June 15, 2025: As the funding slowdown continues to reshape business priorities, a growing number of startups are proving that profitability is no longer a far-off milestone but a near-term goal. In the financial year ending March 2025 (FY25), 14 out of 20 prominent new-age tech companies reported a combined net profit of ₹2,300 crore, reflecting a clear shift from cash-burning growth to disciplined operations and sustainable expansion.
This evolution in strategy comes in response to the ongoing “funding winter,” a capital crunch that began in 2022. Unlike the boom of 2021, where startups expanded rapidly with investor backing, the last few years have forced companies to reduce losses, improve margins, and focus on efficiency. For many, that has meant cutting down on promotional spends, limiting workforce expansion, and revisiting operational costs.
Indian Startups Financial Snapshot: FY25 Highlights
The 20 startups tracked reported a cumulative operating revenue of ₹85,830 crore, marking a 20% increase over FY24. While six startups continued to report losses, they were significantly lower than the previous year — an encouraging sign that the ecosystem is on a healthier path.
Here’s a look at some key performances of Indian Startups
- Zomato led the chart with ₹20,243 crore in revenue and a net profit of ₹527 crore, helped by its quick commerce segment.
- Swiggy, though still in the red with a ₹3,116 crore loss, grew revenue by 35%, indicating strong demand despite rising costs.
- Delhivery turned profitable for the first time, posting ₹162 crore in net profit on ₹8,932 crore revenue.
- CarTrade saw its profit rise nearly 630% to ₹145 crore.
- Awfis, a coworking startup, moved from loss to a ₹68 crore profit.
- FirstCry, BlackBuck, and IndiaMART also posted improved earnings through a mix of higher revenue and cost efficiency.
India’s startup sector is learning to grow smarter, and more sustainably
The movement toward profitability wasn’t just about cutting costs, it was also about finding balance. Startups invested more selectively, retained their high-performing business segments, and slowed down on non-core experiments. For example:
- Ola Electric reduced its spending but still posted a higher loss due to lower revenue.
- Paytm, facing regulatory and operational hurdles, cut its losses by more than half.
- Mamaearth and Nazara saw profits dip, indicating that margin pressure is still a challenge in competitive sectors.
On the other hand, lean tech and SaaS-based companies such as Unicommerce, TBO Tek, and Zaggle reported healthy profits, suggesting that asset-light and B2B models may be better suited for this more cautious funding climate.
A Broader Trend in Indian Startups
What stands out most in the FY25 numbers is the maturity in how startups are approaching growth. Unlike previous years where revenue growth was often paired with ballooning losses, many are now choosing steady expansion with profitability in sight.
This shift could be a long-term positive for India’s tech ecosystem. As venture capital becomes more selective, businesses with solid unit economics and realistic projections are likely to be favored. Moreover, the move toward profitability positions these startups better for IPOs, acquisitions, or global expansion in the future.
If the current trend continues, FY26 could see an even higher number of profitable startups, especially as more founders internalize the lessons of fiscal discipline. With the ecosystem moving from experimentation to execution, India’s startup story is entering a more sustainable chapter, one where profit is no longer a postscript, but the plan.
