The current Indian startup ecosystem, with a cumulative valuation of 95 – USD 101 billion, has facilitated between 390 000 – 430 000 direct jobs, 60 000 of which were created in 2019 alone, according to the Nasscom 2019 report.
Consisting of over 335 active incubators and accelerators with a capacity to enable over 5 000 startups every year, this thriving ecosystem added some 1 300 startups in 2019. Growing from 7 700 – 8200 in 2018 to 8 900 – 9 300 tech start-ups in 2019, India has the third largest startup ecosystem in the world, with the third highest number of unicorns globally. With a current number of 24 unicorns, compared to 17 unicorns of 2018, Nasscom anticipates the year ending on 26 -27 unicorns. There are also over 50 potential unicorns in the country at present that have received cumulative funding in excess of USD 50 Mn. This is expected to increase to 95 -105 by 2025 with an cumulative valuation of USD 350-390 billion.
Driven by increased in internet penetration, an improved infrastructure for digital transactions and enhanced by the added influence of the Indian government’s push towards a cashless India and digital inclusion, start-ups are using deep-tech solutions such as such as artificial intelligence, analytics, augmented reality/virtual reality, blockchain and internet of things. Nasscom reports that there are over 1600 deep-tech companies in India.
The trend witnessed over the year was that start-ups are driving focus more towards the B2B space with 43 % of start-ups operating in this space with fintech, enterprise and retail tech emerging as the most mature sectors.
While Bengaluru continues to lead in terms of tech startups, followed by Delhi-National Capital Region, 12-15 percent of tech startups are coming from emerging cities reports Bloomberquint.
Speaking at the release of the report, Ms. Debjani Ghosh, President, NASSCOM, said, “The start-up landscape in the country is becoming the epitome of innovation, with companies bringing out solutions that are aimed at solving locally relevant issues. However, to simulate innovation, government and corporates need to focus on increasing their role as prominent stakeholders playing the part of venture capitalists and providing the appropriate market access, funding, and guidance to seed stage start-ups.
Bloombergquint reports that almost 1 900 plus startups are expanding their presence beyond the country’s boundaries, setting up in global markets. This has seen over 480 start-ups registered overseas with R&D in India including 20+ international unicorns.
Nasscom reports that investment in start-ups has been steady at a value of USD 4.4 billion from January to September 2019 across 450 start-ups at a 5 percent year on year growth.
The Economic Times reports Nasscom President Debjani Ghosh saying that the start-up landscape in the country is becoming the epitome of innovation, with companies bringing out solutions that are aimed at solving locally relevant issues.
“However, to stimulate innovation, government and corporates need to focus on increasing their role as prominent stakeholders playing the part of venture capitalists and providing the appropriate market access, funding, and guidance to seed stage start-ups,” she added.
Ghosh said that the Indian start-up ecosystem has come a long way in providing a level playing field for innovators to flourish by strengthening capabilities and fostering co-creation.
“The next wave of growth will be at the junction of convergence of technologies, where different sectors will embrace digital to re-define their operations,” she added.