Operator-led startups outpace peers in funding speed and deal size

A Tracxn report commissioned by RTP Global finds operator-led startups outperform others in funding speed, size and Seed-stage success across 2022-24 in India

There is a rising momentum of operator-led companies in India’s startup ecosystem, as 238 former operators transitioned from scaling businesses to founding their ventures between 2022 and 2024.

 

Tracxn data, commissioned by early-stage startup investor RTP Global, reveals that operator-led startups outperform their peers in terms of funding speed, size, and success rates. 

 

As of March 20, 2025, 11.2 per cent of operator-led startups founded in 2022 had reached the Seed stage, compared to 4.4 per cent across the broader ecosystem. The momentum continued for operator-led startups founded in 2023 (12.6 per cent vs 2.7 per cent) and 2024 (8.1 per cent vs 1.5 per cent). 

The report adds that the surge is likely driven by a blend of factors, including liquidity from ESOP buybacks, a desire for fresh challenges, returning US talent, and the impact of mass layoffs.

 

OPERATOR-LED STARTUPS 

 

2024

2023

Total Investment

$101 Mn

$29 Mn

Overall Startup Funding 

11.5%

6%

 

 

OPERATOR-LED STARTUPS V/s REST OF INDIA TECH 

 

Operator-led Startups

Broader Tech Ecosystem

Raising In Seed Round

Within 12 Months

Within 14 Months

Seed Round Funding (Avg)

$1.56 Mn

$1.34 Mn

Seed Round Valuations

$4.98 Mn

$4.48 Mn

Series A Funding (Avg)

$8.2 Mn

$9.6 Mn

Series A Valuations

$38.5 Mn

$21.8 Mn

 

*Data as of 20 Mar 2025

 

Time period: Between 2022 and 2024 

FUNDING RACE: OPERATOR-LED STARTUPS 

 

Year

Stage

Operator-led Startups

Broader Tech Ecosystem

2022

Funding

19.4%

7.4%

2022

Seed Stage

11.2%

4.4%

2022

Series A 

7.1%

0.3%

 

Year

Stage

Operator-led Startups

Broader Tech Ecosystem

2023

Funding

13.6%

4.9%

2023

Seed Stage

12.6%

2.7%

2023

Series A 

1%

0.2%

 

Year

Stage

Operator-led Startups

Broader Tech Ecosystem

2024

Funding

13.5%

2.3%

2024

Seed Stage

8.1%

1.5%

2024

Series A 

5.4%

0.1%

 

OPERATOR-LED STARTUPS: SECTOR BREAKUP

 

Sector

% of Startups

Fintech & Insurtech

16.4%

E-commerce & Retail-tech

11.3%

Edtech & Learning

8.8%

Enterprise Saas

7.1%

Healthcare & Life Sciences

6.7%

 

OPERATOR-LED STARTUPS: FUNDING HOTSPOTS

 

Sector

Total Funding Amount

Fintech & Insurtech

$89 Mn

Energy & Sustainability

$40.3 Mn

Supply Chain & Logistics 

$30 Mn

  *Time period: Between 2022 and 2024