Indians Don't Give Up, They Just Startup
As of 30 June 2024, DPIIT has recognised 1,40,803 entities as startups, of those, 115 have become unicorns
'Need is the mother of invention'—a proverb that lasts beyond time limits, perhaps until the existence of humanity. From the discovery of fire to different stages of the industrial revolution, homo sapiens have always found ways to live more easily. The journey has evolved to a single click or tap when it comes to reducing time and effort, maintaining hygiene, and ensuring quick services.
Just a single tap and companies across sectors such as retail, enterprise applications, fintech, transportation and logistics tech, food and agriculture tech, auto tech, travel and hospitality tech, and edtech are at your doorstep to provide services. Emerging sectors such as deep-tech, space-tech, artificial intelligence, and electric vehicles have broadened the Indian innovation landscape. And here come the individuals who step forward with innovative solutions to bridge the gap between needs and available services.
These individuals, with their startups, disrupt the way people do things. Whether it's quick commerce, e-commerce, food delivery, navigation, transportation, baby care, medical care, or payments, innovative service delivery mechanisms have infiltrated the user experience and created opportunities.
Startups And Their Kingdoms
As of 30th June 2024, DPIIT has recognised 1,40,803 entities as startups. This year's economic survey stated that startups have reportedly created over 12.42 lakh direct jobs, making a significant economic impact. Vedant Hamirwasia, Director of ODA Class, an ed-tech company, says, “As startups emerge and flourish within a community, they generate employment opportunities for residents. Consequently, this influx of jobs stimulates spending on goods and services, thereby bolstering government revenue and invigorating the economy.”
Of these startups, 115 have become unicorns, with the latest entrant to the club being Rapido on 29 July 2024. Rapido, mainly a bike taxi aggregator, connects drivers with travelers and competes with global brands such as Uber and Ola. Both Rapido and Ola are Indian startups that have shortened travel time and made it easier. The unavailability of comfortable public transportation forces people to avail themselves of these services, which are competitively priced, often on par with auto rickshaws or normal offline bookings. The rides are traceable, which is a valuable security feature, and they can be booked through a mobile application, reducing not only effort but also time.
The story is even more compelling for the agriculture sector. According to Invest India, as of 31 December 2023, there are nearly 2,800 AgriTech startups recognised by ‘Startup India’. These AgriTech startups are a ray of hope, transforming the way agriculture is traditionally done in India. Startups are revitalising farm gates, whether through precision farming, online marketplaces, data-driven farming solutions, supply chain technology, or machine-based quality management.
Financial inclusivity and transparency have made significant strides with the unified payment interface. Paytm, PhonePe, and G-pay have become the new norm for Indians. This lowers the risk of carrying cash and creates an easier market for authorities to monitor. It also reduces the chances of money laundering. Who can forget the image of Australia's Deputy PM paying for nimbu-pani, a daily experience for Indians?
According to the Ministry of Finance, the total volume of digital payment transactions increased from 2,071 crore in FY 2017-18 to 13,462 crore in FY 2022-23, at a CAGR of 45 per cent. During FY 2023-24, digital payment transactions had reached 11,660 crore by 11 December 2023. These fintech platforms are not only promoting inclusivity but also fostering experience-driven financial literacy.
Coming to education, learning experiences are significantly changing, and with larger Indian markets, startups are establishing roots and generating demand from remote areas. From Byju’s and Unacademy to Physics Wallah, Indian ed-tech companies are tapping into the potential of the Indian market, which is estimated to be around USD 10 billion by the year 2025, according to IBEF.
Sanjeev Agrawal, President of PHDCCI, agrees, "We cannot discount the fact that ed-tech is the future of teaching, as it enables personalized learning, provides flexibility to learn at one's own pace, and supports the learner throughout their journey. The Government has been making significant strides in this direction through its e-Shiksha mission."
MSMEs are also experiencing growth due to the innovative approaches of startups. Two major concerns MSMEs face are funding and marketing. Some startups not only provide platforms for small players to sell their products but also minimize their expenses on website handling and marketing. Zyapaar is one such startup. Kwayga, WOOK, and Vetd are others. With these startups, MSMEs can establish their online presence without incurring the high costs of creating a website. Such offerings, coupled with a multilingual interface and a comprehensive set of features, position MSMEs at the forefront of digital transformation. Many startups are also operating as MSMEs.
Vedant Hamirwasia explains the importance and says, "The emergence of startups catering to specific demands within the Indian market reduces reliance on imported goods and services. This reduction in imports not only curbs the outflow of capital to foreign nations but also amplifies the circulation of capital within the Indian market—a crucial catalyst for sustained economic growth and development."
The AI data sector, worth over USD 2 billion globally in 2022, is projected to rise in value to USD 17 billion by 2030. Karya, a startup, is creating datasets in several Indian languages to train AI models and for research, while generating jobs for hundreds of Indians, especially in rural areas. This AI is also being used in data analytics to filter the vast amounts of data generated through various sources, including satellites and drones.
Several startups are working in drone tech that will benefit not only from a defense perspective but also from applications in farming and resource mapping. With the advent of companies like Asteria, IdeaForge Technology, EndureAir, and others, India is witnessing a surge in applications that enhance both economic and social outcomes. In remote areas, drones are empowering farmers by providing data-driven insights for crop management and reducing manual labor. In urban settings, drones are making operations faster and more reliable, benefiting both the Indian Army and civilians. For example, during the road closure period at Siachen Glacier, drones can deliver essential supplies directly to troops. Drones also play a crucial role in linear asset inspection, ISR missions, infrastructure development, environmental monitoring, and public safety, among other applications.
Rama Krishna, Co-founder and CEO, EndureAir, says that startups have brought significant changes to Indian society, from disaster management to logistical support. He stated, “By deploying drones to transport goods, we have significantly increased payload capabilities for high altitudes, especially in remote areas for the Indian Army. This innovation not only enhances supply chain efficiency but also improves access to essential goods and services for remote regions in various terrains. For instance, EndureAir’s Alakh has been deployed for critical relief operations by the NDRF in the Chamoli district after the cloudburst incident and for the Uttarakhand tunnel rescue operation for damage assessment.”
Food Security To Babycare, Startups Way
The innovation is not limited to traditional issues but also extends to the availability of food and nutrition through technology. According to Loopworm, over 5.5 billion people rely on meat, fish, and eggs for protein, with a 70 per cent increase in demand over 30 years. Limited high-quality sources underscore the need for sustainable alternatives for food security. In the quest to enhance food systems, many startups are addressing the tons of annual food waste. Insect biotechnology innovations have unlocked the potential of organic by-products, crop residues, and more, redefining sustainability and resource utilization. Loopworm is one such startup.
Baby care was previously a major concern for working women. Although companies are mandated to create creche facilities, the problem remains prevalent. The Maternity Benefit Act (MBA) was amended in 2017, making it mandatory for companies with more than 50 employees to offer a creche on the premises. The amendment was intended to encourage more women to join the workforce without sacrificing their jobs for childcare. Although seven years have passed, centralized data is still unavailable. However, startups have emerged to address this issue. While it is difficult to quantify the impact of startups without data, companies like The Little Company, Klay Schools, and Amelio have certainly eased the job for companies in establishing creches.
In short, startups across different sectors have created time-saving, responsive, comfort-driven, and secure tech-oriented experiences that are transforming the platform where Indian consumers previously stood.
Though the scene is not as rosy. A study by the Azim Premji Foundation in 2021 showed that almost 60 per cent of schoolchildren in India cannot access online learning opportunities. This highlights a significant digital divide in the country, with many students lacking access to the internet and digital infrastructure. This digital divide extends beyond education to other digital services.
Digital connectivity and literacy are posing challenges to adopting these new tech solutions. According to National Sample Survey Office (NSSO) data, only 24 per cent of rural Indian households have access to the Internet, compared to a 66 per cent penetration in cities.
Sanjeev Agarwal comments on the situation of Indian startups, focusing on ed-techs, and says, "Several companies are witnessing a decline in their customer base today because of the gap between the aspirations they set in the eyes of parents and what they were able to deliver. Ultimately, the success of ed-techs will depend on companies walking their talk. Ed-tech is a great tool for supplementing the learning of students, and it can prove to be a game changer in a large country like India, where we have 260 million children in schools and about 40 million in higher education."
