Combined revenue of Russian startups grows 39% in 2024 to 300 bln rubles - experts

MOSCOW. Sept 22 (Interfax) - The combined revenue of Russian IT startups (around 4,000 companies) grew 39% in 2024 to approximately 300 billion rubles, according to a study by the T1 IT holding's DGCompass.

"The startup market is growing due to certain industries where solutions based on modern technologies are already being created and implemented," Kirill Bulgakov, the deputy general director of T1 and managing director of the company NOTA (part of the holding), was quoted as saying in the study. "In other spheres, startups are still focused on refining products launched before 2022."

According to the researchers, not only revenue but also net profit grew last year, with growth totaling 26.5% to 35 billion rubles. As a startup ages, its margin sharply decreases, the researchers said. The average margin is around 30% for startups that are one year old, while subsequently this indicator decreases to approximately 6% over four to five years.

The top six industries by average startup revenue included information security (134 million rubles), business software (129 million rubles), insurance (126 million rubles), financial services (125 million rubles), advertising and marketing (121 million rubles) and education (109 million rubles).