130 startups may raise $700 million in a year, to create 5K jobs: report
Startup companies in India are expected to raise $700 million and create 5,000 jobs in next 12 months, as per India Startup Outlook Report 2016 by InnoVen Capital. "About 130 companies are expected to raise $700 million in the next 12 months," said the report. InnoVen Capital India has provided over 100 loans to 70 companies across early to mid-growth stage that include Snapdeal, Freecharge, Myntra, Practo, Portea, PepperTap, Byju's, Faasos, Capillary Technologies and Manthan Systems.
As per the report, an industry-wise analysis revealed that irrespective of funding stage, consumer internet and e-commerce are the most popular segments and from a hiring perspective, 97 per cent startups felt they were likely to hire new employees where on an average 28 per cent would be on the technology front. "More than 5000 jobs are expected to be created by about 130 startups in the next 12 months. Interestingly, the startups surveyed displayed significant gender diversity in their workforce," the report said.
As per the study, 41 per cent of the VC-funded startups had women founders or CXO level executives, while this number stood at 31 per cent for boot-strapped ventures and at 29 per cent for ventures with angel funding. At the end of current financial year, more than 50 per cent of bootstrapped startups and 45 per cent angel funded startups expected to turn profitable whereas only 22 per cent venture capitalist funded companies expected to turn profitable, the report said.
It found that 65 per cent of all companies felt current business and political conditions are better than last year and 76 per cent expect next year to be even more favourable for startups. The study also noted that 74 per cent of bootstrapped and angel-funded companies were not aware of Angel Tax as per Section 56 of the Income Tax Act. The report said that more than 70 per cent respondents believed the Indian education system was not preparing future employees with the skills their business needed.
"We are privileged to have a unique ring-side view into the venture ecosystem as it has matured over the years. By distilling that knowledge gained through the years into reports and research studies, InnoVen Capital hopes to share some of those insights with other fellow participants," Innoven Capital Group COO and CEO India Ajay Hattangdi said in a statement.
