India tech start-ups growth and investment revealed

India tech start-ups eco-system and B2B
India has added over 1,000 tech start-ups in 2017, taking the total number of tech start-ups to 5,000-5,200.

India has a strong B2B tech start-up landscape, focused on verticals like health-tech, fin-tech, and ecommerce/aggregators, amidst intensifying competition from countries like UK and Israel.

While Bengaluru, Delhi/NCR and Mumbai retained their position as the key start-up hubs in India, 20 percent of the start-ups emerged from tier II/III cities.
India tech start-ups eco-system and fundingThese trends were discussed at the launch of the 2017 edition of the NASSCOM-Zinnov report on the ‘Indian Start-up Ecosystem – Traversing the maturity cycle’, released on the sidelines of the of the annual flagship NASSCOM Product Conclave 2017.

Raman Roy, chairman of NASSCOM, and CEO and MD of Quatrro Global Services, said: “India is one of the fastest growing start-up landscape in the world and every major accelerator, investor, angel group, is participating in becoming a part of this growth journey.”
India tech start-ups eco-system and trendsWith 40 percent of startups in the B2B segment, B2B’s share in the overall tech start-up funding is over 30 percent. Corporates are playing a vital role in supporting these with over 50+ collaboration programs, 20+ corporate accelerators (recording a 33 percent growth), and 30-40 active corporate investors, thus increasing their role in the rise of the start-up ecosystem.

Fin-tech start-up base is estimated to be 360 in 2017 indicating at 31 percent growth with over $200 million funding received in H1-2017, recording a growth of 135 percent since H1-2016. Sub-segments like digital payments and lending are maturing, while wealth management and insur-tech emerging as growth areas. Implementation of advanced technology also becoming prominent, with 33 percent of fintech funding towards advanced technologies such as Artificial Intelligence and Analytics.
India tech start-ups eco-system

Witnessing a 28 percent YoY growth in 2017, Health-tech vertical has an estimated total base of 320 start-ups. The vertical also garnered a total funding of $160 million in H1-2017, up by 129 percent since H1-2016.

Areas like health information management, aggregator/ecommerce have continued to mature with growth in areas like anomaly detection, disease monitoring, and tele-health/tele-medicine. As for advanced technologies, 31 percent of health-tech funding went towards Artificial Intelligence, IoT, and Analytics.

With over 60 percent start-ups, the B2C tech start-up segment focused on creating innovative business models and taking the vertical approach, securing close to 70 percent of the overall tech start-up funding in H1 2017. Leading vertical in the B2C segment are travel and hospitality, food-tech, fin-tech, and health-tech.

Growing at 5-year CAGR of 30 percent, advanced tech start-ups focused on creating solutions in segments like Artificial Intelligence, Analytics, Augmented Reality / Virtual reality, Blockchain and Internet of Things, among others. Enterprise and SMB-focused horizontal solutions start-ups, 90 percent of which is SaaS-based, are also witnessing significant inflow of funding.

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