Topics In Demand
Notification
New

No notification found.

Indian Tech Start-ups:  The Wealth Creators
Indian Tech Start-ups: The Wealth Creators

February 22, 2022

1044

0

Indian Tech Start-ups: The Wealth Creators

2021 for Tech Start-ups: A Blog Series (3/8)

From the country’s perspective what is important is the wealth that a particular sector is creating. Sectors like IT, manufacturing, automobiles, etc have been creating wealth for India over the years. But one sector which everyone was closely watching is the start-up sector. This is one of the most talked-about sectors and people want to know its impact on the economy but now we have the answer for the same.

The most important impact that a sector can have on the economy is the creation of jobs and start-ups have cracked that perfectly:

  • Over 6.5 Lakh direct jobs created by tech start-ups till 2021 with a CAGR of ~30% since 2011
  • BFSI, EdTech, Retail and Retail Tech, FoodTech, SCM & Logistics witnessed the largest net new jobs being created, HealthTech is another major job creator for non-tech roles.
  • Indirect jobs have also rebounded on the back of online commerce, freelancers, and services segments

The valuation of tech start-ups has also risen significantly in past few years. The cumulative valuation of the ecosystem is a staggering $300Bn+ which is 2X increase from 2020. This valuation was at $10-20 Bn in 2014. Some insights around valuations:

  • 22% estimated share of start-ups at Series C+ funding stage (excluding Unicorns)
  • 13% estimated share of start-ups at Series A and/or Series B funding stage
  • 3% estimated share of angel or seed funding stage start-ups

 

wealth creator

ESOP buybacks by start-ups have started creating a lot of value for its employees. ESOPs are being actively simplified and gains transferred to employees as start-ups seek long-term commitments and attract high-quality talent. Apart from buy-backs, IPOs also prove to be major ESOP liquidation events. Some insights around ESOP buyback:

  • $400 mn value of ESOP buy-back programs
  • 6-7X higher buybacks than in 2020
  • 10000 number of employees benefiting from buy-backs in 2021
  • $900 mn expansion in ESOP pool vide revised policies
  • Browserstack, Swiggy, Upgrad, Zerodha, Udaan, Sharechat are few start-ups that executed >15 mn of ESOP buyback

So, all in all, tech start-ups in India are supporting the growth of India and empowering its employees.

 

 

 


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.