99 IIT and IIM graduates founded startups in 2026 as AI jobs pulled talent away
By TUF News Desk · Published 31 October 2026 · 4 min read
Fact-checked against 2+ independent sources · Editorial policy
Between January and August 2026, only 79 IIT alumni and 20 IIM alumni founded new tech startups in India. That is 99 founders in eight months, against 307 IIT graduates and 71 IIM graduates who founded startups across the whole of 2025. The figures come from market intelligence firm Tracxn, collated for The Economic Times and published on October 31.
The drop stands out because the wider startup market moved the other way. Tracxn counted 6,353 tech startups founded in India up to August 2026, already well past the 3,969 founded in all of 2025. India had 196,704 tech startups in total by August. So the slowdown sits with IIT and IIM graduates while the wider market keeps growing.
Why graduates are picking salaries over startups
The reporting points to AI jobs as the main pull. Large companies and AI-focused firms are hiring aggressively, and the pay and stability of those roles compare well with the risk of starting a company. At the same time, AI and no-code tools have cut the cost of building a product, which helps explain why total startup numbers rose even as elite graduates stepped back. Investors have also grown stricter about unit economics.
Saakshi Gera, managing director at Kedaara Capital, told The Economic Times that startups are increasing largely because AI and no-code tools have lowered the cost of launching a venture, while layoffs have pushed some people toward entrepreneurship as a fallback. She added that investors still prioritise sustainable unit economics.
Tracxn co-founder Neha Singh said IIT alumni still account for a much larger share of startup founders than IIM alumni, which fits their larger alumni base and the engineering and deep-tech tilt of many tech startups. She also noted a large pool of talent that has not yet turned to entrepreneurship.
Read the comparison with care
The year-on-year comparison needs a caveat. Tracxn records only the year a startup was incorporated, so it has no comparable January to August figure for 2025. The 2026 count covers eight months against a full year for 2025, and Tracxn itself says the full incorporation figures for 2026 will only be known later and may rise somewhat. The direction is clear, but the size of the gap will narrow as late incorporations are recorded.
The study covered 13 IITs and 10 IIMs, including Bombay, Delhi, Ahmedabad and Bangalore. Across all years, 6,147 tech startups have at least one IIT founder and 2,102 have at least one IIM founder, so the older pipeline of elite founders is still large. The change is in the new flow, not in the stock.
What it means for students
For students at the Indian Institute of Technology Bombay and the Indian Institute of Technology Delhi and their peers elsewhere, the numbers describe a career market in 2026. A corporate AI role now offers pay and stability without the fundraising grind, and many graduates appear to be taking that trade. The other side of the same data is that deep-tech founding, the area where IIT training counts most, may see fewer new entrants in the near term.
Aspirants choosing between institutes can weigh placement and alumni paths alongside fees and courses using our guide to choosing a university in India. The founder numbers say more about the 2026 job market than about any single institute.
Frequently asked questions
How many IIT and IIM graduates founded startups in 2026?
Between January and August 2026, 79 IIT alumni and 20 IIM alumni founded new tech startups, according to Tracxn data collated for The Economic Times.
How does that compare with 2025?
Across the whole of 2025, 307 IIT graduates and 71 IIM graduates founded startups. Tracxn has no comparable January to August figure for 2025, so the comparison is eight months against a full year.
Why are fewer elite graduates founding startups?
Secure, well-paid AI roles are pulling graduates toward corporate jobs, while investors have grown stricter about sustainable unit economics, making fundraising a harder path.
How many tech startups have IIT or IIM founders overall?
As of August 2026, 6,147 tech startups had at least one IIT founder and 2,102 had at least one IIM founder.
Frequently asked questions
How many IIT and IIM graduates founded startups in 2026?
Between January and August 2026, 79 IIT alumni and 20 IIM alumni founded new tech startups, according to Tracxn data collated for The Economic Times.
How does that compare with 2025?
Across the whole of 2025, 307 IIT graduates and 71 IIM graduates founded startups. Tracxn has no comparable January to August figure for 2025, so the comparison is eight months against a full year.
Why are fewer elite graduates founding startups?
Secure, well-paid AI roles are pulling graduates toward corporate jobs, while stricter investors make fundraising a harder path.
How many tech startups have IIT or IIM founders overall?
As of August 2026, 6,147 tech startups had at least one IIT founder and 2,102 had at least one IIM founder.
Sources: The Economic Times, NewsBytes