Four charts on India's thriving startup landscape

14 October 2020 Consultancy.asia 2 min. read

According to a new report by Praxis Global Alliance, stellar growth in India’s startup market has seen the country command a leading position in the scene worldwide. Four charts on the development of India’s startup landscape.

Between 2016-2020 (up to May), over $63 billion of venture capital (seed stage through to late stage) has been invested in Indian technology startups. 2019 saw over $34 billion injected into innovative digital firms, and while Covid-19 has impacted investment appetite of venture capitalists, 2020’s outlook remains relatively bright.

Investments in India by sector 2016-2020

Around 65% of investments in the analysed period have flown to growing startups – promising firms that raised Seed, and Series A through to Series D funding rounds. Around half of the largest ticket sizes were investment of $100 million or more. 

Early stage funding dominates startup investments in India

Not surprisingly, tech-enabled startups have dominated the funding landscape in India, which according to Praxis Global Alliance – an Indian-origin management consulting firm – has turned India into the third largest technology startup hub in the world. In the country’s early-stage segment ($2.5 billion), the largest chuck of funds went to startups specialised in SaaS and AI technologies, followed by online businesses and platforms. 

Tech enabled startups dominate early stage funding

India’s startup ecosystem is concentrated in three major cities: Bangalore, Delhi and Mumbai – all three metropoles rank among the 10 largest startup cities in Asia Pacific. 

Three business hubs dominate tech startup activity in India

According to the market analysis, India is now home to over 50,000+ startups. They are funded privately, and through a network of more than 1,000 active institutional investors, and supported in their growth through a network of more than 330 accelerators and incubators. 

Further reading: India's technology startup scene is gaining global prominence.