INDIA HAS emerged as the third largest start- up base, just behind the US and UK, despite the perception that the ecosystem in the country has slowed down in the last year, according to a NASSCOM report released on Wednesday.
Nearly 1,400 new start- ups are expected to come up by the end of 2016, up by 8- 10 per cent from last year, states the `` Indian Startup Ecosystem Maturing – 2016’’ report by Nasscom- ZINNOV. The report further states that the ecosystem is poised to grow by an impressive 2.2 times to reach more than 10,500 start- ups by the year 2020.
The report also finds that Bengaluru, NCR, and Mumbai continue to lead as the major start- up hubs in the country.
In terms of vertical growth, investors are looking at domains like health- tech, fintech, and edu- tech.
With a total funding of approximately USD 4 billion, close to 650 start- ups were funded signifying a healthy growth of the ecosystem, the report said.
According to the report, the number of tech start- ups in India is expected to grow by 10- 12 per cent to over 4,750 by the end of 2016. With this impetus, India will become home to over 10,500 start- ups by 2020, employing over 2,10,000 people, reveals the report.
It added that there is a 40 per cent increase in the number of active incubators and accelerators in 2016 with impetus from government and corporates.
Over 30 new academic incubators have been established under the governments Start- up India Stand- up India initiative this year, and tier- II/ III cities have established 66 per cent of the new incubators, it added. The report also reveals an increased interest from student entrepreneurs this year.
A growth of 25 per cent has been witnessed in 2016 with over 350 start- ups being founded by young students. With regard to investments, the report states that investors are increasingly looking at opportunities in start- ups in areas other than online retailing. Ventures in Fintech, Healthtech, Edutech, data analytics, B2B commerce and artificial intelligence, are seeing interest, said the report.
The report was launched on the side- lines of NASSCOM Product Conclave 2016 in Bengaluru in the presence of NASSCOM chairman C. P. Gurnani, and the organisation’s president R. Chandrashekhar.
Chandrashekhar said, “ Technology startups are creating a new identity for India.