Indian tech start-ups to create 1250k direct jobs: Nasscom

India added over 1300+ start-ups in 2019, taking the total number of tech start-ups to 8900-9300 in the last five years, according to a Nasscom report.
job in ITInvestment in start-ups reached $4.4 billion in Jan to Sep 2019 across 450 start-ups, showing 5 percent growth.

Funding rose 70 percent in the early stages (Series A, B) reaching $1.6 billion. Start-ups are driving focus more towards the B2B space and almost half of India’s start-ups are offering enterprise focused services.

Nasscom presented the report on the Indian Tech Start-up Ecosystem – Leading Tech in the 20s, at the side-lines of the of the 16th Anniversary Edition of NASSCOM Product Conclave 2019. The report has been commissioned along with Zinnov.

India also added 7 Unicorns in 2019 till Aug, taking the total tally up to 24, which is the third highest number of Unicorns in a single country in the world. There are also over 50 potential unicorns in the country at present that have received cumulative funding > USD 50 Mn; pool grew 3X over last year with 35 new additions in 2019.

Debjani Ghosh, president of NASSCOM, said, “The start-up landscape is becoming the epitome of innovation, with companies bringing out solutions that are aimed at solving locally relevant issues.”

“To simulate innovation, government and corporates need to focus on increasing their role as prominent stakeholders playing the part of venture capitalists and providing the appropriate market access, funding, and guidance to seed stage start-ups,” Debjani Ghosh said.

Entrepreneurs are focusing on creating solutions using tech such as artificial intelligence, analytics, augmented reality/virtual reality, blockchain and internet of things, among others.

Over 18 percent of all start-ups are now leveraging deep-tech, which means there are over 1600 such companies in India. This number constituted only 8 percent of start-ups incepted in 2014 and has seen a 40 percent CAGR over the past five years.

India has over 335 active incubators and accelerators with a capacity to enable over 5000 start-ups every year. More than 65 percent share of incubators and accelerator programs were added in the last five years, out of which 57 percent are active outside Tier 1 cities.

The start-up ecosystem of India has a cumulative valuation of $95-101 billion and has created 390,000 – 430,000 direct jobs with over 60,000 jobs in 2019 alone.

NASSCOM aims to accelerate this ecosystem significantly by 2025. This entails increasing the number of unicorns to 95-105 potentially and the cumulative valuation to $350-390 billion. The target is to also achieve 1100-1250k direct jobs in the start-up ecosystem by 2025.

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