2024 startup rewind: Key insights on AI, fintech, and quick commerce from Prime Venture Partners

As 2024 draws to a close, the Indian startup ecosystem finds itself at a transformative crossroads. This year has been a journey of resilience and reinvention, where businesses have faced economic headwinds, embraced cutting-edge technologies, and pivoted toward sustainable growth.

One of the year’s standout developments was the growing maturity of the Indian initial public offering (IPO) market. Companies with strong unit economics and profitability are now seeing a clear path to listing on public markets, signaling a new era of opportunity for founders and investors alike.

In the Prime Venture Partners (PVP) Year-End all Partner Podcast, Sanjay Swamy, Shripati Acharya, Amit Somani, and Brij Bhushan reflected on the defining moments of the year.

From the rise of AI and fintech’s continued evolution to the challenges and opportunities of quick commerce and IPO readiness, their candid insights paint a vivid picture of what’s next for Indian startups.

This article captures the key takeaways, actionable lessons, and bold predictions shared during the discussion. Whether you’re an entrepreneur, investor, or tech enthusiast, 2024’s reflections offer valuable lessons to navigate the ever-changing landscape of the Indian startup ecosystem.

AI moves from buzzword to business essential

“AI has become second nature for consumers and businesses alike,” remarked Shripati Acharya, highlighting how startups are integrating AI not just as an enabler but as a core part of their operations.

Sharing a personal anecdote, he said, “Just last week, my daughter used ChatGPT to figure out her compensation rights after a flight delay. It’s no longer a novelty—it’s a utility.”

For startups like Quizizz, AI has been a game-changer. “They’ve used AI to expand their utility for both teachers and students,” Acharya noted. Features like dynamic accommodations allow personalised assessments, making learning more inclusive and impactful.

Looking ahead, Acharya emphasised, “AI is opening up new vistas for innovation, especially in addressing India-specific problems. The surface area of what we can solve with technology is expanding exponentially and highly inclusive.”

Indian IPOs: A new era for startup exits

A standout milestone for 2024 was the clarity around IPO pathways for Indian startups. Sanjay Swamy shared, “For years, founders wondered where exits would come from. Today, companies with $50-$70 million in revenue, sound unit economics, and profitability can realistically target IPOs on Indian public markets.”

This development has boosted confidence of entrepreneurs and investors, creating a tangible goal for scaling companies. “It’s no longer just about building great businesses—it’s about building publicly sustainable ones,” Swamy added.

Quick Commerce: Bubble or long-term opportunity?

Quick commerce has sparked debate throughout 2024. While it has undeniably reshaped consumer behavior, questions around profitability persist.

Brij Bhushan summed it up aptly: “If you deliver something that used to take three days in 10 minutes, consumers will love it. But profitability will require deep pockets and disciplined execution.”

The challenges extend beyond consumer-facing services to the backbone of quick commerce—supply chains and logistics.

“It’s not just about delivering in 10 minutes,” said Bhushan. “Startups are rethinking supply chains entirely, creating opportunities for new infrastructure and platforms to emerge.”

Edtech’s third coming

After a turbulent phase, edtech is making a comeback. “Edtech and healthcare are going to be needed even 500 years from now,” noted Amit Somani.

Startups like PlanetSpark have paved the way with profitable, scalable models. “They’ve shown that focusing on fundamentals—unit economics and delivering value to learners—can create sustainable businesses,” Somani shared.

The integration of AI into education has further boosted the sector. “Companies like Quizizz are leading by example, using AI to transform learning experiences,” Acharya said.

Somani predicted that edtech’s next wave would focus on personalised and inclusive learning. “There’s a growing awareness that online learning isn’t just an alternative—it’s a way to bridge gaps in access and quality.”

Fintech: The gift that keeps on giving

Despite being a well-established sector, fintech continues to evolve. As Swamy observed, “India remains massively credit-starved. This is a space where the opportunity is infinite, provided startups stay within the regulatory lanes.”

Startups like Freo exemplify this disciplined approach. “They’ve demonstrated extraordinary discipline in acquiring customers at low costs while maintaining tight control over NPAs,” said Swamy.

Acharya added a note of caution: “The best fintech entrepreneurs understand not just the letter of regulation but the spirit behind it. Building businesses that align with this spirit is what differentiates long-term winners.”

Profitability: The cornerstone of 2024

If one theme defined 2024, it was profitability. From consumer startups to SaaS ventures, the focus has shifted to sustainable growth.

“MyGate is a great example,” said Swamy. “They’ve achieved profitability by combining advertising revenue, SaaS, and innovative products like MyGate locks. It’s about going back to basics and staying laser-focused on customer needs.”

Somani highlighted another dimension of profitability: leadership. “Investing in high-quality leadership teams and embracing coaching has been transformative for our portfolio companies. It’s a sign of a maturing ecosystem.”

What’s Next for 2025?

As the podcast concluded, each speaker shared their predictions for the year ahead.

Acharya emphasised the democratisation of technology: “Voice technology will make innovation accessible to everyone. Imagine interacting with software in your native language—that’s the future.”

Somani forecasted a resurgence in edtech, powered by sustainable models and AI-driven personalisation.

“We’re entering the third coming of edtech, and this time, it’s here to stay.”

Swamy looked toward IoT and AI convergence: “IoT with AI is going to be extraordinarily exciting. The intersection of these technologies will create entirely new categories of startups.”

Bhushan summed it up: “2025 will be about startups solving specific, high-impact problems with integrated solutions. It’s not just about innovation—it’s about relevance and execution.”

As we step into 2025, the Indian startup ecosystem stands stronger, more mature, and more innovative than ever. For entrepreneurs, the message is clear: focus on fundamentals, embrace technology, and build with purpose.