Fewer IIT and IIM Alumni Launch Startups Despite Surge in India

India’s technology startup ecosystem is expanding rapidly, yet the number of entrepreneurs emerging from the Indian Institutes of Technology (IITs) and Indian Institutes of Management (IIMs) has fallen this year. Data from Tracxn, cited by The Economic Times, reveals that only 79 IIT alumni and 20 IIM alumni founded technology startups between January and August 2026. This contrasts sharply with the 307 IIT graduates and 71 IIM graduates who launched startups throughout 2025.

It should be noted that the 2026 figures cover just the first eight months, so they are not fully comparable to the previous year’s complete data. Still, the trend suggests a shift in career decisions among some of the country’s most highly qualified individuals.

Meanwhile, India’s startup landscape as a whole continues to gain momentum. Up to August 2026, 6,353 technology startups were established, compared with 3,969 in the entire year of 2025. This surge highlights a growing entrepreneurial spirit and an expanding market for tech innovation.

The disparity between the rising total number of startups and the decreasing share founded by IIT and IIM alumni could indicate that more graduates from these prestigious institutions are opting for different career paths. This presents a complex picture for India’s startup sector, which has long viewed such graduates as vital contributors to innovation and enterprise creation.

Vikram Gupta, founder and managing partner of IvyCap Ventures, commented on this dynamic, telling The Economic Times that while the growth in startup creation is positive, the relatively low participation from IIT and IIM alumni suggests that a significant talent pool remains underutilized. Gupta emphasized the need for entrepreneurship to become a more attractive and feasible career option for a wider range of graduates if India hopes to nurture lasting companies and boost its startup ecosystem further.

Historically, IIT graduates have played a more prominent role in founding startups compared to their IIM counterparts. According to Tracxn’s data, as of August 2026, out of nearly 197,000 technology startups tracked in India, 6,147 included at least one IIT founder, while 2,102 had an IIM founder involved. This difference can be partly explained by the size of the IIT alumni network and the technical nature of many startups.

Neha Singh, co-founder of Tracxn, explained that the predominance of IIT alumni among founders reflects the engineering and deep-technology focus of many new ventures. Technical founders often initiate startups, with business graduates from institutions like IIM joining later to provide management expertise as companies scale.

The broader expansion of the Indian startup ecosystem can be linked to factors such as increased digital adoption, government initiatives supporting entrepreneurship, and greater access to funding. However, the participation rate of elite institution graduates may be influenced by a variety of factors including risk appetite, alternative career opportunities, and evolving perceptions of entrepreneurship.

In summary, while India’s technology startup scene is growing at a brisk pace, fewer IIT and IIM graduates are founding startups in early 2026 compared to the previous year. Encouraging more graduates from these institutions to pursue entrepreneurship could unlock additional innovation and economic growth, helping India cement its position as a global startup hub.