More than 1,300 startups added in 2019, more than 8,900 technology startups in India now: Nasscom
New Delhi, November 5 () With the incorporation of more than 1,300 new companies this year so far, India continues to strengthen its position as the third largest new enterprise ecosystem in the world, according to the IT industry agency Nasscom.
The total number of new technology companies in the country has grown to 8,900-9,300 with 1,300 new companies added this year so far. India also witnessed the addition of seven Unicorns this year through August, bringing the total to 24, the third largest number of Unicorns (companies with a valuation of more than USD 1 billion) in a single country in the world.
The new companies have created an estimated 60,000 direct jobs and 1.3-1.8 lakh indirect jobs, Nasscom said in a report.
According to the report, investment in new companies remained stable with a flow of USD 4,400 million between January and September of this year in 450 new companies, an increase of 5 percent year-on-year (year-on-year).
The financing experienced a great increase in the early stages (series A, B as well) with USD 1.6 billion registered and growing at 70 percent year-on-year.
The trend observed during the year was that new companies are driving the approach to the B2B space and almost half of the country's new companies are offering company-centered services, he said.
More than 18 percent of all new companies in India are now taking advantage of deep technology, which means there are more than 1,600 such companies in India. This number constituted only 8 percent of new businesses started in 2014, and has seen 40 percent CAGR (compound annual growth rate) in the past five years, according to the report.
The outlook for new businesses in the country is becoming the epitome of innovation, with companies presenting solutions aimed at solving relevant local problems, said Nasscom President Debjani Ghosh.
However, to simulate innovation, government and businesses must focus on increasing their role as prominent stakeholders that play the role of venture capitalists and provide adequate market access, financing and guidance for the creation of new stages. he added.
Ghosh said India’s startup ecosystem has come a long way to provide a level playing field for innovators to thrive by strengthening capacities and fostering co-creation.
The next wave of growth will be in the union of the convergence of technologies, where different sectors will adopt the digital to redefine their operations, he added.
Nasscom aims to accelerate the startup ecosystem in India significantly by 2025. This implies increasing the number of unicorns to 95-105 potentially and the accumulated valuation to USD 350-390 billion. SR RUJ RUJ