The latest start-up report by industry body NASSCOM states that seven Indian start-ups became unicorns and 52 more have the potential to get there. Among the other trends pointed out in the report are:
- Over 1,300 start-ups were added in 2019, making it the third largest start-up ecosystem across the world after the US and China. The total number of tech start-ups increased from 7,700-8,200 in 2018 to 8,900-9,300 this year.
- The addition of seven unicorns in 2019 till August, takes the total number of unicorns to 24, making India the country with the third highest number of unicorns. The new unicorns came up in sectors such as gaming, SCM & logistics and automotive shine.
- Investment into start-ups saw a steady flow with $4.4 billion being invested during Jan-Sep 2019 across 450 start-ups at a 5 per cent year-on-year growth. Funding saw a huge spike at the early stages (Series A, B) as well, with $1.6 billion funding. The trend witnessed over the year was that start-ups are increasingly focusing on B2B and offering enterprise focused services.
- An estimated 60,000 direct jobs and another 1.3 to 1.8 lakh indirect jobs were created by start-ups in the last one year.
- Interestingly what also marks as a sign of evolution is the increase in the number of deep-tech companies. Deep-tech start-ups saw an 33 per cent increase compared to 2018 taking the tally of deep-tech companies from 1200+ between 2013-18 to 2014-19 with key use cases largely in the fields of medical diagnostics, precision agriculture, predictive analytics and fraud detection.
In a clear sign of what can be called 'Bharat' building for 'Bharat' nearly 10-15 per cent of the newer start-ups are coming from emerging cities said NASSCOM. Debjani Ghosh President, NASSCOM said, "Indian start-up ecosystem has definitely come a long way in providing a level playing field for innovators to flourish by strengthening capabilities and fostering co-creation. The next wave of growth will be at the junction of convergence of technologies, where different sectors will embrace digital to re-define their operations." Even as early stage funding has picked up, seed stage still largely remains a challenge she added.