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Gujarat has witnessed a sharp jump of 160 per cent in registration of start-ups between 2020 and 2022, far exceeding the 83 per cent growth witnessed at the national level.
As per the recent data tabled in the Parliament, the registration of start-ups as recognised by Department for Promotion of Industry and Internal Trade (DPIIT) surged from 873 in 2020 to 2,276 in 2022 in the State.
Whereas, at the national level, the registration of start-ups grew by 83 per cent from 14,498 in 2020 to 26,542 in 2022, the Minister of State for Commerce & Industry Som Parkash informed the Parliament on Friday..
In 2023, the data till February 28 showed about 592 entities were recognised as start-ups in Gujarat, taking the total number to 5,444.
Since the launch of Startup India initiative in 2016, DPIIT has recognised 92,683 entities as start-ups as on February 28, 2023. In the last three years (2020, 2021 and 2022) 67,223 entities have been recognised as start-ups by the DPIIT.
Gujarat ranks fifth in terms of number of start-ups.
GVFL annual Meet
Notably, at its Annual Investors Meet on Friday, Gujarat-based venture finance major GVFL (Gujarat Venture Finance Ltd) saw 250 start-up founders, investors, incubators, and funds who highlighted the need to adopt frugal business practices to attract investor interest amidst the challenging economic conditions.
“The times are challenging. Money is there, but funds are going to be choosy in the start-ups they invest in. Start-ups will have to re-look their revenue models, adopt more frugal business practices, reduce expenses, and focus on profitability to tide over the crisis,” said Kamal Bansal, MD, GVFL at the event held in Ahmedabad.
Sunil Parekh, a noted corporate advisor maintained that there was no new technology deployment or foundational technological research done by tech start-ups and unicorns.
He further added, “India is home to 91,000 registered start-ups, 108 unicorns, and the third-largest startup ecosystem in the world. Almost no unicorn in India has been formally incubated in an incubator.”
Mihir Joshi, President, GVFL highlighted the prevailing cash crunch with the investor community as they get choosy with their investment preferences. “Investors are being cautious. But is this the funding winter? No, we are back to normal from the unsustainable highs start-up valuations had touched.”
As per the data shared with the Parliament, the highest number of 7,587 start-ups are registered in IT services followed by healthcare and lifesciences with 6,459, and education with 4,164 during 2020-2022.
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