TIMES.KY

Cayman Islands, Caribbeanand International News
Saturday, May 18, 2024

0:00
0:00

India - The 3rd Startup Nation

Since the beginning of the current decade, India’s technology startups have demonstrated impressive growth that has already brought the country to third place in the world only behind the acknowledged industry leaders: the US and Israel.

In today’s India, there are more than 4,200 startups from various fields, including digital (social networks, mobile technologies, analytics, cloud computing), hi-tech (augmented reality, Internet of Things, robotics), and ‘verticals’ where blank spots are identified and solutions are developed for specific areas (education, medicine, finance, advertising).

The startup ecosystem in India is young, innovative, aspirant, and futuristic, and since the beginning of the decade, it has virtually exploded. To put things in perspective, India had only 480 tech startups in 2010. Tech startups by definition include any business in the domain of technology incepted within the last five years, is headquartered in India, or has founding team with Indian origins along with product development largely in India.

Here are some key highlights of the Indian startup industry – and its emerging hotbeds of innovation:


1,200-plus new startups added in 2015;

80,000-85,000 jobs created by startups; greater than 10% growth in last year;

India is the youngest start-up nation in the world – 72% of the founders are less than 35 years old;

~ 50% rise in share of female entrepreneurs in 2015 over 2014, driven by 4.5 times the growth in funding to women-driven startups;

most of these founders, with a strong consumer-centric approach, have come up with some of the best-in-class B2C startups. Women entrepreneurs have also started to leverage the innovation economy;

funding increased by 125%, from $2.2 billion in 2014 to $4.9 billion in 2015; this is much higher compared to the cumulative funding of ~$3.2 billion over the 2010-14 period;

~2.2 times the increase in the number of startups funded in 2015. More than 390 startups have received funding, compared to 179 startups in 2014;
while overall VC/PE funding has grown by 2.2 times over 2014, seed stage VC funding has grown by an incredible 6.5 times;

the total number of active investors has grown by 2.3 times, from 220 in 2014 to 490 in 2015;

the B2C segment dominates, led by e-commerce, health care and aggregators; B2B funding evolves as e-commerce enablers, IoT, and analytics emerge as focus areas;

more than 65% of startups are located in Bangalore, NCR, and Mumbai;

2.3 times the growth in number of active investors; global investors and corporates are betting high on the India market. Tiger Global, Sequoia Capital, Softbank, Warburg Pincus, and Alibaba are among the top investors, participating mostly in high-value deals worth more than $500 million;

startups are creating a new world of talent; executives from national and international conglomerates are joining top positions at start-up ventures or starting their own ventures.


Driving the Dream


So what is really driving this dream? Increasingly, the number of investors, including global ones, who are parking funds here; a growing digital user base; mobile-first population; and a supportive government that recognizes the role of startups, are clearly some of the top of mind drivers.

This maturing startup ecosystem is contributing to the Indian economy in multiple ways. In addition to enhancing the lifestyle of citizens, startups are creating innovative technology solutions that address key problems that India as a country faces, and are empowering SMBs by enhancing their customer reach and overall business productivity.

The meteoric rise of tech startups and their contribution is unparalleled. This has much to do with the fact that young entrepreneurs are able to think big, and view India’s challenges as billion-dollar opportunities. Power shortage in India lead to an annual loss of $68 billion); impact of infrastructure congestion is estimated at $10 billion; India only has one doctor for 1700 patients; over 120 million rural households do not have access to bank accounts; agricultural productivity is abysmal in India (48% of agricultural yield compared to other Asian countries); and impact of technology will imply a huge skilling challenge in India, with 500 million people required to be skilled in the next five years. A vision that has captured popular mindshare of the startup community is that these challenges, if addressed, can transform the nation beyond recognition.

It is encouraging to see global investors interested in large deals, upward of $500 million. In the B2C segment, hyperlocal e-commerce and aggregators presently command a lion’s share of the pie. But in the B2B segment, especially those in niche segments and providing solutions to the former, are close on the heels. Robotics, 3D printing, and machine learning are the other emerging whitespaces for the future.

The ecosystem is not just cognizant but supportive of this change in equal measure. This is evidenced by the fact that incubators, accelerators, and the like are mushrooming. The triad – academic institutions, the government, and corporate houses – provides support to this part of the value chain admirably, be it physical space or knowledge dissemination. Often, both.


Exits: instilling positivity and confidence


The period from 2014-15 has seen some large exits, instilling positivity and confidence in the investor community. Over 65 acquisitions this year signal a maturing startup ecosystem in India. An improving environment for doing business – these are the main reasons for a rush of venture capital into India over the last two years. Now, there’s another pull factor growing stronger: exits.

Exits, mergers, and acquisitions are important for investors as they help them to reinvest into new startup ventures. Their risk appetite goes up, too, as exits mitigate worries over getting caught up in a valuation bubble. And it is not just the number of exits that matter, but their size, too.

With over 65 M&A deals already in 2015 – worth close to $800 million (which excludes several deals with undisclosed value), – India has shown the signs of positivity and confidence in the global market. More importantly, some of these have been big-ticket exits instilling investor confidence in the Indian startup ecosystem.

Thanks to active government support and the building of the necessary infrastructure, in particular as part of the Start-Up India program, the country’s startup industry is growing at an impressive pace. By 2020, more than 11,500 tech startups would get established in India, generating employment opportunities for over 250,000 people.

Key indicators, such as opportunities existing in the domestic market, access to capital/mentors, increased M&A and consolidation activities, and the increasing digitalization of India clearly point toward the further evolution of the ecosystem.

Newsletter

Related Articles

TIMES.KY
0:00
0:00
Close
Paper straws found to contain long-lasting and potentially toxic chemicals - study
FTX's Bankman-Fried headed for jail after judge revokes bail
Blackrock gets half a trillion dollar deal to rebuild Ukraine
Israel: Unprecedented Civil Disobedience Looms as IDF Reservists Protest Judiciary Reform
America's First New Nuclear Reactor in Nearly Seven Years Begins Operations
Southeast Asia moves closer to economic unity with new regional payments system
Today Hunter Biden’s best friend and business associate, Devon Archer, testified that Joe Biden met in Georgetown with Russian Moscow Mayor's Wife Yelena Baturina who later paid Hunter Biden $3.5 million in so called “consulting fees”
Singapore Carries Out First Execution of a Woman in Two Decades Amid Capital Punishment Debate
Google testing journalism AI. We are doing it already 2 years, and without Google biased propoganda and manipulated censorship
Unlike illegal imigrants coming by boats - US Citizens Will Need Visa To Travel To Europe in 2024
Musk announces Twitter name and logo change to X.com
The politician and the journalist lost control and started fighting on live broadcast.
The future of sports
Unveiling the Black Hole: The Mysterious Fate of EU's Aid to Ukraine
Farewell to a Music Titan: Tony Bennett, Renowned Jazz and Pop Vocalist, Passes Away at 96
Alarming Behavior Among Florida's Sharks Raises Concerns Over Possible Cocaine Exposure
Transgender Exclusion in Miss Italy Stirs Controversy Amidst Changing Global Beauty Pageant Landscape
Joe Biden admitted, in his own words, that he delivered what he promised in exchange for the $10 million bribe he received from the Ukraine Oil Company.
TikTok Takes On Spotify And Apple, Launches Own Music Service
Global Trend: Using Anti-Fake News Laws as Censorship Tools - A Deep Dive into Tunisia's Scenario
Arresting Putin During South African Visit Would Equate to War Declaration, Asserts President Ramaphosa
Hacktivist Collective Anonymous Launches 'Project Disclosure' to Unearth Information on UFOs and ETIs
Typo sends millions of US military emails to Russian ally Mali
Server Arrested For Theft After Refusing To Pay A Table's $100 Restaurant Bill When They Dined & Dashed
The Changing Face of Europe: How Mass Migration is Reshaping the Political Landscape
China Urges EU to Clarify Strategic Partnership Amid Trade Tensions
Europe is boiling: Extreme Weather Conditions Prevail Across the Continent
The Last Pour: Anchor Brewing, America's Pioneer Craft Brewer, Closes After 127 Years
Democracy not: EU's Digital Commissioner Considers Shutting Down Social Media Platforms Amid Social Unrest
Sarah Silverman and Renowned Authors Lodge Copyright Infringement Case Against OpenAI and Meta
Italian Court's Controversial Ruling on Sexual Harassment Ignites Uproar
Why Do Tech Executives Support Kennedy Jr.?
The New York Times Announces Closure of its Sports Section in Favor of The Athletic
BBC Anchor Huw Edwards Hospitalized Amid Child Sex Abuse Allegations, Family Confirms
Florida Attorney General requests Meta CEO's testimony on company's platforms' alleged facilitation of illicit activities
The Distorted Mirror of actual approval ratings: Examining the True Threat to Democracy Beyond the Persona of Putin
40,000 child slaves in Congo are forced to work in cobalt mines so we can drive electric cars.
BBC Personalities Rebuke Accusations Amidst Scandal Involving Teen Exploitation
A Swift Disappointment: Why Is Taylor Swift Bypassing Canada on Her Global Tour?
Historic Moment: Edgars Rinkevics, EU's First Openly Gay Head of State, Takes Office as Latvia's President
Bye bye democracy, human rights, freedom: French Cops Can Now Secretly Activate Phone Cameras, Microphones And GPS To Spy On Citizens
The Poor Man With Money, Mark Zuckerberg, Unveils Twitter Replica with Heavy-Handed Censorship: A New Low in Innovation?
Unilever Plummets in a $2.5 Billion Free Fall, to begin with: A Reckoning for Misuse of Corporate Power Against National Interest
Beyond the Blame Game: The Need for Nuanced Perspectives on America's Complex Reality
Twitter Targets Meta: A Tangle of Trade Secrets and Copycat Culture
The Double-Edged Sword of AI: AI is linked to layoffs in industry that created it
US Sanctions on China's Chip Industry Backfire, Prompting Self-Inflicted Blowback
Meta Copy Twitter with New App, Threads
The New French Revolution
BlackRock Bitcoin ETF Application Refiled, Naming Coinbase as ‘Surveillance-Sharing’ Partner
×