Topics In Demand
Notification
New

No notification found.

Story of Scale-ups: An Analysis of 100 Scaled Start-ups
Story of Scale-ups: An Analysis of 100 Scaled Start-ups

December 8, 2021

347

0

Story of Scale-ups: An Analysis of 100 Scaled Start-ups

 

Scaling is a dram of every start-up but scaling right is what is more important. Right scaling at right time holds the key to a successful start-up. To understand this better, we analyzed a set of shortlisted successful scale-ups on various aspects and came out with insightful outcomes:

Key Scale-up Metrics for ~100 scale-ups:

  • These scale-ups have generated over $12 mn of revenue
  • Combined valuation stands at $200+ bn
  • Total employee count of these scale-ups is >0.2 mn
  • Cumulative funding raised by them is >$65 bn
  • These scale-ups went through 1000+ funding rounds

Other Key Outcomes:

  • Location Matters: Bengaluru, Delhi-NCR, Mumbai are the leading hubs accounting for more than 80% of the scale-ups
  • Vertical also play a key role: ~44% of scale-ups focus nn FinTech & RetailTech followed by EnterpriseTech, SCM & Logistics, HealthTech and Edtech
  • B2B vs. B2C: 53% of scale-up belong to only B2B; >70% B2B scale-ups catering largely to 4 key verticals: Fintech (24%), Enterprise Tech(18%), RetailTech (15%) and SCM & Logistics(15%) while >70% B2C scale-ups focused on RetailTech(26%), Fintech (25%), HealthTech(11%) and Edtech(8%)
  • Revenue: ~5X average revenue growth of scale-ups over the period of 2016-19
  • 2nd Innings: Entrepreneur experience plays a key role in scaling. >45% scale-ups are founded by former entrepreneurs’; Fintech, RetailTech most preferred sectors for more than 40% of 2nd gen founders
  • Large Funding: ~ $650 mn average funding raised by each scale-ups since their year of inception. scale-ups in Top 2 Sectors - EdTech and RetailTech is >$1 bn each
  • Time Variability: ~5 Years average time to scale for a start-up across all sectors. Time to scale depends on the vertical and business model like for FinTech its 5.7 years, for HealthTech its 4.7 Years and for SCM & Logistics its 2.9 Years

Scaleup1

The secret sauce to scale can be called Revenue + Funding + Timing + Experience

Scaling is a strategic thing and needs a combination of many parameters. Right from founders’ capability to a strong team; from funding to right timing, a lot should be focused upon by start-ups.  


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.