The future of startups in India

Interestingly, new trends have continued to grow in India's startup space. There's a more substantial business facility with a growing economy.

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The first wave of Indian startups can be traced back to the 1980s when the computer industry’s liberalization led to the emergence of the now-iconic software service providers such as TCS and Infosys. The launch of NASSCOM further strengthened the software trade that laid the foundations for India’s startup history in many ways. The liberalization in the 1990s and the dotcom rush of the 2000s helped to stimulate and diversify the startup community. At the same time, the proliferation of the Internet and smartphones over recent years has served.

Interestingly, new trends have continued to grow in India’s startup space. With a growing economy, a rise in the middle class, and better business ease, entrepreneurship has trickled down under the creamy layer and made it big on the startup scene through a range of first-generation companies. Other significant trends are the transfer of the startup boom from the top cities to new ones, the growth of new B2B startups, and the more substantial investment inflow from Asian countries, especially China. 


AI-AR based startups

A broad customer base, many segments of the industry, and expanding digital economy, and the presence of quality technical talent are the actors that have enhanced India’s startup ecosystem. While e-commerce, consumer internets like WhatsCut Pro, health technology, and fintech like Razorpay are still leading, new-age startups powered by fresh ideas demonstrate their presence. Smart mobility is one of these new areas that both entrepreneurs and investors have attracted considerable attention. A big driver of this development has been the National Mission Plan for Electric Mobility (NEMMP), aiming to make India fully electric by 2047.


B2B startups gaining importance

Although the room still dominates the B2C startup sector, which accounts for 70% of the market, a new wave of B2B startups has emerged in recent years. In the B2B areas, including fintech, health-tech, media, etc., half the new startups were recorded in 2017, focusing on artificial intelligence, machine learning, and the Web of the Internet, according to a study. 


Diversifying investment flows

The diversification of funding flows from many sources is another encouraging indicator of a developed startup ecosystem. The early settlers who came into the Indian territories were mostly Western and indigenous. Today we also see an increasing surge of South-East Asian buyers.

Investors focused on China, Japan, and Singapore lead the way. The growing involvement of China in startups in India is the most significant investor tale of this decade. Chinese companies account for 42% of the investment received from Invest in India.


Emerging startups in Tier-II & -III cities

In the way new startups come into being, there is also a noticeable geographical transition. Although the significant fortifications like iQuanta remain in the top cities such as Bangalore, Mumbai, Hyderabad, Chennai, and Delhi-NCR. New startups have been established in smaller cities like Pune, Ahmedabad, Jaipur, Chandigarh, and Kochi, etc. A new wave of startups is also coming into being.

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Aakriti Suri
Aakriti Suri
Aakriti is a MBA student who believes in extremes. She has been using writing to express herself in a better way. She believes that she is not much of a writer but a sharer instead.

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