Momentous Rise of the Indian Start-Up Ecosystem Edition 2015
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Start-up India – Momentous Rise of the Indian Start-up Ecosystem Edition 2015 Supported by Google for Entrepreneurs Start-up India – Momentous Rise of the Indian Start-up Ecosystem Edition 2015 Supported by Google for Entrepreneurs Copyright ©2015 International Youth Centre, Teen Murti Marg, Chanakyapuri New Delhi - 110 021, India Phone: 91-11-23010199, Fax: 91-11-23015452 Email: [email protected] Published by NASSCOM Designed & Produced by MKM CREATIVE Email : [email protected] Disclaimer The information contained herein has been obtained from sources believed to be reliable. NASSCOM disclaims all warranties as to the accuracy, completeness or adequacy of such information. NASSCOM shall have no liability for errors, omissions or inadequacies in the information contained herein, or for interpretations thereof. The material in this publication is copyrighted. No part of this report can be reproduced either on paper or electronic media without permission in writing from NASSCOM. request for permission to reproduce any part of the report may be sent to NASSCOM. Usage of Information Forwarding/copy/using in publications without approval from NASSCOM will be considered as infringement of intellectual property rights. This report is solely for the use of NASSCOM. No Part of it may be quoted, circulated or reproduced for distribution outside the client organization without prior written approval from NASSCOM and Zinnov Foreword India has truly become a start-up ‘Nation’. Since 2010, power, healthcare, employment, and education. The Indian technology start-ups landscape has seen a Further, start-ups are empowering SMBs by tremendous growth towards creation of innovative start- enhancing their customer reach and overall ups and India, a home to a new breed of young start- business productivity. ups, has clearly evolved to become the third largest After the terrific success of first edition in base of technology start-ups in the world. Within one 2014, the second edition of NASSCOM-Zinnov year, the number of start-ups in India has grown by 40 report titled “Start-up India – Momentous Rise per cent, and this number is expected to cross 4,200 of the Indian Start-up Ecosystem” is a R Chandrashekhar by the end of 2015. treasure trove of facts and trends on the President, NASSCOM Multiple indicators point to the fact that this ecosystem Indian start-up ecosystem. The report clearly is not only undergoing rapid evolution, but is also identifies the current scale and size of the becoming increasingly attractive. With over 100 per start-up landscape, factors that are impacting cent growth in number of PE/VCs/Angel investors along the growth of the overall ecosystem and steps with a 125 per cent growth in funding over last year, that need to be taken to make the environment one can safely say that the Indian start-up ecosystem more conducive for start-ups. has risen to the next level. The total funding in the We hope this report would be useful to you India based start-ups is estimated to be nearly $5 and we welcome your feedback and comments billion by the end of 2015. Various central and state at [email protected] Pari Natarajan government start-up initiatives are further supporting CEO, Zinnov this progressive phase of start-ups in India. This maturing start-up ecosystem is contributing to the Indian economy in multiple ways. In addition to R Chandrashekhar Pari Natarajan enhancing the lifestyle of citizens, start-ups are President, NASSCOM CEO, Zinnov creating innovative technology solutions that address key problems that India as a country face around Acknowledgement This report has been co-developed by NASSCOM and This study has been greatly enriched by the Zinnov through a comprehensive four month study to valuable insights and detailed inputs provided by understand the Technology Product & Digital Start-ups various investors, angels as well as other key Landscape in India. stakeholders in the ecosystem. We would also like to acknowledge the special contribution made by The preparation of this report has been facilitated by a Google and Microsoft for supporting us on various number of organizations and people who have extended policy related aspects as well as formulating and great help to the NASSCOM and Zinnov team. We wish finalizing the numbers. to sincerely thank all of them for their valuable contributions without which this report would not have Finally, we would like to specially acknowledge the been possible. support extended by our 10K partners - Google for Entrepreneurs, Microsoft Ventures, Kotak Mahindra First, we would like to thank all the ecosystem Bank, IBM and Amazon Web Services to support members and other start-up colleagues, who went out NASSCOM 10,000 Start-ups Program. of their way to provide detailed inputs and perspective of their services/ clients/ markets etc. They offered We would also like to give a special mention to the yeoman service to this project by providing the requisite NASSCOM research team and Zinnov Management data and insights as required by the team. Consulting for their efforts and contribution towards the ideation, execution and completion of this report 6 reasons why Bharat is a ‘Start-up Nation’ ” WHY INDIA? Number of Incubators/ rd Ranking Among Accelerators in India, 3 Global Start-up 110 growth of 40% since Ecosystem 2014 I see Start-ups, technology and innovation as exciting Young and aspiring and effective instruments Total Funding in 2015, ~$5 B 28yrs minds - Average Age of growth of ~125% over 1 for India’s transformation, Start-up Founders 2014 and for creating jobs for our youth. Number of PE/VC firms Top VC/PE Firms in India 156 grown by over 100% 8/10 are Foreign Shri. Narendra Modi, since 2014 Hon'ble Prime Minister-” India Notes: 1Analysis for Bangalore start-ups; Bangalore has the youngest average founders age among the top 20 start-up ecosystems Start-up India – 07 Momentous Rise of the Indian Start-up Ecosystem Innovative minds are accelerating the growth of India’s economy Start-ups Contribution to the Indian Economy Enhancing Citizens Life Style 1 Building innovative 2 solutions Growing Opportunities for Stakeholders 3 Start-up India – 08 Momentous Rise of the Indian Start-up Ecosystem Technology driven start-ups are trying to disrupt every aspect of a consumer’s life... TRADITIONAL Start-up AGE TRADITIONAL Start-up AGE Before moving to Delhi Before moving to Delhi Shifts to new house Shifts to new house l lGoes for on-demand storage l Stores Visits furniture Orders furniture unnecessary items for storing unnecessary items online market to buy sofa in warehouse lPurchases groceries Face language using the mobile app problems with local Arrives at Delhi airport Arrives at Delhi airport vegetable vendor l Explore a nearby gym online and l Struggles to find a lStands in queue to Uses mobile app to book a local good gym wears a fitness cab to the temporary books a cab from band accommodation pre-paid booth Settles in new house Settles in new house First few days in Delhi First few days in Delhi Son struggles to lSon uses mobile app l Reaches Paharganj Books an affordable find auto rickshaw for test preparation and and searches for hotel online when he goes for book auto rickshaw budget hotel tuition lSelects and buys a lGoes to mobile lMakes a recharge Unable to find shop Sari from huge range recharge shop to using mobile app to buy South Indian available online top-up sari for wife l lSearches for houses on lEasily finds a plumber Visits a property Finding a plumber rent online and directly who serves their area broker to get a to get leaking pipeline contacts owner online house on rent is a challenge Start-up India – 09 Momentous Rise of the Indian Start-up Ecosystem ...Leveraging technology to solve problems that have been plaguing the country for decades 1 Power 2 Infrastructure 3 Healthcare 4 Financial Inclusion GDP loss due to Traffic congestion Per 1700 Rural households $68 Bn electricity shortage $10 Bn costs per year 1 doctor persons 120 Mn without bank accounts IoT based solution Intelligent traffic Web-based and to make diesel monitoring system mobile platform Partnership with generators more with real time alerts for patients to banks and tablet efficient connect with doctors banking platform to Big data and Solar/wind energy facilitate banking analytics to tackle IT based healthcare services forecasting and issues such as solution to predict Simpler financing for scheduling; Online infrastructure, physical traits and people through renewable energy healthcare and assess the probability access to credit marketplace education of developing a range scores and other of diseases related information Agricultural Skilling and 5 Productivity 6 Employment 7 Education 48% Of agricultural yield 500 Mn Government’s skilling 23% Gross Enrolment Ratio of Asian countries target till 2022 in higher education Web/mobile based Recruitment platform Affordable technology ICT for farmers to for grey-collared to personalize learning improve their industry to connect & increase access to efficiency and candidates to job high quality education increase produce opportunities SMAC based supply English learning Online platform to chain family of mobile app for connect scholarship software for rapid speakers of regional promoters to growth of agri- Indian languages scholarship seekers businesses directly Start-up India – 10 Momentous Rise of the Indian Start-up Ecosystem Creating significant growth opportunities for every stakeholder within the ecosystem 1 2 3 4 Employment FDI