With over $5 billion worth investment in 2015 and three to four startups emerging every day, India has paved its way to secure the third position in the world in terms of the number of startups, 4200 and counting, a growth of 40%, by the end of 2015.
The latest report by industry body NASSCOM and Zinnov, analyzes the current scenario and emerging trends across the various dimensions that define the Indian startup ecosystem, and gauge India’s position as a global startup hub that is becoming attractive for investors, startups, & corporates.
As per the statistics given in the report, the number of active investors in the ecosystem has grown from 220 in 2014 to 490 in 2015, depicting a 2.3X growth. Further, 8 out of every 10 top VC/PE Firms in India are foreign, and global investment in the Indian ecosystem is leading to an increased FDI.
The report also states that total funding in 2015 has grown by ~125% over 2014. Similarly, the number of accelerators grew by 40% from ~80 in 2014 to ~110 in 2015.
“We are the fastest growing ecosystem in the world – so the first big wow number. Compared to last year, we have moved up from being the fourth largest ecosystem in the world to the third largest. If all goes well, next year by this time we should be the second largest,” said NASSCOM President, R Chandrasekhar.
India serves as the fastest growing startup-base worldwide and stands third in technology driven product startups just after US and UK respectively.
The report reveals that the boom in the startup ecosystem has generated employment for around 80,000 to 85,000 people in total. More than 65% of the startups are located in NCR, Mumbai and Bangalore.
The stats on the demography of the ecosystem says that 72% of the founders are less than 35 years old making India home to the youngest entrepreneurs in the world, with gender breakup of 91% male and 9% female.
Majority of the 1200 new startups are B2C, primarily present in 3 segments namely eCommerce, consumer services and aggregators followed by hyperlocal, health-tech, edu-tech and analytics.
The boom in the Indian startup ecosystem has made a conspicuous impact on certain critical areas such as education, healthcare, employment, agriculture etc. On the macroscopic level, the ecosystem has contributed majorly to the Indian economy by enhancing citizen’s life, building innovative solutions and generating scope for opportunities for stakeholders.
The digital revolution coupled with startup evolution has been instrumental in transforming India’s image as the repository of next big idea. Gone are the days when Silicon Valley was considered, “the space” for startups to be in. Today, India stands as one of the major technology hotbeds offering fascinating opportunities for emerging companies to thrive and establish themselves in the world with their innovative ideas and disruptive approaches.