Comments
India has become the third largest tech star-tup hub in the world with Indian start-ups having raised $63 billion over the past four years, according to the ‘Overview of Indian Startup ecosystem’ report.
The report has been published by Praxis Global Alliance and Indian Private Equity & Venture Capital Association (IVCA).
The report is based on the analysis of the start-up sector from 2016 to 2020. From 2016 to May 2020, Indian start-ups have raised $63 billion. In 2019 alone, start-ups raised $34 billion. Start-ups had raised an additional $17 billion by May 2020.
The investments have been driven by tech-enabled players. This phase has also spawned 27 Indian unicorns.
Rajat Tandon, President IVCA, said, “The growth stage start-up and venture capital ecosystem are poised for the next leap with an increasing number of unicorns, soonicorns and minicorns, even amidst the current crisis of Covid-19.”
“Most importantly, the growth stage investors are continuing the momentum, filling a void for start-ups that have just crossed their mid-life or are at the inflexion point where they, very much need this capital to scale and expand,” he added.
Tech talent
The report further added that the growth phase of the start-up ecosystem has also been fuelled by a large technical talent pool available in the country along with positive perception around entrepreneurship. Start-ups have also been learning and adapting strategies from global tech companies. Support from the government in terms of infrastructure investment and funding, along with increased foreign capital, is also motivating domestic capital pools to participate in funding, it said.
Also read: Ban on Chinese apps opens up opportunity for India play
Additionally, in terms of tech start-ups, there remains a large demand in solutions, including: “a) product designing tools, b) development platforms, c) product testing tools, d) solution hosting and infrastructure, and e) customer support tools.”
Madhur Singhal, Managing Director, Praxis Global Alliance, said, “India’s start-up ecosystem is primed for a renewed phase of growth.”
“E-commerce and tech start-ups have shown resilience during Covid, fundamentally altering their unit economics to become more sustainable. Covid-19 has reaffirmed the focus on cost efficiency to boost bottomlines and capital efficiency to boost investor return. We anticipate continued increase in the number of unicorns coming out of India,” Singhal added.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.