Nasscom Indian Start-Up Ecosystem Report 2018 Summarised

India has managed to retain its position as the 3rd largest start-up ecosystem in the world with more experienced professionals taking entrepreneurial route. It has also scrolled up three places in 2018 to position itself in the 57th rank in the Global Innovation Index from 60th position in the previous year. Besides India also holds the title for the highest Unicorn holder of 8 ventures right after the US and China. The Indian unicorn list is expected to add 10 more businesses by the end of 2020.

The overall startup base in the country is estimated to exceed 7500, a growth of 12-15% from last year. The number of women founders has multiplied to 14% in 2018 from 11% last year as well as more Tier 2/Tier 3 cities are emerging as startup accommodators. A whopping figure of 7200-7700 Start-ups incepted during 2013-18, with overall base proliferating at a rate of 12-15%.

Enterprise Software witnessed a growth of 16% with over 1100 ventures cropping up in 2018, so did the FinTech segment with a rate of 14% and more than 900 startups due to the onset of innovative technology leading to the efficiency in payment, lending and banking.

The seamless digital transaction process for consumers has brought about 500 million new users thus increasing internet penetration leading the way for the growth in Marketplace at a pace of 12%.

Integrating a tech platform by seamlessly connecting doctors and patients has led to a significant rise of 8% in HealthTech space. Over 500 startups in this domain have come up comprising of online pharmacies, wearable solutions for fitness tracking and coaching, health monitoring devices, consultation platforms, etc.

The technology-induced educational solutions for the new generation of learners and the wide level of acceptance in the ecosystem has resulted in the creation of over 400 startups implying a growth of the EdTech segment by 6% in the last five years.

Industry verticals like logistics and transport witnessed a growth rate of 5%, Industrial & Manufacturing – 4%, Consumer Software – 4%, FoodTech – 3%, HRTech – 2%, RetailTech – 2% while others including Automotive, Travel, Media & Entertainment, AdTech, Real Estate, Gaming, Security, etc. has a collective growth rate of 24%.

AgriTech sector has augmented at a rate of 12% while the CleanTech sector witnessed a growth of 9%. 1200+ Number of Start-ups added in 2018; steady and sustained growth in new Start-ups.

Number of startups to incorporating Advance tech in their business has soared and is constantly expanding at 40% CAGR.

Data Analytics stands tall in its adoption across various industry verticals and took away the massive chunk of the pie of 27% out of the 1200+ startups added this year. Not far behind is IoT at 26% and Artificial Intelligence (AI) at 24%, followed by AR/VR at 6% and Blockchain at 5%. 3D Printing, drones, automation vehicles, RPA collectively constituted of 12%.

Indian startups going global

OYO hospitality chain launched its operations across Malaysia, China, UK, Indonesia and Japan.

Ola has expanded across Sri Lanka, Bangladesh, Australia and UK.

BYJU’s penetrated the international market after acquiring Tutor Vista and Edurite in 2017. It has its presence across US, UK, Australia.

Incubators and Accelerators

The figures for the startup ecosystem enablers has gone up to over 210 the rate of which is equivalent to 11% YoY. 50+ incubators/accelerators have been registered in the corporate and private segment each. Out of which more than 35 corporate incubators/accelerators have been incepted in 2018 alone. Additionally, 95+ have been registered in the academic domain and 20+ set up by the Government.

International collaboration and accelerator programs - 14+ active International Startup Exchange missions.

  • India-Israel Global Innovation Challenge wherein 18 Indian startups were selected
  • French Tech Ticket Program wherein 11 Indian startups out of 70 won the challenge
  • K Startup Grand Challenge wherein 10 of the 80 start-ups were selected from India
  • Mayor Of London’s IE20 Business Programme wherein 20 Indian Startups out of 3000 applications were picked.

Funding Trend

Total funding between Jan-Sep 2017 accounted for $2 billion across 529 deals. However, the same period of 2018 witnessed a rise of 108% as the overall funding rocketed to $4.2 billion across 451 deals with an average of $9.4 million funding per deal.

Early Stage funding rose from $993 million in the previous year to $1 billion in 2018, a 4% growth. While the winner was - the Late Stage funding which shot up at a rate of 259% from last year’s $847 million to the current year’s $3 billion.

However, the Seed Stage funding has not been optimistic with a fall of 21% from 2017’s $191 million to 2018’s $151 million. Blockchain funding grew by 500% YoY from $2 million in 2017 to $11 million in 2018.

Over 70 mergers and acquisition deal took place, a 15% increase from 2017’s 60+ deals.

Author image

About StartupTalky

StartupTalky is India’s leading media platform for entrepreneurs to read startup news, resources, research reports, opinions and inspiring/success stories.
  • Bangalore, India
StartupTalky
Facebook group · 117,631 members
Join our Facebook Group