India has been the country of choice for global businesses looking to outsource their work for decades. A lot of the Indian tech enthusiasts found employment in the IT industry in both the product and service sectors. However, over the last few years, the scenario has changed with Indians looking more towards building their own innovative projects, launching startups and securing investment for their ideas. In just about ten years, India has morphed from the image of a cheap IT hub to an innovation hub, with players disrupting the national and international scene.
The Growth of the Indian Startup Ecosystem
India became the world’s fastest growing startup scene in 2014, with a NASSCOM study estimating 800 new tech startups sprouting every year. These new companies are global-oriented and youth-centric – the average age of a startup founder is only 32. Bangalore leads the country in tech startups, aided by a culture of technology and governmental incentive, followed by Delhi. NASSCOM has played a role in India’s success story, mentoring founders, connecting startups to investors, taking initiatives to inculcate an entrepreneurial spirit and addressing the need for progress with initiatives like the “Girls in Tech” collaboration with Google.
Investors Looking to India
Major investors from all over the world are actively involved in the Indian startup scene. Japan’s SoftBank made headlines all across the country funding two of India’s biggest success stories – Flipkart and PayTM. Chinese giants Alibaba and Tencent has injected millions of dollars worth of investment in Indian firms, with Alibaba backing Snapdeal and BigBasket and Tencent funding startups from diverse backgrounds like Ola, Byju’s, Hike and Practo. From the West, a host of hedge funds have invested in Indian companies – Sequoia Capital in Freecharge and Zomato, Tiger Global in Shopclues, InShorts and Quikr, Qualcomm Ventures in Attune, etc. Indian investors and angels have built up communities to support and nurture fledgling startups. With early-stage funding on the rise, India is projected to galvanize its startup growth story and challenge the US and UK for top spot in the years to come.
The Numbers Game
Statistics are in India’s favor in the startup ecosystem. With investments coming in the earlier stages for about 50% initiatives and the possibility of acquisition further down the road, 70% of the participants are open to the idea of an exit with 64% expecting an exit within 6 years. India’s startups have 42% women in leadership positions, ahead of the world average and up 33% from last year. 72% of all founders are less than 35 years old, which means India is home to the youngest entrepreneurs in the world. India has about 4200 startups, which is expected to reach 11,500 by 2020, creating 250,000 jobs. Artificial Intelligence and Digital Payments rack up the biggest returns, leading the Indian tech revolution.
Trends in 2018
Smartphone connectivity in the country is increasing every year, and with it increases internet penetration. Because of this large market, FinTech will deepen spending, and the Indian ecosystem will continue to attract money. Hyperlocal businesses are expected to shine. Investment patterns will change as US and Indian investors make space for Chinese and Japanese players to enter the market. The non-IIT/IIM Founder will get better recognition, although India is still unevenly tipped towards founders from prestigious institutions. With the sudden rise of cryptocurrency, investors will also have to decide whether to put their money on Blockchain technology or startups.
The Fintegrate Zone Conclave 2018
FinTech works hand-in-hand with IT. The burst of Indian tech startups means banking and financial services globally will concentrate their efforts in India. Discussions on the role of FinTech in the country’s entrepreneurship story and how it can improve, will be the centerpiece of conversation at the Fintegrate Zone Conclave – India’s largest FinTech conclave, which will be held in Mumbai from 27th February to 1st March. Be there to learn about the details of the growth story and how times are changing for traditional practices.
Click here to book your seats; and for further details, take a look at Fintegrate Zone’s website at http://fintegrate.zone/ and follow them on social media using the hash tag #FZ18.