Indian Startup Ecosystem

1 Startup Ecosystem in India: Quick Facts

India has the 3rd largest startup ecosystem in the world; expected to witness YoY growth of a consistent annual growth of 12-15%

India has about 50,000 startups in India in 2018; around 8,900 – 9,300 of these are technology led startups 1300 new tech startups were born in 2019 alone implying there are 2-3 tech startups born every day.

 

2 Indicators of Growth in the Startup Ecosystem
  • The pace of growth in the startup ecosystem has increased to 15% year-on-year in 2018, while the growth of the number of incubators and accelerators has grown to 11%
  • Significantly, the number of women entrepreneurs stood at 14%, up from 10% and 11% in the previous two years.
  • Startups in the country have been able to create an estimated 40,000 new jobs over the year, taking the total jobs in the start-up ecosystem to 1.6-1.7 lakh
  • Bangalore has been listed within the world’s 20 leading startup cities in the 2019 Startup Genome Project ranking. It is also ranked as one of the world’s five fastest growing startup cities
3 Funding raised by Indian Startups in 2019
The Indian startups have gone on to raise sizeable ticket sizes from various global and domestic funds. The top 15 deals constituted about 40% of total deal value, demonstrating that most funds are valuing deal quality more than quantity.
 
Private equity deal volume in India rose for the second straight year, and while the average deal size declined slightly from the prior year, the total value of $26.3 billion in 2018 was the second-highest of the last decade.The num­ber of deals greater than $50 million increased from the previous year.
 
4 Drivers of Startup Ecosystem

Corporate Connect

Enterprises are realizing the disruptive potential of start-ups and are thus, partnering/investing in them. Examples of corporate support:

  • Facebook in partnership with Startup India disbursed cash grants of $50,000 each to the top 5 selected startups
  • 10000 Women program by Goldman Sachs is providing women entrepreneurs all around the world with a business and management education, mentoring and networking and access to capital. 
  • Microsoft Ventures Accelerator Program in India has recently picked up 16 startup

Government Support

Government of India is understanding the value of working with disruptive innovators across the value chain and using their innovations to improve public service delivery.

  • Department of Animal Husbandary and Dairying has conducted a grand challenge in association with Startup India to award top startups in 5 categories 10 lakhs INR. 
  • Small Industries Development Bank of India has launched a scheme to provide assistance to existing Small and Medium Businesses in need of capital for growth
  • Over 26 states in the country have Startup policies