VARINDIA tries to understand how the smart start-ups are disrupting the industry with their innovative technologies and approaches. Various data points reflect on their performance matrices. It is absolutely a fact that the investors are bullish on Indian startups and are betting big on companies that have the ability to grow.The start-up ecosystem is to bring a trillion dollar opportunity.
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The Indian start-up sector has already been ignited in the past five years with favourable policies around taxation, investments, ease of doing business, incubation, foreign capital, cross border, start-up lobby groups, and industry associations. The foundation of the ecosystem is already in place with India being the third largest hub for start-ups globally. India is witnessing a rapid rise in the B2B tech start-up landscape, focused on verticals like health-tech and fintech. While Bengaluru, Delhi/NCR and Mumbai retained their position as the key start-up hubs in India, 20 per cent of the start-ups emerged from tier II/III cities.
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Investment data also shows an increase in the risk appetite of investors, with a significant jump in the pace and number of deals this year. Investors are also showing interest into the sectors including ecommerce and emerging tech-focused companies, including automation, artificial intelligence etc.These start-ups have already created value of over $130 billion.
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The Indian start-up ecosystem has really taken off and come into focus on its own driven by factors such as massive funding, consolidation activities, evolving technology and a burgeoning domestic market. From e-commerce and fintech to logistics and consumer services, India is now home to 26 āunicornsā - $1+ billion valued startups that are cumulatively worth more than $73 billion and have raised $24 billion up to now.
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There are certain successful start-ups that are growing rapidly and changing how an existing industry works in the process like Paytm, Redbus, InMobi, Housing.com, Zivame, AdPushup, to name a few. They have brought a revolution in the industry.These start-ups in India have given rise to more start-ups.Ā
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The average valuation of an Indian start-up is $2.0 million as compared to $4.0 million of an American one. 45 percent of product/digital organizations are focusing on the global market and 30 percent continue to be technology hotspots. With a 55 percent of B2C, 40 percent of B2B, and 5 percent of B2C/ B2B start-ups, this ecosystem has a lot of ground to cover in terms of securing funding.
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