Management consulting firm Praxis Global Alliance and IVCA have conducted a market analysis of India’s startup ecosystem, finding that the innovative players are drawing tens of billions in investments from around the world.
Between 2016 and 2020, more than $60 billion has flown into well over 50,000 Indian tech startups, making India the third largest tech startup hub in the world. Investments are only expanding with time, with 2019 alone accounting for $34 billion in funds flowing in. This year, around $17 billion had already come in between January and May – exceeding investment volumes for all of 2016.
The steadily upward trajectory depicts a vibrant startup ecosystem, with a variety of tech-enabled industries playing a vital role. Up until this year, the online services segment – including aggregators, ecommerce platforms and other services – have dominated the tech startup landscape. Also at the forefront is the business and financial services (BFSI) sector, where technology has become the source of competitive advantage.
In less than a decade, the app has raised more than $2 billion. Notably, the firm has now expanded globally, as have a number of other firms such as food aggregator Zomato, SaaS firm Freshworks and gaming company Dream 11.
The upshot of these efforts is that India is now a bright spot in the global tech landscape. With the country placing among the top five startup hubs across the world, Indian business and tech hubs such as Bengaluru, Delhi and Mumbai feature regularly among the top 10 startup cities in the Asia-Pacific.