The Indian startup ecosystem is Booming like never before. A total of 1,200 new technology startups were added in 2018 till September, including 8 unicorns(Companies valued more than $1 billion)- the highest number in a calendar year till date- NASSCOM(Trade Association of Indian IT BPM Industry) announced yesterday at its 15th edition of Nasscom Product Conclave 2018 being held in Bengaluru.
It’s a significant improvement as funding was slowed down and only 1,000 new startups were added in 2017, a 29% drop year-on-year and its the first dip in 5 years.
At present in India, there are about 7,700 tech startups, making it the third largest startup ecosystem in the world, the report said. Growth in the number of startups added in the India’s ecosystem doubled to 15% year-on-year in 2018, with the total funding doubled to $4.2 billion.
While the number of incubators and accelerators too grew by 11% year-on-year. Surprisingly, the number of women entrepreneurs stood at 14%, up from 10% and 11% in the previous two years.
“The number of startups being added could be because of more accelerators and incubators coming up to boost the ecosystem,” said Padmaja Ruparel, president(co-founder) at Indian Angel Network.
India’s IT industry apex body also released its report on ‘Indian Startup Ecosystem 2018- Approaching the Escape Velocity’ as a part of the two-day conclave.
Startups in India have been able to create 40,000 new direct jobs over the year, taking the total number of jobs to 1.6-1.7 lakhs, the report added. Besides, another 4-5 lakhs indirect jobs are estimated to be created soon.
“This is the right time for India’s startup ecosystem to become a bigger startup hub in the world, as it is brimming with innovation and new ideas” Debjani Ghosh said.
However, while the number of startups rose, but Seed-Stage funding declined by 21% in 2018, after a 53% drop in 2017. Meanwhile, Early-Stage funding remained at 4% as of previous year, accounting to $1 billion. According to the report, Late-Stage funding is increased by 259% year-on-year to $3 billion in 2018.
But the investors are not worried since early-stage deals have fallen, but the cheque sizes are balloning.
The number of unicorns added in 2018 is the highest ever till date, with 8 out of the total 18 unicorns formed this year alone.
Also, the number of deep-tech startups are growing at 50% rate every year even as the overall startup ecosystem grows at 12% annually, NASSCOM reported.
AI(artificial intelligence) startups in India have grown to 54-58% at a compounded annual rate, with an $150 million being invested in the companies, according to the report.
Blockchain startups have seen enormous growth of 500% in funding.