India continues its momentum of being one of the most vibrant landscape for startups worldwide, strengthening its position as the third largest startup ecosystem across the world. In 2017, the Indian startup ecosystem added over 1000+ tech startups, taking the total number of tech startups to over 5000 with a total current market valuation of over US$ 32 Bn.
As per recently released NASSCOM report – Indian Start-Up Ecosystem – Traversing The Maturity Cycle – Edition 2017, India has witnessed a phenomenal progress of the technology start-up ecosystem in the last 10 years. The period was marked by the inception of several thousands of start-ups, rise of unicorns with a total current market valuation of over US$ 32 Bn and the emergence of category leaders in areas of Robotics, Analytics, EduTech, HealthTech, Fintech, AI etc.
Indian ecosystem continues to remain attractive for investors with almost US$ 6.4 Bn of funding in first half of 2017 demonstrating 167% growth over H1 2016. The start-up ecosystem also witnessed mushrooming of a significant base of companies building solutions for India centric grass root level problems across Healthcare, Education Inclusion, Financial Inclusion, Clean Energy and Agriculture.
A major trend we see is startups emerging from smaller Tier II cities. These startups have the advantage of low burn rate and lower valuations. These have potential to scale quickly and expand to other cities if provided the right guidance. The biggest impetus for startups is the domestic Indian market. The recent demonetization move by government has not only given a impetus to Fintech startups but also pushed the 50m+ SME segment towards a digital way of doing business. India is being viewed as the next lucrative market after China by startups from Europe, US and Asia Pacific.