How India is turning in to a Startup Hotspot

10th November 2016 | Decision Tree Consulting
How India is turning in to a Startup Hotspot

India has truly evolved into a hotbed for startups. With $9 billion invested in Indian startups in the year 2015 and the launch of the ‘Startup India’ programme by the government, India, home to many great brains and ideas, is becoming increasingly conducive to turning these ideas to successful businesses through incubation support, government initiatives, mentorship programmes and heightened interest from foreign investors.

The Indian startup ecosystem charted a quick upward trajectory and created several unicorns in the form of Flipkart, Quickr, Ola and Zomato in the past few years. The year 2016, popularly believed to be low on investor activity, actually saw an increase in the number of investments even though the ticket size got smaller. This, again, is not a sign that things are fizzling down, but the sign of a maturing ecosystem – investors are focusing more on numbers and startups on creating operationally viable value chains. Apart from IT, a lot of diversity has taken hold in the sector which can be inferred from the success of Byju’s learning app, one of the pioneers in edutech, and upcoming healthcare portals such as Murgency.

The pressure on entrepreneurs in rising; India, a hotbed of startups is now looking for definitive success. It is clear that every e-commerce venture will not be successful and every tech startup will not receive hordes of funding. The focus is now on ideas that really solve problems, unit economies and user retention tactics.

In order to facilitate this process, the country does lend a helping hand to its entrepreneurs in terms of ease of operation, incubation, acceleration and mentorship support, tax cuts and other such measures. Moving on from existing hotbeds of Delhi, Hyderabad and Bengaluru, Bhubaneswar, Kochi and Ahmedabad are coming up as the new seats for fostering the entrepreneurship spirit. To substantiate in figures, Indian startups raised $14.2 billion in the first quarter of 2016 itself led by mobile tech, food, healthcare, e-retail, and the latest, education sector.

 

 

 

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