Start-up India

Momentous Rise of the

Indian Start-up Ecosystem
Edition 2015

Supported by Google for Entrepreneurs

Start-up India
Momentous Rise of the
Indian Start-up Ecosystem
Edition 2015

Supported by Google for Entrepreneurs

Copyright 2015

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 Foreword
India has truly become a start-up Nation. Since 2010, power, healthcare, employment, and education.
The Indian technology start-ups landscape has seen a Further, start-ups are empowering SMBs by
tremendous growth towards creation of innovative start- enhancing their customer reach and overall
ups and India, a home to a new breed of young start- business productivity.
ups, has clearly evolved to become the third largest
After the terrific success of first edition in
base of technology start-ups in the world. Within one
2014, the second edition of NASSCOM-Zinnov
year, the number of start-ups in India has grown by 40
report titled Start-up India Momentous Rise
per cent, and this number is expected to cross 4,200
of the Indian Start-up Ecosystem is a
R Chandrashekhar by the end of 2015.
treasure trove of facts and trends on the
President, NASSCOM Multiple indicators point to the fact that this ecosystem Indian start-up ecosystem. The report clearly
is not only undergoing rapid evolution, but is also identifies the current scale and size of the
becoming increasingly attractive. With over 100 per start-up landscape, factors that are impacting
cent growth in number of PE/VCs/Angel investors along the growth of the overall ecosystem and steps
with a 125 per cent growth in funding over last year, that need to be taken to make the environment
one can safely say that the Indian start-up ecosystem more conducive for start-ups.
has risen to the next level. The total funding in the
We hope this report would be useful to you
India based start-ups is estimated to be nearly $5
and we welcome your feedback and comments
billion by the end of 2015. Various central and state
at research@nasscom.in
Pari Natarajan government start-up initiatives are further supporting
this progressive phase of start-ups in India.
CEO, Zinnov
This maturing start-up ecosystem is contributing to the
Indian economy in multiple ways. In addition to R Chandrashekhar Pari Natarajan
enhancing the lifestyle of citizens, start-ups are President, NASSCOM CEO, Zinnov
creating innovative technology solutions that address
key problems that India as a country face around
Acknowledgement
This report has been co-developed by NASSCOM and
Zinnov through a comprehensive four month study to
understand the Technology Product & Digital Start-ups
Landscape in India.
The preparation of this report has been facilitated by a
number of organizations and people who have extended
great help to the NASSCOM and Zinnov team. We wish
to sincerely thank all of them for their valuable
contributions without which this report would not have
been possible.
First, we would like to thank all the ecosystem
members and other start-up colleagues, who went out
of their way to provide detailed inputs and perspective
of their services/ clients/ markets etc. They offered
yeoman service to this project by providing the requisite
data and insights as required by the team.
This study has been greatly enriched by the
valuable insights and detailed inputs provided by
various investors, angels as well as other key
stakeholders in the ecosystem. We would also like
to acknowledge the special contribution made by
Google and Microsoft for supporting us on various
policy related aspects as well as formulating and
finalizing the numbers.
Finally, we would like to specially acknowledge the
support extended by our 10K partners - Google for
Entrepreneurs, Microsoft Ventures, Kotak Mahindra
Bank, IBM and Amazon Web Services to support
NASSCOM 10,000 Start-ups Program.
We would also like to give a special mention to the
NASSCOM research team and Zinnov Management
Consulting for their efforts and contribution
towards the ideation, execution and completion of
this report
6 reasons why Bharat is a Start-up Nation

WHY INDIA?
3 rd Ranking Among
Global Start-up
110
Number of Incubators/
Accelerators in India,
growth of 40% since
Ecosystem 2014
I see Start-ups,
technology and
innovation as exciting
and effective instruments Young and aspiring
~$5 B Total Funding in 2015, 28yrs minds - Average Age of
for Indias transformation, growth of ~125% over Start-up Founders1
2014
and for creating jobs for

our youth.

Number of PE/VC firms Top VC/PE Firms in India

156 grown by over 100% 8/10 are Foreign
Shri. Narendra Modi, since 2014
Hon'ble Prime Minister- India

Notes: 1Analysis for Bangalore start-ups; Bangalore has the youngest average founders age among the top 20 start-up ecosystems

Start-up India
07 Momentous Rise of the Indian Start-up Ecosystem
Innovative minds are accelerating the growth of
Indias economy

Start-ups Contribution to the Indian Economy

Enhancing Citizens
Life Style 1

2 Building innovative
solutions

Growing Opportunities
for Stakeholders 3

Start-up India
08 Momentous Rise of the Indian Start-up Ecosystem
Technology driven start-ups are trying to disrupt
every aspect of a consumers life...
TRADITIONAL Start-up AGE TRADITIONAL Start-up AGE

Before moving to Delhi Before moving to Delhi Shifts to new house Shifts to new house

lStores lGoes for on-demand storage lOrders furniture

for storing unnecessary items Visits furniture
unnecessary items market to buy sofa online
in warehouse
lPurchases groceries
Face language using the mobile app
problems with local
Arrives at Delhi airport Arrives at Delhi airport vegetable vendor
lExplore a nearby
Struggles to find a gym online and
lStands in queue to lUses mobile app to book a local good gym wears a fitness
cab to the temporary band
books a cab from
accommodation
pre-paid booth

Settles in new house Settles in new house

First few days in Delhi First few days in Delhi
Son struggles to lSon uses mobile app
Reaches Paharganj lBooks an affordable find auto rickshaw for test preparation and
and searches for hotel online when he goes for book auto rickshaw
budget hotel tuition
lSelects and buys a
lGoes to mobile lMakes a recharge Unable to find shop Sari from huge range
recharge shop to using mobile app to buy South Indian available online
top-up sari for wife
lVisits a property lSearches for houses on lEasily finds a plumber
rent online and directly Finding a plumber
broker to get a who serves their area
contacts owner to get leaking pipeline
house on rent online
is a challenge

Start-up India
09 Momentous Rise of the Indian Start-up Ecosystem
...Leveraging technology to solve problems that have
been plaguing the country for decades
1 Power 2 Infrastructure 3 Healthcare 4 Financial
Inclusion
GDP loss due to Traffic congestion Per 1700 Rural households
$68 Bn electricity shortage $10 Bn costs per year 1 doctor persons 120 Mn without bank
accounts

IoT based solution Intelligent traffic Web-based and

to make diesel monitoring system mobile platform Partnership with
generators more with real time alerts for patients to banks and tablet
efficient connect with doctors banking platform to
Big data and facilitate banking
Solar/wind energy analytics to tackle
forecasting and IT based healthcare services
issues such as solution to predict
scheduling; Online Simpler financing for
infrastructure, physical traits and
renewable energy people through
healthcare and assess the probability
marketplace access to credit
education of developing a range scores and other
of diseases related information

Agricultural Skilling and

5 Productivity 6 Employment 7 Education

48% Of agricultural yield 500 Mn Governments skilling 23% Gross Enrolment Ratio
of Asian countries target till 2022 in higher education

Web/mobile based Recruitment platform Affordable technology

ICT for farmers to for grey-collared to personalize learning
improve their industry to connect & increase access to
efficiency and candidates to job high quality education
increase produce opportunities
SMAC based supply English learning Online platform to
chain family of mobile app for connect scholarship
software for rapid speakers of regional promoters to
growth of agri- Indian languages scholarship seekers
businesses directly

Start-up India
10 Momentous Rise of the Indian Start-up Ecosystem
Creating significant growth opportunities for every
stakeholder within the ecosystem
1 2
Employment FDI Growth
With huge rise in the number Global investors are investing
of start-ups in India, employment in the Indian start-up ecosystem
opportunities are being generated leading to increased FDI
Start-ups raising the bars
Growth in Employment high at a global canvas - #6
Opportunity Start-ups in billion dollar club
$1.9 Bn Funding from
250K top deals in 2015
Top Deal in 2015
$700 Mn from Tiger Global
& Steadview Capital
$635 Mn from investors
80-85K including Alibaba Group,
and SAIF Partners
$500 Mn from investors
including Alibaba Group,
2015 2020P SoftBank & Foxconn
$150 Mn led by
Investment AB Kinnevik &
Tiger Global
Source: Economic Times, e27 Report, ASSOCHAM Report, Forbes, YourStory Report, Zinnov Analysis
Start-up India
11 Momentous Rise of the Indian Start-up Ecosystem
3 4
Multiplier Effect SMB Growth
Traditional businesses are being Start-ups are empowering
positively impacted through SMBs in enhancing their reach
increased spending by start-ups and serve customers better
Advertising/Marketing Taxi aggregators :
Increase business for
~$600 Mn cab drivers through
easy discoverability
Estimated spend of
eCommerce players eCommerce firms:
on ads in 2015 New channel of sales
and enhanced geographic
reach for offline retailers
Logistics/Warehousing
Accommodation start-ups:
$950-1,900 Mn Improving business of
budget hotels through
Estimated spend of
standardization
eCommerce industry
by 2017-2020 on
infrastructure, logistics Hyperlocal eCommerce
and warehousing firms: Offering new
opportunities to kirana
shops and grocery stores
Deep-dive into the Indian Start-up Ecosystem
Objective
This report analyzes the current scenario and emerging trends across the various dimensions that define
the Indian start-up ecosystem, and gauge India's position as a global start-up hub that is becoming
attractive for investors, start-ups, & corporates

1 2 3 4 5 6

Landscape Funding Verticals Incubators/ Talent Policies

Accelerators
Executive Summary (1/2)
1 Landscape
l India ranks 3rd globally with more than
4,200 startups
l 2.3X growth in number of active
investors, growing digital consumer
base, mobile first population,
improving political environment, and
high interest from global investors are
few of the key drivers
l Promising start-up verticals for 2015:
IoT, Analytics, Health-tech and
Hyperlocal eCommerce
l Bangalore, NCR and Mumbai continue
to be the top start-up destinations
with nearly 65% of the total Indian
start-ups.
l Driven by high share of B2C focused
start-ups, NCR witnesses the
maximum amount of funding
l Hyderabad, Chennai, Pune, Jaipur and
Ahmedabad are the major upcoming
start-up locations
Start-up India
14 Momentous Rise of the Indian Start-up Ecosystem
2 Funding
l Funding is estimated to grow by 125%, from
$2.2 Bn in 2014 to $4.9 Bn in 2015; much
higher as compared to cumulative funding
of ~$3.2 billion over the 2010-14 period
l More than 390 start-ups have received
funding as compared to 179 start-ups in
2014. While overall VC/PE funding has
grown by 2.2X over 2014, seed stage VC
funding has grown by an incredible 6.5X.
l Total number of active investors have grown
by 2.3X from 220 in 2014 to 490 in 2015
l Global investors and corporates are betting
high on India market. Tiger Global, Sequoia
Capital, Softbank, Warburg Princus, and
Alibaba are among the top investors,
participating in deals worth more than $500
mn
l Investors have access to more exit
opportunities with more than 65 M&A deals
in 2015, worth close to $800 Mn
3
Verticals
B2C Segment
l eCommerce start-ups and aggregators continue to
witness maximum share of the investment
l Hyperlocal eCommerce and consumer services
emerge as the top areas witnessing maximum
investment growth
B2B Segment
l Driven by high growth in niche eCommerce and
hyperlocal eCommerce, start-ups enabling
eCommerce emerge as the top funded category in
the B2B space
l Analytics across various domains consumers,
supply chain, recruitment is another growing
segment
Emerging Verticals
l IoT, Health-tech and Payments are witnessing
positive growth and strong investment
Whitespaces
l Robotics, 3D printing and Machine learning are few
emerging areas, expected to grow in near future
Executive Summary (2/2)
4 Incubators/
Accelerators
l Number of incubators/
accelerators grew by 40% from
~80 in 2014 to ~110 in 2015
l Nearly 50% of the
incubators/accelerators are setup
outside NCR, Bangalore and
Mumbai, providing an opportunity
to entrepreneurs from non-metro
cities
l Colleges and corporates are
increasingly setting up their
incubators/accelerators
l The industry sees a new trend
towards vertical focused programs
being setup by few
incubators/accelerators
Start-up India
15 Momentous Rise of the Indian Start-up Ecosystem
5 Talent
l The start-ups are creating a new world
of talent
l Executives from national and
international conglomerates are joining
top positions at start-up ventures or
starting their own ventures
l India is the youngest start-up nation in
the world- 72% of the founders are less
than 35 years old
l ~50% rise in share of female
entrepreneurs in 2015 over 2014,
driven by 4.5X growth in funding to
women driven start-ups
l Start-ups are providing an exhilarating
work culture along with attractive
monetary benefits to lure new and
retain existing talent
6
Policies
l Prime minister announced integrated
platform to promote and boost
entrepreneurship in the country
l Government policies and initiatives are
aimed towards improving the overall
start-up ecosystem
l Industry expects more support and
focus on improving ease of doing
business and facilitating exit
opportunities
SECTION 1
Start-up LANDSCAPE

1 6
2 3 4 5

Funding Verticals Incubators/ Talent Policies

Landscape Accelerators
The country has moved up to 3rd position and has the
fastest growing base of start-ups worldwide
United United
States Kingdom India Israel China
Technology
Driven Product
Quick Strong Growth
Start-ups by
Facts Indicators - India
Key Countries
47,000- 4,500- 4,200- 3,900- 3,300-
48,000 5,000 4,400 4,1002 3,500

Technology Start-ups by Year of Inception

1
~156 Active VCs/PEs in 2015

NASSCOM launches
the 10,000 Start-ups 1
Program ~2,100 ~292 Active Angels in 2015
75%
~1,200
70%
~700 ~110 Incubators/ Accelerators

2013 2015 2020P

Source: Zinnov Research & Analysis, The Next Web, LeWeb Blog
Notes: 1Active Angel (or VC/PEs) is defined as an investor who has made at least one investment in 2015. Presented numbers are for Jan-Sep 2015 period.
2
Number of tech start-ups in Israel have been estimated from the total number of start-ups in 2015 using % of tech start-ups in 2014

Start-up India
18 Momentous Rise of the Indian Start-up Ecosystem
With rapid growth in the industry ecosystem across
all dimensions
rd
Total Start-ups to grow
multifold
3 Largest Share of Women Founders1
start-up location globally
~9%
4,200 - 4,400 12,000+ ~91%
Male Female
2015 2020P

80-85K 3-4
More than 65% of
Employed in Start-ups1 the start-ups are located Start-ups are born
in NCR, Mumbai and each day
Bangalore
$2.5-2.7 Mn ~110
Average valuation # of Incubators/
is on rise3 Accelerators

~$4.9 Bn Bangalore ranked 15 65+

among Global Start-up
Investments in Start-ups2 Ecosystem # of M&A Deals
Represents the respective
number has witnessed
$ 95 Mn growth since 2014
Worth of funding
weekly

Source: Zinnov Research & Analysis, Deal Curry, AngelList, Crunchbase; Compass report on The Global Start-up Ecosystem Ranking 2015
Notes: 1Based on a sample set of 600 start-ups formed over 2010-15 period. 2Estimated based on average deal size and number of deals(extrapolated based on number of deals in first
three quarters). Deals worth 4.1 Bn already closed by end of Q3-2015. 3To calculate the average deal sizes of more than 50 millions were not considered.

Start-up India
19 Momentous Rise of the Indian Start-up Ecosystem
Inspiration from successful start-ups, huge market
opportunity and an enabling support system have
been the key drivers

Key Drivers

Inspiration from High Growth of Investor Tech driven large Digital Nation with Entrepreneurial
Role Models Ecosystem Consumer and Mobile-First Consumer Environment
SMB Market Government Policies
Successful start-ups act as
inspiration for aspiring
140 Mn Promoting bank financing
2.3x Smartphone for start-ups through Start-
entrepreneurs 300 Mn
1 Users1 up India, Standup India
Growth in # of investors Internet Users
Unicorns
since 2014 213 Mn
$ 16 Bn Mobile Internet Growing Platform
eCommerce Users1 Large number of events,
2.2x awards, coverage platforms
Industry1
Industry Leaders 41% help in recognition,
Growth in # of start-ups
eCommerce networking
funded since 2014
10 Mn sales through Incubators/ Accelerators
Tech Ready mobile1 Large base of ~110 helps
SMBs1
in mentoring and raising
funds

Source: Zinnov Research & Analysis, Press Articles

Notes: 12014 Number

Start-up India
20 Momentous Rise of the Indian Start-up Ecosystem
...Gained further momentum in 2015 with growing
interest from corporates and other stakeholders
l Increasing number of high net-worth individuals consider start-up as a viable investment option over
Viable Investment other traditional investments such as gold, stock and real estate
1 Support l Number of active angel investors have grown from 115 in 2014 to 292 in 2015

Sharing and building
2 upon success
l Successful Indian entrepreneurs giving it back to the eco-system and investing time and
money on young start-ups
l Business tycoons such as Ratan Tata, Azim Premji have already started investing in
Ratan Tata

start-ups. Over 10 investments in Start-ups made by Mr. Tata till date Azim Premji

3 Media Support
l Organizations dedicated to start-ups are covering all aspects extensively and are seeing
massive interest from the audience
l Leading dailies are also focusing on start-ups. Excited freelancers building-up
l ET1 has dedicated a full page for covering start-ups Start-ups & Tech. Alone has
published >170 articles in Sep 2015

l Enterprises are realizing the disruptive potential of start-ups and are thus, partnering/ investing
Interest from in them
4 India-based
Conglomerates
l Wipro has setup a $100 Mn VC fund to invest in start-ups in data, open source and industrial
internet space. While, IBM is partnering with 100 Indian big data and IoT start-ups

Global Ecosystem
5 Accelerated
l Global companies and investors such as Alibaba Group, Soft Bank, Sequoia and Foxconn are
starting to invest in the Indian start-up ecosystem
l Commitments to invest in India in the next few years have been made along with creating India
specific funds

Source: Business Standard, Economic Times, Zinnov Analysis

Notes: 1Economic Times

Start-up India
21 Momentous Rise of the Indian Start-up Ecosystem
Majority of the 1200 new start-ups are B2C, primarily
present in 3 segments eCommerce, consumer services
and aggregators

eCommerce Consumer Services Aggregators Enterprise Software

13-15% 10-12% 9-11% 8-10%
eCommerce is still Start-ups offering a Vertical remains a New software
witnessing strong new wide variety of strong focus for new companies are trying
start-up activity in consumer services start-ups with to differentiate with
niche areas are cropping up aggregation in unique unique product/
sub-segments service offerings

Hyperlocal eCommerce Health-Tech Edu-Tech Analytics

8-10% 6-8% 6-8% 5-7%
Start-ups are offering Traditional healthcare Edu-tech start-ups are Start-ups are applying
various hyperlocal facilities and services leveraging technology analytics to benefit
services in metro and are being disrupted by in new ways to firms in various
tier-1 cities health-tech start-ups enhance leaning for functions
students

eCommerce Enablers Social Platforms Enterprise Software

5-7% 5-7% 16-18%
Driven by rise of the New social start-ups Other emerging areas
eCommerce segment are focusing on are IoT, Payments, Ad- x%
firms are offering bringing together tech, Media-tech, Fin- Share of vertical in
specialized services people with specific tech , Recruitment, etc. total # of new start-
to support operations interests ups in 2015

Start-up India
22 Momentous Rise of the Indian Start-up Ecosystem
66% of start-ups are concentrated in the top 3 cities
of Bangalore, NCR and Mumbai

Distribution of Indian Startups (4200+)

Major Startup Focused Indian Cities Top Cities
1 Bangalore: 26%
Focus areas of Startups 1. Bangalore
eCommerce Hyperlocal
Consumer eCommerce 2. NCR
Services Analytics
3. Mumbai
2 NCR: 23%
Focus areas of Startups
eCommerce Aggregators Emerging Cities
eCommerce Hyperlocal
Enablers eCommerce
1. Chennai
3 Mumbai:17%
Focus areas of Startups
2. Pune
Aggregators Hyperlocal 3. Hyderabad
eCommerce eCommerce

Hyderabad: 8% 4. Ahmedabad
4
Focus areas of Startups 5. Jaipur
Consumer Payments
Services IoT

5 Chennai: 6% City Index based on:

Focus areas of Startups (a) Number of startups
Top Cities (b) Number of investor deals
Enterprise Analytics
Software (c) Amount of funding
Emerging Cities (d) Enabling ecosystem (such as proximity of investors,
6 Pune: 6% incubators, accelerators and coworking spaces)
Focus areas of Startups
Hyperlocal eCommerce
eCommerce
Bangalore is evolving fast to become a global startup hub, closely
followed by NCR and Mumbai

Source: Zinnov Analysis, Zinnov Startup Database Index Score

Top Cities Emerging Cities
(0-5) >4.8 4.5-4.8 4-4.5 0.75-1.5 0.5-0.75 <0. 5

Start-up India
23 Momentous Rise of the Indian Start-up Ecosystem
Emerging cities are targeting start-ups by focusing on
initiatives that strengthen their value propositions
CHENNAI PUNE HYDERABAD

Key Trends Key Trends Key Trends

Emerging as the SaaS Hub Talent Availability Good Environment Government Support
Has large base of of B2B SaaS product Technical talent due Cost effective real Forming incubation center T-Hub in
companies triggered by the success of to presence of large estate collaboration with ISB, NALSAR and IIIT
ZOHO supported by right set of domain number of technical Good connectivity/ Hyderabad to accommodate 1,500
talent universities infrastructure companies
However, sales/ Pleasant weather Provide technical, legal, IP support
marketing expertise Announced $100 Million venture capital
is still lacking fund
Key Start-ups Key Start-ups Key Start-ups

Key Investors Key Investors Key Investors

JAIPUR Enabling Environment: Factors such as lower costs due to lower rentals and lower costs of living,
good talent pool with low attrition and proximity to Delhi NCR
OTHER Ecosystem: Ahmedabad has incubators, mentors and a well-entrenched ecosystem for start-ups.
CITIES AHMEDABAD
Also, IIM-A has been fertile ground for entrepreneurship

KOCHI Policy Support: Kerala Start-up Mission to promote start-ups in the state. Kochis start-up village is
planned to incubate 1,000 product start-ups. Also, NASSCOM recently setup its start-up warehouse
as part of its 10,000 start-ups initiative

Source: Your Story, Kerala Government, Business Standard

Start-up India
24 Momentous Rise of the Indian Start-up Ecosystem
SECTION 2
FUNDING TRENDS

2 6
1 3 4 5

Landscape Verticals Incubators/ Talent Policies

Funding Accelerators
Funding is estimated to grow by 125%, from $2.2 Bn
in 2014 to $4.9 Bn in 2015
1
~$6.5 Bn + Total funding would be much higher if
start-ups incorporated before 2010
$2.2 Bn ~$4.9 Bn1 are considered, such as:

Total Funding $700 Mn $150 Mn

in Start-ups 5%
12 $120 Mn $110 Mn

2014 2015 (E) $100 Mn $60 Mn

Start-ups Funded Number of Deals3 Total Investments Active Investors

(USD Mn)

1X 5% 3X 46
2X 2. 12 2.
2. 458 2.3X 2.2X 156 2.0X
400 4,705
224 25
436 2.0X 75 292
179 2,110 4X 2.5X
194 115
48 196
2014 20152 20144 20152,4 2014 2015E 2014 20152

Growth from Others (Corporates,

Angel Investors PEs/ VCs
2014 to 2015 Incubators, Accelerators)

Notes: 1.Estimated based on average deal size and number of deals(extrapolated based on number of deals in first three quarters). Deals worth 4.1Bn already closed by end of Q3-2015.
Number includes funding in Snapdeal, Olacabs, Paytm also. 2.Presented numbers are for Jan-Sep 2015 period. 3. Defined as a transaction between start-up and investor. A single round
of funding could be counted as multiple deals as there could be multiple investors investing. 4.In addition, 17 deals in 2014 and 59 deals in 2015 did not have investor details. 5.Defined as
an investor who has made at least one investment in that year

Start-up India
26 Momentous Rise of the Indian Start-up Ecosystem
NCR, Bangalore and Mumbai account for over 93% of the
total investments
1
Total Start-up Investments by Location

Bangalore represents a fair mix of

investment across B2B and B2C as
2015
compared to other top locations
$ 2.3 Bn (E)
83% of the investments towards
B2C start-ups
NCR
Paytm - $680 Mn, Snapdeal - $ 500 Mn
Ecom Express - $133 Mn and Oyo Rooms - $100 Mn

Emerging Start-up
Cities
Chennai Pune
2015 Mumbai $ 100-110 Mn $ 80-90 Mn
$ 1.1 Bn (E)
Contributing over $200Mn funding by 2015
95% of the investments towards
B2C start-ups
Bangalore 2015
Ola Cabs - $ 625 Mn, Freecharge - $80 Mn
$ 1.2 Bn (E) Antuit - $56 Mn, Big Basket - $50 Mn,
Homelane - $50 Mn, Little - $50 Mn, Urban
70% of the investments towards Ladder - $50 Mn, Zovi - $50 Mn

Start-ups deals in 2015 with more than $50 million B2C start-ups

Notes: 1Additional estimated investment for Q4-2015 has been split across the three geographies based on the investment in the respective cities during the first three quarters. Deals
above $100Mn were not included while splitting the investment across these cities.

Start-up India
27 Momentous Rise of the Indian Start-up Ecosystem
Global investors and corporates are betting high on
India market
Top VC/PE Firms (20151) Key Trends

COMPANY INVESTMENTS2 KEY VERTICALS I

Shopclues GOR ZO Rooms IoT; Mediatech; Edutech; eCommerce and Aggregators are key verticals
1 Tiger Global
$100Mn $45 Mn $24 Mn Gaming focus across all the investors
HomeLane Oyo Rooms Grofers Consumer Services;
2 Sequoia Capital
$52 Mn $100 Mn $23 Mn Healthtech; Gaming

Ecom Express
3 Warburg Pincus
$133 Mn
eCommerce Enablers II

Top Overseas Corporate Investors (20151) High Interest from Foreign Funds
Leading VC/PE firms
COMPANY INVESTMENTS2 KEY VERTICALS
8/10 are foreign-based

Paytm Snapdeal
1 Alibaba
$635 Mn $500 Mn
eCommerce, Payments III
Oyo Rooms Snapdeal Overseas corporates are aggressively looking to
2 Softbank
$25 Mn $500 Mn
eCommerce; Aggregators
invest in Indian start-ups
Foxconn Technology Snapdeal
Plans to invest over $1 Bn in Indian
3 Group eCommerce start-ups over next 2 years
$500 Mn
Plans to invest $100 Million in
Top Indian Last Gen Start-ups (20151) India in next 3 years

COMPANY INVESTMENTS2 KEY VERTICALS

IV
Little Zovi eCommerce; Consumer Start-up founders are also investing in Indian start-ups
1 Paytm
$50 Mn $50 Mn Services
Invested in 5 start-ups namely, Belong.co,
NestAway Zinka Bewakoof, Routofy, Shadowfax Technologies,
2 Flipkart
$12 Mn NA
Aggregators
UrbanClap and Zenatix
Ola Cabs Mswipe Technologies Payment Solutions Kunal Bahl, (Founder, Snapdeal)
3 NA

Notes: 1Till date, 2Investments mention the full value of the deal, the complete amount may not come from the respective VC/PE firm listed, but from multiple investors.

Start-up India
28 Momentous Rise of the Indian Start-up Ecosystem
B2C segment dominates, led by eCommerce &
aggregators; B2B funding evolves as eCommerce enablers
and analytics emerges as focus areas
Focus Areas of Investment Split by
Investment Growth
Start-ups Customer Segment
(2014-15)
(2015)
1
Share of B2C Focused Investments

2014 2015 36%

60%
eCommerce
eCommerce
83% 95% 33%
26% Aggregators

B2C Aggregators 8%
Consumer
Services
3%
$4.9 Bn Hyperlocal Hyperlocal
7%
eCommerce eCommerce
Total Investment
Share of B2B Focused Investments

2014 2015
30% 48%
17%
250% eCommerce
Enablers
eCommerce
Enablers
B2B
28% 18%
Enterprise Analytics
Software

Source: Zinnov Product/Digital Start-up Database

Notes: 1Share of investment for the respective year and segment

Start-up India
29 Momentous Rise of the Indian Start-up Ecosystem
While overall PE/VC funding has grown by 2.2X over 2014,
seed stage VC funding has grown by an incredible 6.5X

Year on Year VC/PE Investments Illustrations of Start-up by Stage of Funding Received

by Stage of Funding Across Years

Average Deal Size

$4,705 Mn Seed Stage Early Stage

$2,110 Mn

$0.5 Mn $0.5 Mn $3.5 Mn $10 Mn

$36 Mn $3,756 Mn

$45 Mn $1,707 Mn
$0.5 Mn $0.4 Mn $2.5 Mn $2 Mn

$5.8 Mn $664 Mn $6 Mn $16 Mn $50 Mn $133 Mn

$5.4 Mn $298 Mn

$1.6 Mn $90 Mn $2 Mn $186 Mn

$0.2 Mn $15 Mn $0.7 Mn $99 Mn
$15 Mn $12 Mn $100 Mn $50 Mn
2014 2015
Seed Stage (<=$1 Mn) Early Stage ($1-5 Mn)
Growth Stage Expansion Stage
Growth Stage ($5-20 Mn) Expansion Stage (>$20 Mn)

Start-up India
30 Momentous Rise of the Indian Start-up Ecosystem
150+ VC/PEs investing across B2B & B2C Segments; angel
investors are more diverse in their vertical selection

Share of VC/PE Investment Share of B2C Focused VC/PE Investments Share of B2B Focused VC/PE Investments
by Start-up Type (2015) (2015) (2015)
VC/PE

38% 35% 46% 17%

eCommerce Aggregators
eCommerce Analytics
Enablers
$4,705 Mn
B2B: 17%
B2C: 83% 7%
8% 9% 9%
Total Investment Hyperlocal Consumer
eCommerce Services Robotics Enterprise
(2015)
Software

Share of Angel Investment by Share of Angel Investments (2015)

Start-up Type (2015)
Angel
Investor
23% 16% 12%
Aggregators Payments Consumer Services

$196 Mn
B2B: 32%
B2C: 68% 11% 8%
Edu-Tech eCommerce
Total Investment
(2015)

Source: Zinnov Product/Digital Start-up Database

Start-up India
31 Momentous Rise of the Indian Start-up Ecosystem
While valuations have consistently been on the rise, many
Indian start-ups have shown growth without external funding

Valuation M&A Exit

Average Start-up Indian Start-ups gaining access to customers

Valuation even without external funding
Valuation
2014 2015
United States

$ 4.2 Mn $ 4.4 Mn

India Cross-browser testing

$ 2.7 Mn product
$ 2.3 Mn 520K+ registered users
25K+ paying customers
Israel
Mumbai
Some other 2011
major
$ 3.5 Mn
countries United Kingdom
with high
Cloud based supply chain Mobile-first e-signature solution
average $ 2.9 Mn management ~3Mn app downloads
valuation $250K revenue1 Bangalore Among Top 10 grossing apps
1000% annual growth1 2010

Source: Zinnov Product/Digital Start-up Database, Angellist

Notes: Valuation figures include non-tech statups, Does not include valuations over $10,000,000 or under $10,000

Start-up India
32 Momentous Rise of the Indian Start-up Ecosystem
Indian start-ups on acquisition spree - Over 65 M&As
successfully executed in 2015

Valuation M&A Exit

M&A
M&A Trends

M&A 65+ M&A deals

in 2015
Accelerate Consolidation Diversify Business Offerings

M&A by Region of Acquirer Companies

~90% India

Expand Customer Base Acquire Technical Expertise

~10% Rest of the World

Source: Deal Curry, News Articles

Start-up India
33 Momentous Rise of the Indian Start-up Ecosystem
Start-ups are being acquired for access to new customers,
maintaining leadership, and technical acumen

Indian Corporates acquiring Indian Start-ups Indian Start-ups acquiring other Indian Start-ups

Acquiring Company Acquired Company Acquiring Company Acquired Company

2015
2015

Corporates are acquiring start-ups to maintain their Start-ups are acquiring other start-ups to increase
market leadership their customer base and gain market share

M&A

Overseas Corporates acquiring Indian Start-ups

Indian Start-ups acquiring Overseas Start-ups
Acquiring Company Acquired Company
Acquiring Company Acquired Company
2015

2015
Croak.it!

Overseas corporates acquiring Indian start-ups in Indian start-ups acquiring overseas start-ups for
order to enhance their technical expertise technology gains to compete with ecosystem

Source: Deal Curry, News Articles, Venture Intelligence

Start-up India
34 Momentous Rise of the Indian Start-up Ecosystem
 2014-15 has seen some large exits instilling positivity
and confidence with the investor community

Valuation M&A Exit

Channels for Exit

Exit No.of Deals : 10 No.of Deals : 21 No.of Deals : 29 No.of Deals : 19

Deal Value : Deal Value : $235 Mn Deal Value : $418 Mn Deal Value : $68 Mn
NA
USD400 Mn
$400 M

USD 300 Mn

USD 200 Mn $200 M

USD 100 Mn
$40 Mn
$5.5 M $10 M $20 Mn
USD 0 Mn

Not Disclosed

Q4- 2014 Q1-2015 Q2-2015 Q3-2015

Source: Zinnov Product/Digital Start-up Database, Deal Curry, News Articles.

Start-up India
35 Momentous Rise of the Indian Start-up Ecosystem
SECTION 3
EVOLVING VERTICALS

2
3 4 5 6
1

Landscape Funding Incubators/ Talent Policies

Verticals Accelerators
Diverse start-up landscape Healthy mix of mature,
traditional and emerging areas focused companies

Segments witnessing strong investor

2,200 eCommerce (Traditional)3
traction
Large players within each Large players are yet to emerge
segment have already emerged Aggregators Expected to witness more consolidation
Top players within each
1,500 segment are backed by large 4
eCommerce (Niche) GROWING
VC/PE funds
Limited scope for disruptions by
G VERTICALS
600 new entrants eCommerce
Enablers
400
M MATURE
Total Funding2 (in $ Mn)

VERTICALS
Hyperlocal Consumer
300 eCommerce Services

Analytics
200 Enterprise
Payments
Software
Health -Tech EMERGING
100
IoT
E VERTICALS
No established large player
in the segment
Significant opportunity for
0 disruptions by new entrants
2013
2010 2011 2012

Vertical Maturity1

Notes: 1. Based on the average year of inception of the companies in the segment 2. Funding for year 2014 and 2015 3. Includes start-ups which are involved in the sale of goods
of all segments4. Includes start-ups which are involved in the sale of goods of a particular segment only such as kids, fashion or healthcare

Start-up India
38 Momentous Rise of the Indian Start-up Ecosystem
 eCommerce: Driving a major share of investment in the
country
M
$ 31 Mn Average Age of Sub-Segment v/s
Others Total Funding of Sub-Segment
$ 47 Mn
Kids Across
eCommerce $ 88 Mn
Home Decor 1,500 Mature Start-ups
$ 211 Mn
Fashion
Fashion
Quick Facts $ 645 Mn
Traditional 300
Home
Decor

Total Funding (in $ Mn)

2
Key Investments (2015)
200
820+ $ 500 Mn
# of start-ups1 Emerging Start-ups
$ 100 Mn Kids
100
$50 Mn

Top Investors (2015)

$ 1.4 Bn 0
Funding 2010 2011 2012 2013

2015E Average Year of Inception

Notes: 1. Estimated based on a sample of 600 companies formed over 2010-2015 period; 2. Funding for the year 2014 and 2015

Start-up India
39 Momentous Rise of the Indian Start-up Ecosystem
Aggregators: Established in transport, travel and
real-estate sub-segments
M
Funding by Sub-Segment (2015) Average Age of Sub-Segment v/s
Total Funding of Sub-Segment
$ 16 Mn
$ 20 Mn Deal Search
Aggregators Fashion 1,000 Transport
$ 32 Mn
Others
$ 207 Mn $ 632 Mn
$ 27 Mn
Quick Facts Real Estate Travel Transport
240 Travel
Real Estate

Total Funding (in $ Mn)

2
Key Investments (2015) 160
480+
# of start-ups1 Mature Start-ups
$ 625 Mn $ 125 Mn Deal
Search & Emerging Start-ups
80 Fashion Cash back Insurance Policies
$ 32 Mn

Top Investors (2015)

$ 1.1 Bn 0
Funding 2011 2012 2013

2015E Average Year of Inception

Notes: 1. Estimated based on a sample of 600 companies formed over 2010-2015 period, 2. Funding for the year 2014 and 2015

Start-up India
40 Momentous Rise of the Indian Start-up Ecosystem
eCommerce Enablers: Driven by high growth in niche
and hyperlocal segments
G
Funding by Sub-Segment (2015) Average Age of Sub-Segment v/s
Total Funding of Sub-Segment
$ 24 Mn
Hyperlocal
Logistics $ 1 Mn
eCommerce Inventory 300
Logistics

Enablers Management
$ 40 Mn
On- demand

Quick Facts Inventory

$ 234 Mn
On - demand
Inventory
Mature Start-ups
Logistics

Total Funding (in $ Mn)

60
Emerging Start-ups

2
Key Investments (2015)
50+ Hyperlocal
Logistics
# of start-ups1 $ 133 Mn
App/Web Inventory
$ 85 Mn 30 Development Management

$ 40 Mn

Top Investors (2015)

$ 360Mn 0
Funding 2011 2012 2013 2014

2015E Average Year of Inception

Notes: 1. Estimated based on a sample of 600 companies formed over 2010-2015 period; 2. Funding for the year 2014 and 2015

Start-up India
41 Momentous Rise of the Indian Start-up Ecosystem
Consumer Services: Its huge size and unorganized
nature sets it up as a key disruption area
G
Funding by Sub-Segment (2015) Average Age of Sub-Segment v/s
Total Funding of Sub-Segment
$ 8 Mn
Others
Consumer $ 16 Mn
Customer
Emerging Start-ups
Services $ 59 Mn 80 Mature Start-ups
Support $ 24 Mn
Car Rental Interior Design Interior
Hyperlocal Design
Deals
Quick Facts $ 33 Mn
$ 56 Mn 60
Home Services

Total Funding (in $ Mn)

Hyperlocal Deals

Home Service Car Rental

2
Key Investments (2015)
100+ 40

# of start-ups1
$ 50 Mn $ 50 Mn Customer
Support
20
$ 11.5 Mn $ 16 Mn

Top Investors (2015)

$ 230 Mn 0
Funding 2011 2012 2013 2014
2015E Average Year of Inception

Notes: 1. Estimated based on a sample of 600 companies formed over 2010-2015 period; 2. Funding for the year 2014 and 2015

Start-up India
42 Momentous Rise of the Indian Start-up Ecosystem
Hyperlocal eCommerce: Diverse demographics and
inadequate infrastructure are catalyzing transformation in
this segment
G
Funding by Sub-Segment (2015) Average Age of Sub-Segment v/s
Total Funding of Sub-Segment

Hyperlocal $ 6 Mn
eCommerce Healthcare
$ 56 Mn 200 Grocery
Food

$ 137 Mn
Quick Facts Grocery
150

Total Funding (in $ Mn)

Matured Start-ups

2
Key Investments (2015)
50+ 100 Emerging Start-ups

# of start-ups1 Food
$ 50 Mn
$ 35 Mn
50 Healthcare
$ 20 Mn

Top Investors (2015)

$ 250 Mn 0
Funding 2011 2012 2013 2014
2015E Average Year of Inception

Notes: 1. Estimated based on a sample of 600 companies formed over 2010-2015 period5; 2. Funding for the year 2014 and 2015

Start-up India
43 Momentous Rise of the Indian Start-up Ecosystem
Analytics: Strong use cases for analytics across different
functions are fueling growth of analytics start-ups
G
Funding by Sub-Segment (2015) Average Age of Sub-Segment v/s
Total Funding of Sub-Segment

$ 17 Mn $ 5 Mn Mature Start-ups
Marketing Analytics Human Capital
Analytics 75 Infrastructure & Supply
Analytics
Chain Analytics
$ 57 Mn
Infrastructure
Quick Facts $ 26 Mn
Enterprise Business
& Supply
Chain

Total Funding (in $ Mn)

Intelligence Analytics
50
Enterprise Business

2
Intelligence
Key Investments (2015)
~400 Marketing
Emerging Start-ups
# of start-ups1 Analytics
$ 56 Mn $ 15 Mn
25 Human Capital
$ 8 Mn $ 5 Mn Analytics

$ 1 Mn $ 1 Mn

Top Investors (2015)

$ 180 Mn 0
Funding 2012 2013 2014
2015E Average Year of Inception

Notes: 1. Estimated based on a sample of 600 companies formed over 2010-2015 period; 2. Funding for the year 2014 and 2015

Start-up India
44 Momentous Rise of the Indian Start-up Ecosystem
IoT, Health-tech, and Payments are set to disrupt the
market; Mobility is the key driver for a mobile-first nation
E

IOT

75+ start-ups

MOBILITY

Health-Tech Payments
Start-ups have
focus on mobile
120+ start-ups
35% based delivery
70+ start-ups
model

Notes: 1Estimated based on a sample of 600 companies formed over 2010-2015 period

Start-up India
45 Momentous Rise of the Indian Start-up Ecosystem
Health-Tech: Huge population base and potential
of Indias healthcare industry is driving growth in health-tech
E

Online Healthcare Search

Health-Tech
Raised $10.2 Mn funding
Over $80 Mn from Tiger, Nexus and Ratan
Tata
invested in Start-ups since Jan20151

*Excludes Practo*, which received New Delhi

Rural healthcare provider
funding of $120 Mn in 2015 2013
Quick Facts Raised pre - series A funding from
Ankur Capital in 2015
Udaipur
2014
120+ start-ups in India which almost
grew 2x since 2014
Mumbai
2013
The Indian healthcare IT market today is
worth USD 1.0 billion (2014) and pegged Home healthcare provider

Home healthcare market player Bangalore Raised $37.5 Mn funding from

to grow ~1.5X by 2020 2013 Accel partners, Qualcomm
Raised $1 Mn in angel funding in Ventures and Ventureast in 2015
2015

Accelerators dedicated solely to Healthcare

Start-ups are getting incepted in India

Success Story: Practo, an online health service

Indian health-tech start-ups are proving their
platform with 200K+ doctors & $120Mn+
capabilities in the global market as well
funding in last 8 months

Source: Rediff, News Articles

Notes: # of startups estimated based on a sample of 600 companies formed over 2010-2015 period, 1.Investment numbers do not include undisclosed deals. *Practo is pre 2010 incorporated

Start-up India
46 Momentous Rise of the Indian Start-up Ecosystem
Payments: Cashless/online transactions and
smartphone growth are driving emergence of
payments solutions from start-ups
E
Online payment gateway
solution
Raised $120 K seed funding in
2015
Payments
Over $145 Mn* Mobile recharge
1 and bill payments
invested in Start-ups since Jan2015 platform Jaipur
Raised $80 Mn funding 2013
2
*Excludes Paytm , which received in 2015
funding of $635 Mn in 2015
Quick Facts

70+ Start-ups in India Mumbai

Online citizen
2011
services bill payments
Hyderabad Raised $10 Mn funding
2012 from SRI Capital in 2015
India has just 260 Mn bank accounts i.e.
2/3rd of the country is unbanked
Bangalore
Mobile PoS and 2011
payments processing
Over 95% of the 30 Bn of payments solution Start-up Offering
Raised $23 Mn in Series Hardware
transactions annually are by cash/cheque C funding in 2015
Only Software/Service

RBI has given license to 11 companies Success Story: Paytm, an online

including Paytm to setups payments banks payments platform received $635 Mn
funding in 2015

Source: YourStory, News Articles

Notes: # of start-ups estimated based on a sample of 600 companies formed over 2010-2015 period, 1. Investment numbers do not include undisclosed deals;
2.
Paytm received funding majorly for its eCommerce platform, hence not included in the overall payments funding
Start-up India
47 Momentous Rise of the Indian Start-up Ecosystem
IoT: Start-ups riding on the IoT wave are set to disrupt
how consumers and industries interact with machines
E
IOT based energy monitoring
equipment
Raised $200K in Seed Capital
from Snapdeal and Rajan
Anandan
IOT Over $75 Mn Wearable technology for
invested in Start-ups since Jan20151 a healthier lifestyle
Raised venture funding Gurgaon
in 2015 2013

Quick Facts

75+ Start-ups in India which grew over Wearable device to control

35% since 2014 Mumbai any smart device
Pune Raised $ 0.2 Mn crowd
2014
2013 funding in 2014

USD 10-15 Bn IoT Market Opportunity

by 2020
Kochi
A connected car platform 2013
$1 Bn+ investment committment by Indian for remote monitoring
govt on building 100 smart cities every year Raised Seed Capital from
Pose Ventures and
for next 5 yrs Snow Leopard

PM announced the launch of Centre of

Excellence for IoT in Bangalore - A combined
initiative of Department of Electronics & IT, Success Story: Altizon, company focused
ERNET India and NASSCOM to promote the on making enterprises IoT ready
sIoT ecosystem named Garter 2015 cool vendor

Notes: # of start-ups estimated based on a sample of 600 companies formed over 2010-2015 period, 1. Investment numbers do not include undisclosed deals.

Start-up India
48 Momentous Rise of the Indian Start-up Ecosystem
Robotics, 3D Printing and Machine Learning are
key whitespaces which will drive future attention
from start-ups
Illustrative Start-up Leaders across Verticals

Robotics 3D Printing Machine Learning

Grey Orange Robotics founded in 2011,
based out of Gurgaon (NCR) builds
robotics systems for warehouse
automation
Raised $30 Mn funding from Tiger
Global and Blume Ventures in 2015
Fracktal Works founded in 2013, based
out of Bangalore develops 3D printers
having clientele including L&T, Toshiba
and Cisco
Raised $3 Mn seed funding from 1 Neoteric
Technology Solutions in 2015
InvenZone founded in 2013, based out
of Mumbai provides a niche platform for
researchers using advanced machine
learning and deep learning algorithms
Raised undisclosed
amount of angel funding in 2014

Other Start-ups Other Start-ups Other Start-ups

Source: News Articles

Start-up India
49 Momentous Rise of the Indian Start-up Ecosystem
SECTION 4
INCUBATORS/ ACCELERATORS

2 3
4 5 6
1

Landscape Funding Verticals Talent Policies

Incubators/
Accelerators
With over 40% growth annually, 110+ business
incubators & accelerators are providing seed stage
support to start-ups

Incubator/ Accelerator Ecosystem in India

Key Trends
New Colleges Setting up
Incubation Centres
18 new colleges in 45%+ Incubators located in Delhi, Bangalore and Mumbai
Tamil Nadu expected
to have incubation
centres by 2015
Key Focused Verticals: Big Data & Analysis;
Consumer Internet with emerging verticals such as
payments, healthcare, education, advertisement etc.
110+ 40%+ More Corporates Moving
to Accelerator Market
Accelerators/
Incubators YOY Growth in #
of Accelerators/
Incubators Vertical Focused Accelerators coming into play to
NASSCOM IoT CoE provide industry specific connects and guidance,
however few start-ups to select from becomes a
challenge
NASSCOM partnering
with State Governments Launching Online as well as Offline Programs to
for Start-up warehouses expand their reach and going global
80 Start-ups have been
incubated across Start-
up Warehouses, with
~10Mn Funding raised

Source: Zinnov Research & Analysis

Start-up India Scripting a new future:

52 Momentous Rise of the Indian Start-up Ecosystem
Most incubators and accelerators also provide funding,
mentorship and networking opportunities, in addition to
business support
Founded Location Focus Notable Start-ups Funding
Areas Details
Cloud Provides mentorship, technical Funding disclosed only in few
2012 Bangalore Internet guidance and networking cases (27% of the start-ups
1 Mobile through 16 weeks program have received Series A funding
later on)
Provides mentorship, Invests up to $50k at 8%
Internet
2 2012 Noida networking, co-working space equity
Mobile
through 16 week program
Provides networking, Invests $30k-$60k at 8-9%
Internet
3 2012 Gurgaon mentorship, initial capital etc. equity (subsequent rounds of
Mobile
through 13 week program up to $500,000 into a few
select start-ups)
Provides mentorship and Provide grants of $2.5K or
eCommerce
2014 Bangalore operational support through invests $50K-$1Mn
4 Healthcare
Clean-tech 100 day accelerator program/
24 week scale-up program

Internet Provide mentorship, networking No funding provided (Start-ups

5 2014
6 2014
7 2011
Bangalore and guidance in technology get $20,000 worth of cloud
IoT
through a 6 day program credit to buy cloud services)
Mobile Provides mentorship,
Bangalore Marketing networking, co-working space Provide funding of upto $30k
Analytics through 16 week program
Virtualization Provides support, in-depth Awards $10k equity free grant
Bangalore Cloud training, co-working space to selected start-ups
Mobility through 12 week program

Source: News Articles, Company Websites

Start-up India
53 Momentous Rise of the Indian Start-up Ecosystem
SECTION 5
TALENT

2 3 4
5 6
1

Landscape Funding Verticals Incubators/ Policies

Accelerators Talent
India is the youngest start-up nation in the world - 72% of the
founders are less than 35 years old
Demography of start-up founders
Founders Gender
Breakup
Age

<20 years 20-25 years 26-30 years 31-35 years 36-40 years 41-45 years >45 years

0.3% ~91%
15% 26% 31% 15% 6% 6%
Education

Engineering M.B.A. Other -

Other Post Engineering Others1 ~9%
Graduate Graduate Graduate Post-Graduate

35% 26% 15% 10% 4% 10%

Comparatively small share

of women entrepreneurs

Notes: 1Others include MS, Administration Graduate, Doctorate, Under Graduate, etc.

Start-up India
56 Momentous Rise of the Indian Start-up Ecosystem
50% rise in share of female entrepreneurs in 2015
over 2014
Top Focus Areas of Women Driven Start-ups Successful Women Entrepreneurs

Shanti Mohan
Women Entrepreneurs in 70%
~9% eCommerce Founder & CEO
Start-up Landscape1
(BE from BIT Sindri)
B2C
Aggregator $650 K of funding
Age Wise Break Up of
Start-up Founders
30% 26-30 years

47% 31-35 years

30% Enterprise Naiyya Saggi
16% 35+ years
Software CEO
B2C (MBA from Harvard
Big Data &
Education Break Up of Analytics Business School)
Start-up Founders $600 K of funding

22%
27%
Suchi Mukherjee
12% Funding received by women Founder & CEO
39% $168 Mn+ start-ups in 2015 (MSc. from London
School of Economics)
$30 M of funding
BE, B. Tech M. Tech, MS, MCA
MBA Others2

Source: Zinnov Product/Digital Start-up Database

Notes: Analysis based on a sample size of 31 Start-ups, 1% of start-ups with women as founder or co-founder, 2includes 'Other Undergraduates', 'Others Masters' and 'Doctoral' degree"

Start-up India
57 Momentous Rise of the Indian Start-up Ecosystem
Driven by 4.5X growth in funding to women driven start-ups
$ 168 Mn Sources of Funding to Women driven
Funding to Women Start-ups (2015)
driven Start-ups1 10%
2%
Top Deals (2015)
Angel
Undisclosed
$37.5 Mn
$40 Mn
$ 36 Mn

$
88%
VC/PE
$
2014
2015(till date)

(Founded in 2015, Indias 1st VC Fund focused on Women Entrepreneurs2)

Founders Total Corpus Focus Areas Start-up Investments

$
Ankita Vashishtha eCommerce
Founder & CEO Social Media
(Managing Partner, Tholons Capital) Cloud
Usha Amin $ 15 Mn Analytics
Co-founder & CFO Education
(Past Chairman & MD, Accenture) Healthcare

Source: Company Website, Your Story, Zinnov Analysis

Notes: 1Includes start-ups where a woman is one of the co-founders, 2SEBI approved

Start-up India
58 Momentous Rise of the Indian Start-up Ecosystem
Indian CXOs and senior executives are coming forward
to join start-ups or starting their own ventures
Industry Leaders becoming part of Start ups
Key Drivers
Technology Leaders Business Leaders Industry Veterans
joining Start ups joining Start ups starting own ventures
1 High pay-packages
coupled with stock
options
Punit Soni Ananth Narayanan
Chief Product K Radhakrishnan
CEO, Myntra Co Founder,
Officer, Flipkart Worked at
Worked at GrocerMax
McKinsey Worked at Future
Google, Motorola
Group, Reliance
Retail
Abhishek Poddar 2
Anand
Director, Product Higher roles and
Chandrasekaran Ashish Goel
and Business, responsibilities
Chief Product Founder, Urban
Ezetap
Officer, Snapdeal Ladder
Worked at HP
Worked at Yahoo, Worked at
Airtel Mckinsey, Amar
Chitra Katha Media
Sumant
Namita Gupta NaikKhanvte
Chief Product Director, Product
Deepak Garg 3 Better future
Officer, Zomato Founder, Rivigo career growth
Management, Worked at
Worked at Zipdial
Facebook, McKinsey
Worked at Juniper
Microsoft Networks

Start-up India
59 Momentous Rise of the Indian Start-up Ecosystem
Brain drain to brain gain- people settled abroad are returning
to India to start new businesses

Ashwini Asokan, Suchi Mukerjee, Sameer Maheshwari

MAD Street Den LimeRoad Healthkart
Masters from Carnegie Masters from Carnegie Mellon MBA from Harvard Business School, USA
Mellon University, USA University, USA Worked at UBS
Worked at Intel, USA Worked at Intel, USA Year Founded: 2011
Year Founded: 2014 Year Founded: 2012

Saurabh Arora, Lybrate Sandeep Aggarwal, Poornima Vardhan, 335TH

Shopclues & Droom
MBA from Columbia Business School, USA MBA from Columbia Business School, USA MBA from The Wharton School, USA
Worked at Facebook, USA Worked at Facebook, USA Worked at UBS, USA
Year Founded: 2013 Year Founded: 2011 Year Founded: 2014

Key Drivers

1 Maturing start-up ecosystem in India 4 Ease of funding availability

Massive market opportunity with high # of
2 potential customers 5 Low running cost for start-ups
White spaces in India which can be addressed
3 by start-ups offerings

Start-up India
60 Momentous Rise of the Indian Start-up Ecosystem
Start-ups are providing an exhilarating work culture along
with attractive monetary benefits to lure new and retain
existing talent

Competitive Monetary
Flat Hierarchy as Flexible Multitasking
Benefits
compared to Work Timings
Corporates

More Opportunity to Grow Continuous real-time Freedom to Innovate

semi-structured & Explore
feed back

Start-up India
61 Momentous Rise of the Indian Start-up Ecosystem
SECTION 6
GOVERNMENT POLICIES

2 3 4 5
6
1

Landscape Funding Verticals Incubators/ Talent

Accelerators Policies
Government policies and initiatives are aimed towards
improving the overall start-up ecosystem
1 2
Start-up India Standup India
Prime minister announced
integrated platform to promote
and boost entrepreneurship in
Funding the country
3
Launched India Aspiration Fund
(IAF)
To boost start-up ecosystem,
launched IAF with initial corpus of
INR 2,000 Cr to finance and
promote MSME1 sector
SETU2 Program
Established techno-financial/
incubation programme to support
start-ups and set aside INR 1,000
Cr in 2015 Union Budget

1
Atal Innovation Mission
Established a platform to promote
culture of innovation and R&D and
earmarked INR 150 Cr in 2015
Union Budget
Technology

1 2
Improving Ease of Starting a Dedicated Start-up Exchange
Business
SEBI has plans to setup an
To create Ebiz portal for
reducing approvals required to alternative trading platform for
start a business internet start-ups with relaxed listing
To complete tax3 registration in requirements
Operations 2 days

1 2 3
Plans Incentives to IoT Start-ups State Government Start-up Technology Business Incubator (TBI)
Easy import facilities & duty Policies Scheme by Department of Science and
benefits State Governments are coming up Technology to facilitate creation of
Minimize excise & central sales with start-up friendly policies and technology led and knowledge driven
tax partnership with NASSCOM for enterprises
NEW Subsidised rates on purchasing start-up warehouse setup in their
Start-upS land respective locations

Source: News Articles

Notes: 1Self-Employment and Talent Utilization, 2Micro Units Development Refinance Agency, 3Department of Electronics & Information Technology,
4
Micro, small and medium enterprises, 5Central excise and service tax
Start-up India
64 Momentous Rise of the Indian Start-up Ecosystem
Government can further boost the ecosystem by formulating
overarching start-up centric policies
Key Policy Related Asks from the Government
1 2
Start-up Policy
Formulate start-up policy for
India to promote overall
start-up growth and foster
an environment of
entrepreneurship
4 5
Ease of Doing Business
Focus on easing regulatory
norms for starting and
operating a business in the
country along with sector
specific regulations
Source: Money Control
Start-up India
65 Momentous Rise of the Indian Start-up Ecosystem
3 The industry would also certainly
Infrastructure
Develop infrastructure
across cities for better
connectivity, transportation
and basic amenities to spur
business growth
6
Incentives
Provide subsidies, funds
and other incentives to
start-ups in areas such as
product development and
market access
Exit Options
Lay out rules on exit options
for entrepreneurs as well as
investors to boost cross
border M&As
Tax Benefits
Rationalize taxes related to
start-up investments such as
angel-tax, differences
between investments in
listed & unlisted shares and
mobilize domestic investors
like to see a pro-investor tax
policy and avoidance of double
taxation for foreign investors to
enhance investments in the
country.
- Safir Adeni, President,
TiE- Hyderabad
"Start-ups create jobs and
intellectual property and
catalyze FDI by attracting
venture capital. Because of the
current tax regime, start-ups
are being compelled to
incorporate overseas."
- Saurabh Srivastava, Founding
& Managing Committee
Member, IAN
"It (budgetary provisions for start-
ups) will generate interest in
international VC firms to consider
India as a favourable investment
destination.
- Shashank ND, CEO, Practo
 NASSCOM
10,000 Start-ups Program
NASSCOM 10,000 Start-ups Program
10,000 Start-ups is an ambitious attempt by
India's premier IT industry body - NASSCOM
to scale up the start-up ecosystem in India by
10x. 10,000 Start-ups aims to enable
incubation, funding and support for 10,000
technology start-ups in India over the next
ten years. The program's vision is to:

Foster entrepreneurship and build entrepreneurial

capabilities at scale

Impact 10,000 Tech

Strengthen support
Start-ups on F.A.M.E.
system for tech start-
Model by 2023
ups

To meet these objectives, the program brings together key stakeholders of the ecosystem including start-up incubators /
accelerators, angel investors, venture capitalists, start-up support groups, mentors and technology corporations and we
operate as the knowledge base of start-ups' working models, verticalized interest, etc. From 15 partners initially, we've grown
to a network of 70 partners today. The program is supported by foundation grants and corporate partnerships.

Start-up India
68 Momentous Rise of the Indian Start-up Ecosystem
10,000 Start-ups Core Components
Bring together the community of
India's top entrepreneurs in a wide
range of industries including
consumer and enterprise IT, medical
and hardware, IOT and eCommerce.
Mentorship from over 200 serial
entrepreneurs, experts, angels and
VCs, including individuals from
LinkedIn, Google, Amazon, Microsoft,
and many more in Silicon Valley.
Start-up India
69 Momentous Rise of the Indian Start-up Ecosystem
Education through customized
programming and on-demand
experts delivered to match the
founders' needs.
Credits worth $25,000 in value from
our Partners, including cloud
computing and storage credits,
developer platforms, and other
software's in addition to drop-in
office space (Start-up Warehouses)
and legal advice.
NASSCOM 10,000 Start-ups Program
10,000 Start-ups - Initiatives
NASSCOM Start-up Incubation Network
( S t a r t - u p Wa r e h o u s e s ) S t a r t - u p
Warehouses are designed for start-ups
ecosystem creation and enhance early stage
support for technology start-ups in various
states of India. An Incubator and co-working
space for dozens of technology start-ups and
early stage product companies at a highly
subsidized cost, in the heart of the city. The
co-working space allow early-stage
technology start-ups to work for 6-12 months
during which it will facilitate demos and
pitches by start-ups to investors, large
corporates, other accelerators/incubators
and individual mentors. It also provides a
large event place for hackathons, regular
talks and workshops to sharpen the skills of
start-ups on go to market, scaling up, global
technology trends, and other learning &
development needs.
Start-up India
70 Momentous Rise of the Indian Start-up Ecosystem
Currently in operation: In the pipeline:
Start-up Warehouse, Start-up Warehouse, Navi Mumbai & Pune.
Bangalore. Supported by Supported by the Govt. of Maharashtra
the Govt. of Karnataka Start-up Warehouse, Gurgaon. Supported
Start-up Warehouse, by the Govt. of Haryana
Kolkata. Supported by 80 Start-ups have been incubated across
the Govt. of West Bengal Start-up Warehouses, with ~10Mn Funding
Start-up Warehouse, raised. 400 Jobs created by them, 150+
Kochi. Supported by the events across warehouses that includes
Govt. of Kerala hosting international delegations, Investor
meet-ups, Hackathons, Start-up Konnect
sessions.
Top Gun Start-ups from 10K Start-up Warehouses:
Bookpad, Boutline, Catapoolt, Changer Mints, English Dost, EPoise
HackerEarth, Hiree, iReff, Jiffstore, Mera Tiffin, Metome, Native5, Ridingo,
Shield Squire, SignEasy, Smart Buildings, Smart Pocket, TookiTaki
NASSCOM 10,000 Start-ups Program

NASSCOM Industry Partner Program (NIPP) NIPP focuses on market validation and early customer development for
start-ups. The program on innovative mature technology ventures to test their solution, pricing model, and marketing
strategy, also do a proof of concept for sustained engagement between large corporates.
NIPP Member Companies Include:
Google, Microsoft, Intel, Amazon Web Services, IBM, Motorola, Dell, AllState, Wipro, CA Technologies, Societe Generale,
UBS, Accenture, Deutch Bank, Zafin, Sony

Start-up Konnects - 10K Start-up Konnects, aims to bring together Funding Partners, Mentors, Enterprise Tech Industry Network
and 10K shortlisted start-ups for the purpose of win-win partnerships. These connect events enable early stage start-ups to
connect with bigger contemporaries and 'sell' to them their ideas, innovations and niche products.

WomenTechShip - We are creating the right environments, programs and policies, for woman to thrive. With WomenTechShip as
our regular series, we aim to support women advance in domain technology fields. These women meet-ups include education in
technology, hackathons, inspiring talks by women leaders and skill based workshops and sprints. Bit Giving, Cash Karo,
FreshMenu, Green Cosmos, SeekSherpa, Social Cops, , SmartVizX, Trumpet, WeTravelSolo to name a few

Innotrek - It's a global connect access program, that gives the brightest tech start-ups a chance to go to Silicon Valley, get
access to global VCs and connect with some of the biggest and most renowned tech giants of the world. AdPushup, Bookpad,
CustomerXps, Faircent, FindUrClass, Instasafe, Loginext, LazyLad, Posist, Wagmob to name a few

Start-up India
71 Momentous Rise of the Indian Start-up Ecosystem
NASSCOM 10,000 Start-ups Program

Our events deliver press and funding to founders

We conduct events where our network of investors and enterprises come to hear our companies pitch. These
events have been attended by over 200 investors and press from leading publications like Economic Times,
Times of India, Business Standard, Financial Express and more. Prior to each Konnect session, our staff and
mentors work with each start-up extensively to refine their pitches. Throughout the session we provide access to
numerous top-tier investors, angels, corporate representatives, and press. This is essential for fundraising,
publicity, and corporate partnerships.

10,000 Start-ups IMPACT

Started in April 2013, since then, we've done about 600+ high impact events in 26+ cities of the country which
were attended by a whopping 30,000 attendees and have impacted 1100 start-ups out of 11,000+ Applicants.
From which 170+ Start-ups have received funding, 500+ Start-ups have got mentored, 100+ Start-ups
Accelerated and 1000+ Enterprise Connected. 10% women entrepreneurs in the program.
The program is supported by our founding partner Google for Entrepreneurs, and Industry Partners Microsoft
Ventures, Kotak, IBM and Amazon Web Services.

Start-up India
72 Momentous Rise of the Indian Start-up Ecosystem
Appendix
Based on number of start-ups India is counted among
the top 5 largest start-up communities in the world

Total Start-ups
Canada Netherlands Russia
6,000-6,200 1,225-1,250 1,350-1,375 Total Tech Start-ups
UK
3,000-3,100 7,900-8,000 560-575 630-650

4,500-5,000

Germany
2,500-2,525

France 1,160-1,175

2,200-2,300
China
USA 1,025-1,050
9,500-10,500
83,000-83,500 Israel
4,500-5,000 3,3003,500
47,000-48,000 India
3,900-4,100
9,500-10,500

4,200-4,400 Australia
Brazil
1,600-1,650 2,775-2,800

1,290-1,320
750-775

Countries based on the

number of Start-ups <5,000 5,000 7,500 10,000+
Start-ups 7,500 10,000 Start-ups
Start-ups Start-ups

Source: Zinnov Research & Analysis, AngelList

Start-up India
74 Momentous Rise of the Indian Start-up Ecosystem
NASSCOM- ZINNOV Start-up City Index
Index Score -Top Cities Major Start-up Focused Index Score Emerging Cities
Indian Cities
1. Bangalore 1. Chennai

2.NCR 2. Pune

3. Mumbai 3. Hyderabad

4. Ahmedabad

Bangalore is evolving fast to

5. Jaipur
become a global start-up hub,
closely followed by NCR and
Mumbai Top Cities

Emerging Cities
Other cities such as Chennai,
City Index Score Pune, Hyderabad, Jaipur,
Calculated based on:
Number of start-ups Ahmedabad, Chandigarh etc. are
Number of investor deals taking steps to emerge as key
(c) Amount of funding cities in start-up space
(d) Enabling ecosystem (such as proximity of investors,
incubators, accelerators and coworking spaces)
Top Cities Emerging Cities
Source: Zinnov Analysis, Zinnov Start-up Database
Index Score
(0-5) >4.8 4.5-4.8 4-4.5 0.75-1.5 0.5-0.75 <0. 5

Start-up India
75 Momentous Rise of the Indian Start-up Ecosystem
Investors look for sound team, idea and business model
before investing in start-ups

Team Idea Business Model

1. Founders Objective Customers
l Pedigree- Education (associated brands of l Should focus on solving a customer pain l Number of customer base with the focus
colleges ) and experience point on paid customers
l Number of founders and their relationship
with each other
l Mix of technical and business oriented Clarity
founders Revenue Model
l Should have clear understanding of the
idea and its execution l Sound business model to generate
revenue and profits
2. Complete Team
l Product capabilities of the team Innovation
l Educational background and experience l Getting first mover advantage through
innovative idea
Market Potential
l The idea should provide large business
3. Future Prospects opportunity
Vision
l Retention rate and measures to improve
the same l Long term plan of expanding the idea
implementation
l Hiring plans

Start-up India
76 Momentous Rise of the Indian Start-up Ecosystem
Start-ups have to go through a step wise process in
order to get multiple rounds of funding

Fund Raising Process for Start-ups

STEP 1 STEP 2 STEP 3 STEP 4

Channels Screening: First Evaluate: Second

Start-up Meeting with Fund: Meeting with
Meeting with
Investors & its team Investor
Investors
Reference by
A
Client
Key Presentations Key Presentations Key Presentations
Participation in
Initial funding's B Competitions Business Model Hiring Plans
provided by friends Product Brief
and family Networking: Key Clients Acquired
C Alumni, Mentor Evaluate Investment Risks Revenue Model Past Year Failures &
Achievements
Small amount of
Elevator Pitch to present Key Clients
funding raised by Past 3 Years Financials
Market Opportunity
angel investors
Achievements Future 3 Years
Financials

Multiple series of funding Series N Round of

Seed Funding Series A: First Round of Funding
Funding

Start-up India
77 Momentous Rise of the Indian Start-up Ecosystem
Incubators & accelerators provide networking,
mentorship and other facilities by conducting an
extensive 3-6 months program
1 Role of Incubator/ Accelerator
l Accelerator role is to foster rapid growth of
its portfolio companies
l Incubator role starts at an early stage to
enable business ideas to grow and help
them innovate
2 Selection Process
l Start-ups apply for admission in the
batches formed by incubator/ accelerator
l Factors taken into consideration while
selecting start-ups are product, idea,
market opportunity, team attitude and
capabilities etc.
3 Program Details
l 3-6 Months typical Incubation program
duration
l Conduct ~2 batches in a year with a batch
size of 10-15 applications
Start-up India
78 Momentous Rise of the Indian Start-up Ecosystem
4 Incubator/Accelerator Offerings 5 Start-ups Benefit
Networking
l Helps connecting with the investors and
70% start-ups taking help from
incubator/accelerator succeed in the market
provides a platform to network with other
compared
start-ups
Mentors/ Guide
l Helps in forming the company vision,
refinement of the product and the
business strategy
l Mentors includes proven CEOs, investors,
industry experts etc.
6 Incubator/Accelerator Benefit
Facilities l Takes a small share in equity (falling in the
l Provides funding and additional facilities range of 3%-10%) or fixed fee
such as office space, internet, computers, l To understand the new innovations in the
accountants etc. market
l Corporate MNCs can pitch their
technologies to form a part of start-up
Others products
l Provides marketing assistance, business
training programs, technology assistance
etc.
Driven by smartphone adoption, a huge consumer base in
India is coming online

Rapidly growing Consumers creating

smartphone base online identity

140 Mn Smartphone user-base in India1 300 Mn Number of internet users in India1

Consumers making online

213 Mn Mobile internet users in India
2
63 Mn purchase2

Size of the online grocery

35% Annual growth rate of smartphone $100 Mn market in India
2

users in India3

41% eCommerce sales through mobile1 $22 Bn Indian eCommerce industry size2

Source: Cisco Report, CLSA Report, Zinnov Analysis

Notes: 1. 2014, 2. 2015, 3. Between 2015 and 2019

Start-up India
79 Momentous Rise of the Indian Start-up Ecosystem
The number of active investors, both angels and VC/PE,
have grown significantly
YOY Investment Commitment in Start-ups
by VCs/ PEs (in USD millions)
VC/PE 156 Active 2X increase in number of active VC/PE
4,705 (E) VCs/PEs in investors
2015*
Share of eCommerce in
3,326 the overall portfolio has
2,110
declined from 58% in
882 2014 to 29% in 2015
1,379
1,228 Over 458
deals signed Nearly 2.25x increasein total number
2014 2015 2015* of deals in 2015 compared to 2014
eCommerce Others

YOY Investment Commitment in Start-ups

by Angel Investors (in USD millions) 292 Active
Angel
Investor 196 Angel Nearly 2.5x increase in number of
Marginal increase in share Investors in active Angel investors
of eCommerce, however, 2015*
176 the overall Angel portfolio
48 remains fairly diverse with
46 investments across
20 Over 436
2 Aggregators, Consumer Nearly 2x in total number of deals in
Services, eCommerce deals signed
2014 2015 2015 compared to 2014
Enablers, among others 2015*
eCommerce Others

Notes: 1Estimated based on average deal size and number of deals(extrapolated based on number of deals in first three quarters). Deals worth 4.1Bn already
closed by end of Q3-2015. To calculate the average deal sizes of more than 50 millions were not considered. 2Presented numbers are for Jan-Sep 2015 period.
3
A Deal is defined as a transaction between start-up and an investor. A single round of funding could be counted as multiple deals as there could be multiple
investors investing. 4In addition, 17 deals in 2014 and 59 Deals in 2015 did not have investor details. 5Active Angel (or VC/PEs) is defined as an investor who has
made at least one investment in 2015

Start-up India
80 Momentous Rise of the Indian Start-up Ecosystem
Few major VC/PE funded B2B & B2C start-ups

Key B2C Start-ups Funded in 2015 Key B2B Start-ups Funded in 2015

1 1
Investor VC/PE Investor VC/PE
$ 100 Mn $ 133 Mn
Online Shopping Funding Courier Services
Funding
Portal Company

2 2 Investor
Investor
$ 50 Mn $ 30 Mn
Home Design Funding Robotics Company Funding
Setup Company

3 Investor
3 Investor
$ 100 Mn $ 56 Mn
Hotel Rooms
Funding Business Analytics Funding
Aggregator Solution

4 4 Investor
Investor
$ 20 Mn $ 50 Mn
Funding
Mobile-based Customer Support Funding
News App Software

Source: Zinnov Product/Digital Start-up Database

Start-up India
81 Momentous Rise of the Indian Start-up Ecosystem
Few major angel funded B2B & B2C start-ups

Key B2C Start-ups Funded in 2015 Key B2B Start-ups Funded in 2015

1 1
Lead Investor Angel $ 6 Mn Angel
$ 50 Mn Investor
Funding Investor Funding Undisclosed Investor
Hyperlocal Service Real Estate Portal

2 Investor 2
$ 3.5 Mn ~$ 3 Mn Investor
Undisclosed Shailesh Mehta
eCommerce Website
Funding Online Credit Evaluation Funding
Platform

3 3
~$ 3 Mn Investor ~$2 Mn Investor
Funding Ratan Tata Devesh Sachdev
Online Health Loan Exchange Platform Funding
Search Services

4 4 Investor
Investor
~$ 2.7 Mn ~$ 3-4 Mn Kunal Bhal, Phanindra
Funding Recruitment Analytics Funding Sama, Raju Reddy,
Car Rental Service Rohit Bansal

Source: Zinnov Product/Digital Start-up Database

Start-up India
82 Momentous Rise of the Indian Start-up Ecosystem
Definitions and Notes
Definitions

Start-ups Angel Investor

Only technology product/ digital start-ups have been Individuals investing in their personal capacity
considered for the report
While considering funding, investments by
Inception Year accelerators and incubators has also been
l Company with inception year of 2010 or later considered as part of angel funding

Headquarters
l A company that is headquartered in India OR
l Has founding team with Indian origin AND product
development largely in India
Intellectual Property
VC/PE
l That has developed and/ or owns the technology
IP (includes IP owned through acquisitions) AND/
OR Includes venture capital firms, private equity
firms, investment banks, companies and
l That provides digital/ technology platform for corporates*
transactions and/or customer engagements
* Companies and corporates have been included
Distribution in VC/PE only for purposes of funding values
l Undertakes the packaging, selling & marketing of
the product/ platform itself or through channel
partners

Notes: There maybe deviation in values presented for 2014 when compared to the previous version of the report published last year as the numbers stated in this
report for 2014 are actuals, while those in the previous version consisted of estimations for the year 2014 based on our analysis till July 2014

Start-up India
83 Momentous Rise of the Indian Start-up Ecosystem
Vertical Definitions (1/2)

eCommerce Hyperlocal Consumer

eCommerce
Sell products on the
internet
Sub-Verticals: Across, Home
Dcor, Fashion, Kids, etc.
Aggregators
Offer information about
goods/ services from
several sources
Sub-Verticals: Transport, Real
Estate, Travel, Deal Search, etc
Enablers
Help e-commerce firms with
various business
operations
Sub-Verticals: Logistic, App/ Web
Development, Inventory, etc .
eCommerce
Sell products/services
catering to smaller areas
and with short delivery time
Sub-Verticals: Grocery, Food,
Healthcare
Services
Offer a range of services
targeted directly to
consumers
Sub-Verticals: Interior Design, Car
Rental, Hyperlocal Deals, etc.

Payments Edu-Tech Social Platforms Health-Tech Gaming

Enable payment through
software and hardware
solutions
Sub-Verticals: Hardware, Hyperlocal
Deals, etc.
Operate in the education
sector and provide
technology related services
Sub-Verticals: Tutoring, Vocational,
Test Prep, etc
Help users with common
interests interact and
engage
Sub-Verticals: Dating, Fashion
Content, Coders, Sharing, etc.
Operate in the healthcare
sector and provide
technology related services
Sub-Verticals: Health Apps,
Doctor, etc
Involved in development of
computer and mobile
games
Sub-Verticals: Across, Home Dcor,
Fashion, Kids, etc.

Start-up India
84 Momentous Rise of the Indian Start-up Ecosystem
Vertical Definitions (2/2)

Enterprise Software Recruitment Ad-Tech Fin-Tech

Provide various types of software Offer platform to connect employers Operate in the Media sector and Operate in the BFSI sector and
products to customers and candidates provide technology related services provide technology related services

Sub-Verticals: ERM, CRM, Security, etc. Sub-Verticals: Blue Collar, Vertical Sub-Verticals: Mobile, Social Media, TV, Sub-Verticals: Credit Rating, Crowdfunding,
Specific, etc. Email/Messaging, etc. Investment, etc.

IoT Analytics Media-Tech Others

Provide hardware in the IoT space Provide analytics related services Operate in the media sector and Present in verticals other than
such as sensors which collect data as the final products/solutions provide technology related services the ones listed

Sub-Verticals: Robotics, Sensors, Sub-Verticals: Marketing Analytics, Sub-Verticals: News, Talent Showcase, etc. Sub-Verticals: Content Creation,
Wearables, etc. Enterprise Business Intelligence, etc. Communication, 3D Printing, etc.

Start-up India
85 Momentous Rise of the Indian Start-up Ecosystem
Appendix: Zinnov conducted dialogues with ecosystem
stakeholders and supplemented it with information from
secondary sources

v Zinnov product and digital start-up

Start-ups database
Zinnov
v Zinnov start-up domain knowledge
Repository base and expertise

PE Angel
Investors Investors

70+ Primary
Interactions
Other Media Articles
Public
Sources VC Websites
Incubators Accelerators Angel Networks Websites

Start-up India
86 Momentous Rise of the Indian Start-up Ecosystem
International Youth Centre, Teen Murti Marg, Chanakyapuri, New Delhi 110 021, India
Phone: +91-11-23010199, Fax: +91-11-23015452, E-mail: research@nasscom.in
Website: www.nasscom.com