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India's DeepTech Dawn: Forging Ahead

June 19, 2024 24721 0 Product/Startups nasscom insights

India's DeepTech Dawn: Forging Ahead

Indian DeepTech startup landscape is expanding rapidly, with startups leveraging advanced technologies like AI, Blockchain, IoT, and Robotics among others to not only transform industrial processes, but also solve major social and economic issues. Despite a sharp decline in funding in 2023, the Indian DeepTech startup ecosystem continued to see a lot of activity including new startup emergence across both established and emerging hubs, collaborations & partnerships, patents etc. While Indian DeepTech startups are making significant strides, they need more support to thrive and compete globally. This study, India's DeepTech Dawn: Forging Ahead, provides readers with insights into funding trends, innovation hotspots, collaboration trends, and areas in which Indian DeepTech startups need support, thus helping stakeholders understand the landscape better and take informed decisions.

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Key Findings:

 

  • Cumulative global VC investments in DeepTech startups reached $590 Bn in CY 2023, with ~3X more investments in CY2021-23 as compared to those in CY2014-20
    • Discussion on factors that led to this sudden increase in investments in DeepTech startups globally over the past 3 years
    • Overview of key sectors receiving funding in DeepTech startups along with some challenges that DeepTech startups are trying to solve across them
    • Capturing the shift in technology focus of global DeepTech startups in the post-pandemic era

 

  • Indian DeepTech ecosystem ranks 6th globally in terms of performance and strength of its enabling or supporting ecosystem
    • Comparing the performance of Indian DeepTech startup ecosystem with that of 8 other leading ecosystems
    • Comparing the strength of Indian DeepTech startups’ enabling ecosystem with that of 8 other leading ecosystems

 

  • CY 2023 saw the number of new DeepTech startups more than double over that in CY 2022, primarily due to a sudden growth in the number of AI-backed DeepTech startups
    • Breaking down the number of new DeepTech startups incepted in India in 2023 by their nature (inventive vs innovative), technology focus, and location.
    • Detailed analysis of funding trends in the Indian DeepTech startup landscape, and a comparison of how some of these trends compare with those across the overall Indian tech startup ecosystem
    • Understanding the role of incubators/accelerators in supporting the Indian DeepTech startups
    • Unearthing the key trends across the Indian DeepTech startup landscape with respect to investor participation, M&As, and patents

 

  • Funding remains a key challenge not just for many Indian DeepTech startups, but also for some stakeholders supporting these startups
    • Gauging the pulse of the Indian DeepTech startup ecosystem to understand the key challenges various stakeholder categories face while operating in this space
    • Understanding what interventions the stakeholders in the Indian DeepTech startup ecosystem want from the government to address their challenges
    • 5 recommendations from nasscom to the government for better supporting the Indian DeepTech startup ecosystem.

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