India Sees Rise in Operator-Turned-Founders as Ecosystem Matures
A recent analysis of Tracxn data, commissioned by early-stage venture capital firm RTP Global, highlights a significant rise in operator-led startups in India. Between 2022 and 2024, 238 former operators—seasoned professionals who previously scaled businesses—transitioned to founding their own ventures. This surge is attributed to factors such as liquidity from ESOP buybacks, a desire for new challenges, returning talent from the US, and the effects of mass layoffs. Faster and Better? The data reveals that operator-led startups are achieving seed funding milestones faster, raising larger seed rounds, and securing stronger investor backing, particularly in capital-intensive and regulated sectors where execution expertise is critical. In 2024 alone, these startups raised $101 million—a 243% increase from 2023 and nearly double the $52.9 million raised in 2022. Operator-led ventures accounted for 11.5% of all venture funding in 2024, up from 6% the previous year. At the seed stage, operator-led startups founded in 2022 secured 11.2% of seed rounds, compared to 4.4% for other Indian tech startups. This trend strengthened in 2023 (12.6% vs 2.7%) and remained steady in 2024 (8.1% vs. 1.5%), despite tougher funding conditions. The average seed round for operator-turned-founders between 2022 and 2024 was $1.56 million, 1.2 times larger than the $1.3 million raised by other startups. Graduating to Series A Operator-founders are also advancing to Series A rounds at significantly higher rates. Among startups founded in 2022, 7.1% of operator-led ventures reached Series A, compared to just 0.3% of other startups. This pattern continued in 2024, with 5.4% versus 0.1%. Although their average Series A round size ($8.2 million) was slightly smaller than the rest of India tech ($9.6 million), operator-led startups commanded much higher valuations—$38.5 million compared to $21.8 million—resulting in less dilution and greater leverage. Sector Picture Sector-wise, fintech and insurtech attracted the most capital ($89 million between 2022 and 2024), followed by energy and sustainability ($40.3 million), and supply chain and logistics tech ($30 million), reflecting the ongoing need for operational efficiency. In terms of startup volume, five sectors dominated operator-led ventures: fintech and insurtech, e-commerce and retail tech, edtech, enterprise SaaS, and healthcare and life sciences—areas where founder experience and execution skills accelerate early success. “We’ve always believed in backing exceptional entrepreneurs,” said Nishit Garg, investment partner at RTP Global. “Many operator-founders bring a pragmatic mindset shaped by real-world experience that helps them scale efficiently. This analysis broadens our understanding of diverse founder journeys.”Neha Singh, co-founder and CEO of Tracxn, added, “The startup ecosystem is constantly evolving, and founder profiles are diversifying.”
In the past two years, over 200 people who aced operations and scaled businesses have gone on to found their own startups, study finds.
In the past two years, over 200 people who aced operations and scaled businesses have gone on to found their own startups, study finds.
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Bala is a journalist covering Indian tech companies and startups from Bengaluru.