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, according to a new Nasccom-Zinnov report, launched at the ongoing Nasscom Product Conclave 2016 in Bengaluru.
The report titled ‘Indian Start-up Ecosystem Maturing – 2016’ reveals that India remains the third most largest startup base after the US and the UK. The report also finds that Bengaluru, NCR, and Mumbai continue to lead as the major startup hubs in the country.
"The startup landscape in the country is becoming the epitome of innovation, with companies bringing out solutions that are aimed at solving locally relevant issues... Nasscom believes that the contribution by startups have been growing at a rapid rate and the landscape has a huge potential in terms of business stability, revenue growth and further innovation," said Nasscom Chairman C P Gurnani.
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.”
The report also highlights 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 with this momentum, India will become home to over 10,500 startups by 2020, employing over 2,10,000 people.
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% of the new incubators, it added.
The report mentions increased interest from student entrepreneurs this year. A growth of 25% has been witnessed in 2016 with over 350 startups being founded by young students.
With regard to investments, the report states that investors are increasingly looking at opportunities in startups in areas other than online retailing. Some popular interests are Fintech, Healthtech, Edutech, data analytics, B2B commerce and artificial intelligence, mentioned report.
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.