The India Start-up ecosystem has been an unstoppable freight train, having produced 25,000 to 27,000 start-ups in the last decade alone. The tracks firmly laid, through corporate participation in the form of investments, acquisitions, and open innovation programs, government support, and the momentum being fueled by founders and funders alike.
However, with a pervasively brittle global economic scenario, these numbers have lost some of their sheen. Funding of Indian start-ups has been on a decline, creating a pall of fear on the future of Indian start-ups. Public market valuations experienced a correction in 2022 – with technology stocks taking a big hit. Given that public markets are seen as a leading indicator of what will happen in the private market, news about the brutal funding scenario has been loud. However, Indian start-ups have managed to bring in steady investments and 23 of them have emerged as unicorns in 2022 alone. While the concern around dipping funding is understandable, a deeper analysis of market behavior and investment trends shows that the start-up ecosystem is not only equipped to survive the slowdown but also continue with a renewed focus on investors and customers in 2023. Given the strong fundamentals of the consumer demographic, third generation of entrepreneurs and a strong tech talent pool, the ecosystem is poised to weather this storm.
In fact, even amidst a possible recession, nearly 50% of the Indian start-up founders are more worried about hiring and increasing competition from unexpected sources than they are about a market recession.
In this joint report by Zinnov and NASSCOM, our insights are focused on the tech start-up ecosystem, the retrospective and future view of the landscape, and analysis of critical sectors such as Retail, BFSI, EdTech, and more.
We look at what trends shaped the Indian tech start-up ecosystem in 2022 and analyze their causes and implications. We also take a separate look at the sectors critical to India’s holistic development and how they have managed to gain sustained interest.
How are B2B start-ups gaining prominence? What’s making Indian SaaS start-up ventures successful? How does the shift in public market valuations affect India’s ability to produce more unicorns in the near future? We answer all these and more questions in the minds of stakeholders within the ecosystem.