India’s Startup Boom
This is not debatable anymore, for the matter of fact we are third in the startup ecosystem with over 39,000+ successful ventures which have witnessed a growth of 270% growth in the recent years. Value creation of over $140 billion and to your surprise $50 billion just raised in the last 5 years. We are about of have 45 soonicorns, 5 deacons and 33 unicorns in primarily sectors like consumer tech & e-commerce followed by fintech, logistics and mobility and so on. In the recent years global players are all gone gaga over investments in India’s startups like Flipkart, OLA ,OYO rooms and to name a few. SOFTBANK, QUALCOMM along with Japanese, Chinese and Korean conglomerates are all ready to have a dip in what we call the new age India.
India- An Economy Like never before
Driving factors of economy, conducive for startups
This is what makes India so unique that becoming a $3 trillion isn’t a far cry for us. Let’s have a deep dip on the various factors of this economy and understand it from global perspective.
Enterprise Market- India’s market is one and open to all. All major IT and fintech companies do have the same global compliances unlike some communist nations. Which makes India lucrative and a fair share of competition exists, but IT sector is the backbone of the digitalization era and below figures make India a stand out and one of its type nation.
• 5 Of the top 10 IT companies – Indian
• 3 of the top 5 companies IT companies – Indian
• Only 10% revenue generated from local market- thus least dependent on domestic market
• TCS with market capital of $128 billion, most valued company surpassing IBM with $123 billion.
• Infosys and Cognizant among top 5 again tech giants
The above brings to light the fact why one would invest in India’s IT sector which is a global driving force of its type and an industry type that no other country has.
Quality Talent- IT sector of India has a cumulative workforce of 4 million people, which is second largest in the world only after the US which has a total count of 6.5 million people. But yes we have an edge too of the total people in US 1 million are Indians that comprise the IT sector strength. There is no denying to the fact that in the coming years this is expected to surpass US and most of the IT based startups are related to IT sector whether they are in healthcare or fintech.
Consumption Growth- The second most populated country with 136 billion people has a massive consumption power of its own. This is one such reason that India isn’t much dependent on the global trade but itself is self-sufficient to comply with its trade requirements from the domestic market. Below is the figure to highlight the strength of the masses to support startups
• 560 million people are online
• 1.19 billion active phone connections
• 300 million people active on social media
• 160 Smartphone sales/year
• Data cost has reduced by 90%
• Smartphone costs dips by 40%
Digitalization – India & Global
Now of the globally 7.6 people on the face of this earth, there are 5 billion mobile phone users of which 4.38 billion people use internet services and moreover 3.25 billion are active on various social media platforms which just puts one thing direct that this era is of connectivity and soon the world will be a smaller place for tech companies to reach and expand.
Indian government has just invested $2.3 trillion in the economy on IT policy upgradation to keep up with the global pace and the rapidly evolving global IT market.
Tapping in to this potential India is the only country with the vast digital infrastructure that allows governments, businesses, startups and developers to utilize the digital boon to solve India’s problems on the way of making it a cashless, paperless and presence-less service delivery market. This has been sheerly built by the government in assistance of the private sector; no other country has even been this close other than SINGAPORE.
BYJU’s which is the only unique venture with highest valuation and most profitable of its type. It is a category leader and has shown us a milestone is yet to be achieved.
OLA- with over 1 million drivers OLA has a vast network and a growth of 17% y-o-y, a customer base of 150 million and 500 million vehicles surely isn’t showing any sign of slowing down but are venturing in to micro insurance, green mobility and city buses that are going to be electric.
OYO ROOMS- Believe it or not but this startup has evolved in less than half the time AIRBNB took and today has an inventory of half a million rooms. With an investment of $2 billion there will be no stone left un-turn to make its global presence felt and leadership realized.
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