Amid a prolonged ‘funding winter,’ Indian startup founders witnessed a significant drop in their earnings in FY2023- 24, with average salaries declining by 25.4%, according to data from 30 prominent tech startups.
From an average of ₹7.3 crore in FY23, founder salaries fell to ₹5.44 crore in FY24. Collectively, 54 founders drew ₹291.5 crore in salaries, a marked reduction from the previous year.
This pay cut reflects broader financial stress across the startup ecosystem. The year saw a dramatic plunge in investments, with startup funding shrinking to $10 billion in 2023, down from $42 billion in 2021 and $25 billion in 2022.
“The funding slowdown, triggered by global geopolitical tensions like the Russia-Ukraine war, has forced startups to focus heavily on cost control,” the report said.
Top Earners Take a Hit Too
- Supam Maheshwari of FirstCry topped the salary charts again, earning ₹103.8 crore. However, this figure was nearly 50% lower than his ₹200.7 crore remuneration in FY23.
- Nikhil and Nithin Kamath of Zerodha followed:
- Nikhil Kamath: ₹33.9 crore
- Nithin Kamath: ₹33.5 crore (down from ₹48 crore last year)
Operational Snapshot of 30 Startups (FY24)
| Metric | Value (₹ crore) |
|---|---|
| Total Operating Revenue | 73,715 |
| Combined Loss of 11 Startups | 4,876 |
| Combined Profit of Others | 7,960 |
Startup Founders: Coping with the Freeze
In some instances, startups in India implemented austerity measures, reducing marketing expenditures, restructuring, retrenchments, and even closing shop. These measures were vital to survival in a year with slight improvement in funding sentiment.
Government’s Response
In an attempt to restore the ecosystem, the government repealed the much-criticized angel tax in the July 2024 Union Budget. While this is a step in the right direction, its effect on halting the investment drought still awaits to be seen.
Also Read: The Ultimate Guide to Boosting Your Startup in India
