As 2019 is winding up, the Indian startup ecosystem shows a positive surge, especially technology startups. The tech startups are currently helming the ship as they have skyrocketed in terms of raising the capital. According to the research firm, Tracxn, “ The unlisted tech startups in India have raised $11.3 billion in 2019; a considerable surge from $10.5 billion fundraisings of the previous year.”
Following a dark phase in 2016, the Indian tech industry has now recovered from the glooming environment that prevailed during that time.
This year’s fundraise, the largest sum for the local ecosystem in any year, further moves the nation’s burgeoning startup space on a path of steady growth. Since 2016, when tech startups accumulated just $4.3 billion — down from $7.9 billion the year before — the flow of capital has increased significantly in the ecosystem. In 2017, Indian startups raised $10.4 billion, Tracxn informs, reported TechCrunch.
According to the research firm, consumer-focused startups, encompassing financial services have enticed the most venture capital deals nearly $8.2 billion in 2019. Following this, Indian retail startups offering consumer-focused services have collected nearly $2.3 billion whilst retail startups offering on business-focused services raised $1.5 billion.
New Companies and Novel Ideas
Similar to other economies, the Indian ecosystem is inconstant and dynamic. customer trends, economic conditions, and market demands keep shifting in the ecosystem. When e-commerce has become a mainstream business around the globe, then the Indian consumer market has yet to partake the benefits of e-commerce. In 2014, startups like Flipkart emerge who revolutionized the buying process and made consumer-focused offerings.
On similar grounds, the Internet, which was not accessible to every Indian since the high cost involved, has become a mainstream element now for demographic. Thus, millennials to adults to the aged Indian consumers utilize the Internet and stream videos, music and other information. All this happened when Jio, a telecom operator-led by Mukesh Ambani, launched its cheap internet and talk time plans. The services of the Ambani-led company eased the lives of the Indians drastically.
Apart from targeting consumers’ needs, several startups ascertained market needs and at the same time, reached customers also, fulfilling their primary needs. During demonetization, Indian consumers immensely suffered and thus, began looking for other payment options. It is then the digital payment company, Paytm like other online payment firms become renowned and was employed to make digital transactions.
The digital payment application Paytm has raised over $2 million so far and claims to have over 200 million registered users in the country. While Google led-payment application, Google Pay has a customer base of more than 67 million in less than two years.