India Start-ups Report

Introduction
This startup report suggests that India is the fastest growing and 3rd largest startup ecosystem
globally. The growth of the software product industry in recent years has signaled a
transformation in India and across the globe. With increasing numbers of online active users
becoming consumers of e-commerce solutions and the related marketplaces, Indian startups
today are building global digital solutions to capitalize on this rapid growth. Hyper-growth,
capital availability and acquisitions are the leading drivers of the growing startup ecosystem in
India. Indian start-ups today are well positioned to address the entire Asian market opportunity
and also expand beyond the US and European region.
The Indian startup ecosystem is rapidly evolving driven by an extremely young, diverse and
inclusive entrepreneurial landscape. This is leading to emergence of focused domain solutions
for verticals like healthcare, agriculture, and education etc. An additional driving force is a fourfold increase in access to capital through VCs, angel investment and seed funding is allowing
Indian entrepreneurs to work on building tailor-made products for their customers.
Simultaneously, India is also working in addressing challenges on creating supportive
government policies in terms of ease of doing business, tax incentives, participation in
government contracts, availability of risk capital etc.

Key Highlights of the Startup Report

India currently has around 3100 startups in the technology product and digital space and its the
3rd largest startup ecosystem globally adding 800 startups annually. By 2020 there would be
more than 11500 startups, employing over 2.5 lakh (0.25 million) people. Indian startup
ecosystem has seen around 300 VC/ PE and 225 angel investment deals worth over USD 2
billion over the last few years. There are over 20 M&As worth approximately USD 1 billion
happened in the last 3 years.

The top six locations accounting for 90 per cent of start-up activity in India are Bangalore (28
per cent), Delhi-NCR (24 per cent), Mumbai (15 per cent), Hyderabad (8 per cent), Pune (6 per
cent) and Chennai (6 per cent). However, Kolkata, Ahmedabad, Kochi, Jaipur and
Thiruvananthapuram are the next emerging locations. Young entrepreneurs dominate the start-up
landscape with the average age of founders at 32 years, with 52 per cent being post graduates.
Interestingly, only 6 per cent of the start-ups have women founders.

The 10 emerging startups in India according to NASCOM

1. Cloudcodes
2. Data Resolve
3. GrexIt
4. iPay
5. InnovAccer
6. Uniken
7. Vayavya Labs
8. VDime Innovative Works
9. WebEngage
10. Wegilant Net

Geographical Location of startups in India (Cities)

Bangalore -617, New Delhi-504, Mumbai-309, Hyderabad-207, Pune-136, Kolkata-41,
Chandigarh-30, Kochi-26, Rest Of India-640. Mumbai is the emerging hub with Bangalore still
dominating due to the vast IT sectors presence, Pune did not emerge as expected, Kochi highly
disappointing despite being a emerging smart city and the reason being the fear of
entrepreneurial failures due to many failed startups in Kerala.

KEY PLAYERS
Recent successful startups are Flipkart in ecommerce market segment with $800million
evaluation started in 2007 funded by Accel partners, Tiger Global, Naspers and others. Inmobi;
A company meant for mobile ads started in 2007 with roughly $1billion evaluation funded by
SoftBank, Sherpalo and KPGB.
Rising startups are Snapdeal will more than $200Million evaluation funded by Nexus, Ebay,
Indo US and Bessemer. Myntra , a ecommerce oriented industry with focus on fashion garment
segment is estimate around more than $100 million funded by Premjiiinvest,Tiger Global and
Accel and Zomato with more than $50 million evaluation funded by InfoEdge and Sequola.
Some of the past successful ventures include Justdial, a search engine, Bharat matrimony, a
matrimonial site.
INDIAN ECOSYSTEM RATING
In a scale of 4 ; Indias startup ecosystem rates 2 in open market, between 1 and 2 in terms of
capital investment, slightly above 1 in terms of people adoption, less than 1 in Startup culture
and nearly 3 in terms of regulations rated on a global competitive scale.

NEW CONSUMER SEGMENTS FOR INDIAN PRODUCTS

The adoption curve with B2B shows large enterprises with telecom and health care sectors use
startup products. Also for non-core processes having value added services within telecom
sector and MIS within healthcare sector.
For B2C it is e-commerce growing significantly due to consumer awareness, improving
connectivity and payment scenario.

For B2b it is smart enterprises using startup products for core and non-core processes. Indian
products are gaining traction across retail, manufacturing and professional services.
For B2G ,The government uses Indian products for local governance and for information
management across public sector units.

CONCLUSION
This clearly shows most successful startups are in the field of Information technology and ecommerce. India has few startups in the field of life sciences and renewable energy which found
mainly in mature markets, which India is not yet ready for. India has risk averse nature for
investments for now and hence only real competition is in e-commerce sector while other fields
are still wide open.
Most of the above industries have risen significantly and on the verge of acquiring other startups
in the same domain.