Indian Startups Current Scenario and Key Highlights of 2017
- Posted by: GroVine
- Category: Business Management Consultancy, Marketing, New Business Inception, Starting New Business, Startup Challenges, Startups
India ranks among the top five countries in the world in terms of number of startups founded. The Startup-ecosystem in India has seen a very slow growth last year. However, introduction of GST and Make In India initiatives, have given a momentum for change. Indian Start-ups are moving on the upper line and is expected to increase in the coming year.
Recent reports from NASSCOM indicates that the start-ups and entrepreneurs in are multiplying. India is said to be third largest host for startup-ecosystems globally. It is measured that India houses around 4200 start-ups, creating more than 85000 employment opportunities. With over $5 billion worth of investment in 2015 and three to four startups emerging every day. It is projected that the number of Start-Ups in India will increase to more than 11,500 by 2020, with job creation from these entrepreneurs reaching 250-300k by 2020. The number of Investors has also risen multi-fold in the past few years.
It is projected that the number of Start-Ups in India will increase to more than 11,500 by 2020, with job creation from these entrepreneurs reaching 250-300k by 2020.
Entrepreneurship is a game of patience, persistence, and diligence. While every idea finds its way through the initial issues pertaining to space, expansion, and investments; startups today are immensely blessed to have amazing opportunities to network.Stories of success inspire the youth to act and work to bring their own ideas to fruition. India’s entrepreneurial scene seems to be better than ever. Government and international organizations alike are investing in innovative ideas. The ideas of co-working spaces or incubators, to accelerate the start-ups by providing monetary and infrastructure support is given a good push to the system. Start-ups are also making good use of the facilities available and are showing a sign of good times.
Indian startups have undergone many developments in the second quarter of 2017. From being selected in the Google’s accelerator program, to raising funds from the Chinese investors, the startup ecosystem has been quite encouraging. Google selected six Indian startups for the accelerator program in July 2017. Startups using latest technologies such as machine learning and artificial intelligence have been chosen for the same. Government initiatives are expected to play a vital role in the startup ecosystem’s bright future. For instance, the commerce and industry department of the Indian Government is planning to organize a south Asia regions’ meet of startups for exchanging new ideas and increasing interaction among them, thereby showing confidence in startups.
Startups are now focusing on cutting losses, increase their overall valuation, and attain operational excellence. These qualities along with the positive sentiments of the investors, and support from the government will make the startup ecosystem of India reach new heights in the near future. The startup culture needs a platform that brings together various startups and investors to experiment, evolve, learn and unlearn.
Key Highlights of Indian Start-ups in 2017
- 63% of participants who tried to raise fund in 2016 did not have a favorable experience.
- 65% believe that the Indian start-up ecosystem may be in a technology bubble.
- 94% of participants are expected to be funded this year. The key is to analyses and take measures to ensure the fundraising to be easier than the previous year.
- 70% of participants were open to an exit.
- 64% expect to achieve an exit within 6 years.
- 60% think that an IPO is the most preferred exit route.
- 42% of the start-ups have women in leadership positions which is 33% more than the last year.
- Respondents rated the emergence of start-ups with more robust business models coupled with more exit activity as most likely to improve investor sentiment in 2017.
- The core business challenges to be addressed this year are equity funds, talent management, and market creation.
- Artificial Intelligence, Agri-tech, and Logistics voted as most under-hyped sectors.
- Digital Payments and Hyperlocal sectors are voted as over-hyped ones.
- Artificial Intelligence and Digital Payments were expected to be hot sectors in 2017.
- The Goods and Service Tax is said to be the most helpful Government initiative.
Moreover, the statistics on the demography of the ecosystem says that 72% of the founders are less than 35 years old making India home to the youngest of entrepreneurs in the world.
Technology and traditional startups are expanding quickly. With so much happening around, we can safely say that there is a revolution presently undergoing in India. This can certainly not be dismissed as a passing trend and it’s surely going to change the way the markets are working today in India. Moreover, the statistics on the demography of the ecosystem says that 72% of the founders are less than 35 years old making India home to the youngest of entrepreneurs in the world.
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