India Soon To Be The Largest Startup Ecosystem In The World?
Statistics state that startups in India have been performing quite spectacularly. What does the future hold but?
As per a report from an international publication, Indian tech startups and the startup ecosystem in India has never had such a good year as 2019. In India, tech startups have raised $14.5 billion in 2019. They have surpassed their previous record of $10.6 billion in 2018, according to research firm Tracxn.
To add some statistics to the same, startup business has been on a high, and tech startups in India have participated in 1,185 financing rounds. Out of these, 459 were Series A and later rounds from 817 investors. As per InnoVen Capital’s report, startups in the early stage have struggled to attract investors. They saw a 22 percent year-over-year increase in the number of financing deals that they have taken part in this year. On average, at around $2.6 million, their valuation increased by 15 percent from last year.
India’s New Startup Hub
The Manchester City of India, Ahmedabad has taken a leadership position in being identified as the ‘emerging startup hubs’ in India. Ahmedabad has grabbed around 43 percent share of funded startups in emerging hubs, as per Nasscom and consulting firm Zinnov. Other cities like Jaipur, Kolkata, and Kochi have been emerging startup hubs and definitely home to tech startups. There were approximately 150 startups founded in these emerging hubs between 2014 to 2019, and around 43 percent of them were launched in Ahmedabad. Ahmedabad was followed by Jaipur (25 percent), Kolkata (17 percent), and Kochi (15 percent).
Startup Funding Scenario in India
The startup funding scenario in India and the startup ecosystem of India has been quite impressive. There have been immense help from the Departments of Science and Technology of Niti Aayog, Ministry of Electronics and Information Technology (MeitY) and state Governments too, in fetching funding support. This is mainly for the Tier 2 and Tier 3 cities.
As per a report by Nasscom, most of the startups in these emerging hubs are in the seed and early stages. But there have been outsiders like LendingKart that may be considered as potential unicorns. Also, data states that the number of startups among the emerging hubs have been growing by around 55 percent, since 2014, when compared to the overall growth of 12-15 percent of the Indian startup ecosystem.
What Is The Future For Startups?
While reporting on startups, Express Computer had already mentioned about how the upcoming days of startups, that are going to be sunny. With so many startup hubs operating in India, India might soon rise from the 3rd largest startup ecosystem in India to the first!
Indian Entrepreneur needs to move on from Aggregation, eCommerce and Service Industry Outsourcing to Technology Creation, New Business Domain Creation and New Product Development for the Global Market. Further Indian StartUps should get equal participation in Debt and Equity Investment from FDI and Secondary Investment i.e. Local Indian Companies. We should make for the world, yet #MakeInIndia More power to #StartUpIndia #MakeInIndia #DigitalIndia
Klariti TaxCorp LLP
Hey Gairika, thanks for sharing this useful piece of information with us. More and more startups are emerging these days and maybe that’s good for India as startups are a sign that we are growing. I wish more startups come out and we all grow together as a nation.
Thanks for sharing valuable information.