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Foreword
India has truly become a start-up Nation. Since 2010, power, healthcare, employment, and education.
The Indian technology start-ups landscape has seen a Further, start-ups are empowering SMBs by
tremendous growth towards creation of innovative start- enhancing their customer reach and overall
ups and India, a home to a new breed of young start- business productivity.
ups, has clearly evolved to become the third largest
After the terrific success of first edition in
base of technology start-ups in the world. Within one
2014, the second edition of NASSCOM-Zinnov
year, the number of start-ups in India has grown by 40
report titled Start-up India Momentous Rise
per cent, and this number is expected to cross 4,200
of the Indian Start-up Ecosystem is a
R Chandrashekhar by the end of 2015.
treasure trove of facts and trends on the
President, NASSCOM 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
Pari Natarajan government start-up initiatives are further supporting
this progressive phase of start-ups in India.
CEO, Zinnov
This maturing start-up ecosystem is contributing to the
Indian economy in multiple ways. In addition to R Chandrashekhar Pari Natarajan
enhancing the lifestyle of citizens, start-ups are President, NASSCOM CEO, Zinnov
creating innovative technology solutions that address
key problems that India as a country face around
Acknowledgement
This report has been co-developed by NASSCOM and This study has been greatly enriched by the
Zinnov through a comprehensive four month study to valuable insights and detailed inputs provided by
understand the Technology Product & Digital Start-ups various investors, angels as well as other key
Landscape in India. stakeholders in the ecosystem. We would also like
to acknowledge the special contribution made by
The preparation of this report has been facilitated by a Google and Microsoft for supporting us on various
number of organizations and people who have extended policy related aspects as well as formulating and
great help to the NASSCOM and Zinnov team. We wish finalizing the numbers.
to sincerely thank all of them for their valuable
contributions without which this report would not have Finally, we would like to specially acknowledge the
been possible. support extended by our 10K partners - Google for
Entrepreneurs, Microsoft Ventures, Kotak Mahindra
First, we would like to thank all the ecosystem Bank, IBM and Amazon Web Services to support
members and other start-up colleagues, who went out NASSCOM 10,000 Start-ups Program.
of their way to provide detailed inputs and perspective
of their services/ clients/ markets etc. They offered We would also like to give a special mention to the
yeoman service to this project by providing the requisite NASSCOM research team and Zinnov Management
data and insights as required by the team. 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?
3 rd Ranking Among
Global Start-up
110
Number of Incubators/
Accelerators in India,
growth of 40% since
Ecosystem 2014
I see Start-ups,
technology and
innovation as exciting
and effective instruments Young and aspiring
~$5 B Total Funding in 2015, 28yrs minds - Average Age of
for Indias transformation, growth of ~125% over Start-up Founders1
2014
and for creating jobs for
our youth.
Notes: 1Analysis for Bangalore start-ups; Bangalore has the youngest average founders age among the top 20 start-up ecosystems
Start-up India
07 Momentous Rise of the Indian Start-up Ecosystem
Innovative minds are accelerating the growth of
Indias economy
Enhancing Citizens
Life Style 1
2 Building innovative
solutions
Growing Opportunities
for Stakeholders 3
Start-up India
08 Momentous Rise of the Indian Start-up Ecosystem
Technology driven start-ups are trying to disrupt
every aspect of a consumers life...
TRADITIONAL Start-up AGE TRADITIONAL Start-up AGE
Before moving to Delhi Before moving to Delhi Shifts to new house Shifts to new house
Start-up India
09 Momentous Rise of the Indian Start-up Ecosystem
...Leveraging technology to solve problems that have
been plaguing the country for decades
1 Power 2 Infrastructure 3 Healthcare 4 Financial
Inclusion
GDP loss due to Traffic congestion Per 1700 Rural households
$68 Bn electricity shortage $10 Bn costs per year 1 doctor persons 120 Mn without bank
accounts
48% Of agricultural yield 500 Mn Governments skilling 23% Gross Enrolment Ratio
of Asian countries target till 2022 in higher education
Start-up India
10 Momentous Rise of the Indian Start-up Ecosystem
Creating significant growth opportunities for every
stakeholder within the ecosystem
1 2 3 4
Employment FDI Growth Multiplier Effect SMB Growth
With huge rise in the number Global investors are investing Traditional businesses are being Start-ups are empowering
of start-ups in India, employment in the Indian start-up ecosystem positively impacted through SMBs in enhancing their reach
opportunities are being generated leading to increased FDI increased spending by start-ups and serve customers better
Source: Economic Times, e27 Report, ASSOCHAM Report, Forbes, YourStory Report, Zinnov Analysis
Start-up India
11 Momentous Rise of the Indian Start-up Ecosystem
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
1 2 3 4 5 6
1 Landscape
2 Funding
3
Verticals
l India ranks 3rd globally with more than l Funding is estimated to grow by 125%, from B2C Segment
4,200 startups $2.2 Bn in 2014 to $4.9 Bn in 2015; much l eCommerce start-ups and aggregators continue to
l 2.3X growth in number of active higher as compared to cumulative funding witness maximum share of the investment
investors, growing digital consumer of ~$3.2 billion over the 2010-14 period
l Hyperlocal eCommerce and consumer services
base, mobile first population, l More than 390 start-ups have received emerge as the top areas witnessing maximum
improving political environment, and funding as compared to 179 start-ups in investment growth
high interest from global investors are 2014. While overall VC/PE funding has
B2B Segment
few of the key drivers grown by 2.2X over 2014, seed stage VC
funding has grown by an incredible 6.5X. l Driven by high growth in niche eCommerce and
l Promising start-up verticals for 2015:
hyperlocal eCommerce, start-ups enabling
IoT, Analytics, Health-tech and l Total number of active investors have grown
eCommerce emerge as the top funded category in
Hyperlocal eCommerce by 2.3X from 220 in 2014 to 490 in 2015
the B2B space
l Bangalore, NCR and Mumbai continue l Global investors and corporates are betting
l Analytics across various domains consumers,
to be the top start-up destinations high on India market. Tiger Global, Sequoia
supply chain, recruitment is another growing
with nearly 65% of the total Indian Capital, Softbank, Warburg Princus, and
segment
start-ups. Alibaba are among the top investors,
participating in deals worth more than $500 Emerging Verticals
l Driven by high share of B2C focused
start-ups, NCR witnesses the mn l IoT, Health-tech and Payments are witnessing
maximum amount of funding l Investors have access to more exit positive growth and strong investment
l Hyderabad, Chennai, Pune, Jaipur and opportunities with more than 65 M&A deals Whitespaces
Ahmedabad are the major upcoming in 2015, worth close to $800 Mn l Robotics, 3D printing and Machine learning are few
start-up locations emerging areas, expected to grow in near future
Start-up India
14 Momentous Rise of the Indian Start-up Ecosystem
Executive Summary (2/2)
4 Incubators/ 5 Talent
6
Accelerators Policies
l Number of incubators/ l The start-ups are creating a new world l Prime minister announced integrated
accelerators grew by 40% from of talent platform to promote and boost
~80 in 2014 to ~110 in 2015 l Executives from national and entrepreneurship in the country
l Nearly 50% of the international conglomerates are joining l Government policies and initiatives are
incubators/accelerators are setup top positions at start-up ventures or aimed towards improving the overall
outside NCR, Bangalore and starting their own ventures start-up ecosystem
Mumbai, providing an opportunity l India is the youngest start-up nation in l Industry expects more support and
to entrepreneurs from non-metro the world- 72% of the founders are less focus on improving ease of doing
cities than 35 years old business and facilitating exit
l Colleges and corporates are l ~50% rise in share of female opportunities
increasingly setting up their entrepreneurs in 2015 over 2014,
incubators/accelerators driven by 4.5X growth in funding to
l The industry sees a new trend women driven start-ups
towards vertical focused programs l Start-ups are providing an exhilarating
being setup by few work culture along with attractive
incubators/accelerators monetary benefits to lure new and
retain existing talent
Start-up India
15 Momentous Rise of the Indian Start-up Ecosystem
SECTION 1
Start-up LANDSCAPE
1 6
2 3 4 5
NASSCOM launches
the 10,000 Start-ups 1
Program ~2,100 ~292 Active Angels in 2015
75%
~1,200
70%
~700 ~110 Incubators/ Accelerators
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.
2
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
Start-up India
18 Momentous Rise of the Indian Start-up Ecosystem
With rapid growth in the industry ecosystem across
all dimensions
rd
Total Start-ups to grow
multifold
3 Largest Share of Women Founders1
start-up location globally
~9%
4,200 - 4,400 12,000+ ~91%
Male Female
2015 2020P
80-85K 3-4
More than 65% of
Employed in Start-ups1 the start-ups are located Start-ups are born
in NCR, Mumbai and each day
Bangalore
$2.5-2.7 Mn ~110
Average valuation # of Incubators/
is on rise3 Accelerators
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.
Start-up India
19 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 High Growth of Investor Tech driven large Digital Nation with Entrepreneurial
Role Models Ecosystem Consumer and Mobile-First Consumer Environment
SMB Market Government Policies
Successful start-ups act as
inspiration for aspiring
140 Mn Promoting bank financing
2.3x Smartphone for start-ups through Start-
entrepreneurs 300 Mn
1 Users1 up India, Standup India
Growth in # of investors Internet Users
Unicorns
since 2014 213 Mn
$ 16 Bn Mobile Internet Growing Platform
eCommerce Users1 Large number of events,
2.2x awards, coverage platforms
Industry1
Industry Leaders 41% help in recognition,
Growth in # of start-ups
eCommerce networking
funded since 2014
10 Mn sales through Incubators/ Accelerators
Tech Ready mobile1 Large base of ~110 helps
SMBs1
in mentoring and raising
funds
Start-up India
20 Momentous Rise of the Indian Start-up Ecosystem
...Gained further momentum in 2015 with growing
interest from corporates and other stakeholders
l Increasing number of high net-worth individuals consider start-up as a viable investment option over
Viable Investment other traditional investments such as gold, stock and real estate
1 Support l Number of active angel investors have grown from 115 in 2014 to 292 in 2015
l Successful Indian entrepreneurs giving it back to the eco-system and investing time and
money on young start-ups
Sharing and building
2 upon success l Business tycoons such as Ratan Tata, Azim Premji have already started investing in
Ratan Tata
start-ups. Over 10 investments in Start-ups made by Mr. Tata till date Azim Premji
l Organizations dedicated to start-ups are covering all aspects extensively and are seeing
massive interest from the audience
3 Media Support l Leading dailies are also focusing on start-ups. Excited freelancers building-up
l ET1 has dedicated a full page for covering start-ups Start-ups & Tech. Alone has
published >170 articles in Sep 2015
l Enterprises are realizing the disruptive potential of start-ups and are thus, partnering/ investing
Interest from in them
4 India-based
Conglomerates
l 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
l Global companies and investors such as Alibaba Group, Soft Bank, Sequoia and Foxconn are
starting to invest in the Indian start-up ecosystem
Global Ecosystem
5 Accelerated l Commitments to invest in India in the next few years have been made along with creating India
specific funds
Start-up India
21 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
Start-up India
22 Momentous Rise of the Indian Start-up Ecosystem
66% of start-ups are concentrated in the top 3 cities
of Bangalore, NCR and Mumbai
Hyderabad: 8% 4. Ahmedabad
4
Focus areas of Startups 5. Jaipur
Consumer Payments
Services IoT
Start-up India
23 Momentous Rise of the Indian Start-up Ecosystem
Emerging cities are targeting start-ups by focusing on
initiatives that strengthen their value propositions
CHENNAI PUNE HYDERABAD
Emerging as the SaaS Hub Talent Availability Good Environment Government Support
Has large base of of B2B SaaS product Technical talent due Cost effective real Forming incubation center T-Hub in
companies triggered by the success of to presence of large estate collaboration with ISB, NALSAR and IIIT
ZOHO supported by right set of domain number of technical Good connectivity/ Hyderabad to accommodate 1,500
talent universities infrastructure companies
However, sales/ Pleasant weather Provide technical, legal, IP support
marketing expertise Announced $100 Million venture capital
is still lacking fund
Key Start-ups Key Start-ups Key Start-ups
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
OTHER Ecosystem: Ahmedabad has incubators, mentors and a well-entrenched ecosystem for start-ups.
CITIES AHMEDABAD
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
2 6
1 3 4 5
1X 5% 3X 46
2X 2. 12 2.
2. 458 2.3X 2.2X 156 2.0X
400 4,705
224 25
436 2.0X 75 292
179 2,110 4X 2.5X
194 115
48 196
2014 20152 20144 20152,4 2014 2015E 2014 20152
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
Start-up India
26 Momentous Rise of the Indian Start-up Ecosystem
NCR, Bangalore and Mumbai account for over 93% of the
total investments
1
Total Start-up Investments by Location
Emerging Start-up
Cities
Chennai Pune
2015 Mumbai $ 100-110 Mn $ 80-90 Mn
$ 1.1 Bn (E)
Contributing over $200Mn funding by 2015
95% of the investments towards
B2C start-ups
Bangalore 2015
Ola Cabs - $ 625 Mn, Freecharge - $80 Mn
$ 1.2 Bn (E) Antuit - $56 Mn, Big Basket - $50 Mn,
Homelane - $50 Mn, Little - $50 Mn, Urban
70% of the investments towards Ladder - $50 Mn, Zovi - $50 Mn
Start-ups deals in 2015 with more than $50 million B2C start-ups
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.
Start-up India
27 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
Ecom Express
3 Warburg Pincus
$133 Mn
eCommerce Enablers II
Top Overseas Corporate Investors (20151) High Interest from Foreign Funds
Leading VC/PE firms
COMPANY INVESTMENTS2 KEY VERTICALS
8/10 are foreign-based
Paytm Snapdeal
1 Alibaba
$635 Mn $500 Mn
eCommerce, Payments III
Oyo Rooms Snapdeal Overseas corporates are aggressively looking to
2 Softbank
$25 Mn $500 Mn
eCommerce; Aggregators
invest in Indian start-ups
Foxconn Technology Snapdeal
Plans to invest over $1 Bn in Indian
3 Group eCommerce start-ups over next 2 years
$500 Mn
Plans to invest $100 Million in
Top Indian Last Gen Start-ups (20151) India in next 3 years
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.
Start-up India
28 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 Investment Split by
Investment Growth
Start-ups Customer Segment
(2014-15)
(2015)
1
Share of B2C Focused Investments
B2C Aggregators 8%
Consumer
Services
3%
$4.9 Bn Hyperlocal Hyperlocal
7%
eCommerce eCommerce
Total Investment
Share of B2B Focused Investments
2014 2015
30% 48%
17%
250% eCommerce
Enablers
eCommerce
Enablers
B2B
28% 18%
Enterprise Analytics
Software
Start-up India
29 Momentous Rise of the Indian Start-up Ecosystem
While overall PE/VC funding has grown by 2.2X over 2014,
seed stage VC funding has grown by an incredible 6.5X
$2,110 Mn
$36 Mn $3,756 Mn
$45 Mn $1,707 Mn
$0.5 Mn $0.4 Mn $2.5 Mn $2 Mn
Start-up India
30 Momentous Rise of the Indian Start-up Ecosystem
150+ VC/PEs investing across B2B & B2C Segments; angel
investors are more diverse in their vertical selection
Share of VC/PE Investment Share of B2C Focused VC/PE Investments Share of B2B Focused VC/PE Investments
by Start-up Type (2015) (2015) (2015)
VC/PE
$196 Mn
B2B: 32%
B2C: 68% 11% 8%
Edu-Tech eCommerce
Total Investment
(2015)
Start-up India
31 Momentous Rise of the Indian Start-up Ecosystem
While valuations have consistently been on the rise, many
Indian start-ups have shown growth without external funding
$ 4.2 Mn $ 4.4 Mn
Start-up India
32 Momentous Rise of the Indian Start-up Ecosystem
Indian start-ups on acquisition spree - Over 65 M&As
successfully executed in 2015
M&A
M&A Trends
~90% India
Start-up India
33 Momentous Rise of the Indian Start-up Ecosystem
Start-ups are being acquired for access to new customers,
maintaining leadership, and technical acumen
Indian Corporates acquiring Indian Start-ups Indian Start-ups acquiring other Indian Start-ups
2015
2015
Corporates are acquiring start-ups to maintain their Start-ups are acquiring other start-ups to increase
market leadership their customer base and gain market share
M&A
2015
Croak.it!
Overseas corporates acquiring Indian start-ups in Indian start-ups acquiring overseas start-ups for
order to enhance their technical expertise technology gains to compete with ecosystem
Start-up India
34 Momentous Rise of the Indian Start-up Ecosystem
2014-15 has seen some large exits instilling positivity
and confidence with the investor community
USD 300 Mn
USD 100 Mn
$40 Mn
$5.5 M $10 M $20 Mn
USD 0 Mn
Not Disclosed
Start-up India
35 Momentous Rise of the Indian Start-up Ecosystem
SECTION 3
EVOLVING VERTICALS
2
3 4 5 6
1
VERTICALS
Hyperlocal Consumer
300 eCommerce Services
Analytics
200 Enterprise
Payments
Software
Health -Tech EMERGING
100
IoT
E VERTICALS
No established large player
in the segment
Significant opportunity for
0 disruptions by new entrants
2013
2010 2011 2012
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
Start-up India
38 Momentous Rise of the Indian Start-up Ecosystem
eCommerce: Driving a major share of investment in the
country
M
$ 31 Mn Average Age of Sub-Segment v/s
Others Total Funding of Sub-Segment
$ 47 Mn
Kids Across
eCommerce $ 88 Mn
Home Decor 1,500 Mature Start-ups
$ 211 Mn
Fashion
Fashion
Quick Facts $ 645 Mn
Traditional 300
Home
Decor
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
39 Momentous Rise of the Indian Start-up Ecosystem
Aggregators: Established in transport, travel and
real-estate sub-segments
M
Funding by Sub-Segment (2015) Average Age of Sub-Segment v/s
Total Funding of Sub-Segment
$ 16 Mn
$ 20 Mn Deal Search
Aggregators Fashion 1,000 Transport
$ 32 Mn
Others
$ 207 Mn $ 632 Mn
$ 27 Mn
Quick Facts Real Estate Travel Transport
240 Travel
Real Estate
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
40 Momentous Rise of the Indian Start-up Ecosystem
eCommerce Enablers: Driven by high growth in niche
and hyperlocal segments
G
Funding by Sub-Segment (2015) Average Age of Sub-Segment v/s
Total Funding of Sub-Segment
$ 24 Mn
Hyperlocal
Logistics $ 1 Mn
eCommerce Inventory 300
Logistics
Enablers Management
$ 40 Mn
On- demand
2
Key Investments (2015)
50+ Hyperlocal
Logistics
# of start-ups1 $ 133 Mn
App/Web Inventory
$ 85 Mn 30 Development Management
$ 40 Mn
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
41 Momentous Rise of the Indian Start-up Ecosystem
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
Consumer $ 16 Mn
Customer
Emerging Start-ups
Services $ 59 Mn 80 Mature Start-ups
Support $ 24 Mn
Car Rental Interior Design Interior
Hyperlocal Design
Deals
Quick Facts $ 33 Mn
$ 56 Mn 60
Home Services
2
Key Investments (2015)
100+ 40
# of start-ups1
$ 50 Mn $ 50 Mn Customer
Support
20
$ 11.5 Mn $ 16 Mn
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
42 Momentous Rise of the Indian Start-up Ecosystem
Hyperlocal eCommerce: Diverse demographics and
inadequate infrastructure are catalyzing transformation in
this segment
G
Funding by Sub-Segment (2015) Average Age of Sub-Segment v/s
Total Funding of Sub-Segment
Hyperlocal $ 6 Mn
eCommerce Healthcare
$ 56 Mn 200 Grocery
Food
$ 137 Mn
Quick Facts Grocery
150
2
Key Investments (2015)
50+ 100 Emerging Start-ups
# of start-ups1 Food
$ 50 Mn
$ 35 Mn
50 Healthcare
$ 20 Mn
Notes: 1. Estimated based on a sample of 600 companies formed over 2010-2015 period5; 2. Funding for the year 2014 and 2015
Start-up India
43 Momentous Rise of the Indian Start-up Ecosystem
Analytics: Strong use cases for analytics across different
functions are fueling growth of analytics start-ups
G
Funding by Sub-Segment (2015) Average Age of Sub-Segment v/s
Total Funding of Sub-Segment
$ 17 Mn $ 5 Mn Mature Start-ups
Marketing Analytics Human Capital
Analytics 75 Infrastructure & Supply
Analytics
Chain Analytics
$ 57 Mn
Infrastructure
Quick Facts $ 26 Mn
Enterprise Business
& Supply
Chain
2
Intelligence
Key Investments (2015)
~400 Marketing
Emerging Start-ups
# of start-ups1 Analytics
$ 56 Mn $ 15 Mn
25 Human Capital
$ 8 Mn $ 5 Mn Analytics
$ 1 Mn $ 1 Mn
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
44 Momentous Rise of the Indian Start-up Ecosystem
IoT, Health-tech, and Payments are set to disrupt the
market; Mobility is the key driver for a mobile-first nation
E
IOT
75+ start-ups
MOBILITY
Health-Tech Payments
Start-ups have
focus on mobile
120+ start-ups
35% based delivery
70+ start-ups
model
Notes: 1Estimated based on a sample of 600 companies formed over 2010-2015 period
Start-up India
45 Momentous Rise of the Indian Start-up Ecosystem
Health-Tech: Huge population base and potential
of Indias healthcare industry is driving growth in health-tech
E
Start-up India
46 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* Mobile recharge
1 and bill payments
invested in Start-ups since Jan2015 platform Jaipur
Raised $80 Mn funding 2013
2
*Excludes Paytm , which received in 2015
funding of $635 Mn in 2015
Quick Facts
Quick Facts
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.
Start-up India
48 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
Grey Orange Robotics founded in 2011, Fracktal Works founded in 2013, based InvenZone founded in 2013, based out
based out of Gurgaon (NCR) builds out of Bangalore develops 3D printers of Mumbai provides a niche platform for
robotics systems for warehouse having clientele including L&T, Toshiba researchers using advanced machine
automation and Cisco learning and deep learning algorithms
Raised $30 Mn funding from Tiger Raised $3 Mn seed funding from 1 Neoteric Raised undisclosed
Global and Blume Ventures in 2015 Technology Solutions in 2015 amount of angel funding in 2014
Start-up India
49 Momentous Rise of the Indian Start-up Ecosystem
SECTION 4
INCUBATORS/ ACCELERATORS
2 3
4 5 6
1
Start-up India
53 Momentous Rise of the Indian Start-up Ecosystem
SECTION 5
TALENT
2 3 4
5 6
1
<20 years 20-25 years 26-30 years 31-35 years 36-40 years 41-45 years >45 years
0.3% ~91%
15% 26% 31% 15% 6% 6%
Education
Notes: 1Others include MS, Administration Graduate, Doctorate, Under Graduate, etc.
Start-up India
56 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 Successful Women Entrepreneurs
Shanti Mohan
Women Entrepreneurs in 70%
~9% eCommerce Founder & CEO
Start-up Landscape1
(BE from BIT Sindri)
B2C
Aggregator $650 K of funding
Age Wise Break Up of
Start-up Founders
30% 26-30 years
22%
27%
Suchi Mukherjee
12% Funding received by women Founder & CEO
39% $168 Mn+ start-ups in 2015 (MSc. from London
School of Economics)
$30 M of funding
BE, B. Tech M. Tech, MS, MCA
MBA Others2
Start-up India
57 Momentous Rise of the Indian Start-up Ecosystem
Driven by 4.5X growth in funding to women driven start-ups
$ 168 Mn Sources of Funding to Women driven
Funding to Women Start-ups (2015)
driven Start-ups1 10%
2%
Top Deals (2015)
Angel
Undisclosed
$37.5 Mn
$40 Mn
$ 36 Mn
$
88%
VC/PE
$
2014
2015(till date)
Start-up India
58 Momentous Rise of the Indian Start-up Ecosystem
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 Business Leaders Industry Veterans
joining Start ups joining Start ups starting own ventures
1 High pay-packages
coupled with stock
options
Punit Soni Ananth Narayanan
Chief Product K Radhakrishnan
CEO, Myntra Co Founder,
Officer, Flipkart Worked at
Worked at GrocerMax
McKinsey Worked at Future
Google, Motorola
Group, Reliance
Retail
Abhishek Poddar 2
Anand
Director, Product Higher roles and
Chandrasekaran Ashish Goel
and Business, responsibilities
Chief Product Founder, Urban
Ezetap
Officer, Snapdeal Ladder
Worked at HP
Worked at Yahoo, Worked at
Airtel Mckinsey, Amar
Chitra Katha Media
Sumant
Namita Gupta NaikKhanvte
Chief Product Director, Product
Deepak Garg 3 Better future
Officer, Zomato Founder, Rivigo career growth
Management, Worked at
Worked at Zipdial
Facebook, McKinsey
Worked at Juniper
Microsoft Networks
Start-up India
59 Momentous Rise of the Indian Start-up Ecosystem
Brain drain to brain gain- people settled abroad are returning
to India to start new businesses
Key Drivers
Start-up India
60 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
Competitive Monetary
Flat Hierarchy as Flexible Multitasking
Benefits
compared to Work Timings
Corporates
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61 Momentous Rise of the Indian Start-up Ecosystem
SECTION 6
GOVERNMENT POLICIES
2 3 4 5
6
1
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 Dedicated Start-up Exchange
Business
SEBI has plans to setup an
To create Ebiz portal for
reducing approvals required to alternative trading platform for
start a business internet start-ups with relaxed listing
To complete tax3 registration in requirements
Operations 2 days
1 2 3
Plans Incentives to IoT Start-ups State Government Start-up Technology Business Incubator (TBI)
Easy import facilities & duty Policies Scheme by Department of Science and
benefits State Governments are coming up Technology to facilitate creation of
Minimize excise & central sales with start-up friendly policies and technology led and knowledge driven
tax partnership with NASSCOM for enterprises
NEW Subsidised rates on purchasing start-up warehouse setup in their
Start-upS land respective locations
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65 Momentous Rise of the Indian Start-up Ecosystem
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:
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.
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68 Momentous Rise of the Indian Start-up Ecosystem
10,000 Start-ups Core Components
Start-up India
69 Momentous Rise of the Indian Start-up Ecosystem
NASSCOM 10,000 Start-ups Program
10,000 Start-ups - Initiatives Currently in operation: In the pipeline:
NASSCOM Start-up Incubation Network Start-up Warehouse, Start-up Warehouse, Navi Mumbai & Pune.
( S t a r t - u p Wa r e h o u s e s ) S t a r t - u p Bangalore. Supported by Supported by the Govt. of Maharashtra
Warehouses are designed for start-ups the Govt. of Karnataka Start-up Warehouse, Gurgaon. Supported
ecosystem creation and enhance early stage Start-up Warehouse, by the Govt. of Haryana
support for technology start-ups in various Kolkata. Supported by 80 Start-ups have been incubated across
states of India. An Incubator and co-working the Govt. of West Bengal Start-up Warehouses, with ~10Mn Funding
space for dozens of technology start-ups and Start-up Warehouse, raised. 400 Jobs created by them, 150+
early stage product companies at a highly Kochi. Supported by the events across warehouses that includes
subsidized cost, in the heart of the city. The Govt. of Kerala hosting international delegations, Investor
co-working space allow early-stage meet-ups, Hackathons, Start-up Konnect
technology start-ups to work for 6-12 months sessions.
Start-up India
70 Momentous Rise of the Indian Start-up Ecosystem
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
Start-up India
71 Momentous Rise of the Indian Start-up Ecosystem
NASSCOM 10,000 Start-ups Program
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72 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
Total Start-ups
Canada Netherlands Russia
6,000-6,200 1,225-1,250 1,350-1,375 Total Tech Start-ups
UK
3,000-3,100 7,900-8,000 560-575 630-650
4,500-5,000
Germany
2,500-2,525
France 1,160-1,175
2,200-2,300
China
USA 1,025-1,050
9,500-10,500
83,000-83,500 Israel
4,500-5,000 3,3003,500
47,000-48,000 India
3,900-4,100
9,500-10,500
4,200-4,400 Australia
Brazil
1,600-1,650 2,775-2,800
1,290-1,320
750-775
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74 Momentous Rise of the Indian Start-up Ecosystem
NASSCOM- ZINNOV Start-up City Index
Index Score -Top Cities Major Start-up Focused Index Score Emerging Cities
Indian Cities
1. Bangalore 1. Chennai
2.NCR 2. Pune
3. Mumbai 3. Hyderabad
4. Ahmedabad
Emerging Cities
Other cities such as Chennai,
City Index Score Pune, Hyderabad, Jaipur,
Calculated based on:
Number of start-ups Ahmedabad, Chandigarh etc. are
Number of investor deals taking steps to emerge as key
(c) Amount of funding cities in start-up space
(d) Enabling ecosystem (such as proximity of investors,
incubators, accelerators and coworking spaces)
Top Cities Emerging Cities
Source: Zinnov Analysis, Zinnov Start-up Database
Index Score
(0-5) >4.8 4.5-4.8 4-4.5 0.75-1.5 0.5-0.75 <0. 5
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75 Momentous Rise of the Indian Start-up Ecosystem
Investors look for sound team, idea and business model
before investing in start-ups
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76 Momentous Rise of the Indian Start-up Ecosystem
Start-ups have to go through a step wise process in
order to get multiple rounds of funding
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77 Momentous Rise of the Indian Start-up Ecosystem
Incubators & accelerators provide networking,
mentorship and other facilities by conducting an
extensive 3-6 months program
Mentors/ Guide
l Helps in forming the company vision,
refinement of the product and the
2 Selection Process business strategy
l Mentors includes proven CEOs, investors,
l Start-ups apply for admission in the
industry experts etc.
batches formed by incubator/ accelerator
l Factors taken into consideration while
6 Incubator/Accelerator Benefit
selecting start-ups are product, idea,
market opportunity, team attitude and Facilities l Takes a small share in equity (falling in the
capabilities etc. l Provides funding and additional facilities range of 3%-10%) or fixed fee
such as office space, internet, computers, l To understand the new innovations in the
accountants etc. market
l Corporate MNCs can pitch their
technologies to form a part of start-up
3 Program Details Others products
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78 Momentous Rise of the Indian Start-up Ecosystem
Driven by smartphone adoption, a huge consumer base in
India is coming online
users in India3
41% eCommerce sales through mobile1 $22 Bn Indian eCommerce industry size2
Start-up India
79 Momentous Rise of the Indian Start-up Ecosystem
The number of active investors, both angels and VC/PE,
have grown significantly
YOY Investment Commitment in Start-ups
by VCs/ PEs (in USD millions)
VC/PE 156 Active 2X increase in number of active VC/PE
4,705 (E) VCs/PEs in investors
2015*
Share of eCommerce in
3,326 the overall portfolio has
2,110
declined from 58% in
882 2014 to 29% in 2015
1,379
1,228 Over 458
deals signed Nearly 2.25x increasein total number
2014 2015 2015* of deals in 2015 compared to 2014
eCommerce 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
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80 Momentous Rise of the Indian Start-up Ecosystem
Few major VC/PE funded B2B & B2C start-ups
Key B2C Start-ups Funded in 2015 Key B2B Start-ups Funded in 2015
1 1
Investor VC/PE Investor VC/PE
$ 100 Mn $ 133 Mn
Online Shopping Funding Courier Services
Funding
Portal Company
2 2 Investor
Investor
$ 50 Mn $ 30 Mn
Home Design Funding Robotics Company Funding
Setup Company
3 Investor
3 Investor
$ 100 Mn $ 56 Mn
Hotel Rooms
Funding Business Analytics Funding
Aggregator Solution
4 4 Investor
Investor
$ 20 Mn $ 50 Mn
Funding
Mobile-based Customer Support Funding
News App Software
Start-up India
81 Momentous Rise of the Indian Start-up Ecosystem
Few major angel funded B2B & B2C start-ups
Key B2C Start-ups Funded in 2015 Key B2B Start-ups Funded in 2015
1 1
Lead Investor Angel $ 6 Mn Angel
$ 50 Mn Investor
Funding Investor Funding Undisclosed Investor
Hyperlocal Service Real Estate Portal
2 Investor 2
$ 3.5 Mn ~$ 3 Mn Investor
Undisclosed Shailesh Mehta
eCommerce Website
Funding Online Credit Evaluation Funding
Platform
3 3
~$ 3 Mn Investor ~$2 Mn Investor
Funding Ratan Tata Devesh Sachdev
Online Health Loan Exchange Platform Funding
Search Services
4 4 Investor
Investor
~$ 2.7 Mn ~$ 3-4 Mn Kunal Bhal, Phanindra
Funding Recruitment Analytics Funding Sama, Raju Reddy,
Car Rental Service Rohit Bansal
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82 Momentous Rise of the Indian Start-up Ecosystem
Definitions and Notes
Definitions
Only technology product/ digital start-ups have been Individuals investing in their personal capacity
considered for the report
While considering funding, investments by
Inception Year accelerators and incubators has also been
l Company with inception year of 2010 or later considered as part of angel funding
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
VC/PE
l That has developed and/ or owns the technology
IP (includes IP owned through acquisitions) AND/
OR Includes venture capital firms, private equity
firms, investment banks, companies and
l That provides digital/ technology platform for corporates*
transactions and/or customer engagements
* Companies and corporates have been included
Distribution 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
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83 Momentous Rise of the Indian Start-up Ecosystem
Vertical Definitions (1/2)
Enable payment through Operate in the education Help users with common Operate in the healthcare Involved in development of
software and hardware sector and provide interests interact and sector and provide computer and mobile
solutions technology related services engage technology related services games
Sub-Verticals: Hardware, Hyperlocal Sub-Verticals: Tutoring, Vocational, Sub-Verticals: Dating, Fashion Sub-Verticals: Health Apps, Sub-Verticals: Across, Home Dcor,
Deals, etc. Test Prep, etc Content, Coders, Sharing, etc. Doctor, etc Fashion, Kids, etc.
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84 Momentous Rise of the Indian Start-up Ecosystem
Vertical Definitions (2/2)
Provide various types of software Offer platform to connect employers Operate in the Media sector and Operate in the BFSI sector and
products to customers and candidates provide technology related services provide technology related services
Sub-Verticals: ERM, CRM, Security, etc. Sub-Verticals: Blue Collar, Vertical Sub-Verticals: Mobile, Social Media, TV, Sub-Verticals: Credit Rating, Crowdfunding,
Specific, etc. Email/Messaging, etc. Investment, etc.
Provide hardware in the IoT space Provide analytics related services Operate in the media sector and Present in verticals other than
such as sensors which collect data as the final products/solutions provide technology related services the ones listed
Sub-Verticals: Robotics, Sensors, Sub-Verticals: Marketing Analytics, Sub-Verticals: News, Talent Showcase, etc. Sub-Verticals: Content Creation,
Wearables, etc. Enterprise Business Intelligence, etc. Communication, 3D Printing, etc.
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85 Momentous Rise of the Indian Start-up Ecosystem
Appendix: Zinnov conducted dialogues with ecosystem
stakeholders and supplemented it with information from
secondary sources
PE Angel
Investors Investors
70+ Primary
Interactions
Other Media Articles
Public
Sources VC Websites
Incubators Accelerators Angel Networks Websites
Start-up India
86 Momentous Rise of the Indian Start-up Ecosystem
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