The start-up ecosystem is experiencing a rising momentum of operator-led start-ups, with 238 former operators transitioning from scaling businesses to founding their ventures between 2022 and 2024, according to a report by Tracxn, commissioned by early-stage venture capital firm RTP Global.

This surge is likely driven by liquidity from ESOP buybacks, a desire for fresh challenges, returning US talent, and impact of mass layoffs, according to the report.

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

The data shows a distinct trend: operator-led start-ups 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.

The momentum is most visible at the seed stage. Of the operator-led start-ups founded in 2022, 11.2 per cent secured seed rounds, compared to 4.4 per cent of start-ups founded in the rest of India tech. The trend strengthened in 2023 (12.6 per cent versus 2.7 per cent) and held steady in 2024 (8.1 per cent vs. 1.5 per cent), 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.

Among start-ups launched in 2022, operator-founders are doing better at securing Series A funding. While only 0.3 per cent of other Indian tech start-ups managed to raise Series A rounds, a whopping 7.1 per cent of operator-led ventures achieved this milestone.

This wasn’t a one-time phenomenon. The trend held strong in 2024 as well, with 5.4 per cent of operator-founded start-ups reaching Series A compared to just 0.1 per cent of others.

The report also noted that while operator-led start-ups raised slightly smaller funding rounds on average ($8.2 million vs $9.6 million), they achieved much higher company valuations. Their start-ups were valued at $38.5 million compared to $21.8 million for other tech companies.

This higher valuation means these founders had to give away less equity to investors, keeping more control of their companies.

In terms of start-up volume, five sectors accounted for the majority of operator-led ventures: Fintech & insurtech, e-commerce & retail tech, edtech, enterprise SaaS and healthcare & life sciences.

“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 start-up 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.”

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Published on June 11, 2025