THE NEXT BIG THING AFTER IT

BOOM THE
START UPS IN INDIA

INTRODUCTION
Information

technology(IT)

is

the

application

ofcomputersandtelecommunicationsequipmentto
Store
Retrieve
Transmit
Manipulatedata
ofteninthecontextofabusinessorotherenterprise
The term is commonly used as a synonym for computers

andcomputernetworks
It

also

encompasses

technologies

otherinformation

distribution

ITINDUSTRYININDIA
InformationtechnologyinIndiaisanindustryconsistingoftwomajor

components:
ITservices
Businessprocessoutsourcing(BPO).

AccordingtoNASSCOM(NationalAssociationofSoftwareandServices

Companies)ThesectoraggregatedrevenuesofUS$147billionin2015
India'sprimeministerNarendraModihasstarted'DigitalIndia'projectto

giveITasecuredpositioninside&outsideIndia.

INDIANTALENTPOOL
Indiaaddedaround5.8milliongraduatestothetalentpoolduring

FY15
GrowingtalentpoolofIndiahastheabilitytodrivetheR&Dand

innovationbusinessintheIT-BPM(BusinessProcessManagement)

CONTI
Indias technology and BPM sector (including hardware) is

estimatedtohavegeneratedUS$146billioninrevenueduring
FY15
The contribution of the IT sector to Indias GDP rose to

approximately9.5percentinFY15from1.2percentinFY98
The top six firms contribute around 36 per cent to the total

industryrevenue,indicatingthemarketisfairlycompetitive.

STATUSOFITININDIA
The IT industry continues to be the largest private sector

employerinIndia.
AccordingtotheEconomicSurvey2014-2015
IT make up the single largest contributor to India's Services

exports
IT includingBusiness Process Management(BPM), continues

tobeoneofthelargestemployersinthecountry
Directlyemployingnearly35lakhpeople.

ITBOOM
IndiahaswitnessedamajorboomintheITsectorduringthe

lastdecade
IThassurelychangedalotoflivesasithaschangedthe

economyofIndia
Theyear2015iscomingwithpositivevibesforjobseekers.
Expectingtocreate9.5lakhnewjobsindifferentsectorswith

IT&ITeSandFMCGsectorsleadingthechart.
While56%ofrecruitersexpectthenewjobcreationtobein

theITsector.

CONTI..
The pace of IT spending in India may make it the third-largest IT

marketintheAsia-Pacificby2016.
Second-largestby2018,afterChina.
ThisboomhasledtoarapidincreaseinthenumberofIndianITfirms.
TheIndianITservicessegmentisestimatedtogrowby15.7percent,

andthesoftwaresector,by14percentin2015
TheIndianITservicessegmentisestimatedtogrowby15.7percent,

andthesoftwaresector,by14percentin2015.

STARTUP
Graduatesfromthecountryspremierinstitutesarenolongerjoiningthe

largecompaniesormultinationals
Theyprefertojoinfledglingstartups

Thesestartupsfocuson
Exports
addresslocalmarkets
evenhyper-localones
typicallyofferB2Cservices.

UnliketheITservicescompaniesthathadtomusterfinancingontheir

own,angelinvestorsandventurecapitalistsarelininguptofundtodays
startups.

INITIATIONOFSTARTUP
GROWTH
Indian government delivered strongly on its promises of being a

startup-orientedenabler.
Mr.NarendraModiproposedWe are looking at systems for enabling

start-ups. We must be Number 1 in start-ups. 'Start-up India' &

'Stand up India
The finance ministry came up with its annual Economic Survey

2014-15
Ithadsomeinterestingobservationsfromthetechnologysector.
The year witnessed hyper-growth in the technology startup and

softwareproductlandscape.

CONTI

Arun Jaitley launches IndiaAspiration Fund to boost startups in

India
AfundoffundsundertheSmallIndustriesDevelopmentBankof

India (SIDBI) in order to boost the startup ecosystem in the

country
An initial corpus of Rs 400 crore has been already allocated to

variousventurefundsunderit
"India is witnessing a startup revolution and to harness the

potential of India's innovators and entrepreneurs a vibrant

financial ecosystem is essential. IAF will play a vital role in this
financial ecosystem,"saidArunJaitley.

SCOPEFORSTARTUP
The first IT boom in India solved the problems of foreign

companies.
WhereasthecurrentstartupboomissolvingIndiasproblems.
BangalorehasoveramillionpeoplealreadyworkingintheIT

andBPOsectors
Andanenormousstartupecosystemisevolving.
Thereshouldnearlybe100,000startupsinIndiainthenext10

years.

CONTI..
Giventhat65%ofpopulationinIndiaisbelowtheageof35,

thereisahugescopeforsuchstart-ups.
NotbyBPOservicesbutbyIndiabecomingamajorhubfor

startups
TheworldsbeingBangaloredonceagain
The global start-up ecosystem ranking 2015 Bengaluru at 15,

fourplacesaboveits2012ranking.
Apart from Bengaluru, Delhi, Mumbai, Chennai, Hyderabad

and Pune also significantly contribute to the IT sector in the

country.

MAKEININDIAMISSION
Start-upIndia,StandupIndia"topromotebankfinancingfor

start-upsandofferincentivestoboostentrepreneurshipandjob
creation.
Eachofthe1.25lakhbankbranchesshouldencourageatleast

one Dalit or tribal entrepreneur and at least one woman

entrepreneur.Loanswouldalsobegiventohelppeople.
The Economic Survey 2014-15 says the IT and ITeS sector

includingBusinessProcessManagement(BPM)
continuestobeoneofthelargestemployersinthecountry,

directlyemployingnearly35lakhpeople

CONTI..
NASSCOMestimatestherevenueoftheIT-BPMindustryatUS$119billion
Theyearwitnessedhyper-growthinthetechnologystart-upandsoftware

productlandscape
Indiarankingasthefourthlargeststart-uphubintheworldwithover3,100

start-upsinthecountry
Softwareproductsandservicesrevenuesfor2015-16isprojectedtogrowat

12-14percent.
MakeinIndiamissionhasincludedITandBPMamongthe25focus

sectors.

FUNDING IN START UP

Funding is key for any startup to expand its horizon of products and

resources.
'venture

capital funds' An investmentfundthat manages money

frominvestorsseeking private equity stakes in startup and small- and

medium-sizeenterpriseswithstronggrowthpotential.
These investments are generally characterized as high-risk/high-return

opportunities.
Anangel

investor orangel(also

known

as

businessangelor

informalinvestororangelfunder or privateinvestoror seedinvestor) is an

affluent individual who providescapitalfor a business start-up, usually in
exchangeforconvertibledebtorownershipequity.

EXAMPLE

TOP START UP &

INVESTORS
Flipkart

MorganStanley

Ola

RatanTata

Snapdeal
Paytm

Alibaba,Foxconn,Softbank

SAIFPartners,IntelCapitalandSAP

Ventures
BookMyShow
InMobi

Byers

Network18

SoftBankandKleinerPerkinsCaufield&

NEWS
IIFLsetsupRs1,000crorefundtoinvestinstartupsandVCfunds
VCsadoptnewfundingroutetoinvestinstart-ups
Aditya Birla Group announced the launch of Aditya Birla Bizlabs to

collaboratewithstartups
provide them with the opportunity to scal up in a large operating

businessenvironment.
AdityaBirlaBizlabswillbelookingatstartupswhichofferinnovative

solutionsintheareasofretailandfinancialservicesormobility
Kolkata start-ups warm up to angel investors. Investors do not

outnumber seekers; more ventures now look for funding

CONCLUSION
Booming of IT industries has boosted a substantial

increasetowardspersonalfulfillment.
IT people going all over the world have boosted Indian

economytoagreatextent.
Lots of job opportunities have showed up in the field of

IT,whichisagoodsignfortheevergrowingpopulation
ofIndia.