Professional Documents
Culture Documents
Start-up India
Copyright 2015
Foreword
R Chandrashekhar
President, NASSCOM
Pari Natarajan
CEO, Zinnov
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.
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.
Ranking Among
Global Start-up
Ecosystem
~$5 B
156
110
Number of Incubators/
Accelerators in India,
growth of 40% since
2014
28yrs
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
Enhancing Citizens
Life Style
Building innovative
solutions
Growing Opportunities
for Stakeholders
08
Start-up India
Momentous Rise of the Indian Start-up Ecosystem
09
Start-up AGE
Before moving to Delhi
lGoes for on-demand storage
for storing unnecessary items
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
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
Power
$68 Bn
$10 Bn
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
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
Employment
FDI Growth
Growth in Employment
Opportunity
250K
3
Multiplier Effect
Traditional businesses are being
positively impacted through
increased spending by start-ups
Advertising/Marketing
~$600 Mn
Estimated spend of
eCommerce players
on ads in 2015
80-85K
2015
2020P
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
Landscape
Funding
3
Verticals
4
Incubators/
Accelerators
5
Talent
6
Policies
1
l
14
Landscape
l
Start-up India
Momentous Rise of the Indian Start-up Ecosystem
Funding
Verticals
B2C Segment
l
B2B Segment
l
Emerging Verticals
l
Whitespaces
l
4
l
Number of incubators/
accelerators grew by 40% from
~80 in 2014 to ~110 in 2015
15
Incubators/
Accelerators
l
Start-up India
Momentous Rise of the Indian Start-up Ecosystem
Talent
Policies
l
SECTION 1
Start-up LANDSCAPE
1
Landscape
Funding
Verticals
Incubators/
Accelerators
Talent
6
Policies
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
NASSCOM launches
the 10,000 Start-ups
Program
~2,100
~156
~292
~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
4,200 - 4,400
12,000+
2015
2020P
rd
3 Largest
~91%
Male
80-85K
Employed in Start-ups1
$ 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
Role Models
2.3x
Unicorns
Growth in # of investors
since 2014
140 Mn
300 Mn
Internet Users
Industry Leaders
Growth in # of start-ups
funded since 2014
eCommerce
Industry1
10 Mn
Tech Ready
SMBs1
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
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
Viable Investment
Support
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
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
21
Ratan Tata
Start-up India
Momentous Rise of the Indian Start-up Ecosystem
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%
Traditional healthcare
facilities and services
are being disrupted by
health-tech start-ups
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%
Start-up India
Momentous Rise of the Indian Start-up Ecosystem
Enterprise Software
16-18%
x%
Share of vertical in
total # of new startups in 2015
2. NCR
3. Mumbai
NCR: 23%
Top Cities
Bangalore: 26%
eCommerce
eCommerce
Enablers
Emerging Cities
Aggregators
Hyperlocal
eCommerce
1. Chennai
Mumbai:17%
2. Pune
Aggregators
eCommerce
3. Hyderabad
Hyperlocal
eCommerce
4. Ahmedabad
Hyderabad: 8%
5. Jaipur
Consumer
Services
Payments
IoT
Chennai: 6%
Enterprise
Software
Top Cities
Analytics
Emerging Cities
Pune: 6%
Hyperlocal
eCommerce
eCommerce
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
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
Key Start-ups
Key Start-ups
Key Start-ups
Key Investors
Key Investors
Key Investors
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
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
~$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
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
2015
$ 2.3 Bn (E)
83%
NCR
Emerging Start-up
Cities
2015
Chennai
$ 100-110 Mn
Mumbai
Pune
$ 80-90 Mn
$ 1.1 Bn (E)
95%
Bangalore
2015
$ 1.2 Bn (E)
70%
Start-ups deals in 2015 with more than $50 million
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
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
Sequoia Capital
HomeLane
$52 Mn
Oyo Rooms
$100 Mn
Grofers
$23 Mn
Consumer Services;
Healthtech; Gaming
Warburg Pincus
Ecom Express
$133 Mn
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
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
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
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%
2014
17%
36%
eCommerce
eCommerce
95%
83%
60%
250%
30%
eCommerce
Enablers
2015
48%
eCommerce
Enablers
B2B
28%
Enterprise
Software
29
Start-up India
Momentous Rise of the Indian Start-up Ecosystem
18%
Analytics
$4,705 Mn
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
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
VC/PE
38%
$4,705 Mn
B2B: 17%
B2C: 83%
Angel
Investor
eCommerce
Enablers
7%
8%
Robotics
23%
B2B: 32%
16%
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
Aggregators
$196 Mn
17%
9%
Consumer
Services
Hyperlocal
eCommerce
Total Investment
(2015)
46%
35%
Aggregators
eCommerce
8%
eCommerce
M&A
Average Start-up
Valuation
Valuation
2014
2015
$ 4.2 Mn
$ 4.4 Mn
Exit
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
Bangalore
2010
32
Start-up India
Momentous Rise of the Indian Start-up Ecosystem
M&A
M&A
M&A
Exit
M&A Trends
India
~10%
33
Start-up India
Momentous Rise of the Indian Start-up Ecosystem
Acquiring Company
Acquired Company
Acquired Company
2015
2015
Acquiring Company
M&A
Overseas Corporates acquiring Indian Start-ups
34
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
Valuation
M&A
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
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
2,200
eCommerce (Traditional)3
1,500
600
400
Aggregators
4
eCommerce (Niche)
GROWING
VERTICALS
eCommerce
Enablers
MATURE
VERTICALS
Hyperlocal
eCommerce
300
Enterprise
Software
200
Consumer
Services
Analytics
Payments
IoT
Health -Tech
100
EMERGING
VERTICALS
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
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+
# of start-ups1
$ 100 Mn
$50 Mn
$ 1.4 Bn
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
Quick Facts
2011
2012
2013
M
Funding by Sub-Segment (2015)
Aggregators
$ 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
Quick Facts
480+
# of start-ups1
$ 1.1 Bn
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
2013
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
eCommerce
Enablers
$ 24 Mn
Hyperlocal
Logistics
50+
# of
start-ups1
$ 133 Mn
$ 85 Mn
$ 40 Mn
$ 360Mn
Hyperlocal
Logistics
App/Web
Development
30
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
2014
G
Funding by Sub-Segment (2015)
$ 8 Mn
Others
Mature Start-ups
Hyperlocal
Deals
$ 33 Mn
Home Services
100+
# of start-ups1
$ 230 Mn
$ 50 Mn
$ 11.5 Mn
$ 16 Mn
Home Service
40
Car Rental
Customer
Support
20
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
Consumer
Services
$ 16 Mn
Customer
Support $ 24 Mn
Car Rental
Start-up India
Momentous Rise of the Indian Start-up Ecosystem
2012
2013
2014
G
Funding by Sub-Segment (2015)
$ 6 Mn
Healthcare
200
$ 56 Mn
Food
$ 137 Mn
Grocery
Grocery
150
Matured Start-ups
Quick Facts
Hyperlocal
eCommerce
50+
# of start-ups1
$ 50 Mn
$ 35 Mn
$ 20 Mn
$ 250 Mn
Emerging Start-ups
100
Food
50
Healthcare
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
2014
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
50
Enterprise Business
Intelligence
Quick Facts
$ 17 Mn
Marketing Analytics
Analytics
~400
# of start-ups1
$ 180 Mn
$ 56 Mn
$ 15 Mn
$ 8 Mn
$ 5 Mn
$ 1 Mn
$ 1 Mn
Marketing
Analytics
25
Human Capital
Analytics
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
2014
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
E
Online Healthcare Search
Health-Tech
Over $80 Mn
Quick Facts
New Delhi
2013
Udaipur
2014
Mumbai
2013
Home healthcare provider
Home healthcare market player
Raised $1 Mn in angel funding in
2015
Bangalore
2013
46
Start-up India
Momentous Rise of the Indian Start-up Ecosystem
E
Online payment gateway
solution
Raised $120 K seed funding in
2015
Payments
Quick Facts
Mobile recharge
and bill payments
platform
Raised $80 Mn funding
in 2015
Jaipur
2013
Mumbai
2011
Hyderabad
2012
Online citizen
services bill payments
Raised $10 Mn funding
from SRI Capital in 2015
Bangalore
2011
Start-up Offering
Hardware
Only Software/Service
47
Start-up India
Momentous Rise of the Indian Start-up Ecosystem
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
Quick Facts
75+ Start-ups in India which grew over
35% since 2014
Mumbai
2014
Pune
2013
Kochi
2013
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
Other Start-ups
49
Start-up India
Momentous Rise of the Indian Start-up Ecosystem
Other Start-ups
Machine Learning
Other Start-ups
SECTION 4
INCUBATORS/ ACCELERATORS
Landscape
Funding
Verticals
4
Incubators/
Accelerators
5
Talent
6
Policies
18 new colleges in
Tamil Nadu expected
to have incubation
centres by 2015
110+
Accelerators/
Incubators
40%+
45%+
Key Trends
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
52
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
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
eCommerce
Healthcare
Clean-tech
2014
Bangalore
Internet
IoT
2014
Bangalore
Mobile
Marketing
Analytics
Provides mentorship,
networking, co-working space
through 16 week program
2011
Bangalore
Virtualization
Cloud
Mobility
53
Funding
Start-up India
Momentous Rise of the Indian Start-up Ecosystem
SECTION 5
TALENT
Landscape
Funding
Verticals
Incubators/
Accelerators
5
Talent
6
Policies
0.3%
15%
26%
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
~9%
Women Entrepreneurs in
Start-up Landscape1
70%
eCommerce
B2C
Aggregator
30%
47%
16%
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+
Suchi Mukherjee
Founder & CEO
(MSc. from London
School of Economics)
$30 M of funding
57
Start-up India
Momentous Rise of the Indian Start-up Ecosystem
$37.5 Mn
$ 36 Mn
$40 Mn
$
2014
88%
VC/PE
2015(till date)
Total Corpus
Ankita Vashishtha
Founder & CEO
(Managing Partner, Tholons Capital)
Usha Amin
Co-founder & CFO
(Past Chairman & MD, Accenture)
$ 15 Mn
58
Start-up India
Momentous Rise of the Indian Start-up Ecosystem
Focus Areas
eCommerce
Social Media
Cloud
Analytics
Education
Healthcare
Start-up Investments
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
Ashwini Asokan,
MAD Street Den
Suchi Mukerjee,
LimeRoad
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
Key Drivers
1
3 by start-ups offerings
60
Start-up India
Momentous Rise of the Indian Start-up Ecosystem
Flat Hierarchy as
compared to
Corporates
Flexible
Work Timings
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
Funding
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
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
64
Start-up India
Momentous Rise of the Indian Start-up Ecosystem
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
Incentives
Provide subsidies, funds
and other incentives to
start-ups in areas such as
product development and
market access
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
NASSCOM
10,000 Start-ups Program
Strengthen support
system for tech startups
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
69
Start-up India
Momentous Rise of the Indian Start-up Ecosystem
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:
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
72
Start-up India
Momentous Rise of the Indian Start-up Ecosystem
Appendix
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
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
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
1. Bangalore
1. Chennai
2.NCR
2. Pune
3. Mumbai
3. Hyderabad
4. Ahmedabad
5. Jaipur
Top Cities
Emerging Cities
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
Team
Idea
1. Founders
Objective
Business Model
Customers
l Number of customer base with the focus
on paid customers
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
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
Revenue Model
Key Clients
Seed Funding
77
STEP 3
Start-up India
Momentous Rise of the Indian Start-up Ecosystem
Achievements
Series N Round of
Funding
Incubator/Accelerator Offerings
Networking
Start-ups Benefit
Mentors/ Guide
Selection Process
Program Details
78
Start-up India
Momentous Rise of the Indian Start-up Ecosystem
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
140 Mn
213 Mn
35%
41%
300 Mn
63 Mn
$100 Mn
$22 Bn
79
Consumers creating
online identity
Start-up India
Momentous Rise of the Indian Start-up Ecosystem
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
Over 458
deals signed
2015*
156 Active
VCs/PEs in
2015*
292 Active
Angel
Investors in
2015*
Nearly
Over 436
deals signed
2015*
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
1
Online Shopping
Portal
$ 100 Mn
Funding
Investor
VC/PE
1
Courier Services
Company
2
Home Design
Setup Company
$ 50 Mn
Funding
Robotics Company
3
Business Analytics
Solution
Investor
Funding
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
1
$ 50 Mn
Funding
Hyperlocal Service
Lead Investor
2
eCommerce Website
$ 3.5 Mn
Funding
1
$ 6 Mn
Funding
Angel
Investor
Investor
Undisclosed
Investor
Undisclosed
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
82
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
Angel Investor
Inception Year
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
83
Start-up India
Momentous Rise of the Indian Start-up Ecosystem
Aggregators
eCommerce
Enablers
Hyperlocal
eCommerce
Sell products/services
catering to smaller areas
and with short delivery time
Payments
Edu-Tech
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
Involved in development of
computer and mobile
games
Recruitment
Ad-Tech
Fin-Tech
IoT
Analytics
Media-Tech
Others
85
Start-up India
Momentous Rise of the Indian Start-up Ecosystem
Start-ups
Zinnov
Repository
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