Indian Startup Growth has been phenomenal in recent times with as much as 30+ unicorns emerging from the sector. India has been a hot new spot for startups over the past few decades and it is safe to say that the country will continue to be an attractive location for entrepreneurs in the year 2021. According to a PwC India report “Startup Perspectives – Q3 CY21,” startups landed a total of $10.9 billion in 347 deals in the third quarter of calendar year 2021.
There are many events in the economy and in the country that is giving stimulus to the growth in startups in India. There are three trends coupled with deeper mobile penetration, that are triggering further growth of Indian startups and that is; rise of the gig economy, increased investment opportunities, and increased access to capital.
In Q3 2021, fintech and financial service startups raised $2.24 billion across 70 deals. This is followed by edtech ($1.40 billion, 50 deals) and healthtech ($974 million, 49 deals).
Trends like increased reliance on digital payments, rapid urbanisation, emergence of a large and young population, diverse cultures and communities, and an increasingly digital economy, will remain the catalyst for the growth in the sector.
Success stories has already emerged, some of them include IPO-bound fintech firm MobiKwik and automobile classifieds platform CarDekho. Prior to that, cloud kitchen startup Rebel Foods entered the coveted club after raising $175 million in a Series F funding round led by Qatar Investment Authority (QIA), with participation from existing investors, Coatue and Evolvence, at a valuation of $1.4 billion.
Startups have been a major contributor to India’s economic success. The Indian economy is projected to grow at a CAGR of 7.4% from the year 2017 to 2024, and this has been attributed mainly to the growth of startups in the country. In the investment sphere Sequoia became the top investor, with a total of 35 deals followed by Kunal Shah, Founder, and CEO of fintech startup CRED, with 29 deals.
“Startups have leveraged the accelerated digital adoption among businesses and individuals alike to create newer business models and this is driving investor interest in a big way,” said Amit Nawka, partner, deals and startups, at PwC India. We’re seeing an increase in average deal size and quicker funding rounds, which has led to a surge in deal activity across sectors, since early this year.”
Titan Capital, Lets Venture, and Indian Angel Network Fund claim position among the top five investors list, in Q3 2021, with 18, 17, and 16 deals respectively.
According to a study by the National Association of Software and Services Companies (NASSCOM), there are more than 205,000 startups in India that contribute over $150 billion annually to the GDP directly and indirectly. This is more than any other country in Asia-Pacific region.
Emerging Trends in Indian Startup Ecosystem that will Spur Indian Startup Growth
![Indian Startups Growth](https://startupstars.in/wp-content/uploads/2021/12/Indian-Startup-Growth-startupstars.jpg)
India has been a hub for entrepreneurial activity and has been the second largest startup ecosystem in the world. The Startup India campaign was launched by Prime Minister Narendra Modi in 2015 with the intention of encouraging entrepreneurship and innovation in India, and to improve access to funding. There are many emerging trends that have been observed recently in this rapidly growing startup ecosystem.
The Indian government target for 100% mobile penetration will be another key trigger to sustain and fuel further growth. What we have seen as a result of this initiative is that, there have been a multitude of new mobile-first startups, which is evident from their usage of chatbots or voice assistants to interact with customers on a more direct level.
The other major trend is an increased interest from domestic investors looking to invest locally rather than overseas. So, for every single startup up , in order to stay ahead of the curve, you need to be aware of what’s trending.
Indian startups have been disrupting multiple sectors, from online food ordering and ride hailing to mobile apps and healthcare. According to a recent report, there are more than 40,000 early-stage startups in India that have been founded over the last decade.
What can be done to foster startup growth and development in India?
India has established itself as a nation of entrepreneurs with many successful startups. But, there are still many challenges to overcome for the ecosystem to grow and develop further.
The Indian government has taken steps to encourage entrepreneurship and startup growth in India by implementing various schemes like Startup India, Standup India, Make in India, etc.
India also needs to ensure that it creates an environment for startups where they can succeed. The government should provide resources like incubators, mentorships and partnerships with established companies which could help them grow their ideas into successful ventures.
Growth and development can be fostered by providing opportunities for everyone to participate in the community, by listening to their needs, and by ensuring that they know that their voice matters.
A good way of fostering growth and development is to provide opportunities for everyone in the community to participate. This includes listening to their needs and making sure they know that their voice matters – how it can make a difference.