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The Logic of Start-Up Outperformers 2025 Rankings

The framework examines start-ups through three lenses: financial performance, funding and valuation, and operational capabilities

The Logic of Start-Up Outperformers 2025 Rankings

In a start-up ecosystem, ranking frameworks are a crucial navigation tool for investors and policymakers. The Outlook Business Start-Up Outperformers rankings use a sophisticated yet transparent methodology with the analytical hierarchy process (AHP) at its core, to evaluate start-ups, states and cities across multiple dimensions.

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The framework examines start-ups through three lenses: financial performance, funding and valuation, and operational capabilities.

For states and Union Territories, we expanded the evaluation to six categories: funding and investment, macroeconomic scenario, human capital and knowledge edge, digital evolution, business environment, and sustainability and inclusion.

Cities are assessed on four parameters focusing on start-up ecosystem vitality.

The Methodology

What sets this methodology apart is its systematic application of AHP, a mathematical model that brings scientific rigour to complex decision-making. Unlike traditional statistical tools, AHP offers several distinct advantages.

First, it breaks down complex decisions into manageable pairwise comparisons, making the evaluation process intuitive and less prone to cognitive biases.

Second, it successfully bridges the gap between qualitative assessments and quantitative analysis, converting expert judgements into numerical weights that can be mathematically analysed.

The beauty of AHP lies in its ability to create a mathematical relationship between parameters. When one category receives twice the weight of another, it indicates that the former is considered two times as influential in determining the success of a start-up.

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This mathematical clarity is valuable when dealing with evaluations where different factors carry varying degrees of significance.

These comparisons are made on a nine-point scale, ensuring grained differentiation in parameter significance.

Fresh Perspective

The framework in this issue includes new parameters—sustainability and inclusion and digital evolution—reflecting evolving start-up dynamics.

Sustainability and inclusion metrics now evaluate gender inclusivity in entrepreneurship and environmental commitment through green energy adoption. Digital evolution parameters capture the increasing importance of digital infrastructure and adoption in start-up success.

What makes AHP valuable in this context is its ability to adapt to the unique characteristics of different sectors. The same parameter categories might carry different weights across sectors such as fintech, health tech or ecommerce, reflecting sector-specific drivers of success. This flexibility allows a nuanced evaluation while maintaining methodological consistency.

Ifs And Buts

It is, however, important to acknowledge that AHP, like any other methodology, has its limitations. Its dependency on expert judgement means the quality of the results is tied to the expertise of those making the comparison.

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We have mitigated this challenge by employing a multidisciplinary evaluation team comprising editorial experts and research partners.

The structured and hierarchical nature of AHP, combined with comprehensive data validation and sector-specific weightage adjustments, makes this framework robust and relevant for understanding the dynamics of the start-up ecosystem.

Through this structured approach, our rankings give stakeholders actionable insights. The framework serves not only as a ranking tool but also as a comprehensive evaluation system that captures the multifaceted nature of start-up success in India.

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