Topics In Demand
Notification
New

No notification found.

Business Trends which shaped last 3 months of start-up ecosystem (Q3 2021)
Business Trends which shaped last 3 months of start-up ecosystem (Q3 2021)

November 24, 2021

257

0

India’s start-up ecosystem has established itself over the years. Now we have legacy sectors like Fintech, Enterprise Tech, RetailTech and HealthTech which represents a major chunk of the start-up ecosystem, emerging sectors like Edtech, FoodTech, SCM Logistic etc. and few sectors like proptech, social commerce etc. which are in nascent stage. Start-ups under these verticals keep evolving and innovating. So what happened among these start-ups verticals in the last quarter?

  • ~50% deals were in 3 specific verticals - Enterprise Tech, FinTech and Ed Tech
  • Large ticket deals helped EdTech and FoodTech to account for more than 46% of total funding
  • FoodTech though stands high in term of deal value but due to monopolistic model it lacks far behind in deal volume 

Fintech Trends:

  • FinTech continues to dominate by raising 16% of the total Q3 CY21 funding and add 2 new unicorns: CoinDCX, BharatPe
  • Payments and BFSI investors raised ~55% of total Fintech funding
  • Growth- stage funding dominated funding deals by value (~73% share)
  • Crypto Fire: Due to high growth, increased popularity and adoption Crypto has seen a major boom, large entrepreneurs and VCs are actively investing in Crypto start-ups
  • IPO Season: Many Indian Fintech start-ups have filed their DHRP with SEBI, plan to raise up to US$ 3.7B through IPOs
  • Buy Now Pay Later: Low credit card penetration in India and digital payment boost is helping this area to grow, a high potential market which is expected to reach US$ 100B by 2025

 HealthTech Trends:

  • E-pharmacy, teleconsultation, personal health management, EHR/EMR and increasing use of AI/ML gain traction
  • Preventive healthcare is expected to act as a catalyst for HealthTech growth in the next 5 years
  • New, more digitally educated consumer segments are pushing for innovative health and wellness solutions

RetailTech Trends:

  • RetailTech continues to see good momentum with 16% of the total Q3 CY21 funding
  • Marketplaces catch investor’s eyes and raised  ~25% of total RetailTech funding. B2B marketplace is getting lot of traction.
  • Aggressive national and overseas expansion: Lenskart is looking to expand into Southeast Asia and Middle East with proceeds from recent round of US$ 220M

EnterpriseTech Trends:

  • India’s EnterpriseTech sector remains attractive driven by increasing demand for tools in the world of big data, cloud, mobility, IoT and cybersecurity
  • SaaS / AI continue to attract investor’s interest with ~81% of total EnterpriseTech funding
  • Growth - stage funding dominated with 56% of total EnterpriseTech funding
  • Strong growth in EnterpriseTech is driving investments in reskilling the talent in new growth areas such as SaaS, cybersecurity, AI, 5G, IoT, product engineering
  • SaaS companies building strategies around penetrating SMB market, small retailers, large SaaS companies setting up office in rural and non-urban areas
  • Rise in cyber threat increases demand for AI driven products / solutions

Edtech Trends:

  • Received funding of ~$1.5 bn in Q3CY2021
  • EdTech is going consolidation phase start-ups with mature start-ups focusing on expansion and newer start-ups building innovative solutions
  • EdTech platforms focus on holistic curriculum to attract new-age learners, platforms have also expanded to domains other than academics
  • 3 unicorns added: Vedantu, upGrad, and Eruditus

Verticals are evolving and getting innovate with time. On one side legacy sectors sees addition on newer start-ups and stock market listing while emerging sectors are expanding their business portfolio to increase their reach and penetration. A lot is happening in this start-up era.


That the contents of third-party articles/blogs published here on the website, and the interpretation of all information in the article/blogs such as data, maps, numbers, opinions etc. displayed in the article/blogs and views or the opinions expressed within the content are solely of the author's; and do not reflect the opinions and beliefs of NASSCOM or its affiliates in any manner. NASSCOM does not take any liability w.r.t. content in any manner and will not be liable in any manner whatsoever for any kind of liability arising out of any act, error or omission. The contents of third-party article/blogs published, are provided solely as convenience; and the presence of these articles/blogs should not, under any circumstances, be considered as an endorsement of the contents by NASSCOM in any manner; and if you chose to access these articles/blogs , you do so at your own risk.


© Copyright nasscom. All Rights Reserved.