India today is developing as a vibrant and ever evolving startup nation with a mind blowing growth in terms of the number of startups that are being established in a multitude of sectors. Investors and startup founders are acting carefully and concentrating on making profits.
There has been a remarkable improvement and development in the number of innovation and technology startups since 2011 due to the streamlining of spends.
The startup ecosystem is poised for continual growth as is evident from the various indicators especially due to the initiatives taken by the Indian government. There is also a tremendous growth in incubators and a rise in the number of startups funded in 2016 coupled with progressing enthusiasm from speculators. These factors will ensure that the sector stays exciting with huge opportunities to invest and grow.
India is raising and creating its own unique startup story by learning from its ups and downs. The worldwide prescribed procedures and achievement KPI's are essential, however they need to be adjusted as per the requirements of the Indian market. The country has an exceptional, dynamic and constantly changing market. Less than 10% of the Indian population lives in tier 1 urban areas. Hence, India has an unbalanced level in terms of revenues and incomes, which create different markets in the country with a diversity of segmentations. On the other side, it has one of the largest manpower and the government is developing itself aggressively on digitalized and online activities. Our biometric framework is the world's largest, which is inciting Indian tech startups to create in their own particular and remarkable ways.
Startups in India are changing the idea of shopping and consuming. Innovative minds are quickening the development of India's economy, enhancing the citizen’s life style, building inventive answers for genuine issues and providing growing opportunities for different stakeholders. Startups are leveraging on innovation to tackle issues (such as power, infrastructure, healthcare, financial inclusion, agricultural productivity, skilling and employment, education) that have been tormenting the nation for a long time.
Moreover, global investors are investing in the Indian startup ecosystem which is leading to an increase in FDI and the traditional businesses are being positively impacted through increased spending by startups.
According to the latest NASSCOM report, funding has been a little sluggish and has had an important change in the strategy of fund allocation for better risk diversification. The focus on B2B companies, more number of small ticket-size investments, mixed portfolio of companies are the current key characteristics. So, while the total funding is expected to witness a 20-30% decline this year, the number of startups funded and the number of startup deals is expected to rise by 6-8% and angel investments are on the rise, with a 20% increase in the number of active investors this year.
The Government of India initiated the “Start up India; Stand up India” campaign and proposed to construct a solid ecosystem for supporting development and startups in the nation. A plan that will drive practical monetary development and create huge scale work openings. The Government, through this activity expects to enable startups to grow through innovation and design.
In order to meet the objectives of the initiative, an action plan was officially declared to address all parts of the startup ecosystem. With this action plan, the Government hopes to accelerate spreading the startup movement from the digital/ technology sector to a wide array of sectors including agriculture, manufacturing, social sector, healthcare, education, etc. and from existing tier 1 cities to tier 2 and tier 3 cities including semi-urban and rural areas.
Generally, the sector of new startups in India is developing and getting mature and characterized by being change centric, realignment of assets and funds, and realignment of technique and improvement of clear roadmaps, to establish an effective and manageable startup ecosystem. The future will be about pragmatic investments, profitability of business, rise of India specific models and rise of tier 2/ tier 3 startups embarking on a journey to solve India’s particular issues.