India has emerged as the third largest start-up base and such ventures are poised to grow 2.2 times to reach 10,500 by 2020 despite a perception that the ecosystem in the country has slowed down in the last year, says a report.
India is in the third position just behind US and UK, and nearly 1,400 new startups are expected by end of 2016, up by 8-10% from last year, revealed the “Indian Startup Ecosystem Maturing – 2016″ report by Nasscom-ZINNOV.
The report also finds that Bengaluru, NCR, and Mumbai continue to lead as the major startup hubs in the country.
In terms of vertical growth, investors are looking at domains like health-tech, fin-tech, and edu-tech. With a total funding of approximately $4 billion, close to 650 startups were funded signifying a healthy growth of the ecosystem, the report said.
“The startup landscape in the country is becoming the epitome of innovation, with companies bringing out solutions that are aimed at solving locally relevant issues… Nasscom believes that the contribution by startups have been growing at a rapid rate and the landscape has a huge potential in terms of business stability, revenue growth and further innovation,” said Nasscom Chairman C P Gurnani.
According to the report, the number of tech startups in India is expected to grow by 10-12% to over 4,750 by the end of 2016. With this impetus, India will become home to over 10,500 startups by 2020, employing over 2,10,000 people, reveals the report.