Print Friendly, PDF & Email




            India continues to be home to the third largest start up ecosystem in the world. According to a recent report released by NASSCOM 1300 tech startups were added up to September this year. While 7 startups entered the Unicorn club talking the total number to 24, potential unicorns also saw a significant increase to 52 from 15 last year. The volume of investments in startups also grew, touching 4.4 million US dollars for January to September this year. According to the report these startups have created and estimated 60000 direct jobs and between 1.3 to 1.8 lakh indirect jobs.


Key takeaways from “Indian Tech Startup Ecosystem- Leading Tech in the 20’s” Report:

  • With addition of more than 1,300 startups this year so far, India continues to reinforce its position as the third largest startup ecosystem in the the world.
  • The total number of tech startups in the country has grown to 8,900-9,300 with 1,300 startups being added this year so far.
  • India also witnessed the addition of seven Unicorns this year till August taking the total tally to 24 – the third highest number of Unicorns (companies with valuation of over $1 billion) in a single country in the world.
  • The startups have created an estimated 60,000 direct jobs and 1.3-1.8 lakh indirect jobs.
  • Investment in start-ups were steady with $4.4 billion flowing in between January-September this year across 450 start-ups – up 5 per cent year-on-year.
  • Funding saw a huge spike in early stages with $1.6 billion being recorded and growing at 70 per cent y-o-y.
  • The trend witnessed over the year was that start-ups are driving focus more towards the B2B space and almost half of the country’s start-ups are offering enterprise focused services.
  • Over 18 per cent of all start-ups in India are now leveraging deep-tech, which means there are over 1,600 such companies in India. This number constituted only 8 per cent of start-ups incepted in 2014, and has seen a 40 per cent CAGR (compound annual growth rate) over the past five years.


Analysis of the report:

  • It is the good positive fact if we look at the numbers because both the number of startups and diversity in the startups has seen growth.
  • 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.
  • 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.
  • The government is taking pro-active steps in the right direction like the angel tax issue, regulatory tax issue, etc.
  • The DIPP, Ministry of Commerce and PMO is listening to most of the issues being put up and taking steps.
  • The entire spirit in the next generation of India is equally picking up.
  • 20% of the startups are deep technology using AI, machine learning, data analytics and so on.
  • Lot of the focus is in the B to B which is good in one sense because the path to profitability is faster and clearer.
  • But to the country of India’s size B to C market should also be growing particularly segments in social sector like healthcare, agriculture and skilling.
  • There are certain regulatory locks to be unlocked further.
  • It is the great opportunity for India to become a leader in some of this areas that will require not only startups at entrepreneurship but also funding which has grown only by 5%.

Way forward:

  • Overall it is a positive picture and we should look at our potential to grow even faster and bigger.
  • We should look into how we raise our aspirations.
  • We should enable B-C market to open up to the startups.
  • Creating a value as that Chinese have created in B-C.
  • Need to have very active government support of different nature,
  • For market access, the policies should be designed across all sectors of government and access should be at deep level.
  • We need to differentiate what are actual shell companies and actual startups.
  • Enabling the ministries to have pilot procurements on experiment basis.
  • Differential voting rights to protect domestic founders should be resolved.
  • Consumer seller connect
  • Proper balance between founders, investors and consumers.
  • Regulatory constraints in the social sectors should be removed and enabling environment should be provided for startups.
  • We need to identify appropriate startups and have partnership with them in concerned sector.
  • Enable founders to not only capture but retain the value of their innovation created is important.

Source: click here