Nasscom says more start-ups are being funded and India has held on its place as the third largest start-up base in the world - although China and Israel are snapping at its heels. Nasscom released its report on start-ups for 2016 in Bengaluru on Wednesday which said that funding for start-ups has decreased by over 20 per cent in 2016 compared to the previous year.
India to have more than 10,500 startups by 2020, employ over 210,000 people
India has emerged as the third largest start-up base and such ventures are poised to grow 2.2 times to reach 10,500 by 2020 despite a perception that the ecosystem in the country has slowed down in the last year. The Nasscom report says there are over 350 start-ups - a rise of over 25 per cent from last year. The main areas for start-ups remain Bengaluru, the National Capital Region and Mumbai - with 70 per cent of new start-ups – while new places like Kolkata, Jaipur and Kochi are emerging as start-up hubs.
What Startup ventures in India are of Investors interest ?
Ventures in Fintech, Healthtech, Edutech, data analytics, B2B commerce and artificial intelligence, are seeing interest
According to the report, the number of tech startups in India is expected to grow by 10-12 percent to over 4,750 by the end of 2016. With this impetus, India will become home to over 10,500 startups by 2020, employing over 2,10,000 people, reveals the report. It added that there is a 40 percent increase in the number of active incubators and accelerators in 2016 with impetus from government and corporates. Over 30 new academic incubators have been established under the government’s ‘Startup India Stand-up India’ initiative this year, and tier-II/III cities have established 66 percent of the new incubators, it added.
Highlights from the report
- Investment of $4 billion came in the last one year
- There were 1,400 new start-ups in 2016
- 100,000 people are employed in start-ups in India – which is expected to double to over 2,00,000 by year 2020. That year will also see more than 10,000 Indian start-ups, says Nasscom.
- The median age of start-up founders was 31 years - a tad lower from 32 years in 2015
- Ventures are increasing in areas like financial technology, healthcare technology, education, data analytics, B2B (business-to-business) commerce and artificial intelligence
- There is an 18 to 22 per cent mortality rate among start-ups, which is perfectly normal, says Nasscom.
- There are over 140 incubators in the country
- There are more than 350 active angel investors