The Indian startup ecosystem has experienced a monumental shift in the past decade, with sectors such as retail, enterprise applications, fintech, and logistics leading the growth story, data intelligence platform Tracxn Technologies said on Wednesday.
Despite the challenges due to persistent funding winter, Indian startups received $8.4 billion in funds from domestic and global investors in 2023. The number stood at $25 billion in 2022.
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111 unicorns created in India so far
The country welcomed its 100th startup in the unicorn (startups valued over $1 billion) club in 2022. So far, 111 unicorns have been created in India, with another 355 startups having promising prospects, the report said. In 2023, 'Incred' and 'Zepto' had joined the ranks of unicorns.
Notably, twenty out of the total unicorns created to date are women-led startups, the report added. "The addition of women-led startups has witnessed growth, with total funding reaching $1.1 billion in 2023 from $0.456B in 2014," it said.
In 2022, India saw rise of 96 soonicorns (potential to reach a valuation of $1 Bn in the near future) and 264 minicorns (valued over $ 1 million)
Bengaluru top startup attraction
Bengaluru maintained its position as the top attraction for startups, scoring a massive $70.4 billion funds between 2014 and 2023, the agency said. The Karnataka capital was followed by Delhi-NCR and Mumbai.
Startups generated 1 million jobs
The report cited the Economic Survey 2023 to say that Indian startups have generated a whopping 1 million jobs in India till last year. "India has solidified its position as a major global centre for innovation and entrepreneurship with a rise in the number of tech companies in India to 122,000 to date, with a peak in 2020, witnessing more than 16,000 new additions," it said.
Emerging sectors are EV, space tech
According to the report, the electronic vehicle (EV) industry has gained investors' confidence to a great extent. The sector received $4.8 billion in funding in the past ten years.
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Deep Tech funding has witnessed a substantial increase, reaching $753.7 million in 2023. The retail sector also displayed resilience despite funding winter, with $2.3 billion invested in 2023, the report said.
The funding for space tech reached $114.9 million in 2022 and $122.2 million in 2023 and the sector is expected to grow further with the Centre's effort to strengthen it.
What has led to India's startup boom
According to the report, factors such as the rise of tech-savvy young population resulting from widespread mobile internet access, the expansion of the middle class, and a favourable regulatory landscape have contributed to the startup boom.
The report also suggested that the long-term prospects for the industry look favourable given the confidence of the global agencies in its economic boom ahead. Notably, the International Monetary Fund has projected India to become the third-largest economy in the world by 2027.