The Indian startup ecosystem is rapidly evolving driven by an extremely young, diverse and inclusive entrepreneurial landscape.
A decade ago, the condition of Indian startup ecosystem was very pitiable due to poor infrastructure, lack of support from the government and unavailability of funds from investors. Earlier, Indian entrepreneurs were not used to receiving enough attention they needed from other stakeholders to sustain the startup ecosystem. But today, the scenario has changed dramatically and reflects the fact that how corporate giants and the government have come forward to boost the startup ecosystem in India via mentoring, acquisition, funding, acceleration programmes and setting up of incubation centres.
A recently released report by National Association of Software and Services Companies (NASSCOM) has unveiled that India is the fastest growing and the third largest startup ecosystem globally.
The experts are of the view that the growth of the software product industry in recent years has signaled a transformation in India and across the globe. Indian startups today are building global digital solutions to capitalize on this rapid growth. Hyper-growth, capital availability and acquisitions are the leading drivers of the growing startup ecosystem in India. Indian startups today are well positioned to address the entire Asian market opportunity and also expand beyond the US and European region.
Fund flowEasy availability of funding has brought smile on the face of startups and help them encounter major challenges in their growth trajectory. Some significant investments that have taken place in past few days are clearly signifies that the fear of non-availability of fund is on the verge of extinct. Startups in IT, electronics, applications development, education, travel, food, payment and consultancy are increasingly attracting investments from angels, VCs and PEs.
For instance – The burgeoning demand for electronic products in India is expected to attract investment worth about Rs 5,000 crore in the sector over the next 2-3 years. The increasing sales of electronic goods like mobile phones, tablets and cameras has spurred interest from foreign firms, who are now looking to set up a manufacturing base to cater to the world's second most populous market.
AcquisitionsGrowth through acquisitions and partnerships is now considered as one of the important tools by corporate giants to back the startup ecosystem in India.
Recently, a research study by the University at Buffalo's School of Management in the US has revealed that when collaborating with larger companies, startups with a small number of carefully chosen alliances would reap the most benefits. The study found that by aligning with established companies, a young firm gains valuable access to additional resources and markets.
Experts believe that by aligning with established companies, a young firm gains valuable access to additional resources and markets. Established companies can tap into a startup's cutting-edge technologies and innovative potential while young firms acquire knowledge and status from experienced partners.
Future of Indian startupsThe future of Indian startups seems to be thriving. Corporate giants like Microsoft Ventures, Intel Capital have undertaken huge measures to incubate startups, provide them essential resources to build their ventures, mentor them and help them access their target markets.
Intel Capital has recently announced an investment worth $40 million (about Rs 209 crore) in 10 innovative technology companies, including an Indian firm Hungama.com. The firm also organises the Intel Capital Global Summit annually, which bring together over 1,000 Intel Capital-funded entrepreneurs and fortune 2,000 industry executives.
Besides, GenNext Ventures, the venture investment management arm of Reliance Industries Ltd (RIL) has signed a three-year partnership with Microsoft Ventures in India to set up GenNext Innovation Hubs, a pan India initiative to enhance the technology startup ecosystem. As a part of this initiative, Microsoft Ventures will also provide these startups access to software and technology advice.
Incubation centers and acceleration programs initiated by these corporate honchos are likely to push the growth of startups and enable them to maintain edge in the global competition.
Articulating the essence of startups. Steve Jobs, Co-Founder, Chairman and CEO, Apple said “Your work is going to fill a large part of your life, and the only way to be truly satisfied is to do what you believe is great work. And the only way to do great work is to love what you do.”
Guest Author
This is Abhishek Agrawal lives in Delhi. He is a BBA graduate and currently pursuing PGPM from IBS, Gurgaon. He has Expertise in social media marketing and loves everything fun and adventurous.
