India joins Singapore to rank among the world’s leading geographies in the world when it comes to producing “scaleups” – startups that have reached a valuation of at least US$50 million, according to a report by Startup Genome.
The report, which analyzed data from over 50,000 startups across 280 ecosystems, found that five Asian countries – China, India, Israel, Singapore, and South Korea – make up half of the top 10 countries with the most scaleups.
China ranks second globally with 1,491 scaleups, followed by India in fourth place with 429 scaleups. Israel, Singapore, and South Korea occupy the seventh, ninth, and tenth spots respectively, with 246, 133, and 164 scaleups each. Japan is close behind at eleventh place with 113 scaleups.
The report by startupgenome defines scaleups as startups that have raised at least one round of funding at or above US$50 million in valuation. Only 4.6% of startups worldwide have achieved this milestone, which indicates a high level of maturity and growth potential.
Factors that influence the rise of Scaleups in India
The report also reveals some interesting insights into the factors that influence the success of scaleups in different regions. For instance, North American startups receive 55% of VC funding worldwide, while Asian startups account for 31% of the total.
However, Asian startups that focus exclusively on markets outside their home continent are less likely to become scaleups than those that cater to local or regional needs. This could be due to language and cultural barriers, as well as differences in market preferences and regulations.
Another finding unique to Asia is that B2C startups are more likely to become scaleups than B2B ones. This could be attributed to the large and growing consumer markets in Asia, especially in emerging economies like India and Indonesia. The report also notes that biotech and pharmaceuticals is the leading industry by number of scaleups globally, followed by fintech.
The Scaleups report highlights the importance of nurturing and supporting scaleups, as they are key drivers of innovation, job creation, and economic growth. It also provides recommendations for policymakers, investors, and ecosystem builders on how to foster more scaleups in their respective regions.
