Startup Ecosystem Report 2025

• 26 Mar 2025

Why in News? 

According to the Startup Ecosystem Report-2025, Uttar Pradesh has ranked 3rd in the country's startup ecosystem, where 26 startups have achieved unicorn status.  

Key Points 

•  About: 
  • According to the report, Uttar Pradesh has made remarkable progress in its startup ecosystem . As a result, over 14,000 startups have emerged in the state.  
  • Uttar Pradesh has become the first state in the country where startups are active in  49 districts . 
  • Earlier, the centre of startups was only in big cities like Noida, Ghaziabad, Lucknow and Kanpur, but now they are growing rapidly in smaller cities as well. 
• Top 10 Startup Hub Cities of Uttar Pradesh:   
  • Among the top 10 startup hub cities of Uttar Pradesh , Noida leads the list with 3418 startups , followed by Lucknow with 1789 , Ghaziabad with 1582 , and Kanpur with 586 startups. 
  • There are 406 startups active in Varanasi , 359 in Agra , 291 in Meerut , and 283 in Prayagraj . At the same time 201 startups are active in Gorakhpur and 177 in Bareilly.  
• Contribution of Uttar Pradesh to the Country: 
  • Uttar Pradesh contributes 9.6% of the total recognized startups in India. 
  • Despite lagging slightly behind Delhi (10%) and Karnataka (10.6%) , Uttar Pradesh's rapidly growing share could soon take it to the second spot. 

Unicorn 

• Introduction:  
  • A unicorn is any privately owned firm with a market capitalization of over  USD 1 billion. 
  • This reflects the emergence of new entities dedicated to offering  creative solutions and new business models, among other products/services . 
  • Its various categories include FinTech, EdTech, Business-to-Business (B2B) companies, etc.  
• features:  
  • Divisive Innovation: Almost all unicorns have brought innovation in the sector they belong to, for example ‘Uber’ has changed the face of commuting.  
  • Technology Driven: This business model is driven by the latest technological innovations and trends.  
  • Consumer-Centric: Their aim is to simplify tasks for consumers and become a part of their everyday lives.  
  • Private Ownership: Most unicorns are privately owned, their valuation increases further when an established company invests in them.  
  • Software-Based: A recent report shows that 87% of Unicorns’ products are software, 7% are hardware and the remaining 6% are other products and services.