More than 1,200 startups were launched in 2018, according to a new report. Moreover eight companies including Udaan, OYO, Freshworks, Zomato, Swiggy, Paytm Mall, Byju’s joined the unicorn club in 2018, the highest addition in a single year, taking the total to 18.
The total funding received by startups in January-September 2018 was $4.3 billion, says the NASSCOM-Zinnov annual report titled ‘Indian Start-up Ecosystem – Approaching Escape Velocity.’
“India’s startup ecosystem is approaching escape velocity,” said Debjani Ghosh, NASSCOM President.
Other interesting finding you need to know about
- India is the third largest start-up ecosystem across the world
- The total number of tech start-ups launched is between 7200-7700 over 2013-2018.
- Post 2017, investment into start-ups have increased by over 100 percent, from $2 billion in 2017 to $4.2 billion in 2018.
- The total number of start-up funding deals especially in the late stages (Series C, D, E, F) grew around 250%, from $847 million in 2017 to $3 billion in 2018.
- Seed stage funding dropped this year by 21% to $151 million in 2018. Early stage funding saw a flat growth of 4% with $1 billion.
- B2C Indian startups expanding globally was a key trend this year, with companies such as Ola, Oyo and Byjus setting business abroad.
- Over 400 B2B startups have expanded globally already.
- Startups in AI reported 120% funding growth in 2018 with over $150 million invested in 2018.
- The base of advanced technology startups grew by 50 percent from last year.
- Bengaluru ranks among the Top Three cities in the world for launching tech startups.
- Global startups like Grab (Singapore) and Go-Jek (Indonesia) are coming to India for talent.
- Indian B2C startups are also expanding globally.
- There are now over 210 incubators and accelerators active in India, with a year-on-year growth rate of 11 percent; 70 percent of them were founded in the last three years.
- Successful Indian entrepreneurs are also becoming angel investors.
- The gender mix of founders has increased to 14 percent women, up from 11 per cent last year, but much more representation is called for.
- Concerns have arisen over the decrease in seed stage funding.
- The government too needs to open its procurement to more product startups.
- More mentorship support is needed in incubators and accelerators.
- Advanced tech startups could do with more assistance in certifications and patent filing, as well as global marketing
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