Indian tech startup ecosystem adds 1,600 new companies in 2020: Report
According to the report by NASSCOM and Zinnov, the Indian tech startup ecosystem has been witnessing a steady growth of 8-10 percent, despite COVID-19.
Despite the COVID-19 pandemic and the ensuing lockdowns, the tech startup ecosystem continues remains bullish in India with the addition of 1,600 new entities in 2020 and the emergence of 12 unicorns, according to a report.
The National Association of Software and Services Companies (NASSCOM), in partnership with , in a startup report titled, “Indian Tech Start-up Ecosystem – On the March to Trillion Dollar Digital Economy,” highlighted the strides made by Indian tech startups in 2020.
According to the report, the tech startup base in India is witnessing a steady growth at a scale of 8-10 percent year-on-year.
Among the other highlights of 2020 were the record number of unicorn added at 12, and NASSCOM said the potential unicorn pipeline stays strong with 1.5x growth since 2019.
The report said that the investor sentiment is recovering, with the second-half of 2020 seeing a 2x increase in funding over H1 2020.
On the performance of Indian tech startups, NASSCOM President Debjani Ghosh said, “The Indian tech startup ecosystem’s performance in 2020 has demonstrated the resilience and can-do spirit of the Indian entrepreneur. The continued innovation, right decision-making, and strong investor commitment have positioned the Indian startup ecosystem as a key contributor in accelerating India’s digital economic growth.”
According to the report, India is home to 11,000-12,500 tech startups. Around 2,100 of them are leveraging deep-tech, up from over 1,600 in 2019. The heartening aspect of their growth is that 20 percent of them are based outside the established startup hubs.
The report also stated that fintech, healthtech, edtech, agritech, and enterprise-tech sectors witnessed rapid digital adoption. Over 60 corporates invested in startups, with 55 percent of open innovation programmes operated by global MNCs.
The COVID-19 pandemic has accelerated digital adoption in the country. This has created new opportunities for tech startups, which are capitalising on them with rapid digital acceleration and a shift to SaaS-based solutions.
Zinnov CEO Pari Natarajan said, “The resilience and fortitude demonstrated by the Indian startup ecosystem in 2020 was unparalleled and unprecedented. It was about defying the odds with extraordinary innovation and exceptional leadership.”
Although cautiously optimistic, 2021 promises a return to normalcy for the Indian tech startup ecosystem, the report noted.
Though, at the same time, the industry body felt that certain proactive measures were required to sustain the growth momentum, including building the infrastructure, strengthening policies, market access for early-stage startups, and opening the door for more funds to flow into the ecosystem.
“Depending on headwinds, 2021 promises to be a positive year for Indian tech startups – marching steadily towards $1 trillion digital economy goal,” Debjani said.
Edited by Kanishk Singh