Operator-founders 3X more likely to raise seed rounds than rest of India’s tech startup ecosystem

New research from Tracxn, commissioned by RTP Global, reveals operator-led startups outperform peers in funding speed, size and success rates

Bengaluru, India: 11th June 2025: A new analysis of Tracxn data, commissioned by early-stage venture capital firm RTP Global, reveals the rising momentum of operator-led startups in India. Between 2022 and 2024, 238 former operators transitioned from scaling businesses to founding their own ventures. This 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.

The data shows a distinct trend: operator-led startups are reaching seed funding milestones faster, raising larger seed rounds and securing stronger investor backing, especially in capital-intensive and regulated sectors where executional expertise matters most.

In 2024, operator-led startups raised $101 million – a 243% increase from 2023 and up from $52.9M in 2022. They accounted for 11.5% of all venture funding in 2024, up from just 6% the year before.

The momentum is most visible at the seed stage*. Of the operator-led startups founded in 2022, 11.2% of secured seed rounds, compared to 4.4% of startups founded in the rest of India tech. This trend strengthened in 2023 (12.6% versus 2.7%) and held steady in 2024 (8.1% vs. 1.5%), despite tougher capital conditions. Former operators are raising more, too. The average seed round for operator-turned-founders, between 2022-2024, was $1.56 million – 1.2x larger than the $1.3 million raised by the rest of India Tech.

Operator-founders are also progressing to Series A at higher rates. Among startups founded in 2022, 7.1% of operator-led ventures have reached Series A, compared to 0.3% of the rest of the India tech. This trend continued in 2024; 5.4% versus 0.1%*. The consistency of this outperformance suggests that operational experience may give founders a decisive edge in execution, investor confidence and early-stage momentum. While their average Series A round size ($8.2M) was slightly smaller than the average for the Rest of India Tech ($9.6M), operator-led startups commanded significantly higher valuations – $38.5M vs. $21.8M – leading to less dilution and greater leverage.

When analysing the sectors former operators built in, Fintech and Insurtech attracted the highest capital – $89 million between 2022 and 2024. Energy & Sustainability followed closely at $40.3 million, and Supply Chain & Logistics Tech ranked third, raising $30 million – reflecting the continued need for operational efficiency in post-COVID supply chains.

In terms of startup volume, five sectors accounted for the majority of operator-led ventures: Fintech & Insurtech, E-Commerce & Retail Tech, EdTech, Enterprise SaaS and Healthcare & Life Sciences. Each reflects categories where founder experience and execution nuance can accelerate early success.

“We’ve always believed in backing exceptional entrepreneurs,” said Nishit Garg, Investment Partner, RTP Global and previously Vice President at Flipkart. “Many operator-founders bring a pragmatic mindset, shaped by real-world experience, that helps them scale efficiently. We’re constantly looking to deepen our understanding of the diverse paths founders take and this analysis helps us learn more about one such cohort, not to box ourselves in but to broaden our lens.”

“The startup ecosystem is constantly evolving, and founder profiles are diversifying,” said Neha Singh, Co-founder & CEO, Tracxn. “Through this collaboration with RTP Global, we’ve uncovered useful insights around the momentum behind operator-led ventures. These learnings can inform both investors and founders as they navigate the funding landscape.”

You can read the full study here: The State of Operator-Led StartUps 2025