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DeepTech Ecosystem in India: Trends and Potential Impact
DeepTech Ecosystem in India: Trends and Potential Impact

September 27, 2022

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The DeepTech ecosystem has been showing strong growth over the years. Though scalability of DeepTech start-ups is still an issue, the overall ecosystem is showing good growth. Trends that led to the growth of the DeepTech ecosystem in India are summarised below.

  • Exponential Adoption of DeepTech in the last decade: Over 50% CAGR of the top 5 DeepTech technologies: AI, IoT, Big Data & Analytics, Blockchain, and AR/VR.
  • Inventive DeepTech start-ups are creating patentable products and solutions with a 72% share of inventive DeepTech start-ups that have filed for at least one patent. Of the 1400+ patents filed by a set of DeepTech start-ups, 92% of patents were filed in the 2016–21 cohort.
  • Consumer-centric solutions gain traction: >3X increase in Deep-Tech adoption by B2C start-ups as more than 25 sectors are leveraging B2C models. B2C growth has been driven by BFSI, Health Tech, EdTech, and Fitness & Wellness, which account for 57% of DeepTech companies founded during the pandemic (2020-21).
  • DeepTech Expansion: DeepTech is expanding its reach into sectors such as Environment Tech (air quality monitoring, waste management, etc.), Aviation (earth imaging, drone manufacturing, etc.), Maritime & Defense, and Life Sciences (drug discovery platforms, genomic solutions, etc.)
  • Popular use cases across sectors are attracting investment: SCM, HealthTech, BFSI, Enterprise Tech, and AgriTech each raised over $200 million in 2021 . SCM and logistics were the most funded sectors in 2021, with DeepTech start-ups raising funding across use cases like drone delivery, autonomous delivery bots, cold chain monitoring, and fleet management. The top funded use cases were patient health record analytics, logistics management, AI based neo banking, driver safety monitoring, and farm intelligence solutions, raising 40% of the total funding.

DT1

Strong trends have been pushing the growth of the DeepTech ecosystem over the years. It is expected that if the DeepTech ecosystem scales, it has the potential to have a substantial impact on the larger ecosystem and India’s growth. DeepTech has been creating impact and has the potential to create further impact through the following factors:

  • Second-Generation Entrepreneurs:Large DeepTech firms give rise to second-generation entrepreneurs. Mu Sigma, a DeepTech unicorn, has become a launchpad for many tech and deeptech start-ups in the ecosystem, giving rise to second-generation entrepreneurs. Almost 12+ start-ups
    • For example, Blackbuck, Innovaccer, and Highradius.
  • Job creation: 4000+ people employed across 14 potential DeepTech unicorns in India; headcount expected to double by 2026.Large DeepTech companies' employee growth over the last two years: Grey Orange (29%), Addverb Tech (133%), Netradyne (160%), and Locus (38%).
  • Achieving SDG goals: From smart manufacturing to reliable healthcare, DeepTech is creating solutions for sustainability goals.

Now there are certain sustainable development goals which can be very well addressed by DeepTech solutions and can impact human lives in a big way. We have covered a lot of use cases in the report, like:

  • Zero Hunger: crop failure due to climate change, poor soil health, poor distribution of supply Now these challenges can be addressed by tech intervention like IoT based sensors for controlled environments, AI based soil monitoring with customised insights and solutions for increasing yield/hectare, and AI and Big Data based supply chain management for Agri-Tech.
  • Good health and well-being, safe drinking water, affordable and clean energy, and many other benefits
  • Mainstream implications include data sovereignty, staff supplementation, resource management, transparency, and traceability.

 DT2


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