India Declared as 3rd Highest Start-up Ecosystem by NASSCOM

The start-up ecosystem just got bigger. With the addition of 1,300 start-ups in 2019, India retains its position as the world’s third-largest start-up ecosystem. Also, the 1,300 start-ups put the tally of tech start-ups at 8,900 so far in 2019. 

India also has the third-highest number of unicorns (valuation of USD1 billion) in the world. India added seven unicorns till August 2019 taking the tally to 24. 

According to NASSCOM-Zinnov Start-Up Report 2019, start-ups have created about 60,000 direct jobs and 1.3 to 1.8 lakh indirect jobs. So far, an investment of about USD4.4 million has been made in 450 start-ups from January to September 2019. The investment has grown 5% on a year-on-year basis. 

The start-up Series A and Series B funding saw huge growth with USD1.6 billion investment, a growth of 70%. The investment trend revealed a focus on B2B space and start-ups offering enterprise-focused services.

Also Read: CBDT Sets up a 5-Member ‘Startup Cell’ to Resolve IT Issues

Currently, more than 18% of the start-ups are leveraging deep technology. There are more than 1,600 such companies in India. The number has grown at a compounded rate of 40% over the past five years.

Start-ups are offering innovative solutions to solve locally relevant issues. Hence, the government and corporates need to perform the role of stakeholders and mentors and provide necessary funds and guidance to start-ups. 

The Indian start-up ecosystem has made considerable progress over the last few years. The government has provided a level playing environment for innovators to flourish and strengthen their capabilities. The next wave of growth will aim at the convergence of technologies where start-ups will embrace digital technology.

NASSCOM expects super growth in the start-up ecosystem by 2025. It expects the number of unicorns at 95-105 and the cumulative valuation in the range of USD350-390 billion.

For any clarifications/feedback on the topic, please contact the writer at sweta.dugar@cleartax.in

You May Also Like

TDS impact on life insurance maturity proceeds from 1 September 2019

The Union Budget 2019 has amended the TDS (tax deduction at source)…

Complete salary break-up asked in new ITR-2 return form

The Income Tax Department (ITD) has recently released ITR 2 excel utility…

37th GST Council Meeting likely to be held on September 20

37th GST Council Meeting is likely to be held on 20 September…

CBIC Announces Extension for GSTR-3B Filing for July 2019

GSTN has given information regarding the due date extension on the 20th…