The NASSCOM-Zinnov Startup Report proposes that the state of the startup ecosystem to be just that, and frankly, it isn’t a stretch. Though more than a decade old, the last 5 years in particular have witnessed a blinding pace, what with ~ 7200 – 7700 startups being incepted and the ecosystem clocking high double-digit growth (12 – 15%). It’s even faster than the overall IT industry, which probably explains its great momentum and high interest level among stakeholders.
In this year so far (calendar year 2018) it has been quite remarkable. 1200 startups have been added, 8 new Unicorns recognized so far, and funding doubled over the previous year. Adding to this increasing list is the admirable 40% y-o-y growth rate of Advanced Tech Startups which is veritably leading the digital transformational journey. AI/ ML/ IoT, AR/VR, Blockchain & 3D Printing have strongly emerged particularly in the last 1 – 2 years.
Funding, often the pet peeve, showed much positive movement too – pleasantly enough – even as it witnessed a 100% Y-o-Y (Jan – Sep) cementing further, India’s position in this space.
If we splice the landscape, 50% of total startups are in enterprise software, fintech, marketplace and healthtech. Bangalore, Delhi NCR and Mumbai continue to remain primary startup hubs and have a ripe pool of talent. Most encouragingly, Tier 2 & 3 towns are at it too and many innovative ideas are coming out from there. In many ways, smaller cities have an advantage over the larger ones – increasing presence of incubators, tech parks, and affordable office spaces, should find a special mention. Kerala, Jaipur and Chandigarh are emerging as startup hubs.
There are more than 250 unicorns globally. The US & China have the highest capture and India ranks third, housing eighteen of them. By 2020, it is expected that 10 more will be added. A special mention of Udaan which was established in June 2016 and achieved Unicorn status in Sep this year in 26 months, registering the fastest time so far.
The startup epicenter is shifting towards Asia and India is certainly emerging as a hub. There are more than 400 cross-border startups – build for India build for the world. Setting up outside the country gives them access to larger markets.
Advanced tech has ushered in the Fourth Industrial Revolution. Increased data generation including storage and massively so, has led to penetration of AI and it has happened across industries – enterprise software, fintech, marketplace, healthtech, edtech (as mentioned earlier) among others which has changed the face of India. Well, it isn’t only about AI alone. Blockchain, AR/VR are steadily gaining momentum. 75% of blockchain startups have emerged in the last 3 years.
Enough said. There are many interesting insights that should not be missed. Hope you got a copy of the report. Members can access it from our website here.
Trust us, it’s not to be missed!