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Start-up India

Momentous Rise of the


Indian Start-up Ecosystem
Edition 2015

Supported by Google for Entrepreneurs

Start-up India

Momentous Rise of the


Indian Start-up Ecosystem
Edition 2015

Supported by Google for Entrepreneurs

Copyright 2015

International Youth Centre, Teen Murti Marg, Chanakyapuri


New Delhi - 110 021, India
Phone: 91-11-23010199, Fax: 91-11-23015452
Email: research@nasscom.in
Published by
NASSCOM
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to the accuracy, completeness or adequacy of such information. NASSCOM shall have no liability for errors, omissions or
inadequacies in the information contained herein, or for interpretations thereof.
The material in this publication is copyrighted. No part of this report can be reproduced either on paper or electronic media
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client organization without prior written approval from NASSCOM and Zinnov

Foreword

R Chandrashekhar
President, NASSCOM

Pari Natarajan
CEO, Zinnov

India has truly become a start-up Nation. Since 2010,


The Indian technology start-ups landscape has seen a
tremendous growth towards creation of innovative startups and India, a home to a new breed of young startups, has clearly evolved to become the third largest
base of technology start-ups in the world. Within one
year, the number of start-ups in India has grown by 40
per cent, and this number is expected to cross 4,200
by the end of 2015.

power, healthcare, employment, and education.


Further, start-ups are empowering SMBs by
enhancing their customer reach and overall
business productivity.

After the terrific success of first edition in


2014, the second edition of NASSCOM-Zinnov
report titled Start-up India Momentous Rise
of the Indian Start-up Ecosystem is a
treasure trove of facts and trends on the
Multiple indicators point to the fact that this ecosystem Indian start-up ecosystem. The report clearly
is not only undergoing rapid evolution, but is also
identifies the current scale and size of the
becoming increasingly attractive. With over 100 per
start-up landscape, factors that are impacting
cent growth in number of PE/VCs/Angel investors along the growth of the overall ecosystem and steps
with a 125 per cent growth in funding over last year,
that need to be taken to make the environment
one can safely say that the Indian start-up ecosystem
more conducive for start-ups.
has risen to the next level. The total funding in the
We hope this report would be useful to you
India based start-ups is estimated to be nearly $5
and we welcome your feedback and comments
billion by the end of 2015. Various central and state
at research@nasscom.in
government start-up initiatives are further supporting
this progressive phase of start-ups in India.
This maturing start-up ecosystem is contributing to the
Indian economy in multiple ways. In addition to
enhancing the lifestyle of citizens, start-ups are
creating innovative technology solutions that address
key problems that India as a country face around

R Chandrashekhar
President, NASSCOM

Pari Natarajan
CEO, Zinnov

Acknowledgement
This report has been co-developed by NASSCOM and
Zinnov through a comprehensive four month study to
understand the Technology Product & Digital Start-ups
Landscape in India.
The preparation of this report has been facilitated by a
number of organizations and people who have extended
great help to the NASSCOM and Zinnov team. We wish
to sincerely thank all of them for their valuable
contributions without which this report would not have
been possible.
First, we would like to thank all the ecosystem
members and other start-up colleagues, who went out
of their way to provide detailed inputs and perspective
of their services/ clients/ markets etc. They offered
yeoman service to this project by providing the requisite
data and insights as required by the team.

This study has been greatly enriched by the


valuable insights and detailed inputs provided by
various investors, angels as well as other key
stakeholders in the ecosystem. We would also like
to acknowledge the special contribution made by
Google and Microsoft for supporting us on various
policy related aspects as well as formulating and
finalizing the numbers.
Finally, we would like to specially acknowledge the
support extended by our 10K partners - Google for
Entrepreneurs, Microsoft Ventures, Kotak Mahindra
Bank, IBM and Amazon Web Services to support
NASSCOM 10,000 Start-ups Program.
We would also like to give a special mention to the
NASSCOM research team and Zinnov Management
Consulting for their efforts and contribution
towards the ideation, execution and completion of
this report

6 reasons why Bharat is a Start-up Nation

WHY INDIA?

rd

I see Start-ups,
technology and
innovation as exciting
and effective instruments
for Indias transformation,
and for creating jobs for
our youth.

Shri. Narendra Modi,


Hon'ble Prime Minister- India

Ranking Among
Global Start-up
Ecosystem

~$5 B

Total Funding in 2015,


growth of ~125% over
2014

156

Number of PE/VC firms


grown by over 100%
since 2014

110

Number of Incubators/
Accelerators in India,
growth of 40% since
2014

28yrs

Young and aspiring


minds - Average Age of
Start-up Founders1

8/10

Notes: 1Analysis for Bangalore start-ups; Bangalore has the youngest average founders age among the top 20 start-up ecosystems

07

Start-up India
Momentous Rise of the Indian Start-up Ecosystem

Top VC/PE Firms in India


are Foreign

Innovative minds are accelerating the growth of


Indias economy
Start-ups Contribution to the Indian Economy

Enhancing Citizens
Life Style

Building innovative
solutions
Growing Opportunities
for Stakeholders

08

Start-up India
Momentous Rise of the Indian Start-up Ecosystem

Technology driven start-ups are trying to disrupt


every aspect of a consumers life...
TRADITIONAL
Before moving to Delhi
lStores
unnecessary items
in warehouse

Arrives at Delhi airport


lStands in queue to
books a cab from
pre-paid booth

First few days in Delhi


Reaches Paharganj
and searches for
budget hotel
lGoes to mobile
recharge shop to
top-up
lVisits a property
broker to get a
house on rent

09

Start-up AGE
Before moving to Delhi
lGoes for on-demand storage
for storing unnecessary items

Arrives at Delhi airport


lUses mobile app to book a
cab to the temporary
accommodation

First few days in Delhi


lBooks an affordable
hotel online
lMakes a recharge
using mobile app
lSearches for houses on
rent online and directly
contacts owner

Start-up India
Momentous Rise of the Indian Start-up Ecosystem

TRADITIONAL
Shifts to new house
Visits furniture
market to buy sofa
Face language
problems with local
vegetable vendor
Struggles to find a
local good gym

Settles in new house


Son struggles to
find auto rickshaw
when he goes for
tuition
Unable to find shop
to buy South Indian
sari for wife
Finding a plumber
to get leaking pipeline
is a challenge

Start-up AGE
Shifts to new house
lOrders furniture
online
lPurchases groceries
using the mobile app
lExplore a nearby
gym online and
wears a fitness
band

Settles in new house


lSon uses mobile app
for test preparation and
book auto rickshaw
lSelects and buys a
Sari from huge range
available online
lEasily finds a plumber
who serves their area
online

...Leveraging technology to solve problems that have


been plaguing the country for decades
1

Power

$68 Bn

GDP loss due to


electricity shortage

$10 Bn

IoT based solution


to make diesel
generators more
efficient
Solar/wind energy
forecasting and
scheduling; Online
renewable energy
marketplace

48%

10

Infrastructure

Agricultural
Productivity
Of agricultural yield
of Asian countries

Traffic congestion
costs per year

1 doctor

Intelligent traffic
monitoring system
with real time alerts
Big data and
analytics to tackle
issues such as
infrastructure,
healthcare and
education

Skilling and
Employment

500 Mn

Governments skilling
target till 2022

Healthcare
Per 1700
persons

120 Mn

Web-based and
mobile platform
for patients to
connect with doctors
IT based healthcare
solution to predict
physical traits and
assess the probability
of developing a range
of diseases

23%

Education
Gross Enrolment Ratio
in higher education

Web/mobile based
ICT for farmers to
improve their
efficiency and
increase produce

Recruitment platform
for grey-collared
industry to connect
candidates to job
opportunities

Affordable technology
to personalize learning
& increase access to
high quality education

SMAC based supply


chain family of
software for rapid
growth of agribusinesses

English learning
mobile app for
speakers of regional
Indian languages

Online platform to
connect scholarship
promoters to
scholarship seekers
directly

Start-up India
Momentous Rise of the Indian Start-up Ecosystem

Financial
Inclusion
Rural households
without bank
accounts

Partnership with
banks and tablet
banking platform to
facilitate banking
services
Simpler financing for
people through
access to credit
scores and other
related information

Creating significant growth opportunities for every


stakeholder within the ecosystem
1

Employment

FDI Growth

With huge rise in the number


of start-ups in India, employment
opportunities are being generated

Global investors are investing


in the Indian start-up ecosystem
leading to increased FDI

Growth in Employment
Opportunity

Start-ups raising the bars


high at a global canvas - #6
Start-ups in billion dollar club

250K

3
Multiplier Effect
Traditional businesses are being
positively impacted through
increased spending by start-ups
Advertising/Marketing

~$600 Mn

$1.9 Bn Funding from


top deals in 2015

Estimated spend of
eCommerce players
on ads in 2015

Top Deal in 2015


$700 Mn from Tiger Global
& Steadview Capital
$635 Mn from investors
including Alibaba Group,
and SAIF Partners

80-85K
2015

2020P

$500 Mn from investors


including Alibaba Group,
SoftBank & Foxconn

Source: Economic Times, e27 Report, ASSOCHAM Report, Forbes, YourStory Report, Zinnov Analysis
Start-up India
Momentous Rise of the Indian Start-up Ecosystem

SMB Growth
Start-ups are empowering
SMBs in enhancing their reach
and serve customers better
Taxi aggregators :
Increase business for
cab drivers through
easy discoverability
eCommerce firms:
New channel of sales
and enhanced geographic
reach for offline retailers

Logistics/Warehousing

$150 Mn led by
Investment AB Kinnevik &
Tiger Global

11

$950-1,900 Mn
Estimated spend of
eCommerce industry
by 2017-2020 on
infrastructure, logistics
and warehousing

Accommodation start-ups:
Improving business of
budget hotels through
standardization
Hyperlocal eCommerce
firms: Offering new
opportunities to kirana
shops and grocery stores

Deep-dive into the Indian Start-up Ecosystem


Objective
This report analyzes the current scenario and emerging trends across the various dimensions that define
the Indian start-up ecosystem, and gauge India's position as a global start-up hub that is becoming
attractive for investors, start-ups, & corporates

Landscape

Funding

3
Verticals

4
Incubators/
Accelerators

5
Talent

6
Policies

Executive Summary (1/2)

1
l

India ranks 3rd globally with more than


4,200 startups

2.3X growth in number of active


investors, growing digital consumer
base, mobile first population,
improving political environment, and
high interest from global investors are
few of the key drivers

Promising start-up verticals for 2015:


IoT, Analytics, Health-tech and
Hyperlocal eCommerce

Bangalore, NCR and Mumbai continue


to be the top start-up destinations
with nearly 65% of the total Indian
start-ups.

Driven by high share of B2C focused


start-ups, NCR witnesses the
maximum amount of funding

Hyderabad, Chennai, Pune, Jaipur and


Ahmedabad are the major upcoming
start-up locations

14

Landscape
l

Funding is estimated to grow by 125%, from


$2.2 Bn in 2014 to $4.9 Bn in 2015; much
higher as compared to cumulative funding
of ~$3.2 billion over the 2010-14 period
More than 390 start-ups have received
funding as compared to 179 start-ups in
2014. While overall VC/PE funding has
grown by 2.2X over 2014, seed stage VC
funding has grown by an incredible 6.5X.

Total number of active investors have grown


by 2.3X from 220 in 2014 to 490 in 2015

Global investors and corporates are betting


high on India market. Tiger Global, Sequoia
Capital, Softbank, Warburg Princus, and
Alibaba are among the top investors,
participating in deals worth more than $500
mn

Investors have access to more exit


opportunities with more than 65 M&A deals
in 2015, worth close to $800 Mn

Start-up India
Momentous Rise of the Indian Start-up Ecosystem

Funding

Verticals
B2C Segment
l

eCommerce start-ups and aggregators continue to


witness maximum share of the investment

Hyperlocal eCommerce and consumer services


emerge as the top areas witnessing maximum
investment growth

B2B Segment
l

Driven by high growth in niche eCommerce and


hyperlocal eCommerce, start-ups enabling
eCommerce emerge as the top funded category in
the B2B space

Analytics across various domains consumers,


supply chain, recruitment is another growing
segment

Emerging Verticals
l

IoT, Health-tech and Payments are witnessing


positive growth and strong investment

Whitespaces
l

Robotics, 3D printing and Machine learning are few


emerging areas, expected to grow in near future

Executive Summary (2/2)

4
l

Number of incubators/
accelerators grew by 40% from
~80 in 2014 to ~110 in 2015

Nearly 50% of the


incubators/accelerators are setup
outside NCR, Bangalore and
Mumbai, providing an opportunity
to entrepreneurs from non-metro
cities

Colleges and corporates are


increasingly setting up their
incubators/accelerators

The industry sees a new trend


towards vertical focused programs
being setup by few
incubators/accelerators

15

Incubators/
Accelerators
l

The start-ups are creating a new world


of talent

Executives from national and


international conglomerates are joining
top positions at start-up ventures or
starting their own ventures

India is the youngest start-up nation in


the world- 72% of the founders are less
than 35 years old

~50% rise in share of female


entrepreneurs in 2015 over 2014,
driven by 4.5X growth in funding to
women driven start-ups

Start-ups are providing an exhilarating


work culture along with attractive
monetary benefits to lure new and
retain existing talent

Start-up India
Momentous Rise of the Indian Start-up Ecosystem

Talent

Policies
l

Prime minister announced integrated


platform to promote and boost
entrepreneurship in the country

Government policies and initiatives are


aimed towards improving the overall
start-up ecosystem

Industry expects more support and


focus on improving ease of doing
business and facilitating exit
opportunities

SECTION 1
Start-up LANDSCAPE

1
Landscape

Funding

Verticals

Incubators/
Accelerators

Talent

6
Policies

The country has moved up to 3rd position and has the


fastest growing base of start-ups worldwide
United
States
Technology
Driven Product
Start-ups by
Key Countries

United
Kingdom

India

Israel

China

Quick
Facts
47,00048,000

4,5005,000

4,2004,400

3,9004,1002

Strong Growth
Indicators - India

3,3003,500

Technology Start-ups by Year of Inception

NASSCOM launches
the 10,000 Start-ups
Program

~2,100

~156

Active VCs/PEs in 2015

~292

Active Angels in 2015

~110

Incubators/ Accelerators

75%

~1,200
70%

~700

2013

2015

2020P

Source: Zinnov Research & Analysis, The Next Web, LeWeb Blog
Notes: 1Active Angel (or VC/PEs) is defined as an investor who has made at least one investment in 2015. Presented numbers are for Jan-Sep 2015 period.
Number of tech start-ups in Israel have been estimated from the total number of start-ups in 2015 using % of tech start-ups in 2014

18

Start-up India
Momentous Rise of the Indian Start-up Ecosystem

With rapid growth in the industry ecosystem across


all dimensions
Total Start-ups to grow
multifold

4,200 - 4,400

12,000+

2015

2020P

rd

3 Largest

Share of Women Founders1

start-up location globally

~91%
Male

80-85K

More than 65% of

Employed in Start-ups1

the start-ups are located


in NCR, Mumbai and
Bangalore

$ 95 Mn

3-4
Start-ups are born
each day

# of Incubators/
Accelerators

Average valuation
is on rise3

Investments in Start-ups2

Female

~110

$2.5-2.7 Mn

~$4.9 Bn

~9%

65+

Bangalore ranked 15
among Global Start-up
Ecosystem

# of M&A Deals
Represents the respective
number has witnessed
growth since 2014

Worth of funding
weekly
Source: Zinnov Research & Analysis, Deal Curry, AngelList, Crunchbase; Compass report on The Global Start-up Ecosystem Ranking 2015
Notes: 1Based on a sample set of 600 start-ups formed over 2010-15 period. 2Estimated based on average deal size and number of deals(extrapolated based on number of deals in first
three quarters). Deals worth 4.1 Bn already closed by end of Q3-2015. 3To calculate the average deal sizes of more than 50 millions were not considered.

19

Start-up India
Momentous Rise of the Indian Start-up Ecosystem

Inspiration from successful start-ups, huge market


opportunity and an enabling support system have
been the key drivers
Key Drivers

Inspiration from
Role Models

High Growth of Investor


Ecosystem

Successful start-ups act as


inspiration for aspiring
entrepreneurs

2.3x

Unicorns

Growth in # of investors
since 2014

Tech driven large


Consumer and
SMB Market

140 Mn
300 Mn
Internet Users

Industry Leaders

Growth in # of start-ups
funded since 2014

eCommerce
Industry1

10 Mn
Tech Ready
SMBs1

Source: Zinnov Research & Analysis, Press Articles


Notes: 12014 Number

20

Start-up India
Momentous Rise of the Indian Start-up Ecosystem

Smartphone
Users1

Entrepreneurial
Environment
Government Policies
Promoting bank financing
for start-ups through Startup India, Standup India

213 Mn
$ 16 Bn

2.2x

Digital Nation with


Mobile-First Consumer

Mobile Internet
Users1

41%
eCommerce
sales through
mobile1

Growing Platform
Large number of events,
awards, coverage platforms
help in recognition,
networking
Incubators/ Accelerators
Large base of ~110 helps
in mentoring and raising
funds

...Gained further momentum in 2015 with growing


interest from corporates and other stakeholders
1

Viable Investment
Support

Sharing and building


upon success

Increasing number of high net-worth individuals consider start-up as a viable investment option over
other traditional investments such as gold, stock and real estate

Number of active angel investors have grown from 115 in 2014 to 292 in 2015

Successful Indian entrepreneurs giving it back to the eco-system and investing time and
money on young start-ups

Business tycoons such as Ratan Tata, Azim Premji have already started investing in
start-ups. Over 10 investments in Start-ups made by Mr. Tata till date

Media Support

Interest from
India-based
Conglomerates

Global Ecosystem
Accelerated

Azim Premji

Organizations dedicated to start-ups are covering all aspects extensively and are seeing
massive interest from the audience

Leading dailies are also focusing on start-ups. Excited freelancers building-up

ET1 has dedicated a full page for covering start-ups Start-ups & Tech. Alone has
published >170 articles in Sep 2015

Enterprises are realizing the disruptive potential of start-ups and are thus, partnering/ investing
in them

Wipro has setup a $100 Mn VC fund to invest in start-ups in data, open source and industrial
internet space. While, IBM is partnering with 100 Indian big data and IoT start-ups

Global companies and investors such as Alibaba Group, Soft Bank, Sequoia and Foxconn are
starting to invest in the Indian start-up ecosystem

Commitments to invest in India in the next few years have been made along with creating India
specific funds

Source: Business Standard, Economic Times, Zinnov Analysis


Notes: 1Economic Times

21

Ratan Tata

Start-up India
Momentous Rise of the Indian Start-up Ecosystem

Majority of the 1200 new start-ups are B2C, primarily


present in 3 segments eCommerce, consumer services
and aggregators
eCommerce
13-15%

eCommerce is still
witnessing strong new
start-up activity in
niche areas

Aggregators

Enterprise Software

10-12%

9-11%

8-10%

Start-ups offering a
wide variety of
consumer services
are cropping up

Vertical remains a
strong focus for new
start-ups with
aggregation in unique
sub-segments

New software
companies are trying
to differentiate with
unique product/
service offerings

Hyperlocal eCommerce

Health-Tech

Edu-Tech

Analytics

8-10%

6-8%

6-8%

5-7%

Start-ups are offering


various hyperlocal
services in metro and
tier-1 cities

Traditional healthcare
facilities and services
are being disrupted by
health-tech start-ups

Edu-tech start-ups are


leveraging technology
in new ways to
enhance leaning for
students

Start-ups are applying


analytics to benefit
firms in various
functions

eCommerce Enablers
5-7%
Driven by rise of the
eCommerce segment
firms are offering
specialized services
to support operations

22

Consumer Services

Social Platforms
5-7%

New social start-ups


are focusing on
bringing together
people with specific
interests

Start-up India
Momentous Rise of the Indian Start-up Ecosystem

Enterprise Software
16-18%

Other emerging areas


are IoT, Payments, Adtech, Media-tech, Fintech , Recruitment, etc.

x%

Share of vertical in
total # of new startups in 2015

66% of start-ups are concentrated in the top 3 cities


of Bangalore, NCR and Mumbai
Distribution of Indian Startups (4200+)
1. Bangalore

Focus areas of Startups


eCommerce
Hyperlocal
Consumer
eCommerce
Services
Analytics

2. NCR
3. Mumbai

NCR: 23%

Top Cities

Major Startup Focused Indian Cities

Bangalore: 26%

Focus areas of Startups

eCommerce
eCommerce
Enablers

Emerging Cities

Aggregators
Hyperlocal
eCommerce

1. Chennai

Mumbai:17%

2. Pune

Focus areas of Startups

Aggregators
eCommerce

3. Hyderabad

Hyperlocal
eCommerce

4. Ahmedabad

Hyderabad: 8%

5. Jaipur

Focus areas of Startups

Consumer
Services

Payments
IoT

Chennai: 6%

Focus areas of Startups

Enterprise
Software

Top Cities

Analytics

Emerging Cities

Pune: 6%

City Index based on:


(a) Number of startups
(b) Number of investor deals
(c) Amount of funding
(d) Enabling ecosystem (such as proximity of investors,
incubators, accelerators and coworking spaces)

Focus areas of Startups

Hyperlocal
eCommerce

eCommerce

Bangalore is evolving fast to become a global startup hub, closely


followed by NCR and Mumbai

Source: Zinnov Analysis, Zinnov Startup Database

23

Index Score
(0-5)

Start-up India
Momentous Rise of the Indian Start-up Ecosystem

Top Cities
>4.8

4.5-4.8

Emerging Cities
4-4.5

0.75-1.5

0.5-0.75

<0. 5

Emerging cities are targeting start-ups by focusing on


initiatives that strengthen their value propositions
CHENNAI

PUNE

Key Trends

Key Trends

HYDERABAD
Key Trends

Good Environment
Talent Availability
Technical talent due Cost effective real
to presence of large
estate
number of technical Good connectivity/
universities
infrastructure
However, sales/
Pleasant weather
marketing expertise
is still lacking

Forming incubation center T-Hub in


collaboration with ISB, NALSAR and IIIT
Hyderabad to accommodate 1,500
companies
Provide technical, legal, IP support
Announced $100 Million venture capital
fund

Key Start-ups

Key Start-ups

Key Start-ups

Key Investors

Key Investors

Key Investors

Emerging as the SaaS Hub


Has large base of of B2B SaaS product
companies triggered by the success of
ZOHO supported by right set of domain
talent

OTHER
CITIES

JAIPUR

Enabling Environment: Factors such as lower costs due to lower rentals and lower costs of living,
good talent pool with low attrition and proximity to Delhi NCR

AHMEDABAD

Ecosystem: Ahmedabad has incubators, mentors and a well-entrenched ecosystem for start-ups.
Also, IIM-A has been fertile ground for entrepreneurship

KOCHI

Policy Support: Kerala Start-up Mission to promote start-ups in the state. Kochis start-up village is
planned to incubate 1,000 product start-ups. Also, NASSCOM recently setup its start-up warehouse
as part of its 10,000 start-ups initiative

Source: Your Story, Kerala Government, Business Standard

24

Government Support

Start-up India
Momentous Rise of the Indian Start-up Ecosystem

SECTION 2
FUNDING TRENDS

1
Landscape

2
Funding

Verticals

Incubators/
Accelerators

Talent

Policies

Funding is estimated to grow by 125%, from $2.2 Bn


in 2014 to $4.9 Bn in 2015
1

~$6.5 Bn +
~$4.9 Bn1

$2.2 Bn

$700 Mn

Total Funding
in Start-ups

5%

12

Total Investments
(USD Mn)

Number of Deals3

2.

3X

12

458 2.3X

400

$60 Mn

2.

2.2X

46
156

2.0X

4,705
224

179

436

2.0X

194
20152

$110 Mn

Active Investors

5%

1X

$100 Mn

2015 (E)

Start-ups Funded

2
2.

$150 Mn

$120 Mn

2014

2014

Total funding would be much higher if


start-ups incorporated before 2010
are considered, such as:

20144

20152,4

Growth from
2014 to 2015

25
75

2,110

4X

48

196

115

2014

2015E

2014

Others (Corporates,
Incubators, Accelerators)

Angel Investors

292

2.5X

20152

PEs/ VCs

Notes: 1.Estimated based on average deal size and number of deals(extrapolated based on number of deals in first three quarters). Deals worth 4.1Bn already closed by end of Q3-2015.
Number includes funding in Snapdeal, Olacabs, Paytm also. 2.Presented numbers are for Jan-Sep 2015 period. 3. Defined as a transaction between start-up and investor. A single round
of funding could be counted as multiple deals as there could be multiple investors investing. 4.In addition, 17 deals in 2014 and 59 deals in 2015 did not have investor details. 5.Defined as
an investor who has made at least one investment in that year

26

Start-up India
Momentous Rise of the Indian Start-up Ecosystem

NCR, Bangalore and Mumbai account for over 93% of the


total investments
Total Start-up Investments by Location

Bangalore represents a fair mix of


investment across B2B and B2C as
compared to other top locations

2015

$ 2.3 Bn (E)
83%

of the investments towards


B2C start-ups

NCR

Paytm - $680 Mn, Snapdeal - $ 500 Mn


Ecom Express - $133 Mn and Oyo Rooms - $100 Mn

Emerging Start-up
Cities
2015

Chennai
$ 100-110 Mn

Mumbai

Pune
$ 80-90 Mn

$ 1.1 Bn (E)
95%

Contributing over $200Mn funding by 2015

of the investments towards


B2C start-ups

Bangalore

2015

Ola Cabs - $ 625 Mn, Freecharge - $80 Mn

$ 1.2 Bn (E)
70%
Start-ups deals in 2015 with more than $50 million

of the investments towards


B2C start-ups

Antuit - $56 Mn, Big Basket - $50 Mn,


Homelane - $50 Mn, Little - $50 Mn, Urban
Ladder - $50 Mn, Zovi - $50 Mn

Notes: 1Additional estimated investment for Q4-2015 has been split across the three geographies based on the investment in the respective cities during the first three quarters. Deals
above $100Mn were not included while splitting the investment across these cities.

27

Start-up India
Momentous Rise of the Indian Start-up Ecosystem

Global investors and corporates are betting high on


India market
Top VC/PE Firms (20151)

Key Trends

INVESTMENTS2

COMPANY

KEY VERTICALS

I
eCommerce and Aggregators are key verticals
focus across all the investors

Tiger Global

Shopclues
$100Mn

GOR
$45 Mn

ZO Rooms
$24 Mn

IoT; Mediatech; Edutech;


Gaming

Sequoia Capital

HomeLane
$52 Mn

Oyo Rooms
$100 Mn

Grofers
$23 Mn

Consumer Services;
Healthtech; Gaming

Warburg Pincus

Ecom Express
$133 Mn

Top Overseas Corporate Investors (20151)


INVESTMENTS2

COMPANY

KEY VERTICALS

Alibaba

Paytm
$635 Mn

Snapdeal
$500 Mn

eCommerce, Payments

Softbank

Oyo Rooms
$25 Mn

Snapdeal
$500 Mn

eCommerce; Aggregators

Foxconn Technology
Group

Snapdeal
$500 Mn

eCommerce

Top Indian Last Gen Start-ups (20151)


INVESTMENTS2

COMPANY
1

Paytm

Little
$50 Mn

Flipkart

NestAway
$12 Mn

Ola Cabs

II

eCommerce Enablers

KEY VERTICALS

Zovi
$50 Mn

eCommerce; Consumer
Services

Zinka
NA

Aggregators

Mswipe Technologies
NA

Payment Solutions

High Interest from Foreign Funds


Leading VC/PE firms
are foreign-based

8/10

III
Overseas corporates are aggressively looking to
invest in Indian start-ups
Plans to invest over $1 Bn in Indian
start-ups over next 2 years
Plans to invest $100 Million in
India in next 3 years

IV
Start-up founders are also investing in Indian start-ups
Invested in 5 start-ups namely, Belong.co,
Bewakoof, Routofy, Shadowfax Technologies,
UrbanClap and Zenatix
Kunal Bahl, (Founder, Snapdeal)

Notes: 1Till date, 2Investments mention the full value of the deal, the complete amount may not come from the respective VC/PE firm listed, but from multiple investors.

28

Start-up India
Momentous Rise of the Indian Start-up Ecosystem

B2C segment dominates, led by eCommerce &


aggregators; B2B funding evolves as eCommerce enablers
and analytics emerges as focus areas
Focus Areas of
Start-ups

Investment Split by
Customer Segment
(2015)

Investment Growth
(2014-15)
Share of B2C Focused Investments

2014

2015

26%

B2C

Aggregators

Aggregators

Consumer
Services

3%

$4.9 Bn

Hyperlocal
eCommerce

Hyperlocal
eCommerce

Total Investment

33%
8%
7%

Share of B2B Focused Investments

2014
17%

36%
eCommerce

eCommerce

95%

83%

60%

250%

30%
eCommerce
Enablers

2015

48%
eCommerce
Enablers

B2B
28%
Enterprise
Software

Source: Zinnov Product/Digital Start-up Database


Notes: 1Share of investment for the respective year and segment

29

Start-up India
Momentous Rise of the Indian Start-up Ecosystem

18%
Analytics

While overall PE/VC funding has grown by 2.2X over 2014,


seed stage VC funding has grown by an incredible 6.5X
Year on Year VC/PE Investments
by Stage of Funding
Average Deal Size

$4,705 Mn

Illustrations of Start-up by Stage of Funding Received


Across Years
Seed Stage

Early Stage

$2,110 Mn

$36 Mn
$45 Mn

$298 Mn

$5.8 Mn

$1.6 Mn

$90 Mn

$2 Mn

$0.2 Mn

$15 Mn

$0.7 Mn

2014

30

$664 Mn

$3.5 Mn

$0.5 Mn

$0.4 Mn

$2.5 Mn

$6 Mn

$16 Mn

$50 Mn

$133 Mn

$15 Mn

$12 Mn

$100 Mn

$50 Mn

$186 Mn
$99 Mn

2015

Seed Stage (<=$1 Mn)

Early Stage ($1-5 Mn)

Growth Stage ($5-20 Mn)

Expansion Stage (>$20 Mn)

Start-up India
Momentous Rise of the Indian Start-up Ecosystem

$0.5 Mn

$10 Mn

$3,756 Mn

$1,707 Mn

$5.4 Mn

$0.5 Mn

Growth Stage

$2 Mn

Expansion Stage

150+ VC/PEs investing across B2B & B2C Segments; angel


investors are more diverse in their vertical selection
Share of VC/PE Investment
by Start-up Type (2015)

Share of B2C Focused VC/PE Investments


(2015)

Share of B2B Focused VC/PE Investments


(2015)

VC/PE

38%

$4,705 Mn

B2B: 17%

B2C: 83%

Angel
Investor

eCommerce
Enablers

7%

8%

Share of Angel Investment by


Start-up Type (2015)

Robotics

23%

B2B: 32%

16%

Source: Zinnov Product/Digital Start-up Database

31

Payments

Start-up India
Momentous Rise of the Indian Start-up Ecosystem

9%
Enterprise
Software

Edu-Tech

12%
Consumer Services

11%

B2C: 68%

Total Investment
(2015)

Analytics

Share of Angel Investments (2015)

Aggregators

$196 Mn

17%

9%

Consumer
Services

Hyperlocal
eCommerce

Total Investment
(2015)

46%

35%

Aggregators

eCommerce

8%
eCommerce

While valuations have consistently been on the rise, many


Indian start-ups have shown growth without external funding
Valuation

M&A

Average Start-up
Valuation

Valuation

2014

2015

$ 4.2 Mn

$ 4.4 Mn

Exit

Indian Start-ups gaining access to customers


even without external funding

United States

India

$ 2.3 Mn

$ 2.7 Mn

Cross-browser testing
product
520K+ registered users
25K+ paying customers

Israel

Some other
major
countries
with high
average
valuation

Mumbai
2011

$ 3.5 Mn
United Kingdom

$ 2.9 Mn

Cloud based supply chain


management
$250K revenue1
1000% annual growth1

Bangalore
2010

Source: Zinnov Product/Digital Start-up Database, Angellist


Notes: Valuation figures include non-tech statups, Does not include valuations over $10,000,000 or under $10,000

32

Start-up India
Momentous Rise of the Indian Start-up Ecosystem

Mobile-first e-signature solution


~3Mn app downloads
Among Top 10 grossing apps

Indian start-ups on acquisition spree - Over 65 M&As


successfully executed in 2015
Valuation

M&A

M&A

M&A

Exit

M&A Trends

65+ M&A deals


in 2015
Accelerate Consolidation

Diversify Business Offerings

Expand Customer Base

Acquire Technical Expertise

M&A by Region of Acquirer Companies


~90%

India

~10%

Rest of the World

Source: Deal Curry, News Articles

33

Start-up India
Momentous Rise of the Indian Start-up Ecosystem

Start-ups are being acquired for access to new customers,


maintaining leadership, and technical acumen
Indian Start-ups acquiring other Indian Start-ups

Indian Corporates acquiring Indian Start-ups

Acquiring Company

Acquired Company

Acquired Company

2015

2015

Acquiring Company

Corporates are acquiring start-ups to maintain their


market leadership

Start-ups are acquiring other start-ups to increase


their customer base and gain market share

M&A
Overseas Corporates acquiring Indian Start-ups

Overseas corporates acquiring Indian start-ups in


order to enhance their technical expertise

Source: Deal Curry, News Articles, Venture Intelligence

34

Indian Start-ups acquiring Overseas Start-ups

Acquired Company

Start-up India
Momentous Rise of the Indian Start-up Ecosystem

Acquiring Company

2015

2015

Acquiring Company

Acquired Company

Croak.it!
Indian start-ups acquiring overseas start-ups for
technology gains to compete with ecosystem

2014-15 has seen some large exits instilling positivity


and confidence with the investor community

Valuation

M&A

Exit

Channels for Exit


Exit

No.of Deals :
Deal Value :

USD400 Mn

10
NA

No.of Deals :
Deal Value :

21
$235 Mn

No.of Deals :
Deal Value :

29
$418 Mn

No.of Deals :
Deal Value :

19
$68 Mn

$400 M

USD 300 Mn

USD 200 Mn

$200 M

USD 100 Mn
$40 Mn
$5.5 M

$10 M

$20 Mn

USD 0 Mn
Not Disclosed
Q4- 2014

Q1-2015

Source: Zinnov Product/Digital Start-up Database, Deal Curry, News Articles.

35

Start-up India
Momentous Rise of the Indian Start-up Ecosystem

Q2-2015

Q3-2015

SECTION 3
EVOLVING VERTICALS

Landscape

Funding

3
Verticals

Incubators/
Accelerators

Talent

Policies

Diverse start-up landscape Healthy mix of mature,


traditional and emerging areas focused companies

2,200

eCommerce (Traditional)3

Large players within each


segment have already emerged
Top players within each
segment are backed by large
VC/PE funds
Limited scope for disruptions by
new entrants

1,500
600

Total Funding2 (in $ Mn)

400

Aggregators
4

eCommerce (Niche)

Segments witnessing strong investor


traction
Large players are yet to emerge
Expected to witness more consolidation

GROWING
VERTICALS
eCommerce
Enablers

MATURE
VERTICALS
Hyperlocal
eCommerce

300
Enterprise
Software

200

Consumer
Services

Analytics
Payments
IoT

Health -Tech

100

EMERGING
VERTICALS

No established large player


in the segment
Significant opportunity for
disruptions by new entrants

0
2010

2011

2012

2013

Vertical Maturity1

Notes: 1. Based on the average year of inception of the companies in the segment 2. Funding for year 2014 and 2015 3. Includes start-ups which are involved in the sale of goods
of all segments4. Includes start-ups which are involved in the sale of goods of a particular segment only such as kids, fashion or healthcare

38

Start-up India
Momentous Rise of the Indian Start-up Ecosystem

eCommerce: Driving a major share of investment in the


country

M
Average Age of Sub-Segment v/s
Total Funding of Sub-Segment

$ 31 Mn
Others

eCommerce

$ 47 Mn
Kids

$ 88 Mn
Home Decor

Across
1,500

Mature Start-ups

$ 211 Mn
Fashion

820+

Key Investments (2015)


$ 500 Mn

# of start-ups1

$ 100 Mn
$50 Mn

$ 1.4 Bn

Top Investors (2015)

Funding

Fashion
300

200

Emerging Start-ups
Kids
100

0
2010

2015E

Notes: 1. Estimated based on a sample of 600 companies formed over 2010-2015 period; 2. Funding for the year 2014 and 2015

39

Start-up India
Momentous Rise of the Indian Start-up Ecosystem

Home
Decor

$ 645 Mn
Traditional

Total Funding (in $ Mn)

Quick Facts

2011

2012

Average Year of Inception

2013

Aggregators: Established in transport, travel and


real-estate sub-segments

M
Funding by Sub-Segment (2015)

Aggregators

Average Age of Sub-Segment v/s


Total Funding of Sub-Segment

$ 16 Mn
Deal Search

$ 20 Mn
Fashion

1,000

Transport

$ 32 Mn
Others
$ 632 Mn
Transport

Travel
Real Estate

240

$ 207 Mn
$ 27 Mn
Travel
Real Estate

Total Funding (in $ Mn)

Quick Facts

480+
# of start-ups1

Key Investments (2015)


$ 625 Mn
$ 32 Mn

$ 1.1 Bn

Top Investors (2015)

Funding

$ 125 Mn

160

Fashion

80

2011

Notes: 1. Estimated based on a sample of 600 companies formed over 2010-2015 period, 2. Funding for the year 2014 and 2015

Start-up India
Momentous Rise of the Indian Start-up Ecosystem

Emerging Start-ups
Insurance Policies

2015E

40

Mature Start-ups

Deal
Search &
Cash back

2012

Average Year of Inception

2013

eCommerce Enablers: Driven by high growth in niche


and hyperlocal segments

G
Funding by Sub-Segment (2015)

Logistics

300

$ 40 Mn
On- demand
Inventory
$ 234 Mn
Logistics

On - demand
Inventory

Mature Start-ups

60
Emerging Start-ups

Quick Facts

$ 1 Mn
Inventory
Management

Total Funding (in $ Mn)

eCommerce
Enablers

$ 24 Mn
Hyperlocal
Logistics

Average Age of Sub-Segment v/s


Total Funding of Sub-Segment

50+
# of

Key Investments (2015)

start-ups1

$ 133 Mn
$ 85 Mn
$ 40 Mn

$ 360Mn

Hyperlocal
Logistics
App/Web
Development

30

Top Investors (2015)

Funding

2011

2015E

Notes: 1. Estimated based on a sample of 600 companies formed over 2010-2015 period; 2. Funding for the year 2014 and 2015

41

Inventory
Management

Start-up India
Momentous Rise of the Indian Start-up Ecosystem

2012

2013

Average Year of Inception

2014

Consumer Services: Its huge size and unorganized


nature sets it up as a key disruption area

G
Funding by Sub-Segment (2015)

Average Age of Sub-Segment v/s


Total Funding of Sub-Segment

$ 8 Mn
Others

Mature Start-ups
Hyperlocal
Deals

$ 33 Mn
Home Services

100+
# of start-ups1

$ 230 Mn

Key Investments (2015)


$ 50 Mn

$ 50 Mn

$ 11.5 Mn

$ 16 Mn

Home Service
40

Car Rental

Customer
Support
20

Top Investors (2015)

Funding

0
2011

2015E

Notes: 1. Estimated based on a sample of 600 companies formed over 2010-2015 period; 2. Funding for the year 2014 and 2015

42

Interior
Design

60

$ 56 Mn
Hyperlocal Deals

Quick Facts

Emerging Start-ups
80

$ 59 Mn
Interior Design

Total Funding (in $ Mn)

Consumer
Services

$ 16 Mn
Customer
Support $ 24 Mn
Car Rental

Start-up India
Momentous Rise of the Indian Start-up Ecosystem

2012

2013

Average Year of Inception

2014

Hyperlocal eCommerce: Diverse demographics and


inadequate infrastructure are catalyzing transformation in
this segment

G
Funding by Sub-Segment (2015)

$ 6 Mn
Healthcare

200

$ 56 Mn
Food
$ 137 Mn
Grocery

Grocery

150

Matured Start-ups

Quick Facts

Total Funding (in $ Mn)

Hyperlocal
eCommerce

Average Age of Sub-Segment v/s


Total Funding of Sub-Segment

50+

Key Investments (2015)

# of start-ups1

$ 50 Mn
$ 35 Mn
$ 20 Mn

$ 250 Mn

Emerging Start-ups

100

Food
50

Healthcare

Top Investors (2015)

Funding

0
2011

2015E

Notes: 1. Estimated based on a sample of 600 companies formed over 2010-2015 period5; 2. Funding for the year 2014 and 2015

43

Start-up India
Momentous Rise of the Indian Start-up Ecosystem

2012

2013

Average Year of Inception

2014

Analytics: Strong use cases for analytics across different


functions are fueling growth of analytics start-ups

G
Funding by Sub-Segment (2015)

$ 26 Mn
Enterprise Business
Intelligence

$ 5 Mn
Human Capital
Analytics
$ 57 Mn
Infrastructure
& Supply
Chain
Analytics

Mature Start-ups

75

Infrastructure & Supply


Chain Analytics

50
Enterprise Business
Intelligence

Quick Facts

$ 17 Mn
Marketing Analytics

Total Funding (in $ Mn)

Analytics

Average Age of Sub-Segment v/s


Total Funding of Sub-Segment

~400

Key Investments (2015)

# of start-ups1

$ 180 Mn

$ 56 Mn

$ 15 Mn

$ 8 Mn

$ 5 Mn

$ 1 Mn

$ 1 Mn

Marketing
Analytics

25

Human Capital
Analytics

Top Investors (2015)

Funding

2015E

Notes: 1. Estimated based on a sample of 600 companies formed over 2010-2015 period; 2. Funding for the year 2014 and 2015

44

Emerging Start-ups

Start-up India
Momentous Rise of the Indian Start-up Ecosystem

2012

2013

Average Year of Inception

2014

IoT, Health-tech, and Payments are set to disrupt the


market; Mobility is the key driver for a mobile-first nation

IOT

75+ start-ups

MOBILITY
Health-Tech

120+ start-ups

Payments

70+ start-ups

Notes: 1Estimated based on a sample of 600 companies formed over 2010-2015 period

45

Start-up India
Momentous Rise of the Indian Start-up Ecosystem

35%

Start-ups have
focus on mobile
based delivery
model

Health-Tech: Huge population base and potential


of Indias healthcare industry is driving growth in health-tech

E
Online Healthcare Search

Health-Tech

Raised $10.2 Mn funding


from Tiger, Nexus and Ratan
Tata

Over $80 Mn

invested in Start-ups since Jan20151


*Excludes Practo*, which received
funding of $120 Mn in 2015

Quick Facts

New Delhi
2013

Rural healthcare provider


Raised pre - series A funding from
Ankur Capital in 2015

Udaipur
2014

120+ start-ups in India which almost


grew 2x since 2014
The Indian healthcare IT market today is
worth USD 1.0 billion (2014) and pegged
to grow ~1.5X by 2020

Mumbai
2013
Home healthcare provider
Home healthcare market player
Raised $1 Mn in angel funding in
2015

Bangalore
2013

Raised $37.5 Mn funding from


Accel partners, Qualcomm
Ventures and Ventureast in 2015

Accelerators dedicated solely to Healthcare


Start-ups are getting incepted in India

Indian health-tech start-ups are proving their


capabilities in the global market as well

Success Story: Practo, an online health service


platform with 200K+ doctors & $120Mn+
funding in last 8 months

Source: Rediff, News Articles


Notes: # of startups estimated based on a sample of 600 companies formed over 2010-2015 period, 1.Investment numbers do not include undisclosed deals. *Practo is pre 2010 incorporated

46

Start-up India
Momentous Rise of the Indian Start-up Ecosystem

Payments: Cashless/online transactions and


smartphone growth are driving emergence of
payments solutions from start-ups

E
Online payment gateway
solution
Raised $120 K seed funding in
2015

Payments

Over $145 Mn*


invested in Start-ups since Jan2015
2

Quick Facts

*Excludes Paytm , which received


funding of $635 Mn in 2015

70+ Start-ups in India

Mobile recharge
and bill payments
platform
Raised $80 Mn funding
in 2015

Jaipur
2013

Mumbai
2011
Hyderabad
2012

India has just 260 Mn bank accounts i.e.


2/3rd of the country is unbanked
Over 95% of the 30 Bn of payments
transactions annually are by cash/cheque

Mobile PoS and


payments processing
solution
Raised $23 Mn in Series
C funding in 2015

Online citizen
services bill payments
Raised $10 Mn funding
from SRI Capital in 2015

Bangalore
2011
Start-up Offering
Hardware
Only Software/Service

RBI has given license to 11 companies


including Paytm to setups payments banks

Success Story: Paytm, an online


payments platform received $635 Mn
funding in 2015

Source: YourStory, News Articles


Notes: # of start-ups estimated based on a sample of 600 companies formed over 2010-2015 period, 1. Investment numbers do not include undisclosed deals;
2.
Paytm received funding majorly for its eCommerce platform, hence not included in the overall payments funding

47

Start-up India
Momentous Rise of the Indian Start-up Ecosystem

IoT: Start-ups riding on the IoT wave are set to disrupt


how consumers and industries interact with machines

E
IOT based energy monitoring
equipment
Raised $200K in Seed Capital
from Snapdeal and Rajan
Anandan

IOT

Over $75 Mn
invested in Start-ups since Jan20151

Wearable technology for


a healthier lifestyle
Gurgaon
2013

Raised venture funding


in 2015

Quick Facts
75+ Start-ups in India which grew over
35% since 2014

Mumbai
2014

Wearable device to control


any smart device
Raised $ 0.2 Mn crowd
funding in 2014

Pune
2013

USD 10-15 Bn IoT Market Opportunity


by 2020

$1 Bn+ investment committment by Indian

A connected car platform


for remote monitoring

govt on building 100 smart cities every year


for next 5 yrs

Raised Seed Capital from


Pose Ventures and
Snow Leopard

PM announced the launch of Centre of


Excellence for IoT in Bangalore - A combined
initiative of Department of Electronics & IT,
ERNET India and NASSCOM to promote the
sIoT ecosystem

Kochi
2013

Success Story: Altizon, company focused


on making enterprises IoT ready
named Garter 2015 cool vendor

Notes: # of start-ups estimated based on a sample of 600 companies formed over 2010-2015 period, 1. Investment numbers do not include undisclosed deals.

48

Start-up India
Momentous Rise of the Indian Start-up Ecosystem

Robotics, 3D Printing and Machine Learning are


key whitespaces which will drive future attention
from start-ups
Illustrative Start-up Leaders across Verticals

Robotics

3D Printing

Grey Orange Robotics founded in 2011,


based out of Gurgaon (NCR) builds
robotics systems for warehouse
automation

Fracktal Works founded in 2013, based


out of Bangalore develops 3D printers
having clientele including L&T, Toshiba
and Cisco

Raised $30 Mn funding from Tiger


Global and Blume Ventures in 2015

Raised $3 Mn seed funding from 1 Neoteric


Technology Solutions in 2015

Other Start-ups

Source: News Articles

49

Start-up India
Momentous Rise of the Indian Start-up Ecosystem

Other Start-ups

Machine Learning

InvenZone founded in 2013, based out


of Mumbai provides a niche platform for
researchers using advanced machine
learning and deep learning algorithms
Raised undisclosed
amount of angel funding in 2014

Other Start-ups

SECTION 4
INCUBATORS/ ACCELERATORS

Landscape

Funding

Verticals

4
Incubators/
Accelerators

5
Talent

6
Policies

With over 40% growth annually, 110+ business


incubators & accelerators are providing seed stage
support to start-ups
Incubator/ Accelerator Ecosystem in India
New Colleges Setting up
Incubation Centres

18 new colleges in
Tamil Nadu expected
to have incubation
centres by 2015

110+
Accelerators/
Incubators

40%+

45%+

Key Trends

Incubators located in Delhi, Bangalore and Mumbai

Key Focused Verticals: Big Data & Analysis;


Consumer Internet with emerging verticals such as
payments, healthcare, education, advertisement etc.

More Corporates Moving


to Accelerator Market

YOY Growth in #
of Accelerators/
Incubators
NASSCOM IoT CoE

NASSCOM partnering
with State Governments
for Start-up warehouses
80 Start-ups have been
incubated across Startup Warehouses, with
~10Mn Funding raised

Source: Zinnov Research & Analysis

52

Start-up India Scripting a new future:


Momentous Rise of the Indian Start-up Ecosystem

Vertical Focused Accelerators coming into play to


provide industry specific connects and guidance,
however few start-ups to select from becomes a
challenge
Launching Online as well as Offline Programs to
expand their reach and going global

Most incubators and accelerators also provide funding,


mentorship and networking opportunities, in addition to
business support
Founded

Location

2012

Bangalore

2012

Noida

2012

Gurgaon

2014

Bangalore

Focus
Areas
Cloud
Internet
Mobile

Notable Start-ups

Details
Provides mentorship, technical
guidance and networking
through 16 weeks program

Funding disclosed only in few


cases (27% of the start-ups
have received Series A funding
later on)

Internet
Mobile

Provides mentorship,
networking, co-working space
through 16 week program

Invests up to $50k at 8%
equity

Internet
Mobile

Provides networking,
mentorship, initial capital etc.
through 13 week program

Invests $30k-$60k at 8-9%


equity (subsequent rounds of
up to $500,000 into a few
select start-ups)

eCommerce
Healthcare
Clean-tech

Provides mentorship and


operational support through
100 day accelerator program/
24 week scale-up program

Provide grants of $2.5K or


invests $50K-$1Mn

Provide mentorship, networking No funding provided (Start-ups


get $20,000 worth of cloud
and guidance in technology
credit to buy cloud services)
through a 6 day program

2014

Bangalore

Internet
IoT

2014

Bangalore

Mobile
Marketing
Analytics

Provides mentorship,
networking, co-working space
through 16 week program

2011

Bangalore

Virtualization
Cloud
Mobility

Provides support, in-depth


training, co-working space
through 12 week program

Source: News Articles, Company Websites

53

Funding

Start-up India
Momentous Rise of the Indian Start-up Ecosystem

Provide funding of upto $30k


Awards $10k equity free grant
to selected start-ups

SECTION 5
TALENT

Landscape

Funding

Verticals

Incubators/
Accelerators

5
Talent

6
Policies

India is the youngest start-up nation in the world - 72% of the


founders are less than 35 years old
Demography of start-up founders
Founders Gender
Breakup
Age
<20 years 20-25 years 26-30 years

0.3%

15%

26%

31-35 years 36-40 years 41-45 years

31%

15%

6%

Education

Engineering
Graduate

M.B.A.

Other
Graduate

Other Post
Graduate

Engineering
Post-Graduate

35%

26%

15%

10%

4%

>45 years

6%

Others1

~91%

~9%

10%
Comparatively small share
of women entrepreneurs

Notes: 1Others include MS, Administration Graduate, Doctorate, Under Graduate, etc.

56

Start-up India
Momentous Rise of the Indian Start-up Ecosystem

50% rise in share of female entrepreneurs in 2015


over 2014
Top Focus Areas of Women Driven Start-ups

~9%

Women Entrepreneurs in
Start-up Landscape1

70%

eCommerce

B2C
Aggregator

Age Wise Break Up of


Start-up Founders

30%
47%
16%

Successful Women Entrepreneurs

Shanti Mohan
Founder & CEO
(BE from BIT Sindri)
$650 K of funding

26-30 years
31-35 years
35+ years

30%
B2C

Education Break Up of
Start-up Founders

Enterprise
Software
Big Data &
Analytics

Naiyya Saggi
CEO
(MBA from Harvard
Business School)
$600 K of funding

22%
27%
39%

12%

$168 Mn+

Funding received by women


start-ups in 2015

Suchi Mukherjee
Founder & CEO
(MSc. from London
School of Economics)
$30 M of funding

BE, B. Tech M. Tech, MS, MCA


Others2
MBA
Source: Zinnov Product/Digital Start-up Database
Notes: Analysis based on a sample size of 31 Start-ups, 1% of start-ups with women as founder or co-founder, 2includes 'Other Undergraduates', 'Others Masters' and 'Doctoral' degree"

57

Start-up India
Momentous Rise of the Indian Start-up Ecosystem

Driven by 4.5X growth in funding to women driven start-ups


$ 168 Mn
Funding to Women
driven Start-ups1
Top Deals (2015)

Sources of Funding to Women driven


Start-ups (2015)
10%
2%
Angel
Undisclosed

$37.5 Mn

$ 36 Mn

$40 Mn

$
2014

88%
VC/PE

2015(till date)

(Founded in 2015, Indias 1st VC Fund focused on Women Entrepreneurs2)


Founders

Total Corpus

Ankita Vashishtha
Founder & CEO
(Managing Partner, Tholons Capital)
Usha Amin
Co-founder & CFO
(Past Chairman & MD, Accenture)

$ 15 Mn

Source: Company Website, Your Story, Zinnov Analysis


Notes: 1Includes start-ups where a woman is one of the co-founders, 2SEBI approved

58

Start-up India
Momentous Rise of the Indian Start-up Ecosystem

Focus Areas

eCommerce
Social Media
Cloud
Analytics
Education
Healthcare

Start-up Investments

Indian CXOs and senior executives are coming forward


to join start-ups or starting their own ventures
Industry Leaders becoming part of Start ups
Key Drivers
Technology Leaders
joining Start ups

Business Leaders
joining Start ups

Industry Veterans
starting own ventures

1
Punit Soni
Chief Product
Officer, Flipkart
Worked at
Google, Motorola
Anand
Chandrasekaran
Chief Product
Officer, Snapdeal
Worked at Yahoo,
Airtel

Namita Gupta
Chief Product
Officer, Zomato
Worked at
Facebook,
Microsoft

59

Ananth Narayanan
CEO, Myntra
Worked at
McKinsey

Abhishek Poddar
Director, Product
and Business,
Ezetap
Worked at HP

Sumant
NaikKhanvte
Director, Product
Management,
Zipdial
Worked at Juniper
Networks

Start-up India
Momentous Rise of the Indian Start-up Ecosystem

High pay-packages
coupled with stock
options

K Radhakrishnan
Co Founder,
GrocerMax
Worked at Future
Group, Reliance
Retail
2
Higher roles and
responsibilities

Ashish Goel
Founder, Urban
Ladder
Worked at
Mckinsey, Amar
Chitra Katha Media
Deepak Garg
Founder, Rivigo
Worked at
McKinsey

Better future
career growth

Brain drain to brain gain- people settled abroad are returning


to India to start new businesses

Ashwini Asokan,
MAD Street Den

Suchi Mukerjee,
LimeRoad

Masters from Carnegie


Mellon University, USA
Worked at Intel, USA
Year Founded: 2014

Saurabh Arora, Lybrate


MBA from Columbia Business School, USA
Worked at Facebook, USA
Year Founded: 2013

Masters from Carnegie Mellon


University, USA
Worked at Intel, USA
Year Founded: 2012

Sandeep Aggarwal,
Shopclues & Droom
MBA from Columbia Business School, USA
Worked at Facebook, USA
Year Founded: 2011

Sameer Maheshwari
Healthkart
MBA from Harvard Business School, USA
Worked at UBS
Year Founded: 2011

Poornima Vardhan, 335TH


MBA from The Wharton School, USA
Worked at UBS, USA
Year Founded: 2014

Key Drivers
1

Maturing start-up ecosystem in India

4 Ease of funding availability

Massive market opportunity with high # of


potential customers

5 Low running cost for start-ups

White spaces in India which can be addressed

3 by start-ups offerings

60

Start-up India
Momentous Rise of the Indian Start-up Ecosystem

Start-ups are providing an exhilarating work culture along


with attractive monetary benefits to lure new and retain
existing talent

Flat Hierarchy as
compared to
Corporates

Flexible
Work Timings

More Opportunity to Grow

61

Start-up India
Momentous Rise of the Indian Start-up Ecosystem

Multitasking

Continuous real-time
semi-structured
feed back

Competitive Monetary
Benefits

Freedom to Innovate
& Explore

SECTION 6
GOVERNMENT POLICIES

Landscape

Funding

Verticals

Incubators/
Accelerators

Talent

6
Policies

Government policies and initiatives are aimed towards


improving the overall start-up ecosystem
1

Funding

Start-up India Standup India

Launched India Aspiration Fund


(IAF)

Prime minister announced


integrated platform to promote
and boost entrepreneurship in
the country

To boost start-up ecosystem,


launched IAF with initial corpus of
INR 2,000 Cr to finance and
promote MSME1 sector

SETU2 Program
Established techno-financial/
incubation programme to support
start-ups and set aside INR 1,000
Cr in 2015 Union Budget

1
Atal Innovation Mission
Established a platform to promote
culture of innovation and R&D and
earmarked INR 150 Cr in 2015
Union Budget

Technology
1

2
Improving Ease of Starting a
Business
To create Ebiz portal for
reducing approvals required to
start a business
To complete tax3 registration in
2 days

Operations
1

NEW
Start-upS

Dedicated Start-up Exchange


SEBI has plans to setup an
alternative trading platform for
internet start-ups with relaxed listing
requirements

2
Plans Incentives to IoT Start-ups
Easy import facilities & duty
benefits
Minimize excise & central sales
tax
Subsidised rates on purchasing
land

3
State Government Start-up
Policies
State Governments are coming up
with start-up friendly policies and
partnership with NASSCOM for
start-up warehouse setup in their
respective locations

Technology Business Incubator (TBI)


Scheme by Department of Science and
Technology to facilitate creation of
technology led and knowledge driven
enterprises

Source: News Articles


Notes: 1Self-Employment and Talent Utilization, 2Micro Units Development Refinance Agency, 3Department of Electronics & Information Technology,
Micro, small and medium enterprises, 5Central excise and service tax

64

Start-up India
Momentous Rise of the Indian Start-up Ecosystem

Government can further boost the ecosystem by formulating


overarching start-up centric policies
Key Policy Related Asks from the Government
1

Start-up Policy
Formulate start-up policy for
India to promote overall
start-up growth and foster
an environment of
entrepreneurship

Infrastructure
Develop infrastructure
across cities for better
connectivity, transportation
and basic amenities to spur
business growth

Ease of Doing Business


Focus on easing regulatory
norms for starting and
operating a business in the
country along with sector
specific regulations

Incentives
Provide subsidies, funds
and other incentives to
start-ups in areas such as
product development and
market access

Source: Money Control

65

Exit Options
Lay out rules on exit options
for entrepreneurs as well as
investors to boost cross
border M&As

Start-up India
Momentous Rise of the Indian Start-up Ecosystem

Tax Benefits
Rationalize taxes related to
start-up investments such as
angel-tax, differences
between investments in
listed & unlisted shares and
mobilize domestic investors

The industry would also certainly


like to see a pro-investor tax
policy and avoidance of double
taxation for foreign investors to
enhance investments in the
country.
- Safir Adeni, President,
TiE- Hyderabad

"Start-ups create jobs and


intellectual property and
catalyze FDI by attracting
venture capital. Because of the
current tax regime, start-ups
are being compelled to
incorporate overseas."
- Saurabh Srivastava, Founding
& Managing Committee
Member, IAN

"It (budgetary provisions for startups) will generate interest in


international VC firms to consider
India as a favourable investment
destination.
- Shashank ND, CEO, Practo

NASSCOM
10,000 Start-ups Program

NASSCOM 10,000 Start-ups Program


10,000 Start-ups is an ambitious attempt by
India's premier IT industry body - NASSCOM
to scale up the start-up ecosystem in India by
10x. 10,000 Start-ups aims to enable
incubation, funding and support for 10,000
technology start-ups in India over the next
ten years. The program's vision is to:
Foster entrepreneurship and build entrepreneurial
capabilities at scale

Strengthen support
system for tech startups

Impact 10,000 Tech


Start-ups on F.A.M.E.
Model by 2023

To meet these objectives, the program brings together key stakeholders of the ecosystem including start-up incubators /
accelerators, angel investors, venture capitalists, start-up support groups, mentors and technology corporations and we
operate as the knowledge base of start-ups' working models, verticalized interest, etc. From 15 partners initially, we've grown
to a network of 70 partners today. The program is supported by foundation grants and corporate partnerships.

68

Start-up India
Momentous Rise of the Indian Start-up Ecosystem

10,000 Start-ups Core Components

69

Bring together the community of


India's top entrepreneurs in a wide
range of industries including
consumer and enterprise IT, medical
and hardware, IOT and eCommerce.

Education through customized


programming and on-demand
experts delivered to match the
founders' needs.

Mentorship from over 200 serial


entrepreneurs, experts, angels and
VCs, including individuals from
LinkedIn, Google, Amazon, Microsoft,
and many more in Silicon Valley.

Credits worth $25,000 in value from


our Partners, including cloud
computing and storage credits,
developer platforms, and other
software's in addition to drop-in
office space (Start-up Warehouses)
and legal advice.

Start-up India
Momentous Rise of the Indian Start-up Ecosystem

NASSCOM 10,000 Start-ups Program


10,000 Start-ups - Initiatives
NASSCOM Start-up Incubation Network
( S t a r t - u p Wa r e h o u s e s ) S t a r t - u p
Warehouses are designed for start-ups
ecosystem creation and enhance early stage
support for technology start-ups in various
states of India. An Incubator and co-working
space for dozens of technology start-ups and
early stage product companies at a highly
subsidized cost, in the heart of the city. The
co-working space allow early-stage
technology start-ups to work for 6-12 months
during which it will facilitate demos and
pitches by start-ups to investors, large
corporates, other accelerators/incubators
and individual mentors. It also provides a
large event place for hackathons, regular
talks and workshops to sharpen the skills of
start-ups on go to market, scaling up, global
technology trends, and other learning &
development needs.

70

Start-up India
Momentous Rise of the Indian Start-up Ecosystem

Currently in operation:

Start-up Warehouse,
Bangalore. Supported by
the Govt. of Karnataka
Start-up Warehouse,
Kolkata. Supported by
the Govt. of West Bengal
Start-up Warehouse,
Kochi. Supported by the
Govt. of Kerala

In the pipeline:

Start-up Warehouse, Navi Mumbai & Pune.


Supported by the Govt. of Maharashtra
Start-up Warehouse, Gurgaon. Supported
by the Govt. of Haryana
80 Start-ups have been incubated across
Start-up Warehouses, with ~10Mn Funding
raised. 400 Jobs created by them, 150+
events across warehouses that includes
hosting international delegations, Investor
meet-ups, Hackathons, Start-up Konnect
sessions.

Top Gun Start-ups from 10K Start-up Warehouses:


Bookpad, Boutline, Catapoolt, Changer Mints, English Dost, EPoise
HackerEarth, Hiree, iReff, Jiffstore, Mera Tiffin, Metome, Native5, Ridingo,
Shield Squire, SignEasy, Smart Buildings, Smart Pocket, TookiTaki

NASSCOM 10,000 Start-ups Program


NASSCOM Industry Partner Program (NIPP) NIPP focuses on market validation and early customer development for
start-ups. The program on innovative mature technology ventures to test their solution, pricing model, and marketing
strategy, also do a proof of concept for sustained engagement between large corporates.
NIPP Member Companies Include:
Google, Microsoft, Intel, Amazon Web Services, IBM, Motorola, Dell, AllState, Wipro, CA Technologies, Societe Generale,
UBS, Accenture, Deutch Bank, Zafin, Sony
Start-up Konnects - 10K Start-up Konnects, aims to bring together Funding Partners, Mentors, Enterprise Tech Industry Network
and 10K shortlisted start-ups for the purpose of win-win partnerships. These connect events enable early stage start-ups to
connect with bigger contemporaries and 'sell' to them their ideas, innovations and niche products.

WomenTechShip - We are creating the right environments, programs and policies, for woman to thrive. With WomenTechShip as
our regular series, we aim to support women advance in domain technology fields. These women meet-ups include education in
technology, hackathons, inspiring talks by women leaders and skill based workshops and sprints. Bit Giving, Cash Karo,
FreshMenu, Green Cosmos, SeekSherpa, Social Cops, SmartVizX, Trumpet, WeTravelSolo to name a few
Innotrek - It's a global connect access program, that gives the brightest tech start-ups a chance to go to Silicon Valley, get
access to global VCs and connect with some of the biggest and most renowned tech giants of the world. AdPushup, Bookpad,
CustomerXps, Faircent, FindUrClass, Instasafe, Loginext, LazyLad, Posist, Wagmob to name a few

71

Start-up India
Momentous Rise of the Indian Start-up Ecosystem

NASSCOM 10,000 Start-ups Program


Our events deliver press and funding to founders
We conduct events where our network of investors and enterprises come to hear our companies pitch. These
events have been attended by over 200 investors and press from leading publications like Economic Times,
Times of India, Business Standard, Financial Express and more. Prior to each Konnect session, our staff and
mentors work with each start-up extensively to refine their pitches. Throughout the session we provide access to
numerous top-tier investors, angels, corporate representatives, and press. This is essential for fundraising,
publicity, and corporate partnerships.

10,000 Start-ups IMPACT


Started in April 2013, since then, we've done about 600+ high impact events in 26+ cities of the country which
were attended by a whopping 35,000 attendees and have impacted 1100 start-ups out of 11,000+ Applicants.
From which 170+ Start-ups have received funding, 500+ Start-ups have got mentored, 100+ Start-ups
Accelerated and 1000+ Enterprise Connected. 10% women entrepreneurs in the program.
The program is supported by our founding partner Google for Entrepreneurs, and Industry Partners Microsoft
Ventures, Kotak Mahindra Bank, IBM and Amazon Web Services.

72

Start-up India
Momentous Rise of the Indian Start-up Ecosystem

Appendix

Based on number of start-ups India is counted among


the top 5 largest start-up communities in the world

Canada
6,000-6,200

UK
7,900-8,000

3,000-3,100

Netherlands

Russia

1,225-1,250

1,350-1,375

560-575

630-650

Total Start-ups

Total Tech Start-ups

4,500-5,000

Germany
2,500-2,525
1,160-1,175

France
2,200-2,300

China

1,025-1,050

USA

9,500-10,500

Israel

83,000-83,500

3,3003,500

4,500-5,000
47,000-48,000
3,900-4,100

India
9,500-10,500
4,200-4,400

Brazil
1,600-1,650

1,290-1,320

750-775

Countries based on the


number of Start-ups

Source: Zinnov Research & Analysis, AngelList

74

Start-up India
Momentous Rise of the Indian Start-up Ecosystem

Australia
2,775-2,800

<5,000
Start-ups

5,000
7,500
Start-ups

7,500
10,000
Start-ups

10,000+
Start-ups

NASSCOM- ZINNOV Start-up City Index


Index Score -Top Cities

1. Bangalore

Index Score Emerging Cities

Major Start-up Focused


Indian Cities

1. Chennai

2.NCR

2. Pune

3. Mumbai

3. Hyderabad
4. Ahmedabad

Bangalore is evolving fast to


become a global start-up hub,
closely followed by NCR and
Mumbai

5. Jaipur
Top Cities
Emerging Cities

Other cities such as Chennai,


Pune, Hyderabad, Jaipur,
Ahmedabad, Chandigarh etc. are
taking steps to emerge as key
cities in start-up space

City Index Score


Calculated based on:
Number of start-ups
Number of investor deals
(c) Amount of funding
(d) Enabling ecosystem (such as proximity of investors,
incubators, accelerators and coworking spaces)
Source: Zinnov Analysis, Zinnov Start-up Database

75

Start-up India
Momentous Rise of the Indian Start-up Ecosystem

Index Score
(0-5)

Top Cities
>4.8

4.5-4.8

Emerging Cities
4-4.5

0.75-1.5

0.5-0.75

<0. 5

Investors look for sound team, idea and business model


before investing in start-ups

Team

Idea

1. Founders

Objective

l Pedigree- Education (associated brands of


colleges ) and experience

l Should focus on solving a customer pain


point

Business Model
Customers
l Number of customer base with the focus
on paid customers

l Number of founders and their relationship


with each other
l Mix of technical and business oriented
founders

Clarity
l Should have clear understanding of the
idea and its execution

2. Complete Team
l Product capabilities of the team
l Educational background and experience

3. Future Prospects
l Retention rate and measures to improve
the same
l Hiring plans

76

Start-up India
Momentous Rise of the Indian Start-up Ecosystem

Revenue Model
l Sound business model to generate
revenue and profits

Innovation
l Getting first mover advantage through
innovative idea

Vision
l Long term plan of expanding the idea
implementation

Market Potential
l The idea should provide large business
opportunity

Start-ups have to go through a step wise process in


order to get multiple rounds of funding
Fund Raising Process for Start-ups
STEP 1

STEP 2
Channels

Start-up

Initial funding's
provided by friends
and family

Small amount of
funding raised by
angel investors

Reference by
Client

Participation in
Competitions

Networking:
Alumni, Mentor

Screening: First
Meeting with
Investors

Evaluate: Second
Meeting with
Investors & its team

Key Presentations

Product Brief

STEP 4
Fund: Meeting with
Investor

Key Presentations

Key Presentations

Business Model

Hiring Plans
Key Clients Acquired

Evaluate Investment Risks

Revenue Model

Elevator Pitch to present


Market Opportunity

Key Clients

Seed Funding

77

STEP 3

Start-up India
Momentous Rise of the Indian Start-up Ecosystem

Past 3 Years Financials


Future 3 Years
Financials

Achievements

Series A: First Round of Funding

Past Year Failures &


Achievements

Multiple series of funding

Series N Round of
Funding

Incubators & accelerators provide networking,


mentorship and other facilities by conducting an
extensive 3-6 months program
1

Role of Incubator/ Accelerator

l Accelerator role is to foster rapid growth of


its portfolio companies
l Incubator role starts at an early stage to
enable business ideas to grow and help
them innovate

Incubator/Accelerator Offerings
Networking

l Helps connecting with the investors and


provides a platform to network with other
start-ups

Start-ups Benefit

70% start-ups taking help from


incubator/accelerator succeed in the market
compared

Mentors/ Guide

Selection Process

l Start-ups apply for admission in the


batches formed by incubator/ accelerator
l Factors taken into consideration while
selecting start-ups are product, idea,
market opportunity, team attitude and
capabilities etc.

Program Details

l 3-6 Months typical Incubation program


duration
l Conduct ~2 batches in a year with a batch
size of 10-15 applications

78

Start-up India
Momentous Rise of the Indian Start-up Ecosystem

l Helps in forming the company vision,


refinement of the product and the
business strategy
l Mentors includes proven CEOs, investors,
industry experts etc.

6
Facilities
l Provides funding and additional facilities
such as office space, internet, computers,
accountants etc.

Others
l Provides marketing assistance, business
training programs, technology assistance
etc.

Incubator/Accelerator Benefit

l Takes a small share in equity (falling in the


range of 3%-10%) or fixed fee
l To understand the new innovations in the
market
l Corporate MNCs can pitch their
technologies to form a part of start-up
products

Driven by smartphone adoption, a huge consumer base in


India is coming online
Rapidly growing
smartphone base

140 Mn

Smartphone user-base in India1

213 Mn

Mobile internet users in India

35%

41%

300 Mn

Number of internet users in India1

63 Mn

Consumers making online


purchase2

Annual growth rate of smartphone


users in India3

$100 Mn

Size of the online grocery


2
market in India

eCommerce sales through mobile1

$22 Bn

Indian eCommerce industry size2

Source: Cisco Report, CLSA Report, Zinnov Analysis


Notes: 1. 2014, 2. 2015, 3. Between 2015 and 2019

79

Consumers creating
online identity

Start-up India
Momentous Rise of the Indian Start-up Ecosystem

The number of active investors, both angels and VC/PE,


have grown significantly
VC/PE

YOY Investment Commitment in Start-ups


by VCs/ PEs (in USD millions)
4,705 (E)
2,110

3,326

882
1,228

2014
eCommerce

1,379

Share of eCommerce in
the overall portfolio has
declined from 58% in
2014 to 29% in 2015

2015
Others

196
176

48
46
2

20

2014

2015

eCommerce

2X increase in number of active VC/PE


investors

Over 458
deals signed
2015*

YOY Investment Commitment in Start-ups


by Angel Investors (in USD millions)
Angel
Investor

156 Active
VCs/PEs in
2015*

Marginal increase in share


of eCommerce, however,
the overall Angel portfolio
remains fairly diverse with
investments across
Aggregators, Consumer
Services, eCommerce
Enablers, among others

292 Active
Angel
Investors in
2015*

Nearly

2.25x increasein total number

of deals in 2015 compared to 2014

Nearly 2.5x increase in number of


active Angel investors

Over 436
deals signed
2015*

Nearly 2x in total number of deals in


2015 compared to 2014

Others

Notes: 1Estimated based on average deal size and number of deals(extrapolated based on number of deals in first three quarters). Deals worth 4.1Bn already
closed by end of Q3-2015. To calculate the average deal sizes of more than 50 millions were not considered. 2Presented numbers are for Jan-Sep 2015 period.
3
A Deal is defined as a transaction between start-up and an investor. A single round of funding could be counted as multiple deals as there could be multiple
investors investing. 4In addition, 17 deals in 2014 and 59 Deals in 2015 did not have investor details. 5Active Angel (or VC/PEs) is defined as an investor who has
made at least one investment in 2015

80

Start-up India
Momentous Rise of the Indian Start-up Ecosystem

Few major VC/PE funded B2B & B2C start-ups


Key B2C Start-ups Funded in 2015

1
Online Shopping
Portal

$ 100 Mn
Funding

Investor

VC/PE

1
Courier Services
Company

2
Home Design
Setup Company

Key B2B Start-ups Funded in 2015

$ 50 Mn
Funding

Robotics Company

3
Business Analytics
Solution

Investor
Funding

Source: Zinnov Product/Digital Start-up Database

81

Start-up India
Momentous Rise of the Indian Start-up Ecosystem

Investor

$ 56 Mn
Funding

Investor

$ 20 Mn
Mobile-based
News App

$ 30 Mn
Funding

VC/PE

Investor

$ 100 Mn
Funding

Investor

Investor

Investor
Hotel Rooms
Aggregator

$ 133 Mn
Funding

Customer Support
Software

$ 50 Mn
Funding

Few major angel funded B2B & B2C start-ups


Key B2C Start-ups Funded in 2015

1
$ 50 Mn
Funding

Hyperlocal Service

Lead Investor

2
eCommerce Website

$ 3.5 Mn
Funding

Key B2B Start-ups Funded in 2015


Angel
Investor

1
$ 6 Mn
Funding

Real Estate Portal

Angel
Investor

Investor
Undisclosed

Investor
Undisclosed

Online Credit Evaluation


Platform

Investor

~$ 3 Mn
Funding

Shailesh Mehta

3
~$ 3 Mn
Funding

Online Health
Search Services

Investor
Ratan Tata

4
Car Rental Service

Investor

~$ 2.7 Mn
Funding

Source: Zinnov Product/Digital Start-up Database

82

Loan Exchange Platform

Start-up India
Momentous Rise of the Indian Start-up Ecosystem

~$2 Mn
Funding

Investor
Devesh Sachdev

4
Recruitment Analytics

~$ 3-4 Mn
Funding

Investor
Kunal Bhal, Phanindra
Sama, Raju Reddy,
Rohit Bansal

Definitions and Notes


Definitions
Start-ups

Angel Investor

Only technology product/ digital start-ups have been


considered for the report

Individuals investing in their personal capacity

Inception Year

While considering funding, investments by


accelerators and incubators has also been
considered as part of angel funding

l Company with inception year of 2010 or later


Headquarters
l A company that is headquartered in India OR
l Has founding team with Indian origin AND product
development largely in India
Intellectual Property
l That has developed and/ or owns the technology
IP (includes IP owned through acquisitions) AND/
OR
l That provides digital/ technology platform for
transactions and/or customer engagements
Distribution

VC/PE
Includes venture capital firms, private equity
firms, investment banks, companies and
corporates*
* Companies and corporates have been included
in VC/PE only for purposes of funding values

l Undertakes the packaging, selling & marketing of


the product/ platform itself or through channel
partners
Notes: There maybe deviation in values presented for 2014 when compared to the previous version of the report published last year as the numbers stated in this
report for 2014 are actuals, while those in the previous version consisted of estimations for the year 2014 based on our analysis till July 2014

83

Start-up India
Momentous Rise of the Indian Start-up Ecosystem

Vertical Definitions (1/2)


eCommerce

Aggregators

eCommerce
Enablers

Hyperlocal
eCommerce

Sell products on the


internet

Offer information about


goods/ services from
several sources

Help e-commerce firms with


various business
operations

Sell products/services
catering to smaller areas
and with short delivery time

Sub-Verticals: Across, Home


Dcor, Fashion, Kids, etc.

Sub-Verticals: Transport, Real


Estate, Travel, Deal Search, etc

Sub-Verticals: Logistic, App/ Web


Development, Inventory, etc .

Sub-Verticals: Grocery, Food,


Healthcare

Payments

Edu-Tech

Enable payment through


software and hardware
solutions

Operate in the education


sector and provide
technology related services

Sub-Verticals: Hardware, Hyperlocal


Deals, etc.

Sub-Verticals: Tutoring, Vocational,


Test Prep, etc

84

Start-up India
Momentous Rise of the Indian Start-up Ecosystem

Social Platforms
Help users with common
interests interact and
engage
Sub-Verticals: Dating, Fashion
Content, Coders, Sharing, etc.

Consumer
Services
Offer a range of services
targeted directly to
consumers
Sub-Verticals: Interior Design, Car
Rental, Hyperlocal Deals, etc.

Health-Tech

Gaming

Operate in the healthcare


sector and provide
technology related services

Involved in development of
computer and mobile
games

Sub-Verticals: Health Apps,


Doctor, etc

Sub-Verticals: Across, Home Dcor,


Fashion, Kids, etc.

Vertical Definitions (2/2)


Enterprise Software

Recruitment

Ad-Tech

Fin-Tech

Provide various types of software


products to customers

Offer platform to connect employers


and candidates

Operate in the Media sector and


provide technology related services

Operate in the BFSI sector and


provide technology related services

Sub-Verticals: ERM, CRM, Security, etc.

Sub-Verticals: Blue Collar, Vertical


Specific, etc.

Sub-Verticals: Mobile, Social Media, TV,


Email/Messaging, etc.

Sub-Verticals: Credit Rating, Crowdfunding,


Investment, etc.

IoT

Analytics

Media-Tech

Others

Provide hardware in the IoT space


such as sensors which collect data

Provide analytics related services


as the final products/solutions

Operate in the media sector and


provide technology related services

Present in verticals other than


the ones listed

Sub-Verticals: Robotics, Sensors,


Wearables, etc.

85

Sub-Verticals: Marketing Analytics,


Enterprise Business Intelligence, etc.

Start-up India
Momentous Rise of the Indian Start-up Ecosystem

Sub-Verticals: News, Talent Showcase, etc.

Sub-Verticals: Content Creation,


Communication, 3D Printing, etc.

Appendix: Zinnov conducted dialogues with ecosystem


stakeholders and supplemented it with information from
secondary sources

Start-ups

Zinnov
Repository

v Zinnov product and digital start-up


database
v Zinnov start-up domain knowledge
base and expertise

Angel
Investors

PE
Investors

70+

Primary
Interactions
Other
Public
Sources

Incubators

86

Accelerators

Start-up India
Momentous Rise of the Indian Start-up Ecosystem

Media Articles
VC Websites
Angel Networks Websites

International Youth Centre, Teen Murti Marg, Chanakyapuri, New Delhi 110 021, India
Phone: +91-11-23010199, Fax: +91-11-23015452, E-mail: research@nasscom.in
Website: www.nasscom.com

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