In this article, we will discuss Startup Growth Scenario in India. So, let’s get started.
Startup Growth Scenario in India
- India is a hotspot for startups. In 2021 alone, Indian startups have raised more than $23 billion, spread over 1,000+ deals, with 33 startups entering the coveted unicorn club. So far, the year 2022 has added 13 more startups to the unicorn club.
- After the United States (US) and China, India has emerged as the world’s third-largest startup ecosystem
- Currently, India is witnessing rapid growth in the number of startups. According to the India Venture Capital Report 2021 published by Bain and Company, the number of cumulative start-ups has grown at a CAGR of 17% since 2012 and crossed 1,12,000.
Booming of India’s Startup Ecosystem
- Recognition of Significance of Startups: India has recognized the need to develop innovation and incubation centers for its large student community to foster innovation and entrepreneurial mindset through academic institutions.
- A rising number of incubators and a steady inclination of young executives towards starting their own ventures is also propelling the entrepreneurship and early-stage startup ecosystem in India.
- Availability of Potential: A study on tech startups of 2021 revealed that a sizable number of edtech founders are young graduates from IITs and premier engineering colleges or those who worked for global consulting firms.
- This availability of young talent with the right blend of passion, expertise, and mindset of Indian entrepreneurs puts India’s early-stage startup ecosystem at an advantage in cashing on the opportunities of a booming market.
- Startup Specific Initiatives: The Government of India has been playing a crucial role in facilitating the growth of early-stage startups through the implementation of progressive policies and creating of relevant infrastructure.
- Under the Startup India Initiative launched in 2016, the government has endeavored to simplify complex legal, financial and knowledge requirements in an effort to encourage the participation of early-stage potential startups.
- Reforms such as opening up sectors like space-tech for private participation, tax holidays for startups fulfilling certain eligibility criteria and creation of state-run incubators are lowering the odds of establishing successful startups and helping them grow.
- Startup-Corporate Collaborations: Established corporates who lack innovation capacity and agility, and nimble early-stage startups who lack cash for growth and networks for market access, provide a unique and scalable platform for such collaborations and multiplied wealth creation.
- Various corporate-startup partnership programmes have been driving innovation and accelerating the growth of early startups in India – Microsoft India has accelerated more than 4,000 startups, while Tata Motors is engaged with half a dozen startups and exploring partnerships with 20 more.
- Risk-Taking Capabilities: There has been an extremely encouraging shift towards engineering and product start-ups. The strength of the Indian start-up ecosystem reflects the most in the increasing risk-taking ability and ambitions of young Indians.
- This ability of the young generation to take risks and move faster without fear has become India’s biggest asset today.
- The fact that Indian startups are becoming global entities by creating products and solutions for world markets is a testament to this approach.
