

• 2,880 startups secured early-stage funding

• 853 raised late-stage rounds

The ecosystem also saw 106,149 shutdowns, a typical indicator of churn and maturity in an innovation-driven market.

India’s Leading Startups (Based on Tracxn Score)

1. Flipkart – E-commerce marketplace

2. Swiggy – Food delivery & D2C commerce

3. Groww – Investments and trading

4. Lenskart – Eyewear retail

5. Nykaa – Beauty & personal care retail

These leaders reflect India’s cross-sector innovation capabilities, spanning consumer internet, fintech, logistics, and retail.

Funding Trends in 2025 (Till November)

The funding landscape in 2025 shows a mixed picture.

• India raised $15B across 1,790 equity rounds so far

• Funding is 18% lower compared to the same period in 2024

Despite the slowdown, several deals highlight continued investor confidence in emerging categories.

Recent Key Funding Rounds

• Star Air – Series B, $16.9M (Nov 16, 2025)

• Codeyoung – Series A, $2.5M (Nov 14, 2025)

• ExtraMile – Seed, $500K (Nov 14, 2025)

• Ayka Control Systems – Seed, $11M (Nov 13, 2025)

• Alive – Seed, $677K (Nov 13, 2025)

What the Future Looks Like for Indian Startups

With rising digital adoption, growing female participation, expanding activity from smaller cities, and steady investor interest, India’s startup landscape is positioned for continued momentum.

The combination of:

• A large digital-native population

• Progressive governance

• Deepening capital markets

• A maturing innovation culture

creates strong tailwinds for sectors like AI, deep tech, climate tech, defence tech, space technology, and SaaS.

Crossing the 2 lakh figure is not just a numerical milestone — it reflects the structural strength of India's startup ecosystem and sets the stage for its next phase of expansion.