Startup Mafia 2.0 is still going strong: alumni from Zomato, Freshworks, and Zoho establish 360 businesses

India’s new-age startups are increasingly becoming breeding grounds for the next generation of entrepreneurs, with companies like Oyo, Ola, Zomato, and Udaan emerging as key launchpads for first-time founders.

According to data from Longhouse analysed by Economic Times, founders who previously worked at such startups have collectively built around 360 companies as of March 2026—up sharply from 253 startups reported in 2023. This trend reflects the rapid evolution of what is often referred to as the “startup mafia,” a term used to describe networks of former employees who go on to create their own ventures.

The concept has evolved across generations. Early examples of such ecosystems came from companies like Flipkart and Paytm, while newer “Mafia 3.0” firms include Razorpay, CRED, Meesho, PhonePe, and Unacademy.

Among the second-generation cohort, enterprise software company Freshworks has seen the most dramatic rise in entrepreneurial alumni, with the number of founders emerging from the company more than doubling from 22 in 2023 to 51 in 2026. Similarly, Zomato’s alumni founder base has surged from 15 to 51 during the same period, while SaaS major Zoho has seen growth from 16 to 41 founders.

Other companies have also contributed significantly to this expanding network. Snapdeal has grown its founder alumni base from 19 to 41, while fintech firm PayU has seen an increase from 12 to 31 founders. In the mobility and hospitality sectors, Oyo has produced 53 founders and Ola 51 as of 2026. Meanwhile, Udaan’s alumni founder base has grown from 25 to 30.

Industry experts say this trend is a natural outcome of startups scaling rapidly, giving employees hands-on experience in building products, managing teams, and raising capital. Anshuman Das noted that entrepreneurship is increasingly becoming a natural career progression within the ecosystem rather than being limited to a small group.

He also pointed out that the “gestation period”—the time between working at a startup and launching one’s own venture—has shortened significantly. This shift is being driven by the maturity of India’s startup ecosystem, improved access to funding, and greater exposure to successful business models.

Investors add that a combination of early wealth creation, potential future liquidity from stock options, and a stronger funding environment is giving startup employees both the confidence and financial cushion to venture out on their own earlier in their careers.

Overall, the rise of startup mafias highlights a powerful cycle within India’s tech ecosystem—where successful companies not only scale themselves but also seed the next wave of innovation by producing a new generation of founders.