India Is The Third Largest Eco-System In The World for Start-Ups: NASSCOM
India Is The Third Largest Eco-System In The World for Start-Ups: NASSCOM
India is currently the most rapidly growing ecosystem in the world for start-ups. According to NASSCOM, it is the third largest start up ecosystem across the globe following the US and the UK. NASSCOM (National Association of Software and Services Companies) reported this in a study. The study entitled India Start Up Report 2014 was recently released by NASSCOM detailing the findings of the study. According to this national body for software and services companies, there will be a rapid growth in the number of product start-ups by the year 2020. Currently, there are around 3,100 startups in the country. According to the findings of the study, this number is expected to increase to 11,500 by 2020 end.
“The Indian start-up ecosystem is rapidly evolving driven by extremely young, diverse and inclusive entrepreneurial landscape. An additional driving force is a four-fold increase in access to capital through VCs, angel investment and seed funding for the Indian entrepreneurs,” Nasscom President R. Chandrashekhar was quoted as saying by the Hindu. The study also indicated that massive rise in start-ups will generate employment for around 250,000 persons by the end of 2020 as against the present 75,000. The study conducted by NASSCOM also found that in the past 5 years, more than 70 venture capitalists or private equity firms have invested over USD 2 billion in India’s start-up ecosystem. Moreover, there were as many as 20 merger and acquisition deals worth USD 1 billion in the past 3 years.
Other Findings of the Study
NASSCOM also found that there were more than 80 business incubators and accelerators providing seed stage support for start-ups. This is one of the most important reasons for the rapid rise in the number of start ups in the nation. Many cities such as Pune, Mumbai, Delhi-NCR and Bangalore account for as much as 90% of the start-up activity. NASSCOM has also unveiled key findings at the 11th edition of the annual flagship Product Conclave in Bangalore recently.
The conclave also discussed issues of common interests and featured 225+ global speakers and as many as 120+ companies. NASSCOM also found there are presently 3100 startups in India and 800+ startups will be set up annually in India. IT is an area where India has been expanding rapidly and the growth of e-commerce solutions has spread headed this movement to unprecedented levels. Indian start ups are coming up with new technology and global digital solutions for addressing the massive opportunities that exist in the Indian e-commerce and online space today.
Mr. R Chandrashekhar, President, NASSCOM, said, “Simultaneously, we need to also work addressing challenges on creating supportive government policies in terms of ease of doing business, tax incentives, participation in government contracts, availability of risk capital etc. NASSCOM will continue to actively engage with stakeholders across to address these challenges.”
Speaking at the sidelines of the conclave, Ravi Gururaj, Chairman, NASSCOM Product Council, was quoted as having said “Scaling up, Design and Growth Hacking are the key priority for startups today. On the innovation front, it is imperative to increase collaboration and partnerships for product companies with platform players, IT Services, Global MNCs and CIOs. The conclave this year will showcase interesting technologies that are evangelising the product space and that are poised to become ubiquitous across both the consumer and industrial fabric of our society.”
