tech2 News StaffOct 26, 2016 14:33:41 IST
The last couple of years witnessed how India has become a breeding ground for startups, but most recent reports have all been hinting at a slowdown, of sort. However, a new Nasccom-Zinnov report, launched at the ongoing Nasscom Product Conclave 2016 in Bengaluru, now reveals that India remains the third most largest startup base after the US and the UK.
The report titled 'Indian Start-up Ecosystem Maturing – 2016' further adds that the ecosystem is expected to grow 2.2X times to reach more than 10,500 startups by the year 2020. The report was revealed in the presence of C.P. Gurnani, Chairman, Nasscom; R. Chandrashekhar, President, Nasscom; Ravi Gururaj, Chairman, Nasscom Product Council and Pari Natarajan, CEO, Zinnov.
Some other findings of the report include continued growth in the number of startups in 2016, and cities like Bengaluru, NCR, and Mumbai continue to lead as the major startup hub for the nation. The report points out that investors are looking at domain like health-tech, fin-tech, and edu-tech for vertical growth. Close to 650 startups were funded successfully with an amount that stands a approximately USD 4 billion.
Speaking on the side-line, R. Chandrashekhar, President, Nasscom, said, “Technology start-ups are creating a new identity for India and its technological prowess. They are defining the way the world operates making life better and easier for people and businesses alike. Our start-up report is a testimony to the potential of the start-up landscape and the scope of growth and opportunity that India presents. Nasscom has always been working towards creating a heterogeneous bond between all stakeholders and craft a conducive and innovative environment for start-ups to grow.”
Some of the other key highlights of the report are the number of tech startups in India is expected to grow by 10-12 percent to over 4,750 by the end of 2016 while over 1400 new startups have emerged in 2016. And, so, India is expected to become home to over 10,500 start-ups by 2020 by employing over 210,000 people.
Incubators and accelerators are believed to be playing a substantial role in strengthening the startup community. The support from Government and Corporates has led to 40 percent increase in the number of active incubators and accelerators in 2016. Government’s ‘Start-up India Stand-up India’ initiative this year paved way to 30 new incubators. "With the country showing signs of increased interest in entrepreneurship, Tier-II/III cities have established 66 percent of the new incubators," the report adds.
The report mentions increased interest by the youth in entrepreneurship. Out of the 25 percent growth this year, over 350 startups were founded by young students. The median age of startup founders has reduced marginally from 32 years in 2015 to 31 years in 2016, claims the report.
In terms of investments, investors are said to be looking at opportunities in startups in areas other than online retailing. Some popular verticals are Fintech, Healthtech, Edutech, data analytics, B2B commerce and artificial intelligence.
Find our entire collection of stories, in-depth analysis, live updates, videos & more on Chandrayaan 2 Moon Mission on our dedicated #Chandrayaan2TheMoon domain.